Profits Jump at YRC Worldwide

The company's revenue rises 40%.
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YRC Worldwide

(YRCW) - Get Report

said profit rose 26% in its December quarter, aided by strong demand for its services.

The Kansas based transportation services company earned $79.8 million, or $1.34 cents a share, compared with $63.3 million, or $1.24 cents a share, in the same period a year ago. Adjusted for acquisition charges, property disposal gains and increase in the effective tax rate, earnings were $1.39 in the quarter. Analysts surveyed by Thomson First Call were expecting earnings of $1.36 cents a share for the same quarter.

The company's revenue rose 40% to $2.5 billion, beating the Thomas First Call estimates of $2.4 billion.

YRC expects first-quarter 2006 earnings between $1 and $1.05 a share and 2006 profits between $6.15 and $6.30 a share. Wall Street was looking for $1.13 and $6.03 a share, respectively.

Among segments, operating income for Yellow Transportation grew 15.8% while for Roadway Express it grew by 14.2%. Both the segments together account for around 71% of the revenue of the company.

The operating income of YRC was up 39% to $154 million for the fourth-quarter compared to $111 million in the same period last year. The operating margin was 6.2% as against 6.3% in the same quarter a year ago.

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