Canadian trucking and logistics provider the Mullen Income Fund increased revenue and operating income through acquisitions in the third quarter. But net earnings slipped as a result of foreign exchange differences.
Revenue grew 35 percent to $298.2 million largely due to the acquisition of three oilfield services competitors, strong demand for those services and gains in the trucking/logistics segment, the company said.
For the three-month period ending Sept. 30, the fund generated $57.1 million from operations compared to $37.4 million in 2007, an increase of $19.7 million.
However, net income was $30.6 million, compared to $32.2 million in the same period in 2007. The decline of $1.6 million, or 5 percent, was primarily due to foreign exchange impacts on the fund's $235 million of long-term debt.
"This is undoubtedly a challenging and fast moving market. Commodity prices have declined significantly, capital and credit was, and remains, very difficult to obtain if you need it, and the Canadian dollar has fallen dramatically against the U.S. dollar," said Stephen Lockwood, president and co-chief executive officer.