YRC Worldwide Earns Operating Profit

William B. Cassidy, Senior Editor
The Journal of Commerce
03, 2012

Trucking giant YRC Worldwide reported an operating profit of $15.5 million in the second quarter while cutting its net loss 47 percent to $22.6 million.

The $15.5 million gain is the $4.9 billion less-than-truckload operator’s first operating profit attributable to freight operations since the third quarter of 2008.

“We are producing results slightly ahead of our forecast, despite the recently softening economy,” James Welch, YRC Worldwide CEO, said in a statement Friday.

“Our focused approach to pricing discipline, customer mix management and cost initiatives has driven year-over-year improvement in our business,” he said.

YRC’s regional carrier group, which includes Holland, New Penn Motor Express and Reddaway, increased its operating profit by 55.7 percent to $22.9 million.

The regional carrier group increased revenue 7 percent year-over-year to $429.8 million as tonnage rose 4.4 percent and shipments, 2.5 percent.

“Holland, New Penn and Reddaway are increasing market share and leveraging their operational improvements to enhance profitability,” Welch said.

At long-haul LTL carrier YRC Freight, tonnage and shipments dropped 3.3 percent and 2.1 percent from a year ago. The carrier had a $5.1 million operating loss.

YRC Freight completed a network reorganization in the second quarter designed to speed freight to receivers with less handling and reduce transit times.

YRC Worldwide ended the quarter with $248.7 million in liquidity, the company’s best second-quarter liquidity level since 2008, CFO Jamie Pierson said.

The holding company reduced its “cash burn” from operating activities by $44.7 million year-over-year, despite higher interest and pension expenses, he said.

Get Advice Join TDU Donate

Recent News

During the Crisis of the Century, Hoffa Sides with Management

Since the beginning of the COVID-19 pandemic, Teamsters across the country have been thrust into an unexpected crisis of unforeseeable proportions. At UPS, no sooner did many of us find out that we were a part of the “essential workforce” than we were fighting on the shop floor to protect ourselves from the virus.  

All YRCW Teamsters in TeamCare Get Coverage Extended

A May 9 Memo from the IBT Freight Division reports that arrangements have been made so that both active YRCW employees and employees laid off after March 1 will have the full 8 weeks of “Layoff Coverage" going forward from May 10 to continue health care coverage, if they are in TeamCare (Central States H&W). This includes both employees who have been actively working and those who may have already used up some of the “layoff coverage.”...
View More News Posts