YRC Worldwide’s revenues
In the second quarter of 2017, YRC Worldwide (YRCW) reported revenues of $1.26 billion, a 4.4% rise from $1.2 billion in 2Q16. However, it missed Reuter-surveyed analyst’s estimate of $1.27 billion by 0.80%.
The rise in revenue is mainly attributed to higher volumes and fuel surcharge revenue. In addition, the yield improvement without fuel surcharge revenues led to the rise in 2Q17 revenues.
YRC Worldwide operates two major segments: YRC Freight and Regional Transportation. The YRC Freight segment accounts for roughly 65.0% of YRCW’s total operating revenues, while Regional Transportation contributes the balance of 35.0%.
YRCW’s segmental business
YRC Freight offers a variety of services for commercial, industrial, and retail goods transportation in regional, national, and overseas markets. It provides transportation services through a mix of leased and owned equipment in the North American ground distribution network.
YRC Worldwide’s Regional Transportation vertical is comprised of Holland, New Penn, and Reddaway. The Holland service provides local next-day, expedited, and regional services. These services are offered through a 21-state network in the Southeastern United States and the US Midwest.
The New Penn service offers local next-day, time-bound, and day-definite services in the Northeastern United States, Puerto Rico, and Quebec. The Reddaway service provides local next-day and expedited services through a network spread throughout California, the Southwest, the Pacific Northwest, and the Rocky Mountain regions.
Peers’ revenues in 2Q17
President Trump’s approach of America first resulted in the bullish 2017 outlook for the less-than-truckload (IYJ) industry. In the words of Averitt Express’s COO (chief operating officer) Wayne Spain, “We’re seeing many positive indicators, including comfortable growth in the months leading up to 2017 and the reaction of markets to the new presidential administration.” Let’s see how reasonable his estimates are.
- Old Dominion Freight Lines (ODFL): $840.0 million, a rise of 11.2%
- United Parcel Service (UPS): $15.8 billion, a rise of 7.7%
- XPO Logistics (XPO): $3.8 billion, a rise of 2.2%
- Saia (SAIA): $358.2 million, a rise of 14.8%
In the next part, we’ll look at YRCW’s YRC Freight segment’s performance in 2Q17.