Ice storms, heavy snows and frigid temperatures continue to knock YRC's freight operations off their carefully timed schedules, executives said Thursday after releasing financial results for the fourth quarter and all of 2013.
The 2013 losses included setbacks in the summer months that were tied to the company's effort to close some terminals and change routes to run more efficiently. The changes left some workers and equipment out of place, freight stacked up in terminals and schedules disrupted. Overtime and other expenses hurt financial results.
"It was definitely not one of our finer moments," chief executive
He said those problems have been fixed and the system runs well when not disrupted by the weather. But each winter storm throws the cycle off again, and the company scrambles to catch up and restart the cycle.
YRC said winter's financial impact this year already equals or may have exceeded the damage late last year.
Its fourth-quarter results also showed the effect of the extended effort to get the new labor agreement.
Welch said the company's campaign was "no doubt a major workplace distraction as we held literally hundreds of meetings with our employees," but the focus of workers and management has returned to improving the freight operations.
Still, customers took note as the company pleaded for more concessions from employees in the runup to a December union vote. The pact failed, but an altered proposal passed in January.
In the interim, shippers "were becoming concerned" about YRC's future, said
Hawkins said YRC Freight didn't lose customers during the uncertainty, but shippers were less willing to accept higher prices. That has changed.
Higher revenues from
A large tax benefit in the recent quarter meant
YRC shares gained 14.9 percent after the report and call, climbing
Markets reacted to management's outlook for improving operations.
The new labor pact should shave
Welch also said he expects more success attracting drivers now that the labor agreement is in place.
If only winter would end.
(c)2014 The Kansas City Star (Kansas City, Mo.)
Visit The Kansas City Star (Kansas City, Mo.) at www.kansascity.com
Distributed by MCT Information Services