Friday, March 27, 2015
But how long will that remain true?
The bull case for YRC
In an ideal world, YRC's huge size should bring with it revenue riches, enviable efficiencies of scale, and beaucoup profits. In reality, only one of these is true. With $5.1 billion in trailing revenues, the company is nearly as big as trucking rivals Old Dominion Freight and ArcBest Corporation combined. Yet YRC's minuscule operating profit margin (just 0.7%) is worse than either of these companies', and YRC ended 2014 in the red with an $86 million net loss.
Still, some investors see hope for the company. In a mostly positive article on YRC's "turnaround," CFO magazine praised YRC in February for engineering a return to "positive net income" in Q3 2014, "even if it was just $1.2 million and enabled by a $4.4 million net operating loss carryforward. In the fourth quarter net income climbed to $6.2 million, and full-year 2014 operating earnings surged."
Thursday, March 26, 2015
YRC Freight has been selected to receive the 2014 National LTL Carrier of the Year award from Walmart. YRC Freight was chosen for its outstanding service, effective communication, excellent safety standards, and innovative solutions. The winner is selected by Walmart's transportation executive team. This will be the third time in 5 years that Walmart has selected YRC Freight for this distinction. YRC Freight and Walmart have a long-standing partnership serving the LTL needs of one of the most sophisticated supply chains in the world.
"We are grateful that Walmart has chosen us for this prestigious award," said Darren Hawkins, President of YRC Freight. "This means a lot to us. With every shipment and every mile, our employees worked hard last year to help Walmart achieve their goals. Walmart has high expectations for safety and service and our team showed the drive and dedication to surpass those expectations 24 hours a day, seven days a week."
"Walmart takes great pride in cultivating relationships with exceptional carriers throughout the United States," said Kevin X. Jones, Vice President of Walmart Inbound Transportation. "Partnering with companies like YRC Freight is essential to accomplishing and exceeding our important goals."
YRC Freight's national network offers significant capacity and coverage to Walmart and their suppliers. YRC Freight has engineered their network to accommodate the shipping needs of companies like Walmart and their suppliers who place a high value on safety, service, communications and innovative shipping solutions.
"It really comes down to the hard work of 20,000 employees, day in and day out," said Hawkins. "It's every driver, every dock worker, every person at YRC Freight going above and beyond the call of duty to create the best possible customer experience—whether it's for one shipment or 1,000 shipments."
There may be more jobs now, but many of them don’t pay enough to support a family. While there has been no shortage of proposals or tinkering on the edges in an attempt to improve things, it’s time for policymakers to consider a new idea – it’s the economic model, stupid!
Today’s job marketplace, due in part to big businesses’ manipulation of the system, is not providing enough employment opportunities for middle-class workers. While our society has produced $30 trillion in new wealth, it has also put six million more children on food stamps. This nation cannot be satisfied with a market-based regime that supports 115,000 households in this country to earn $10 million a year but also allows 138,000 children to be homeless. That’s not the American way.
Income inequality has gripped the U.S. workforce because political leaders have embraced an economic platform that puts corporations above workers. Unions were undercut, and with that wages. But that still wasn’t enough for wealthy industrialists. The manufacturing base was forfeited to cheaper labor overseas due to devastating trade agreements that gave away jobs instead of creating them. But companies took more money to the bank.
The most recent round of elections has left workers with a diminished voice in Washington. But there is one issue that may have enough bipartisan appeal to help spur its consideration and passage – infrastructure investment. Whether it’s roads or transit or water or broadband, America needs projects that help workers and business alike. Work in all these areas has the potential to do so.
Workers can also do their part by organizing for power in the workplace. When workers stand together, they earn better pay and benefits. Don’t believe it? These Department of Labor statistics prove it. There is a reason why many workers choose to join the Teamsters and other unions. Now more need to follow that same pathway to the middle class.
On Tuesday, the Overland Park-based less-than-truckload carrier announced that its board has expanded by one member and has named Nazemetz to fill the new seat. Nazemetz, the principal of Sleepy Hollow, N.Y., consulting firm NAZ DEC LLC, was chief human resource officer at Xerox Corp. (Nasdaq: XRX) for more than 30 years. She serves on numerous medical and education boards.
According to a filing with the Securities and Exchange Commission, Nazemetz will be a director until the 2015 annual meeting on April 28. At the meeting, she will be formally nominated for election by the board for the 2015-2016 term.
Full story here..........
When YRC Worldwide was going through epic financial troubles, starting in 2008, to outside observers a perhaps unsung hero was Joe Whitsel, the company’s vice president of cash management.
With YRC at times battling to stave off bankruptcy, the daily accounts receivable inflow made the difference all too often for comfort. It became extremely crucial that everyone in Whitsel’s group understood how their roles impacted the company’s revenue collection capabilities.
As well, they needed to know exactly where the company stood with respect to days sales outstanding (DSO) and the weighted average days to pay vendors. It was also a high priority for the group to make sure the sales and finance teams understood those metrics too.
Full story here.......
Wednesday, March 25, 2015
“We’re going to onboard a lot of new equipment,” Welch told the more than 200 shippers, brokers and truckers at the event. “We’re going to spend as much money as we can generate on buying new equipment over the next several years.” YRC Worldwide is leasing equipment, rather than buying it outright, a strategy it has pursued over the past couple of years as the company battles to narrow its losses. With the U.S. economy growing more steadily, and its bottom and top lines improving, YRC Worldwide is reinvesting in its assets.
In its fourth-quarter earnings conference call, CFO Jamie Pierson said YRC Worldwide plans to bring 600 new Class 8 tractors onboard in the first half of 2015, and noted the LTL operator was trading in the power units that had racked up the most mileage. That addressed concerns raised by analysts about the advanced age of some YRC Worldwide trucks.
Monday, March 23, 2015
Holland's involvement in Women in Trucking and the March event underscore the company's ongoing efforts to encourage women to explore the opportunities for interesting, well-paying careers as professional drivers. Visit Holland at booth #63025 during the Mid-America Trucking Show, March 26-28.
"We already have dozens of women behind the wheel, serving customers as both city and over-the-road drivers at terminals throughout our network," said Steve Blubaugh, Holland's Vice President of Human Resources. "These professionals prove every day that being a driver can be a satisfying career choice for both women and men. We are always eager to speak with potential new employees, both female and male, who are able to meet our high standards for safety, service and reliability. I hope our involvement with the Women in Trucking organization encourages more women to consider careers as professional drivers--and specifically, drivers for Holland--as a career option."
Holland partnered with Women in Trucking to help overcome the misperception that women can't perform the duties of a professional driver. Through its outreach, education and events like "Salute to Women Behind the Wheel," WIT is playing an important part in encouraging many talented and capable women who are interested in driving to pursue that interest.
"Opportunities for women have never been better than they are now," said Chastity Troyer, Holland's recruiting manager. "Transportation companies like Holland are eager to find new, qualified drivers to add to our team. Working together with Women in Trucking, we will continue to remove the obstacles faced by women who would like or want to pursue a career in trucking."
The "Women Behind the Wheel" event at MATS is open to all women drivers holding valid commercial operator's licenses. The event will recognize the service provided to the industry by professional female drivers.
Watch a video featuring Holland driver Melody Clark, as she talks about why she chose a career in trucking and what she does each day on the job. For more information about Women in Trucking, visit womenintrucking.org.
Now, the 71-year-old says as much as $2,000 of his monthly check is at risk because of legislation passed by Congress last year that is meant to help underfunded multiemployer pension plans bolster their finances by giving them a way to cut benefits for some retirees.
“We definitely will have to adjust our lifestyle,” he said of him and his wife if there is a cut that big. “We have ongoing and increasing medical expenses. It could be catastrophic just from the respect of the money we contribute to charity and church (and) money we contribute to our grandkids for their future education.”
Wyatt, of Washington Court House, said he doubts many other retirees are aware of the risk to their pension as a result of the legislation passed in December as part of a spending bill meant to run the federal government through the rest of its fiscal year.
The legislation affecting the retirees was added at the last minute. It is targeted at companies that enter into pension plans with other companies.
There are about 10 million workers and retirees in 1,400 multiemployer plans, according to the Pension Rights Center in Washington.
Full story here..............