Executive Briefing - July 17
- C.H. Robinson Reports Rise in 2Q Profits
- Layoffs Continue Across Manufacturing Sector
- Heartland Express Earnings Rise 8.8%
- Dana Reports 83% Earnings Decrease
- CN Aims at Truck Traffic; Opens Steel Center
- Conn. Studies Profitability of Barge Service
- Trism to Cut Jobs, Halt Some Services
- Dye Helps Illinois Crack Down On Illegal Fuel Use
- Postal Service Seeks New Revenue Source
- Two Illinois Stations Get WIM Technology
- J.B. Hunt Earnings Decline
- Layoffs Continue Across Manufacturing Sector
C.H. Robinson Reports Rise in 2Q Profits
C.H. Robinson Worldwide Inc. (CHRW), one of the largest third-party logistics companies in North America, reported net income for the second quarter of $22.6 million or 26 cents per share, compared with 22 cents during the same period last year.The company said it saw a 16.2% increase in business from trucking companies compared with the second quarter of last year as freight volumes increased.
Net revenues increased 10.9% to $118.0 million and income from operations rose 16.3%.
(Click here for the full press release.)
Layoffs Continue Across Manufacturing Sector
Several major manufactuers have announced job cuts this week, which they have blamed on a sluggish economy and lower quarterly earnings.Job cuts in the manufacturing sector are important for the trucking industry because it usually presages a decline in the volume of truck shipments.
Among the recent announcements:
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Heartland Express Earnings Rise 8.8%
Despite high fuel costs and a shortage of independent contractors, Heartland Express Inc. (HTLD) said Tuesday that net income for the second quarter was $9.7 million or 31 cents per share, up 8.8% from the second quarter of 2000.
During the quarter ended June 30, revenue increased 8.6% to $75.3 million from $69.3 million. The Coralville, Iowa-based company said it posted an industry-leading operating ratio of 82.1% and a 12.8% net margin.
The company also said it is moving forward with a plan to update its tractor and trailer fleet with approximately 100 Freightliner Columbia tractors and 450 Wabash Duraplate trailers.
Heartland Express is ranked number No. 58 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Dana Reports 83% Earnings Decrease
Dana Corp. (DCN), which makes parts for both light and heavy trucks, reported a second-quarter net income of $26 million or 17 cents a share, down 83% from the same period of last year.
Although Dana said it was not very optimistic about the rest of the year, it was pleased that its commercial vehicle systems unit increased profits, despite lower sales to the heavy-duty truck market.
The company attributed the lower earnings to slow vehicle production in the United States, which has decreased the demand for its components and complete systems to manufacturers and their aftermarkets.
According to Bloomberg, analysts had been expecting earnings of 13 cents per share. Transport Topics
(Click here for full press release.)
CN Aims at Truck Traffic; Opens Steel Center
In bid to capture traffic from trucking, Canadian National Railway Co. (CNI) said that it will open a new $6 million steel transfer center in Hamilton, Ontario.
According to the CN press release, the new center will position the company to take a greater share of the North American sheet steel market, and to help reduce truck traffic on congested Ontario highways.
According to Jerry Boland, CN’s vice president for metals and minerals, Hamilton is Canada’s major steel producing area, and southwestern Ontario is the country’s largest steel consumer.
He said the market requires the transportation of nearly 11 million tons of product each year – mostly by truck.
CN expects the facility will generate several hundred thousand tons of throughput, mostly coiled steel which will move into the Hamilton center, where it will be transferred to or from rail car and truck for local manufacturers. Transport Topics
(Click here for the press release.)
Conn. Studies Profitability of Barge Service
A study by the Conn. Department of Transportation found that using barge services or other water-transport from the state pier in New London to move freight could be a cost-efficient alternative to trucks, the Associated Press reported.The state is currently considering several ways to alleviate highway congestion from truck traffic.
The pier in New London is currently being renovated, and the state has also looked at New Haven and Bridgeport for cargo operations. The article said the port at New London could also be used for cargo heading for Providence, R.I., and Worcester, Mass.
The major concern with pier is that there is insufficient land available for warehouses and storage space. Transport Topics
Trism to Cut Jobs, Halt Some Services
Trism Inc. (TSMX) said Monday that it will cut an unspecified number of jobs and stop carrying general freight and hazardous waste in an effort to return to profitability.
The Kennesaw, Ga.-based company said in a press release it will focus on hauling government munitions, commercial explosives and radioactive waste. Trism will also sell excess truck trailers and close several terminals.
Trism said it has reached agreements with Mercedes-Benz Credit Corp. and other equipment lenders to reschedule certain equipment payments and to return excess tractors.
Trism is ranked number No. 56 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Dye Helps Illinois Crack Down On Illegal Fuel Use
Illinois officials have stepped up efforts to catch people who are illegally using diesel fuel made for off-road use in trucks and cars, the Associated Press reported.Last year, the state began a "dyed diesel" program to make the sale of off-road diesel more efficient. The fuel has a red color to indicate it was sold for off-road use and is exempt from Illinois' 21.5-cent-a-gallon motor fuel tax.
Three officials have been inspecting trucks stopped at weigh stations and at check-points set up to inspect all vehicles that come by.
In a recent inspection of 580 vehicles, 45 were found to have illegal fuel, the state's Revenue Department said.
etting caught in Illinois with dyed diesel in an on-road vehicle carries a $2,500 fine. Transport Topics
Postal Service Seeks New Revenue Source
Facing a possible $2 billion deficit this year, the United States Postal Service is looking at ways to increase revenue through additional advertising, Newsday reported.
In January, the Postal Ad Network was created to begin selling space on its trucks and mail packages.
The article said America Online was one of the first companies to buy ads on mail trucks in 10 major markets. Also, Pitney Bowes bought ads for its small business products on priority mail envelopes.
Soon ads will likely appear on the blue mailboxes and even stamp booklets. The Postal Service is hoping, within a few years, to bring in about $200 million from advertising annually. Transport Topics
Two Illinois Stations Get WIM Technology
International Road Dynamics said it has received contracts to automate two truck weigh stations in Illinois with weigh-in-motion technology.The two stations, Brownstown and Ofalin, will be added to 11 other IRD ramp pre-screening systems and 19 PrePass mainline WIM systems in Illinois.
The PrePass system allows registered compliant trucks to bypass the weigh station on the mainline highway, since they are automatically identified and the WIM technol-ogy confirms compliance at highway speeds.
At Brownstown and Ofalin, ramp pre-screening systems will protect the highway infrastructure by directing only suspected violators to the static scale, while allowing compliant vehicles to go to the bypass lane. Transport Topics
(Click here for the press release.)
J.B. Hunt Earnings Decline
J. B. Hunt Transport Services (JBHT) reported net earnings of $8.6 million, or 24 cents per share for the second quarter, down 23% from the same quarter in 2000.
Although freight demand did improve compared with the first quarter of 2001, it still was well below levels seen last year.
The Lowell, Ark.-based company said total consolidated revenue was $521 million, versus $584 million a year ago.
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.)
