Mullen Group has announced the mid-quarter update of the company by keeping in view the unprecedented economic circumstances associated with the ongoing Covid-19 Pandemic.
Chief Executive Officer and Chairman of the Mullen Group, Murray Mullen, “In the midst of one of the largest health care crisis ever witnessed, large portions of the economy were ordered to ‘shut down’ leading to massive layoffs, something we all hope will only be temporary, as well as significant declines in economic activity. Our business was not spared over the course of the last two months as the demand for logistics services slowed. However, due to the diversity of our service offerings along with the fact that trucking and logistics was deemed an essential service by all government bodies we maintained a healthy level of business activity.”
“Consolidated revenues for the last two months are trending down by 22.0 percent year over year, which appears to be consistent with the vast majority of our competitors and the railways, indicating that our second quarter revenues are now on track to be in the range of $240.0-$260.0 million. On the margin front the news is even better with earnings from operations1 declining by approximately 15.0 percent,” Murray Mullen further added.
“We are seeing the benefits of adapting quickly and decisively to the COVID-19 pandemic. Not only did our Business Units implement effective measures at controlling costs, several actually gained market share and improved margins,” Murray Mullen continued
“As a result, there is a good chance that earnings from operations1 for the quarter will be approximately $40.0 million. In addition, the wage subsidy programs announced by the Canadian Government should generate an additional $10.0 million, all of which suggests our overall profitability levels could be very similar to last year,” company’s Chairman and CEO Murray Mullen concluded.
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