Canadian Trucking Firms Report 1Q Income Drops Due to Harsh Winter
Canadian firms TransForce Inc. and Mullen Group reported lower first-quarter net income due in part to harsh winter weather.
TransForce said its net income fell to C$5.9 million, or 6 cents per share, from C$18.9 million, or 20 cents, a year earlier. Revenue increased 2.4% to C$770.5 million, the Montreal-based trucking and logistics company said.
“Although business conditions remain challenging due to a weak economy, we are encouraged by certain signs of firmer pricing in the less-than-truckload and truckload segments,” TransForce Chairman and CEO Alain Bédard said in a statement.
In March, TransForce completed its acquisition of Canadian less-than-truckload carrier Vitran Corp.
TransForce announced the merger agreement in December after its offer to buy Vitran for $6.50 per share topped an earlier $6-per-share bid from Manitoulin Transport Inc., another Canadian carrier.
The company also acquired two freight transportation subsidiaries of Clarke Inc., a Canadian holding company. The subsidiaries include a less-than-truckload carrier and a truckload fleet, the companies said. The purchase price is C$88 million, and the transaction is subject to regulatory approval.
TransForce Inc. ranks No. 8 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
Canadian transportation firm Mullen Group said its net income fell to C$36.3 million, or 40 cents a share, an 18.2% decrease from last year’s C$44.4 million, or 50 cents a share. Revenue increased 6.9% to C$412 million.
“Operating income, while up slightly, were negatively impacted by challenges faced by the extreme weather conditions during the quarter. Productivity levels were certainly impacted as was fuel efficiency, repairs and maintenance, costs we believe will normalize as the year progresses,” Murray Mullen, chairman and CEO, said in a statement.
Mullen ranks No. 49 on the Transport Topics 100 list of U.S. and Canadian for-hire carriers.
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