YRC Swings to a Loss for Q4 and 2019
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YRC Worldwide Inc. posted losses for both the fourth quarter and the year as it was weighed down by the United Auto Workers strike against General Motors Co., facilities closings and weakening freight traffic in its core Midwest market.
The company swung to a loss of $15.3 million in the fourth quarter from a profit of $17.5 million in the same period a year earlier. The company lost 46 cents per diluted share compared to a gain of 52 cents a year earlier.
Revenue dipped 7.2% to $1.16 billion in the quarter from $1.25 billion a year earlier.
For the full year, YRC reported a loss of $104 million compared with net income of $20.2 million in 2018. Revenue fell 4.3% to $4.87 billion from $5.09 billion in the prior year. The company lost $3.13 per diluted share compared to a gain of 60 cents in 2018.
“Despite a challenging industrial backdrop in the back half of 2019, it was a very active year for us as we kicked off our multiyear enterprise transformation strategy,” Darren Hawkins, CEO of YRC, said in a news release.
During 2019, the company reached a five-year labor contract with the Teamsters union, and also refinanced $600 million in debt with more flexible terms that it said earlier in the year would save it $18 million in interest annually. In addition, YRC went through a management restructuring to streamline decision-making and reorganized its sales force.
“Our strategy will build on the strengths and breadth of our regional and national networks and the equally respected brand names associated with each and is intended to enhance our customer experience with the end goal of improving our profitability and cash flow,” Hawkins said.
Headquartered in Overland Park, Kan., YRC Worldwide owns a portfolio of less-than-truckload companies including Holland, New Penn, Reddaway and YRC Freight, as well as the logistics company HNRY Logistics.
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The company said it will focus on three main improvements this year.
It wants to structurally improve its network to increase asset utilization, expand service offerings and leverage the flexibilities gained with its new labor contract. YRC said it also will work to improve customer service and operational flexibility by consolidating disparate company systems onto a single platform.
Plus, it said it will reduce its facilities while maintaining geographic coverage and service levels. Such a move is intended to cut mileage while matching facilities and equipment to customer demand.
Last year the company consolidated 25 service centers as it melded its different brands into a more unified network.
“My vision is that our customers will have access to five brands through one network and one enterprisewide service offering. As we work through the balance of the year and early 2021, we will be laser focused on executing the initiatives that will allow us to attack the market as one,” Hawkins said.
YRC Worldwide ranks No. 6 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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