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YRC posts Q2 profit gain despite sliding revenues

Less-than-truckload holding company YRC Worldwide increased net income in second quarter 2016 4.2 percent to $27.1 million despite revenues falling 4 percent to $1.21 billion compared to the same 2015 period.

   YRC Worldwide Inc. increased profits in the second quarter of 2016 despite revenues slipping compared with the same 2015 period, according to the company’s most recent unaudited financial statements.
   The Overland Park, Kan.-based less-than-truckload holding company posted a 4.2 percent gain in net income to $27.1 million for the quarter on revenues that fell 4 percent to $1.21 billion from second quarter 2015.
   Second quarter diluted earnings per share (EPS) stood at $0.83 per share compared with $0.80 per share the previous year.
   YRC Freight, the carrier’s less-than-truckload division, reported an operating income of $28.4 million for the second quarter of 2016, a 26.2 percent increase from second quarter 2015. The division’s Q2 operating revenues, however, fell 5.1 percent year-over-year to $755 million.
   Excluding fuel surcharges, revenues per shipment at YRC freight for the quarter inched up 1.4 percent from second quarter 2015, while revenues per hundredweight grew 2.9 percent.
   YRC Freight during the second quarter launched its new “Accelerated” service, which leverages the division’s existing dual speed network and has been well received by customers thanks to demand for a faster, cost-competitive and reliable service, according to YRC Worldwide CEO James Welch.
   YRC’s regional transportation division, on the other hand, saw operating income drop 18.8 percent year-over-year to $30.6 million as revenues slid 2.2 percent to $452.8 million.
   Excluding fuel surcharges, regional transportation revenues per shipment rose 0.5 percent compared with the same 2015 period, while revenues per hundredweight increased 1.3 percent.
   “While the uncertain industrial economy continues to impact the trucking industry, we remain focused on actions within our control,” Welch said of the results. “The second quarter 2016 financial results did not meet our expectation but operationally we continue to strengthen the Company for the long-term.”
   Welch noted the company has increased revenues per hundredweight, excluding fuel surcharge, for nine straight quarters on a year-over-year basis at YRC Freight and 21 consecutive quarters in its regional segment.
   “Year-over-year tonnage per day was down during the quarter, but in June the decline was much smaller than April and May,” he added. “Pricing discipline in the LTL sector remains steady despite the ongoing challenges from the industrial economy and lower fuel surcharge revenue. We do not intend to change our long-term strategy in reaction to near-term headwinds. We will continue managing our business by focusing on delivering award-winning customer service, enhancing the safety of our employees and improving productivity by reinvesting in the company.”