After selling off its waste management business and mothballing its US oil rig moving business, TransForce on Thursday reported increased revenue for the fourth quarter and full year in 2015.
Revenue from continuing operations climbed 23% in 2015, to $3.63 billion. Net income from continuing operations was $145.7 million for the year, up from $116.2 million the year before.
For the fourth quarter, revenue from continuing operations came in at $938.7 million and net income climbed to $40.6 million from $32.4 million the same quarter last year.
“The sudden and rapid decline in the price of oil caught most by surprise in 2015. It caused a significant decline in economic activity in Canada and a serious deterioration in the US energy market,” said Alain Bedard, chairman, president and CEO of TransForce. “Our decentralized and diversified business model enabled us to rapidly adapt to the evolving market conditions. TransForce moved decisively to reduce its exposure in operations affected by the downturn. We accelerated cost-savings initiatives, adjusted supply to demand in several areas and discontinued unprofitable rig moving operations. Our rigorous execution allowed TransForce to conclude the year with a strong free cash flow.”
In 2015, TransForce generated 47% of its revenue from Eastern Canada, 16% from Western Canada and 37% from the US, the company reported.
Bedard said the US economy remains healthy but the Canadian economy continues to suffer from the fallout related to low oil prices. Bedard said he hasn’t yet seen a surge in manufacturing activity in Canada.
“As we look ahead, the US economy remains healthy driven by higher consumer confidence and spending, which bodes well for parcel and courtier and truckload,” he said. “In Canada, low oil prices have continued to depress the economy while the effects of a weak currency have yet to provide a boost to the manufacturing sector. It may take some time to reverse this situation, but we expect benefits from investments in productivity and cost reduction measures will help mitigate these negative effects