ALDERSYDE, Alta. — Mullen Transportation is finally feeling the effects of a slowing oil and gas economy, but the trucking firm has still managed to turn a respectable profit in the first quarter.
The Alberta-based company released its first quarter results yesterday, and so far this year consolidated revenues are $20 million lower than last year, representing a hit of 18.5 per cent. Declines were felt in operating income and net income.
However, share owners still took in a profit of 54 cents per share, down from 77 cents per share over the same time last year.
Murray Mullen, president and chief executive officer, says the declines don’t come as a surprise.
“Our first quarter results were generally in line with our expectations, reflecting sharp declines in oil and gas drilling activity in Western Canada and the continued weak demand for trucking services, both of which are related to the economic slowdown in North America,” says Mullen. “When these types of situations occur, there is little we can do other than focus on the cost side of our business and ensure that the company is positioned to capitalize when conditions improve.”
The company’s has seen a recent increase in demand for freight transportation in Eastern Canada, paving the way for a recovery. Mullen is confident the second half of the year will provide Mullen with “a much healthier business environment.”
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