MONTREAL — The first quarter of 2008 showed improved results from the previous for TransForce Income Fund, which ranked first in our Top 100 list as Canada’s largest carrier in March.
According to the company, improving on last year’s results had a number of challenges, including softened demand due to the relatively strong Canadian dollar, high fuel costs and extreme weather conditions.
Despite these challenges, the fund increased revenues 13 percent to $526.3 million from $464.8 million in the first quarter of 2007.
“Although we are operating in the toughest economic climate in at least a decade, TransForce has generated growth across most of our segments,” stated Alain Bédard, chairman, president and CFEO of TransForce. “Continued slower economic activity and higher fuel costs affected our Less-Than-Truckload and Truckload operations but these were able to report revenue growth, mostly as the result of acquisitions in the past year.”
TransForce recently revealed more acquisitions are to come in the near future and the company is in advanced discussions regarding a number of potential strategic acquisitions, totalling more than $100 million, that could be realized in the short term.
In addition, as a result of the pending changes to the tax treatment of the income fund sector, TransForce also announced its intention to ask unitholders to approve a conversion from an income fund structure to a growth-oriented corporation, which is better suited to achieving its goal of delivering value to our investors.
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