The $500 million financial restructuring completed in July may save YRC Worldwide in the long-term, but any gain came with some short-term pain in the third quarter.
YRC Worldwide losses deepened in the third quarter while revenue rose 12.3 percent to $1.276 billion on higher year-over-year freight volumes. The nation’s second-largest less-than-truckload operator reported a $120 million net loss compared with a $62 million net loss in the same quarter a year ago.
The loss included a $79 million charge related to the release of new stock under its $500 million financial restructuring plan, as well as other related one-time costs. YRC Worldwide’s operating loss climbed to $24 million from $19 million a year ago. Absent restructuring charges, it would have had a $3 million operating profit.
In the second quarter, YRC Worldwide reported a $39 million net loss on $1.3 billion in total revenue. The company suffered a $102 million loss in the first quarter.
YRC Worldwide’s new leaders are just starting to implement plans to steer the LTL giant away from more than $2.5 billion in losses over four years. Their efforts are backed by increases in freight volume, yield and revenue at the $4.3 billion company’s national and regional LTL carrier subsidiaries.
Regional subsidiaries Holland, New Penn and Reddaway increased their combined revenue and pushed operating profit up 25 percent year-over-year. The regional group reported a $12.4 million operating profit on $404.8 million in revenue, a 14.3 percent increase in sales on a 5.6 percent increase in tonnage.
National LTL carrier YRC — the third-largest U.S. LTL carrier — reported a $14.3 million operating loss as revenue rose 11.5 percent to $841.6 million. The national unit of YRC Worldwide reported a $10.6 million operating profit in the second quarter, and a $16.4 million operating loss in the 2010 third quarter.
The company’s truckload subsidiary, YRC Glen Moore, saw revenue fall 9.9 percent to $26 million and its operating loss rise almost $500,000 to $2.7 million.