MONTREAL (Canadian Press) - Trucking company TransForce is adding to its energy services division with the acquisition of Texas firm E.L. Farmer, which provides pipe storage and hauling services for the state's oilfield industry.
The transaction is expected to generate annual revenues of about $70 million, but TransForce didn't make the purchase price public when it released its second-quarter results on Monday.
Transforce (TSX: T.TFI
) said it had lower revenues of $792.3 million, down 2.4 per cent from $812 million in the same quarter of last year due to weakness in its energy sector. TransForce hauls drilling and other equipment for the oilfield industry.
Net profit was also down at $26.6 million versus $34.1 million in the same quarter of 2012.
Adjusted earnings per share were 39 cents in the quarter, however, up a penny from the same quarter last year on an adjusted net income of $37.4 million versus $37.8 million year-over-year.
"In the United States, we are progressing well with the integration of our same-day Package and Courier operations and the market for these services is growing, but softness persists in the energy sector and we do not see any short-term significant improvement," chief executive Alain Bedard said.
"Meanwhile, industry conditions remain difficult in Canada across all business segments and we do not expect the situation to improve for the remainder of 2013," he said.
TransForce also offers courier and trucking services, including specialized services to the energy sector and waste management to customers across Canada and the United States.