Executive Briefing - Oct. 17
- Ruan President Urges Help Against Terrorists
- Economy, Insurance Costs Hurt Covenant Earnings
- Knight Net Income Down, but Revenue Increases
- GM Aligns Itself With Fuel Cell Developer
- USA Truck Earns 6 Cents Per Share in 3Q
- P.A.M. Transportation Earnings Up Over 2000
- Terror Suspect Tried to Get Job Driving Truck
- Truck School Owner Denies FBI Probe Story
- CNF Reports Net Income Up in 3Q
- U.S. Postal Service Faces New Problems
- FedEx Express to Lower Fuel Surcharge
- Iowa Sends Names of Drivers to FBI
- Navistar Drops ‘Poison Pill’
- Werner Sees Slight Rise in 3Q Earnings
- Forward Air Reports Lower Earnings
- Dana to Cut Workforce by 15%
- Ford Posts Loss of $692 Million
- Firms Join to Acquire Truck Retailers
- AAA Says Price of Gasoline Declining
- Economy, Insurance Costs Hurt Covenant Earnings
Ruan President Urges Help Against Terrorists
The president of Ruan Transport urged Congress Tuesday to adopt a number of steps to help “mitigate the impacts of a terrorist attack on the highway system.”Tony Chrestman, appearing before the Senate Subcommittee on Crimes and Drugs, said a disruption to one part of the transportation system can have “ripple effects” that impact the entire system from coast to coast.
The best way to deal with these disruptions, he said, is to build some redundancy into the transportation system to ensure the continued flow of commerce.
He told the committee that motor carriers have tools “to ensure that trucks and their cargo don’t fall into the wrong hands,” but he said, “we need Congress’ help.”
(Click here to read the full testimony.)
Economy, Insurance Costs Hurt Covenant Earnings
Citing the poor economic climate, as well as rising insurance costs and claims, truckload carrier Covenant Transport Inc. (CVTI) said Wednesday that its third-quarter net income -- before accounting adjustments -- was $1.4 million or 10 cents per share, compared with 22 cents last year.
Revenue for the quarter decreased 3% to $138.1 million from $141.7 million. However, for the first nine months of the year, revenue has increased 1% to $411.1 million.
The company said it trying to increase profits by managing the size of its tractor and trailer fleet, increasing revenue per mile by replacing lower yielding freight. Transport Topics
(Click here for full press release.)
Knight Net Income Down, but Revenue Increases
Truckload carrier Knight Transportation Inc. (KNGT) on Wednesday reported a net income, after charges, of $2.9 million or 12 cents per share, compared with 20 cents last year. Income from operations did increase 30.0% to $10,963,000 from $8,433,000 last year, while revenue, before fuel surcharge, increased 14.4% to $63,785,000.
Chairman and Chief Executive Officer Kevin Knight said he was pleased with the results, especially when considering the difficult economic conditions. Transport Topics
(Click here for full press release.)
GM Aligns Itself With Fuel Cell Developer
General Motors Corp. (GM) announced that it has entered into a strategic alliance with Hydrogenics Corp. to speed the development of fuel cell technology.
The partnership allows for sharing of intellectual property rights and joint efforts in developing, engineering, prototyping, testing, branding and marketing of fuel cells. Many industry observers believe that fuel cells are the key to the trucking industry’s effort to meet new, tougher clean air standards.
As part of the agreement, GM will acquire 11 million shares, or 24%, of the Toronto-based company.
GM has entered into similar agreements with other companies working to develop a viable fuel cell, including: General Hydrogen, Quantum Technologies, and Giner Electrochemical Systems. Transport Topics
(Click here for the full press release.)
USA Truck Earns 6 Cents Per Share in 3Q
Trucking firm USA Truck said that its net income increased $589,287 or 6 cents per share for the third quarter of 2001, compared with $512,357 for the same quarter last year.The company posted record operating revenues of $64,867,371 during the quarter, an increase of 16.8%. USA Truck was also helped by a large decrease in driver recruiting and training costs, as it had its best quarter for driver retention since the 1997.
Based in Van Buren, Ark., USA Truck said it will not trade in any tractors in 2002, but will instead extend the lives of equipment that would normally be turned in next year. Transport Topics
(Click here for the full press release.)
P.A.M. Transportation Earnings Up Over 2000
P.A.M. Transportation Services Inc. reported earnings of 23 cents per share for the third quarter, up from 16 cents per share in 2000.The irregular route carrier had operating revenue of $53.66 million for the third quarter, a 13.9% increase over the previous year. For the year to date, P.A.M.’s operating revenue is $169.53 million for the year to date.
“I am extremely pleased with our quarterly report,” said Robert Weaver, president. ”An increase of 43.8% in our earnings per share from a 13.9% increase in revenue for the third quarter of 2001, as compared to the third quarter of 2000, is a tribute to the abilities and dedication of our hard working employees in this time of adversity.” Transport Topics
(Click here for the full press release.)
Terror Suspect Tried to Get Job Driving Truck
A man who had been arrested in connection with the U.S. government’s terrorism dragnet tried to get a job driving for Container Express Inc. of Summit, Ill., the Associated Press reported.The man had obtained a commercial driver license to haul hazardous materials, but had been turned down for the job in August because of several traffic tickets, the news service said.
He had previously been a cab driver in Boston and was arrested on Sept. 19 for immigration charges and a fugitive warrant in the state of Massachusetts.
Customs officials have connected the man to another suspected terrorist through financial transactions.
The suspect had suggested to the president of the company that he drive the truck of another employee of Container Express after being turned down for a job, the AP said. Transport Topics
Truck School Owner Denies FBI Probe Story
The owner of a Colorado driving school has criticized a TIME magazine article that reported his school was under investigation by the FBI for teaching several Arab men to drive commercial trucks over the past two years.Charlie Tweedy, owner of Careers World Wide, told the Rocky Mountain News that the media hadn’t done its homework before publishing reports that the FBI was investigating his school.
The TIME article claimed that as many as 35 men had taken classes at Careers World Wide, paid cash for their training, could not speak English and weren’t interested in job placement assistance after receiving their training.
Tweedy told the paper that FBI agents looked over the files of six former students who had Arab-sounding names, but found no leads.
A FBI spokesperson said there was no credibility in the accusations, according to the Rocky Mountain News. Transport Topics
(Click here for related coverage.)
CNF Reports Net Income Up in 3Q
CNF Inc. (CNF) on Wednesday reported net income of $28.6 million, or 59 cents per share in the third quarter of 2001. This is up from $11.8 million, 23 cents per share, over the same period last year.However, the company said its third-quarter figures were bolstered by a $39.0 million gain (80 cents per share) from discontinued operations following a $235 million partial settlement with the U.S. Postal Service over claims involving the former Priority Mail contract.
CNF’s truck division, Con-Way Transportation Services, reported its third-quarter operating income was $42.6 million, down 18% from the third quarter of 2000. The company’s total revenue for the quarter was $491.2 million, down 5% from 2000.
The company’s net loss for the first nine months of 2001 was $185.8 million. This figure includes the USPS settlement and a one-time charge of $207.7 for the restructuring of its air cargo division -– Emery Worldwide Airlines. Transport Topics
(Click here for the full press release.)
U.S. Postal Service Faces New Problems
As consumers become wary of the mail due to more cases of anthrax, the struggling U.S. Postal Service stands to lose even more revenue, the Wall Street Journal reported.
The anthrax scare may also hurt catalog merchants and direct-mail companies, the Journal said, because of their dependence on mail. Most consumers are likely to be very cautious before opening mail and packages for the next several months.
Another, more innocuous problem facing the USPS is the estimated 90,000 pieces of mail that arrive in Manhattan each day addressed to “One World Trade Center,” “The People Hurt,” “The Working Dogs,” and “Ground Zero, N.Y.”
Some of the mail that has arrived since the attacks is being held for three months, longer than its normal holding period for mail to be claimed, the Journal reported. This is being done to allow displaced companies to get resettled then worry about picking up mail for their employees –- some of whom may have died in the attacks. Transport Topics
FedEx Express to Lower Fuel Surcharge
FedEx Corp. (FDX) said Wednesday that its subsidiary FedEx Express will lower its fuel surcharge to 3% from 4% beginning Nov. 5. The Memphis, Tenn.-based company said in a press release that the surcharge will be subject to monthly adjustments using the average of the U.S. Gulf Coast spot price for kerosene-type jet fuel.
FedEx said this method more closely links the surcharge to market prices for jet fuel. Additional fuel surcharge information will be posted on the company's Web site. Transport Topics
(Click here for the full press release.)
Iowa Sends Names of Drivers to FBI
Kent Fleming, the Federal Motor Carrier Safety Administration's Iowa state director, said he has reported the names of some Iowa truck drivers to the FBI as part of a counterterrorism review of trucking companies, the Associated press reported.Fleming said the driving records of all 698 trucking companies that haul hazardous material in the state are still currently being checked. Records from eight Iowa truck-driving schools also are being studied.
The story also said that the Iowa Department of Transportation still routinely stop all trucks carrying hazardous cargo throughout the state. Transport Topics
Navistar Drops ‘Poison Pill’
Truck manufacturer Navistar International Corp. (NAV) said Tuesday it will remove a “poison pill” takeover defense plan that shareholders have opposed.
The scheme, called a shareholder rights plan, had been in place since April 1999 and had been intended to discourage a hostile takeover by making it prohibitively expensive.
Shareholders had voted a nonbinding resolution against the plan at Navistar’s annual meeting in February.
In redeeming the plan, it will repurchase the rights at a price of 1 cent per share. Transport Topics
(Click here for the press release.)
Werner Sees Slight Rise in 3Q Earnings
Trucking firm Werner Enterprises Inc. (WERN) said late Tuesday that its third-quarter net income rose to $12.5 million or 26 cents per share, compared with $12.3 million for the same period last year. Analysts were expecting the Omaha, Neb.-based company, ranked No. 18 in the 2000-2001 Transport Topics 100 list, to report profits of 28 cents per share, according to Reuters.
Chairman and Chief Executive Officer Clarence Werner called this one of the most challenging times in years for trucking because of the low value of used trucks, high insurance rates, and the soft global economy.
Still, Werner saw operating revenues rise 6% during the quarter to $322,6 million. While it saw a 1% decrease in average miles per truck for the third quarter, it was helped by several factors including lower diesel prices. Transport Topics
Click here for the full press release.)
Forward Air Reports Lower Earnings
Forward Air Corp. (FWRD), a trucking company that provides ground alternatives for air cargo, reported that its third-quarter earnings per share were 19 cents per share, down 9 cents from the same period in 2000, as last month’s terrorist attacks hampered business.
"While volumes were weak during the week of September 11, we have seen a steady improvement since that time," said Bruce Campbell, president and chief operating officer.
The Greenville, Tenn.-based company’s operating revenue for the quarter was $53.4 million, down $300,000 from 2000. Its operating income of $6.5 million was also down from 2000, when income was $9.8 million. Transport Topics
(Click here for the full press release.)
Dana to Cut Workforce by 15%
Dana Corp. (DCN) has announced plans to cut 11,250 jobs – about 15% of its workforce -- and sell its leasing business, as it seeks to deal with net income that fell 55% in the third quarter.
he Toledo, Ohio-based manufacturer of light-truck axles and vehicle parts also cut its dividend from 31 cents a share to 1 cent.
Net income for the third quarter was $13 million, compared with $29 million in the preceding year, according to Gary Corrigan, company spokesman. He also said sales declined 16%, from $2.87 billion to $2.4 billion. Transport Topics
(Click here for the press release.)
Ford Posts Loss of $692 Million
Ford Motor Co. (F) reported its first back-to-back quarterly losses since 1992, as the slow global economy and terrorist attacks took its toll on the world’s No. 2 automaker. Ford makes a number of pickups and light trucks that are used in a wide variety of commercial trucking applications, especially among utility fleets.
For the third quarter, the company posted a net loss of $692 million or 38 cents per share, compared with a net income of $994 million last year. Revenues fell 9% in the quarter, to $36.5 billion, as sales slowed throughout much of the world. The third-quarter loss in North America was $849 million.
The company, which said in August it planned to cut up to 5,000 jobs in North America, plans to make more restructuring announcements in December. Transport Topics
(Click here for the full press release.)
Firms Join to Acquire Truck Retailers
TS&B Holdings Inc. and Lucas Truck & Equipment Sales plan to acquire a consolidation of trucking retailers in the Portland, Ore., and Northern California regions.The two companies announced the signing of an acquisition letter of intent on Tuesday, which is expected to become definitive within the next three weeks.
"It has been almost eight years since the time has been right to integrate trucking and equipment sales," said Charles Giannetto, TS&B's counsel. "The locations in Oregon are especially well positioned." Transport Topics
(Click here for the press release.)
AAA Says Price of Gasoline Declining
AAA said Tuesday that traveling this fall will be cheaper than last year because the national average price of a gallon of gasoline has fallen to $1.346.
While over-the-road trucking uses diesel fuel, a significant portion of commercial trucking is conducted in gasoline-burning vehicles.
The average price nationwide for regular unleaded gasoline has declined 20.6 cents in the last month and 18.7 cents from this time last year.
A spokesman for the club said that the decline is due to softer demand for petroleum products and lower crude oil prices in the wake of the Sept. 11 terrorist attacks. Transport Topics
(Click here for the full press release.)
