William B. Cassidy | Jul 26, 2011 12:39PM EDT
Canadian less-than-truckload operator Vitran lost $2.3 million in the second quarter, despite a 23.1 percent increase in revenue to $208.9 million.
Adding a first quarter net loss of $200,000, Vitran’s net loss for the first half of 2011 was $2.5 million, compared with a $799,000 net profit in the first half of 2010.
The company lost $43 million in 2010, mostly in the fourth quarter.
The company ran into trouble with its U.S. LTL operations as it integrated newly acquired Milan Express into its network and faced higher operating costs.
The acquisition is expected to add about $70 million to Vitran’s annual revenue and extend its LTL network from Canada to the Florida state line.
However, at the close of the acquisition in February Milan had 2.5 days of freight backlogged, Vitran President and CEO Rick Gaetz said in a July 21 statement.
He said the company "managed the freight current, and improved our U.S. LTL operation as the quarter evolved,” increasing tonnage 15.8 percent year-over-year.
“But the results were impacted in the front half of the second quarter most significantly,” Gaetz said, compounded by higher than expected operating costs.
He said Vitran’s “principal focus” will be to improve the performance of its U.S. LTL operation, a next-day and second-day delivery network in 29 states.
The Toronto-based carrier’s LTL revenue rose 17 percent to $178.4 million, while shipments handled rose 9.9 percent and revenue per shipment rose 6.4 percent.
The carrier’s weight per shipment also rose 10.6 percent. LTL revenue per hundredweight or yield, which reflects pricing and fuel surcharges, rose 5.8 percent.
Supply chain revenue increased 46.1 percent to $30.5 million. The logistics division raised its operating profit 66.8 percent to $2.3 million in the quarter.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc
