YRC Worldwide Inc., the biggest U.S. trucking company, reported lower earnings despite a sharp rise in revenue for the 2006 first quarter.
For the three months ended March 31, Overland Park-based YRC reported earnings of 71 cents a share, slightly above the company's revised forecast of 65 cents to 70 cents made March 22. Citing higher costs at one of its trucking units and soft retail business, YRC lowered its first-quarter projection from the initial $1 to $1.05 a share.
Net income for the quarter was $42.14 million on $2.37 billion in revenue. During last year's first quarter, YRC earned $49.89 million, or 96 cents a share, on $1.68 billion in sales. The 2005 first quarter does not include the results of USF Corp., which YRC acquired in May.
Bill Zollars, YRC's chairman and chief executive, said the company's performance was not what had been expected, despite the stronger revenue in all areas of the company.
"Given the first quarter, we have taken aggressive steps to improve our financial performance going forward," Zollars said in a statement.
Zollars has said that cost-savings generated by the company's acquisition of Roadway Corp. and USF would will stimulate earnings growth as integration proceeds.
YRC's future earnings forecasts indicate that the first quarter is expected to only be a bump in the road. For the second quarter, the company is projecting earnings of $1.45 to $1.50 a share, which would be up over the 2005 second quarter's earnings of $1.39 a share.
For the year, YRC expects to earn between $5.65 and $5.85 a share, which would be an increase over 2005's earnings of $5.07 a share.
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