Profits at TransForce, the fast-growing Canadian express parcels and freight transport group,grew strongly in the first quarter of 2012 thanks to improved results in its packages and LTL
operations.The Montreal-based company increased its Q1 revenues by 40% to C$788.2 million, driven mostly bythe acquisitions of Loomis Express (formerly DHL Express Domestic Canada), US express operatorDynamex and freight firms. Its operating profit nearly doubled to C$47.4 million, representing a 6%profit margin, and the net profit soared to $24.7 million from $9.3 million a year ago.
The Package & Courier division, now based around Loomis and Dynamex, increased revenues toC$286 million, up from C$149 million, while its operating profit improved to C$13.8 million fromthe previous year’s C$9.2 million.
The LTL business drove into the black with a small C$6 million profit on revenues of C$166million while the truckload and energy division both improved profits significantly.
“TransForce generated solid results and built further shareholder value in the first quarter of2012 by adhering to its core operating principles. Our constant drive to enhance operatingefficiency and asset utilisation led to a strong increase in our key EBIT metric,” said AlainBédard, Chairman, President and Chief Executive Officer of TransForce.
“On the operating front, we remain proactive with regards to profit enhancement measures atLoomis Express and Dynamex, as we strive to rapidly achieve adequate margins. In parallel, wecontinue to further optimize our Less-Than-Truckload (“LTL”) and Truckload (“TL”) asset base and weare pleased to report improved margins in these two business segments, notwithstanding lowerrevenue in the TL segment. Finally, our strong performance in services to the energy sector wasdriven by improved efficiencies and cost controls in our existing operations and the acquisition ofIE Miller.”
Looking ahead, Bédard added: “We remain of the opinion that economic conditions will continue toonly marginally improve in 2012. As always, our priorities are to further improve efficiency andasset utilisaation, as well as generate strong cash flow to continue debt reduction. We willachieve these objectives by adhering to our operating principles, maximizing synergies in ournetwork and continuing our transition to an asset light business model.”
