YRC Worldwide reported a $58.7 million increase in operating income during the first quarter, with income rising from a $48.8 million loss to a gain of $9.9 million.
The result marks YRC’s first positive operating income in six years.
Operating revenue dropped 2.7 percent to $1.62 billion, year over year, but adjusted before-tax earnings increased by $45.4 million to $60.7 million.
"These results are due to a rational pricing environment for both YRC Freight and the Regional segment, and the productivity improvements along with the customer mix management effort at YRC Freight specifically,” YRC’s James Welch said in a statement. “We still have significant opportunity for further improvements, and as we move throughout 2013, we will continue to focus on providing premium services to both the regional and long-haul segments of the LTL market and growing the business, all while providing our customers the high-quality service they deserve.”
YRC Freight’s operating revenues declined 4.5 percent, year over year, but revenue per hundredweight and revenue per shipment both ticked up by more than 3 percent. Tonnage per day and total shipments declined by 5.4 percent and 5.3 percent, respectively. On the regional side, operating revenues increased by 1.7 percent.
YRC is currently undertaking a network optimization plan, which will reportedly save the company between $25 million and $30 million each year. The savings will be accomplished by increasing network density and reducing empty mileage, among other things, Welch said. - Jon Ross