Canada’s Mullen Group on Wednesday reported a slow uptick in its core transportation and logistics businesses in the first quarter, with strength from less-than-truckload, but warned of more pain from COVID-19.
Mullen said it had net income of C$4.7 million, or C$0.04 per share, on C$318 million in revenue. Profits fell by nearly 60% from a year earlier as foreign exchange losses and other costs overshadowed 2.7% growth in operating income.
The Alberta-based firm said its business units had been performing steadily until mid-March as the impact of the COVID-19 pandemic began slowing Canada’s economy to a crawl. CEO Murray Mullen warned of more pain ahead.
“We will see business decline, perhaps quite significantly in the short term, however, I believe we will weather this crisis and come out of it stronger,” Mullen said in a statement.
The company also said it had laid off or furloughed about 1,000 employees as part of its previously announced cutbacks related to COVID-19. That is about 16% of its workforce. Mullen established a C$5 million assistance fund for employees impacted.
Mullen did not detail where it made the cuts. The company still has a significant energy services business in Canada’s oil patch, facing the dual impact of the pandemic and a collapse in oil prices.
Company executives will discuss the result with analysts on Thursday.
Freight Fraud Symposium
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
Future of Rail Symposium
Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Rock & Roll Hall of Fame • Cleveland, OH Register NowPast the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post Office • Chicago, IL Register NowReshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
Best coffee on the highway, EH!
Everything gets stolen in Canada then it’s found in india