YRC profits plunge nearly 30% in Q3 2016

Less-than-truckload holding company YRC Worldwide saw net income in third quarter 2016 slide 29.8 percent to $13.9 million, but earnings were still up 19.8 percent through the first nine months of the year compared to the same 2015 period.    YRC Worldwide Inc. saw its profits in the third quarter of 2016 drop 29.8 percent to $13.9 million compared with the previous year, according to the company’s most recent unaudited financial statements.
   The Overland Park, Kan.-based less-than-truckload (LTL) holding company reported diluted earnings per share (EPS) of $0.42 for the quarter compared with $0.61 per share in third quarter 2015. Revenues were relatively stable in Q3 2016, slipping just 1.9 percent year-over-year to $1.22 billion.
   YRC Freight, the carrier’s LTL division, reported an operating income of $20.8 million for the third quarter of 2016, a 24.6 percent increase from third quarter 2015, despite operating revenues falling 1.4 percent to $777.9 million.
   Excluding fuel surcharges, revenues per shipment at YRC freight for the quarter grew 1.3 percent from third quarter 2015, while revenues per hundredweight inched up 0.3 percent.
   YRC’s regional transportation division, on the other hand, saw operating income tumble 34.8 percent percent year-over-year to $31.9 million as revenues slid 2.6 percent to $443.7 million.
   Excluding fuel surcharges, regional transportation revenues per shipment rose 0.3 percent, while revenues per hundredweight increased 1.5 percent compared with the same 2015 period.
   Tonnage per day decreased 1.3 percent at YRC Freight and 1.5 percent at the Regional segment compared to third quarter 2015.
   Through the first nine months of 2016, however, YRC has increased its net income 19.8 percent to $29 million despite revenues falling 3.8 percent to $3.55 billion compared with the same 2015 period.
   James Welch, chief executive officer at YRC Worldwide, said the third quarter results reflected a “soft industrial backdrop” and lower revenues from fuel surcharges compared with the previous year.
   “Year-over-year tonnage per day was down during the quarter although it was the smallest decline at YRC Freight and the Regional segment in several quarters,” he noted. “We continue to believe pricing discipline in the LTL sector remains steady despite the near-term headwinds.
   “We are managing through the current state of the economy by continuing to invest in technology and revenue equipment while focusing on actions that position our company well for the long-term such as customer service and enhancing safety,” said Welch, noting a new terminal that was opened during the quarter in Atlanta.
   “Following the recent installations of the in-cab safety technology, we are seeing a reduction in the type of accidents at YRC Freight, Holland, Reddaway and New Penn that these investments were designed to prevent,” added Welch. “Other significant technology investments that we are making include driver handheld units and Optym load plan and Quintiq route optimization solutions. We plan to continue making disciplined and strategic investments to meet our commitment to be best in class in safety and customer service.”