Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nasdaq  >  YRC Worldwide Inc    YRCW

News SummaryMost relevantAll newsSector newsTweets 

YRC CEO: Focusing On Main Trucking Market After Paring Operations

share with twitter share with LinkedIn share with facebook
share via e-mail
05/03/2012 | 05:56pm CEST

--CEO Welch says he wants to improve the company's core North American operations

--Welch says company is finished getting rid of operations

--Welch wants to boost company's yield

   By Bob Sechler 

YRC Worldwide Inc. (>> YRC Worldwide Inc.) has largely finished pruning its business lines and now has a "laser-like" focus on improving its core North American operations, James Welch, chief executive of the struggling trucking company, said Thursday.

"We're pretty much set now, and it's pretty much executing and making the business better," Welch said in a post-earnings interview. "We like what we have right now."

Welch, a trucking-industry veteran who left YRC in 2007 but who returned as CEO last July, has been concentrating the company on its big less-than-truckload operations. In December, he sold off YRC's Glen Moore truckload business and, in March, he sold its stake in Shanghai Jiayu Logistics, a Chinese logistics firm.

Less-than-truckload carriers consolidate loads from multiple customers onto single trucks.

YRC still provides some freight-forwarding services in China through its JHJ International Transportation joint venture. Welch declined to discuss his plans for the unit--saying that commenting on it would be "too forward-looking"--but he made clear that YRC's priority is on the North American less-than-truckload market.

The company, based on Overland Park, Kan., showed improvement in the market during the first quarter, with tonnage per day in its main less-than-truckload freight division up 3.5%, outpacing a 1.5% gain by rival Con-way Inc.'s (CNW) freight division and a 2.3% decline in shipments per day at United Parcel Service Inc.'s (UPS) freight division.

Still, some of YRC's volume gains appeared to come at the expense of pricing. Con-way and UPS improved their yields--or revenue per hundredweight, a broad measure of pricing--by 6.1% and 4.5%, respectively, during the first quarter, compared with a 3.3% rise at YRC's freight division.

Welch acknowledged Thursday that "the yield on our business is not as good as what we want," and he said YRC is working to improve service levels so that it is better able to raise prices by demonstrating value to customers. He dismissed the notion that YRC intentionally used price to gain volume.

"We are not out in the marketplace overreaching," he said. "We're trying to win business, but we're trying to win it on value, not on price."

Welch described the overall economy as "steady," echoing comments from Con-way executives earlier this week.

YRC shares were off 2.6%, or 19 cents, at $7.19 in recent trading.

The company reported a narrower first-quarter loss Thursday as its revenue improved. It lost $85.5 million, or $12.40 a share, in the quarter, compared with a year-earlier net loss of $102.2 million, or $643.56 a share. The company's 1-for-300 reverse stock split went into effect Dec. 1. Revenue rose 6.4% to $1.19 billion.

Analysts polled by Thomson Reuters had projected a per-share loss of $10.42 and revenue of $1.19 billion.

Debt-laden YRC has been fending off a bankruptcy-protection filing since late 2009. On Monday, YRC won an agreement from creditors to relax terms on some loans, giving it more breathing space to concentrate on improving its operations.

Despite significant downsizing over the past few years, YRC remains the largest operator in the domestic less-than-truckload sector, with 15.5% of the market based on 2011 revenue, according to SJ Consulting Group, just ahead of FedEx Corp.'s (>> FedEx Corporation) freight division.

YRC employed about 32,000 people at the end 2011--about 25,000 of them members of the Teamsters union--little more than half its workforce at the end of 2007.

-By Bob Sechler, Dow Jones Newswires; 512-258-1690; [email protected]

--Nathalie Tadena contributed to this article.

Stocks mentioned in the article : YRC Worldwide Inc., FedEx Corporation
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on YRC WORLDWIDE INC
04/21 YRC WORLDWIDE : Freight tries pay raises for hard-to-fill Teamsters jobs, but no..
04/17 YRC WORLDWIDE : Reddaway Presented with Echo Global Logistics 2016 Regional LTL ..
04/17 Reddaway Presented with Echo Global Logistics 2016 Regional LTL Carriers&rsqu..
04/17 Holland Named Echo Global Logistics 2016 LTL Carriers’ Platinum Award W..
04/13 YRC Freight Recognized as NASSTRAC 2016 LTL Carrier of the Year
04/12 YRC Worldwide Schedules First Quarter 2017 Earnings Conference Call
03/23 YRC WORLDWIDE : Big pay drop for YRC Worldwide CEO tied to company's performance
03/21 YRC Worldwide Names Technology Leader Jason Ringgenberg as Chief Information ..
03/14 Holland Hosts Fifth Annual Safety Drive for a Cure
03/10 Holland Earns Vehicle Service Group 2016 LTL Carrier of the Year Award
More news
Sector news : Ground Freight & Logistics - NEC
04/25 CANADIAN NATIONAL RAILWAY : CN Rail's revenue rises 8 pct on higher freight volu..
04/20DJCSX : New CEO Promises 'Different Strategy'
04/20DJCSX : Today's Top Supply Chain and Logistics News From WSJ
04/20DJCSX : Receives Boost From Uptick in Coal Shipments -- WSJ
04/19 CSX posts higher profit, new CEO says better is to come
More sector news : Ground Freight & Logistics - NEC
News from SeekingAlpha
04/25 TOP 10 - 2016 EPS GROWTH : Can They Do It Again In 2017?
04/23 Transports Week In Review - Volatility At Its Best As Transports Charge Ahead
04/15 Transports Week In Review - Rough Week For Markets Across The Board
04/13 Tesla to unveil semi truck in September
04/10 Colossal merger shakes up trucking
Financials ($)
Sales 2017 4 848 M
EBIT 2017 148 M
Net income 2017 35,4 M
Debt 2017 779 M
Yield 2017 -
P/E ratio 2017 10,73
P/E ratio 2018 6,22
EV / Sales 2017 0,24x
EV / Sales 2018 0,21x
Capitalization 367 M
More Financials
Duration : Period :
YRC Worldwide Inc Technical Analysis Chart | YRCW | US9842496070 | 4-Traders
Full-screen chart
Technical analysis trends YRC WORLDWIDE INC
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 6
Average target price 18,5 $
Spread / Average Target 69%
Consensus details
EPS Revisions
More Estimates Revisions
James L. Welch Chief Executive Officer & Director
James E. Hoffman Chairman
Stephanie D. Fisher Chief Financial Officer, VP & Controller
Jason T. Ringgenberg Chief Information Officer
Raymond John Bromark Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
More Results