News Briefs - Feb. 23
The Latest Headlines:
- Fed Committee Cites Inflation Concerns
- Transportation Financial Firms Announce Merger
- Ky. House Approves Raising Truck Weight Limits
- Kansas City Southern Appoints New Rail Executive
- Boeing to Sell Commercial Aircraft Unit
- Goodyear Forecasts Strong Fourth Quarter
- DOT Proposes Additional Air Cargo Rights to China
- U.S. to Impose Strict Rules on Canadian Cattle Imports
- Transportation Financial Firms Announce Merger
Fed Committee Cites Inflation Concerns
Interest rates are too low to ensure stable prices, according to the minutes of the Federal Reserve’s Open Market Committee meeting Feb. 1-2 released Wednesday, Bloomberg News reported.The minutes showed committee members were concerned about the falling value of the dollar and said that increases in labors costs could push prices higher, Bloomberg said.
The FOMC raised interest rates a quarter-point Feb. 2 to 2.5% and restated a plan to make future rate increases at a “measured” pace.
(Click here for previous coverage.)
Transportation Financial Firms Announce Merger
Two transportation advisory firms said they have merged to form Transport Capital Partners LLC.The new company was formed by the merger of Larsen, Batts, Welborn & Co., which specializes in mergers and acquisitions, and Transport Capital Advisors LLC, a transportation services company, TCP said in a statement.
The new company said it will focus on extending merger and acquisition services, capital sourcing and financial advisory services to transportation companies.
The principals include Lana Batts, a former senior vice president for American Trucking Associations and past president of the Truckload Carriers Association. Transport Topics
Ky. House Approves Raising Truck Weight Limits
The Kentucky House passed a bill Tuesday raising weight limits for trucks, the Associated Press reported.More trucks would be allowed to carry up to 60 tons under the measure, from 40 tons currently allowed under state law, AP said.
Under Kentucky law only coal trucks with permits are allowed to exceed the 40-ton limit, legislation that has been in effect since the mid 1980s, AP reported.
The bill passed by a 55-32 vote and now goes to the state’s Senate for consideration, AP said. Transport Topics
Kansas City Southern Appoints New Rail Executive
Kansas City Southern said Wednesday it had promoted R. Michael Chapman to senior vice president of transportation.Chapman, a 30-year railroad industry veteran, will oversee the Kansas City Southern Railway Co. and the Texas Mexican Railway Company, also known as the Tex-Mex, both units of KCS.
Based in Shreveport, La., he will focus on improving the railroad’s safety performance and providing reliable service, KCS said in a statement. Transport Topics
Boeing to Sell Commercial Aircraft Unit
Boeing Co. will sell the Wichita/Tulsa division of Boeing Commercial Airplanes to Canadian firm Onex Corp. for $900 million cash and transfer of some assets and liabilities, Standard & Poor’s said in a bulletin Wednesday.The Wichita division produces the fuselage for the 737 series of aircraft and structures for most Boeing commercial aircraft, S&P said. Many of the Boeing’s planes are used to move air cargo.
he sale did not affect Boeing’s credit rating with S&P and will allow the aircraft maker to focus on design, system integration and final assembly, S&P said. Transport Topics
Goodyear Forecasts Strong Fourth Quarter
Goodyear Tire & Rubber Co. said Wednesday it expects to report 2004 fourth quarter net income of 55 cents to 65 cents per share.The company said in a statement it expects record sales of $4.8 billion for the quarter and that all seven of its business units would report positive operating income.
Goodyear said its North American tire business would report positive operating income for the third consecutive quarter, with results about equal to the third quarter of 2004 and up significantly from a loss in the fourth quarter of 2003.
Compared to the fourth quarter of 2003, it expects segment operating income to more than double in its European business, increase by 50% in Latin America and improve by about 15% in its chemical product business. Transport Topics
DOT Proposes Additional Air Cargo Rights to China
The Department of Transportation Tuesday proposed to award new weekly cargo flights to China to four air carriers currently serving the U.S.-China market.DOT proposed awarding three all-cargo flights each to FedEx Corp., UPS Inc., Northwest Airlines and Polar Air Cargo. They would become available on March 25, 2006, DOT said.
Last year, DOT named Polar as the first new-entrant carrier under the agreement and awarded additional flights to incumbent carriers United, Northwest, FedEx and UPS, the department said. Transport Topics
U.S. to Impose Strict Rules on Canadian Cattle Imports
The United States will institute strict rules on imports of Canadian cattle when imports resume March 7, the Wall Street Journal reported Wednesday.The rules will include everything from how trucks are sealed to age-verification measures for live cattle, the paper said, quoting U.S. Department of Agriculture officials.
The USDA banned Canadian cattle imports after that country’s first reported case of mad cow disease in May 2003. Last August it eased the ban, as long as beef was boneless and live cattle was younger than 30 months.
After Canada had discovered another case of the disease in January, the USDA scuttled a plan to allow older cattle imports beginning in March. Transport Topics
