MONTREAL, Que. — TransForce continues to feel the effects of a slow economy and reduced freight volumes.
Third quarter revenues for the company were down 24% to $451.4 million compared to a year ago, thanks to continued slow economic activity. Net income was $16.9 million compared to net income of $26.5 million in the same quarter of 2008.
“Demand continues to be depressed across Canada, and particularly in Western Canada, where continuing lower levels of activity in Alberta’s energy sector contributed to weaker results in TransForce’s Less-Than-Truckload segment,” said Alain Bedard, president and CEO of TransForce. “Business improved somewhat in September from what was an unusually slow August. Now we must monitor the effect of the appreciating Canadian dollar on a recovery in the manufacturing sector.”
Year-to-date, TransForce’s revenue is down 21% to $1.4 billion and net income is down from $64.9 million for the same nine-month period of 2008 to $38.1 million.
“The people of TransForce have done an outstanding job of controlling costs and I thank them for their dedicated efforts as we move through this challenging period. We have made significant progress in cost containment and our streamlined structure and processes will remain in place,” said Bedard. “While managing through the current recession, we continue to implement our strategy for the future. We are on track to meet our debt repayment target for 2009. Our acquisition strategy remains in place but we will only consider acquisitions that are immediately accretive for our shareholders.”
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