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ABF | YRC Regional more than triples the profit of ABF

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nothumbleenough

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I was shocked to see that YRC regional earned 23 million off their operational earnings. ABF only earned 7.7 million off of its operational earnings. The revenues between the two companies are about the same, 429 milllion and 445 million respectfully.

YRC freight lost a little over 5 million. Old Dominion made over 82 million in operational profit while revenues were 541 million. Fedex had 81 million operational profit with total revenues of 1.4 billion. All these figures are from 2Q2012.
 
nothumbleenough said:
I was shocked to see that YRC regional earned 23 million off their operational earnings. ABF only earned 7.7 million off of its operational earnings. The revenues between the two companies are about the same, 429 milllion and 445 million respectfully.

YRC freight lost a little over 5 million. Old Dominion made over 82 million in operational profit while revenues were 541 million. Fedex had 81 million operational profit with total revenues of 1.4 billion. All these figures are from 2Q2012.
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Here is the question I find myself asking. If the regional' s can do it then why not yrc. One must look at the SEC filings to get to the truth. YOUR BROTHER ALWAYS!
 
nothumbleenough said:
I was shocked to see that YRC regional earned 23 million off their operational earnings. ABF only earned 7.7 million off of its operational earnings. The revenues between the two companies are about the same, 429 milllion and 445 million respectfully.

YRC freight lost a little over 5 million. Old Dominion made over 82 million in operational profit while revenues were 541 million. Fedex had 81 million operational profit with total revenues of 1.4 billion. All these figures are from 2Q2012.
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Holland barely crosses the mid states area. National is a completely different animal. I for one don't think a comparison works.
 
okeydokey said:
Yrc regional isn't only holland. That includes new penn and reddaway too which does cover almost All the states
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So what your telling me is once Holland picks something up any area it is delivered to its destination by a YRC Regional to is destination....and visa versa. No interlining with some cut rate carrier someplace? Altho it is posible to cover the US it is not something Regional focuses on and once they do I would expect that Bragging rights about OR and such will dwindle. For now I will say not comparable.

PS If I missed the point that maybe Holland was not the profitable division I apologize as it never crossed my mind before now.
 
nothumbleenough said:
I was shocked to see that YRC regional earned 23 million off their operational earnings. ABF only earned 7.7 million off of its operational earnings. The revenues between the two companies are about the same, 429 milllion and 445 million respectfully.
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Last I heard is that ABF is still at top rate..Sure the regionals made money ,but that is because of all the givebacks..Put them at top scale and see where they stand..
 
crazy said:
Last I heard is that ABF is still at top rate..Sure the regionals made money ,but that is because of all the givebacks..Put them at top scale and see where they stand..
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Another good point Crazy. Hard to find any fault with the way ABF is run, compaired to what we have seen since YRCW, it is a night and day difference.
 
crazy said:
Last I heard is that ABF is still at top rate..Sure the regionals made money ,but that is because of all the givebacks..Put them at top scale and see where they stand..
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I don't know anything about Holland or Reddaway but I am confident that New Penn is profitable even at full rate+pension. It is a shame they way they are getting bled the way they are and they got not help from Jimmy the Great or TJ.
 
okeydokey said:
Yrc regional isn't only holland. That includes new penn and reddaway too which does cover almost All the states
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YRC no longer does regional work. Nobody does that better than New Penn and Holland is the reason YRC gave it up and returned to 3-5 day service. YRC always wanted to be a UPS/FedEx but hey, not everybody can make it to the Olympics
 
ABFer said:
I don't know anything about Holland or Reddaway but I am confident that New Penn is profitable even at full rate+pension. It is a shame they way they are getting bled the way they are and they got not help from Jimmy the Great or TJ.
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i believe you're right. i always felt from day 1 that NP never needed a concession. in fact it was proven when NP Prez Steve G came to our terminal and said it. the man pulled no punches and made it clear that "we have to help them survive". and the rest is history folks
 
crazy said:
Last I heard is that ABF is still at top rate..Sure the regionals made money ,but that is because of all the givebacks..Put them at top scale and see where they stand..
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That is a reasonable question. The problem is they are not. (paying full scale) Their parent company YRC also owns YRC freight as a subholding, and together if they were profitable, I believe the kickback would take effect.

What is very interesting about YRC's balance sheet, is they are not reducing any of their debt. (Still around 1.3 Billion) As I understand the deal struck with the previous bond holders, they will exchange stock sometime in 2014 or 2015 as payment, possibly in full. So basically, for the next couple of years, YRC will not show a profit yet build equity back into the business. How do you think ABF will be in two more years with a YRC still only paying 25% into the pension and having the 15% giveback competing in same LTL market.

In my opinion, bankrupt. I can only hope the leaders of our union (Tyson Johnson and Gordon Sweeton are you listening?) can also see this gigantic sized teamster pot-hole and working hard to prevent hitting it.
 
nothumbleenough said:
That is a reasonable question. How do you think ABF will be in two more years with a YRC still only paying 25% into the pension and having the 15% giveback competing in same LTL market.

In my opinion, bankrupt. I can only hope the leaders of our union (Tyson Johnson and Gordon Sweeton are you listening?) can also see this gigantic sized teamster pot-hole and working hard to prevent hitting it.
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How do you see ABF going bankrupt because of YRC? ABF faces more formidable foes then YRC, (FedEx/Conway ) just to name the two largest. Given ABF made a profit in a tough market their only problem is they are not making enough profit for what revenues they pull in. The biggest problem for YRC/ABF are pension costs. If the orphan/pension situation is not resolved two things will happen:
1. Teamster pensions will not be what they once were..future retirees will take the hit.

2. YRC/ABF will never make the profits they should be making. If union carriers have to shed freight instead of gaining freight because their costs are too high it will get ugly. This is 2012 not 1975
 
Joe the plumber said:
How do you see ABF going bankrupt because of YRC?
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They face the same competition. ABF is transitioning to more of a regional next day carrier similar to YRC Regional, but they are a long way from fully implemented. Many small C.O.O. will continue as they utilize the "utility driver." But the company we at ABF most closely model, or should say want to model is Old Dominion.
 
BTW, Old Dominion had over 82 million in operational profit in 2q2012. ABF had roughly 7.7 million in operational profit. That is a 74.3 million difference for one quarter for two companies roughly the same size and similar revenues.
 
Which in the long run, leads to owners equity in the company. As an example, Old Dominion current marketcapitalization, which is the dollar amount of all its stock is 2.5 billion. Last year at this time it was roughly 1.6 billion. ABF currently has a marketcapitalization of 261 million. Last year at this time, it was 577 million. Poof, 315 million has essentially disappeared in owners equity in one year at ABF while Old Dominion has picked up 900 million in value.

Absolutely ABF can and will go out of business if these trends continue.
 
nothumbleenough said:
They face the same competition. ABF is transitioning to more of a regional next day carrier similar to YRC Regional, but they are a long way from fully implemented. Many small C.O.O. will continue as they utilize the "utility driver." But the company we at ABF most closely model, or should say want to model is Old Dominion.
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A mistake ABF made was not keeping the Carolina brand and keeping it separate aka New Penn/Holland. Maybe ABF didn't have the money to upgrade Carolina. YRC is in trouble because the economy wouldn't allow Yellow-Roadway to remain separate
 
Growth

nothumbleenough said:
Which in the long run, leads to owners equity in the company. As an example, Old Dominion current marketcapitalization, which is the dollar amount of all its stock is 2.5 billion. Last year at this time it was roughly 1.6 billion. ABF currently has a marketcapitalization of 261 million. Last year at this time, it was 577 million. Poof, 315 million has essentially disappeared in owners equity in one year at ABF while Old Dominion has picked up 900 million in value.

Absolutely ABF can and will go out of business if these trends continue.
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You are correct. A company must have growth to survive. ABF had growth in the past through acquisitions & providing quality service not discounting like some of the competitors. I doubt ABF will buy any more freightlines. The Panther acquisiton was necessary for growth. Discounting is not an option for ABF since they have the highest employee cost in the industry.
As for keeping brands seperate ABF wisely combined the companies they bought over the years while freight & the economy were good. It doesn't make sense to have two companies that are owned by one parent company competing for the same freight. Also it is more costly to operate multiple terminals in one city than to combine the freight & operate under one roof. That is why ABF sold terminals & combined where there was duplicate facilities.
 
nothumbleenough said:
Absolutely ABF can and will go out of business if these trends continue.
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That's unlikely tho ABF Inc can't go on the way they are. There has got to be a confrontation to offset the trends. I mean these are fighting words" >
http://arkbest.com/news/pr/PDF/2012/2Q_12_Earnings_Release.pdf
“While we are encouraged by ABF’s yield initiatives, we continue to focus on various paths to reduce ABF’s overall cost structure,” said Ms. McReynolds. “On-going efforts that offer opportunities to reduce ABF’s cost structure include ABF’s labor contract lawsuit, collaborative work to develop a permanent solution to correct our payment of non-ABF multiemployer pension benefits and preparations for negotiation of a new April 2013 labor contract.”
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ABF CEO Judy R. McReynolds is targeting 2013 labor contract as an opportunity to reduce ABF’s cost structure? That is opportunistic of her. Muler is blaming YRC and the IBT for this attack on them. Given YRC teamsters didn't have the balls to stop concessions maybe Muler and Docker can show us how it's done. It appears Judy is no joke.
 
Joe the plumber said:
A mistake ABF made was not keeping the Carolina brand and keeping it separate aka New Penn/Holland. Maybe ABF didn't have the money to upgrade Carolina. YRC is in trouble because the economy wouldn't allow Yellow-Roadway to remain separate
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That is a ridiculous post!
 
nothumbleenough said:
That is a reasonable question. The problem is they are not. (paying full scale) Their parent company YRC also owns YRC freight as a subholding, and together if they were profitable, I believe the kickback would take effect.

What is very interesting about YRC's balance sheet, is they are not reducing any of their debt. (Still around 1.3 Billion) As I understand the deal struck with the previous bond holders, they will exchange stock sometime in 2014 or 2015 as payment, possibly in full. So basically, for the next couple of years, YRC will not show a profit yet build equity back into the business. How do you think ABF will be in two more years with a YRC still only paying 25% into the pension and having the 15% giveback competing in same LTL market.

In my opinion, bankrupt. I can only hope the leaders of our union (Tyson Johnson and Gordon Sweeton are you listening?) can also see this gigantic sized teamster pot-hole and working hard to prevent hitting it.
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Do the math yrc pays as much into pension funds and 401k's as ABF pays into our pension funds. They pay 25% of the rate but they have 4 times as many employees. So your numbers don't add up. Just thought I would give you a little history lesson. And as far as OD and the rest of them trucking companies you are so worried about here is another history lesson for you. WE HAVE ALWAYS BEEN THE HIGHER PAID DRIVERS FOR DECADES AGAINST THEM! So your sky is falling ideas are falling on deaf ears here. YOUR BROTHER WITH A PAIR ALWAYS!
 
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