COMPETITION WATCH: TransForce posts stronger Q4 profit
MONTREAL, Que. – TransForce has reported Q4 revenue gains of 36% to $735.5 million and a 63% increase in profit to $33.9 million.
For the fiscal year ending Dec. 31, 2011, TransForce reported revenue up 34% to $2.7 billion and adjusted profit of $102.5 million, a 43% gain over 2010.
Alain Bedard, chairman, president and CEO of TransForce credited strategic acquisitions and capacity optimization for the company’s growth.
“In the fourth quarter, profitability improved largely due to improved operating efficiencies and enhanced asset utilization, although a hesitant economy caused overall volume to decline slightly,” Bedard said.
“In Package and Courier, advances were made in the performance of Loomis Express, which reduced its loss, and we continue to proactively implement cost reduction measures to further enhance profitability. EBIT for Less-Than-Truckload operations also rose, as we increasingly benefit from a rationalized asset base. Capacity optimization initiatives had a positive effect on Truckload profitability, but revenue was affected by temporary volume decreases in the fourth quarter. Finally, services to the energy sector posted strong results driven by greater density and the acquisition of IE Miller.”
Looking ahead, Bedard said he anticipates continued improvement in 2012.
“We believe the 2012 economic environment will resemble that of 2011 with conditions continuing to improve, but at a measured pace,” he said.
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