A.M. Executive Briefing - July 25
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Diesel Prices Dropped Last Week But Outlook "Clouded"
Diesel fuel prices dropped 1.1 cents last week to $1.424 per gallon, the Department of Energy reported. Prices fell in every region except California (up 0.3 cents), with the Rocky Mountain area seeing the biggest drop, 2.5 cents.American Trucking Associations analysts say in the weekly Fuel Line report that the outlook on diesel prices is "clouded" due to two factors. One is that distillate inventories are not increasing quickly enough to ensure supplies will meet the demands of the fall/winter peak season. Also, conflicting reports over possible OPEC production increases cause uncertainty over crude prices. Transport Topics
Airborne Freight Earnings Down; Looks To Trucking For Growth
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This lack of growth, coupled with increased fuel costs, is what the company blamed for its drop in net earnings. Airborne said a 3% fuel surcharge did bring in $19.9 million in the second quarter to help offset fuel costs. Transport Topics
Navistar Stock Jumps 11% After Announcement of Shareholders Meeting
After Navistar International Corp. announced Monday it would hold a shareholders meeting to discuss ways to improve shareholder value, shares jumped 11% to close at 35 7/16, the Financial Times (London) reported Tuesday.Investment group Providence Capital will be leading the shareholder meeting on Wednesday. The meeting will follow a week of heavy activity by DaimlerChrysler, which announced deals to acquire engine manufacturer Detroit Diesel and Canadian-based truck maker Western Star.
Navistar shares have been down in the past year, and the meeting is aimed at finding ways to give it a boost amid fears of a decline in the North American truck market. The company also announced Monday the creation of a separate subsidiary for its engine division, to be called International Engine Corp. Transport Topics
Trailer Maker Wabash National Reports Earnings And Sales Dip
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In the second quarter, net income was $7.5 million, or 31 cents per share, the report said. Net sales were also off from last year's second quarter performance, down from $380.2 million to $358.7 million.
Shipment rates have improved and are expected to continue to do so, Wabash CEO Jerry Ehr-lich said in the report, but production in the second quarter exceeded shipments by approximately $25 million.
The startup of Wabash's new E-Coat line in its Tennessee plant also reduced second quarter earnings, Ehrlich said. Transport Topics
Allied Holdings' Income, Revenues Up in Second Quarter
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Net income went up 68% to $4.1 million, or 53 cents per share, while revenues went up 3% to $295.9 million. Allied CEO A. Mitchell Poole attributed the increases to cost-cutting moves by the company, which increased revenue per unit despite a decline in the total number of vehicles transported. Fuel surcharges also helped offset the rise in fuel costs, the report said. Transport Topics
Noble International Acquires Parts Delivery Provider DSI Holdings, Inc.
Automobile parts supplier Noble International, Ltd., said this week it has purchased all outstanding stock of DSI Holdings, Inc., a Houston-based auto parts delivery provider.DSI delivers auto parts to local and regional dealerships and wholesale distributors through more than 1,200 independent contract drivers.
Noble is a full-service automotive parts supplier. Transport Topics
FedEx Ground to Apply Fuel Surcharge on Services
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The company said the surcharge is being applied in an attempt to offset high fuel costs during the peak shipping season. Transport Topics
