YRC Says New Customers Are On Board

YRC Worldwide says it is gaining new customers even as it continues to lose some shippers, leading to "stabilization" of its customer base and improved yields, top company officials say.

"We've got new customers coming on board all the time," Chairman, President and CEO William D. Zollars said in an Oct. 30 conference call with analysts.

"We've also got a very stable base of customers that have not left and are still doing business with us," Zollars said. He said, however, that "it's a mixed bag," admitting "we have customers that are leaking business and have moved away from us."

His observation supports anecdotal reports from shippers, consultants and analysts that YRC Worldwide has stemmed the exodus of large shippers who fled the company late last year and early this year amid speculation that YRC might shut down and the integration of Roadway and Yellow Transportation.

It also suggests that some shippers continue to shift a portion of the freight they once gave YRC Worldwide to competitors as a hedge against any disruption in the less-than-truckload market. "The sum total is stabilization," said Zollars.

The company says the service problems experienced during and after the integration of Yellow and Roadway into YRC are behind it now, and that customer continue to return.

Chief Operating Officer Tim Wicks said the carrier is drilling down into its markets to target specific types of customers. "When we talk about the improvements we're seeing, those are being strategically driven by going after the right customers," he said.

"One of the real areas of focus has been to work on our customer mix to bring on board the most profitable customers possible," said Zollars. "That's having a positive impact on our yield."

Contact William B. Cassidy at wcassidy@joc.com