YRC’s Q3 profits crash

Less-than-truckload (LTL) holding company YRC Worldwide Inc.’s net income tumbled 78 percent from the third quarter of 2016, although the company did manage to boost revenues and lower its outstanding debt.

   YRC Worldwide Inc.’s net income tumbled during the third quarter of 2017 to $3 million, down 78 percent from $13.9 million a year prior, as the company faced headwinds from Hurricanes Harvey and Irma during the quarter, according to the firm’s most recent financial statements.
   Based out of Overland Park, Kan., YRC Worldwide is a holding company for a portfolio of less-than-truckload companies, including YRC Freight, YRC Reimer, Holland, Reddaway and New Penn.
   Despite the plunge in net income during the quarter, YRC Worldwide’s consolidated operating revenues ticked up 2.4 percent year-over-year to $1.25 billion, with revenues growth in both YRC Freight and the company’s regional segment.
   At YRC Freight, tonnage per day rose 0.7 percent from the third quarter of 2016, while revenue per hundredweight rose 3.4 percent, and revenue per shipment rose 3.8 percent.
   Meanwhile, YRC Worldwide’s regional segment saw tonnage per day rise 4 percent from last year’s third quarter, while revenue per hundredweight inched up 1.3 percent and revenue per shipment increased 4.1 percent.
   As of Sept. 30, YRC Worldwide’s outstanding debt totaled $962.4 million, down from $1.06 billion for the third quarter of 2016.
   “This month, YRC Freight is implementing a significant change of operations that includes transitioning eight terminals to regional distribution centers, which is expected to help strengthen customer service and reliability while adding capacity and reducing cost within its network,” YRC Worldwide CEO James Welch said.
   Looking ahead, Welch said, “We believe YRC Freight, Reddaway, Holland and New Penn will be positioned for tighter capacity due to the recovery and restoration efforts from the hurricanes and the ELD mandate.”