The industrial slowdown has hit less-than-truckload giant YRC Worldwide, which reported tonnage is down significantly compared to a year ago.
At YRC Freight, October less-than-truckload tonnage per day dropped by 4.5% compared to October 2018, and November LTL tonnage per day fell by 10.2% compared to a year earlier. Quarter-to-date through November, LTL revenue per hundredweight fell approximately 0.9%, but LTL revenue per shipment was up about 1.8% compared to a year ago.
In YRC’s Regional segment (Holland, Reddaway, and New Penn), October LTL tonnage per day dropped by 5.7% compared to October 2018, and November 2019 LTL tonnage per day plunged 11.2% compared to a year earlier. Quarter-to-date through November, LTL revenue per hundredweight decreased approximately 0.8% compared to a year ago. LTL revenue per shipment was flat compared to last year.
“The industrial freight slowdown, which started its decline more than 14 months ago, has created a freight volume headwind,” said Darren Hawkins, CEO at YRC Worldwide. “The year-over-year comparisons for November were impacted due to operating conditions at a primary competitor in November of last year and a later Thanksgiving impacting retail. The December tonnage per day levels are trending more in line with October results from a year-over-year comparison.”
This follows disappointing third-quarter financial results. YRC Worldwide's net loss for third quarter 2019 was $16 million, or $0.48 per share, compared to net income of $2.9 million, or $0.09 per share, in third quarter 2018.
YRC Leadership Changes
YRC Worldwide also announced changes to its leadership team and board of directors as it “moves forward with its multi- year strategic initiatives designed to achieve sustained profitability.”
YRC and Chief Financial Officer Stephanie Fisher “mutually agreed to a separation agreement” on Dec. 10, with Hawkins thanking her in a press release for 15 years of service. The company noted that this departure does not reflect any disagreements about the company’s past financial reports or disclosures.
Effective immediately, Jamie Pierson is returning to the company as the CFO and a member of the board of directors. YRC notes that during his tenure at the company as CFO between 2011 and 2016, “Pierson was responsible for helping execute a multi-faceted operational turnaround and refinancing.”
The company named Matt Doheny as the new chairman of the board. Doheny, who joined the Board of Directors in 2011, has an extensive background in corporate finance and turnaround, including having served as a Managing Director of Deutsche Bank Securities, Inc. and Portfolio Manager at Fintech Advisory of New York, New York.
In addition, “in an effort to help right-size the board,” three directors volunteered to resign from the board.