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* CONTRANS, MULLEN, and TRIMAC are among the Canadian income-fund structured transportation companies to report a strong financial performance despite the uncertainty created by Ottawa's recent move to tighten fund legislation.
Contrans Income Fund, enjoyed a record year in 2005, and reported yet another new record in 2006, with an increase of more than 18% in total revenue. Total revenue for 2006 was $455.2 million compared with $385.5 million in 2005.
"We believe that the uncertainty over the tax status of income trusts has not only had a negative impact on the entire sector and investors, but on the economy in general," said CEO Stan Dunford. "The new limits on the amount of equity that a trust can raise have compounded this effect by further restricting growth. We intend to continue to operate our business the way we always have in spite of these burdens and constraints."
Mullen Group Income Fund also enjoyed a successful year in 2006, thanks largely to a number of key acquisitions by the company. Mullen generated consolidated revenues of $1 billion in 2006, compared to $591.7 million the year before. Net income was also up, to the tune of $128.1 million compared to $70 million in 2005. Mullen Group attributes the 83% increase in net income to income generated by new acquisitions made in 2006.
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