YRC Worldwide posts lower 2Q net earnings, operating revenue

user-gravatar

YRC Worldwide Inc. on Thursday, July 24, announced diluted earnings per share of $.62 for the second quarter 2008, including a previously announced curtailment gain of $.39 per share and charge of $.09 per share for significant claim activity. The quarter also included a combined $.07 per share of losses on property disposals and reorganization charges. In the second quarter of 2007, the company reported $.95 of earnings per share.

For thr three-month period, the company reported operating revenue of $2.40 billion, down from $2.49 billion during the same period last year; net income was $36.3 million, down from $55.4 million. For the six-month period, operating revenue was $4.63 billion, down from $4.81 billion during the same period last year; the company posted a net loss of $9.6 million, down from a $56.6 million profit last year.

“In spite of a challenging economy, our positive momentum continued in the quarter, and we significantly improved our sequential results, delivering earnings consistent with previously issued guidance for the quarter,” said Bill Zollars, chairman, president and chief executive officer of Overland Park, Kan.-based YRC Worldwide. “Our actions to improve operational efficiency, get our regional companies back on track and reduce overhead costs have been effective. We are carrying that momentum forward as we implement further operational improvements in the third quarter.”

Key segment information for the second quarter 2008 included:

  • YRC National Transportation less-than-truckload revenue per hundredweight up 8.2 percent from second quarter 2007; LTL tonnage per day down 9.9 percent; revenue of $1.7 billion, consistent with 2007; and
  • YRC Regional Transportation LTL revenue per hundredweight up 6.1 percent compared to last year; LTL tonnage per day down 17.6 percent; revenue of $533 million, down 11.7 percent from 2007.
  • The company said it expects to earn between $1.05 and $1.15 per share in the third quarter; these results will include a curtailment gain of about $.70 per share and increased union health and pension costs of about $.15 per share attributable to contractual increases that take effect on Aug. 1. The company said it expects to offset these cost increases with operational efficiencies by yearend. The curtailment gains that were recognized in the second quarter and will be recognized in the third quarter are related to the harmonization of retirement plans across the company for noncontractual employees, according to the company.

    “We are encouraged by our progress and are optimistic about continued improvement in our performance,” Zollars said.