Vitran's Q2 loss widens on weak U.S. LTL market
(Reuters) - Canadian trucking company Vitran Corp VTN.TO VTNC.O posted a wider second-quarter loss on weakness in its less-than- truckload (LTL) shipping business in the United States.
Net loss widened to $4.2 million, or 25 cents per share, compared with net loss of $2.3 million, or 14 cents per share, a year earlier.
The company, which operates in United States and Canada, lost 14 cents per share during the quarter on an adjusted basis.
Revenue rose 2 percent to $213.1 million.
Operating loss at its LTL segment almost tripled to $3.3 million in the quarter.
In LTL shipping, the company picks up loads, sorts and rearranges them and makes various deliveries. This differs from truckload, in which one driver picks up a load and stays with it through to its final destination.
"Our U.S. LTL operation continues to be our main challenge, priority and opportunity. Although U.S. LTL operating results in the second quarter improved approximately 10 percent from the 2012 first quarter, the improvement was much less than we anticipated," Chief Executive Officer Rick Gaetz said in a statement.
The LTL industry has had some difficulty in recent years with carriers cutting prices and the global economic gloom weighing on their growth.
Shares of the Toronto, Ontario-based company closed at C$5.77 on Wednesday on the Toronto Stock Exchange.
(Reporting By Krithika Krishnamurthy in Bangalore; Editing by Sreejiraj Eluvangal)
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