YRC Worldwide Shares Plunge 9% As Q2 Loss Misses Estimates, But Revenues Top

(RTTNews) - Shares of YRC Worldwide, Inc. (YRCW) plunged more than nine percent in extended trading on Thursday after the transportation company reported a loss for the second quarter that came in significantly wider than analysts' expectations.

However, net loss for the quarter sharply narrowed from last year, reflecting revenue growth amid improved shipments and revenue per shipment. Quarterly revenues also topped Street estimates by a whisker.

"During the second quarter of 2014, YRC Freight experienced a 5.6% increase in operating revenue, despite a half workday less as compared to the second quarter of 2013. The additional revenue is due to increased volumes as well as a slight gain in revenue per hundredweight," CEO James Welch said in a statement.

"However, profitability for the second quarter was negatively impacted by the network not being fully in cycle which resulted in a decrease in productivities, the re-handling of freight and less than optimal use of purchased transportation," Welch added.

The Overland Park, Kansas-based company reported a net loss of $4.9 million or $0.16 per share for the second quarter, narrower than $15.1 million or $1.72 per share in the prior-year quarter.

On average, six analysts polled by Thomson Reuters expected the company to report a loss of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated operating revenues for the quarter grew 6.0 percent to $1.32 billion from $1.24 billion in the same quarter last year, and topped four Wall Street analysts' consensus estimate of $1.31 billion by a whisker.

YRC freight revenue for the quarter grew 5.6 percent to $842.1 million, and regional transportation revenues increased 6.9 percent to $475.5 million in the year-ago quarter.

YRC freight total tonnage per day during the quarter grew 5.9 percent, total shipments per day increased 4.8 percent, and revenue per shipment improved 1.2 percent from last year.

Regional transportation tonnage per day grew 6.7 percent, shipments per day increased 6.0 percent, and revenue per shipment improved 3.2 percent from a year ago.

The operating ratio for the quarter decreased 30 basis points over the prior-year quarter to 98.5 percent, as a 110 basis points improvement in YRC Freight was partially offset by an 80 basis points decline in regional transportation.

Looking ahead, the company said its plans to convert three current terminals to distribution centers in the third quarter remain on target which it anticipates will better balance its capacity and match it to increasing demand.

YRCW closed Thursday's regular trading session at $26.18, down $0.98 or 3.61% on a volume of 1.17 million shares. The stock plunged a further $2.44 or 9.32% in after-hours trading.