News Briefs - April 16
The Latest Headlines:
- UPS, Teamsters Restart Talks
- Navistar Creates Office of Chairman, Promotes Two
- Strike Paralyzes Most of Italy
- P.A.M. Sees Increase in Profits, Revenues
- Earnings Meet Forecasts, Caterpillar Says
- U.S. Xpress Posts Smaller 1Q Loss
- Wabash Refinances Credit Line
- GM 1Q Earnings Down Slightly
- Crude Oil Price Rises Ahead of API Report
- Sales Rise, but Tower Reports 1Q Net Loss
- Knight Transportation President Sells $6 Million of Stock
- O'Neill Optimistic on U.S. Economy
- Roadway Subsidiary Offers Return Service
- Navistar Creates Office of Chairman, Promotes Two
UPS, Teamsters Restart Talks
United Parcel Service and the International Brotherhood of Teamsters restarted contract talks on Monday in Dallas, the Journal of Commerce reported.The talks are expected to last all week, with the main discussions focusing on non-economic issues like safety and overtime.
The present contract is set to expire at the end of July, and both sides have said they would like to avoid a work stoppage. In 1997, the Teamsters struck for 15 days before reaching an agreement with the shipping giant.
Navistar Creates Office of Chairman, Promotes Two
Navistar International Corp. said Tuesday that it has elected Daniel C. Ustian to the posts of president and chief operating officer. The truck maker also said that Robert Lannert would assume the role of vice chairman and continue as the chief financial officer for the company.The two men will become members of a newly created Office of the Chairman to work on strategy with Chairman and Chief Executive Officer John Horne.
"The formation of the Office of the Chairman will allow us to meet the competitive challenges of today while strengthening our focus on new growth opportunities, including our industry leadership in Green Diesel Technology and our joint venture with Ford Motor Company," Horne said.
The Warrenville, Ill.-based company is the world’s fourth largest manufacturer of heavy trucks. Transport Topics
(Click here for the full press release.)
Strike Paralyzes Most of Italy
Italian trades unions staged their first full-day general strike in 20 years on Tuesday, bringing much of the country -- including the transportation system -- to a virtual standstill, news services reported.The strike, if it lasts long enough, could affect the demand for trucks in the United States that move international cargo.
The unions are protesting government plans to reform the labor market, Reuters said. Millions of demonstrators have converged on the squares of Italy's major cities to hear union leaders speak.
Analysts told Reuters they expect the situation to return to normal quickly throughout the country. Transport Topics
P.A.M. Sees Increase in Profits, Revenues
Truckload carrier P.A.M. Transportation Services Inc. reported a first-quarter net income on Tuesday of $3.6 million, or 40 cents per share, compared with 2.6 million, or 31 cents per share, in the year-earlier period.Revenues for the quarter increased 8.4% to $63,313,480, the company said in a release.
P.A.M. President Robert Weaver said that the company's stock offering during the quarter had a positive impact on the balance sheet and allowed P.A.M. to repay some debt.
Based in Tonitown, Ark., P.A.M. is ranked No. 68 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.)
Earnings Meet Forecasts, Caterpillar Says
Equipment and engine maker Caterpillar Inc. said that slow sales hindered its company profits, but that earnings were in line with its expectations.The company, which is a major manufacturer of diesel engines for heavy trucks, said Tuesday it had a first-quarter profit of $80 million, or 23 cents a share. In the first quarter of 2001, the company made $161.2 million, or 47 cents per share.
That profit came on sales and revenues of $4.41 billion, down $40 million from the $4.81 billion the company posted in the first quarter of 2001, Caterpillar said in a release. Overseas business in Asia, Latin America and the Pacific helped offset some of the slowing experienced in North America.
The company’s engine division saw its operating profit drop $77 million from $63 million in the first quarter of 2001 to a loss of $14 million in 2002. Overall revenues from engine sales dipped from $1.5 billion in 2001 to $1.37 billion in 2002.
And the company said that North American bus and truck engine sales rebounded substantially from low levels, helping offset declines in mining, general construction and electric power generation.
We remain confident that sales and revenues will be about the same as last year, aided by improving global business conditions in the second half of the year," said Glen Barton, chairman and chief executive officer. "We expect profit to be up slightly for the full year, reflecting continued efforts to aggressively improve our cost structure.” Transport Topics
(Click here for the full press release.)
U.S. Xpress Posts Smaller 1Q Loss
U.S. Xpress Enterprises Inc. said Tuesday that it had a net loss of $300,000, or 2 cents per share, in the first quarter of 2002. This is an improvement over the $1.2 million, or 9 cents a share, loss the company posted in the same quarter last year.The Chattanooga, Tenn.-based truckload carrier reported its results for the quarter ended March 31, saying that its operating revenues increased 5.8% to $197.2 from the $186.5 the company posted in the comparable time frame in 2001.
The company said in a release that it took a one-time, non-cash charge of $1 million, or 4 cents per share, connected to interest rate swapping. Had the charge been factored into the company's quarterly report, U.S. Xpress would have lost $895,000, or 6 cents per share.
U.S. Xpress is ranked No. 22 on the 2000-2001 Transport Topics list of the 100 largest trucking companies in the U.S. Transport Topics
(Click here for the full press release.)
Wabash Refinances Credit Line
Trailer manufacturer Wabash National Corp. said late Monday that it has worked out a deal to refinance and restructure its revolving line of credit and its senior notes through March 30, 2004.The Lafayette, Ind.-based company has a credit line of $125 million and $192 million in senior notes. Those notes coming to maturity after March 30, 2004 will maintain their original maturity dates.
The company also refinanced its lease facility, worth $63 million, with a new maturity date of January 31, 2005, and closed on a two-year $110 million receivables facility with GE Capital.
"We are extremely pleased to announce the closing on our new credit facilities for the company," said Mark Holden, senior vice president and chief financial officer. "We believe these facilities will help to provide the company with ample capital resources over the next two years to finance the planned operations of the business." Transport Topics
(Click here for the full press release.)
GM 1Q Earnings Down Slightly
General Motors Corp., the world’s largest automaker, said Tuesday it earned $228 million, or 57 cents per share, in the first quarter. That is down from the $237 million earned in the first quarter of 2001, but was above analysts’ expectations, Reuters said.GM's results included a $407 million restructuring charge related to changes in its European operations. Excluding special items, GM earned $791 million, or $1.39 a share.
Revenue was $46.3 billion for the quarter compared with $42.6 billion a year ago. The automaker's North American operations earned $625 million during the quarter.
GM also raised its full-year earnings per share prediction for the full fiscal year to $5 from $3.50 before charges. Transport Topics
Crude Oil Price Rises Ahead of API Report
Crude oil prices rose on Tuesday on expectations that U.S. oil stockpiles will be reported falling, Reuters reported.Crude oil is refined into fuels for the trucking industry, making its supply very important.
Brent crude oil for June settlement rose as much as 50 cents to $24.56 a barrel in London. In the United States, crude for May delivery rose as much as 33 cents to $24.90 a barrel.
Analysts said American Petroleum Institute's report this week will show crude inventories falling by two million barrels, gasoline by one million barrels and distillates by 600,000 barrels, Reuters said.
In other news, White House economist Glenn Hubbard said Tuesday there is no inordinate risk from oil prices.
Ongoing Middle East tensions and the return of Venezuela's President Hugo Chavez also have played a role in the rise in prices, Bloomberg noted. Transport Topics
Sales Rise, but Tower Reports 1Q Net Loss
Vehicle parts maker Tower Automotive Inc. reported a net loss for the first quarter of $35 million, or 72 cents per share, due to costs related to job cuts and a decrease in production from Ford Motor Co., its biggest customer.That compares with a net income of $13 million, or 28 cents per share, in the year-earlier period. Excluding one-time special items, Tower's profit was $12 million, or 25 cents a share. The company was expected to have a profit of 23 cents, Bloomberg said.
The Grand Rapids, Mich.-based company said that sales during the quarter rose 6.3% to $668.1 million from $628.4 million. Transport Topics
(Click here for the full press release.)
Knight Transportation President Sells $6 Million of Stock
Gary Knight, president of trucking firm Knight Transportation Inc., sold more than $6 million worth of company stock last month, Bloomberg reported late Monday.Knight sold 300,000 shares of common stock on March 4 at $20.49, after selling 358,250 company shares on Nov. 7 at $24.50 each, Bloomberg said. Company shares have increased 82% during the past year.
Based in Phoenix, Knight is ranked No. 67 on the 2000-2001 Transport Topics list of the 100 largest trucking companies.
The article said that insiders at other trucking companies, including J.B. Hunt Transportation Services Inc. and Heartland Express Inc. have also sold shares recently. Transport Topics
O'Neill Optimistic on U.S. Economy
Predicting increases in business spending and gross domestic product, Treasury Secretary Paul O'Neill said Monday that the country is poised for strong growth this year, Reuters reported.The trucking industry would see an increase in demand if economic activity increased.
Speaking to the Economic Club of Grand Rapids, Mich., O'Neill said President Bush's tax package, the Fed's interest rate cuts and the flexibility of the economy all have played roles in shortening the recession.
He said business spending will revive in the months ahead and gross domestic product will approach 3%-3.5% annual rate by the end of the year. Transport Topics
Roadway Subsidiary Offers Return Service
Roadway Reverse Logistics on Monday announced a return service for manufacturers, retailers and distributors that integrates the management of product returns for remanufacturing, redistribution, cleaning or disposal.The company, a subsidiary of Roadway Express, coordinates the entire return process including pickup, processing, consolidation, shipping and invoicing.
Warehouses are located in Grove City, Ohio, Salt Lake City and Carrollton, Texas.
Roadway Express is ranked No. 7 on the 2000-2001 Transport Topics list of the 100 largest trucking companies. Transport Topics
(Click here for the full press release.)
