YRC boss blames “weak domestic shipping market” for profit slump
Overland Park, Kan.-based YRC Worldwide Inc.’s second quarter net income dropped 40 percent to $55.4 million, compared to $92.3 million in the same period last year.Operating income in the quarter decreased 37 percent to $108.4 million, down from $172.3 million in the prior-year quarter. YRC’s quarterly revenue declined 3 percent to $2.48 billion, compared to $2.56 billion a year ago.
“Our results continue to be impacted by a weak domestic shipping market resulting in a difficult operating environment,” said Bill Zollars, YRC’s chairman, president and chief executive officer. “National transportation results compare favorably to overall industry performance even as we continue to face an economic headwind.”
After six months, YRC’s net income was $56.6 million, a 58 percent drop from $134.4 million in the first half of 2006. Operating income slumped 50.5 percent to $128.8 million while revenue slipped 2.5 percent to $4.81 billion.
The company’s list of brands include Yellow Transportation, Roadway, Reimer Express, Meridian IQ, New Penn, USF Holland, USF Reddaway and USF Glen Moore.
