MONTREAL, Que. — TransForce grew revenue and net income in the third quarter and announced it is discontinuing its rig-moving division.
Those assets will be sold or redeployed elsewhere, TransForce announced today in its earnings release.
”TransForce’s relentless focus on high-return activities produced strong results. We recorded solid organic growth in the Waste Management and Logistics segments, while the acquisition of Contrans lifted revenue and operating income in the Truckload (“TL”) segment. Certain economic challenges affected business activity in the Package and Courier (“P&C”) and Less-than-Truckload (“LTL”) segments whereas TL divisions servicing the oil and gas industry experienced another difficult quarter due to difficult market conditions,” said Alain Bedard, chairman, president and CEO of TransForce.
“That persistent weakness led to the decision to cease our residual US rig moving business. In keeping with TransForce’s operating principles, remaining assets will be sold or redeployed to higher-return activities.”
Total revenue from continuing operations climbed to $1.07 billion for the quarter, up 13% year-over-year. The company says the increase reflects last year’s acquisitions and the positive effect of the stronger US dollar.
Net income from continuing operations was $43 million, compared to $38.6 million a year ago.
Looking ahead, Bedard said the North American economic landscape remains “mostly unchanged,” which will restrain organic growth in the company’s main operating markets.