TORONTO, Ont. — Revenue was up, but net income took a hit at Vitran Corporation for the three- and six-month period ending June 30.
The company reported record revenue of $196 million (all figures US) for the second quarter, with net income of $4.6 million. That compares to 2007 revenue of $170.1 million for the same quarter and a net income of $5.5 million.
For the six-month period ending June 30, revenue was $373 million compared to $324 million for the same period last year, but net income was $5.7 million versus $8.9 million in the first two quarters of 07.
“We are pleased with Vitran’s top and bottom line performance in the 2008 second quarter, especially in light of the continued economic softness and the challenges of operating in the face of record fuel costs,” said Vitran president and CEO Rick Gaetz.
The company experienced double-digit growth in revenue per shipment and a 32% increase in cross-border revenue in the quarter.
The company has implemented a new LTL IT operating platform, which it says will allow it to streamline its terminal operations in several Midwestern US states, merging 27 freight facilities into 13.
Vitran’s LTL segment generated an 11.6% increase in revenue in the second quarter compared to 07. LTL revenue per shipment rose 10.2% and tonnage increased 2% during the quarter, even though the number of shipments declined 0.8%.
On the logistics side, Vitran increased income 13.1% during the second quarter. The truckload segment proved to be the most challenging. TL income was down from $405,000 in 07 to $321,000.
Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry. All posts by Truck News