YRC Worldwide Inc (YRCW) Witnesses Growth in Freight Segment
YRC Worldwide Inc (NASDAQ:YRCW) CEO, James Welch, said that its freight segment witnessed a growth in yield of 5.7%, which included a fuel surcharge, in the fourth quarter. Excluding surcharge, the growth in yield would have been 7.3% compared to the year-ago quarter. This indicated higher pricing commanded by the company during the December quarter. Similarly, its Regional Transportation division also witnessed yield growth of 3.5%.
As a result, total revenue for a hundredweight of YRC Worldwide Inc (NASDAQ:YRCW)’s freight recorded an uptick of 4.8%, 6.9% and 5.7% in October, November and December respectively. The CEO said that the YOY growth in growth started in the third quarter period and continued throughout the fourth quarter.
Improved Base Rate
The company’s CEO said that the growth in yield indicated the improving base rates trend apart from fundamental pricing. Moreover, the company faced a tonnage per day fall of 1.6% in October and 3.2% each in November and December. Welch attributed the drop to the priority the company accorded to improved yield and profitability and not the volume.
YRC Worldwide Inc (NASDAQ:YRCW) would continue to strive for improved profitability through operational initiatives execution apart from considerably boosting technology investments. The CEO viewed that the weak diesel price and the resultant fuel surcharge revenue would be one of the big headwinds for the complete LTL industry in 2015. Welch said that the company would continue to grow its base rates for the services provided to realize gains from investments made in various spheres like technology, employee engagement, safety, and driver recruitment.
The company reported net income of $6.2 million or 16 cents a share for the December quarter. In comparison, the transporter earned $0.4 million or a loss of $1.71 a share in the year-ago quarter.
Operating revenue of YRC Worldwide Inc (NASDAQ:YRCW) rose 1% to $1.217 billion from $1.207 billion in the previous year quarter. Freight division’s revenue was $795.5 million while Regional Transportation revenue was $422.2 million.
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