News Briefs - Feb. 18
The Latest Headlines:
- Navistar to Produce Its Own Class 8 Engine
- Preliminary Consumer Sentiment Index Falls in February
- OPEC May Not Output Cut Output in Second Quarter, Official Says
- Rail Intermodal Volume Remains Strong, AAR Says
- Postal Service's Net Income Dips, but Revenues Rise
- Bush Signs Bill Limiting Class-Action Suits
- Preliminary Consumer Sentiment Index Falls in February
Navistar to Produce Its Own Class 8 Engine
Navistar International Corp. said it would begin producing a line of International brand 11- to 13-liter diesel engines for use in International Class 8 tractors and severe-service trucks beginning in 2007.Navistar is the parent of International Truck and Engine Corp. The engines will be a product of a previously announced agreement between International and MAN Nutzfahrzeuge, the company said in a statement.
"Our strategy for enhancing and growing the engine business involves extending our engine product line," said Jack Allen, president of International's engine unit.
Preliminary Consumer Sentiment Index Falls in February
The University of Michigan said Friday its preliminary index of consumer sentiment dropped to 94.2 in February, the lowest since November, from a final reading of 95.5 in January.It was the second straight month the index has declined. The preliminary index is based on a phone survey of about 300 households. The final report for the month, due March 4, will reflect about 500 responses, Bloomberg reported.
The university's index of current conditions, which reflects Americans perceptions of their financial situation and whether
t's a good time to make big purchases, held steady at 110.9.
However, the expectations index, based on optimism about the next 1-5 years, fell to 83.4, the lowest since May, from 85.7. Transport Topics
OPEC May Not Output Cut Output in Second Quarter, Official Says
The OPEC oil cartel could delay plans to reduce daily production in April because of rising prices and "tight" markets, Libya's OPEC governor said in an interview with Bloomberg.
ammouda El-Aswad was the third official in a week to hint the cartel may scrap proposals to lower output in the second quarter, Bloomberg reported.
The price of crude oil has been trading near $48 a barrel on the New York Mercantile Exchange, which was about 35% higher than a year earlier. OPEC's next scheduled meeting is March 16 in Iran. Transport Topics
Rail Intermodal Volume Remains Strong, AAR Says
The Association of American Railroads said intermodal volume totaled 221,999 trailers or containers in the week ended Feb. 12, up 11.6% from the same week a year earlier.Railroad volume is considered an important economic indicator. Intermodal traffic, which tends to be higher-valued merchandise than bulk commodities, uses trains for the long haul and trucks for the shorter distance at either end of the trip.
For the first 6 weeks the year, intermodal volume was 1.3 million trailers or containers, up 8.5% from the same period a year earlier, AAR said.
AAR also said rail car loadings were 341,577 for the week, down 6% from the same week in 2004. Total volume was estimated at 31.8 billion ton-miles. Transport Topics
Postal Service's Net Income Dips, but Revenues Rise
The U.S. Postal Service said its net income for its fiscal first quarter ended Dec. 31 was $1.7 billion, compared with $1.8 billion a year ago.Revenue increased 3.2% to $18.8 billion, the Postal Service said in a statement.
Chief Financial Officer Richard Strasser Jr. said volume grew 5.5% during the quarter, the biggest jump in 15 years. However, he said it was largely driven by a one-time spike in November as the economy improved. Transport Topics
Bush Signs Bill Limiting Class-Action Suits
President Bush on Friday signed a bill to curtail class-action lawsuits against companies by moving most of them from state to federal court, news services reported.The House approved the bill on Thursday, a week after the Senate had passes the legislation.
The legislation doesn't affect pending lawsuits, only those filed after the bill becomes law, Bloomberg reported. Under the bill, most class-action lawsuits seeking at least $5 million would be transferred to federal court.
A coalition of companies including Ford Motor Co., Intel Corp., Pfizer Inc. and insurers Allstate Corp. and Hartford Financial Services Group Inc. lobbied Congress for an overhaul to cut legal costs, Bloomberg reported.
Mike Mueller, head of a nationwide class-action team at Akin Gump Strauss Hauer & Feld LLP, predicted that plaintiffs' lawyers will challenge the new law as an unconstitutional expansion of federal power, Bloomberg said. Transport Topics
(Click here for previous coverage.)
