YRC posts brightening revenue, tonnage picture in Q4 of 2011, but operating losses persist
YRC Worldwide Inc. on Feb. 28 reported fourth-quarter results that showed an improving revenue and tonnage picture but a continued, through narrower, operating loss compared to the same period in 2010.
The Overland Park, Kan.-based less-than-truckload (LTL) carrier reported a consolidated operating loss of $38 million on consolidated operating revenue of $1.21 billion. The revenue figure was 11.1 percent higher than in the same period in 2010, the company said. The operating loss included a $13 million loss on asset disposals and an additional $13 million charge for two separate professional fees.
In December, YRC announced that it had sold its money-losing Glen Moore truckload subsidiary to a unit of truckload carrier Celadon Group Inc. for an undisclosed sum. The disposal of Glen Moore left YRC able to focus exclusively on its LTL business. The company has also announced plans to exit the short-haul delivery market and focus on moving freight on hauls of 500 to 3,500 miles. However, the move must be approved by the Teamsters union, and a scheduled March 1 meeting between the union and the company to discuss the matter and its impact on labor has been scrapped.
YRC Freight, YRC's renamed long-haul unit, reported an 11 percent increase in year-over-year operating revenues to $805 million, although its operating ratio of 101.5 indicates that it spent more money than it generated in revenue. Daily tonnage rose 6.7 percent, daily shipments increased by 6 percent, revenue per hundredweight rose 4.8 percent, and revenue per shipment increased 5.5 percent.
YRC's three regional carriers—Holland, Reddaway, and New Penn—reported a 12.6 percent combined gain in operating revenues, to $382 million, on a 4.7 percent gain in daily tonnage and a 2.5 percent increase in daily shipments. Revenue per hundredweight rose 5.7 percent while revenue per shipment increased 7.9 percent.
The regional unit reported an operating ratio of 97.7. For the year, its ratio stood at 97.3 percent, its second consecutive year of profitability coming out of the 2008-09 recession.
