April 26, 2012 / 5:59 PM / 6 years ago

UPDATE 2-Trucker TransForce profit doubles on courier

* Raises quarterly dividend to C$0.13

* Package and courier unit rev up 92 pct at C$285.8 mln

April 26 (Reuters) - Canadian trucker TransForce Inc’s quarterly profit more than doubled, helped partly by robust performance at its package and courier unit, sending its shares up 7 percent to a more than five-year high.

Package and courier unit revenue nearly doubled to C$285.8 million during the first quarter.

TransForce is selectively acquiring companies allowing it to build some very high value-added services that will contribute to bottomline, said RBC Capital Markets analyst Walter Spracklin.

The company bought the domestic business of DHL Express Canada for C$25 million last year.

It acquired certain assets of Peak USA Energy Services Ltd for more than C$10 million in April to bolster its energy services unit.

Spracklin said overall trucking industry is fairly flattish in its outlook with not much room for pricing and volume growth.

The company also increased its quarterly dividend by 13 percent to 13 Canadian cents per share.

For the January-March quarter, TransForce’s net income rose to C$30.2 million, or 31 Canadian cents per share, from C$14.9 million, or 15 Canadian cents per share, a year ago.

On an adjusted basis, the company earned 25 Canadian cents per share. Revenue rose 40 percent to C$788.2 million.

Rival Mullen Group Ltd posted a nearly 20 percent jump in first-quarter profit on Wednesday.

TransForce, which is valued at $1.68 billion, last posted a loss in 2007.

The Montreal, Quebec-based company’s shares, which have risen about 54 percent in the last six months, were up 4 percent at C$17.99 on Thursday on the Toronto Stock Exchange. They touched a high of C$18.57.

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