Trucking operation YRC Worldwide turned its business around in the third quarter of the year, going from a $44.1 million net loss a year ago to a net profit of $1.2 million.
This still translates into a net loss per share of 3 cents for the most recent quarter, but compares to a bigger one of $4.45 per share in the third quarter of 2013 for the Kansas-based company.
Consolidated operating revenue for the third quarter of 2014 were $1.323 billion, 5.6% higher than the $1.253 billion reported in the third quarter of 2013. At the same time, consolidated operating income increased from $5.8 million to $26.7 million, a $20.9 million increase from a year earlier.
"During the third quarter of 2014, we experienced solid yield increases while maintaining tonnage levels at YRC Freight," said James Welch, CEO of YRC Worldwide. "YRC Freight achieved total revenue per hundredweight increases of 2.8% in July, 3.3% in August and an additional 3.9% increase in September on a year-over-year basis. They also reported tonnage per day increases of 2.4% in July, 0.8% in August and 0.2% in September on a year-over-year basis.”
YRC Freight is the company’s nationwide less-than-truckload business.
Welch said as YRC Freight moves forward it will focus on technology investments that it believes will optimize its network freight flow and provide favorable yield improvement opportunities. “Executing on our strategy of improving price and managing our freight mix to ensure that we have the right freight at the right price will continue to be a priority," he said.
According to the company, momentum continued for its regional carriers during the third quarter of 2014 as they reported total revenue per hundredweight increases of 1.5% in July, 0.6% in August and 3.8% in September. Also tonnage per day increased 4.2% in July, 3.7% in August and 2.5% in September, all on a year-over-year basis.
YRC Worldwide regional carriers include: YRC Reimer, Holland, Reddaway, and New Penn.
"During the quarter, the regional operating companies focused on pricing improvements to manage capacity and reduce short-term revenue equipment rentals,” said Welch. “This strategy decelerated tonnage growth throughout the third quarter, but increased profitability. Improving pricing while balancing capacity will continue to be the focus for the regional segment moving forward."
Further details are on the YRC Worldwide website.