Trucking firm Mullen Group reports 1,000 layoffs as pandemic slows economy

Must Read

New dock installed at Gwillim Lake Provincial Park

TUMBLER RIDGE, B.C. - To provide better lake access for boaters, a new dock has been installed at Gwillim...

National Tourism Week festivities taking place this week in Dawson Creek

DAWSON CREEK, B.C. - Even with the COVID-19 pandemic going on, Tourism Dawson Creek is encouraging residents to celebrate...

Dawson Creek RCMP seize illegal drugs and stolen property

DAWSON CREEK, B.C. - The Dawson Creek RCMP executed multiple search warrants and arrested seven people. On Saturday, May 23,...

CALGARY — Trucking, logistics and oilfield services firm Mullen Group Ltd. says it has temporarily laid off about 1,000 people because of the impact of measures to control the COVID-19 pandemic.

Chairman and CEO Murray Mullen says the Calgary-based company was outperforming its year-earlier performance until mid-March, when demand for its services turned lower.

He says there’s been a sharp decline in the demand for discretionary consumer goods as well as in commodity-based industries but its less-than-truckload and large diameter pipe transport businesses are doing well.

- Advertisement -

Community Interviews with Moose FM


Mullen says the company has established a $5-million family assistance fund to help staff affected by the downturn.

The company reported net income of $4.7 million or four cents per share on revenue of $318 million in the three months ended March 31.

That’s down from net income of $11.6 million or 11 cents on revenue of $320 million in the first quarter of 2019.

“The bottom line is that this health crisis is hurting a lot of people,” Mullen said in a statement.

He added: “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.”

This report by The Canadian Press was first published April 22, 2020.

Companies in this story: (TSX:MTL)

Advertisement


The Canadian Press

More Articles Like This