Not a Waste: Niche sectors pull big carriers through recession

TORONTO – Third quarter earnings of some of Canada’s larger for-hire trucking carriers improved over a year ago even though the economic recovery isn’t as robust as some expected.

TransForce’s quarterly earnings, for example, came in above analysts’ expectations, rising to C$25.4 million from $17 million in the same period of 2009.

The carrier’s main truckload and LTL divisions hardly improved — "the economic recovery is not as robust as some predicted," says CEO Alain Bedard — but the overall improvement was propelled by recent acquisitions in higher margin, specialized segments like courier, waste management and oilfield services.

TransForce’s shares have gained about 15 percent since its Canpar division won a three-year courier-services contract with the Government of Ontario late September.

Meanwhile, Mullen Group’s quarterly numbers also topped estimates thanks to increased drilling activity in the ‘patch.
Although it earned about $2 million less than last year ($28.4 million compared with $30.9 million) on an adjusted basis, Mullen earned 27 Canadian cents a share — above estimates of 25 cents a share, according Reuters.

Revenue rose 17 percent to $268.9 million, also hurdling analysts projections of C$265.5 million.

As well, Mullen benefited from a 15 percent spike in drilling activity.

Contrans, another former income trust, also turned its attention more to specialized "recession proof" segments such as waste hauling to offset the impact of dried up general freight demand.