News Briefs - Jan. 11
The Latest Headlines:
- UPS Buys 10 New Planes From Airbus
- Allied Holdings Reports Larger 3Q Net Loss
- Mullen Considers Converting to Trust; Shares Surge
- Rush Completes Acquisition
- Fed's Guynn Says Central Bank Closely Watching Inflation
- Hubbard Picked as National Economic Council Director
- Allied Holdings Reports Larger 3Q Net Loss
UPS Buys 10 New Planes From Airbus
UPS Inc. has ordered 10 of Airbus' new A380 super-jumbo jets for delivery beginning in 2009, news services reported.The planes will be used on U.S.-to-Asia cargo routes, the Associated Press reported. The A380 has a cargo capacity of 330,000 pounds.
Financial terms of the deal were not disclosed. UPS spokesman Norman Black said the A380 sells for as much as $280 million at retail prices, but large airline customers typically negotiate steep discounts, AP reported.
Allied Holdings Reports Larger 3Q Net Loss
Auto hauler Allied Holdings Inc. said its net loss for the third quarter was $7.6 million or 87 cents per share, compared with $2 million or 23 cents a year earlier.Revenues for the quarter were $207.6 million, compared with $197.1 million in the third quarter of 2003. Allied said higher fuel costs, higher benefits costs and higher maintenance costs were among the reasons for the larger net loss.
Allied Holdings is ranked No. 22 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Mullen Considers Converting to Trust; Shares Surge
Shares of Canadian transportation firm Mullen Transportation Inc. have increased nearly 15% on the Toronto Stock Exchange since it said last week it was considering converting to a trust, the Calgary Herald reported.Mullen's announcement followed a steady stream of oil and gas producers that have reorganized into income trusts, a popular investment structure because of tax advantages, the Herald reported. Besides truckload and less-than-truckload services, Mullen also performs oil and gas rigging and hauling services.
A proposal could be ready in time for the company's annual meeting in May, the Herald reported.
Mullen is ranked No. 63 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Rush Completes Acquisition
Rush Enterprises Inc., the nation’s largest dealer of Peterbilt Motors Co. trucks, said Jan. 4 that it completed the acquisition of American Truck Source Inc., a Peterbilt dealer with operations in Texas and Tennessee.Rush, which announced the purchase in September, said the cost of the transaction was $131.2 million.
The addition of seven former ATS locations would expand Rush’s presence in the southern United States and bring its total network to 43 truck locations in nine states. Roger Gilroy
Fed's Guynn Says Central Bank Closely Watching Inflation
Jack Guynn, president of the Federal Reserve Bank of Atlanta, said Monday the central bank was closely watching inflation, Bloomberg reported.Speaking to the Rotary Club of Atlanta, he said it was vital the policy-setting Federal Open Market Committee maintain the flexibility to respond with whatever action is needed, even if it could surprise the financial markets, Bloomberg said.
Guynn will vote at the next two Fed policy meetings as a stand in for the Dallas Fed, Bloomberg said. The Fed raised rates five times during 2004, each time by a quarter-point. However, he warned not to assume the Fed would continue raising in some same increments. Transport Topics
Hubbard Picked as National Economic Council Director
President Bush on Monday selected Al Hubbard to succeed Stephen Friedman as director of the National Economic Council, Bloomberg reported.Hubbard is president of Indianapolis-based E&A Industries Inc., and was a deputy chief of staff to Vice President Dan Quayle. He will become the sixth person to head the NEC since it was formed by President Clinton in 1993.
The council's role is to coordinate economic policy by advising the president on the competing views of agencies such as the Treasury and Labor Department, rather than taking a position of its own. Bloomberg said. Transport Topics
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