Trimac results mirror economy

CALGARY — If the Q2 results for one of Canada’s biggest carriers is any indication, the western half of this country is still the powerplant and the eastern economy the economic albatross.

And according to the man at the top of that company, it’s going to stay that way for a while yet. Things don’t look much better for eastern and Central Canada.

In reporting financial results for the period ending June 30, the two arms of Trimac Income Fund and Trimac Transportation Services Limited Partnership-stated that the western division experienced revenue growth of about 20.3 percent in British Columbia and the Prairies Provinces. The Eastern Division on the other hand suffered a “modest” decline in revenues.

“Predominantly,” a statement from the company said, “a result of business losses resulting from the highly competitive market conditions and lower revenue with existing customers due to general economic weakness in Central Canada.”

The strong growth in B.C. was partially offset by a 22.5 percent decline in the woodchips operations, and although Trimac division Bulk Plus Logistics (BPL) experienced strong revenue growth, its profit was eroded by decreased transload revenue and a customer contamination claim.

The Trimac Partnership also purchased Ken Angeli Trucking Ltd., in April and certain assets of Logistics Express Inc., in June.

In commenting on the results for the second-quarter, Trimac President and CEO Terry Owen President said he was generally pleased with the new acquisitions.

“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,” he said.

“As we have indicated in previous quarters, the forestry industry continues to struggle with the strengthening Canadian dollar and other adverse industry conditions, which has resulted in further mill closures in Ontario and weaker demand for transportation throughout our woodchips operations.

Results in our eastern division were negatively impacted by business losses in the cement, dry bulk, and chemical product lines; general economic weakness in central Canada.”

In commenting on the future activities and outlook, Owen noted: “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.”