Okotoks, AB — Despite being forced to temporarily layoff workers, one of Canada’s largest transportation and logistics companies, says it can weather the impact of the COVID-19 on freight.
Mullen Group, announced plans to temporarily lay off some employees, cut executive pay and suspend its monthly dividend, but said it well-positioned.
“As of today, we have over $90 million in cash on the balance sheet, ample liquidity available in the form of an undrawn line of credit, and a diversified business model,” stated Murray K. Mullen, chair and CEO of Mullen Group. “And as bad as the news has been these last few weeks, our business remains robust especially our less-than-truckload segment.”
The company also announced it would be temporarily suspending the monthly dividend of $0.05 for three months, effective April 1, as well reducing the rate of pay for senior company executives for 90 days.
Mullen said that with the suspension of some services along with temporary layoffs due to work shortages, laid-off employees will remain eligible for company benefit plans.
“Our first priority must be to look after those employees, and their families, that will be temporarily laid off which is why I am announcing that the Mullen Group will be offering assistance to our employee workforce impacted through no fault of their own,” said Mullen. “Up to $5 million will be made available to support employees and their families. There is no better investment we can make than in our employees. We are all in this together,” he added.
“Mullen Group is extremely well-positioned to weather this extraordinary situation. Furthermore, a large portion of our overall business will continue to be required to meet the daily needs of Canadians, a reality reflected by the Canadian Government’s decision designating truck drivers as an essential service. So, we will have business but clearly as many industries temporarily close the demand for trucking and logistics service will be impacted. We are prepared and the action plans we will implement will ensure Mullen Group recovers quickly once demand is restored.”