YRC Worldwide Inc. posted net income of $2.9 million, or 9 cents a share, a slight drop from $3 million, or 9 cents, in 2017, the carrier reported for the third quarter Nov. 1.1.
The Overland Park, Kan., company fell short of Wall Street expectations. Analysts were expecting earnings of 55 cents a share. However, YRC posted revenue of $1.3 billion in the period, topping forecasts of $1.29 billion.
YRC’s operating ratio for the period ending Sept. 30 worsened slightly to 96.2, compared with 95.4 last year. Operating ratio is a company’s operating expenses as a percentage of its revenue, and it is used to determine efficiency. The lower the ratio, the greater the company’s ability to generate a profit.
YRC said third-quarter tonnage per day decreased by 4% at YRC Freight and by 5% at the company’s regional segment when compared with 2017.
“I am pleased with our focused discipline on growing yield and securing the right mix for our networks while balancing our capacity constraints, minimizing third-party costs for local purchased transportation and reducing short-term rentals,” CEO Darren Hawkins said on a conference call with reporters and financial analysts.
Hawkins repeated what he said in early August — that the company is showing continued improvement, especially as it replaces hundreds of older tractors and trailers.
“The fleet is always the underlying story. We continue to make solid progress on the reinvestment for tractors and trailers in Q3; through the first nine months of 2018, we have taken delivery of more than 1,000 tractors, the majority of which benefited the YRC Freight segment and provided operational improvement in our Q3 results,” he said.
“We expect to take delivery on another 300 tractors in the fourth quarter,” Hawkins added, “which are being deployed at our largest regional carrier to offset the rise and maintenance expense. We have also taken delivery of more than 2,300 trailers with another 1,500 expected to be delivered this year.