LTL sector financial results show gains in Q3   

Stifel Nicolaus (www.stifel.com) reported strong year-over-year yield growth and operating ratio improvements for publicly traded less than truckload (LTL) carriers in Q3. The Stifel industry sector Snapshot for the LTL sector showed year-over-year revenue per hundredweight (yield) including fuel surcharge increasing by 10%. That makes 6 straight quarters of rising year-over-year yields for the LTL carriers following 6 straight quarters of declining yields. Operating ratios continued to improve but remain in the mid 90’s. LTL carriers have a way to go to achieve operating ratios in the low 90's as they had achieved before the recession. Weight per shipment leveled off in the quarter but is still at a high point as parcel carriers win smaller shipments and TL carriers only reluctantly accept multi-stop TL shipments. Composite net income, excluding YRCW, is approaching pre-recession levels.

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