COMPETITION WATCH: Trimac makes gains in 2006 despite volatility in fuel, woodchip sectors
CALGARY, Alta. — Despite a $5 million decline in revenue in the fourth quarter, Trimac Income Fund still boasted a modest 3% gain in total revenue for 2006. Total revenue for 2006 was $323.4 million compared with $313.6 million in 2005. Revenues for the fourth quarter ended Dec. 31, 2006 were $79.8 million, compared with $85 million during the same period in 2005.
Company officials said results for the quarter were impacted by reduced activity in the Alberta and British Columbia oil and natural gas sector, severe winter conditions and continued volatility in woodchip volumes.
“As we look back at 2006, we are pleased with the full year’s results as we have completed our third consecutive year of solid growth and improved profitability, said Terry Owen, president and CEO for Trimac. “As we look ahead to 2007, we see continued strength in the western division, despite the likelihood of reduced activity related to the oil and natural gas industry. We expect ongoing volatility in our woodchips volumes due to further restructuring and consolidation in the forestry industry. In our eastern division, we believe that reduced manufacturing levels and the modest economic activity experienced in the latter half of 2006 will continue, resulting in a similar environment in 2007.
The hallmark of Trimac’s strategy is stability through diversification within the bulk-trucking sector, Owen continued. We are diversified by customer, product, industry, and geography. This diversification, together with acquisitions and new business awards, cause us to be optimistic when assessing the outlook for our business.”
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