News Briefs - Feb. 24
The Latest Headlines:
- Grocer Ahold Sees Shares Collapse After Accounting Questions
- Senators Ask FTC to Examine Gasoline Prices
- Volvo Rolls Out Another Compliant Engine
- Wabash Says It Will Probably Violate Debt Agreements
- Crude Oil Rises as U.S. and U.K. Seek New Resolution
- Cummins Expects Increase in Chinese Sales
- Mullen Posts Weaker Fourth Quarter
- Senators Ask FTC to Examine Gasoline Prices
Grocer Ahold Sees Shares Collapse After Accounting Questions
Ahold, one of the world’s largest retailers, said Monday that it will have to restate two-and-a-half years of quarterly reports in the United States after irregularities were found, Reuters reported.The parent company of Giant Food, Tops Markets and Stop & Shop Supermarkets in the United States, Ahold USA is ranked No. 2 on the 2002 Transport Topics private 100 listing of the largest privately held trucking companies in the United States and Canada.
In addition to announcing the restatement of its fiscal results, Ahold also cut ties with its chief executive officer and chief financial office, Reuters said.
Senators Ask FTC to Examine Gasoline Prices
Two Midwestern senators asked the Federal Trade Commission to take a look at soaring gasoline prices to determine if consumers are being gouged at the pump, Reuters reported Friday.The Department of Energy said last week that the national average price of gasoline was $1.66 a gallon – the seventh highest on record and 54 cents higher than the same point last year.
Sens. Herb Kohl (D-Wis.) and Mike DeWine (R-Ohio) want the FTC to investigate if oil companies are trying to profit from the threat of war with Iraq by boosting gasoline prices.
Gasoline, while not the primary fuel for trucking is still widely used in the industry. Transport Topics
Volvo Rolls Out Another Compliant Engine
Volvo Trucks North America said Monday it has launched a new 465-horsepower diesel engine for that complies with stricter emissions standards that went into effect in October 2002.Volvo said that the new engine makes it the only company in the North American market to offer a “complete range of engines with the same power output levels it offered before the new, more stringent emission requirements took effect.”
The truck maker said that the new engine is the most powerful of its VN series. The engine is being marketed toward “customers that drive heavy transports over long distances,” Volvo said. Transport Topics
(Click here for the full press release.)
Wabash Says It Will Probably Violate Debt Agreements
Trailer maker Wabash National Corp. said Friday that it does not expect to meet its debt agreements in 2003, and has started talks to restructure $347 million in loans.The company said that in the fourth quarter, it lost $11.9 million or 46 cents a share, narrowing its loss from the $134.9 million or $5.88 a share it lost in the same period in 2001.
Based in Lafayette, Ind., Wabash National manufactures truck trailers under the Wabash and Fruehauf nameplates. Transport Topics
(Click here for the full press release.)
Crude Oil Rises as U.S. and U.K. Seek New Resolution
The price of crude oil rose Monday morning as the United States and the Unite Kingdom prepared to introduce a new resolution to the United Nations Security Council saying that Iraq has failed to cooperate with UN weapons inspectors, Bloomberg reported.Such a resolution would likely move the U.S. closer to war with Iraq, analysts told Bloomberg.
To get a resolution passed, the U.S. would need to win nine of 15 votes from the council, however one veto vote by one of the five permanent members could kill the resolution. France, China and Russia are permanent members of the council and have expressed reservations about a war with Iraq. The U.S. and Britain are also permanent members of the Security Council.
In trading on the New York Mercantile Exchange, the price of crude oil for April delivery rose 67 cents to $36.25 a barrel, Bloomberg reported. Transport Topics
Cummins Expects Increase in Chinese Sales
Diesel engine manufacturer Cummins Inc. said Monday that it expects its sales in China to increase by 60% after reorganizing its venture with Dongfeng Motor Corp., Bloomberg reported.The Columbus, Ind.-based company said that it expects its sales in China to exceed $900 million, Bloomberg reported. Cummins said that China to contribute 80% more sales than India – its second-largest foreign market.
The company’s reorganization in China will lead to production of 150,000 diesel engine units this year, Bloomberg reported, up 20,000 from last year’s total. Transport Topics
Mullen Posts Weaker Fourth Quarter
Canadian trucking and oilfield-services company Mullen Transportation Ltd. said Friday that it had a net income of $4.6 million or 31 cents a share in the fourth quarter of 2002, down from the $6.7 million or 46 cents it reported in same quarter the previous year.The company reported $39.4 million in revenue generated from its trucking segment, down 9.8% from the $43.7 million the segment generated the same quarter of the previous year.
For all of 2002, the company said that had net income of $18.6 million or $1.27 a share. Mullen’s trucking unit reported revenue of $166.9 million, down from the $195.2 million it generated the year previous.
Mullen is ranked No. 70 in the 2002 Transport Topics listing of the largest trucking companies in the United States and Canada. Transport Topics
