YRC Worldwide Q2 losses smaller; Hersha earnings up 4 percent
YRC Worldwide Inc., the Kansas-based trucking company with midstate operations, has posted second-quarter net losses that are substantially smaller than a year ago as the company said it continues to make long-term progress toward sustainable business.
YRC’s operating income was $14.3 million, down slightly from a year ago due to slower second-quarter revenue, but the company cut about $7 million from its operating expenses, according to its quarterly filings.
The trucking and logistics company recently started an optimization plan for its YRC Freight division that would reduce the number of distribution facilities and streamline its transportation.
YRC’s regional trucking companies, such as Lebanon-based New Penn Motor Express Inc., continue to perform well for the parent. Operating income for the regionals was more than $25 million in the quarter, a 10 percent increase from a year ago.
“While the regionals continue to excel in their markets, YRC Freight faced some headwinds during the implementation of the network optimization plan,” said YRC CEO James Welch. “We recorded a one-time charge of $6.3 million related to the network optimization, which is a small investment in what we anticipate will be approximately $25 (million) to $30 million in annual savings.”
YRC’s second-quarter net loss was just more than $15 million, an improvement from a loss of $22.6 million a year ago, according to the company.
Losses per diluted share were $1.72, far more than analyst estimates of a 64-cent loss, according to Yahoo Finance.
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Hersha Hospitality Trust, the upscale hotel owner with offices in Philadelphia and Harrisburg, last week reported net income of nearly $18.1 million for the second quarter, a 4 percent increase from a year ago.
Hersha continued its growth, particularly in New York, CEO Jay H. Shah said in the company’s earning statement. However, slower convention schedules in Boston and Philadelphia, as well as a slow Easter travel time and sequestration spending cuts in Washington, D.C., drove down revenues in the quarter, he said.
In May, Hersha acquired a hotel in Philadelphia worth more than $71 million and signed a definitive agreement to acquire another in Miami for nearly $22 million.
Earnings per diluted share applicable to common shareholders were 7 cents. Without losses from discontinued operations, EPS would be 8 cents. Analysts had estimated 15 cents a share, according to Yahoo Finance.