GO
Loading...

UPDATE 1-Regional transport helps YRC Worldwide post profit

Thursday, 27 Feb 2014 | 10:13 AM ET

* 4th-qtr profit of $400,000 vs $35.3 mln loss year earlier

Operating revenue at regional transporters rises 10 pct

* Shares rise 11 pct

Feb 27 (Reuters) - Trucking company YRC Worldwide Inc reported fourth-quarter results that beat Wall Street estimates as operating revenue in its regional transportation business rose 10 percent, sending its shares up about 11 percent.

The company, which recently restructured its $1.36 billion debt after reaching a deal with the Teamsters Union to extend a labor contract until 2019, earned $400,000 in the quarter, compared with a net loss of $35.3 million a year earlier.

"For the first time in the last five years, we do not have the overhang of any near-term debt maturities, Chief Executive James Welch said in a statement on Thursday.

Operating revenue in its regional transportation business rose to $431.0 million in the quarter from $391.4 million a year earlier, while operating revenue at its largest subsidiary YRC Freight fell about 1 percent.

The company said distractions related to the labor contract and bad weather affected productivity at YRC Freight, while increasingly hiring third-party carriers to deliver freight.

Overland Park, Kansas-based YRC operates nationally and internationally through YRC Freight and provides regional operations through YRC Reimer, New Penn, Holland and Reddaway.

Revenue rose 3 percent to $1.21 billion for the quarter ended Dec. 31 from a year earlier.

On a per-share basis, net loss narrowed to $1.71 from $4.53 a year earlier.

Analysts on average were expecting a loss of $2.77 per share on revenue of $1.18 billion, according to Thomson Reuters I/B/E/s.

YRC's shares rose to $25.76 in morning trading.

They have risen 30 percent up to Wednesday's close since the Teamsters Union approved the revised contract last month.

  Price   Change %Change
YRCW
---