* Expects capex of $6 mln to $9 mln for rest of 2010
* Says eying acquisitions in LTL/supply chain segments
* Q2 EPS $0.11 lags estimates
* Revenue up 14 pct to $179.0 mln
* Shares fall 7 percent
(Recasts; adds analyst comments, conference call details,
By Arnika Thakur
BANGALORE, July 22 North American
transportation company Vitran Corp Inc VTN.TO VTNC.O posted
a quarterly profit that trailed market estimates, hurt by
higher costs, sending its shares down 7 percent.
Vitran, which posted a three-fold increase in profit at its
less-than-truckload (LTL) segment, said it is looking for
acquisitions in the LTL and supply chain segments.
Income at the company's LTL segment rose to $3.9 million
from $1.2 million, helped by a 6 percent rise in shipments and
a 10 percent rise in tonnage.
The company said it expects to continue to increase yield
in its LTL segment through the third quarter.
"This is the first quarter that we have begun to see any
improvement in the LTL industry and pricing in quite some
time," Dahlman Rose & Co analyst Jason Seidl said.
The North American trucking industry had been hit hard
during the recession as excess capacity put pressure on pricing
and dented margins.
"It is going to be difficult to correct the multi-year
cyclical downturn in one or two quarters. It's going to take a
little bit of time," Seidl said.
For the remainder of the year, the company said it expects
capital expenditure of $6 million to $9 million, most of which
will be used for fleet replacement and information technology.
Vitran, which also offers truckload and freight brokerage
services, said second-quarter profit increased to $1.7 million,
or 11 cents a share, from $0.4 million, or 3 cents per share, a
Vitran's supply chain operation's income was unchanged at
$1.4 million, while the truckload segment's income fell 28
percent to $184,000.
Revenue for the quarter rose 14 percent to $179.0 million.
Analysts, on average, were expecting earnings of 13 cents a
share, on revenue of $179.0 million, according to Thomson
Operating expenses for the quarter were up about 12 percent
at $170.1 million.
Shares of the company were trading down about 7 percent at
C$12.29 Thursday afternoon on the Toronto Stock Exchange.
(Reporting by Arnika Thakur in Bangalore; Editing by Jarshad
Kakkrakandy, Anne Pallivathuckal)