OKOTOKS, Alta. — Mullen Group saw its revenue drop 18.6% in the second quarter compared to the same three-month period last year, according to its latest filings.
The revenue decline stemmed from lower revenues in both the trucking/logistics segment as well as the oilfield services segment, Mullen reported. On the trucking side, the company said the decrease in revenue is attributable to the continuing recession and its impact on freight demand, especially in western Canada.
Net income for the second quarter was down 10.6% to $17.8 million. For the six-month period ended June 30, Mullen says it net income was down 30% to $48.8 million compared to the same period of last year.
“The operating environment within the second quarter of 2009 was extremely challenging due to the combined impact of the continuing recession coupled with a significant decrease in drilling activity in western Canada,” said Stephen Lockwood, president and co-CEO of Mullen Group.
“However, we are relatively pleased with our overall financial performance. The flexibility and strength of our business model provided us with the opportunity to adapt our cost structure within such a challenging operating environment to the point where we were able to maintain our operating margin on a year-over-year basis. However, we continue to be diligent and aggressive in pursuing opportunities to reduce costs and improve processes and productivity.”
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