YRC Worldwide posts third-quarter profit on stronger operations
Nov 03, 2012 (Menafn - The Kansas City Star - McClatchy-Tribune Information Services via COMTEX) --YRC Worldwide Inc. reported its first quarterly profit in nearly two years Friday and said it was still evaluating the effects of the Sandy mega-storm.
The storm has trapped trailers and freight in some parts of the Northeast, halted shipments heading there and flooded some terminals, chief executive James Welch said.
"A lot of our customers still don't have power," he said.
The extent of flooding remained unknown at terminals YRC employees had not been able to reach as of Friday afternoon. Crews also were evaluating the effect in other places that were reached, such as a terminal in Kearny, N.J.
YRC, based in Overland Park, did not estimate the financial cost of cleanup, repairs and claims on damaged goods. Welch said he was unaware of any structural damage, such as roof losses, from the storm. But he said it would cost money to get tractors and trailers back on their normal routes after the extensive disruption.
The storm hit just as seasonal trucking traffic declines. But it followed YRC's first quarterly profit since the final months of 2010, which had benefited from a large tax settlement in the company's favor.
YRC said its 3 million profit in the third quarter represented a stronger operating business. The company had lost 122.3 million a year earlier. Last year it also completed a financial reorganization to avoid bankruptcy.
YRC said it now has posted six months in which its income from operating the business exceeded the costs of running it. This total, called operating income, ignores some expenses such as interest on debt.
YRC shares fell 22 cents Friday, closing at 7.35.
Revenues declined to 1.24 billion from 1.28 billion a year earlier and chiefly at its YRC Freight national operation. Revenues among its regional trucking subsidiaries increased.
Much of the drop in business was by choice as YRC stopped hauls that made no economic sense for the trucking concern.
"You really can't imagine some of the types of freight we were handling," Welch said during a conference call with analysts.
Later, he said the deals might have been made when the company struggled to keep its operations busy and was less concerned about profit.
YRC still accepts lower-paying hauls or even some that don't generate profit but still offset some of the costs of what would otherwise be empty trucks on return routes.
Welch told analysts that YRC intended to grow its business but would keep an eye on profitability.
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