YRC Worldwide's first-quarter loss widened as the trucking company reported weaker productivity, higher expenses and harsh winter weather.
"This was one of the worst winter seasons in my more than 30 years in trucking. We estimate that it negatively impacted our operating income by approximately US$20 million. The main culprits were lower volumes, decreased productivities and higher use of purchased transportation," YRC Worldwide CEO James Welch said, reported Dow Jones Newswires.
YRC Worldwide reported a net loss of $70.2 million, or $3.95 per share compared with a year-earlier net loss of $24.5 million or $2.93 per share.
Revenue increased 4.13 percent to $1.21 billion.
Analysts polled by Thomson Reuters expected per-share loss of $1.12 and revenue of $1.17 billion.
Prompted by continuing losses at its freight division, YRC Worldwide engaged in a major restructuring of the division earlier last year. The restructuring included consolidating end-of-line terminals and reducing distribution center locations. However, the new measures didn't prove efficient, as not enough truckers relocated to terminals where freight volume increased, resulting in a driver shortage and shipment delays among other issues.
For the first quarter, the freight division reported swinging to a loss of $32.5 million, compared with a year-earlier profit of $2.4 million. Operating revenues from the division were flat at $756.8 million.
Operating revenue from the company's regional transportation improved 11 percent to $454.1 million.
In February, YRC Worldwide announced it refinanced more than $1.4 billion in debt following negotiations with creditors and after winning approval from its union employees to extend their contract.
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