Executive Briefing - Nov. 7
- Texas Truck Chase Ends With Arrest
- USPS Increases Reward for Anthrax Info
- SDC Buys 92% of Czech Truck Maker
- Illinois Turns Up Heat on Trucks
- British Airways 2Q Income Down 85%
- Greenbrier Cos. Sees 2001 Earnings Plummet
- Postal Service to Ask Congress for Bailout
- FBI Says Bridges Threat Not Credible
- GM North America Expects 2002 Profits
- Truck Stops Seeing Upswing in Audio Book Sales
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Eaton Looks to Buy While Prices Are Low- Waste Management Announces Higher 3Q Net Income
- Expeditors International Sees Profits Rise
- USPS Increases Reward for Anthrax Info
Texas Truck Chase Ends With Arrest
A man was arrested Wednesday after leading Dallas-area police on a nearly two-hour long chase in a stolen 18-wheel truck, news services reported.The truck was carrying a load of lumber, plastic piping, a forklift and other construction materials, some of which caught fire at times during the high-speed pursuit, CNN and Reuters said.
The truck was eventually stopped and the driver arrested, but not before the truck weaved in and out of traffic along interstate freeways and residential streets, spilling part of the payload along the way. Transport Topics
USPS Increases Reward for Anthrax Info
The U.S. Postal Service has increased its reward for information on the anthrax mailings which have killed four and touched off nationwide anxiety about the mails, the Associated Press reported.The new reward is $1.25 million, thanks to a $250,000 boost from advertising company Advo, Postmaster General John E. Potter. Mail related industries, including catalog sales and greeting card companies employ 9 million U.S. workers and contribute $900 billion to the U.S. economy each year, the AP reported.
More than 30 billion pieces of mail have been delivered since Sept. 11, but only three are known to have been infected with anthrax. Transport Topics
SDC Buys 92% of Czech Truck Maker
SDC International said Wednesday that Czech Republic government has approved SDC's purchase of a 92% stake in truck manufacturer Tatra.Tatra, which used to make huge numbers of trucks in the Communist era, produced 1,017 off-road trucks in during the first nine months of 2001, down 12.7% over the same period last year. However, strong second-half sales have the company projecting stronger full-year sales.
SDC Chairman Ronald Adams said, "Our financial commitment for this acquisition of Tatra totals more than $30 million. This includes the purchase price for the Tatra shares, our investment commitment over the next twelve months, and refinancing of existing bank working capital lines of credit."
SDC said it hopes to close the transaction by the end of the year. Transport Topics
(Click here for the full press release.)
Illinois Turns Up Heat on Trucks
Illinois, like other states, is turning up the heat on trucks within its borders, according to a report in the Chicago Tribune.The state’s law enforcement and transportation authorities are also asking the public to be aware and alert for suspicious trucks.
During the month of September, state police inspected 1000 trucks, more than 500 of those were in northern Illinois, the paper said. That was about double the usual number looked at during a routine month.
Of the 1,000 trucks examined, more than 200 were hauling hazardous materials. Hazmat trucks have come under intense scrutiny amid fears they could be used in a terrorist attack. Transport Topics
British Airways 2Q Income Down 85%
British Airways PLC, the largest airline in Europe, saw its net income for the second quarter ended Sept 30 plummet 85% in the wake to the Sept. 11 terrorist attacks, news services reported.The company’s cargo revenues fell 26.3% during the quarter. In 2000, the company hauled 236,000 metric tons of cargo and earned $221.7 million. In the most recent three months, the company carried 178,000 metric tons and earned $163.4 million.
Overall. the airline posted a net profit of $7.3 million between, down from $299 million for the same three months last year. Transport Topics
Greenbrier Cos. Sees 2001 Earnings Plummet
The Greenbrier Cos., a transportation equipment supplier, reported net earnings of $1.1 million or 8 cents per share for the 2001 fiscal year ended Aug. 31.The figure compared with a net income of $14.4 million or $1.01 per share in fiscal 2000.
"Market conditions in the North American rail supply industry remain depressed and we have, as of yet, not seen signs of recovery,” said William Furman, president and chief executive officer.
The Lake Oswego, Ore.-based company also announced a cash dividend of 6 cents per share for stockholders of record as of Nov. 21.
For the fourth quarter of the fiscal year, Greenbrier reported a net loss of $623,000, as compared with earnings of $5.4 million in the fourth quarter of fiscal 2000. Revenues for the quarter were $135 million, and for the full year, $594 million. Transport Topics
(Click here for the press release.)
Postal Service to Ask Congress for Bailout
Like the airline industry did immediately following the terrorist attacks, the U.S. Postal Service is expected to ask Congress on Thursday for a bailout to cover the costs to make mail safe, the New York Times reported.The USPS, which has received $175 million from the government to buy respirator masks, gloves and other safety enhancements for employees, said that the volume of mail has dropped 10% percent since the anthrax scare started, costing at least $500 million in lost revenues.
Despite two rate increases this year, the service finished its 2001 fiscal year on Sept. 30 with a $1.65 billion shortfall, and it expects to lose at least an additional $1.35 billion this year, the Times said.
Even before anthrax appeared in the mail, postal officials had been seeking to increase the cost of a first-class stamp to 37 cents from 34 cents. Transport Topics
FBI Says Bridges Threat Not Credible
The warning that terrorists might attack West Coast bridges was based on intelligence that was not credible, the FBI said Tuesday.However, news services reported that law enforcement agencies were advised to remain on high alert.
The agency received the intelligence last week and issued a warning to law enforcement in eight states. California Gov. Gray Davis went public with the information, and National Guard troops took up positions on the bridges.
Davis said he intends to keep troops at the Golden Gate and San Francisco-Oakland Bay bridges in the Bay Area, the Vincent Thomas Bridge in San Pedro and the Coronado Bridge in San Diego, the Los Angeles Times reported. Transport Topics
GM North America Expects 2002 Profits
General Motors Corp.’s North American division expects that it will turn a profit in 2002, the Wall Street Journal reported.The announcement comes in the face of intense price competition and the weakest car sales figures since the mid-1990s. In order to maintain profitability, the automaker plans to cut as much as $1 billion on parts and has already moved to cut jobs and take other cost cutting steps, the Journal reported.
While sources at GM did not say how high profits would be for the division, the Journal said that Ron Zarrella, head of GM’s North American unit, indicated they would fall short of the 5% long-range goal the company had set for its profits.
Though not particularly strong, GM’s 2001 results to date have been better than those of Ford Motor Co. and DaimlerChrysler AG -- its two main North American competitors. Transport Topics
Truck Stops Seeing Upswing in Audio Book Sales
Drivers across the country are turning to audio books to pass the time in their rigs, according to the Associated Press.Americana Publishing, a 4-year-old company, is bringing mysteries and Western novels to truck stops in hopes of carving out a niche.
Jerome Ruther, a vice president at Americana, said that the audio books are popular because on long drives, truckers get tired of listening to music and if they travel across several states, the stations fade in and out.
The company has increased sales from $100,000 in 2000 to more than $8 million in 2001. Despite this, the AP said that in its Securities & Exchange Commission filings, Americana has posted combined losses of $3.9 million over the last two years. Transport Topics
(Click here for the full press release.)
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Eaton Looks to Buy While Prices Are Low
The head of Eaton Corp. said that the company plans to make a major acquisition to bolster its electrical controls or hydraulics units, Bloomberg reported.The largest U.S. maker of truck transmissions is looking to take advantage of lower purchase prices and it is prepared to increase its debt-to-capital ratio to more than 60%, Chief Executive Alexander Cutler said at a Goldman, Sachs & Co. conference.
Eaton, said it would not limit its acquisition solely to additions to one of its four main units, but would also look at buying a capital-goods company, Bloomberg said. Transport Topics
Waste Management Announces Higher 3Q Net Income
Waste Management Inc. announced Wednesday that it had net income of $30 million, or 5 cents per share, for the third quarter of 2001 - up from a net loss of $191 million, or 31 cents per share the previous year.The company also said its revenues for the quarter, which ended Sept. 30, were $2.9 billion, down from $3.12 billion for the same period a year ago. The revenue totals for the third quarter of 2000 include $203 million from operations that have been sold since last year.
For the year-to-date, Waste Management is reporting revenues of $8.53 billion, down from 2000's nine-month total of $9.61 billion. The company's net income so far in 2001 is $345 million, or 55 cents per share - up from a loss in 2000 of $136 million, or 22 cents per share, over the first nine months of the year.
"During the third quarter we continued to see good progress towards achieving our 2001 goals," said A. Maurice Myers, chairman, president and chief executive officer of Waste Management.
Waste Management, in a separate release, also announced that it has settled a class action lawsuit alleging it violated federal securities laws. The settlement is valued at $457 million the company said. Transport Topics
(Click here for the full earnings statement.)
(Click here for the full press release about the settlement.)
Expeditors International Sees Profits Rise
Expeditors International of Washington Inc., a global logistics company, reported a net income for the third quarter of $27,369,000 or 50 cents per share, an increase of 7% over the same period last year."Amidst the world's turmoil, we believe that we are fortunate to once again post record operating results," said Peter Rose, chairman and chief executive officer.
Net revenue increased 4% to $157,819,00, while operating income was $42,134,000, a 6% jump. For the first three quarters, earnings rose to $70,126,000 from $57,097,000 in 2000. Transport Topics
(Click here for the full press release.)
