The CEO and CFO of Overland Park, Kan.-based YRC Worldwide Inc. blamed its disappointing quarterly earnings on the company’s largest operating sector, YRC Freight, and pointed out in a conference call that the company fired the head of YRC Freight because of the poor performance.
YRC Worldwide CEO James Welch, who took over as YRC Freight’s president in September, said the freight network fell “out of cycle” — meaning freight was not delivered on time — during the summer because of a massive, poorly executed change of operations at YRC Freight. Welch said a large number of workers did not make it to the right freight location during that change of operations.
YRC Worldwide’s loss per share was $4.45, compared with a gain of 40 cents a share during the third quarter of 2012. During the quarter, YRC Freight posted a $9.7 million loss in operating income. That’s a whopping 446 percent less than the $2.8 million the sector made in the third quarter of 2012.