Executive Briefing - Sept. 5
- U.S. Economy Ready to Pick Up, Treasury Chief Says
- U.S. Job Cut Announcements Down in August
- Strike at Mexican VW Plant Ends
- Daimler, China Truck Venture Reported
- J.B. Hunt Gives Wabash $70 Million Order
- San Diego Judge Rules Against Red-Light Cameras
- Uti Worldwide Net Income Rises
- WTO Sets Date to Approve China's Application
- More Road Deaths Laid to Distraction, Report Says
- Schneider Scraps Logistics Spin-Off, IPO
- U.S. Job Cut Announcements Down in August
U.S. Economy Ready to Pick Up, Treasury Chief Says
The U.S. economy is set to pick up in the coming months, Secretary of the Treasury Paul O’Neill told reporters Wednesday.In a press conference before his first trip to Asia, O’Neill said that the U.S. cannot be the lone force behind a global economic recovery and other countries, particularly Japan, must taking actions to fix their woes, Reuters said.
The current economic slowdown has impacted many firms in the U.S., especially trucking companies, which rely on a strong economy to increase demand for shipments.
O’Neill projected 2002 growth in the U.S. economy at a rate of 2.5% to 3.5%. This estimate is in line with private analysts’ projections of 2.5% to 3% growth, but could be off of the 3.2% estimate from the Office of Management and Budget that the White House had been using.
U.S. Job Cut Announcements Down in August
The number of announced job cuts was down in August, according to Challenger, Gray & Christmas, marking the first decline in three months.For the trucking industry, job cuts – especially in the manufacturing sector – are a bad sign signaling a lower level of trucking activity.
Businesses said they would cut 140,019 jobs for the month, compared to 205,975 in July – which was a one-month record.
However, the total was still more than double the figure of 57,221 for the same month last year.
More than half of the cuts were announced by manufacturers of electronics, computers and telecommunications equipment, the report said.
So far this year there have been a total of 1.12 million announced job cuts, the Challenger report stated. Transport Topics
Strike at Mexican VW Plant Ends
An 18-day strike at Mexico's Volkswagen plant ended on Wednesday after workers accepted a 10.2% salary increase, news services reported.Truckers that deliver Volkswagens to dealers were among the victims of the strike, even though they were not party to the negotiations.
Production at the plant in central Mexico -- which builds the New Beetle model for export and is the only plant still producing the old Bug -- was set to resume late Wednesday.
In the coming days, company officials said they would investigate the possibility of making up lost production resulting from the work stoppage. Transport Topics
Daimler, China Truck Venture Reported
After more than a year of negotiations, DaimlerChrysler AG (DCX) and China’s First Auto Group Works have agreed on some terms of their heavy truck venture in China, the Financial Daily reported.
Each side will own 50% of the new venture, which will have annual production capacity of 50,000 heavy trucks. A truck engine plant will also be built in the city of Dalian, according to the report. Financial terms were not released.
Daimler’s existing plant in China’s Inner Mongolia province is expected to become part of the new venture. Transport Topics
J.B. Hunt Gives Wabash $70 Million Order
Wabash National Corp. (WNC) announced Wednesday that it has received an order for 6,000 53-foot DuraPlate domestic containers and an unspecified number of container chassis from J.B. Hunt Transport Services (JBHT). The deal is worth just over $70 million.
The containers are stackable, Wabash said, and closely resemble conventional trailers. They will however, be strong enough to be the base for a “double-stack” configuration on a railcar.
Kirk Thompson, president and chief executive officer of J.B. Hunt, said the transaction gives Hunt “the opportunity to convert our intermodal container fleet to exclusively 53-foot equipment.” Transport Topics
(Click here for the full press release.)
San Diego Judge Rules Against Red-Light Cameras
San Diego Superior Court Judge Ronald Styn threw out almost 300 traffic tickets issued to motorists by the city's controversial red-light camera system, news services reported.Styn said that a contingency fee paid to the private operator of the city's system, Lockheed Martin IMS, made the evidence unreliable. Although the decision is not binding on other cases, it placed the red-light program and its millions of dollars in revenue in jeopardy.
Since 1998, cameras have been installed at 19 intersections in the area and have issued citations carrying a $271 fine for each conviction. Lockheed Martin receives $70 of every fine paid. The ruling has no direct legal implications for similar red-light traffic systems in roughly 50 other cities in the nation.
Last week, a suit was filed in federal court asking the city to reimburse 100,000 motorists already fined. Transport Topics
Uti Worldwide Net Income Rises
Freight forwarder UTi Worldwide Inc. (UTIW) reported net income of $5.4 million for the fiscal 2002 second quarter ended July 31, compared with $4.8 million during the same quarter last year.Earnings per share were 21 cents compared with 24 cents last year, which reflects the significantly increased number of shares outstanding due to an initial public offering.
The Rancho Dominguez, Calif.-based company said although its rate of growth was restrained due to the global economic slowdown, it was encouraged by the company’s performance in Asia.
Net revenues rose 5% to $79 million for the quarter, and 8.5% over the first six months of the fiscal year. Transport Topics
(Click here for the full press release.)
WTO Sets Date to Approve China's Application
The World Trade Organization has set a Sept. 13 date to approve China's entry into the global trade group, the International Herald Tribune reported.Entry into the organization would make it easier for U.S. companies to trade with the burgeoning economic power, possibly increasing the demand for trucking services to handle the shipping of goods to and from port to market.
The move by the Geneva-based group will end a 15-year struggle for entry into the world's largest trade group by the world's most populous country.
On that same day, the WTO is also expected to offer full-membership to Taiwan. Transport Topics
More Road Deaths Laid to Distraction, Report Says
The number of fatal vehicle accidents in Illinois caused by driver distraction has risen dramatically in recent years, the Chicago Sun-Times reported.Data from the National Highway Safety Administration showed that the number of traffic accidents involving distracted drivers increased from 36 in 1994 to 70 in 1999. Although some may have involved cell phones, everything from laptop computers to shaving to reading the newspaper has caused some accidents.
Nationally, an estimated 10% of all fatal accidents were partially caused by drivers who weren't paying attention. Transport Topics
Schneider Scraps Logistics Spin-Off, IPO
Schneider National Inc. has decided to drop its plan to spin off subsidiary Schneider Logistics and make it the subject of an initial public offering.
In a press release dated Tuesday, the company said the decision was based on the current state of the equity capital markets, coupled with the fact that Schneider National has been able to allocate substantial resources to Schneider Logistics and does not see a current need for outside equity capital.
Schneider Logistics will continue to operate as a wholly owned subsidiary of Schneider National. It will function as a separate non-asset based company, providing a suite of services in the logistics marketplace.
Chris Lofgren, chief executive officer of Schneider Logistics, said the Green Bay, Wis.-based company will continue to take steps to position the unit as a key player in global supply chain integration. Transport Topics
(Click here for the full press release.)
