Canadian courier and logistics group TransForce has reported strong second-quarter revenue andprofit growth, including from the package and courier activities that make up the company’s largest
business unit, thanks to a mixture of acquisitions and optimisation initiatives.Total second-quarter revenue increased 25% to C$812 million (€660 million), mainly as a resultof acquisitions, including the Loomis Express courier and package business. Second-quarter EBITrose 39% year-over-year, reaching $68.6 million, or 8.5% of total revenue, up from 7.6% of totalrevenue in the corresponding period a year earlier.
All business segments delivered a higher year-over-year EBIT in monetary terms, TransForce said.Adjusted net income increased 45% to $37.8 million.
Second-quarter revenue from the Package and Courier unit increased by almost 31% to $294.2million, while the segment’s first-half revenue was up by 55% to $580 million.
Profit from operating activities (EBIT) for the Package and Courier unit increased by more than25% to $20.8 million in the second quarter, although the margin slipped from 7.4% to 7.1%. For thehalf year, EBIT for the Package and Courier unit increased by almost 34% to £34.7 million, withmargin slipping to 6.0% from 6.9% the previous year.
For the six-month period ended June 30, 2012, total group revenue reached $1.6 billion, up 32%from the same period a year earlier. EBIT rose 58% to $116.1 million, or 7.3% of total revenue, upfrom 6.1% of total revenue last year. Adjusted net income was $62.5 million, up 77% from the firstsix months of 2011.
Alain Bédard, chairman, president and CEO, commented: “TransForce achieved a strong 39% increasein its key EBIT metric despite market conditions that resulted in flat volume and limited pricingpower. Approximately 50% of the EBIT increase reflects our on-going drive to optimise efficiencyand asset utilisation, while the other half is from strategic acquisitions.
“In Package and Courier, margins are maintaining their gradual sequential increase, as wecontinue to aggressively implement profit enhancement measures to return to profitability levelsachieved prior to the Dynamex and Loomis Express acquisitions. Our constant focus onmaximising return on assets and discipline with regards to capacity in the less-than-truckload(LTL) and truckload (TL) segments continues to pay off, as margins improved substantially despiteslightly declining revenue.”
