YRC Worldwide improves profitability despite revenue dip

Suzanna Stagemeyer
Kansas City Business Journal
November 02, 2012

YRC Worldwide Inc. reported third-quarter profitability gains, despite revenue rolling downhill slightly.

The Overland Park-based trucking company (Nasdaq: YRCW) reported $1.24 billion in revenue for the three months that ended Sept. 30. That’s down 3.1 percent from the same quarter last year.

But comprehensive net income attributable to YRC Worldwide was $6.7 million, compared with a loss of $186.8 million a year prior. Still, the company reported a diluted loss per share of $4.30, though that was a marked improvement from the $153.74-a-share loss of a year prior.

The company pointed to its $27.3 million in operating income as a key sign of improvement — this is the second straight quarter in which YRC has recorded income from operations. A year prior, it had a third-quarter operating loss of $26.1 million.

The latest quarter included a $2.3 million gain from selling assets, but the prior-year quarter had gained $10.8 million from asset disposals.

YRC shares jumped in early Friday trading, around 9 a.m. trading up 3 percent at $7.80 a share. (See a current share price from Yahoo Finance.)

“Despite the current economic headwinds, we were able to increase profitability through a combination of pricing discipline, customer mix management and an unrelenting focus in the areas of safety, costs and operational fundamentals,” YRC CEO James Welch said in a release. “For the first time in four years, excluding second quarter of 2010, which included an $83 million non-cash reduction in equity-based compensation expense, we are reporting positive operating income in each of our subsidiaries. I am encouraged with the steady progress we’ve made throughout the year and remain committed to the execution of our strategy.”

Results continue to come out slightly ahead of expectations, he said.

The trucking giant has been orchestrating a turnaround after nearly having to file bankruptcy during the recession. Welch has been in the YRC driver’s seat since mid-2011.

See YRC’s full third-quarter financial report.

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