Mullen Group Q3 Earnings Dip Despite Revenue Growth
[Stay on top of transportation news: Get TTNews in your inbox.]
Mullen Group reported a slight decrease in earnings despite higher revenue during the third quarter of 2024.
The Okotoks, Alberta-based company posted net income of C$38.3 million, or 41 cents a diluted share, for the three months ending Sept. 30. That compared with C$39.1 million, or 42 cents, during the same time the previous year. Revenue increased 5.6% to C$532 million from C$504 million.
Mullen Group ranks No. 47 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
“An excellent quarter for our group even though the economy remains in neutral,” said Murray Mullen, chairman and senior executive officer at Mullen Group. “Acquisitions continue to drive growth; however, I was really pleased with the performance of our business units, where the real difficult work is handled.”
Mullen added that it has been a frustrating time for anyone involved in the private sector. He noted that limited growth in most verticals has contributed to an especially competitive market. However, he believes this backdrop has allowed his company to stand apart from most.
“We have a long history of acquiring good companies at a fair price,” Mullen said. “Of equal importance is that we have the balance sheet to execute the deal. But we will not lose our discipline just because we can, choosing to only pursue transactions that add value to Mullen Group shareholders. After 75 years in business, we know how to handle difficult and challenging markets.”
Less-than-truckload segment revenue decreased 2.8% to C$188.7 million from C$194.2 million during the same time last year. Operating income increased 3.5% to C$35.7 million from C$34.5 million. The report noted that revenue declined because of softening overall freight demand, demarketing underperforming business and decreased fuel surcharge revenue.
Logistics and warehousing segment revenue increased 23.2% to C$168.9 million from C$137.1 million. Operating income rose 31.3% to C$35.2 million from C$26.8 million. The report noted that acquisitions added C$33.6 million of incremental revenue, helping the segment grow. This was partially offset by C$1.4 million of lower revenue from business units because of lack of capital investment in the private sector.
Specialized and industrial services segment revenue increased 5.1% to C$131.8 million from C$125.4 million. Operating income decreased 4% to C$28.5 million from C$29.7 million. The report noted segment revenue increased on greater activity levels in the Western Canadian Sedimentary Basin and higher fuel surcharge revenue. These gains were partially offset by a C$4.4 million reduction in revenue for pipeline hauling and stringing services.
U.S. and international logistics revenue decreased 6.4% to C$45.7 million from C$48.8 million. Operating income fell 72.7% to C$300,000 from C$1.1 million. Revenue declined as freight volumes remained stagnant amid excess trucking capacity.
Want more news? Listen to today's daily briefing below or go here for more info:
