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COMPETITION WATCH: Oilfield business booming for Mullen Group

OKOTOKS, Alta. -- Mullen Group has reported record revenue for 2011 of $1.39 billion with an operating income of $288 million and a profit of $119.4 million.

OKOTOKS, Alta. — Mullen Group has reported record revenue for 2011 of $1.39 billion with an operating income of $288 million and a profit of $119.4 million.

Its revenue was up 33.5% year-over-year, with all business units experiencing incremental revenue gains, which were bolstered by revenue generated through acquisitions, the company reported.

Revenue gains were strongest in Mullen’s oilfield services segment, while the trucking/logistics segment contributed $97.2 million in additional revenue y-o-y.

Mullen reported stronger demand for freight services related to capital investments in oil sands development, mining and overdimensional freight as well as higher fuel surcharge revenue.

Its operating income of $288 million was a new record, and up 43.1% over 2010, the company reported.

“We are very pleased with Mullen Group’s record operating results for the 2011 year.  The momentum we experienced in the second and third quarters of 2011 continued into the fourth quarter and pushed our results to a record level. Without exception, each of Mullen Group’s operating businesses showed year-over-year improvement in terms of revenue generation and operating income,” said Stephen Lockwood, president and co-CEO of Mullen Group. “The Trucking/Logistics segment also performed very well generating 35.1% of Mullen Group’s 2011 pre-consolidated revenue with our businesses offering overdimensional and multi-modal services witnessing increased demand throughout 2011. As well, we were very pleased with the performance of Hi-Way 9, which exceeded our expectations.”

In the fourth quarter, Mullen saw revenue gains of 33.1% compared to the same period in 2010 and posted a Q4 operating income of $83.8 million, a 45.2% increase over Q4 2010.

“We enter 2012 with most business units operating at or near full capacity both in terms of equipment utilization and deployment of our people, strong indicators that the markets Mullen Group serves are very robust,” said Murray Mullen, chairman and CEO. “Overall we expect business activity to remain strong, however, we are reluctant to predict significant growth, particularly compared to the exceptional performance last year. Our focus for 2012 will be on operational excellence and margin expansion, which is aligned with the announced increase in capital expenditures to $100 million for 2012.”

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