CALGARY — Trimac Income Fund reported financial results for 2007 with revenue growth limited by a decline in certain markets.
While revenues dropped slightly in the fourth quarter from the previous year, revenues grew to $330 million for 2007, up from $323 million in 2006.
Results for the fourth quarter were impacted by reduced activity in the Alberta and B.C. oil and natural gas sector, winter weather conditions, continued volatility in woodchip volumes and weak economic conditions in central Canada. The western division achieved a 7.4 percent increase in revenue over the fourth quarter of 2006, while the eastern division revenue declined by 11.3 percent from the prior year’s fourth quarter.
In 2007, Trimac completed three acquisitions including the purchase of Ken Angeli Trucking in April, the purchase of certain assets of Logistics Express in June, and the purchase of the petroleum hauling business and related assets of Stan Fergusson Fuels in November.
“Looking ahead to 2008, management sees a continuation of current economic conditions in the western division, although oil and natural gas-related activity is expected to be lower than in 2007,” says Jeffrey McCaig, chairman, president and CEO of Trimac. “Management expects continued volatility in its woodchips volumes due to further restructuring and consolidation in the forestry industry. In the eastern division, management believes the reduced level of manufacturing activity that central Canada experienced in 2007 may not change materially, resulting in a similar operating environment in 2008.”
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