Mullen Transportation saw its revenues soar during the three-month period ending June 30, compared to the same period last year.
The company generated $89.5 million compared to $61.9 million during the same period in 2002, for a gain of 44.6 per cent. Mullen attributes the increase in revenue on incremental new revenues associated with the acquisition of seven companies in 2002 and an increase in oilfield activity in Western Canada.
Operating income was also up in the second quarter, by 72.9 per cent or $5 million. Net income was $4.9 million compared to $2.6 million the same time last year.
Over the first six months of 2003, Mullen’s earned net income has been $17.6 million compared to $10.5 million over the same period last year.
“In spite of a challenging economy and slower then expected drilling activity in western Canada during much of the second quarter, we achieved most of our objectives for the period. Most importantly there appears to be good momentum as we head into the last half of the year,” says Murray Mullen, chairman, president and CEO of Mullen Transportation. “Our results really are quite satisfactory given the many challenges we faced last quarter. The rapid rise in the Canadian currency had a negative impact on our financial results due to a foreign exchange loss and lower transportation rates on freight moves which were priced in U.S. dollars. The closing of our U.S. based Mill Creek Motor Freight operations had a further impact with total losses of approximately $0.4 million. In western Canada we had a situation where the demand for oil and gas drilling was strong but weather delays during April and May slowed activity levels. Overall, however, I am pleased with our results,”
The trucking segment of the business also saw revenue gains over last year, due to increased demand in Western Canada.
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