Updated on 4/24/2006 - 4:45:00 PM EST
YRC Reports Lower First-Quarter Earnings
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Less-than-truckload carrier YRC Worldwide late Monday reported its first-quarter earnings fell to $42.1 million or 71 cents a share, from $49.9 million or 96 cents in the same quarter last year.
The company in late March lowered its earnings guidance to a range of 65 to 70 cents a share, well below its earlier guidance of $1 to $1.05. (Click here for previous coverage.)
YRC’s first-quarter operating revenue rose to a record $2.37 billion from $1.7 billion last year, though the 2006 first quarter included revenue from the USF Corp. companies acquired last year by YRC, formerly known as Yellow Roadway Corp. (Click here for previous coverage.)
"Despite good revenue growth in all areas of our company, the quarter did not come in where we had planned," Chairman and Chief Executive Officer Bill Zollars said.
"We have taken aggressive steps to improve our financial performance going forward. The economy still looks healthy, our brands remain strong and our synergy programs are on track," he said in a statement.
Within its operating units, Yellow Transportation’s revenue rose 6.2% to $841 million, while LTL tonnage rose 2.8%. Operating income fell to $30.9 million from $46.1 million.
Roadway Express’ revenue rose 5% to $805 million. Operating revenue rose to $38 million from $37 million.
YRC Regional Transportation, which includes the USF companies and New Penn Motor Express, had first-quarter revenue of $592 million and operating income of $21 million.
Meridian IQ, the company’s logistics subsidiary, saw its revenue rise 148% to $140 million. Operating income rose to $2.5million from $1 million.
YRC Worldwide is ranked No. 3 in the Transport Topics 100 listing of North American for-hire carriers.
By Transport Topics
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