YRC Worldwide Inc.
reported a net loss of $86 million for the fourth quarter of 2011. This compares to net income of $15 million for the fourth quarter of 2010, which included an $87 million income tax benefit primarily due to a favorable IRS settlement.
Fourth quarter 2011 operating revenue was $1.21 billion, up 11.1% from 2010, and consolidated operating loss was $38 million, which included a $13 million loss on asset disposals, $4 million of restructuring professional fees and $9 million of letter of credit fees. Excluding these items, on a non-GAAP basis 2011 fourth quarter operating loss would have been $12 million.
Segment information is as follows:
* YRC Freight
(formerly YRC National Transportation): operating revenues up 11% to $805 million, adjusted operating ratio of 101.5, tons per day up 6.7%, shipments per day up 6.0%, revenue per hundredweight up 4.8% and revenue per shipment up 5.5%.
* Regional Transportation
: operating revenues up 12.6% to $382 million, adjusted operating ratio of 97.7, tons per day up 4.7%, shipments per day up 2.5%, revenue per hundredweight up 5.7% and revenue per shipment up 7.9%.
On Dec. 15, the company sold a significant portion of the assets of its Glen Moore truckload operating subsidiary and redeployed the remaining revenue equipment units to YRC Freight and the Regional operating companies. The company also hired Chicago-based NRC Realty & Capital Advisors LLC to coordinate the auction of 62 surplus properties resulting from network integration activities.
"I am pleased with the renewed focus on customer service, but obviously not satisfied with our consolidated operating results," says James Welch, chief executive officer of YRC Worldwide. "However, I am encouraged that our performance trends over the fourth quarter are consistent with or exceeding the consolidated operating plan created by our now autonomous operating companies."