The LTL and regional carrier has fended off bankruptcy concerns for years, but saw a huge swing toward profitability for its freight division in the fourth quarter.
The trucking company YRC Worldwide had operating profits of $31.2 million in the fourth quarter of 2014, a huge swing from the $1.6 million operating loss it sustained in the same period in 2013, according to the company’s latest financial statement.
YRC’s revenue for the quarter rose less than 1 percent year-over-year, to $1.2 billion.
YRC Freight, the carrier’s less-than-truckload division, had fourth quarter operating profits of $24.5 million, a $39.9 million increase over the same period in 2013. LTL revenue rose 2.4 percent year-over-year, to $795.5 million.
“YRC Freight continues to improve profitability by executing on its operational initiatives and significantly increasing technology investments,” said YRC Chief Executive Officer James Welch. “In 2015, the lower price of diesel and the resulting lower fuel surcharge revenue will be a headwind for the entire LTL industry.
“Going forward, we will continue growing base rates and getting paid for the service we provide while continuing to realize the benefits of investments already made in technology, safety, driver recruitment and employee engagement,” said Welch.
Operating profit from the company’s regional transportation division, however, declined 53.3 percent in the fourth quarter to $10.6 million on revenue that fell 2 percent to $422.2 million.
For the year, YRC Freight saw revenue increase 3.2 percent to $3.2 billion with a $500,000 operating profit, compared to a $31.2 million loss in 2013.
Overland Park, Kansas-based YRC has been staving off bankruptcy for several years, and undertook an overhaul of its freight division in 2013, with a focus on yield management over volume.
YRC Worldwide finds Q4 profitable
