YRC’s 1st quarter profits slump 16%
Overland Park, Kan.-based YRC Worldwide Inc.’s first quarter net income dropped 16 percent to $42.1 million, compared to $49.9 million in the first quarter 2005 when it was known as YellowRoadway.
Operating income was down 2 percent to $87.8 million from $90 million in the same quarter last year. Revenue surged 41 percent to $2.37 billion from $1.67 billion, thanks to last May’s acquisitions of the USF companies, USF Holland, USF Reddaway, USF Bestway and USF Glen Moore.
The USF companies and New Penn Motor Express are part of YRC Regional Transportation. YRC Worldwide’s other subsidiaries include Yellow Transportation, Roadway, and Meridian IQ.
“Despite good revenue growth in all areas of our company, the quarter did not come in where we had planned. Given the first quarter, we have taken aggressive steps to improve our financial performance going forward,” said Bill Zollars, YRC’s chairman, president and chief executive officer. “The economy still looks healthy, our brands remain strong and our synergy programs are on track.”
YRC’s 1st quarter profits slump 16%
