News Briefs - Jan. 2
The Latest Headlines:
- Bush to Unveil Stimulus Plan
- Roadway to Sell Division to Management Group
- Crude Oil Rises as U.S. Inventories Fall
- Volvo to Raise Cash by Selling Euro Bonds
- Universal Express Unit Purchases Vehicle Maker
- Consumer Confidence Dips in December
- Roadway to Sell Division to Management Group
Bush to Unveil Stimulus Plan
Speaking at his ranch in Crawford, Texas, President Bush said Thursday that he will unveil his plans for an economic-stimulus plan some time next week, the Associated Press reported.Bush would provide details about his plan, but aides said that it would likely accelerate some tax breaks the administration won in 2001 and possibly include new tax breaks for investors and several incentives for businesses, AP said.
Bush will likely back away from tax breaks for the wealthiest Americans to avoid political entanglements. Transport Topics
Roadway to Sell Division to Management Group
Less-than-truckload carrier Roadway Corp. said Monday that it has agreed to sell its Arnold Transportation Services unit to a management group headed by the division’s chief executive officer.The buying group, headed by Michael S. Walters and private equity firm Jefferies Capital Partners, will purchase Arnold for approximately $55 million sometime in the first quarter of 2003, Roadway said.
Arnold is an irregular route and dedicated truckload carrier based in Jacksonville, Fla. specializing in regional hauls. The company owns and uses 800 tractors and 4,200 trailers, in addition to 500 owner-operators.
Based in Akron, Ohio, Roadway had purchased Arnold Transportation Services in November 2001 as part of its acquisition of Arnold Industries (Click here for related coverage.).
Roadway is ranked No. 7 on the 2001-2002 Transport Topics 100 listing of the largest trucking companies in the United States and Canada. Transport Topics
(Click here for the full press release.)
Crude Oil Rises as U.S. Inventories Fall
The price of crude oil rose 55 cents in electronic trading Thursday morning, Bloomberg reported, after an industry report showed lower U.S. inventories.The increase in crude pushed oil prices to $31.75 a barrel on the New York Mercantile Exchange, Bloomberg said.
Motor fuels like gasoline and diesel are distilled from crude oil, with price changes in crude often being passed onto consumers at the pump.
Crude prices were moved, Bloomberg reported, by a report by the American Petroleum Institute that showed a larger-than-expected drop in U.S. inventories. The decline of 9.1 million barrels last week left stocks at their lowest point since their October lows.
The report contributed to the benchmark price of oil used by the Organization of Petroleum Exporting Countries staying above the $28 high in its price range for an 11th straight day, Bloomberg said. If the price stays above the cartel's trading range of $22-$28 a barrel, it has a mechanism to automatically boost production. Transport Topics
Volvo to Raise Cash by Selling Euro Bonds
Volvo AB, the second-largest truck maker in the world, said it plans to sell bonds in Euros to raise money for general corporate purchases, Bloomberg reported Thursday.The Swedish company said that it is planning to sell floating-rate notes maturing in 2 ½ years. The sale could start as soon as this month, the underwriter of the sale – Handelsbanken Capital Markets – said in a statement.
Neither the bank nor the company said how large the sale would be, Bloomberg reported.
A company spokesman described the move as "just regular fund raising," Bloomberg said. Transport Topics
Universal Express Unit Purchases Vehicle Maker
Universal Express Inc. said Thursday that its USXP Capital unit has executed a contract to purchase United States Coach – a leading manufacturer of commercial vehicles.The transaction also completes the requirements for USXP to conclude its acquisition of Go Leasing, a financing and leasing affiliate of US Coach.
Universal Express owns several transportation-related subsidiaries, like Universal Express Logistics and the Private Postal Network. US Coach is a manufacturer of limousines and buses based in Bohemia, N.Y. Transport Topics
(Click here for the full press release.)
Consumer Confidence Dips in December
The Conference Board said that its consumer confidence index dipped in the final month of 2002, erasing a gain in November.The index slipped to 80.3 in December, down from a revised figure of 84.9 in November. Analysts had been looking for an increase in the index to 88.0, the Associated Press reported Tuesday.
The pessimistic view of the economy was reinforced by a weaker than expected holiday shopping season, AP said. Higher oil prices due to the strike in Venezuela and the threat of war in Iraq also contributed to the dip in confidence in the U.S. economy. Transport Topics
