CALGARY, Alta. — Trimac experienced a mixed second quarter, with strong revenue growth in B.C. and the Prairies tempered by weaknesses in its woodchip operations and the overall economy in Central Canada.
Revenue was up 20.3% in B.C. and the Prairies, however, that was partially offset by a 22.5% drop in woodchip revenue. In the Eastern division, Trimac experienced a decline in revenue resulting in losses the company chalks up to a highly-competitive market and a general overall weakness of the Central Canadian economy.
During the second quarter, Trimac concluded its acquisition of Ken Angeli Trucking and also acquired assets of Logistics Express.
“In the quarter, the Partnership recorded improved results in difficult market conditions. The western division achieved solid results, eastern division profitability deteriorated slightly due to difficult economic conditions and BPL’s (Bulk Plus Logistics) results were impacted by transload operating challenges, said Terry Owen, president and CEO of Trimac. Overall, our strategy of diversification by product, customer, industry and geography enabled us to deliver improvements in revenue, EBITDA, and net income over the same time period in the prior year.
Declines in the cement, dry bulk and chemical lines were felt by Trimac during the second quarter, however Trimacs logistics business experienced strong growth.
“As management looks ahead to the remainder of 2007, we expect favourable economic activity levels in B.C. and the Prairie Provinces, offset by continued volatility in the woodchip operations, Owen said. In the eastern division, management believes that a higher Canadian dollar will contribute to a reduced level of manufacturing activity and slower economic growth in central Canada, resulting in a highly competitive operating environment for the remainder of 2007. Management remains confident that our strategy of diversification within the bulk trucking sector will continue to provide the framework for our success in the future.”
Trimacs trucking business logged revenues of $78.7 million during the second quarter, compared to $74.8 million the same time last year. For the six months ended June 30, Trimac recorded $152.7 million in revenue for its operations compared to $151 million the first six months of 2006.