William B. Cassidy | Jul 15, 2011 11:33AM EDT
YRC Worldwide expects its revenue to rise about $600 million this year to $4.9 billion and to report an operating profit of $4.2 million in the second half.
The company didn’t say how it would turn a projected $69.1 million operating loss in the first half into an operating profit, but it has high hopes for the second half.
YRC gave the public a limited view into its internal forecast for 2011 after sharing the information with its lenders while negotiating its financial restructuring.
The trucking company filed its forecast with the Securities and Exchange Commission Thursday as it nears the July 22 restructuring deadline.
Despite the recent slowdown in the economy, YRC is predicting a 7 percent increase in revenue in the second half of the year from the first half to $2.5 billion.
For the full year, the less-than-truckload carrier group expects an operating loss of $64.9 million, compared with a $230.6 million operating loss in 2010.
YRC said its adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — would rise to $149.9 million in the second half of the year.
For the full year, YRC’s adjusted EBITDA, which the company uses as a measure of operating performance, would rise from $71.9 million a year ago to $209.8 million.
The company, which lost $102 million in the first quarter, warned that its forecast contained only “estimates” and could be affected by events outside its control.
But YRC’s limited forecast shows it expects gains in tonnage in the first half of the year to continue, and pricing and the profitability of shipments to improve.
In April, YRC’s national LTL network increased tonnage 7.6 percent from the same month a year ago, while its regional carriers increased tonnage 8.5 percent.
However, it lagged competitors in raising LTL yield, indicating it was having trouble boosting pricing and accepting more lower priced freight than other carriers.
More detail on the company’s performance in May and June will be available when it releases its second quarter earnings report. A release date hasn't been set.
-- Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter @wbcassidy_joc.
