Mullen's Trucking And Logistics Business Hits First Quarter Record

Mullen Group's trucking and logistics business set first quarter records as the Canadian firm reported earnings on April 24.

The Alberta-based Mullen reported a 14 percent increase in net income to C$10.6 million (a Canadian dollar equals US$0.74) on C$319.6 million of revenue, a 9.4 percent increase. Its adjusted earnings per share of C$0.10 was slightly below analysts estimate of C$0.12.

Operating income from Mullen's trucking and logistics segment increased by 16.7 percent during the first quarter of 2019, hitting C$30.1 million on revenue of C$214.2 million – both of which set first quarter records. The gains largely came from its Gardewine Group, based in Manitoba.

Strength in transportation helped give Mullen momentum as its attempts to turn around its oil services business amid the struggles in western Canada's energy sector. The company took a C$100 million impairment in the fourth quarter of 2018 in its oil services business.

Nevertheless, Mullen's oil services segment showed signs of life. Net income increased by 28.8 percent, reaching C$16.1 million on C$105 million of revenue during the first quarter, compared to the first quarter of 2018.

"Over the course of the last few quarters, we completed a series of transactions expanding our service network along with adding new customers in both operating segments. These investments drove our revenue growth in the quarter and more importantly will serve our Corporation well for many years I believe," CEO Murray Mullen said in a statement.