TransForce Q4 sales up 36% on acquisitions


Freight transporter TransForce (TSE:TFI) Wednesday posted better-than-expected fourth-quarter earnings as revenue spiked 36 percent, helped by acquisitions and its package and courier division.

The Canadian provider of trucking, fleet management and warehousing services, said total revenue jumped 36 percent to $735.5 million, but missed analysts mark of $758 million.

TransForce, which bought IE Miller, Loomis Express and Dynamex last year, said they helped sales by about $202 million.

Stripping away these acquisitions, revenue declined by $6 million, primarily because of TransForce’s ongoing discipline in regards to capacity and lower volume.

For the quarter ended December 31, the company said profits rose to $41.7 million, or 41 cents per share, compared with a year-earlier profit of $34.8 million, or 36 cents per share.

Excluding one-time items, adjusted profit rose sharply by 63 percent to $33.9 million, or 34 cents per share.

Analysts polled by Bloomberg were predicting earnings of 29 cents.

Revenue at its package and courier division more than doubled to $301.4 million from $118.3 million, while sales at its energy services unit grew to $91.7 million. The less-than-truckload unit saw revenues slip slightly to $124.6 million from $127.1 million.

Looking ahead, TransForce said it believes the 2012 economic environment will resemble last year, but with conditions continuing to improve at a measured pace.

In a statement, the company said: "While even this moderate recovery should strengthen our results, further improvements in efficiencies and the leveraging of our enhanced density will build additional shareholder value."

TransForce’s share price rose nearly five percent to $17.95 each in trade on the Toronto Stock Exchange on Wednesday.

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