TransForce Second Quarter Profit, Revenue Jump
MONTREAL, QC – The trucking and logistics giant TransForce Inc. reported higher profits and revenue in the second quarter of the year but has lowered expectations for the remainder of 2015.
Net income was $61.1 million compared to $37.3 million a year earlier as total revenue increased 23% to $1.097 billion.
For the first six months of the year net income was $78.2 million versus $43.3 million during the same time in 2014 while revenue increased 28% to $2.128 billion.
“TransForce delivered solid operating results driven by the contribution from last year’s selective acquisitions. This strategy more than offset the impact of a weaker economy on business volumes and of lower oil prices, which affected both our truckload divisions servicing the oil and gas industry and our U.S.-based rig moving activities,” said Alain Bedard, chairman, president and CEO.
As for the current quarter he said he expects growth in the company’s main operating markets to be restrained because of North American economy that is more sluggish than earlier anticipated.
“Although the U.S. economy is relatively healthy, lower oil prices have led to an economic contraction in Canada, a situation which threatens to persist through 2015. This will likely more than offset the momentum in Central Canada’s manufacturing sector, resulting from the benefits of a weaker Canadian dollar,” Bedard said.
Consequently, TransForce has adjusted expectations and now expects total revenue this year to reach $4.3 billion, down from its previous forecast of between $4.4 billion and $4.5 billion, and basic adjusted earnings per share to be in the range of $1.97 – $ 2.12, down from its earlier projection of between $2.15 and $2.30.
At the end of last month, TransForce had 15,630 power units, including 9,580 independent contractors, and 18,090 trailers. This compares to 11,740 power units, including 7,500 independent contractors, and 12,460 trailers end of June 2014.
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