The less-than-truckload holding company increased operating income nearly 79 percent year-over-year in the third quarter of 2015, thanks in part to a 7 percent bump in revenues per shipment at YRC Freight.
YRC Worldwide Inc. increased consolidated operating income 78.7 percent to $47.7 million in the third quarter of 2015 compared to the $26.7 million reported in the second quarter of 2014, according to the company’s most recent unaudited financial statements.
The Overland Park, Kan.-based less-than-truckload holding company attributed the jump in earnings primarily to the success in raising rates and putting a premium on profits rather than volumes, which resulted in higher revenues per shipment.
YRC reported consolidated operating revenues of $1.25 billion for the third quarter, down 5.3 percent from $1.32 billion the previous year.
Operating income at YRC Freight, the carrier’s less-than-truckload division, jumped 89.8 percent to 16.7 million compared to the third quarter of 2014. The division reported operating revenues of $789.2 million, down 6.4 percent from $843 million last year. Excluding fuel surcharges, revenues per shipment grew 7 percent at YRC Freight and revenues per hundredweight increased 5.8 percent compared to the same period the previous year.
YRC’s regional transportation division reported third quarter operating income of $33.6 million, a year-over-year increase of 37.7 percent, on operating revenues of $455.7 million, down 5 percent from the same period a year ago. Revenues per shipment and revenues per hundredweight in the regional division were up 5 percent and 4.1 percent, respectively, for the quarter, excluding fuel surcharges.
“During the third quarter of this year, we continued to stay committed to our strategy of placing pricing improvements and profitability ahead of tonnage growth,” YRC Worldwide CEO James Welch said of the results. “We stayed focused, we stayed disciplined, we invested in our people and we invested in the business. As a result, operating, financial and safety performance improved. We are pleased to see the positive results of successfully implementing our strategy and staying the course, and we plan to continue focusing on operational improvements while reinvesting back into our people, equipment and technology.”
YRC Q3 earnings grow despite slight drop in revenues
