• ITVI.USA
    10,801.870
    -158.520
    -1.4%
  • OTRI.USA
    15.130
    -0.230
    -1.5%
  • OTVI.USA
    10,791.160
    -152.250
    -1.4%
  • TLT.USA
    2.870
    -0.010
    -0.3%
  • TSTOPVRPM.ATLPHL
    2.630
    0.110
    4.4%
  • TSTOPVRPM.CHIATL
    1.910
    0.050
    2.7%
  • TSTOPVRPM.DALLAX
    1.250
    -0.060
    -4.6%
  • TSTOPVRPM.LAXDAL
    2.390
    0.130
    5.8%
  • TSTOPVRPM.PHLCHI
    1.330
    0.070
    5.6%
  • TSTOPVRPM.LAXSEA
    2.750
    0.020
    0.7%
  • WAIT.USA
    103.000
    -17.000
    -14.2%
  • ITVI.USA
    10,801.870
    -158.520
    -1.4%
  • OTRI.USA
    15.130
    -0.230
    -1.5%
  • OTVI.USA
    10,791.160
    -152.250
    -1.4%
  • TLT.USA
    2.870
    -0.010
    -0.3%
  • TSTOPVRPM.ATLPHL
    2.630
    0.110
    4.4%
  • TSTOPVRPM.CHIATL
    1.910
    0.050
    2.7%
  • TSTOPVRPM.DALLAX
    1.250
    -0.060
    -4.6%
  • TSTOPVRPM.LAXDAL
    2.390
    0.130
    5.8%
  • TSTOPVRPM.PHLCHI
    1.330
    0.070
    5.6%
  • TSTOPVRPM.LAXSEA
    2.750
    0.020
    0.7%
  • WAIT.USA
    103.000
    -17.000
    -14.2%
BusinessCanadaCompany earningsInternationalNews

Mullen predicts more coronavirus pain as it reveals cuts to workforce

Canadian transportation and logistics company says it laid off or furloughed 1,000 employees as it posts first-quarter results.

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.

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Nate Tabak, Border and North America Correspondent

Nate Tabak is a Toronto-based journalist who covers cross-border trucking, logistics and trade for FreightWaves. Before moving to Canada, he spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at ntabak@freightwaves.com.

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