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HomeMy WebLinkAboutZurich Citizens News, 1976-04-21, Page 18Page 18 - Citizens News, April 21/ 76 Transport usiness has branch in this area An article on Michael DeGroote president of Laidlaw Transpor- tation Ltd. appeared in a recent issue of The Toronto Globe and Mail. Local readers will find it of interest in that the firm oper- ates out of Exeter, having pur- chased Guenther -Tuckey Trans - rots Ltd. The article was written by Ken Romain and is as follows: Laidlaw Transportation Ltd. of Hamilton is no longer aggress- ively pursuing acquisitions, as it did in the early 1970s. Michael DeGroote, president, said in an interview that this is because the economy is too uncertain and Laidlaw is a far more mature company now than it was then. "Not that we are not interested in further acquisitions. In fact, I have got a drawer full I'm look- ing at. But our future growth now will come internally, not extern- ally." he said. However, at one time between 1969 and 1973 the company was snapping up trucking and waste management companies as fast as it could lay its hands on them. In doing so, it became one of the darlings of a_ buoyant and rising stock market as shares climbed to a high of $18 early in 1973. Shares are currently trading in the $7 ra' "We -<<,A ~red 33 companies during t'ia iod," Mr. De- Groot,.- Included was a holdir , h:is now become effectiN• r. 73 per cent) of Hamiltr Trust and Savings Ltd. of Hamilton. It was the only investment outside the transpor- tation field, and "is a nice, comfortable situation that is well managed." But then the steam began to whistle out of the market and the economy. There was a fuel crisis, costs rose as recession set in, the market soured, as did the players. Laidlaw shares fell back, even though revenues and profits increased, touching a low of $2.90. However, because of its ac- quisitions the company is now operating from a fairly diver- sified base, Mr. DeGroote said. It has operations in Ontario, Manitoba, Alberta and British Columbia that include trucking, waste management, bus and cab lines. Mr. DeGroote emigrated from Belgium to Canada with his parents at 14. He bought his first truck at 18 ("I hauled manure"). In 1959, he bought Laidlaw Transport of Hagersville. a small truck operation with revenues of $400,000 a year and 90 per cent of its traffic provided by one shipper. Expansion followed slowly, then grew More rapidly and the company went public in 1969. Revenues at that time were about $5 million. Then came the series of acquisitions and revenues and profits grew each year. In the fiscal year ending Aug. 31, 1975, revenues were $51 million; forecasts are for $59 million in 1976. Along the way, Mr. DeGroote became majority owner of the Hamilton Tiger Cats football club—"my diversion". Everybody has a diversion, Tiger Cats are mine." Trucking accounts for about 50 percent of company revenues and in Mr. DeGroote's view, trucking is bound to expand in the move- ment of volume goods. "In the next few years we will be hauling everything that moves over a 200-to,500-mile radius. The railroads can't compete with us at 200 miles. I have always said that trucking companies should restrict them- selves to a 500 -mile radius in the movement of volume traffic. To operate long-haul, you have to have a pretty specialized oper- ation." Laidlaw's truck operations are concentrated mainly in the industrial belt of Southern Ontario, with some routes to Quebec and two new licences that take it to the United States through Buffalo and Detroit. But although truekin,g is the main revenue producer, waste management made the biggest contributions to profit last year. "Waste management is another name for garbage collecting," Mr. DeGroote said. This is done by Laidlaw under contract with municipalities and industrial and commercial firms. The company places waste containers at plants or business locations and handles the pickup and hauling away. For municipal -ities, it assigns collection of garbage to private truckers, who haul it off and bury it at a land fill site. "There is just no more econ- omical way of getting rid of waste than dumping it at a landfill site," Mr. DeGroote said. Where reduction plants have been built to dispose of waste and garbage, the costs have been phenomenal, he said. As a result, he feels provision of waste management services is still an expanding field, al- though not without competition as other trucking companies move into the area. "More and more municipal- ities are also looking at contract- ing as they find less and less funds available to then. They are realizing that the private pickup can save them a lot of money." On the people side, Laidlaw holds a 67 per cent interest in Grey Goose Corp. Ltd. of Winni- peg, which in turn operates Grey Goose Bus Lines Ltd. and Manitoba Transit Ltd. as well as Yellow Coach Lines Ltd. and Yellow Cab Ltd. in Edmonton. Grey Goose and Manitoba transit provide about 90 per cent of all inter -city bus services in Manitoba, while routes have been extended east into Ontario to Fort Frances and Hearst. Yellow Coach Lines operates some buses and Yellow Cab operates more than 400 taxis in .Edmonton. The coach line has extensive charter services to points in Canada and the United States. It is a business that continues to grow and attract more passen- gcrs, because of low fares, and as the rising cost of fuel for the private motorist takes hold, Mr. DeGroote said, 4,a%%%%%w%a:% w%%%%,%%% %% %%%'%%< %e%%%%%%%% %%%Y, c t s P i s •••i • 0 s r 0 0 i VILLAGE URIC.. NOTICE:. RE DAYLIGHT SAVING TIME s • • x • I Daylight Saving Time will be observed in this community during the 1976 season. EFFECTING SUNDAY APRIL 25 FRED HABERER Reeve at 12:01 A.M. i t 4, ELIZABETH A. OKE 4 Clerk I V% v. %V% IliN,V%-%%.4%%%%,% %NA+ %%%-*%� SALE SAVE SALE SAVE SALE AVE SALE SAVE SALE ALE SAVE cSALE SAVEcn;SALEc'orer cAVE ni S� LE SAVcEaSALE S C Cm/C i c cnvc r r cmrr i c cnv SAVE S AVE S SALE ALE SF E SAVE SAVE S AVE SA SALE � ALE SP E SAV SVE S AVE S:� SALE S ALE SA E SAVE SAVE S AVE SA SALE S ALE SA ESAVE SHOP FOR MEQ SAVE S AVE SALL I -VL JHLG 31-11/ E. 31 -ILL JNVC JHLC DAVE Si SALE SAVE SALE SAVE SALE SAVE SALE SAVE SALE DI F C41/F Q41 F Ctl! F C41lF C41 G Q 4 DA (5 ONLY Thurs., Fri., Sat., on. - April 22,23,24,26 ENTIRE STOCK FF Cold spring weather combined with the early shipment of summer merchandise causes us to be OVERSTOCKED We must reduce our inventory immediately, so we have lowered our prices. STOREWIDE ® That Means All Our Quality Men's Wear SAVE $$$ NOW ON YOUR SPRING & SUMMER WARDROBE Alterations At Cost Earl Rawsons Corner Montreal Street and The Square, Goderich SAVE SAVE S :SALE SALE S LE SAV SAVE SAVES, :SALE 3 L S �E S!� SAVE AVE S. SALE ALES _E SAV SAVE' SAVES, SALE SALE S _E SAV SAVE