COMPETITION WATCH: Contrans increases revenue in 2007 despite market downturn

WOODSTOCK, Ont. — Contrans made revenue gains in the fourth quarter of 2007 and the year as a whole while maintaining profit levels, the company announced.

For the quarter ending Dec. 31, 2007, Contrans saw its revenue total $118.5 million compared to $115.6 million in 2006. In all of 2007, Contrans recorded $485.9 million in revenue compared to $455.2 million in 2006.

The company says its focus on profitability has allowed it to succeed during the slowdown.

“The past year was marked by an increasingly challenging environment in our industry,” stated Stan Dunford, CEO of Contrans. “These challenges included the strengthening Canadian dollar, rising fuel costs and a slowing economy. These factors resulted in an over-capacity of equipment for the volume of freight to be transported.”

However, despite the challenges, the company maintained its EBITDA profit margins while also increasing revenue.

“We view our performance as a significant achievement, particularly given the number of companies that have recorded steep declines in their operating results,” Dunford said. “Our positive performance reflects our management team’s longstanding commitment to maintaining and improving our profit margins. While many companies can maintain or grow their profits in good times, the mark of a truly focused company is its ability to maintain those results in a challenging business climate.”

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