LTL carrier yields show strong growth for second straight quarter   

Stifel Nicolaus (www.stifel.com) reported strong year-over-year yield growth but only modest financial results for publicly traded less than truckload (LTL) carriers in Q1. The Stifel industry sector Snapshot for the LTL sector showed year-over-year revenue per hundredweight (yield) including fuel surcharge increasing by more than 5% for the second straight quarter. That makes 4 straight quarters of rising year-over-year yields for the LTL carriers following 6 straight quarters of declining yields. Operating ratios deteriorated from Q3 and Q4 of 2010 and are near 100, but improved over the Q1 2010. LTL carriers have a long way to go to achieve operating ratios in the low 90's as they had achieved before the recession. Weight per shipment continues to climb as parcel carriers win smaller shipments and TL carriers only reluctantly accept multi-stop TL shipments. Composite net income, excluding YRCW, remains well below pre-recession levels.

Graph reproduced with permission from Stifel Nicolaus. For more information contact: JGLarkin@Stifel.com.