YRC Worldwide saw a $4.6 million rise in before-tax earnings during the second quarter when compared to the same period in 2012, but the company’s freight division still experienced difficulties in the quarter.
Operating revenue dropped 0.7 percent, year over year, in the second quarter to $1.24 billion, with operating income falling $1.2 million over the same time period.
“As we move through 2013, we continue to make steady progress on our long-term objective of regaining a leadership position in the LTL (less-than-truckload) industry. In the second quarter, we paved the way for future success by making investments in newly leased tractors and trailers, completing the rollout of mobile handheld productivity devices for our city drivers, and completing the second largest network optimization in YRC Freight history,” James Welch, YRC Worldwide’s chief executive officer, said in a statement. “While the regionals continue to excel in their markets, YRC Freight faced some headwinds during the implementation of the network optimization plan.”
The company recorded a $6.3 million hit due to this network optimization plan, but expects this expenditure to eventually bring $25 million to $30 million in savings.
At YRC Freight, operating revenue dropped 2.9 percent, year over year, to $797.6 million, and the division turned in an $8.5 million operating loss. Daily tonnage fell 3.6 percent, and total shipments per day were off 4.7 percent, but both revenue per hundredweight and revenue per shipment increased at 1.5 percent and 0.1 percent, respectively.
In the Regional Transportation division, operating revenue and income increased 3.5 percent and 10 percent, respectively, when compared to the same period in 2012. Daily tonnage and total shipments were also up, rising 1.2 percent and 2.7 percent, respectively.
“Our regional carriers continue to perform at market levels,” Welch said. “With each passing quarter, they continue to execute on their long-term strategies by growing top-line revenue, providing industry-leading customer service, increasing their operational efficiencies, and increasing profitability and operating income as a result.” – Jon Ross
2Q earnings inch up at YRC
