Vitran reports record 2Q revenue, lower profit

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Vitran Corp. Inc. on Wednesday, July 23, announced financial results for the second quarter of 2008 and the six-month period ended June 30:

  • Vitran achieved record revenue of $196.0 million during the three-month period and net income of $4.6 million; in the comparable 2007 second quarter, the company reported revenue of $170.1 million and net income of $5.5 million.
  • During the six-month period, Vitran achieved revenue of $373.5 million and net income of $5.7 million; in the comparable 2007 period, the company reported revenue of $324.2 million and net income of $8.9 million.
  • “We are pleased with Vitran’s top- and bottom-line performance in the 2008 second quarter, especially in light of the continued economic softness and the challenges of operating in the face of record fuel costs,” said Rick Gaetz, president and chief executive officer of the Toronto-based company. “Our sequential earnings growth was highlighted by a significant 370 basis-point improvement in Vitran’s LTL (less than truckload) operating ratio, compared to the 2008 first quarter.”

    Gaetz said the sequential improvements were driven by double-digit growth in the company’s revenue per shipment, and a more than seven percent increase in revenue per hundredweight during the period. “Cross-border revenue also rose 32 percent, compared to the 2007 second quarter,” he said. “Most importantly, these gains were achieved in the face of the successful implementation of our new IT operating system.”

    During the quarter, Vitran announced the launch of its U.S. LTL IT operating platform, which Gaetz said is expected to facilitate revenue growth, increase productivity, streamline the company’s cost structure and help deliver bottom-line improvements. “With this integral piece of our business model now in place, we are focusing on streamlining Vitran’s terminal operations in several Midwestern U.S. states — merging 27 freight facilities into 13 — which is expected to further enhance operating efficiency through the elimination of redundant real estate that came in our PJAX acquisition,” he said. “With the completion of these initiatives, we will turn our attention to cross-selling Vitran’s LTL business both inter-regionally and across the border between the U.S. and Canada.”