Purolator sales increase 8% in 2011
Canadian parcel and logistics company Purolator achieved 8.2% growth in its revenues in 2011, a $123m increase over the previous year, according to its latest annual report. Revenue grew from just under CAD $1.5bn ($1.46bn USD) to just over $1.6bn ($1.56bn USD) compared to 2010, with 6% of revenues from the coutier business, 20% from Purolator Freight and 33% from Purolator International.
Purolator’s Freight business grew by almost 20% compared to 2010.
In total, Purolator now operates out of 1,300 shipping locations within Canada, moving 1m pieces each day, and 100m pounds of air freight each year.
Through Purolator International, the company doubled its US presence in 2011, from 10 branches to 20 around the United States. The expansion is set to continue, with 10 additional branches set to open in 2012.
Purolator’s operating costs rose by $126m over 2010, influenced by higher fuel costs and the higher volumes it received during the strike action at Canada Post last June.
The company’s capital investments came to $68m in 2011, including $40m investment in air, ground and less-than-truckload capacity, also investing in additional environmentally-friendly vehicles.
The firm said that having also invested in its workforce, IT network and boosted its sales efforts targeted small to medium-sized businesses – as well as doubling its presence across the border in the United States – Purolator achieved a 2% increase in its earnings compared to 2010.
“Great strength”
Commenting on the latest full year, chairman of the board Stewart Bacon said Purolator had showed “great strength” within a “sluggish economy”.
He said volumes improved in 2011, with globalisation and industry consolidation driving customers to outsource more of their supply chain and transportation requirements.
Bacon said competition remained “fierce”, and that Purolator had to maintain a strong customer focus and continue with its technology improvements to retain its competitive advantage.
“As we help our customers to succeed in a changing world, Purolator will continue investing in areas that enhance our overall strategy while holding ourselves accountable to our values.”
Purolator president and CEO Tom Schmitt said the year had seen a “close to flat” economy, but earnings growth came despite “significant” investment in critical areas of the business, not least an increase in and new approach for the sales force, so that individual sales team members can represent the company’s entire portfolio.
During the year, Purolator adjusted branding, with the main Canadian domestic business changing from Purolator Courier Ltd to Purolator Inc., while its cross-border business Purolator USA, Inc., became Purolator International, Inc., as the firm sought to emphasise its nature as a “comprehensive” logistics provider, rather than just a courier company.
Other milestones during the year included a new five-year agreement with the Teamsters union covering about 10,000 of its more than 12,000 workers – a deal renewed early for the first time in Purolator’s history.
