Clarke Inc. reports up 44.2% boost in income

by Canadian Shipper

Clarke Inc. has posted results for its third quarter of its fiscal 2003 showing double digit increases in U.S. domestic and transborder business despite continuing softness in the Canadian market.

The U.S. domestic and transborder business segments were up 11.3% for the quarter compared to last year, and up 12.6% for the first nine months of fiscal 2003.

“Our success in the U.S. and transborder sectors demonstrates the growing acceptance of Clarke’s offering in the U.S. market,” said Darell Hornby, Chief Executive Officer. “We believe the Company is well positioned to deliver excellent returns on its growing U.S. business as we continue to expand our service coverage and rationalize costs.”

Domestic revenues fell 0.7% as they continued to be affected by lower shipment volumes and rate pressures, despite an improvement in steel product shipments. Revenues were also impacted by the December holidays, which effectively closed operations for the better part of a week.

But the company’s executive team adds that while the domestic market looks soft for the short term, longer-term prospects for the Company remain good.

Concord Transportation Inc., the company’s expedited freight division, continued its turnaround, producing year-over-year revenue and margin improvements.

The combined impact of increased revenue, lower costs and lower amortization of goodwill resulted in a 44.2 per cent increase in net income.

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