YRC Worldwide Loses $7.5 Million in 4Q 2017
Less-than-truckload carrier YRC Worldwide reported Feb. 1 a fourth-quarter net loss of $7.5 million, the same loss amount reported in the fourth quarter a year ago. Analysts surveyed by Bloomberg News had expected earnings per share of 10 cents. Operating income in 2017’s fourth quarter was $11.3 million compared with $14.9 million a year ago. Revenues in this year’s quarter were $1.2 billion, up from $1.1 billion.
For the year, YRC reported a net loss of $10.8 million, compared with 2016 profits of $21.5 million. For 2017, operating income was $98.4 million, down from $124.3 million a year ago. Revenues in 2017 were $4.9 billion, up from $4.7 billion.
The company said its fourth-quarter and full-year results were impacted by a $7.6 million non-union pension settlement charge.
Chief Financial Officer Stephanie Fisher said in a call with analysts that the revenue rise was due to improvements at the YRC Freight division and the company’s regional carriers along with a higher fuel surcharge. “However, the increase in revenue was more than offset by the cumulative impact of increases in purchase transportation costs, contractual wage and benefit increases and an increase in fuel expense,” Fisher said.
YRC CEO James Welch said the company in the fourth quarter had to rent about 2,000 tractors and trailers to meet its obligations. The firm took delivery of 450 tractors in the quarter and has another 900 scheduled for delivery in the first half of 2018, said Welch, who will retire on July 31.
The freight division reported operating income of $3.6 million on operating revenue of $761.7 million. That compares with fourth-quarter 2016 loss of $100,000 on revenues of $730.3 million. The division’s total tonnage for the 2017 quarter was 1.5 million, virtually unchanged from a year ago.
The regional transportation unit reported income of $8.9 million on revenues of $446.9 million. In 2016, the unit had income of $16.4 million on revenues of $418 million. Total tonnage in the quarter was 1.9 million, a rise of nearly 6% from a year ago.
For the year 2017, freight reported operating income of $41.4 million on revenues of $3.1 billion, compared with 2016 income of $53.2 million on revenues of $3.0 billion.
The regional transportation group reported income of $67.9 million on revenues of $1.8 billion, compared with 2016 income of $81.3 million on revenues of $1.7 billion.
Overland Park, Kan.-based YRC Worldwide ranks No. 5 in the Transport Topics Top 100 for-hire carriers in North America.
