Executive Briefing - June 1
- Major Companies Announce Job Cuts
- Truckers More Likely to Suffer From Heart Disease
- OPEC Not Expected to Increase Production
- Roadway Warns 2Q Profit to Fall 60%
- Two Named for DOT Posts
- Volvo to Cut Jobs in Europe
- MAN Warns on Fiscal 2001 Earnings
- Truck Accidents Near Boston Cause Concern
- Device Tries to Protect Perishables
- Truckers More Likely to Suffer From Heart Disease
Major Companies Announce Job Cuts
A wide range of companies announced on Friday that they will cut job cuts in the United States, blaming the slowing economy and a reduction in demand for their products and services.Cuts in the manufacturing sector are especially important for the trucking industry because it usually means a decline the volume of truck shipments in the next few months.
Among the companies announcing cuts on Friday were:
- Airborne Inc. (ABF), the parent company of package shipper Airborne Express, said it will lay off 640 workers as shipments slow. (See related story.)
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- Cummins (CUM), a leading producer of commercial diesel engines, said it will reduce its workforce by at least 500 over by the end of the year. (See related story.)br>
- After eliminating 300 positions last month, digital organizer maker Palm (PALM) said it would make new job cuts in its next fiscal quarter, even though it was gaining market share. In April, Palm cut about 300 positions, or about 16% of its work force.
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- French telecom equipment giant Alcatel (ALA) said on Friday it will fire 900 workers or 5.6% of its U.S. work force and close three U.S. facilities because of tough business conditions.
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- DuPont (DD), the No. 1 U.S. chemical company, said that work force cuts would be larger than originally forecast. In April, it said it would cut about 4,000 jobs.
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- Car battery manufacturer Exide Technologies (EX) said it will close its Oklahoma City distribution center in August and cut about 100 jobs. Transport Topics
Truckers More Likely to Suffer From Heart Disease
Truck drivers, along with airline pilots and rail workers, are most likely to suffer from heart disease and diabetes because of the stress, tension and shift work, researchers said Friday.peaking at a obesity conference, Dr. Svetoslav Handijev of the Department of Nutrition at the Transport Medical Institute in Bulgaria, said the long hours of immobility driving a truck, coupled with odd eating patterns and working hours contribute to an unhealthy lifestyle, Reuters reported.
Handijev’s study found that more than 65% of transport workers were found to be either overweight or obese. They also had higher levels of Type 2, or adult onset diabetes, and heart disease than people in other occupations. Transport Topics
OPEC Not Expected to Increase Production
The Organization of Petroleum Exporting Countries is expected to decide against raising production when they meet next week, even though oil prices are more than $28 per barrel, the Wall Street Journal reported.The article said with U.S. inventories running 20 million barrels higher than last year, the ministers will likely decide to postpone an increase until later in the year.
Although Saudi Arabia, the world’s biggest oil exporter, signaled it wanted a small increase, it now appears they are willing to wait at least several more months.
The Saudis have promised the Bush administration they will do what is needed to keep oil prices from spiking. Transport Topics
Roadway Warns 2Q Profit to Fall 60%
Roadway Express (ROAD) said second-quarter profit will be at least 60% less than the 52 cents it earned during the corresponding period in 2000.
The Akron, Ohio-based company said tonnage levels are about 13% below those of a year ago, and there are no signs of a turnaround in underlying economic conditions.
Michael Wickham, chief executive officer, said Roadway will look to cut costs in ways that may include “maintaining workforce levels that are consistent with business volumes."
Roadway Express is ranked number No. 6 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Two Named for DOT Posts
The Bush administration said Thursday it will nominate Ellen G. Engleman to be Administrator of the Research and Special Programs Administration at the Department of Transportation, and Kirk Van Tine to be General Counsel of the DOT.Engleman currently serves as president and chief executive officer of Electricore, a non-profit research and development consortium that develops advanced transportation and energy technologies through federal partnerships.
Van Tine is currently a partner with the law firm of Baker and Botts, where he is in charge of the firm's litigation process. Transport Topics
Volvo to Cut Jobs in Europe
Volvo AB (VOLVY) said that is will cut jobs in Europe during the second quarter due to the weakening economy and slowing demand for trucks, Bloomberg reported from an article published in a German newspaper.
The company did not disclose any further details.
Volvo had eliminated 1,400 jobs during the first quarter in North America, but said no additional cuts are anticipated in the United States because it is expecting a market recovery in by the end of the year.
However, Volvo will make the cuts in Europe following a 10% fall in market demand for trucks, buses and construction machines, the article said. Transport Topics
MAN Warns on Fiscal 2001 Earnings
MAN AG, Germany’s second-largest truck maker, said its profit for the current fiscal year will fall more than 10% already announced due to higher costs and lower demand.
During the first three months of the year, Western European new commercial vehicle sales fell 3.5%. Heavy trucks account for about 40% of MAN’s total sales.
The pretax profit is expected to drop more than $56 million, due in part to production expenses for a new truck model.
To cut costs, the company has cut 800 jobs and previously said it plans to eliminate 400 more. Transport Topics
Truck Accidents Near Boston Causing Concern
Several recent accidents involving trucks on the Tobin Bridge ramp in Chelsea, Mass. near Boston have locals angry that previous complaints appear to have been ignored, the Boston Globe reported.At least 1,000 trucks use the ramp each day, and there have been seven serious accidents since 1998, the article said.
Police have recently begun cracking down on speeding and hazardous driving, and are beginning to randomly inspect some trucks passing through the area.
Last year, residents living near the base of the ramp, asked the state to close it, saying it is too dangerous for heavy trucks because the streets provide little margin for error. Transport Topics
Device Tries to Protect Perishables
/h4> A new wireless application designed to help trucking companies protect perishable goods in both refrigerated and heated trailers has debuted, according to Newsfactor.com.
Canada-based AirIQ said its application allows fleet managers to get updated information on their vehicles and the status of the perishable goods they are transporting from almost any wireless device.
The system can also be used to notify customers of upcoming arrivals, take inventory, locate lost vehicles and to remotely disable stolen vehicles. Transport Topics
