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

Getting Out the Vote for O'Brien-Zuckerman Teamsters United

The ballots are out and we’re on the verge of making history. As of Friday, 51,300 ballots are in. That means the vast majority of members who will vote in the election have not voted yet. Here are five things you can do right now to get out the vote.

Teamster Insurgents Could Win Their Union Election

One of the most common sentiments repeated by workshop leaders at the TDU convention was, ​The real fight is about to begin after we win.” — By Ryan Haney (reprinted from In These Times & Labor Notes)

View More News Posts