News Briefs - Dec. 16
The Latest Headlines:
- FedEx Earns $354 Million in Fiscal 2Q
- Kansas City Southern Agrees to Buy Mexican Railroad
- Jobless Claims Post Largest Drop in Three Years
- Teamsters Approve New Contract With UPS Canada
- U.S. Xpress Completes Stock Offering
- Kansas City Southern Agrees to Buy Mexican Railroad
FedEx Earns $354 Million in Fiscal 2Q
FedEx Corp. said Thursday its net income for the fiscal second quarter ended Nov. 30 was $354 million or $1.15 per share, compared with $91 million or 30 cents a year earlier.Total revenue for the quarter was $7.33 billion, an increase of 24% over the second quarter a year earlier, the company said in a statement.
It also said total average daily package volume at FedEx Express and FedEx Ground combined grew more than 8%. Average daily less-than-truckload shipment volume increased 12% at FedEx Freight, the company said.
FedEx, ranked No. 2 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies, said its third-quarter earnings would be 90 cents to $1.00 a share. It also increased its earnings guidance for the fiscal year to $4.60 to $4.70, from previous guidance of $4.40 to $4.60. Transport Topics
Kansas City Southern Agrees to Buy Mexican Railroad
Mexican transportation company Grupo TMM S.A. said Wednesday it had reached an amended agreement with freight railroad Kansas City Southern to sell 51% of its railway unit.The companies said in a statement that Kansas City Southern agreed to pay $660 million in cash and stock for the 51% voting interest in Grupo Transportacion Ferroviaria Mexicana SA, or TFM.
The agreement revives KCS's plan to fold the Mexican railway into its U.S. rail holdings, which include Texas Mexican Railway Co.
Michael Haverty, Kansas City Southern chairman and chief executive officer, said he believed the deal would “enhance rail competition and give shippers in the Nafta trade corridor a strong transportation alternative in this important and growing trade corridor."
TMM and Kansas City Southern had reached a similar agreement in April 2003 worth $412 million, but TMM controlling shareholders rejected the deal. However, this new was expected to be approved, the Associated Press reported. Transport Topics
Jobless Claims Post Largest Drop in Three Years
The number of Americans filing initial claims for jobless benefits declined by 43,000 to 317,000 in the week ended Dec. 11, the Labor Department said Thursday.A Labor Department spokesman told Reuters it was the largest weekly decrease since a fall of 77,000 in December 2001. Claims are currently at their lowest level since July.
Labor also said the four-week moving average of claims, which smoothes weekly fluctuations, fell to 337,750 from a revised 342,250. Transport Topics
Teamsters Approve New Contract With UPS Canada
UPS Inc. said the Teamsters union in Canada had approved a new six-year contract with the company, Bloomberg reported.Last month, the Teamsters union initiated a work stoppage involving about 3,800 employees at UPS Canada. It lasted about 24 hours and temporarily halted all shipments in Canada except international air cargo before an agreement was reached.
UPS is ranked No. 1 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
U.S. Xpress Completes Stock Offering
Truckload carrier U.S. Xpress Enterprises Inc. said late Wednesday it had completed the public offering of 4 million shares of its Class A common stock at $25.25 per share.The offer generated net proceeds of $47.7 million, the company said in a statement. U.S. Xpress said it sold 2 million shares, while President Patrick Quinn and Chief Executive Officer Max Fuller sold 900,000 shares each.
U.S. Xpress is ranked No. 21 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
