William B. Cassidy | Mar 22, 2011 11:17AM EDT
Regional less-than-truckload carrier Holland will hire nearly 1,000 drivers this year as freight demand accelerates, the YRC Worldwide subsidiary said Monday.
Holland is seeking additional drivers to handle the rising regional LTL freight volume fueling a turnaround at YRC Worldwide's regional carrier group.
Hiring 1,000 new drivers would expand Holland's driver roster by 15 percent.
The regional group, which includes Holland, New Penn and Reddaway, returned to profitability in the second quarter of 2010, earning $35.8 million in three quarters.
A $39.6 million loss in the first quarter led to a $3.8 million operating loss for the year, but YRC Regional reported a $4.8 million operating profit in the fourth quarter.
After accounting for union equity awards, gains on property sold and impairment charges, the regional group had a $7.8 million adjusted operating profit for 2010.
The group's tonnage increased 13.9 percent in the last quarter. "We're excited at Holland to see that our volumes are building," said Holland President Jeff Rogers.
Holland employs about 1,700 drivers line-haul drivers and 5,000 city drivers, most of whom have been with Holland between five and 20 years, the carrier said.
Holland seeks drivers as trucking operators across the country look to boost employment, spurred by tightening capacity and rising freight demand.
Trucking hired 11,000 workers in February, accounting for half of a monthly gain in transportation jobs, according to federal employment statistics.
YRC Worldwide's regional group is outpacing its national subsidiary, YRC, as trucking giant struggles to secure a long-term restructuring and avoid bankruptcy.
Both the long-haul and regional groups have cut losses substantially since 2009, but YRC isn't out of danger as it works to complete its restructuring by late July.
A conflict with union pension funds over interest rates on deferred contributions could lead creditors to declare YRC in default, the company said in its annual report.
YRC Worldwide lost $322 million in 2010, reporting a $199.7 million operating loss for YRC National, the former Yellow and Roadway national LTL networks.
The carrier reported a $23 million fourth-quarter net profit, as higher pricing and revenue per hundredweight helped break a long chain of quarterly losses.
-- Contact William B. Cassidy at wcassidy@joc.com.