Fewer tons, better terms boost YRC Worldwide’s profit

More profitable terms with shippers offset lower tonnage at trucking company YRC Worldwide, leading to a $19.8 million profit in the third quarter.

The Overland Park-based company’s profit overshadowed the $1.2 million net income it reported in the same quarter of 2014. Operating income, which ignores debt and interest payments, reached $47.7 million, up nearly 79 percent from a year ago.

Revenue of less than $1.25 billion was nearly 6 percent lower than a year ago, when it topped $1.32 billion.

“We continued to stay committed to our strategy of placing pricing improvements and profitability ahead of tonnage growth,” chief executive James Welch said in the company’s announcement Thursday. “As a result, operating, financial and safety performance improved.”

Average tonnage slipped 6.2 percent at YRC Freight, the company’s national less-than-truckload carrier, and 3.5 percent at its regional carriers.

YRC has been culling less profitable shipments from its hauls. It had turned to those shipments previously when it struggled financially and saw some shippers move to rival carriers.

This story was originally published October 29, 2015 at 4:11 PM with the headline "Fewer tons, better terms boost YRC Worldwide’s profit."