YRC Reports $44.4 Million Loss
YRC Worldwide Inc. reported a $44.4 million loss, or $4.45 per share, in the third quarter, compared with net income of $3 million, or 40 cents per share, in the year-earlier period.
YRC blamed the third-quarter 2013 loss on higher costs and lower shipment volumes at its national freight unit.
Third-quarter 2013 profit excluding interest and taxes dropped to $5.3 million, from $27.8 million in the year-earlier period, and revenue rose to $1.25 billion from $1.24 billion. Profit in the third quarter last year was the result of a $9.2 million income-tax benefit.
National freight unit YRC Freight lost $9.2 million before interest and taxes after reporting a 2012 profit in the same period. Profit also fell at the YRC Regional unit.
The earnings were announced against the backdrop of a new round of contract talks with the Teamsters union that the carrier requested. Lenders have been pressuring YRC to step up the pace of its earnings improvement.
YRC is seeking to extend its current contract ending in March 2015 by about four years as multiple rounds of debt repayment loom in 2014 and 2015. Total debt outstanding is about $1.4 billion.
The union hasn’t responded to the request, made Nov. 5, for new talks.
YRC ranks No. 5 on the Transport Topics Top 100 list of U.S. and Canadian for-hire carriers.
