Declining volumes mean soft Q1 for Cargojet
May 7, 2012, Mississauga, Ont. - Cargojet Inc. says its first-quarter results were affected by a continuation of declining volumes in its key overnight cargo services.
May 7, 2012 By The Canadian Press
The air freight carrier said net income dropped to $30,000 or nil per share in the three months ended March 31.
That compares to $1.3 million or 16 cents per share a year ago.
Revenues weakened to $40.1 million from $41.1 million in the comparable period.
The company noted that gross margins dropped 24.7 per cent to $5.5 million.
"The trend in lower overall core overnight volumes that began mid-year 2011 continues into this year and has directly impacted yields,'' said president and CEO Ajay Virmani.
"Overall charter activity remains strong and we continue to focus on strict cost controls and revenue enhancements, while remaining cautious about the speed of economic recovery.''
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