U.S./Canada
Transportation Revenues
68% of Vitran's transportation revenues are generated in the
United States while 32% are generated in Canada. |
Divisional
Transportation Revenues
Vitran's LTL division revenues grew 8% in 2000 and now
represent 78% of total transportation revenues. |
|
Revenue
in the LTL business unit grew by $29.3 million, or 8.4%, from $346.8 million to $376.1
million. Improvements were achieved in both business volume and yield. Total shipments
increased by 6.9% while tonnage and revenue per hundred weight both increased by 4.1% in
2000. The revenue growth coupled with an improvement of operating unit OR from 94.3% to
94.0% due to cost controls and improved density resulted in an increase of 14.6%, to $22.7
million in operating income in 2000. Revenues in the Logistics and Brokerage division decreased from $66.8
million to 57.3 million in 2000 while operating income was consistent with 1999 at $0.7
million. The logistics unit had an excellent year increasing both revenues and income from
operations as a result of significantly expanding the book of business. However, these
gains were offset by reductions in revenue and operating income at the intermodal and
highway brokerage unit, due to the full year impact of a decline in business with two
large volume customers.
Revenue for the U.S. TL division
decreased slightly in 2000 by 3.8% to $47.6 million from $49.5 million recorded in 1999.
The demand for TL service remained very strong throughout 2000, but the difficulty of
attracting and retaining quality owner/operators dropped the total loads for the year by
6.1%, thus limiting revenue growth. In addition to the decline in revenue, increased
trailing fleet lease costs and higher than normal accident claim expenses resulted in an
operating income decline of 36.1% from $3.3 million to $2.1 million in 2000.
The Environmental Services
division achieved record revenue of $27.5 million compared to $16.7 million in 1999, but
generated a small loss in 2000 compared to an operating profit of $1.1 million the
previous year. The below plan results were primarily due to new plant start-up challenges.
LTL Revenue growth of
8.4% was driven by both increased volume and improved yield. |
