Vitran says 2Q net income up 293%

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Vitran Corp. Inc. on Thursday, July 22, reported a 293 percent increase in net income to $1.7 million on revenues of $179.0 million for the second quarter ended June 30. In the comparable 2009 three-month period, the company achieved net income of $0.4 million on revenue of $158.7 million. The company said the majority of the consolidated increases in revenue and profitability were driven by significant improvements in the less-than-truckload segment.

The LTL segment posted income from operations of $3.9 million with an OR (operating ratio) of 97.4 percent compared to income from operations of $1.2 million and an OR of 99.1 percent. Shipments and tonnage improved 6.1 percent and 9.7 percent respectively in the LTL segment.

The Supply Chain Operation posted income from operations of $1.4 million and an OR of 93.3 percent compared to income from operations of $1.4 million and OR of 92.3 percent. The Truckload segment achieved income from operations of $184,000 compared to $256,000, and the Truckload OR was 98.0 percent compared to an OR of 97.0 percent.

“We continue to be pleased with the improvement in the LTL segment’s results and strong performance in the Supply Chain Operation,” said Rick Gaetz, president and chief executive officer of Toronto-based Vitran. “Our LTL tonnage increased 10 percent for the quarter, but most importantly, our yield grew sequentially each month from February 2010. Our LTL yield improved 2.1 percent from the beginning of the quarter to the end of the 2010 second quarter. We believe we can continue to increase yield through the third quarter.”

Gaetz also announced that the company’s Supply Chain Operation has secured contracts with major U.S. retailers to commence operations in two Western United States markets during the third quarter of 2010. “For the third consecutive quarter, Vitran was able to reduce its consolidated leverage ratio resulting in another 50 basis point reduction on our syndicated debt margins starting in the third quarter of 2010,” he said. “Revolving and term debt margin reductions have accumulated to 150 basis points over the past three quarters.”