Earnings Watch: YRC Worldwide Profit Falls, Heartland Profit Slips
Profit for less-than-truckload provider YRC Worldwide Inc. fell nearly 30% in the second quarter from a year earlier, despite increased tonnage per day moved at both its national and regional operations.
Net income totaled $19 million, or 57 cents per share, compared to net income of $27.1 million or 83 cents per share a year earlier. Revenue rose to $1.26 billion from $1.21 billion but operating income slid to $50 million from $57.2 million.
In the first six months of the year, the Kansas-based company posted a net loss of $6.3 million compared to net income of $15.1 million in the first half of 2016.
“Following a couple of challenging quarters, the second quarter 2017 results include our efforts to return YRC Freight’s year-over-year revenue per hundredweight, excluding fuel surcharge, to positive territory,” said CEO James Welch. “The consolidated quarterly results were also favorably impacted by our plan to streamline overhead costs, an increase in volume driven by an improving industrial economy and a decrease in liability claims expense.”
The consolidated operating ratio for second quarter 2017 was 96 compared to 95.3 for the same period in 2016.
The operating ratio at YRC Freight was 96.5 compared to 96.2 in the second quarter 2016 (which included an $11.2 million gain on property disposals). The regional segment’s second quarter 2017 operating ratio was 94.6 compared to 93.2 in the prior year.
Compared to a year earlier, second quarter 2017 tonnage per day increased 2.7% at YRC Freight and 3.6% at the regional segment.
At YRC Freight, excluding fuel surcharge, second quarter 2017 revenue per hundredweight increased 1.1%. Revenue per shipment was essentially flat, down 0.1% compared to the same period in 2016. Including fuel surcharge, revenue per hundredweight increased 2.2% and revenue per shipment increased 1%.
At the regional segment, excluding fuel surcharge, second quarter 2017 revenue per …Read the rest of this story
