Executive Briefing - May 1
- Congress Reaches Agreement on $1.35 Trillion Tax Cut
- Dow Chemical, Epson Announce Job Cuts
- Airborne Delivery Cites Lack of Growth
- Inland Empire Activity Belies Recession Fears
- Computer Use in Trucking Grows
- UPS Says China Demand Better Than Expected
- Dina Names Garcia Chairman of Board
- Bandag Net Falls 77% on Slow Economy
- Chrysler Sets 2001 Liberty SUV Output at 110,000
- U.S. Xpress Blames Weak Demand For Loss
Congress Reaches Agreement on $1.35 Trillion Tax Cut
The U.S. Congress tentatively agreed on a $1.35 trillion tax cut -- $250 billion short of what President Bush had sought -- on Tuesday, Reuters reportedSenate Majority Leader Trent Lott, a Mississippi Republican, said that GOP leaders in both houses had struck a deal on the tax cut, with some Democrats had joining in the agreement, the wire service noted. A final vote is expected as early as this week.
A tax cut would put more spending money in the hands of U.S. consumers’, which could benefit the trucking industry. When consumer spending increases, trucking shipments rise when more goods are purchased. Transport Topics
Dow Chemical, Epson Announce Job Cuts
Dow Chemical Co. (DOW) said Tuesday that it would cut 4,500 jobs, doubling an earlier job reduction estimate, the Associated Press reported.
Manufacturing job cuts reflect reductions in manufacturing activity, which reduces the volume of truck shipments.
Also Tuesday, printer company Epson said it will eliminate at least 500 workers at its facility in Portland, Ore., KOIN-TV 6 reported. The layoffs will occur in the next six months. Transport Topics
Airborne Delivery Cites Lack of Growth
Airborne (ABF) reported a net loss for the first quarter of $17.0 million or 35 cents per share compared to net earnings of 36 cents per share last year. That was in line with its lowered expectations.
The Seattle-based company said results for the quarter were affected by the slowing economy and the lack of growth in core domestic product.
These were also cited as reasons Airborne said it will be difficult to return to positive operating income during 2001.
However, Airborne is expecting to get a boost in shipment volume from its nationwide Ground Delivery Service, which debuted in April. Transport Topics
>Click here for the full press release.)
Inland Empire Activity Belies Recession Fears
California’s “inland empire” of warehouses is operating at a level that suggests the current economic slump may be shortlived, according to a story in Tuesday’s Wall Street Journal.Big merchandising chains like Kmart, Wal-Mart and Home Depot maintain space in this area which lies in Ontario, Calif. and is served by interstate highways and major railroads.
However, according to the Journal, there is a sense that more product than usual is being warehoused, perhaps with an eye sales later on.
At the nearby Port of Los Angeles, container traffic for March was up 12% from the previous year and port officials are predicting growth for the full year of from 10% to 12%.
The area has seen no layoffs or other reductions and rates for warehouse rates have remained stable, although real estate brokers concede it is taking longer to find tenants.
And trucking companies, which are more sensitive to changes in inventory levels, are seeing a significant dropoff in business, with one small fleet reporting activity off as much as 50%. Transport Topics
Computer Use in Trucking Grows
Use of computer technology to find loads – or match loads to truckers – has become a big part of the trucking world, the Chicago Tribune reported.The most enduring example of trucking’s step into the cyber world is DAT service, founded 22 years ago as Dial-A-Truck, and using a single computer monitor at a truck stop in Portland, Ore.
Now most truck stopping centers boast numbers of computers available for use 24 hours a day so truckers can search special web sites for loads as well as to send e-mail to family and clients. Transport Topics
UPS Says China Demand Better Than Expected
United Parcel Service (UPS) said demand to ship cargo to China from the United States is much better than expected, Bloomberg noted from an article in the Asian Wall Street Journal.
The Atlanta-based company had been expecting demand from China to the United States to be as much as five times greater than deliveries to China from the United States.
The U.S. Department of Transportation awarded UPS rights to fly directly to China in January. Air cargo shipments from China have been expanding about 20% per year.
UPS is ranked number No. 1 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
Dina Names Garcia Chairman of Board
Mexican truck manufacturer Consorcio G Grupo Dina (DIN) said that it named Jose Gamaliel Garcia chairman of the board.
Garcia replaces the late Rafael Gomez Flores, who died shortly after he resigned earlier this year.
The company, which makes trucks and buses, has been in financial trouble and its shares have been suspended from both the Mexican and New York stock exchanges. Transport Topics
Bandag Net Falls 77% on Slow Economy
Tire retreader Bandag (BDG) reported net earnings of $2.3 million in the first quarter, a decline of 77% from the $10 million earned in the first quarter of 2000. Sales were $209.2 million, down 6.7% from the $224.3 million figure reported last year.Bandag manufactures tire retreading equipment and materials for a worldwide network of franchised dealers.
Martin Carver, chairman, said reduced demand for trucking services pushed fleets to seek price reductions from their suppliers. That affected prices of both new and retread tires.
He also said the conditions affected Bandag's subsidiary, Tire Distribution Systems, which experienced a 7% decline in revenues. Transport Topics
(Click here for the full press release.)
Chrysler Sets 2001 Liberty SUV Output at 110,000
DaimlerChrysler (DCX) said Monday its Chrysler unit expects to build 110,000 of the new Jeep Liberty sport-utility vehicles this year, Bloomberg reported.
SUVs are used in a wide variety of trucking applications, especially among utility fleets and other service-oriented businesses.
Commercial production of the Liberty has started at a new plant in Toledo, Ohio, and shipments to dealers will begin later this week.
The Germany-based company is counting on this new vehicle to help Chrysler return to profitability. Transport Topics
U.S. Xpress Blames Weak Demand For Loss
Weak freight demand and decreased utilization kept truckload carrier U.S. Xpress (XPRSA) from returning to profitability in the first quarter, the Chattanooga-based company said.
U.S. Xpress, which is the fifth largest publicly owned truckload carrier in the nation, reported a net loss of $1.22 million or 9 cents per share, compared with net income of $868,400 or 6 cents in the previous year.
Max Fuller, who, with Patrick Quinn, is co-chairman, said the company is focused on improving margins through internal initiatives to reduce fixed costs and expand the customer base.
U.S. Xpress is ranked number No. 22 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for full press release.)
