The less-than-truckload holding company had $3.7 million in consolidated operating income during first quarter 2015, compared to a $32.4 million loss the previous year.
YRC Worldwide Inc. reported consolidated operating incomes of $3.7 million in the first quarter of 2015, a vast improvement from the $32.4 million loss suffered in the first quarter of 2014. The less-than-truckload holding company had consolidated operating revenues of $1.19 billion for the quarter, a 2.1 percent decrease from the first quarter of 2014.
YRC Freight reported an operating profit of $0.2 million for the quarter, up $32.7 million from an operating loss of $32.5 million in the first quarter last year. YRC Freight’s operating revenues were down 2.5 percent to $737.6 million. Total shipments per day for YRC Freight were down 5.3 percent to 41,660.
“During the first quarter of 2015, YRC Freight’s continued pricing discipline and active freight mix management delivered year-over-year yield improvements of 2.6% including fuel surcharge and 8.2% excluding fuel surcharge,” James Welch, chief executive officer of YRC Worldwide, said in a statement. “This yield performance contributed to a 430 basis point improvement in operating ratio at YRC Freight as compared to the first quarter 2014. Partially offsetting the yield and mix improvements was a decline in volume as YRC Freight prioritized yield and profitability improvements over tonnage growth to ensure that it had the right freight at the right price in the network.”
Operating income in the company’s regional transportation division fell 41.7 percent to $3.3 million in Q1 2015 as operating revenues were down 1.2 percent to $448.8 million. Regional transportation showed a 0.5 percent increase in total shipments per day, however, to 40,580.
“The Regional segment was able to maintain its adjusted EBTIDA levels on a year-over-year basis despite 2.5 fewer workdays in the first quarter 2015 as compared to the first quarter 2014 and despite an additional $7.7 million of expense related to adverse development of prior year liability and workers’ compensation claims,” said Welch. “Much of the first quarter results can be attributed to the emphasis on strategic yield growth throughout the quarter at each of the Regional carriers as they were able to achieve yield growth on a year-over-year basis of 0.8% including fuel surcharge and 5.8% excluding fuel surcharge. As they continue to move throughout 2015, the Regional carriers will continue to focus on yield growth, safety investments and operating efficiencies to enhance operating performance.”
YRC entered into new leases for approximately 225 tractors and 600 trailers with a total capital value of $35.1 million during the first quarter of 2015.
YRC Worldwide back in black
