Cargojet ends 2013 with strong fourth-quarter profit, higher revenue

MISSISSAUGA, Ont. – Cargojet Inc. (TSX:CJT) earned a fourth-quarter profit of $2.4 million, up from $1.5 million, boosted by strong customer demand for its overnight transportation network during the quarter and the second half of the year.

The cargo airline said Thursday the profit amounted to 27 cents per diluted share for the quarter ended Dec. 31, up from 19 cents per diluted share in the last three months of 2012.

Revenue grew to $48.5 million, up from $46.4 million a year earlier.

For the full year, Cargojet earned $3.3 million or 42 cents per diluted share on $175.4 million in revenue. That compared with a profit of nearly $3.6 million or 44 cents per diluted share on $168.8 million in revenue in 2012.

Last month, Cargojet signed a multi-year contract to provide domestic air cargo services to Canada Post and its Purolator division.

It estimated the deal would provide $1 billion of revenue over the first seven years of the agreement.

Cargojet president and chief executive Ajay Virmani noted the company was being cautious about the speed of the economic recovery and continued to manage its costs prudently.

“We are embarking on an exciting new growth chapter in our evolution with the recent successful award of a major new long-term contract with Canada Post and Purolator that will potentially double the size of our business,” Virmani said in a statement.

Cargojet provides overnight air cargo services across North America.