CALGARY, Alta. — Trimac Income Fund has reported a first quarter revenue decrease of 2.9% compared to last year and a 15.7% drop in EBITDA.
The company said the first quarter of 2008 marked a continuation of the conditions faced in the latter part of 07 strong results in Western Canada offset by reduced woodchip volumes and a weak economy in Central Canada.
Trimac’s trucking revenue decreased $1.2 million in the quarter (to $72.8 million) compared to the previous year ($74 million). Net earnings were $600,000, compared to $1.5 million during the first quarter of 07.
According to its financial statement, “higher fuel costs, the translation impact of a strengthening Canadian dollar, and higher operating costs due to competitive renewals” were all a factor in the first quarter.
“In the first quarter of 2008 our results were a reflection of the continuing divergence of economic conditions in Canada,” said Jeffrey McCaig, chairman, president and CEO of Trimac. “The western division’s results improved over the prior year’s quarter, excluding the volatile woodchip operations, as robust construction and oil and gas drilling activity continued in the quarter. The eastern division’s results reflected the slowing central Canadian economy, which has created excess capacity in the bulk trucking industry within the region, resulting in downward pricing pressure and lower earnings. Management continues to focus on operating costs to ensure we are competitive in the central Canadian marketplace.”
Meanwhile, the company announced Gary Stewart has joined Trimac Transportation Services as senior vice-president and CFO. Stewart began his new role May 12.
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