TransForce saw its profits decrease in the third quarter as well as the nine month period ending Sept. 30 compared to a year ago, despite increased revenue driven largely by fuel surcharges.
Revenue was up 23% to $595.5 million during the third quarter, with $83.8 million resulting from fuel surcharges.Netincome totaled $26.5 million for the quarter, compared to $28.5 million for the same period last year. For the nine months ending Sept. 30, net income was $64.9 million, down from $75.7 million over the same period in 2007. The company’s conversion from an income trust to a corporation had tax implications which impacted the decline, the company pointed out.
Meanwhile, Vitran Corporation achieved record revenue of $198.6 million in the third quarter, but net income fell to $2.1 million. In the comparable 2007 third quarter, the company reported revenue of $171.9 million and net income of $3.1 million.
“In the 2008 third quarter, the economic slowdown and significant industry pricing pressures negatively impacted our LTL operating ratio, and partially offset record revenues that were driven by a strong performance at our logistics unit and 35% growth in the company’s LTL cross-border revenue,” said Vitran president and CEO Rick Gaetz.
LTL revenue grew 10.6% compared with the same period last year to $166.2 million, while Vitran’s logistics segment increased its revenue by 70.7% to $23.4 million.
Out west, Mullen Group has announced its revenue also increased in the third quarter, but profits slipped due in part to “foreign exchange impacts on the Fund’s US$235 million of long-term debt.”
Overall, the company said it was pleased with its performance in a difficult operating environment.
For the three-month period ending Sept. 30, revenue was $352.2 million, a 35% gain over the same period of 2007. For the nine months ending Sept. 30, revenue hit $959.4 million, a 13% gain over the same period in 07.Net
income slipped to $36.2 million for the quarter, a 4.7% decline from 07, and $105.9 million for the nine months ending Sept. 30, a 6.2% drop from 07.
The company attributed its strong results to a number of factors, including: the acquisition of three oilfield services competitors; strong demand for the transportation of fluids and the servicing of oil rigs, particularly in Saskatchewan; strong demand for services in the Alberta oil sands; and gains in the trucking/logistics segment, most notably through the Kleysen Group business unit, the company reported.
“These results indicate the strength, flexibility and growth potential in our business model,” said Stephen Lockwood, president and co-CEO of Mullen Group. •
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