ALDERSYDE, Alta. — Mullen Transportation has released its 2001 financial and operating results, and despite the downturn in the economy the trucking firm continues to thrive.
Consolidated revenues reached $349.6 million, which is up 8.5 per cent compared to the previous year. Again, it appears the strong showing can be attributed to Mullen’s oilfield services division, which benefits from increased spending by oil and gas companies in Western Canada.
During the first three quarters of the year, Mullen capitalized on increased equipment utilization and higher pricing to boost its revenue.
Operating income jumped by 13.6 per cent while net income was up 8.5 per cent. Earnings per share were $2.13, based on 14.3 million outstanding shares. That compares to a share increase of $2.05 the year before.
While the bottom line for Mullen was impressive in 2001, it didn’t go unaffected by the slowing economy during the fourth quarter. Mullen experienced decreases in its truckload division and oilfield services division over this time compared to the fourth quarter of 2000. This can be attributed to a lack of freight demand and less drilling activity in the oilfields.
Fourth quarter consolidated revenues dropped 12.8 per cent during the three months ending 2001, when compared to 2000s record levels.
"There is no denying that both segments of the economy we serve oilfield services and trucking slowed dramatically in the fourth quarter," says Murray Mullen, chairman, president and chief executive officer of Mullen Transportation. "Overall, however, we had an excellent year, generating record revenues and profits from continuing operations and finishing the year with no debt, $14.3 million of cash and $40.9 million of working capital. The current market conditions definitely favor those companies that have prudently managed their growth initiatives without over leveraging their balance sheets."
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