YRC Worldwide Inc. on Thursday, Oct. 26, said third-quarter profits rose 12% on stronger revenue. The company, formerly known as Yellow Roadway Corp., also said a slowing economy would force it to reduce its earnings expectations for the year.
For the three months ending Sept. 30, YRC reported earning $95.8 million, compared with $85.3 million during the same period a year ago. Earnings were adjusted for reorganization expenses, the loss on sale of a subsidiary and property disposals. Revenue for the quarter increased 3.2% to $2.57 billion. The year-ago numbers include only a portion of USF Corp., a regional trucker that YRC acquired in May 2005.
YRC reported that the total number of shipments among its Yellow Transportation, Roadway and YRC Regional subsidiaries fell 2.8% during the quarter compared with a year ago, and that total tonnage in those shipments fell 2.7% from a year ago.
“We have been pleased with the solid results our business units have delivered so far in 2006,” said Bill Zollars, chief executive officer of Overland Park, Kan.-based YRC. “With that said, the economy is growing at a much slower pace, and we believe that will impact our earnings growth in the fourth quarter.”
