YRC Worldwide’s 1Q Loss Widens
YRC Worldwide Inc. said May 1 its first-quarter loss nearly tripled due to factors such as winter weather and claims costs.
The less-than-truckload carrier’s loss widened to $70.2 million, or $3.95 per share, from $24.5 million, or $2.93, a year ago.
Revenue rose 4.2% to $1.21 billion, Overland Park, Kansas-based YRC said in a statement.
Its YRC Freight national LTL unit’s operating loss was $32.4 million excluding interest and taxes, compared with a $2.4 million profit in the 2013 period. Revenue rose 0.4% to $756.8 million, helped by higher tonnage.
Its YRC Regional unit posted a profit excluding interest and taxes of $7.9 million, and revenue rose 11% to $454.1 million.
“We faced numerous challenges during the first quarter,” YRC Worldwide CEO James Welch said in a statement, estimating a $20 million reduction in operating income.
He cited bad weather and “distractions” related to ratification of a union agreement, while claims and injury costs rose $13.2 million.
YRC also had an $18.4 million expense for amortization in connection with share conversion. Per-share amounts were affected by the issuance of new shares.
YRC Worldwide ranks No. 5 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
