MONTREAL, Que. — TransForce saw its profits decrease in the third quarter as well as the nine month period ending Sept. 30 compared to a year ago, despite increased revenue driven largely by fuel surcharges.
Revenue was up 23% to $595.5 million during the third quarter, with $83.8 million resulting from fuel surcharges. Net income totaled $26.5 million for the quarter, compared to $28.5 million for the same period last year. For the nine months ending Sept. 30, net income was $64.9 million, down from $75.7 million over the same period in 2007. The company’s conversion from an income trust to a corporation had tax implications which impacted the decline, the company pointed out.
TransForce chairman, president and CEO Alain Bedard said he’s pleased with the company’s overall results during a challenging time.
“While industry conditions continued to be weak in the third quarter, TransForce maintained its disciplined growth strategy to increase revenues and its careful operating management to drive significant EBITDA growth,” said Bedard. “Once again the skills and experience of our people have produced solid results for our shareholders.”
Bedard added he’s optimistic the company will continue to perform well as more favourable business conditions return.
“While it’s difficult to look forward with any certainty in this environment, the current trend towards a lower Canadian dollar and lower fuel costs should be positive for TransForce,” he said.
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