Vitran posts $2.3M 2Q net loss from continuing ops

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Vitran

Vitran Corp. Inc. on Thursday, July 21, reported a 23.1 percent increase in revenue to $208.9 million for the quarter ended June 30 compared to $169.7 million for the second quarter of 2010. Adjusting for the impact of foreign exchange on Vitran’s Canadian operations, consolidated revenue increased 20.5 percent. Vitran recorded a net loss from continuing operations of $2.3 million compared to net income from continuing operations of $1.6 million.

Vitran reported a 20.6 percent increase in revenue to $394.3 million for the six months ended June 30 compared to $326.9 million for the same period in 2010. Adjusting for the impact of foreign exchange on Vitran’s Canadian operations, consolidated revenue increased 18.4 percent. Vitran recorded a net loss from continuing operations of $2.5 million compared to net income from continuing operations of $0.3 million.

“We are disappointed with our consolidated second-quarter results,” said Rick Gaetz, president and chief executive officer of the Toronto-based company. “However, our Canadian LTL operation posted strong results, and our Supply Chain Operation had another record quarter.”

Gaetz said the company’s U.S. less-than-truckload operation “had a significant challenge” working out of its first-quarter weather issues that were compounded by the acquisition of Milan on Feb. 19, which at close had about 2.5 days of freight backlogged. “We managed the freight current and improved our U.S. LTL operation as the quarter evolved, but results were impacted in the front half of the second quarter most significantly,” he said.

Gaetz said the U.S. LTL operation’s tonnage grew 15.8 percent but was offset by higher-than-expected labor, maintenance and worker’s compensation expenses. “We are very pleased with the performance of the Canadian LTL operation and Supply Chain Operation, and our principal focus will be to raise our U.S. LTL operations to this same level of excellence,” he said. “I am also pleased to announce that our Supply Chain Operation has secured a contract with a major retailer to commence a dedicated distribution center in Sacramento, California, at the end of September 2011.”