Mullen’s 2Q Income Dips
Canadian transportation firm Mullen Group said net income fell in the second quarter as the Canadian economy grew little.
Profit was C$25.6 million, or 28 cents a share, a 6.6% decrease from last year’s C$27.4 million, or 30 cents a share. Revenue increased 1% to C$313.3 million.
The Aldersyde, Alberta-based company blamed the decreases primarily on little growth in the economy, a decline in the value of investments and poor weather. Flooding washed out roads in western Canada, limiting access to oil wells.
“Margins came under pressure primarily due to rising operating costs, including fuel, operating supplies and repairs and maintenance — costs which were not fully recoverable from customers through pricing increases or productivity gains. Overall, just a challenging quarter,” CEO Murray Mullen said in a July 24 statement.
