Logistec Corporation announced its financial results for the second quarter and first six months ended June 25, 2016.
During the second quarter of 2016, consolidated revenues totalled $79.6 million, a decrease of $9.6 million or 10.8 per cent from the equivalent period of the previous year.
The marine services segment’s revenue was down by $8.1 million or 15.2 per cent to $45.2 million, while the environmental services segment’s revenue amounted to $34.4 million, down by $1.5 million or 4.2 per cent. The revenue decrease in the marine services segment came from reduced bulk cargo volumes, whereas the revenue decrease in the environmental services segment was due to lower volumes of Aqua-Pipe activity. The second quarter of 2016 closed with a consolidated profit attributable to owners of the Company of $1.0 million, compared with a profit of $6.7 million for the second quarter of 2015. This includes a loss on foreign currency exchange of $0.7 million.
During the first six months of 2016, consolidated revenue decreased to $144.5 million, compared with $149.6 million for the first half of 2015. The profit attributable to owners of the Company amounted to $0.8. For the same period of 2015, basic and diluted earnings per share totalled $0.74.
Madeleine Paquin, President and CEO, commented that “Year-to-date results are below our expectations. In the marine services segment, the results reflect the lower volumes handled by our facilities and are typical of our economy in general. These volumes relate to many base industries, namely mining and energy. Results should improve considerably in the next months as volumes and hence revenues are projected to increase, but we do not expect to make up for the shortfall. We are not the only company experiencing such volume deterioration and, on the positive side, this may in itself create acquisition opportunities for those seeking growth.”
“In our environmental services segment, both Aqua-Pipe and our traditional site remediation businesses had slower starts, but the outlook for the rest of the year is promising. Contracts on hand, as well as the number and quality of those being bid on, lead us to believe we will have a strong year in site remediation and regulated materials management. In Aqua-Pipe, results will likely be weaker than last year due primarily to lower levels of work being done in our local markets, but our investments in developing the vast U.S. market will no doubt pay off in the years to come. We continue to invest in our technology and are encouraged by the initial positive response of U.S. municipalities. Furthermore, our Niedner woven-hose manufacturing business is not only meeting new standards for the fabrication of large-diameter hoses, but is also enjoying tremendous success with its traditional hose business. The subsidiary has secured a foothold as the largest provider of fire-fighting hoses to governments in North America,” concluded Ms. Paquin.