Vitran, a Toronto-based transportation and supply chain firm, increased profit 566 percent to $2 million in the third quarter as higher revenue and reduced debt payments eliminated an operating loss that brought net income in last year’s third quarter to $300,000.
The company’s less-than-truckload segment posted income from operations for the 2010 third quarter of $3 million compared with $1.5 million in the comparable period a year ago. LTL shipments increased 4.9 percent, and tonnage was up 4.6 percent.
The supply chain operation posted its highest ever income from operations of $2 million compared with $1.7 million a year earlier. Activity improved with the commencement of operations in two new facilities, Albuquerque, New Mexico and Salt Lake City, Utah.
By The Numbers: U.S. Surface Trade With Canada.
Income from operations in the truckload segment declined to $70,000 from $175,000 in 2009. The drop was due to higher than anticipated accident costs and a lack of qualified owner operators, Vitran said.
The higher revenue allowed Vitran to reduce debt $7.8 million since Dec. 31, 2009. Correspondingly, interest rates declined and net interest payments in the third quarter dropped to $1.8 million from $2.6 million.
"We continue to be encouraged with the activity growth in relationship to our unrelenting efforts to increase yield to an acceptable level within our LTL segment,” said Rick Gaetz, president and chief executive officer.
“Most notably our U.S. LTL business unit posted monthly sequential gains in revenue per hundredweight throughout the quarter which led to an 8 percent year-over-year improvement in quarterly revenue. We believe we can continue to increase yield through the fourth quarter of 2010 and further improve the year-over-year results," Gaetz said.
-- Contact Thomas L. Gallagher at email@example.com.