November 1, 2011 / 12:33 PM / 7 years ago

UPDATE 3-TransForce sees oil energizing 2012 profit

(Adds 2012 forecast from conference call, share movement)

* Q3 adj EPS C$0.35 vs est C$0.26

* Q3 rev C$743 mln vs est C$692.9 mln

* Expects 2012 profit to rise 10-15 pct

* Sees strong energy segment in 2012

Nov 1 (Reuters) - TransForce Inc posted better-than-expected quarterly results and forecast a 10-15 percent rise in 2012 profit, as the Canadian trucker expects its energy segment to perform better.

The Montreal-based company said high activity in oilfields in Canada and the United States will drive revenue for the energy sector, which rose 21 percent in the third quarter.

TransForce’s less-than-truckload segment, which contributed about a fifth to the revenue, is also expected to fare better next year as the company sees the market improving.

However, the company, which has been betting big on the courier and packaging business, said its buy of Loomis Express earlier this year to boost the segment will yield profits only next year.

Loomis Express, which added 10 percent to the revenue, posted a loss in the quarter, hurt by higher costs. The company said it planned to cut costs at the business.

“No question, very early in 2012 (Loomis Express) will breakeven, and by the end of next year I am sure we will be tracking with a profit of 2-3 percent,” Chief Executive Alain Bedard said on a conference call.

On an adjusted basis, TransForce earned 35 Canadian cents a share, while analysts on average had expected 26 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 49 percent to C$743 million, ahead of estimates of C$692.9 million.

Shares of the company were down 1.5 percent at C$11.85 on Tuesday, tracking losses in the larger TSX index . ($1 = 0.993 Canadian Dollars) (Reporting by Aftab Ahmed in Bangalore; Editing by Joyjeet Das, Maju Samuel)

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