News Briefs - Dec. 19
- Volvo Sees Truck Deliveries Fall 16% to Date
- Goodyear Cuts Production as Shipments Fall
- FedEx's Earnings Rise
- Chinese Airline Offers New Trucking Infrastructure
- Food Shippers See Sweeter Sales, Despite Scares
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Steel Makers Agree to Cut Production- Boyd Bros. Takes 4Q Charge
- Ford Settles Anti-Discrimination Suits
- Goodyear Cuts Production as Shipments Fall
Volvo Sees Truck Deliveries Fall 16% to Date
Volvo Global Trucks said Wednesday that its deliveries have fallen 16% from January to November 2001 over the same period a year ago. The slide in deliveries amounts to 141,923 units for the 11-month period, down from 169,716.Orders were down 12% overall, led by a 37% drop in North America. The company, which is made up by Mack Trucks Inc., Renault V.I. and Volvo Trucks, saw a 3% decline in Europe over the same period last year.
"As the year is coming to a close, we can see that the North American market is still not improving. However, Europe remains strong, with the southern European markets on a very high level,” said Tryggve Sthen, president and chief executive officer of Volvo Global Trucks.
(Click here for the full press release.)
Goodyear Cuts Production as Shipments Fall
Goodyear Tire & Rubber Co. said Wednesday that it would cut production this month to reduce inventory after reporting that North American shipments in November were “substantially” lower than last year’s levels for the second straight month.Although Goodyear did not release its exact figures, it did say that its North American shipments of consumer and commercial tires declined more than the 6% industrywide figure.
For the quarter-to-date, the Akron, Ohio-based company said its total North American shipments are in line with industry's averages, which are down 8% for consumer tires and down 3% percent for commercial tires. Transport Topics
(Click here for the full press release.)
FedEx's Earnings Rise
FedEx Corp. (FDX) on Wednesday reported 2002 fiscal second-quarter earnings of $245 million or 81 cents per share, compared with 67 cents per share for the same period last year.
During the quarter, which ended Nov. 30, FedEx said it received $116 million, or 24 cents per share, in compensation from the Air Transportation Safety and System Stabilization Act.
Lower net fuel expenses, improved productivity at FedEx Ground and more business than expected from its deal with the U.S. Postal Service were among the reasons why the Memphis-based company saw its earnings improve. Total revenue for the quarter was $5.14 billion, up 5% from $4.90 billion in the year-earlier period.
Looking ahead, the company said that its fiscal third quarter will be challenging because the economy will likely remain slow and FedEx is expecting lower volumes, higher maintenance costs and reduced fuel surcharge revenue. In addition, the government assistance will end, the company said.
FedEx is ranked No. 2 in the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
Chinese Airline Offers New Trucking Infrastructure
China Southern Airlines said Wednesday that it has developed a new trucking infrastructure to move cargo coming into the United States by placing airline flight numbers on secured trucks.The airline said it offers cargo flights to and from Chicago. It will now be able to move freight faster to other airports once it arrives in the United States because it will not have to transfer the cargo to another company.
This also makes tracking packages easier for customers than before, the company said. Transport Topics
(Click here for the full press release.)
Food Shippers See Sweeter Sales, Despite Scares
Despite the recent fear over the safety of the mail, food shippers are seeing an increase in orders for the holiday season, the National Confectioners Association told the Wall Street Journal.Following the terrorist attacks, and the anthrax scare, many confectioners thought that sales would decline this holiday season. However, these companies are reporting increases in sales by as much as 8%, the Journal reported. Most of these firms rely on the holidays for 90% of their sales.
The reason for the increased sales is likely a desire to celebrate the holidays as usual in spite of recent events, according to a spokesperson for the NCA. Transport Topics
Steel Makers Agree to Cut Production
In an unprecedented agreement, most of the world’s steel-producing countries have agreed to slowly trim output by as much as 97.5 tons of steel capacity by 2010, the Wall Street Journal reported.The agreement is an effort to boost prices and deal with a global steel surplus, the Journal said. The cut is contingent, however, on a U.S. plan to boost tariffs on foreign steel.
The European Union said its offer to cut capacity by 13 million tons would take place if the United States scrapped a plan to add a tax on imported steel.
U.S. officials have said there is no connection between the call for reduced output to prop up prices and tariffs to protect the domestic market. Either one would hurt trucks that carry foreign steel into the country.
Instead, they say the tariffs are a short-term way to compete with low-cost imported steel. The U.S. wants to protect its steel industry, which has seen 25% of producers file for bankruptcy protection, the Journal said. Transport Topics
Boyd Bros. Takes 4Q Charge
Boyd Bros. Transportation Inc., a flatbed trucking firm based in Clayton, Ala., announced Wednesday that it would take a $725,000 charge in the fourth quarter associated with its WTI Transport subsidiary.The charge includes a write-down of $425,000 on power equipment of approximately 50 WTI tractors, bringing its book carrying value to fair value. The company said that it did not anticipate write-downs of this nature at its Boyd Bros. division.
Boyd Bros. also said that its freight volumes slipped in November and in early December, after solid October results. The company said that freight trends are below its expectations, and if they remain low, it could affect fourth-quarter results.
Boyd Bros. is ranked No. 91 on the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
Ford Settles Anti-Discrimination Suits
Ford Motor Co. (F) on Tuesday agreed to pay $10.5 million to settle two class-action lawsuits accusing the automaker of discriminating against older, white men, news services reported. More than 600 current and former employees could receive some of the money, the Associated Press said. As part of the settlement, Ford admitted no wrongdoing.
The lawsuits claimed the company's employee evaluation system favored diversity candidates such as younger women and minorities, AP said, and that a disproportionate number of older, white men were given low grades, costing them raises or promotions.
The system had been promoted by Jacques Nasser, who resigned under pressure on Oct. 30 as president and chief executive officer. Transport Topics
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