Canadian trucking and logistics conglomerate Vitran Corp. watched losses rise for the first half of 2001, but the addition of new trucking clients encouraged the company to buy 1,000 trailers for its trucking subsidiaries.
Vitran’s revenues from continuing operations its second quarter of 2001 exceeded $120.9 million compared to $121.8 million during the same period last year. Vitran posted income of over $4.9 million for the quarter, compared to $10.3 million in the same period last year, but a decision to dispose of the company’s environmental business produced a $4.4 million, including a $3.7 million provision for loss on disposition. The end result was a net loss of $4.1 million forVitran’s second quarter, compared to net income of $3.4 million in the same period last year.
Vitran’s revenues from continuing operations for the first half of 2001 exceeded $240 million compared to $237 million in 2000. For the first half of 2001, Vitran reported a $536,000 loss from continuing operations, versus income from continuing operations of $4.9 million last year, and a net loss of $5.4 million, compared to net income of $5 million last year. This loss was primarily due to the loss from discontinued operations as discussed above, the company said.
Operating income for Vitran’s LTL business in the second quarter was $2.3 million, compared with $6.8 million last year. The operating ratio for this unit during the quarter was 97.5%, versus 92.9% in 2000. Vitran’s truckload business unit achieved operating income of $542,000, on a similar level of revenue compared to the year-ago quarterly period. Vitran Logistics and Intermodal recorded a small operating loss on a slight year-over-year decline in revenue.
Despite those losses, the company’s U.S. LTL subsidiary – Vitran Express – went ahead with the purchase of 1,000 new 48-foot or “Pup” from Wabash Trailer. The purchase came as Vitran Express signed two new clients – Avery Dennison and Pearson Education – to multi-year freight distribution agreements with Vitran. Financial terms of the freight agreements were not disclosed.