YRC Worldwide posts lower 2Q profit, revenue

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YRC Worldwide Inc. on Thursday, July 26, reported the following consolidated results for the second quarter of 2007:

  • Quarterly operating revenue of $2.5 billion compared to the second quarter last year of $2.6 billion;
  • Adjusted operating income of $105 million compared to second-quarter 2006 adjusted operating income of $177 million. Adjustments in the second quarter of 2007 exclude a net gain from the following: property disposals, reorganization charges related to YRC Logistics, and settlement of certain pre-acquisition USF obligations. Reported operating income was $108 million compared to reported operating income of $172 million in 2006;
  • The tax rate declined from 39.0 percent in the first quarter of 2007 to 34.6 percent in the second quarter, primarily due to the newly available propane gas tax credit; and
  • National Transportation’s adjusted operating ratio was 94.9 percent.
  • “Our results continue to be impacted by a weak domestic shipping market, resulting in a difficult operating environment,” said Bill Zollars, chairman, president and chief executive officer of Overland Park, Kan.-based YRC Worldwide. “National Transportation results compare favorably to overall industry performance even as we continue to face an economic headwind.”

    The transportation industry continues to experience soft volumes year over year, Zollars said. “Most economists have pushed out economic strengthening until late in the year,” he said. “The slower economic conditions will continue to impact the company as we move through 2007.”