WOODSTOCK, Ont. — Contrans Income Fund opened 2007 with revenue gains in the first quarter of $12 million as compared to the first quarter of 2006.
First quarter revenues rose from $107.5 million in 2006 to $119.4 million for the first quarter of 2007.
“We are very pleased with our first quarter,” stated Stan Dunford, chairman and CEO of Contrans. “In spite of reduced manufacturing and construction activity, we still managed to post excellent operating results. These results were in part due to the solid performances of the acquisitions that we made in 2006. In addition, our success was also attributable to the growing diversity of our customer base.”
Acquisitions generated additional revenues from transportation services of $20.3 million in the first quarter of 2007, while core operations (operations on hand at the beginning of 2006) continued to be adversely affected by the strong Canadian dollar, slowing economies in Central and Eastern Canada, as well as a slowdown in construction.
Revenue from core operations fell by $8.5 million in the first quarter of 2007 compared to the same period in 2006.
“Southbound freight out of Central and Eastern Canada continues to be a problem for our entire industry,” added Dunford. “While this has reduced the pressure of a driver shortage, it has also resulted in a tougher competitive environment that has affected all carriers. Some will do better than others in these circumstances. We expect that Contrans’ strengths will become increasingly evident the longer these conditions exist.”
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