News Briefs - April 15
The Latest Headlines:
- Shippers Making Plans in Case of Dock Strike
- W.Va. Task Force to Tackle Coal Truck Dispute
- Arctic Drilling Plan Seen Unlikely to Pass
- OPEC May Boost Output in ’02 on Rebound
- Allied Sells Stake in Brazilian Joint Venture
- Fed Unlikely to Raise Rates Soon, Journal Says
- Intermodal Lifts J.B. Hunt's Earnings
- Exide Files for Bankruptcy Protection
- Quality Distribution Forms Bulk Carrier
- Eaton Earnings Down; Says Truck Segment Has Bottomed
- W.Va. Task Force to Tackle Coal Truck Dispute
Shippers Making Plans in Case of Dock Strike
Companies across the country are making back-up plans to protect themselves in case there is a work stoppage by West Coast longshoremen, the Associated Press reported Sunday.A labor stoppage could hurt truckers that haul goods to and from the ports.
Nearly 8% of the U.S. gross domestic product travels through West Coast ports from San Diego to Seattle, the AP said, so companies are hoping that the International Longshoremen and Warehouse Union and the Pacific Maritime Association can settle their dispute without a strike or a lockout.
W.Va. Task Force to Tackle Coal Truck Dispute
A task force set up by West Virginia Gov. Bob Wise to find a solution to the overweight coal truck issue will meet on Friday for the first time, the Associated Press reported.While many residents in the state want to improve enforcement of current weight limits to protect state roads, the coal industry is seeking to increase limits to 120,000 pounds from 80,000 so haulers can operate at a profit.
The group will map out a series of regional hearings at the first meeting, as well as discuss procedures for receiving public input. Its goal is to craft a legislative proposal within 60 days, AP said. Transport Topics
Arctic Drilling Plan Seen Unlikely to Pass
The White House and Senate Republicans are still lobbying for votes, but it is unlikely they will be able to win passage for a plan to drill for oil in the Arctic National Wildlife Refuge in Alaska, the Wall Street Journal reported Monday.Drilling in the refuge has been a key proposal in President Bush’s energy plan. Supporters see it as a way to boost domestic oil production and decrease the United States’ dependence on foreign oil.
Democrats in the Senate have said they will block the measure because of the potential harm it could do the ecosystem in the refuge, the Journal said.
The GOP has tried to woo Democrats with a promise to add a bailout for steel workers to the energy bill. The effort seems to have not only failed to win much support, however, but alienated some conservative Republicans who see the program as an unnecessary government program, the Journal reported.
Supporters of the bill need 60 votes to override a threatened Democratic filibuster and observers say they are still short of that goal. Transport Topics
OPEC May Boost Output in ’02 on Rebound
The Organization of Petroleum Exporting Countries is considering increasing production if the world economy shows signs of recovery, Bloomberg reported Monday.Fuels used by trucks, like diesel and gasoline, are sensitive to changes in crude oil prices.
In January, the cartel trimmed production of crude oil, pushing prices up by 23% since the beginning of the year. An increase in oil production could bring prices down.
OPEC President Rilwanu Lukman said that the cartel could boost production limits for the first time since 2000 if a recovery pushes oil demand higher, Bloomberg said.
Ali Rodriguez, secretary-general of OPEC, said that the organization may have to target the fourth quarter for a production increase because oil consumption is set to grow this quarter after three straight quarters of decline. Transport Topics
Allied Sells Stake in Brazilian Joint Venture
In a move to focus more on North America, Allied Holdings Inc. said Monday it has completed the sale of its interest in a Brazilian joint venture for $3 million.The Decatur, Ga.-based company, which provides logistics, distribution and transportation services for the automotive industry, said it will use the proceeds to reduce outstanding debt.
The venture was formed in 1998, the company said in a release. Allied's Axis Group subsidiary sold its stake to Coimex Empreendimentos E Participacoes Ltda. and Itaguacu Comercio E Participacoes Ltda.
Allied is ranked No. 20 in the 2000-2001 Transport Topics 100 list of the 100 largest trucking companies in the United States. Transport Topics
(Click here for the full press release.)
Fed Unlikely to Raise Rates Soon, Journal Says
The Federal Reserve will likely keep interest rates unchanged at its meeting next month, and barring an unexpected economic growth spurt, will not make a move until at least this summer, the Wall Street Journal reported Monday.The trucking industry is sensitive to economic growth, which spurs demand for trucking services.
The Fed cut interest rates 11 times last year in an attempt to spur economic activity.
he article said the Fed views inflation as a threat to growth, but is not ready to raise rates from 40-year lows until it is more confident in the recovery. Transport Topics
Intermodal Lifts J.B. Hunt's Earnings
J. B. Hunt Transport Services' intermodal transport division led the way as the Lowell, Ark.-based company Monday reported first-quarter earnings more than double those of the previous year.During a quarter that saw the company net $4.9 million or 13 cents a share, compared to $1.6 million or 5 cents a share in the first quarter of 2001, the intermodal division's revenues rose 10% while those of the trucking segment dropped 8%.
For the 2002 first quarter, total operating revenue was $510 million, up $15 million from the previous year. The company said that its operating revenue was affected by a reduction in fuel surcharge revenues of $18.4 million because of lower fuel prices. Excluding the fuel surcharge figures, J.B. Hunt said its operating revenue rose 7%.
J.B Hunt is ranked No. 13 on the 2000-2001 Transport Topics list of the 100 largest trucking companies in the United States. Transport Topics
(Click here for the full press release.)
Exide Files for Bankruptcy Protection
Exide Technologies Inc., the world's largest maker of vehicle batteries, said Monday that it has filed for Chapter 11 bankruptcy protection in Delaware.The Princeton, N.J.-based company said it has received $415 million in new financing to continue operating, and will be able to pay employee salaries once it receives court approval.
"Over the past several months, we have made a number of difficult yet necessary operational changes that have exhibited positive results. We are now taking the next step to resolve our financial challenges and focus on addressing our balance sheet issues," Craig Muhlhauser, president and chief executive officer, said in a release.
Exide's operations outside of the U.S. are not included in the filing and will not be adversely affected. Transport Topics
(>Click here for the full press release.)
Quality Distribution Forms Bulk Carrier
Quality Distribution Inc., a Tampa-Fla.-based transportation company, has formed a new affiliate company called Quality Tank Container Transport, it was announced Friday.Richard Dorsey, formerly senior vice president of MOL America, has been named president of the new company, which will engage in the movement of domestic and international bulk transport.
Quality already provides trucking services with two other subsidiaries, Quality Carriers Inc. and Levy Transport.
Quality Distribution ranks no. 28 in the 2000-2001 Transport Topics list of the 100 largest trucking companies. Transport Topics
(Click here for the press release.)
Eaton Earnings Down; Says Truck Segment Has Bottomed
Eaton Corp., the largest U.S. maker of truck transmissions, reported net income for the first quarter of $33 million, or 47 cents per share on Monday, compared with $50 million, or 72 cents per share, in the year-earlier period. These earnings include pre-tax charges of $49 million related to the restructuring of its operations.First quarter truck-segment sales were $255 million, 9% below a year ago, but the company said it believes the truck business has bottomed and orders will increase in the months ahead.
The Cleveland-based company said total sales in the quarter were $1.72 billion, 13% below last year.
Eaton said it is seeing some signs of a recovery, but it doesn't expect a significant increase until the end of the third quarter. For the full fiscal year, it expects to earn $4.25 to $4.50 per share. Transport Topics
(Click here for the full press release.)
