COMPETITION WATCH: Mullen posts record revenue in Q2

OKOTOKS, Alta. -- Mullen Group has posted record second quarter revenue, generating $320.1 million in the period ending June 30.

Mullen’s second quarter revenue was an increase of $29.3 million, or 10.1%, from the $290.8 million generated in 2011. The company attributed the increase to greater revenue generated by both its oilfield services segment and its trucking/logistics segment.

The oilfield services segment contributed revenue of $188.0 million, an increase of $13.0 million from 2011 despite a $7.7 million decline in revenue associated with the Thin Fine Tailings barge system project, the company reported. Officials said the majority of the increase in revenue was experienced in those operating entities involved in fluid hauling and related production services, which benefited from improved weather conditions in southeastern Saskatchewan compared to the second quarter of last year, strong heavy oil production and continued crude oil drilling. Revenue also increased due to project specific rig relocation services.

Mullen’s trucking/logistics segment contributed revenue of $133.7 million, which was an increase of $15.6 million over the prior year period. The company said the increase was due to the incremental revenue generated by the Hi-Way 9 Group, continued strong demand for transportation services in western Canada and higher fuel surcharge revenue.

"Overall, we are pleased with Mullen Group's performance for the three month period ended June 30. The overall economy in North America remained relatively stable while activity tied to energy and natural resource development in western Canada continued to grow, albeit modestly, which benefited a number of our business units,” said Stephen H. Lockwood, president and co-CEO of Mullen Group.

“During the quarter, Canadian Dewatering L.P. completed the TFT barge system project. While we are disappointed that we were unsuccessful in recouping a portion of the costs associated with the project, which more than doubled in terms of size and scale, Canadian Dewatering L.P. profitably delivered the TFT barge in line with the customer's engineering specifications, timeframes and without any HSE incidents

For the six month period ended June 30, revenue increased by 17.8% to $746.1 million from $633.5 million in the same period last year.

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XPO Logistics Posts Loss; Sets Executive Appointments

XPO Logistics posted a third-quarter loss, named seven new senior executives and said it was targeting multiple acquisitions in the logistics and freight brokerage field.

The $44.4 million loss was tied to dividends and preferred stock issued after investor Bradley Jacobs took over the CEO position earlier this year after providing $150 million in capital to the former Express-1 Expedited Solutions.

Excluding the charge, net income was $190,000, an 89% decline from the 2010 quarter. Revenue climbed 6.6% to $47.8 million, the company said Monday.

“While our overall operating results in the quarter were mixed, we’re encouraged by the opportunities to enhance the earnings power of all three of our business units,” Jacobs said in a statement.

“We have an extensive plan in place to expand XPO through acquisitions, organic growth and the optimization of our operations. We plan to grow super fast,” he said.

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Clarke Posts 3Q Loss; Freight Unit Improves

Canadian holding company Clarke Inc. reported a third-quarter loss but its freight transportation unit’s performance improved.

Its net loss was C$16.3 million, or 81 cents a share, compared with net income of C$8.9 million, or 43 cents, a year ago.

Its freight unit’s earnings before interest taxes depreciation and amortization rose to $6.5 million, up from $5.2 million a year ago.

Total revenue slipped to C$41.6 million from C$57.6 million. Freight revenue improved, the company said.

Ontario-based Clarke, which operates in truckload and less-than-truckload sectors via its Clarke Transport unit, also has a home heating segment.

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Vitran Posts Third-Quarter Loss

Vitran Corp. on Monday reported a third-quarter loss, compared with a profit a year ago.

The Toronto-based carrier lost $3.4 million, or 21 cents per share, compared with a profit of $2 million, or 12 cents, a year ago. Revenue rose 18.4% to $206 million.

Vitran’s less-than-truckload unit reported an operating loss of $2.9 million, compared with operating income of $3 million a year ago. Revenue rose 17.1% to $176 million.

LTL shipments and tonnage improved 8.3% and 9.2%, respectively, Vitran said.

The company said its LTL operating results were negatively impacted by a $1.5 million increase in expenses from U.S. healthcare and workers compensation from a year ago.

“The LTL segment is much the same as the second quarter of 2011, with strong results in Canada and weaker results in the U.S. operations,” CEO Rick Gaetz said in a statement.

The supply chain segment’s operating income rose to a record $2.9 million, from $2 million a year ago.

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Arkansas Best Posts 3Q Profit

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Arkansas Best Corp. swung to a third-quarter profit from loss a year ago on improved pricing, the company said Friday.

Net income was $12.3 million, or 46 cents a share, compared with loss of $700,000, or 3 cents, a year ago.

Revenue rose to $510.9 million, a 14.7% per-day increase over last year.

ABF Freight System, its less-than-truckload operation and largest business unit, had operating income of $18.3 million, turning around an operating loss of $2.6 million a year ago.

ABF’s revenue rose to $466.3 million, a per-day increase of 13.8%, while tonnage per day slipped 2% from a year ago.

Since March, ABF’s year-over-year change in monthly tonnage has moderated, and beginning in August tonnage has been below that of the same period last year, said CEO Judy McReynolds.

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Cummins Posts Higher 3Q Profit, Trims 2011 Outlook

Cummins Inc. said Tuesday its third-quarter profit rose 60% from a year ago, but the engine maker trimmed its full-year revenue outlook due to “uncertainty around the macro-economic environment.”

Third-quarter net income climbed to $452 million, or $2.35 a share, from $283 million, or $1.44, a year ago. Sales for the quarter ended Sept. 25 rose 36% to $4.6 billion.

Cummins lowered its full-year sales forecast to $17.5 billion to $18 billion, down from a previously projected $18 billion.

President and Chief Operating Officer Tom Linebarger said “government actions to reduce inflation in India and China resulted in softer near-term demand than we previously expected.”

“This, along with the recent strengthening of the U.S. dollar, has caused us to slightly soften full year revenue guidance to a range of $17.5 to $18 billion, which would represent an increase of over $4 billion, or over 30%, compared to 2010,” he said in a statement.

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Eaton Posts Record 3Q Earnings Per Share

Truck and auto components maker Eaton Corp. said Monday it posted record third-quarter earnings per share, up 37% from last year.

Eaton’s net income rose to $365 million, or $1.07 per share, up from $268 million, or 78 cents, a year ago. Sales rose 15% to $4.12 billion.

“We anticipate net income per share for the fourth quarter of 2011 to be between $1.04 and $1.14,” Eaton CEO Alexander Cutler said in a statement.

Eaton’s truck segment reported an operating profit of $139 million, as sales rose 34% to a quarterly record $715 million.

Truck production rose 25%, with U.S. markets up 51% and non-U.S. markets up 7% in the quarter, the company said in a statement.

“We now expect the [North American Free Trade Agreement] Class 8 market to total 255,000 units, a small reduction from our forecast in July,” Cutler said in a statement. “Outside NAFTA, we are seeing a continuation of modest growth.”

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Swift Posts Third-Quarter Profit

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Swift Transportation Co. reported a third-quarter profit compared with a loss a year ago, as its trucking, intermodal and brokerage segments all improved.

Net income was $31 million, or 22 cents a share, compared with a loss of $1.2 million, or 2 cents, a year ago.

Revenue rose 14% to $863.8 million, Swift said late Wednesday.

That included a 4.8% increase to $82 million of “other revenue,” which includes revenue generated by its intermodal and brokerage businesses and service offerings to owner-operators including shop maintenance, tractor leasing and insurance.

Swift is ranked No. 7 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers and is the largest truckload carrier.

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