Executive Briefing - April 26
- Smithway Hurt by Soft Demand, Poor Weather
- Xtra Earnings Down as Freight Volume Drops
- UPS Introduces Series of New Services
- Employment Cost Index Rises 1.1%
- Old Dominion's Profit Falls
- Oshkosh Earns 5% Less Than Last Year
- J.B. Hunt Renews Deals With Georgia-Pacific
- Scania to Cut 1,200 Jobs
- Frozen Food Express Doubles 2000 Loss
- Union Pacific Earnings Down, but Overnite's Income Up
- ArvinMeritor to Relocate Aftermarket Facility
- Lane Closures at Wilson Bridge May Hinder Trucks
Smithway Hurt by Soft Demand, Poor Weather
Smithway Motor Xpress (SMXC) reported a net loss of $1.3 million, or 26 per share as soft freight demand and poor winter weather affected its profitability.
In comparison, last year Smithway earned 5 cents per share during the first quarter.
Chief Executive Officer William Smith said average revenue per tractor per week dropped $130 to $2,193 during the quarter. In addition, the weather caused increased towing and repairs expenses, and made deliveries difficult.
Smith also said he expects the economic slowdown to continue at least through the second quarter.
(Click here for the full press release.)
Xtra Earnings Down as Freight Volume Drops
Xtra Corp. (XTR) said that it earned $8 million or 67 cents per share during the second quarter ended March 31, a drop from year-earlier earnings of $13 million or $1.12 per share.
The company blamed the reduced freight volume for the dropped earnings.
Based in Westport, Conn., Xtra leases over-the-road trailers, intermodal equipment, chassis and containers. Transport Topics
(Click here for the press release.)
UPS Introduces Series of New Services
United Parcel Service (UPS) said Thursday that it has begun a series of new services to enable global commerce and technology.
One of the new services is hybrid mail, which allows companies to send data (such as monthly bills) to UPS. The company then sorts, prints and sends the mail.
UPS is ranked number No. 1 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the press release.)
Employment Cost Index Rises 1.1%
The Labor Department said Thursday expenses for U.S. businesses accelerated in the first quarter as wages and benefits increased.The index rose 1.1% in the quarter ended March 31, following a 0.9% percent rise in the previous quarter. Wages and salaries make up almost 75% of the index, and employer-paid health insurance premiums account for about 5%.
The report found labor costs rose 4.1% during the past 12 months.
However, slower economic growth may contain costs in the coming months, Bloomberg reported, which would make it easier for the Federal Reserve to reduce interest rates. Transport Topics
Old Dominion's Profit Falls
Old Dominion Freight Line (ODFL) said net income for the first quarter decreased to $1,001,000 or 12 cents per share, compared to $2,327,000 during the same quarter of last year.
The High Point, N.C.-based company said it was unable to achieve the operating leverage it anticipated because of the slowing economy. It also incurred higher costs due to the integration of Carter & Sons Freightways.
Revenue during the quarter was $120,270,000, a 6.6% increase from last year.
Old Dominion Freight Line is ranked number No. 37 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Oshkosh Earns 5% Less Than Last Year
Oshkosh Truck Corporation (OTRKB) said Thursday that it earned $11.3 million or 66 cents per share during its second quarter ending March 31, down 5% from the same period last year.
The company warned its earnings estimate for the fiscal year ending September 30, 2001 will be about $2.80 per share. Previously, it said it would be in the range of $2.80-$3.00 per share.
he Oshkosh, Wis.-based company said its specialized trucks in the defense and emergency markets have been especially vulnerable to economic fluctuations. Transport Topics
(Click here for the press release.)
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J.B. Hunt Renews Deals With Georgia-Pacific
J.B. Hunt Transport (JBHT) said Thursday it has renewed four dedicated contracts with Georgia-Pacific (GP) .
The deals continue J.B. Hunt's dedicated fleet services at four Georgia-Pacific converting plants. It delivers corrugated boxed and sheets to Georgia-Pacific customers in each region of the deal.
The company said this deal improves transportation service reliability, lowers costs and improves distribution operations.
J.B. Hunt is ranked number No. 10 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Scania to Cut 1,200 Jobs
Scania, the world's third-largest maker of heavy trucks, said it will cut 1,200 jobs or 4.2% of its workforce in Europe after first-quarter earnings fell 13%, Bloomberg reported.
The Swedish company also warned full-year profit will be below current estimates.
Scania, which like European rivals DaimlerChrysler and Man has been hurt by falling demand from freight haulers, said sales in Western Europe fell 17% during the quarter. Transport Topics
Frozen Food Express Doubles 2000 Loss
Citing a big slowdown in non-freight business, Frozen Food Express Industries (FFEX) reported a net loss of $1,004,000 or 6 cents a share for the first quarter.That compares with a net loss of $563,000 or 3 cents per share in the same period last year.
Stoney Stubbs, chairman, said the first quarter is usually the weakest for Frozen Food Express, but the first quarter of 2000 had included some unusually large non-freight equipment sales which were not matched in 2001.
Total first-quarter revenues for the refrigerated trucking company, which provides truckload, less-than-truckload and distribution transportation, was $89,488,000, compared with $92,416,000 in 2000.
(Click here for full press release.)
Union Pacific Earnings Down, but Overnite's Income Up
Declining shipments of vehicles and chemicals, together with rising fuel costs, depressed first-quarter earnings 2.2% at Union Pacific (UNP).
Net income at the largest U.S. railroad fell to $181 million or 72 cents a share, compared with $185 million or 74 cents in the first quarter of 2000. Sales rose 1.3% to $2.94 billion.
Meanwhile, Overnite Transportation, UP's trucking subsidiary, reported an increase of net income to $7.9 million based on first quarter revenue of $280 million.
The company's cost cutting efforts were credited for the result.
Overnite Transportation is ranked number No. 18 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the press release.)
ArvinMeritor to Relocate Aftermarket Facility
Vehicle parts maker ArvinMeritor (ARM) said Wednesday it will relocate its light vehicle aftermarket (replacement parts) operations from Pulaski, Tenn., by the end of the year.However, the light vehicle systems operation, adjacent to the aftermarket facility, will remain at its current location.
The company has similar aftermarket facilities in Canada, Oklahoma, Venezuela and Mexico.
ArvinMeritor said light vehicle aftermarket sales were $216 million for the second quarter ended March 31, down 11% from last year. (See Executive Briefing, April 25)
(Click here for the full press release.)
Lane Closures at Wilson Bridge May Hinder Trucks
Trucks traveling southbound on I-95/495 at the Woodrow Wilson Bridge between Virginia and Maryland will encounter lane closures Friday night and Saturday morning, the Virginia Department of Transportation said.Two of three lanes will be closed from 9 p.m. on April 27 until 10 a.m. on April 28. Occasionally, all lanes will be closed for 15 minutes during this time.
VDOT plans to replace the steel grid deck on the bridge during the closures. Transport Topics
