WOODSTOCK, Ont. — Contrans saw its revenue and net earnings plunge in the first quarter of 2009, but the company still turned a profit and says it is continuing to win new business.
Net earnings for the period ended March 31 were $1.5 million compared to $5 million for the first quarter of 2008. Revenue from transportation services slipped from $102 million in the first quarter of 08 to $80.9 million in the first quarter of 09.
Despite all that, the company said it’s continuing to win new business and that it’s poised to take advantage of growth opportunities even amidst the current downturn.
“In spite of operating in a poor economic environment, Contrans has continued to win new business,” said Stan Dunford, chairman and CEO of Contrans. “Although this internal growth has been modest and has not offset all of the effects of the current recession, it is an encouraging reminder that opportunities do arise in poor economic times. Moreover, this growth has only required a relatively small investment in equipment. We expect that similar growth opportunities will continue to arise, particularly if and when competitors succumb to recessionary pressures.”
Dunford added that changes in the competitive landscape will benefit large carriers such as Contrans, “That have the necessary resources available to act quickly upon opportunities when they arise.”
The drop in revenue was chalked up to the continuing recession and its impact on freight volumes and downward pressure on freight rates. Contrans said it also abandoned some unprofitable traffic lands and closed some operations.
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