YRC Worldwide announces 3Q earnings, management changes

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YRC Worldwide Inc. on Thursday, Oct. 25, announced third-quarter operating income of $88 million compared to operating income of $178 million in 2006. Quarterly operating revenue was $2.5 billion compared to the third quarter last year of $2.6 billion, and the company’s operating ratio was 96.4 compared to 93.1 for the same quarter in 2006.

“The weak domestic shipping market continues to significantly impact the operating performance of all our companies,” said Bill Zollars, chairman, president and chief executive officer of Overland Park, Kan.-based YRC Worldwide.

Key segment information for the 2007 third quarter included:

  • YRC National Transportation, operating ratio of 94.7;
  • YRC Regional Transportation, operating ratio of 100.2; and
  • YRC Logistics, operating ratio of 97.3.
  • “YRC National Transportation and YRC Logistics have responded aggressively to the difficult operating environment, and their results compare favorably to overall industry performance,” Zollars said. “YRC Regional Transportation faced additional challenges from consumer mix and integration issues and, as a result, performed well below expectations. We are taking appropriate actions to address these performance issues.”

    YRC Worldwide announced that Mike Smid has been named president of North American Transportation. In this newly created role, Smid will be responsible for the asset-based operating companies of YRC Worldwide. Smid, who will continue to report to Zollars, has served as president of YRC National Transportation since its formation in January 2007 and was previously president of Roadway.

    Jim Staley, president of YRC Regional Transportation, has announced his retirement effective Dec. 31 after 37 years in the industry. “I would like to thank Jim for his tremendous contributions to the Roadway and YRC Worldwide organizations throughout his career,” Zollars said.

    Keith Lovetro has been named president of YRC Regional Transportation effective immediately. Lovetro, who will report to Smid, recently joined the company and brings extensive experience in regional transportation to the organization. Jim Ritchie, president of YRC Logistics, and the YRC Worldwide senior management team will continue to report to Zollars.

    “These changes will streamline our management structure and enable significant opportunities to enhance profitability across the corporation,” Zollars said. “We are targeting $100 million over the next six months through the combination of enhanced operating performance, the elimination of redundant activities and other cost reductions.

    “The transportation industry continues to be impacted by lower volumes, and the economic outlook is uncertain,” Zollars said. “Our results will continue to be impacted by the soft economy.”