MONTREAL, Que. — TransForce reported a first quarter profit of $3.1 million in the quarter ended March 31, down from $19.1 million for the first quarter of 2008.
Revenue dipped to $452.4 million in the first quarter, compared to $526.3 million in the same period of 2008 – a decline of 14%.
“While our revenues decreased, we have always been focused on efficiency and this has helped to maintain margins near historical levels. We have taken action to further reduce equipment and staffing costs in the face of an economic downturn that was deeper and more sudden than expected,” said Alain Bedard, president and CEO of TransForce.
“The slowdown affected three of TransForce segments in the first quarter, but Package and Courier performed well, holding revenues even with a year earlier. We are managing through this period and are working to remain as profitable as possible and to position our businesses to participate fully in the inevitable recovery.”
The company reported it will continue to focus on improving efficiency, increasing productivity, adjusting to demand and paying down debt. However, it didn’t rule out further acquisitions.
“Although year-over-year revenues have declined, we have lowered costs in the past several quarters and I expect that we will see further results from these efforts as 2009 progresses,” said Bedard. “Debt reduction is a priority, but we will continue to monitor the marketplace for opportunities to make smaller, tuck-in acquisitions as part of our longer-term strategy.”
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