MONTREAL, QC – TFI International remains “cautiously optimistic” about the North American economy because of low unemployment, healthy consumer spending, and a bit of a rebound in energy-related investments, says Alain Bedard, chairman, president and Chief Executive Officer. The company just doesn’t expect any significant improvement before the end of the year.
Canada’s largest fleet faced the reality of a struggling U.S. truckload market in the first quarter of 2017, as well as costs relating to its recent acquisition of CFI — formerly known as XPO Logistics’ North American truckload business. But other business segments reported “significant profitability” with year-over-year improvements, Bedard said.
The profitability of Less-than-Truckload activities is improving, and even the operating margins in the truckload segment were steady when excluding CFI. Specialized divisions including those serving the energy sector also improved, as did logistics activities.
TFI International rebranded its last-mile package and courier divisions as TForce Final Mile during the quarter as well, and that should help the company capture new e-commerce opportunities, he added.
The company’s continuing operations reported a 22% increase in revenue before surcharges in the frist quarter, to $1.06 billion, while adjusted operating income from continuing operations was up 5% to $42.1 million.
TFI also disposed of $15.8 million in assets.
increase in revenue before surcharges, to $1.06 billion, while adjusted operating income from continuing operations was up 5% to $42.1 million.