OKOTOKS, Alta. – Mullen Group announced its 2021 business plan, which reflects optimism that a consumer-driven economy will continue to drive trucking demand.
“Within this context our business will remain quite stable in 2021, in fact similar in most respects to 2020,” said Murray Mullen, chairman and CEO.
“It is our expectation that the second wave of Covid-19 will impact many people, the supply chain across the globe and the economy. The stability of our results is primarily due to the strength of the many business units we have that are leveraged to consumer spending. Longer term, once the medical experts find the solution to this pandemic, the opportunity for growth will return again and the Mullen Group will be both prepared and positioned to capitalize on the economic recovery. Until then we will be prudent and focus on the issues we can control and influence.”
Mullen has allocated a capital budget of $60 million for 2021, with $50 million dedicated to replacing trucks, trailers, specialized equipment and technology. The other $10 million – the vast amount of that collected through the Canada Emergency Wage Subsidy program – will be used to create a fund to support growth and create jobs in Canada, the company announced.
It also has $100 million in cash to support acquisitions, which will be focused on the LTL and logistics and warehousing segments, the company said.
Mullen expects to earn $1.2 to $1.3 billion in revenues next year, with operating income before depreciation and amortization totaling $200 to $220 million.
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