November 4, 2010 / 5:08 PM / 7 years ago

UPDATE 1-Contrans Q3 misses market on higher expenses

* Q3 EPS C$0.12 vs est C$0.17

* Revenue up 3 pct

* Sees waste mgmt buy adding to future revenue

Nov 4 (Reuters) - Canadian cross-border trucker Contrans Inc’s CSS.TO quarterly profit trailed estimates, hurt by higher operating expenses, accident costs and revenue decline from delayed projects, but said it expects its waste management acquisitions to augment revenue going forward.

The company reported July-September profit of C$4.3 million, or 12 Canadian cents a share, compared with C$6.8 million, or 23 Canadian cents a share, a year ago.

Revenue rose 3 percent to C$101.7 million, helped by a slight rebound in shipping volumes in the construction and steel sector.

Analysts on average had expected the company to earn 17 Canadian cents on revenue of C$105.2 million, according to Thomson Reuters I/B/E/S.

    Operating expenses went up 3 percent to C$80 million.

    Contrans, which reported a week after trucking peers TransForce TFI.TO and Mullen Group (MTL.TO) posted strong results on better performance at their specialized services, is expected to gain from its waste management assets, expects its ProWerx Disposal acquisition to generate annual sales of C$7 million.

    Contrans shares have gained about 2 percent in value since it bought ProWerx earlier in September. They were down 3 Canadian cents at C$8.75 in afternoon trade on Thursday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Unnikrishnan Nair)

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