TFI International (NYSE:TFII), Canada’s largest trucking company, reported a more than 30% jump in profits during the third quarter compared to a year ago as logistics operations and government wage subsidies offset softness from its truckload and less-than-truckload businesses.
Montreal-based TFI brought in C$110 million in net income during the quarter, or an adjusted C$1.25 per share, on C$1.25 billion in revenue. Net income increased by 34% versus a year ago, while revenue fell by 4%.
The results beat analysts’ expectations of 90 cents per share and $1.18 billion in revenue, according to Yahoo Finance. Even without $22.4 million in Canada Emergency Wage Subsidy payments, TFI still had better performance than a year ago.
“TFI International had an outstanding quarter as we continue to navigate through an unprecedented year,” CEO Alain Bedard said in a statement.
The big winner for TFI during the quarter came from its asset-light logistics business, driven by the demand for e-commerce and acquisitions. The revenues for the logistics segment increased by 7% to C$279 million while operating profit more than doubled to C$29.9 million.
The quarter also shows that the company’s pivot into asset-light logistics is starting to pay off. It likely will continue to be an increasingly important growth driver following the acquisition of DLS Worldwide.
The company’s core truckload business did not fare as well.
Truckload revenue fell by 7% to C$544.7 million compared to a year ago, while operating income fell slightly to C$74.6 million.
The weakest link for TFI continues to be LTL. Revenue fell by 17% to C$177.4 million while operating income increased by over 30%.
Bedard will discuss the results with analysts during a conference call on Friday.