YRC Worldwide trims loss thanks to the economy and customer confidence
07/31/2014 5:47 PM
08/01/2014 12:09 PM
YRC Worldwide Inc. said an improving economy and growing confidence among customers helped improve its business in the second quarter.
Revenue increased 6 percent to $1.3 billion, and its net loss fell to $4.9 million from a $15.1 million loss in the same quarter a year ago.
“The growth in shipments and tonnage per day is a result of the overall economic improvement and renewed shipper confidence due to the successful completion of our refinancing and modified labor agreement in February,” chief executive James Welch said in the announcement.
Though the company continued to lose money, it made $20 million from operating its trucking business. The loss reflected its interest expenses of $31.7 million, which more than absorbed the operating profit to produce a net loss. A year ago, YRC Worldwide had an operating profit of $14.3 million before covering interest expenses.
Welch said operations still suffer from the network of terminals, distribution centers and routes being somewhat off cycle. Winter weather had disrupted the timing of the network operations and they remain a drag on productivity, forcing the rehandling of some freight and the purchasing of transportation services from other firms.
The Overland Park company said it benefited from $6.5 million in gains from selling assets during the second quarter. Its year-ago results included $1.3 million in losses from asset sales.
This article has been corrected. A previous version overstated the company’s loss in the second quarter a year ago.
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