Executive Briefing - May 2
- Arnold Industries Reports Lower Earnings
- Continental Launching ABS for Medium-Duty Trucks
- Crude Oil Prices Plunge as Inventories Rise
- Lockheed Builds Driver Trainer for Werner
- UPS Logistics Buys Polysys Assets
- Mississippi Flooding Threatens Spring Planting
- FedEx Signs Deal With U.K.'s Business Post
- BNSF Rail Raises Intermodal Price
- Tax Cut Deal Could Slow Estate Tax Repeal
- Mexican Trucks Won't Undergo U.S. Check for 18 Months
- Reorganization Charges Hurt Volvo Earnings
- U.S. Senators Target SUV Fuel Standard
- Delphi Opens Ford Center
Arnold Industries Reports Lower Earnings
Transportation and logistics company Arnold Industries (AIND) said Tuesday that it earned 30 cents per share for the first quarter, down from 36 cents per share during the same period last year.Net income for the Lebanon, Pa. company was $7.4 million, down from $8.9 million in the first quarter of 2000.
Company Chairman and President E.H. Arnold blamed decreased freight volume for the slumped earnings. He said, "At the moment in the truckload world, there are too many trucks chasing too little freight."
Arnold is ranked number No. 36 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
Continental Launching ABS for Medium-Duty Trucks
Continental Teves, a unit of Continental, said it is preparing to launch a version of its MK series of four-wheel anti-lock brake systems for medium-duty trucks at its facility in Morganton, N.C.The company said it is the first ABS on the market with traction control for commer-cial-sized, hydraulic brake trucks.
Continental Teves began making anti-lock brake systems in 1984. Transport Topics
(Click here for the full press re-lease.)
Crude Oil Prices Plunge as Inventories Rise
Crude oil prices dropped Wednesday following an unexpected rise in inventories, Bloomberg reported.U.S. crude oil inventories rose 8.28 million barrels, the American Petroleum Institute said. Analysts had expected a drop of 800,000 to one million barrels, the article said.
In New York, the trading price for light sweet crude oil fell 99 cents to $27.95 per barrel. The trading price in London fell by 80 cents to $27.53 per barrel.
U.S. gasoline inventories also rose by 3.04 million barrels, which was more than expected, Bloomberg reported. This narrowed the gap from last year to 1.8%. Transport Topics
Lockheed Builds Driver Trainer for Werner
Werner Enterprises (WERN), became the first trucking company to employ simulation-based training upon taking delivery of a high fidelity, motion-based truck driver trainer system developed by Lockheed Martin (LMT).
According to John Hallal, president of Lockheed Martin Information Systems, the simulation will allow drivers to experience realistic vehicle handling characteristics in potentially dangerous situations without risk to themselves or their equipment.
Werner, a truckload carrier based in Omaha, Neb., is ranked number No. 20 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
UPS Logistics Buys Polysys Assets
UPS Logistics, a wholly owned subsidiary of United Parcel Service (UPS), said Wednesday that it bought the assets of Swiss logistics company Polysys Electronic Systems.
Terms of the agreement were not disclosed. Polysys provides service parts logistics for the technology, telecom and pharmaceutical markets.
The Atlanta-based company said that the acquisition is part its plan to expand its global presence.
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.)
Mississippi Flooding Threatens Spring Planting
The flooding on the Upper Mississippi River may affect fertilizer supply and prices, the Associated Press reported.Most years, anhydrous ammonia moves up the river from the Gulf of Mexico to Minnesota and neighboring states, and a switch to rail or truck could tighten supplies and send prices soaring.
While Minnesota suppliers stockpiled fertilizer for farmers who locked in prices last year, it will not meet all of the expected demand as the spring planting gets under way.
Without the starter fertilizer that goes in at the same time seeds are planted, yields could drop, said Chuck Schwartau, a University of Minnesota extension educator. Transport Topics
FedEx Signs Deal With Business Post
FedEx (FDX) has dropped Securicor Omega, its longtime British delivery and collection partner in Britain, and signed a five-year agreement with Business Post, the Journal of Commerce reported.
The move ends a nine-year relationship with Securicor Omega, which is 50% owned by Deutsche Post World Net, the German company that recently took control of DHL Worldwide Express.
Business Post is expected to generate around $21 million a year in revenue from the agreement. It will make collections and deliveries on behalf of FedEx and add areas of Britain that it does not currently serve directly. Transport Topics
BNSF Rail Raises Intermodal Price
Railroad giant Burlington Northern Santa Fe (BNI) has responded to increased demand by raising prices for eastbound intermodal service, Reuters reported Tuesday.Intermodal service uses rail for the long haul part of a freight movement, switching to truck for local delivery.
According to the article, BNSF said standard flows of freight have changed, with more traveling eastbound than westbound.
While the increase was only on intermodal, Steve Branscum, vice president of consumer products marketing for BNSF, said general rates would probably go up 3 to 5% before the end of the year, Reuters said. Transport Topics
Tax Cut Deal Could Slow Estate Tax Repeal
That compromise tax-cut outline that President Bush and congressional leaders agreed to on Tuesday could have the effect of slowing down Bush’s proposal to eliminate the estate tax, several news reports suggested.That so-called “death tax” has long been opposed by many business groups, including the American Trucking Associations. It can require small firms to sell off assets or even dissolve in order to pay estate taxes when a principal of the company dies.
But stories in both the Wall Street Journal and USA Today on Wednesday said that because the compromise tax cut is smaller than Bush originally proposed, some lawmakers are considering whether to leave out repeal of both the estate tax and the marriage penalty for now. Transport Topics
Mexican Trucks Won't Undergo U.S. Check for 18 Months
Mexican trucks will not have to undergo safety checks in the United States for up to 18 months after they have full access to American roads if proposed federal rules announced Tuesday become final (see related story, May 1), the Associated Press reported.Under the rules, Mexican trucking companies will be required to provide detailed information about their safety practices and show they are in compliance with U.S. trucking regulations.
Then, within 18 months, U.S. officials will check the paperwork for accuracy.
The Mexican trucks also will be subject to spot inspections by U.S. authorities as they cross the border and to roadside inspections at any time.
This plan has upset critics, who said the trucks should be thoroughly inspected before being allowed to operate in the United States. Transport Topics
Reorganization Charges Hurt Volvo Earnings
Citing 1.3 billion kronor ($127.3 million) in reorganization charges, Volvo AB (VOLVY) posted a loss for the first quarter of 801 million kronor, or $78 million, Bloomberg reported.
The Swedish truck manufacturer is scaling back production to meet lower demand. Volvo sells about a third of its trucks in North America, where sales have fallen 38% in the first three months of the year.
The European newspaper Dagens Industri, predicted new layoffs in the coming year that could climb to 4,000, in the United States and in Europe, if demand continues to fall.
Overall truck sales in Europe rose 0.4% during the quarter.
Volvo spokesmen said the company will take reorganization charges of 4 billion kronor, or $391.7 million, by the end of 2003.
However, Volvo executives predicted the purchase of Renault's RVI Mack unit in the United States will produce savings of $3.5 billion kronor or $342.7 million. Transport Topics
U.S. Senators Target SUV Fuel Standard
A bipartisan group of U.S. senators have introduced a bill that would require higher fuel standards for sport utility vehicles and light trucks, Reuters reported.These vehicles are used in a wide variety of trucking applications, especially among utility fleets and other service-oriented businesses.
The bill, sponsored by California Democrat Dianne Feinstein and Maine Republicans Olympia Snowe and Susan Collins, seeks to close a loophole that allows SUVs to average only 20.7 miles per gallon, while passenger cars must average 27.5 miles per gallon.
The senators said these higher standards would conserve one million barrels of oil per day. They also said it would limit the nation's dependence on foreign oil, and would cut carbon dioxide emissions.
Opponents of the bill said it would force vehicle makers to build smaller, lighter trucks. Transport Topics
Delphi Opens Ford Center
Delphi Automotive Systems (DPH) has opened a center to design vehicle parts specifically for Ford Motor Co. (F).
Ford is a rival of Delphi's former parent, General Motors (GM).
Delphi said the Dearborn, Mich. center will house more than 240 engineers, sales and support staff dedicated to Ford business.
Delphi sold 66% of its products to General Motors during the first quarter of 2001, down from 71% from the previous quarter. Transport Topics
(Click here for the full press release.)
