WOODSTOCK, Ont. — Although Contrans’ income fund days are behind them, the days of growing the company are not.
Revenue for the Contrans Group hasn’t quite returned to pre-recession levels, things are moving in the right direction.
The Ontario carrier recorded revenue in the second quarter of 2010 of $101 million, compared to $87.4 million from the same quarter last year. For the first half of the year, Contrans has brought in $194.8 million, which is an increase of $19.4 million from 2009’s results.
"Aggressive sales efforts produced new business and contributed to an 11 percent increase in quarter over quarter revenue, net of fuel surcharges,” stated Stan Dunford, Contrans’ chairman and CEO. “In addition, improved equipment utilization and ongoing cost rationalization have helped to substantially restore our profit margins.”
New customers generated approximately $3.3 million of revenue in the second quarter, while the acquisition of Truboy Freight International in the first quarter of 2010 generated revenue of $0.7 million the latest financial results.
Fuel surcharge revenue increased this second quarter compared to last year, as a result of higher fuel prices and increased volumes, said the company.
"In response to anticipated growth opportunities and favourable market conditions, Contrans raised $53 million in a bought deal that closed on June 2, 2010," said Dunford. "These funds bolstered a balance sheet that was already very strong. I am excited about the company’s prospects to make strategic acquisitions and the potential for delivering greater long-term value to our shareholders."
Have your say
We won't publish or share your data