YRC Worldwide Posts Smaller Second Quarter Loss
July 31, 2014
Photo: Evan Lockridge
YRC Worldwide Inc. cut it second quarter net loss to $4.9 million, or 16 cents per share, from $15.1 million, or $1.72 per share, from the same time a year ago.
During the time revenue increased 6% to $1.32 billion from $1.24 billion.
"During the second quarter of 2014, YRC Freight experienced a 5.6% increase in operating revenue [$842.1 million], despite a half workday less as compared to the second quarter of 2013," said YRC Worldwide CEO James Welch. "The additional revenue is due to increased volumes as well as a slight gain in revenue per hundredweight.
He said the growth in shipments and tonnage per day for the national less-than-truckload carrier is a result of the overall economic improvement and renewed shipper confidence due to the successful completion of the company refinancing and modified labor agreement in February 2014.
"In order to improve network performance during the quarter, we opened three terminals, increased the use of purchased transportation and increased the utilization of part-time dock employees," said Darren Hawkins, YRC Freight president. "Overall, the freight environment in which we are currently operating bodes well for YRC Freight. From a macro perspective, we are experiencing a robust pricing environment, and at YRC Freight specifically we are being disciplined in obtaining pricing increases on lower margin accounts."
Even with 1.5 fewer workdays, YRCW said operating revenue for the regional businesses grew by 6.9% to $475.5 million, during the second quarter of 2014 compared to the same period in 2013. It credited the increase to the growth in the overall economy and continued tightness of capacity in certain regions of the country.
"I am satisfied with the execution of our regional carriers as they continue to demonstrate strength in the marketplace by growing revenue and increasing yield and volume," said Welch.
YRC Worldwide, headquartered in Kansas, is the holding company for trucking companies YRC Freight, YRC Reimer, Holland, Reddaway, and New Penn.
More information on YRC Worldwide financial performance can be found on the company website.