MONTREAL – TransForce Inc. (TSX:TFI) has reported a big drop in fourth-quarter profits, citing harsh winter weather and initiatives to cut costs that increased expenses by some $7 million.
The Quebec-based trucking and logistics company says net earnings fell to $12.3 million or 13 cents per share from $36.1 million or 37 cents per share in the year-earlier period even as revenue increased to $792.6 million from $778.4 million.
It said the 1.8 per cent increase in revenue in the quarter ended Dec. 31 was due to higher revenue in its package and courier segment as a result of the company’s enhanced same-day delivery network in the United States.
Earnings before taxes before intangible asset impairment amounted to $43.5 million, or 5.5 per cent of total revenue, versus $64.1 million, or 8.2 per cent of total revenue in the same period a year earlier.
“The reduction reflects increased operating expenses due to harsh winter weather in December, expenses related to facility closures and severance in the P&C segment and less-than-truckload segments, as well as a loss in the energy sector due to the winding down of Canadian rig moving operations and the scaling down of corresponding U.S. activities,” it said.
Adjusted net income was $21.5 million, or 23 cents per diluted share, versus $37.8 million, or 39 cents, diluted, last year.
For the full year, net income was $101.7 million or $1.08 per share on revenue of $3.1 billion, down from $154.2 million or $1.55 per share on 2012 revenue of $3.14 billion.