Transforce earnings go up 43% in 2011

It’s been a 24-year haul since cheese king Lino Saputo Sr. took control of a failing Montreal trucking company, renamed it Transforce Inc. and installed his vicepresident of finance, Alain Bédard, to turn it into Canada’s leading transportation and logistics group.

Bédard, after a string of acquisitions in Canada and the U.S., reported Thursday that Transforce had 2011 revenue of $2.7 billion, up 34 per cent from 2010, and adjusted earnings of $102.5 million, up 43 per cent.

Transforce operates package and courier, less-than-truckload, truckload and specialized services units – the latter includes energy, waste-management and logistics businesses. But Bédard really likes the special hauling needs of the oil and gas sector, which has prospered through the long recession.

“We’re dealing with the big boys south of the border, and running the Alberta end from our Houston office,” he said. “It’s all about rig relocation and now we’re North America’s leader in that game. We want to diversify, like Alberta’s Mullen Group is doing.”

Bédard also said his next deal could come in the package and courier same-day delivery sector, which has good margins and doesn’t require big, expensive truck terminals. But the truckload and less-than-truckload units need a sustained economic pickup, especially in manufacturing. Transforce also posted first-quarter earnings of $30.2 million or 31 cents a share, compared to $14.9 million or 15 cents a share a year earlier, and revenue of $788 million, up 40 per cent. The latest quarter included Bedard’s latest acquisition. The quarterly dividend was raised to 13 cents from 11.5 cents a share.

“We’ll continue to apply excess cash to repay debt and to make sure we’re ready to seize acquisition opportunities,” he said.

Last year, he spent almost $400 million on takeovers.

“It’s highly competitive out there and we’re counting on efficiency and careful fleet management to keep the growth engine humming.”