The less-than-truckload (LTL) carrier YRC Worldwide on Friday said it turned an operating profit in 2012, the first time in six years the company has done so.
YRC had operating profits of $24.1 million in 2012, a $162.4 million improvement from 2011. Revenue, at $4.9 billion, was 0.4 percent lower than in 2011.
"Our year-over-year operating improvement is primarily due to our focus on customer mix management, pricing discipline, productivity improvements, and a decrease in safety related costs," stated James Welch, chief executive officer of YRC Worldwide. "In just 18 months after a complete restructuring of the senior leadership team, the company posted positive consolidated operating income for the first time in six years and exceeded our forecast for the year.
“We eliminated all distractions that have been keeping this company from focusing on what we do best, which is providing premium services to both the regional and long-haul segments of the LTL market,” he said.
The company saw bigger improvements in its regional business segment than its largest segment, YRC Freight. The regional business saw revenue climb 5.6 percent to $1.6 billion on a 2.3 percent increase in tonnage. YRC Freight revenue rose 0.1 percent to $3.2 billion on a 2.5 percent decline in tonnage.
The fourth quarter was the third consecutive quarter in which YRC recorded profits from operations. - Eric Johnson