Mullen Group’s Q1 earnings reflected a slowing economy and reduced freight demand.

“Using our first quarter results as a barometer for the state of the general economy, one could conclude that the economy is definitely slowing,” said Murray Mullen, chairman and senior executive officer. 

“Across each of our operating segments we witnessed a softening in demand, accompanied by competitive market conditions. Consumer demand continued to decline, capital investment in Canada was noticeably weaker, and major project construction activity virtually ground to a halt. It’s no wonder our results were down year over year.”

However, acquisitions added about $20.5 million in new revenue over the quarter. Mullen said the company will continue to pursue acquisitions and says it has already begun preparing for the next business cycle.

As for its earnings, revenue slid 7.1% to $462.6 million in the first quarter. Profit fell 30% to $22.2 million. Mullen attributed the decline in revenue to reduced economic activity levels and reduced capital investment in the private sector. Lower fuel surcharges were also a factor.

LTL revenue was down 5.3% while the logistics and warehousing segment declined 12.4%. The specialized and industrial segment was relatively flat, down just 0.8%. Mullen’s U.S. 3PL business saw revenues decrease 12.9%, due to reduced freight demand and an increase in capacity.