News Briefs - April 22
The Latest Headlines:
- CNF's Profits Rise as Con-Way Performs Well
- Price of Crude Oil Drops Ahead of OPEC Meeting
- Overseas Shipments Lift UPS’ Results
- Yellow's 1Q Earnings Improve
- Paccar Income Up; Says Truck Market Still 'Challenging'
- Tolls to Change for Part of Pennsylvania Turnpike
- Price of Crude Oil Drops Ahead of OPEC Meeting
CNF's Profits Rise as Con-Way Performs Well
CNF Inc., the parent of less-than-truckload carrier Con-Way Transportation Services, reported a first-quarter net income of $15.9 million or 30 cents per share, compared with $18.3 million or 35 cents per share in the year-earlier period.Total revenue for the first quarter was $1.21 billion, up from $1.07 billion last year, the Palo Alto, Calif.-based company said in a release.
Con-Way's operating income was up 10% to $37.2 million, as revenue increased 14% to $519.1 million. Regional carrier tonnage per day was up 1% from 2002.
CNF is ranked No. 4 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
(Click here for the full press release.)
Price of Crude Oil Drops Ahead of OPEC Meeting
The price of crude oil was down in New York on Tuesday, two days before a scheduled OPEC meeting where the cartel is expected to cut production levels, Bloomberg News reported.Lower crude oil production levels could lead to lower diesel fuel and gasoline prices.
On the New York Mercantile Exchange, crude oil for June delivery was down 38 cents to $28.45 a barrel, Bloomberg said.
Rilwanu Lukman, Nigeria's presidential advistor on energy, said Tuesday the cartel should cut production by 1.5 million barrels a day, Bloomberg said.
Several other members have also expressed their wishes to cut production, although the largest oil producer, Saudi Arabia, has not said if it would support a cut. Transport Topics
Overseas Shipments Lift UPS' Results
A 3.3% increase in overseas shipments helped United Parcel Service post a net income for the first quarter of $611 million or 54 cents a share, up from $491 million or 43 cents in the year-earlier period.The Atlanta-based company said in a release that sales rose 5.8% to $8.02 billion, but total U.S. shipments declined 1.2%.
UPS said the U.S. package segment experienced volume declines during January and February, exacerbated by severe winter weather and a sluggish economy. However, in March and April, volume improved, and the company now is experiencing growth in its U.S. package business.
Meanwhile, operating profit for the international package segment more than quadrupled to $134 million.
The company said net income for the second quarter would be in the range of 58-60 cents per share, and domestic package volume would post between a 1% and 2% increase over last year's results.
UPS is ranked No. 1 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
(Click here for the full press release.)
Yellow’s 1Q Earnings Improve
Transportation holding company Yellow Corp. said late Monday its first-quarter results improved significantly compared with last year due in part to the failure of a main competitor.First-quarter net income was $5.6 million or 19 per share, up from $2.1 million or 8 cents per share before goodwill charges a year ago. Total operating revenue was $681 million, a 17.7% increase over the first quarter of 2002.
Less-than-truckload unit Yellow Transportation saw its revenue per day increase a total of 17%, primarily reflecting a 9.2% increase in tonnage per day, the company said in a release.
The Overland Park, Kan.-based company said the LTL unit benefited from the September 2002 closure of rival Consolidated Freightways.
The company said the first quarter included weather-related expenses of approximately $5 million.
It also said it expects second-quarter income to be 50-60 cents per share, and full-year earnings to be $2.25-$2.35.
Yellow is ranked No. 6 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
(Click here for the full press release.)
Paccar Income Up; Says Truck Market Still ‘Challenging’
Truck manufacturer Paccar Inc. said Tuesday net income for the first quarter was $110.8 million or 95 cents per share, an increase of 135% from $47.2 million or 41 cents per share in the year-ago period.The company said net sales and financial services revenues were $1.9 billion, an increase of 28% from the first quarter of last year.
Still, Paccar said in its release that, “even though freight ton miles have improved slightly, the North American industry truck market continues to be challenging.”
It said total heavy-duty truck orders in North America were down 32% in the first quarter, but it expected truck sales for the year to be comparable to last year.
The Bellevue, Wash.-based company designs and manufactures trucks under the Kenworth, Peterbilt, DAF and Foden nameplates. Transport Topics
(Click here for the full press release.)
Tolls to Change for Part of Pennsylvania Turnpike
Toll rates, and the location of toll booths, will change on the westernmost 31 miles of the Pennsylvania Turnpike starting June 1, the Associated Press reported.The turnpike runs from the Delaware River to the Ohio state line, passing through major cities including Philadelphia and Pittsburgh.
AP said the changes are being made because of the Cranberry Connector, a highway that by next year is scheduled to connect the turnpike and Interstate 79.
Noncommercial vehicles going to or from Ohio will pay a flat $1 toll as they enter or exit the stretch of road at the state border, while 18-wheelers weighing 80,000 pounds will pay $5.75, according to AP.
Currently, trucks pay $1.05 to $5.75 to travel among the exits nearest the Ohio border depending on their weight and how far they travel, AP said.
However, vehicles that both enter and exit the turnpike between the border and either the Beaver Valley or Cranberry exits can ride for free. Transport Topics
