Sunday, November 19, 2017
The Teamsters Union strongly supports legislation introduced today by Sen. Sherrod Brown (D-OH) and Rep. Richard Neal (D-MA) that would establish a new agency within the U.S. Treasury Department authorized to issue bonds in order to finance loans to pension plans in financial distress.
The “Butch Lewis Act of 2017,” named after a Teamster retiree leader who passed away two years ago, would provide a path to fixing the country’s growing pension crisis by providing the financial support the plans need to avoid insolvency. Teamsters General President Jim Hoffa expressed the union’s full support in a video statement.
“The Teamsters Union proudly endorses the Butch Lewis Act without any reservations,” Hoffa said.
“Between the hard work of Sen. Brown and Rep. Neal’s offices and our Teamster pension task force, I believe we have found a solution to this very difficult challenge.”
The agency, named the Pension Rehabilitation Administration (PRA), would provide these loans to “critical and declining” multiemployer pension funds. The loan terms will require plans to make interest payments for 29 years with final interest and principal repayment due in year 30.
“This is a plan that will work,” Brown said. “This is a plan that will work without cuts.”
“Americans who worked hard their entire lives and planned for secure retirements should not have the rug pulled out from under them,” Neal said. “With this bill, we responsibly shore up multiemployer pension plans and guarantee retirees the full benefits they earned.”
Rita Lewis, the widow of Butch Lewis, spoke passionately about the four-year fight her husband led to save the pensions of thousands of active and retired Teamsters in the Central States Pension Fund.
“No one should have to suffer through the past four years of stress,” Lewis said. “This bill must be passed by the end of the year – this is not a partisan issue. We’ve been held hostage long enough. A promise is a promise is a promise.”
Financial problems have left the pension plan severely underfunded and could force cuts in pension payments to hundreds of thousands of retirees nationwide.
Sponsors of the bill, including Reps. Debbie Dingell of Dearborn and Dan Kildee of Flint Township, say the legislation would shore up the Central States Pension Fund and 200 other multiemployer pension plans in danger of insolvency in the next 10 years.
The Rehabilitation for Multiemployer Pensions Act would create a new office in the U.S. Treasury Department to issue bonds to finance loans to distressed pension plans, allowing them to remain solvent and continue to provide benefits for retirees and workers.
“The No. 1 thing is there would be no cuts for workers,” Dingell said in an interview. “They put their money in for a lifetime. Can you imagine what it’s like to work a lifetime, live by the rules, get to your 70s and suddenly have no retirement security?”
Dingell said she hopes to convince some Republican colleagues to sign onto the bill, increasing its chances of getting a vote on the House floor.
Last year, the Treasury Department rejected a Central State Pension Plan proposal that would have cut retiree benefits by as much as 70 percent, affecting an estimated 273,000 retirees.
Treasury rejected the proposal based on a review by outside attorney Kenneth Feinberg, a victim compensation expert, who concluded the plan didn’t demonstrate how the reductions would keep the pension plan from becoming insolvent or show they were being equitably distributed.
The lead sponsors of the legislation are Democratic Rep. Richard Neal of Massachusetts and Sen. Sherrod Brown of Ohio.
Monday, November 13, 2017
ABF Freight, the less-than-truckload carrier operated by ArcBest, announced that ABF and the Teamsters National Freight Industry Negotiating Committee (TNFINC) have agreed to exchange initial proposals on December 18 and 19, 2017, and begin negotiations on a new collective bargaining agreement the week of January 7, 2018.
TNFINC is the negotiating committee of local unions that are affiliated with the International Brotherhood of Teamsters. ABF Freight is the largest subsidiary of ArcBest and was founded in 1923.
“We look forward to working with the Teamsters’ leadership to reach a new collective bargaining agreement that appropriately reflects the competitive environment in which we operate,” said ABF Freight President Tim Thorne.
The current collective bargaining agreement, known as the ABF National Master Freight Agreement, expires at midnight on March 31, 2018. It covers approximately 8,600 ABF Freight Teamster employees in various locations across the United States, including road drivers, city drivers, dockworkers, mechanics and clerical personnel.
Monday, November 06, 2017
At a news conference Monday in Youngstown with Rep. Tim Ryan, D-Niles, Brown said he wants Congress to create a new federal office that would allow no fewer than seven pension funds in the state to borrow enough money to remain solvent and continue providing pensions for retirees.
The office, which would be called the Pension Rehabilitation Fund and placed inside the U.S. Department of Treasury, would supervise the loans which would come from the sale of U.S Treasury bonds from private investors. Brown, D-Ohio, hopes to attach the bill to a larger spending bill expected to be passed at the end of the year by Congress.
“All of you here today and the thousands of retired Teamsters, miners, builders, and others across Ohio earned your pensions over a lifetime of hard work,” Brown said.
“Now those pension plans are underwater,” Brown said. “It’s bad enough that Wall Street squandered workers’ money — and it’s worse that the government that’s supposed to look out for these folks is trying to break the promise made to these workers.”
“Not on our watch,” Brown said. “We won’t allow that to happen.”
Ryan said, “We in Congress must do everything in our power to protect the retirement these Americans have earned.”
Most of those impacted are Teamsters covered by the Central States Fund, a multi-employer fund that serves trucking companies and covers 400,000 retirees across the country. Central States has warned it might have to cut pensions by an average of 22 percent for retirees because it has $35 billion in liabilities and just $17.8 billion in assets.
But, the bill also is aimed at propping up a number of other pension funds, including the United Mine Workers Pension Plan, the Ironworkers Local 17 Pension Plan, the Ohio Southwest Carpenters Pension Plan and the Bakers and Confectioners Pension Plan.
Brown’s bill is considered a more realistic approach than one he co-sponsored in 2015 with by Sen. Bernie Sanders, a Vermont independent, who wanted to prop up the plans by closing loopholes in the estate tax and ending a tax break on the sale of art. That bill had no chance of congressional approval.
Saturday, November 04, 2017
UPS earned $1.26 billion during the period ended Sept. 30, compared with $1.27 billion the year before. On a per-share basis, income rose a penny to $1.45 because there were as much as 12 million fewer shares outstanding than a year ago due to company buybacks.
Revenue grew 7% to $16 billion, surpassing a $15.6 billion forecast.
“Our e-commerce and cross-border solutions helped UPS deliver strong revenue growth of 7% on a 4.6% increase in daily shipments. In the U.S., increasing demand for UPS Next Day Air and Ground products drove revenue growth,” said David Abney, UPS chairman and CEO.
“Focus on fundamentals, combined with the benefits of recent investments produced good results, especially when you consider the unexpected headwinds we faced,” he said.
Atlanta-based UPS ranks No. 1 on the Transport Topics list of the top 100 for-hire carriers in North America.
UPS announced that it would raise rates 4.9% on UPS Ground, UPS Air, UPS Air Freight and international services, effective Dec. 24, matching similar announcements from leading less-than-truckload carriers such as Old Dominion Freight Lines.
UPS also plans to hire 95,000 seasonal employees for the holidays and highlighted that over the last three years about 35% of those workers get offered permanent jobs.
In the UPS Domestic Package segment, revenue grew 3.9% to $9.6 billion, but operating income slipped 5.6% to $1.2 billion. The division, which includes UPS Next Day Air, UPS Ground and UPS Deferred, saw a 3.4% increase in volume to 15.9 million packages and a 2% price increase to $9.64. The company blamed lower profits on a $50 million financial hit from natural disasters and $40 million for construction of new buildings and “deployment of Saturday operations.”
UPS Chief Financial Officer Richard Peretz attributed the $50 million to the recent hurricanes in Texas and Florida and the wildfires in California.
The UPS International Package division, which has fueled growth in recent quarters, continued to record a strong performance this time around, too. Revenue climbed 11% to $3.4 billion and operating income expanded 8.9% to $627 million. Exports generated the best results in the international division with a 12% hike in revenue to $2.6 billion on a 19% increase in volume to 1.4 million packages. International Domestic daily shipments increased 5.7%, led by double-digit growth across several European countries.
UPS also highlighted a joint venture with SF Express, a small-package carrier in China. Regulators in China recently approved the partnership, opening up the large population to the UPS International network.
“We were excited that we did get approval in a timely fashion. It’s so important because there are so many opportunities between China and the United States,” Abney said.
UPS also received two Boeing 747-8 aircrafts in October with a third scheduled to be delivered in late November, planes that will be used for Trans-Pacific shipments.
The UPS Supply Chain Solutions and UPS Freight segment also produced significant growth during the quarter, outpacing all other divisions on a percentage basis. Revenue grew 13% to $3 billion and operating income climbed 9.7% to $22 million.
The segment encompasses the third-party logistics operations, including freight broker Coyote Logistics, and the less-than-truckload business.
UPS Supply Chain Solutions grew revenue 15% year-over-year to $2 billion and UPS Freight revenue improved 11% to $778 million.
Within UPS Freight, less-than-truckload revenue increased 9.3% to $673 million and total shipments rose 1.5% to 2.6 million. Weight per LTL shipment also grew 3.9% to 1,062 pounds and revenue per 100 pounds of freight rose 3.6% to $24.47.
UPS slightly raised full 2017 earnings per growth forecasts a nickel on the low end to $5.85 to $6.10.
Abney made a brief mention of the ongoing talks with the International Brotherhood of Teamsters on a new contract covering package and freight employees. The current five-year collective bargaining agreement expires July 31, 2018. Formal negotiations will officially begin in January.
“We’ve worked with the Teamsters for more than 80 years with the objective of providing industry-leading service to our customers, so we can create new jobs and reward employees for contributing to the company’s success. We expect the negotiations to move forward in a constructive matter,” Abney said.
Every new Class 8 tractor purchased by UPS since 2015 has been outfitted with the technology, which features blind spot alerts, lane departure alerts, electronic stability control and automatic brake application with forward collision warnings.
The company announced that it would expand its use of advanced collision mitigation technology to an additional 5,700 existing tractors. When the expansion is complete, UPS will have more than 11,000 Class 8 tractors outfitted with the technology.
“UPS has some of the safest drivers on the road, and some of our best drivers have told us that collision mitigation systems help make them even better drivers,” Carlton Rose, the president of global fleet maintenance and engineering at UPS, said. “This investment is indicative of UPS’s commitment to the safety of our employees, their families, our customers and the motoring public.”
The collision mitigation technology package will supplement pre-existing safety features on the vehicles like adaptive cruise control that slows the vehicles to help avoid collisions and promote fuel economy.
“As truck drivers, we all know the right side of our vehicle is our largest blind spot,” John McKown, a UPS Freight driver and captain of American Trucking Association’s America’s Road Team, said.
“Now we have technology that watches this every second of the day. Initially, I thought the blind spot alarms would be an annoyance, but now that I’ve driven with this technology I’ve become a believer."
"Words can’t describe how much I appreciate UPS’s commitment to safety and investing in this technology.”
Increased revenue and profit in Asset-Based services positively impacted by improved pricing
Third quarter Asset-Light revenue increase and operating income improvement impacted by positive Expedite trends
ArcBest reported third quarter 2017 revenue of $744.3 million compared to third quarter 2016 revenue of $713.9 million. Third quarter 2017 operating income was $24.3 million compared to operating income of $20.4 million last year. Net income of $14.8 million, or $0.56 per diluted share, compared to third quarter 2016 net income of $12.9 million, or $0.49 per diluted share.
Excluding certain items in both periods as identified in the attached reconciliation tables, non-GAAP net income was $15.5 million, or $0.59 per diluted share, in third quarter 2017 compared to third quarter 2016 net income of $12.6 million, or $0.48 per diluted share. On a non-GAAP basis, operating income was $27.0 million in third quarter 2017 compared to third quarter 2016 operating income of $21.7 million. Cost controls resulting from the enhanced market approach implemented at the beginning of the year continue to be in-line with expectations.
“Our enhanced market approach, tighter capacity and a generally favorable pricing environment all contributed to improved third quarter results,” said ArcBest Chairman, President and CEO Judy R. McReynolds. “Our expedited business was particularly strong, and on the asset-based side, we continue to make progress on the implementation of our space-based pricing initiative, which took effect August 1. While we experienced some negative effects in our asset-based business from hurricanes in the southern U.S. and Puerto Rico, customers seeking total logistics solutions and guaranteed capacity are increasingly looking to ArcBest to fulfill their supply chain needs.”
Full Third Quarter Results.......................
Despite the plunge in net income during the quarter, YRC Worldwide’s consolidated operating revenues ticked up 2.4 percent year-over-year to $1.25 billion, with revenues growth in both YRC Freight and the company’s regional segment.
At YRC Freight, tonnage per day rose 0.7 percent from the third quarter of 2016, while revenue per hundredweight rose 3.4 percent, and revenue per shipment rose 3.8 percent.
Meanwhile, YRC Worldwide’s regional segment saw tonnage per day rise 4 percent from last year’s third quarter, while revenue per hundredweight inched up 1.3 percent and revenue per shipment increased 4.1 percent.
As of Sept. 30, YRC Worldwide’s outstanding debt totaled $962.4 million, down from $1.06 billion for the third quarter of 2016.
“This month, YRC Freight is implementing a significant change of operations that includes transitioning eight terminals to regional distribution centers, which is expected to help strengthen customer service and reliability while adding capacity and reducing cost within its network,” YRC Worldwide CEO James Welch said.
Looking ahead, Welch said, “We believe YRC Freight, Reddaway, Holland and New Penn will be positioned for tighter capacity due to the recovery and restoration efforts from the hurricanes and the ELD mandate.”
Full Third Quarter Results....................
Monday, October 30, 2017
The Company is also providing preliminary financial results for third quarter 2017.
The primary factors contributing to the update include:
The occurrence of significant weather during the third quarter 2017;
A shortage of revenue equipment;
Higher than expected purchased transportation expense;
Higher than anticipated maintenance expense;
Higher than expected employee overtime; and
Underperformance by one of the Regional operating companies.
"We are updating the financial projections now that we have a preliminary view of our third quarter 2017 results," said James Welch, chief executive officer of YRC Worldwide. "Hurricanes Harvey and Irma impacted operations at YRC Freight and Holland during the third quarter leading to the temporary closing or limited operations at 28 terminals. The hurricanes also had a cascading effect on the networks that delayed the delivery of shipments and unfavorably impacted productivity over roughly a five-week period. Additionally, we incurred costs associated with relocating revenue equipment to the impacted facilities as well as incurring employee overtime in order to properly initiate recovery efforts in response to these extraordinary weather events. While it is difficult to fully quantify the lost revenue and incremental costs associated with these natural disasters, they have had an unfavorable impact on our results. As we move into 2018, we expect the recovery and restoration efforts to contribute to an already positive economic environment.
"We have also been adversely impacted by higher than expected purchased transportation expense in the third quarter primarily attributable to a shortage of revenue equipment. The impact has been more acute as capacity has tightened more quickly than anticipated across the trucking sector. The shortage of revenue equipment has led to higher than expected local purchased transportation and short-term rental expense and an increase in maintenance expense on the existing fleet. The onboarding of new revenue equipment in 2017 has been weighted towards later in the year as the Company focused on successfully amending and extending the term loan. We expect to take delivery of more than 800 new tractors and 2,400 new trailers in fourth quarter 2017 and first quarter 2018 which we anticipate to help mitigate the increase in purchased transportation and maintenance expense.
"Finally, we recently named Howard Moshier as President of New Penn. He most recently served as Senior Vice President of Operations at YRC Freight and we look forward to working with him in his new capacity. We continue to believe in the strength of New Penn and in its reputation for exemplary customer service," concluded Welch.
For the three months ended September 30, 2017, the Company expects to report consolidated operating revenue of approximately $1.25 billion and consolidated operating income of approximately $40 million. The Company also expects to report Adjusted EBITDA of approximately $81 million.
For full-year 2017, the Company continues to project consolidated operating revenue of approximately $4.8 billion to $5.0 billion. The projected full-year 2017 consolidated projected operating income has been lowered from approximately $150 million to $170 million to approximately $100 million to $120 million. The Company also lowered the projected Adjusted EBITDA from approximately $320 million to $340 million to approximately $280 million to $300 million. Investment in capital expenditures and new operating leases for revenue equipment continues to be projected to equal 6% to 8% of operating revenue in 2017.
At a park in the Bahama Village neighborhood of Key West, the fact that it’s 90 degrees and humid isn’t discouraging Teamster members and their community partners from unloading a packed freight truck. Time is of the essence, and nobody can wait for the sun to go down.
“When people see a trailer coming in here, you see a look of surprise and pure happiness on people’s faces,” said Stefan McLane, a member of Local 769 in Miami who drove down the truck from Port Everglades. “We are happy to have such a great relationship with these communities, so we don’t mind sharing. Teamsters are hardworking and grateful people. Whatever we can do when the times call for it, let’s go out and do it, because that’s what being a Teamster is all about—helping each other out, building each other up, and being stronger together.”
The bustle of activity seems of out of place in the otherwise placid atmosphere of the South Florida island chain following Hurricane Irma. While it seems oddly quiet, there are vulnerable people on Key West, and they are in desperate need of supplies.
Zack McCart is a Local 769 Shop Steward at UPS, and a Key West resident. The Florida Keys were evacuated before the hurricane hit, and he’s been taking a lead on helping his coworkers re-adjust to life on the island since they’ve returned.
“When we came back, it was just pure devastation,” McCart said. “Some houses just weren’t there anymore. There were trailers blown over, trees blown over, boats blown over, it was crazy. This is the worst it’s been in a long time.”
David Renshaw, Business Agent for Local 769, led a team of volunteers in a housing complex a few blocks from the park. They canvassed the apartments, delivering hot meals, water, and toiletries to the elderly residents.
“The Keys will rebound and rebuild, but right now we’re looking to give people here a quick stepping stone to be headed in the right direction,” Renshaw said. “We’ve had all sorts of people come out to assist, even some of retirees are out here delivering these supplies. I know that this will only bring people closer together with the continued involvement of our labor union.”
John Bellera has been a Key West resident for over 30 years, and he was thrilled that the Teamsters were in his community handing out food, water, and other items at a time when he otherwise would be unable to get them.
“All the local greenery is gone, and things here look like the dark side of the moon now, but the people here are wonderful,” Bellera said. “I was a union member before I retired, and they took care of me. They paid for my kids to go to the doctor, they paid for us to go to the dentist, and they paid for us when we got sick. It’s the best thing that ever happened to this country.”
In a big victory against “right to work for less,” 100 percent of the ABF Freight System bargaining unit members at the Memphis, Tennessee terminal have signed up as members of Teamsters Local 667.
“The last worker had been holding out but thanks to the efforts of his coworkers he is now a member, making the unit of about 90 drivers, dockworkers and office staff 100-percent Teamsters,” said James Jones III, President of Local 667 in Memphis. “I am proud of all our ABF Teamsters. This is a great feat in our union’s fight against ‘right to work for less.’”
The victory at ABF in Tennessee, a “right to work” state, comes as the workers prepare for negotiations for the ABF National Master Freight Agreement (NMFA) and regional supplemental agreements.
“By being 100 percent Teamsters, this gives all our ABF workers a stronger voice on the job,” Jones said. “With all the anti-worker, anti-union forces we are up against, we need to organize and build Teamster power.”
In the wake of the victory at ABF, Local 667 is launching a campaign to fully organize other work locations. The effort is called “The race to 100.”
“To many workers, the benefits of being members may not immediately be obvious, but we plan to educate our members about the importance of joining the union and building worker power,” Jones said. “This is all about fighting for a more secure future for our members and their families.”
"I am proud of my coworkers for all being united and strong here at ABF," said Bob Watkins, chief steward. "Together, we can work as one group and have a stronger voice to address the issues that matter to all of us."
Saturday, September 02, 2017
Workers at multiple locations across the nation “marched on their bosses,” delivering a clear message to management and demands that XPO Logistics, Inc. bargain their contracts in good faith without delays. They also want the company to respect the rights of its workers to organize and form a union without intimidation or harassment.
“As Americans get ready to celebrate Labor Day, the XPO workers’ actions today remind us that the long, hard struggle for workers’ rights is far from over,” Teamsters General President Jim Hoffa said. “XPO continues to be the poster child of corporate greed, spending hundreds of thousands of dollars on union busters while outsourcing and eliminating jobs and cutting workers’ benefits. At the same time, CEO Bradley Jacobs continues to enrich himself with a huge stock bonus and a 481 percent wage increase while workers continue to be squeezed.”
“The workers who took part in today’s actions recently voted to form their union as Teamsters and they are standing up to XPO’s anti-worker, anti-union tactics,” said Ernie Soehl, Director of the Teamsters National Freight Division. “Our campaign continues to gain momentum as XPO profits on the backs of its workers.”
XPO workers worldwide are standing up and coming together to expose XPO and Jacobs as the exemplars of corporate greed in the U.S. This Labor Day, freight, warehouse and port workers in the U.S. are joining together with XPO coworkers around the globe to show XPO Logistics and CEO Jacobs that the company’s anti-union, anti-worker stance will not be tolerated.
YRC - MR-CO-01-08/2017
YRC - MR-UE-01-08/2017
ABF Survey Flier
Thursday, August 03, 2017
YRC Worldwide Inc. reported consolidated operating revenue for second quarter 2017 of $1.261 billion and consolidated operating income of $50.0 million, which included a $1.0 million gain on property disposals. As a comparison, for the second quarter 2016, the Company reported consolidated operating revenue of $1.208 billion and consolidated operating income of $57.2 million, which included an $11.1 million gain on property disposals.
In July 2017 the Company completed an amendment to extend the maturity of its Term Loan Credit Agreement from February 2019 to July 2022.
On a non-GAAP basis, the Company generated consolidated Adjusted EBITDA of $91.1 million in second quarter 2017 for an Adjusted EBITDA margin of 7.2% compared to $91.4 million and 7.6%, respectively, in the prior year comparable quarter (as detailed in the reconciliation below).
Last twelve month (LTM) consolidated Adjusted EBITDA is $277.5 million for an Adjusted EBITDA margin of 5.8% compared to $319.4 million and 6.8%, respectively, in 2016.
The total debt-to-Adjusted EBITDA ratio for second quarter 2017 was 3.61 times compared to 3.32 times for second quarter 2016.
Reinvestment in the business continued during second quarter 2017 with $22.7 million in capital expenditures and new operating leases for revenue equipment with a capital value equivalent of $6.9 million, for a total of $29.6 million.
The consolidated operating ratio for second quarter 2017 was 96.0 compared to 95.3 for the same period in 2016. The operating ratio at YRC Freight was 96.5 compared to 96.2 in the second quarter 2016 which included an $11.2 million gain on property disposals. The Regional segment's second quarter 2017 operating ratio was 94.6 compared to 93.2 in the prior year.
Second quarter 2017 tonnage per day increased 2.7% at YRC Freight and 3.6% at the Regional segment compared to second quarter 2016.
At YRC Freight, excluding fuel surcharge, second quarter 2017 revenue per hundredweight increased 1.1% and revenue per shipment was essentially flat with a decrease of 0.1% when compared to the same period in 2016. Including fuel surcharge, revenue per hundredweight increased 2.2% and revenue per shipment increased 1.0%.
At the Regional segment, excluding fuel surcharge, second quarter 2017 revenue per hundredweight increased 0.2% and revenue per shipment increased 1.9% when compared to the same period in 2016. Including fuel surcharge, revenue per hundredweight increased 1.3% and revenue per shipment increased by 3.0%.
Liability claims expense decreased by $6.3 million primarily due to certain prior year claims that unfavorably impacted second quarter 2016.
At June 30, 2017, the company had cash and cash equivalents and Managed Accessibility (as defined in the company's most recently filed periodic reports on Forms 10-K and 10-Q) under its ABL facility totaling $253.4 million compared to $278.8 million as of June 30, 2016.
For the six months ended June 30, 2017, cash provided by operating activities was $38.4 million compared to $47.5 million for the six months ended June 30, 2016.
"Following a couple of challenging quarters, the second quarter 2017 results include our efforts to return YRC Freight's year-over-year revenue per hundredweight, excluding fuel surcharge, to positive territory," said James Welch, chief executive officer at YRC Worldwide. "The consolidated quarterly results were also favorably impacted by our plan to streamline overhead costs, an increase in volume driven by an improving industrial economy and a decrease in liability claims expense. These factors helped offset contractual wage and benefit increases to deliver consolidated Adjusted EBITDA results that were consistent with last year. We continue to believe the fundamentals of our business remain intact and are improving," stated Welch.
"As we look to the second half of 2017, we expect that meeting our customers' needs, pricing for profitability and diligently managing costs should contribute to improved year-over-year financial performance. The industrial economy appears to be moving forward at a moderate pace and we continue to see signs of a stable pricing environment in the less-than-truckload sector.
"We constantly look for opportunities to enhance the Company's long-term success and last month we took another step in that direction when the term loan was amended to extend the maturity from February 2019 to July 2022. We were able to utilize our strong liquidity position to retire a portion of the term loan in conjunction with the refinancing amendment and reduced the outstanding balance to $600 million," concluded Welch.
Key Segment Information - second quarter 2017 compared to second quarter 2016
Tuesday, August 01, 2017
The following is a statement by Teamsters General President James P. Hoffa on the approval of legislation by the House Energy & Commerce Committee yesterday that would begin the process of streamlining rules around the testing and development of certain autonomous vehicles.
“The Teamsters Union will continue working with lawmakers to improve the initial legislation that was recently passed out of the House Energy & Commerce Committee. Much work remains to be done and the bill faces a long path forward where numerous issues must be addressed. However, the Teamsters commend the committee and members of Congress for recognizing that a starting point for any discussion on this subject was that no legislation should impact commercial motor vehicles or traditional commercial drivers.
“The wide range of issues that are inherent with vehicles used for commercial purposes warrants an entirely separate discussion and one that the Teamsters will be at the center of. Congress has wisely recognized that any such dialogue is entirely premature and must be done gradually, in the public view, and with the full engagement of all stakeholders. The millions of workers who make their livelihood in these industries will have an active role to play in shaping the future of their jobs and their industries. It is vital that Congress ensure that any new technology is used to make transportation safer and more effective, not used to put workers at risk on the job or destroy livelihoods and chip away at the middle class.”
Holland, a leader in Central and Southeastern next-day delivery, has been named 2017 LTL Carrier of the Year by True Value, one of the world's largest retailer-owned hardware cooperatives. Holland received this inaugural award at the carrier conference held at True Value headquarters in Chicago on June 28.
"Our entire team is honored to receive this distinction from True Value and Holland is proud to be its most trusted LTL transportation partner," said Holland Senior Vice President of Sales and Marketing Jim Ferguson. "Striving to meet and exceed our customers' expectations is always our main goal and this award motivates us to continue providing our best to all of our customers."
The winner was selected based on the following categories: claims ratio, on-time service, customer service and communication, and positive comments on the monthly feedback sheets.
"As our financial performance has improved in recent years, we reduced our debt to the lowest level in more than a decade while at the same time reinvesting back into the Company," said James Welch, chief executive officer of YRC Worldwide. "Extending the term loan is an important step as we continue to position the Company for long-term success. We believe it is prudent to take the refinancing risk off the table before the term loan matured in early 2019, to focus on executing operationally and improving our financial results. We plan to continue evaluating additional opportunities to strengthen the Company for our customers, employees and investors," concluded Welch.
In addition to the extended maturity, the most substantial changes as a result of the amendment are:
A reduction of the outstanding principal to $600 million following a $35.2 million payment at the time of closing the amendment;
An increase in the annual amortization from 1% ($7 million) to 3% ($18 million);
An increase in the interest rate from LIBOR + 750 basis points to LIBOR + 850 basis points; and
If the Company's Contribution Deferral Agreement notes are not extended to at least late October 2022, the term loan maturity will be reset to within 60 days before the CDA's scheduled maturity.
"Extending the maturity of the term loan and reducing the outstanding principal considerably strengthens our capital structure," said Stephanie Fisher, chief financial officer of YRC Worldwide.
"With the successful extension of the term loan, we have met the conditions for extending the maturity of our asset based loan facility from February 2019 to June 2021. I would like to thank our lenders who have been supportive of our long-term vision for the Company," concluded Fisher.
Second Quarter 2017 Earnings Conference Call
On Thursday, August 3, 2017, at 4:30 p.m. ET, company executives will host a conference call with the investment community to discuss second quarter 2017 financial results. Second quarter earnings will be released the same day, Thursday, August 3, 2017, following the close of the market.
The call will be webcast and can be accessed live or as a replay via YRC Worldwide's website www.yrcw.com.
ArcBest said its second-quarter revenue was $720.3 million, up from $676.6 million in the same quarter this past year. ArcBest had reported a first-quarter loss of $7.4 million in May.
"We are pleased to see improved results in the second quarter," said Judy McReynolds, who is CEO and president at ArcBest.
The company reported revenue for ABF Freight, its asset-based freight business, was $514.5 million, an improvement from $486.2 million in the same quarter a year ago. Total shipments increased 3.5 percent to 1.37 million in the quarter, compared to 1.32 million a year ago.
Overall tonnage shipped dropped slightly but tons of shipments per day increased slightly because ArcBest billed one less half-day during the quarter.
ArcBest's consolidated asset-light division — formerly known as Panther Premium Logistics, ABF Logistics and ABF Moving — reported revenue of $175.9 million, up from $154.3 million in the second quarter of 2016. The asset-light maintenance division, FleetNet, reported revenue of $36.5 million, down from $41.7 million a year ago.
The total quarterly revenue for ArcBest's asset-light divisions was $212.4 million, up from $196.1 million a year ago.
ArcBest reported a 14.3 increase in revenue per shipment and a 4 percent increase in shipments per day in Expedite service. The company reported a 6.8 percent increase in revenue per shipment and 17.7 percent increase in shipments per day in its Truckload and Dedicated Truckload segments.
YRC Freight, the long-haul unit of less-than-truckload carrier YRC Worldwide Inc., is planning to add eight distribution centers (DCs) to its network, according to a proposal made public today. The additional DCs would handle 7,000 daily shipments that will be redirected from existing DCs.
Under the proposal, YRC Freight will open DCs in Columbus, Ohio; Hagerstown, Md.; Orlando, Fla.; Omaha, Neb.; Richmond, Va.; St. Louis; San Antonio, Texas; and South Bend, Ind. Once the DCs are added, Overland Park, Kan.-based YRC Freight will be operating 31 such facilities in the United States. The proposed change will add 962 dock doors to the carrier's network, it said.
YRC Freight said it regularly incurs severe backups at seven existing locations: Chicago; Charlotte, N.C.; Kansas City, Mo.; Akron, Ohio; Dallas; Indianapolis; and Harrisburg, Va. Adding the eight DCs will relieve freight-flow pressure at those facilities, especially during the hectic end-of-month and end-of-quarter periods, as well as during severe weather events, YRC Freight said in a letter to the Teamsters union dated July 25th.
Under the terms of their collective bargaining agreement, YRC Freight must inform the Teamsters of all planned operational changes. YRC Freight said it would implement the changes no sooner than Oct. 8. Although the union can offer input, there is little it can do to prevent the changes from taking place.
Below are links to the documents about both proposed changes in operations...
Wednesday, July 05, 2017
The Teamsters Union is calling for any federal legislation regarding ‘self-driving’ technology to take into account public safety and the millions of working Americans employed in transportation and related industries.
At a public hearing on Capitol Hill today, House lawmakers discussed 14 pieces of draft legislation on self-driving vehicles. The bills could be combined into a final package for introduction in the 115th Congress.
The Teamsters Union has been closely monitoring all aspects of the technology, urging lawmakers to prioritize safety and transparency in rules concerning the testing phase of self-driving vehicles. The union is calling for comprehensive federal rules regulating autonomous vehicles, including strong minimum safety standards. Under any such legislation, states and cities should retain their authority to regulate the safe operations of vehicles.
The Teamsters Union firmly believes that the interests of all stakeholders, including workers, must be taken into account by legislators and regulatory agencies as they explore and address developments in automation.
“If anyone needs to be at the table for a discussion on self-driving technology, it’s the package car driver, the longhaul truck driver and the taxi driver,” said Jim Hoffa, Teamsters General President. “We are encouraged that legislators are soliciting feedback on early proposed legislation, and we firmly believe it’s important that their constituents—and that includes Teamsters—are involved in the process and listened to throughout.”
There are currently no concrete federal laws governing automated driving technology or the testing of such technology. A number of states have enacted varying rules and guidances concerning semi-autonomous and autonomous vehicle testing.
As the rules are shaped, the Teamsters Union will be continually urging lawmakers and regulatory agencies to take a thoughtful and measured approach to ensuring safety on the roads, and hold operators testing self-driving technology to high standards of transparency and accountability.
“Federal safety laws and the laws governing our roadways have been developed over many years. We see no positive outcome that could come from any rush to implement laws due to urgency from the companies that have a profit interest in the rollout of their technologies,” said Lamont Byrd, Director of the Teamsters Safety and Health Department. “Technological advancements, like automatic braking and lane departure warnings, have helped drivers in many ways, but wholescale and expansive changes that are not properly vetted and overseen by public officials will not serve anyone when it comes to safety.”
The Teamsters believe XPO Logistics, Inc.’s stated plan to buy more companies and expand its global operations to Asia and beyond is fraught with risk because of the company’s record of integrating businesses while implementing unsustainable policies and practices that harms its workforce.
“My message to XPO CEO Bradley Jacobs is clear: before you buy up more companies in your endless zest to make even greater profits, fix the problems that are wreaking havoc on your existing workers,” Teamsters General President Jim Hoffa said. “XPO freight workers in the U.S. have lousy health insurance, no retirement security and the company spends hundreds of thousands of dollars to deny workers their federally protected right to form a union, while port drivers are illegally misclassified as independent contractors and are subject to wage theft.”
Last month, port drivers at XPO and other companies went on strike to protest the illegal misclassification and wage theft. Meanwhile, workers at six freight terminals and one warehouse have formed their union as Teamsters, despite the company spending hundreds of thousands of dollars—$3,000 per day for each union buster it hires—to stomp on workers’ rights to form their union. The company has stooped to new lows by firing three freight workers in Trenton, N.J. who supported the successful union drive at that terminal.
During recent media interviews, Jacobs said he wants to acquire more companies. However, he is facing shareholder revolts in the U.S. and in Europe. In May, a near-majority of independent shareholders opposed XPO’s “say-on-pay” measure, and in Europe an investor called for the removal of XPO executives from the board and whose minority ownership of XPO Logistics Europe may impede Jacobs’ plan for further acquisitions.
These plans are further hampered due to the company’s heavy debt load (over $5.3 billion).
Meanwhile, Jacobs has received a $20 million mega-equity and got the board to rubber-stamp a $110 million stock-bonus plan (the largest in the U.S. in 2016) for himself and a chosen few.
Saturday, June 17, 2017
More than 100 Teamsters and supporters gathered to raise questions and demand answers to serious concerns about their employer XPO Logistics outside the 3PL & Supply Chain Summit today where XPO Logistics CEO Bradley Jacobs was speaking. Representatives of workers who have chosen the Teamsters demanded that Jacobs respond to workers’ concerns about sustainability of the company, mistreatment, pay disparity, company mismanagement and many other issues.
“While Jacobs received $20 million mega-equity, got approval for a $110 million stock-bonus plan and has received a 481-percent bump in pay in recent years, workers are denied affordable health care, have no retirement security and the company is stomping on their federally protected rights to form their union,” said Ernie Soehl, Director of the Teamsters National Freight Division. “Workers have demanded a meeting with Jacobs, which is why Teamsters are here today, but Jacobs continues to refuse to meet over serious issues with workers.”
Jacobs is hosting an event at the summit and workers and representatives want real answers to serious questions. Freight workers at six XPO locations and warehouse workers at one location have formed their union with the Teamsters despite the company spending hundreds of thousands of dollars on $3,000-a-day union busters. At the ports, XPO continues to misclassify port and rail drivers, which results in massive wage theft. In response, courts have awarded drivers in the millions of dollars, with no end in sight.
XPO is ramping up its anti-worker, anti-union tactics by illegally firing three freight drivers at their terminal outside Trenton, N.J. XPO shareholders recently rebuked Jacobs when a near-majority of outside shareholders opposed his “say-on-pay” measure. Workers want to know what the XPO end game is – will Jacobs sell as he has other companies?
XPO workers worldwide, the Teamsters and European unions, as well as the courts and lenders are coming together to expose XPO and Jacobs as the exemplars of corporate greed in the U.S.
Thursday, June 08, 2017
The company is preparing a Multi-Region Network Enhancement Change of Operations and a Utility Employee Change of Operations. The company stated that it is still reviewing and finalizing the numbers and details.
In accordance with the National Master Freight Agreement (NMFA), it is expected that the company will mail the proposed operational changes to the Local Unions in early July with a hearing to be held sometime in mid- to late-August. The company anticipates an implementation date in early October.
If you have any questions, please contact the National Freight Division at (202) 624-8761.
Saturday, May 27, 2017
"Stephanie has been a key contributor on nearly every aspect of our financial operations, including our successful refinancing efforts," said James Welch, YRCW CEO. "As CFO she will continue to build on her exemplary career with YRCW."
"I want to thank James and my fellow team members at YRCW for this extraordinary opportunity," said Fisher. "I am proud of what we have accomplished and excited to be a part of the company's future as a leader in the transportation industry."
About Stephanie Fisher
Before being named CFO of YRC Worldwide, Fisher served as Acting CFO and Vice President and Controller of YRCW since January 2017, and immediately before that as Vice President and Controller of YRCW since May 2012. She joined the company in 2004 and has more than 15 years of experience in accounting, financial analysis and corporate compliance. As Controller, Fisher oversaw a wide array of financial reporting functions and played a lead role in YRCW's operational forecasting, external audit processes, investor relations, compensation and benefits.
Prior to serving as Controller, Fisher served YRCW in a variety of roles of increasing importance, including serving as Director of Financial Reporting. She began her career at the accounting firm Ernst & Young in the assurance and advisory practice, where she served clients in the retail and consumer products industries.
Fisher earned a bachelor's degree in business administration and a master of accountancy degree from Kansas State University.
Sunday, May 14, 2017
Much of the ire was directed at Bradley Jacobs, XPO's chief executive officer, who was in attendance at the meeting held at the company's headquarters here. Jacobs was on the receiving end of a recent $20 million "mega-grant," a pay giveaway that caused leading independent proxy advisor Institutional Shareholders Services (ISS) to recently issue its opposition to XPO's advisory vote on executive pay, the so-called "Say-on-Pay" vote, that was voted on today.
"It is time for XPO CEO Bradley Jacobs to explain to company workers why he is entitled to a huge payout while he cuts the health care and retirement benefits of workers who are making this company so successful," said Monica Abraham, a quality control inspector for XPO in North Haven, Conn. who spoke at the shareholder meeting. "Workers shouldn't be punished while Jacobs gets rich off our backs!"
ISS also previously recommended investors support a Teamsters-sponsored shareholder resolution calling for enhanced disclosure of XPO's human capital management performance, among other sustainability practices. Voting results on both items were not immediately made available.
Teamsters General Secretary-Treasurer Ken Hall said both proposals should be of interest to investors. "Shareholders have good reason to be concerned when it comes to excessive CEO pay and XPO's corporate practices," he said. "Its corporate practices are not in their best interests."
Meanwhile, European workers for the company said the fight against corporate greed and for fairness on the job is not only necessary for American workers. XPO is increasing engaging in anti-union worker behavior in Europe as well.
"It is ridiculous that Bradley Jacobs refuses to answer to his own employees about his company's corporate practices that imperil their livelihoods," said Sam McIntosh, a lead organizer with the International Transport Workers Federation. "European XPO workers stand in solidarity with their American compatriots because they too know the effects of the company's increasingly shady business practices."
U.S. workers have asked to meet with Jacobs on several occasions, to no avail. XPO is one of the world's largest global third-party logistics companies, providing transportation and logistical services to 63 percent of Fortune 100 companies.
The bill is co-sponsored in the Senate by Senators Tammy Baldwin (D-Wis.), Sherrod Brown (D-Ohio), Claire McCaskill (D-Mo.), Al Franken (D-Minn.), Amy Klobuchar (D-Minn.), Gary Peters (D-Mich.), Debbie Stabenow (D-Mich.) and Sheldon Whitehouse (D-R.I.).
Senators Bernie Sanders and Tammy Baldwin, joined by the International Association of Machinists and Aerospace Workers, the National United Committee to Protect Pensions and the Pension Rights Center, introduce the Keep Our Pension Promises Act. The act would reverse a provision passed in 2014 that could result in deep pension cuts for millions of retirees and workers in multi-employer pension plans.
“We have got to send a very loud and clear message to the Republican leadership in Congress and the president of the United States. When a promise is made to the working people of this country with respect to their pensions and retiree health benefits, that promise cannot be broken,” Sanders said. “If Congress could bail out Wall Street and foreign banks throughout the world, we certainly can protect the pension benefits of American workers.”
“Pensions are deferred income and retirees are owed these earned benefits. My bill with Senator Sanders ensures that we do right by our people," Kaptur said. "I thank the cosponsors of the Keep Our Pension Promises Act in the House and Senate and I urge the rest of my colleagues to come to the table and support this bill. I will fight every day to defend retirees. No matter where retirees draw their retirement, whether it is a pension, a 401k or Social Security, Americans deserve financial stability and security in their older years."
In December 2014, Congress approved and the president signed a spending bill that included provisions that allow for dramatic cuts to financially troubled multi-employer pensions. Under this provision, the pension benefits of retirees could be cut by 30 percent or more. Before the law was changed, it was illegal for an employer to cut the pension benefits retirees have earned.
The new legislation establishes a legacy fund within the Pension Benefit Guaranty Corporation to ensure that multi-employer pension plans can continue to provide pension benefits to every eligible American for decades to come. This legislation is paid for by closing two tax loopholes that allow the wealthiest Americans to avoid paying their fair share of taxes.
Sanders, Baldwin and Franken announced the legislation at a news conference where they were joined by representatives of the International Association of Machinists and Aerospace Workers, the National United Committee to Protect Pensions and the Pension Rights Center.
“It’s time for Washington to respect the hard work of American workers and make sure that the promises made to them are kept,” Baldwin said. “A secure retirement is a central pillar of economic security for our working class. The Keep Our Pensions Promise Act ends a loophole and tax break for the wealthy so we can protect the retirement security families have worked for, planned for and depend on.”
Reps. Kaptur, Debbie Dingell (D-Mich.), Rick Nolan (D-Minn.), John Yarmouth (D-Ky.) and Tim Ryan (D-Ohio) held events in their districts today in support of the plan.
Monday, May 08, 2017
The Teamsters Union opposes the American Health Care Act (AHCA) which was passed by the House of Representatives. The legislation's wholesale changes to the current system leaves working families footing the bill for corporate tax breaks while paving a path to the elimination of even basic health care for the millions of American families that need it the most.
The AHCA attacks working families who receive high-quality health care plans from their employers through a 40 percent excise tax. This "Cadillac Tax" penalizes middle class workers who have fought long and hard for the strong health care plans they receive.
"The American Health Care Act is a flawed piece of legislation that should never be made into law," said Teamsters General President Jim Hoffa. "It not only includes this destructive Cadillac Tax that targets working families, but it also allows insurance companies to discriminate against people with pre-existing conditions and charge older Americans up to five times higher premiums than younger plan holders.
"Instead of finding new ways to enrich health care providers, Congress should be working to ensure that this country provides affordable health care coverage for every American regardless of their pre-existing conditions. The AHCA will lead to only one result - higher costs for lower quality care for fewer Americans."
The Day of Action will coincide with the reintroduction of the Keep Our Pension Promises Act of 2017. KOPPA would prevent retiree pensions from being cut and would also address underfunding problems in multiemployer pension plans.
More information here.............
Plans to revamp the North American Free Trade Agreement (NAFTA), for example, could hold the key to getting hundreds of thousands of people back to work in good-paying jobs. With Senate confirmation of Robert Lighthizer as the next U.S. Trade Representative imminent, as well as President Trump’s announcement that he has reached an agreement with Mexican President Nieto and Canadian Prime Minister Trudeau to begin the process of renegotiation, changes to NAFTA will be coming soon. This is a complicated deal that must be looked at carefully to ensure the right fixes are made.
To that end, “NAFTA 2.0” must address the failures of the current agreement. That means curtailing the dangerous problem of Mexican-domiciled trucks being allowed to cross the U.S. border without concern to whether they are following our laws. Changes must be made that would require foreign-based vehicles and drivers entering this country to meet our highway safety and environmental standards.
But they must not stop there. There is no reason that the federal government shouldn’t be allowed to favor American companies when it purchases goods or services it needs. President Trump recently signed an executive order expanding the reach of the “Buy American” program, and it should be up to elected officials to decide what company is best to handle its needs, not a trade pact.
Multi-national corporations, in turn, shouldn’t be able to usurp U.S. laws they don’t like by appearing before business-friendly tribunals with the power to punish taxpayers with their rulings. This investor state dispute resolution provision became a rallying cry against the now-defeated Trans-Pacific Partnership (TPP) for good reason, and there is no reason why NAFTA should contain such language either.
And currency manipulation also remains a problem that needs to be taken on. A new NAFTA must include a chapter with enforceable sanctions against the practice. The pact also needs to protect jobs and the people who do them. That means beefing up worker protections beyond what was even offered as part of the failed TPP. Exploitation cannot be part of any future trade pact.
But the concerns of U.S. workers don’t end with trade. As I mentioned last month, having quality health care is a major concern for the public. And while it previously appeared Congress was done with its efforts to repeal the Affordable Care Act, it unfortunately now seems it’s back on the table.
Nothing has changed from the Teamsters’ perspective. This is still a bad proposal that instead of fixing and reforming the flaws of ACA falls woefully short of providing good health care options to those in need. Congress also seems intent on keeping the provision that would apply a huge tax on comprehensive, low-deductible health benefits largely provided by union-sponsored plans. The current proposal is unacceptable and should be sent back for further negotiations.
Workers deserve to be treated with respect and dignity, both in trade agreements and when it comes to having quality medical care. The path to do so is clear for elected officials. It’s time for them to work together to solve these issues.
The terminal’s 60,000 square feet of dock space with 60 dock doors and heated dock provide better coverage for key Ontario markets and strategic southern Ontario support with quicker cycle time, freight movement and management.
The terminal is conveniently located near the two major markets of Kingston and Ottawa, Ontario enabling Holland to more effectively accommodate the demand for Cross-Border service both in Ontario and the entire Holland network.
The Ontario terminal’s location is just five minutes from Hwy. 401 (the main artery between Toronto and Montreal).
“This is just one of the many advantages of shipping to and from Canada with Holland, and another example of the Holland Difference in action,” said Scott Ware, Holland President. “We work hard to understand and meet the needs of our customers who entrust us with their valuable cross-border shipments.”
Higher first quarter Asset-Based revenue associated with healthy shipment growth and improved pricing
First quarter Asset-Light revenue and operating income increased versus the prior year
ArcBestSM reported first quarter 2017 revenue of $651.1 million compared to first quarter 2016 revenue of $621.5 million. The first quarter 2017 GAAP operating loss was $12.3 million compared to an operating loss of $9.3 million last year. The net loss in this year's first quarter was $7.4 million, or $0.29 per diluted share, compared to a first quarter 2016 net loss of $6.1 million, or $0.24 per diluted share.
Excluding certain items in both periods as identified in the attached reconciliation tables, non-GAAP net loss was $5.8 million, or $0.22 per diluted share, in first quarter 2017 compared to a first quarter 2016 net loss of $5.9 million, or $0.23 per diluted share. On a non-GAAP basis, the operating loss was $8.7 million in first quarter 2017 compared to a first quarter 2016 operating loss of $8.4 million. The consolidated non-GAAP operating results comparison was impacted by a $2.0 million increase in the "Other and eliminations" loss driven by previously highlighted investments in technology development toward enhancing the ArcBest customer experience and the ability to offer comprehensive transportation and logistics services across multiple operating segments.
"The first quarter – typically the most challenging of the year – saw revenue growth in both our Asset-Based and Asset-Light businesses but also experienced some changing freight characteristics on the less-than-truckload side and a degree of weaker demand, particularly in the truckload sector," said ArcBest Chairman, President and CEO Judy R. McReynolds. "Our enhanced market approach, in which we now offer most services under the ArcBest brand, became fully operational in the first quarter. We continue to see positive reception from customers about our heightened focus on meeting all of their supply chain needs. Customers also recognize the value we bring to their own businesses with our ability to manage even the most complex logistics challenges."
Full report here............
"Our Regional carriers' first quarter 2017 results were generally in line with a year ago, including an increase in year-over-year tonnage per day," said James Welch, chief executive officer at YRC Worldwide. "YRC Freight's results in the first quarter were unfavorably impacted by a year-over-year decrease in revenue per hundredweight, excluding fuel surcharge, that more than offset increases in tonnage per day and weight per shipment. We expect the improvement in year-over-year tonnage per day to help us execute our strategy of pricing for profitability and moving shipments through YRC Freight, Holland, Reddaway and New Penn's networks that have favorable freight characteristics. We believe the pricing environment remains stable in the less-than-truckload sector. Our goal in 2017 is to exceed our 2016 Adjusted EBITDA results while meeting our customers' needs," stated Welch.
"We continuously evaluate opportunities to drive improvements in operational efficiencies and financial results, including tightly managing our cost structure. During the first quarter we implemented a plan to reduce costs and de-layer our management and other non-union workforce. Headcount reduction is the most significant source of savings while other changes included increasing collaboration across our companies and reducing the utilization of external professional services," concluded Welch.
Full report here..................
The job cuts were accompanied by other cost savings in the company’s dealings with “external professionals,” such as consultants, and from increased collaboration among its four companies that combined duplicate departments.
YRC Worldwide owns YRC Freight, a national less-than-truckload carrier, and three regional trucking companies, New Penn, Holland and Reddaway.
CEO James Welch said that although the four businesses were collaborating more, there are no plans to merge them. He also said the job cuts were part of a normal review of operations.
Welch called the quarterly results “somewhat disappointing,” but he said the company’s “fundamentals” were improving and that better results lie ahead.
“We feel good about the rest of the year,” he said during a conference call with analysts.
Costs will be about $25 million lower because of the changes, including job cuts that triggered some severance costs. Welch said $16 million of the cost savings will come at YRC Freight and $9 million at the regional carriers.
YRC Worldwide said it lost $25.3 million, or 78 cents a share, during January, February and March. A year earlier, it had lost $12 million, or 37 cents a share.
Its freight operations lost $3 million in the quarter after posting a $13.4 million profit a year earlier. Interest expenses increased the recent loss and turned the operating profit from a year ago into a net loss.
Revenues in the first quarter were $1.17 billion, up from $1.12 billion a year ago. YRC said its profits fell in part because it collected less revenue for each 100 pounds of freight it hauled. Winter weather also had an impact.
The company has renegotiated price contracts with a number of customers and expects that to help improve financial results in the remainder of the year.
Monday, April 24, 2017
John McKown has been working in the trucking industry for more than 20 years – 12 of them as a Teamster at UPS Freight in Pennsylvania. But his greatest achievement on the road happened when he was selected to join the American Trucking Associations’ “America’s Road Team” program.
“I can’t put in to words how great it felt to be chosen to be part of this elite road team,” said McKown, who is a safety trainer at UPS Freight and a member of Local 776 in Harrisburg, Pa.
It wasn’t his first attempt at joining the two-year program, which was established in 1986 to help educate the public about the trucking industry. Last time McKown went through the rigorous application process and was among 32 finalists, but he was not selected for the program.
McKown explained that the process begins with being nominated by a supervisor. Drivers then have to submit application materials showing an accident-free safety record and strong community involvement.
“I have been heavily involved in the community through UPS Freight, working with the Salvation Army, the Red Cross – and on my own time I umpire Little League and volunteer at a nursing home. And I also help at the local VFW,” McKown said.
The second time around, McKown knew the process and his hard work paid off. He was selected for the 2015-2016 program along with 19 other drivers from various companies.
“There was such a strong feeling of pride, a feeling that I was following in my dad’s footsteps,” he said, referring to his father who is a 35-year retired Teamster. As a captain on the ATA Road Team, McKown takes part in community outreach at public events to raise awareness about trucking in America and conduct safety demonstrations for high school students.
“The ‘Share the Road’ program we do is so gratifying because you can see how you are really teaching these young kids about driving safely,” McKown said.
He recently went to a high school with the Road Team to teach students about blind spots on trucks. “We bring a truck to the school and park a car in the blind spot. When you get these kids up in the cab of the truck and they don’t see the car, you can see their eyes get big and you know you’re getting to them,” he added.
Even before being selected for the Road Team, McKown had experience teaching younger generations about trucks and road safety. He volunteers as a guest speaker in several high school drivers’ education classes. He is also participating in events at community colleges and other venues to promote careers in truck driving to students.
“The trucking industry is imperative to our economy – without trucks America doesn’t work, everything stops. That’s why I am so honored and humbled to be a captain on the ATA Road Team,” he said.