Earnings Watch: YRC Worldwide 1st Quarter Loss Doubles
Financial losses for YRC Worldwide Inc., parent to both national and regional less-than-truckload carriers, more than doubled in the first quarter of the year despite a small upturn in revenue.

Financial losses for YRC Worldwide Inc., parent to both national and regional less-than-truckload carriers, more than doubled in the first quarter of the year despite a small upturn in revenue.
YRC reported a net loss of $25.3 million in the most recent quarter, or 78 cents per share, worse than analysts expectations. This compares to a net loss a year ago of $12 million, or 37 cents per share. Revenue in the most recent quarter was $1.17 billion versus $1.12 billion a year earlier.
According to CEO James Welch, while the company’s regional carriers’ performance was in line with results from a year ago, including an increase in tonnage per day, its national LTL fleet ran into problems.
“YRC Freight’s results in the first quarter were unfavorably impacted by a year-over-year decrease in revenue per hundredweight, excluding fuel surcharge, that more than offset increases in tonnage per day and weight per shipment,” he said. “We expect the improvement in year-over-year tonnage per day to help us execute our strategy of pricing for profitability and moving shipments through YRC Freight, Holland, Reddaway and New Penn’s networks that have favorable freight characteristics.”
Despite the challenges, Welch said YRC believes the pricing environment remains stable in the less-than-truckload sector and the company’s goal for 2017 is to beat its 2016 EBITDA (earnings before interest, taxes, depreciation and amortization) numbers.
To help meet this goal, YRC implemented a plan during the first quarter of 2017 to eliminate approximately $25 million of costs over the next year. The savings include downsizing the management and other non-union workforce by approximately 180 positions.
“Headcount reduction is the most significant source of savings while other changes included increasing collaboration across our companies and reducing the utilization of external professional services,” said Welch.
During the first quarter, YRC Freight recording an operating loss of $10.5 million compared to an operating profit of $4.1 million a year ago, despite a 4.8% increase in revenue totaling $728.9 million.
Its regional operations reported operating income of $12.2 million, down 2.4% from the first quarter of 2016 as revenue increased 4% to $441.8 million.
First quarter 2017 tonnage per day increased 3.4% at YRC Freight and 2.1% at the regional segment compared to first quarter 2016.
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