CALGARY, Alta. — Trimac grew profits by 9.4% in the second quarter on lower revenue, thanks to its focus on reducing costs and improving efficiencies.
The company declared Q2 net income of $3.5 million, up from $3.2 million over the second quarter of 2014. Profits for the six-month period ending June 30 were $5.9 million, down slightly from $6.1 million over the same period last year, for a 3.3% decline.
However, the company says its “operational excellence strategy,” which has lowered administration costs, reduced capital expenditures and achieved new efficiencies, is paying off. The company says it launched the plan last year and is about 30-50% through implementing it.
Revenue losses (-2.4% vs Q2 2014) were primarily in the Western Canada bulk trucking segment, Trimac reported.
“Despite lower revenue in our western Canadian operations, we are very pleased that the execution of our operational excellence strategy is starting to generate positive results with a year-over-year increase in net income and earnings per share in the current quarter,” said Ed Malysa, president and COO of Trimac.
Low oil prices had a trickle-down effect on many of the industries Trimac serves, the company said. It also indicated its customers are not anticipating any real growth for the remainder of the year. Trimac says it maintains a strong balance sheet and is in a good position to take advantage of any “opportunistic acquisitions that match our strategic growth objective.”