May 6, 2011 / 3:27 PM / 7 years ago

REFILE-UPDATE 1-Contrans Q1 profit narrowly misses on higher expenses

(Refiles to fix typo in paragraph one)

* Q1 EPS C$0.10 vs est C$0.11

* Q1 rev up 8 pct at C$101.1

* Raises quarterly dividend by 25 pct to C$0.08

* Says to expand waste collection ops (Follows alerts)

May 5 (Reuters) - Contrans Group , a trucking company with freight shipping services in Canada, posted quarterly earnings that narrowly missed market expectations, as higher fuel surcharges and expenses put a brake on results.

The Woodstock, Ontario-based trucker, however, raised its quarterly dividend by a fourth to 8 Canadian cents a share, and said there has been an increase in shipping activity.

January-March earnings fell to C$3.4 million, or 10 Canadian cents a share, from C$3.6 million, or 12 Canadian cents a share, a year ago.

Revenue, excluding fuel surcharges, rose about 8 percent to C$101.1 million.

Fuel surcharges rose 34 percent to C$12.5 million. Operating expenses net of fuel surcharges rose 4 percent to C$68.6 million.

Analysts on average expected earnings of 11 Canadian cents a share, on revenue of C$99.4 million, according to Thomson Reuters I/B/E/S.

Contrans, which bought some assets of waste management company BFI Canada Inc last year, said its new waste collection business performed better than expected, and the company plans to expand this segment going forward.

Contrans, like its larger peer Transforce Inc , has been steering away from traditional trucking businesses like cargo and small-freight shipping, which were hit during the recession, and has been moving into niche areas such as collecting garbage and delivering parcels. [ID:nSGE6A10LG]

Shares of the company closed at C$8.85 on Wednesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Don Sebastian)

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