News Briefs - Aug. 15
The Latest Headlines:
- Cummins Says Medium-Duty Engine Certified By EPA
- CD&L Earns 6 Cents Per Share in 2Q
- U.S. Xpress Revises First-Half Results
- O'Neill Says Economy Rebounding
- CF Files Extension for Reporting 2Q Earnings
- Caterpillar Laying Off 300 Workers
- Fox Cancels U.S. Trip After Execution
- UAL May File for Bankruptcy
- CD&L Earns 6 Cents Per Share in 2Q
Cummins Says Medium-Duty Engine Certified By EPA
Cummins Inc. said Thursday it has received certification from the Environmental Protection Agency for its medium-duty ISB engine.The Columbus, Ind.-based company said the 5.9-liter engine is used in trucks, buses, RV's, fire trucks and other applications.
On April 2, Cummins said its heavy-duty ISX engine was certified to the new EPA emissions standard. Cummins said it remains on schedule to have a full product line available for customers by the Oct. 1 deadline. Transport Topics
CD&L Earns 6 Cents Per Share in 2Q
CD&L Inc., a provider of same-day transportation services, on Thursday reported a net income for the second quarter of $440,000 or 6 cents per share, compared with a net loss of $2.1 million or 27 cents per share in the year-earlier period.The South Hackensack, N.J.-based company said last year's loss was due to the sale of some of the company's operations.
Revenues for the quarter were down to $38.9 million from $39.8 million. Operating income was $1.49 million, an increase of $373,000. Transport Topics
(Click here for the full press release.)
U.S. Xpress Revises First-Half Results
Transportation and logistics company U.S. Xpress Enterprises said Wednesday that an accounting revision will increase its first-quarter 2002 earnings by 4 cents a share while decreasing second-quarter earnings by 2 cents a share.Year-to-date earnings, the company said, would be increased by 2 cents a share.
On May 17, the company hired new, independent public accountants, who advised that a non-cash charge related to interest rate swap agreements should not have been recorded in the first quarter of 2002.
The company concurs with the conclusion, the release said.
U.S. Xpress Enterprises, based in Chattanooga, Tenn., is ranked No. 25 on the Transport Topics list of 100 biggest trucking companies in the U.S. and Canada. Transport Topics
(Click here for the press release.)
O'Neill Says Economy Rebounding
U.S. Treasury Secretary Paul O'Neill said Wednesday that the U.S. economy is rebounding and that the policies of the Federal Reserve will only help it on its way, Bloomberg reported.An economic recovery is often accompanied by an increase in production, along with increased spending by consumers and corporations. Increased spending drives companies to order more goods, thus pushing demand for trucking services forward.
Speaking at a dinner for the Asian Pacific Economic Cooperation group in Seattle, O'Neill said he expects 2002 will end with the U.S. experiencing growth of between 3% and 3.5%, Bloomberg reported.
In the second quarter, economic growth, as measured by the gross domestic product, was 1.1% -- a slowing from a 5% annual rate in the first quarter as a rash of corporate accounting scandals and a shaky stock market helped to stall the economy. Transport Topics
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CF Files Extension for Reporting 2Q Earnings
Less-than-truckload carrier Consolidated Freightways Corp. filed for an extension Wednesday in reporting its second-quarter results and officers' certification of results.The Vancouver, Wash.-based company has filed SEC Form 12b-25 to allow for more time to complete preparation and review of the company's earnings report by KPMG and CF's chief executive officer and chief financial officer.
Consolidated Freightways is ranked No. 12 on the 2002 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
(Click here for the full press release.)
Caterpillar Laying Off 300 Workers
Caterpillar Inc. said it is laying off 300 workers from plants in Lafayette, Ind., and Griffin, Ga., the Journal Star of Peoria, Ill. reported.However, the action, effective Aug. 19, was said to be not related to the company's truck engine business. Rather, Caterpillar attributed the layoffs to low demand for its power generators and its largest engines.
The company also said it has been working around-the-clock to meet demands of truck manufacturers. Transport Topics
Fox Cancels U.S. Trip After Execution
In a protest after the execution of a Mexican citizen in Texas, Mexico's president, Vicente Fox, canceled a scheduled trip to the United States to meet with President Bush, Bloomberg said.The state of Texas executed Javier Suarez Medina Wednesday afternoon for killing an undercover narcotics officer 14 years ago, despite pleas from the Mexican government to commute his sentence to life imprisonment without parole.
Fox had been scheduled to visit with Bush Aug. 26-28 in Texas, but canceled as "a show of unequivocal repudiation of the execution," a Mexican spokesman told Bloomberg.
There are currently 56 Mexicans on death row in the U.S. Mexico does not have a death penalty, Bloomberg said. Transport Topics
UAL May File for Bankruptcy
UAL Corp., the parent of United Airlines, said Wednesday it may file for bankruptcy if it can't lower costs.The company said a restructuring would likely include schedule reductions, employee furloughs, fleet retirements and dramatic cuts in capital spending.
Since passenger planes also carry cargo, the airline's actions could affect trucks that transfer this cargo to and from airports.
On Tuesday, rival American Airlines said it would cut 7,000 jobs and reduce its capacity by 9% in an effort to become more competitive. Transport Topics
(Click here for the full press release.)
