MONTREAL, Que. -- TransForce more than doubled its Q1 adjusted profit (which excludes the after-tax effect of changes in the fair value of derivatives and of items that are not in the Company's normal business) from a year ago to $12.2 million.
MONTREAL, Que. — TransForce more than doubled its Q1 adjusted profit (which excludes the after-tax effect of changes in the fair value of derivatives and of items that are not in the Company’s normal business) from a year ago to $12.2 million.
The company’s Q1 revenue increased 20% over the same period in 2010.
“TransForce posted a most satisfying performance in what has historically been a seasonally-weak quarter,” announced chairman, president and CEO Alain Bedard. “Our leading and growing position in strategic markets and constant focus on providing innovative, value-added solutions to our customers delivered solid dollar increases in our key EBIT metric, as well as in cash flow and adjusted profit. This momentum offset headwinds caused by the rapid rise in fuel costs and the persisting strength in the value of the Canadian dollar. Above all, TransForce remained proactive in the management of operating costs, while continuing to improve efficiencies in its expanding continental network.”
The company reported reduced profitability for its LTL segment while its package and courier segment saw revenue climb 64% from $82.9 million in the first quarter of 2010 to $135.6 million this year, thanks largely to the acquisition of Dynamex.
LTL revenue was off 6% due to weak market conditions and the strength of the Canadian dollar, the company reported.
Truckload revenue was up 4% y-o-y in the first quarter due to volume increases and improved fleet utilization, thanks in part to the shedding of 150 power units since the year-earlier period.
Looking ahead, TransForce was bullish about its growth in the package and courier segment.
“Since the beginning of 2011, TransForce has further enhanced its leadership in the North American package and courier industry by broadening its geographical reach, service offering and customer base,” Bedard said. “The acquisition of Dynamex brings us a strong brand and a significant presence in the U.S. It also provides additional opportunities, as the US market remains highly fragmented. The acquisition of DHL’s Canadian domestic operations, as well as the 10-year strategic alliance with DHL Express Canada announced last month, once completed, will create greater scale and density for TransForce in the Canadian market, while providing additional international services to our existing customers.”
Bedard also said TransForce will remain “an active, yet highly disciplined and selective consolidator in its strategic market segments.”
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