Mullen hurdles ‘challenging’ market

CALGARY — Mullen Group Income Fund, the largest western trucking firm and third largest for-hire carrier in Canada, reported revenue of $218.9 million for the three-month period ended June 30, 2007 — a 9.5 percent increase over the same period last year.

Like Quebec-based TransForce, Mullen’s strategy is to grow by acquisition. And several fleet purchases in 2006 attributed to the revenue generated by Mullen, the company stated.

In comparing these results with the results for 2006 consideration must be given to the material impact on the Fund and its operations of the
many significant transactions that were successfully completed during 2006,” the company stated in a release.

Revenue in the quarter, however, was negatively impacted by the decline in revenue experienced by all the Fund’s business units dependant on drilling activity in western Canada, which slowed down in 2006.

The Fund’s operating income of $24.7 million was a decrease of $9.8 million or 28.4 percent compared to the same period last year.

The decrease in operating income overshadows the steady year-over-year performance of our Trucking-Logistics segment and performance of the business units in Production Services and Specialized Services, said President and Co-Chief Executive Officer Stephen H. Lockwood, who added that recent acquisitions of Kleysen Transport and E.K. Inc. greatly contributed to this growth.

“The operating environment during the quarter was challenging for both of our operating segments. Nevertheless … our diversified business model and our focus on cost controls and operational efficiencies enabled us to achieve reasonable overall results during the quarter,” said Lockwood.

“We will continue to focus substantial time and effort to ensure that all our business units are able to operate profitably in all economic environments.”