Executive Briefing - April 27
- Strike Forces Layoffs at Comair
- Budget Group Reports 1Q Loss
- CF Opens Largest Border Terminal
- Asian Growth Offsets U.S. Downturn, FedEx Says
- Cummins Wins Exclusive Contract for Dodge Ram Trucks
- Vitran Says Downturn in U.S. More Severe Than Canada
- Intermodal Traffic Drops from Year-Earlier Levels
Strike Forces Layoffs at Comair
Citing losses brought about by a strike among its pilots, Comair has announced a layoff affecting about half of its 4,000 nonstriking employees.The action will take effect May 13, and will include suspension of pay and health and travel benefits for those employees.
Comair pilots, represented by the Airline Pilots Association, have been on strike since March 26, resulting in cancellation of all flights by the Cincinnati-based airline which is owned by Delta Air Lines (DAL).
Randy Rademacher, president of Comair, said that with no revenue coming in for 33 days, the layoffs were unavoidable.
Budget Group Reports 1Q Loss
Budget Group (BD), the world's third-largest car and truck rental system, said it lost $95 million or $2.55 per share in the first quarter, up from $30 million or 80 cents a share a year earlier but in line with its previous guidance.And it said it expects to show net income for the second quarter of $10-$12 million or 27-32 cents per share.
The Lisle, Ill.-based company also said that in the second quarter it projects truck revenue per day "to be flat to down 1% and volume is projected to be down 4%-5%. Transport Topics
(Click here for the full press release.)
CF Opens Largest Border Terminal
Consolidated Freightways (CFWY), which operates less-than-truckload carriers, said that it opened the largest terminal on the U.S-Mexico border Friday.
The 93-door freight distribution center provides 51,000 square feet of warehouse space. The facility could accommodate 2 million pounds of freight per day, the company said.
It is located in Unitec Industrial Park, 13 miles north of Laredo, Texas.
CF is ranked No. 7 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the press release.)
Asian Growth Offsets U.S. Downturn, FedEx says
The head of FedEx's (FDX) Asia-Pacific operations says growth in that region is offsetting the softening which has resulted from the slowdown in the U.S. economy, Reuters has reported.
David Cunningham said demand comes from companies seeking to revive faltering businesses by improving supply chain management, as well as by steady growth in the Asian economy.
Cunningham predicted that China will be a stellar performer, outstripping the rest of the region over the next 10 to 15 years.
In contrast to past years, he said, China now gets most of the foreign direct invest-ment aimed at Asia and will benefit even more after entry in the World Trade Organization, if that comes.Transport Topics
Cummins Wins Exclusive Contract for Dodge Ram Trucks
Cummins Inc. (CUM) will be the exclusive supplier of diesel engines for Dodge Ram pickup trucks under an agreement announced by the Columbus, Ind.-based engine manufacturer.
Pickups are used in a wide variety of trucking applications, especially among ultility fleets and other service-oriented businesses.
arry Moore, general manager for light-duty automotive at Cummins said the agreement reflects a long-term commitment to the existing relationship between the two companies, under which Cummins has been supplying Ram diesel engines for 13 years.
Cummins has existing supply agreements with a number of manufacturers, including Mack, Volvo, International and Paccar. In the cases of Volvo and Mack, Cummins is the exclusive supplier of any engine not produced by the truck manufacturer itself.
(Click here for the full press release.)
Vitran Says Downturn in U.S. More Severe Than Canada
Vitran (VVN), a Toronto-based transportation and logistics firm, reported a net loss for the first quarter, saying the economic slowdown in the United States is more severe than in Canada.
The company reported a net loss of $1,291,000 ($836,279 in U.S. currency), or 13 cents per share for the first quarter, compared to net income of 16 cents per share last year.
Vitran said its less-than-truckload operation in the United States incurred a loss during the quarter. It was significantly hurt in the Midwest because of a slowdown in manufacturing. Transport Topics
(Click here for the full press release.)
Intermodal Traffic Drops from Year-Earlier Levels
Intermodal traffic for truck-rail freight loads at major U.S. railroads dropped 4.3% for the week ending April 21, to a total of 163,610 units.That was a fall from the same week in 2000 when the total units were 170,997, the Association of American Railroads reported.
When reported separately, the number of truck-trailers, which include only domestic loads, dropped 14.5%. On the other hand, the number of containers rose slightly at 0.4%. Containers include some international shipments.
Railroads reporting to AAR account for 98% of U.S. rail intermodal volume. Transport Topics
