MONTREAL, Que. – TFI International announced fourth quarter earnings today, which included a 10% year-over-year growth in revenue and a 22% improvement in net income from continuing operations.
TFI shut down its US rig moving operations and sold its Waste Management segment since the comparable quarter last year. Notably, it saw its revenue from e-commerce fulfillment shoot up 38% in the package and courier segment and 15% in the truckload sector in the fourth quarter.
“2016 was a transformational year for the company. We made an important acquisition that bolstered our presence in the North American truckload market, including the growing US-Mexico cross-border corridor,” said Alain Bedard, chairman, president and chief executive officer. “Reflecting our new capabilities, we closed out the year by adopting the new corporate name of TFI International Inc. Going forward, almost half our total revenue will be derived in the US.”
The company’s revenue growth reflected its acquisition of XPO Logistics’ North American truckload division, renamed CFI. Volumes were lower in existing LTL and truckload operations, which Bedard said was due to the company’s decision to exit low-margin business.
Net income from continuing operations was $46.4 million compared to $40.6 million a year ago.
For the full year 2016, revenue from continuing operations held steady at $4 billion. Net income for the year was $157.1 million compared to $145.7 million in 2015.
Looking ahead, Bedard said he’s “cautiously optimistic” about the North American economy.
“Unemployment is low and consumer spending remains solid,” he said. “Moreover, rising oil prices have given way to a modest rebound in the level of investment in that sector. These factors should produce a gradual recovery in freight volume and rates.”
He also said the company is well positioned to take advantage of burgeoning e-commerce activity. Bedard said growth will come through selective acquisitions. TFI International will be targeting asset-light operations that offer synergies and reinforce existing operations and expand the company’s geographic footprint, Bedard noted.