File photo of Ajay Virmani, president and CEO of the Canadian air freight company Cargojet.Glenn Lowson/The Globe and Mail
Cargojet Inc. is increasing its dividend 5 per cent as the air freight carrier reported Monday that its revenue and profit from continuing operations increased in the third quarter.
The Ontario-based company has increased its quarterly dividend to 14.91 cents per share, payable Jan. 4 to shareholders of record Dec. 20.
Cargojet's net income including discontinued operations decreased nearly 30 per cent to $947,000 or 12 cents per share for the period ended Sept. 30. That compared with $1.35 million or 17 cents per share in the prior period.
But pretax operating earnings (EBITDA) increased 16 per cent to $5.1 million from $4.4 million in the year-ago period.
Revenue was $41.8 million, up nearly 3.7 per cent from 440.3 million in the 2011 period.
Chief executive officer Ajay Virmani said strong growth in its air cargo charter revenue and expansion of its overnight network in Eastern Canada offset continued weakness in core overnight revenues in the quarter.
Cargojet, with a network of flights across North America, transports time-sensitive air cargo each business night using a fleet of 13 all-cargo aircraft.