MONTREAL, Que. — Cost reductions and improved efficiences allowed TransForce to improve its first quarter earnings.
The company posted net income of $26.6 million compared to just $3.1 million the same period a year ago. Revenue was $466.1 million, a 3% increase over the first quarter of 2009.
“These improved results directly reflect our disciplined efforts to contain costs and increase efficiencies,” said Alain Bedard, chairman, president and CEO of TransForce. “EBITDA is up 14% over the same period last year while cash flow is up 30%. Over the past several months, we’ve made significant adjustments to address the pressures of the current economic environment and these moves are clearly benefitting the company and our shareholders.”
Normally, the first quarter is soft for TransForce, so the company is encouraged by its strong start to the year.
“We are encouraged by the results for the first quarter, particularly since seasonality means the first three months of the year are normally the weakest. While we saw some signs of economic improvement in the first quarter, most of the improvement was due to the actions we have taken. We do not expect to see a sustained recovery or increased volumes for our industry until later in 2010,” said Bedard.
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