MONTREAL, Que. — TransForce has posted significantly higher revenue and net income in the second quarter and first six months than the same periods last year.
The company is now in recovery mode and with its cost-cutting measures, well-positioned to capitalize on the recovery, the company says.
“While the economic environment remains challenging, the steps we have taken to increase efficiency, combined with some revenue growth, continue to help generate positive results for our shareholders,” said Alain Bedard, Chairman, president and CEO of TransForce. “We expect to see some improvement for the industry later in the year but, for now, we welcome relative stability after many quarters of volume declines and pricing pressure.”
In the second quarter, TransForce revenue totaled $496.9 million, up 9% compared to Q2 2009. Net income more than doubled to $23.3 million compared to the same time last year.
“Oilfield and oilsands operations benefited from increased activity in the second quarter and the package and courier segment grew as a result of an acquisition” said Bédard. “These quarterly results are the best since 2008 and make us cautiously optimistic for the future.”
For the first six months of 2010, total revenues were $963 million, a 6% gain over the first half of 2009. Net income was $29.2 million, up from $15.6 million the same time last year.
TransForce said in the second quarter, its revenues stabilized but pricing pressure continued to offset slight volume increases. The company says conditions have not deteriorated further in the past three months.
TransForce also expressed confidence its revenues will improve within the next 12 months. It is also eyeing additional acquisitions.
“Current market conditions may dictate continued restraint, but TransForce remains committed to its strategy of growth through selective acquisitions,” the company says.
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