TORONTO, Ont. — Vitran Corporation achieved record revenue of $198.6 million in the third quarter, but net income fell to $2.1 million. In the comparable 2007 third quarter, the company reported revenue of $171.9 million and net income of $3.1 million.
“In the 2008 third quarter, the economic slowdown and significant industry pricing pressures negatively impacted our LTL operating ratio, and partially offset record revenues that were driven by a strong performance at our logistics unit and 35% growth in the company’s LTL cross-border revenue,” said Vitran president and CEO Rick Gaetz.
“Despite the ongoing economic softness being experienced throughout North America and the uncertainty of when we will see a definitive turnaround, Vitran is operating more efficiently and effectively today as a result of several recently completed internal initiatives, including the successful launch of our hybrid US LTL IT platform, the standardization of the US LTL wage and benefit structure, and the recent openings of new cross-dock and retail supply chain facilities, located in Toronto.
“I am also pleased to report that Vitran’s overlap terminal integration was successfully completed one week ahead of schedule, on October 12, 2008. With the massive, multi-phase integration project now behind us, we are in a more favourable position to deal with the challenges of a slowing North American economy,” said Gaetz.
LTL revenue grew 10.6% compared with the same period last year to $166.2 million, while Vitran’s logistics segment increased its revenue by 70.7% to $23.4 million.
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