Trucking and logistics company YRC Worldwide Inc. announced first-quarter profits slipped 16 percent as operating expenses grew faster than sales. The Overland Park, Kan.-based company, formerly known as Yellow Roadway Corp., reported earnings of $42.1 million, compared to $49.9 million during the same period a year ago.
Revenue grew 41 percent to $2.37 billion from $1.68 billion in the year-ago period. The company reported its Roadway and Yellow Transportation segments saw sales rise 5 percent and 6 percent, respectively, but that growth was overshadowed by a 44-percent leap in total operating expenses to $2.29 billion.
“Despite good revenue growth in all areas of our company, the quarter did not come in where we had planned,” says Bill Zollars, chairman, president and chief executive officer. YRC projects full-year revenue of $10 billion, Zollars says.