Truckload write-offs cause operating loss for TFI in Q2

TFI International reported revenues of $1,232m in Q2 of 2016. This represented a 26.0% year-over-year increase in revenues. Adjusted EBITDA also grew, by 30.4% year-over-year, to $154m. However, it made an operating loss of $47.2m due to a $130m goodwill write-off of its US truckload segment.

TFI’s Package and Courier segment, its largest business by revenue, saw revenue growth of 2.6% to $324m. Its operating profits was $34.2m, up 10.0% on last year as a result of cost reduction measures in Canadian next-day activities and a better business mix for Canadian and U.S. same-day activities.

The Less-Than-Truckload and Truckload segments saw revenue growth of 9.8% and 44.9% respectively. It said the Canadian market remained strong, but the US market was more difficult, negatively affecting volumes and rates. Corresponding operating profit growth rates stood at +64.6% and -25.3%. Finally, its Logistics segment saw revenue growth of and operating profit growth of 36.9% and 37.0% respectively.

Alain Bédard, Chairman, President and Chief Executive Officer of TFI International, said. “Although TFI International’s results remain affected by difficult conditions in the U.S. Truckload market, we are pleased that benefits from earlier initiatives aimed at improving efficiency and generating superior returns are materializing in all other operating segments.”

Source: TFI International