YRC Worldwide Posts Profit in 4Q
YRC Worldwide Inc. reported fourth-quarter net income of $400,000, compared with a $35.3 million loss in the prior year period, helped by an income tax benefit.
The company’s operating results, however, were worse than the prior-year period, showing a loss of $1.6 million, compared with a profit of $30 million before interest and taxes, YRC said Feb. 27. Revenue rose to $1.21 billion from $1.17 billion.
The national YRC Freight unit posted a $15.4 million loss, compared with a profit before interest and taxes of $21.1 million in the year-earlier period.
At the regional unit, results improved with a $22.7 million operating profit, well ahead of $8.4 million in the year-earlier period.
YRC Worldwide CEO James Welch said, “While YRC Freight stumbled during 2013, our regional carriers delivered a solid performance with a 5.4% increase in revenue from increases in both tonnage and revenue per hundredweight.”
Chief Financial Officer Jamie Pierson said on a conference call that the weaker operating results were the result of weather, workers’ compensation costs and weaker rates.
YRC also said that Darren Hawkins, 44, has been named president of YRC Freight. Welch put himself in charge of that unit late last year after the departure of Jeff Rogers. Rogers was in charge of YRC’s largest unit during an operational change that raised the cost of the national unit and erased operating profits earlier in 2013.
Hawkins had been senior vice president of sales and marketing at YRC Freight.
YRC Worldwide ranks No. 5 on Transport Topics Top 100 For Hire Carriers in the United States and Canada.
