YRC Worldwide Profit Rises More Than Expected

YRC Worldwide Inc.'s third-quarter profit increased more than expected amid continued cost-cutting as the transportation giant seeks to turnaround operations.

The Overland Park, Kan., company has been fending off bankruptcy for years, restructuring operations and aggressively cutting debt. As of Sept. 30, it had about $1.09 billion in debt.

Shares, down 38% this year, rose 14% in late trading.

"During the third quarter of this year, we continued to stay committed to our strategy of placing pricing improvements and profitability ahead of tonnage growth," Chief Executive James Welch said.

Overall, YRC Worldwide reported a profit of $19.8 million, or 61 cents a share, up from $1.2 million a year earlier.

Operating revenue fell 5.9% to $1.24 billion, while operating expenses declined 7.6% to $1.2 billion.

Analysts surveyed by Thomson Reuters had projected a profit of 43 cents a share on $1.52 billion in revenue.

The freight division, which accounts for more than half of its revenue, reported a quarterly profit, even as revenue fell 6.4% to $789.2 million. Total shipments a day fell 7.3% while tonnage shipped fell 6.2% from the year earlier.

In 2013, YRC restructured the division, but it ran into trouble when not enough truckers relocated to the terminals where shipment volume increased as a result of the changes.

The regional transportation segment's operating income rose 38% while revenue slipped 5% as shipments fell 4.3% and tonnage declined 3.5%.

Write to Maria Armental at [e-mail]

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(END) Dow Jones Newswires

October 29, 2015 17:15 ET (21:15 GMT)

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