DAILY NEWS Jan 15, 2013 4:29 PM - 0 comments

Mullen Group to spend $80M on new equipment in 2013

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OKOTOKS, Alta. -- Mullen Group will spend $80 million on new equipment in 2013, a decrease of $23 million compared to 2012.

Most of the $80 million in approved capital spending will go towards buying new trucks, trailers and specialty equipment, the company announced. Of that, $25 million will be spent on equipment for the trucking/logistics segment while the remainder will go to the oilfield services segment.

“I am pleased that the board of directors accepted the recommendation of our senior executive team,” said Murray Mullen, chairman and CEO of Mullen Group. “This capital will ensure that our business units can remain competitive in what I can summarize as a very challenging market.”

Mullen also announced it would be increasing its annual dividend by 20 cents per share and paying it monthly, rather than quarterly.

“While we expect 2013 to be a challenging year with little opportunity to grow our business due to economic and industry conditions, Mullen Group will continue to generate significant cash from operations,” Mullen said.

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