newsworthy
YRC loses nearly $900 million in
2009; UPS shows gains
YRC Worldwide Inc., the nation’s largest less-than-truckload
(LTL) carrier by sales, said on Feb. 5 that it suffered a 2009 pre-tax loss of $899 million, compared to a 2008 pre-tax loss of
$1.147 billion, which included so-called impairment charges of
$1.02 billion.
For the fourth quarter of last year, YRC posted pre-tax
income of $50 million, which included what the company
called a “net gain” on certain financial transactions. In the 2008
fourth quarter, YRC posted a pre-tax loss of $353 million,
which included $200 million of “impairment charges.”
The company did not disclose after-tax results, saying it
needs more time to complete a valuation analysis due to
accounting complexities stemming from the debt-for-equity
swap it engineered at the end of 2009.
YRC posted a $95 million operating loss in the fourth quar-
ter, an improvement over the $118 million loss in the prior
quarter and the $335 million loss it posted in the fourth quar-
ter of 2008. The 2008 results included $200 million in “impair-
ment charges.”
YRC continued to see significant declines in fourth-quarter
shipment volumes due to shipper uncertainty over the compa-
ny’s financial stability and decisions by the carrier to shed
unprofitable business. YRC National, the company’s national
LTL unit, reported a 39-percent year-over-year decline in total
daily shipments. Its regional unit reported a nearly 20-percent
decline in total daily shipments.
In a statement, Tim Wicks, YRC’s president and COO, said
the company’s improved performance is “now becoming
apparent in our operating results, and we expect favorable year-
over-year comparisons will accelerate during 2010.”
Things were less turbulent at UPS Inc., where the company,
powered by strong results from its international operations,
reported a fourth-quarter operating profit of $1.26 billion, well
above the $803 million in profits it recorded in the fourth quar-
ter of 2008. UPS’s earnings per share came in at 75 cents, at the
high end of the range it had projected several weeks back.
UPS’s strong numbers came in spite of weakness in its supply
chain and freight businesses. UPS’s freight forwarding operating
margins were squeezed by rapidly rising transportation costs
that resulted from a surge in Asian demand that outstripped
available capacity. The company’s LTL business reported a loss
for the quarter due to what it called an “extremely competitive”
pricing environment. LTL shipment growth was flat, while tonnage declined in the quarter, UPS said. The company does not
publicly break out profit and loss figures for its LTL operations.
For UPS, international was the fourth-quarter standout.
Revenue rose 5. 8 percent over 2008 levels, with average daily
volumes growing by 11. 8 percent. UPS reported an international operating margin of 16. 7 percent, its highest margin
since the fourth quarter of 2007.
Penske donates $1 million in
trucks to Haiti relief effort
The Penske Corp. says it has donated 40 used flatbed
trucks, valued at $1 million, to support the ongoing
relief work in earthquake-ravaged Haiti.
The 22-foot vehicles, pulled from the Penske Truck
Rental fleet, will help distribute food and life-saving
supplies as part of humanitarian relief efforts in Haiti,
Penske said.
The company said representatives of a team headed
by former presidents Bill Clinton and George W. Bush
contacted founder Roger Penske’s office in Bloomfield
Hills, Mich., seeking help with donated vehicles.
Penske Truck Leasing, another Penske unit, pulled
vehicles from inventory across the Western, Southern,
and Gulf Coast states and began shipping them to
south Florida for the voyage to Haiti.
All of the vehicles have now arrived on the island.
ground breakers
; Polar Beverages has opened a 200,000-
square-foot distribution facility in Auburn, Mass.
The facility is expected to help the company
streamline shipping from its nearby manufacturing facilities in Worcester.
; Hayneedle, an online retailer, has signed a
lease with Industrial Developments
International for a 501,357-square-foot building
at the Monroe Logistics Center in Ohio. The new
facility, which is located 20 miles north of downtown Cincinnati, will serve as the online retailer’s
primary distribution center.
; Menlo Worldwide Logistics has begun operating a new 134,000-square-foot distribution
facility in Bay City, Mich., for Dow Chemical.
Menlo will provide a variety of inventory management, warehousing, and fulfillment services
at the site, including the receipt, put-away, storage, and shipping of cellulose products.
; Medline Industries Inc., a privately held manufacturer and distributor of medical supplies, has
opened a 500,000-square-foot distribution facility in Middletown, N.Y. The new facility, which is
expected to employ 60 people in two shifts, will
serve medical centers in Upstate New York, New
York City, Long Island, and Western Connecticut.
