Profit for less-than-truckload provider YRC Worldwide Inc. fell nearly 30% in the second quarter from a year earlier, despite increased tonnage per day moved at both its national and regional operations.
Net income totaled $19 million, or 57 cents per share, compared to net income of $27.1 million or 83 cents per share a year earlier. Revenue rose to $1.26 billion from $1.21 billion but operating income slid to $50 million from $57.2 million.
In the first six months of the year, the Kansas-based company posted a net loss of $6.3 million compared to net income of $15.1 million in the first half of 2016.
“Following a couple of challenging quarters, the second quarter 2017 results include our efforts to return YRC Freight’s year-over-year revenue per hundredweight, excluding fuel surcharge, to positive territory,” said CEO James Welch. “The consolidated quarterly results were also favorably impacted by our plan to streamline overhead costs, an increase in volume driven by an improving industrial economy and a decrease in liability claims expense.”
The consolidated operating ratio for second quarter 2017 was 96 compared to 95.3 for the same period in 2016.
The operating ratio at YRC Freight was 96.5 compared to 96.2 in the second quarter 2016 (which included an $11.2 million gain on property disposals). The regional segment’s second quarter 2017 operating ratio was 94.6 compared to 93.2 in the prior year.
Compared to a year earlier, second quarter 2017 tonnage per day increased 2.7% at YRC Freight and 3.6% at the regional segment.
At YRC Freight, excluding fuel surcharge, second quarter 2017 revenue per hundredweight increased 1.1%. Revenue per shipment was essentially flat, down 0.1% compared to the same period in 2016. Including fuel surcharge, revenue per hundredweight increased 2.2% and revenue per shipment increased 1%.
At the regional segment, excluding fuel surcharge, second quarter 2017 revenue per hundredweight increased 0.2% and revenue per shipment increased 1.9% when compared to the same period in 2016. Including fuel surcharge, revenue per hundredweight increased 1.3% and revenue per shipment increased by 3%.
“As we look to the second half of 2017, we expect that meeting our customers’ needs, pricing for profitability, and diligently managing costs should contribute to improved year-over-year financial performance,” Welch said. “The industrial economy appears to be moving forward at a moderate pace and we continue to see signs of a stable pricing environment in the less-than-truckload sector.”
Heartland Express Net Income Falls 11%
Truckload service provider Heartland Express Inc. reported its second quarter profit fell 11% from a year earlier while revenue declined 18.8%, though its operating ratio was the best in two years.
Net income totaled $14.6 million, compared to $16.4 million, as earnings per share fell to 18 cents from 20 cents. Revenue fell to $130 million from $160.8 million.
Operating income fell to $21.3 million from $24.5 million due to fewer miles driven, while the operating ratio improved to 83.6%.
“This quarter, we achieved our best operating ratio posted over the past two years and achieved our goal of operating in the low 80's without gains during the last month of the quarter,” said Heartland Express CEO Michael Gerdin. “We expect to continue to own and operate a fleet of revenue-producing equipment that is relatively young in average age and updated with the latest technology, which we believe leads to lower operating costs."