MONTREAL, Que. — TransForce posted record revenue in the second quarter of 2007, but saw its net income slip.
Revenue increased by 20% to $595.6 million for the quarter.
“Everyone at TransForce can be proud of our performance in the latest quarter,” said Alain Bedard, chairman, president and CEO of TransForce. “The difficulties facing our industry are well known – from rising fuel costs and a high dollar to the slowdown in Canadian manufacturing exports. Despite this challenging economic environment, our people were able to maintain and grow the contribution from existing operations while we added more value for shareholders through acquisitions.”
However, net income slipped to $19.3 million compared to $26.3 million during the second quarter of 07. The company noted it experienced some one-time costs associated with converting from an income fund to a corporation.
For the six-month period ending June 30, TransForce reported a 16.8% revenue increase (to $1.1 billion) over 2007. However, net income (after taxes) was down to $38.4 million for the first half compared to $47.2 million over the first six months of 07.
Bedard applauded the company’s performance during turbulent times, and predicted further challenges in the months ahead.
“Despite our strong results in the second quarter and first half of 2008, we expect economic and business conditions to remain difficult for the rest of the year,” said Bedard. “We will remain focused on maintaining our discipline on costs and efficiency. Overall growth will come from acquisitions. We continue to explore strategic acquisition opportunities and will likely have more to announce before the end of the year.”
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