News Briefs - Jan. 24
- Greenspan Sees Recession Ending
- Marten Earnings Fall 38%
- Overnite Sees 2001 Net Income Rise to $45.5M
- Senate Committee to Explore Raising Truck Mileage Standards
- Lung Transplant Trucker Dies at 62
- S.D. Senate Committee Delays Overweight Bill
- Initial Jobless Claims Fall for Third Straight Week
- Pa. Governor Unveils Highway Work Zone Safety Plan
- Conference Board Sees U.S. Economy Growing
- Nissan Diesel Sees 2002 Sales, Exports Rising
- Will Meet 4Q Targets, Hungarian Truck Maker Says
- Marten Earnings Fall 38%
Greenspan Sees Recession Ending
Federal Reserve Chairman Alan Greenspan said Thursday that he was too pessimistic about the U.S. economy in comments made earlier this month and was becoming more encouraged that the recession could soon end, news services reported.During testimony to the Senate Budget Committee, Greenspan said that economic activity is beginning to firm, which will lead to a recovery. His remarks were taken as an indication that the Fed is becoming confident it has cut interest rates enough to spur a rebound, Reuters said.
In comments made two weeks ago, Greenspan appeared to have said that the recession was not in the process of ending. However, Thursday he clarified, calling it "unfortunate phraseology," and that he believes the rebound will likely be less robust, given that the recession has been mild.
The central bank is scheduled to meet on Jan. 29-30, and most analysts now believe it will not cut rates for the 12th time in 13 months, Reuters said. Transport Topics
Marten Earnings Fall 38%
Marten Transport Ltd. said Thursday that higher costs and the recession caused its fourth-quarter earnings to fall 38%.The Mondovi, Wis.-based company saw its net income for the quarter fall to $1.3 million, or 31 cents a share, from $2.1 million, or 51 cents a share, the year before.
Although Marten reported record revenue of $282.8 million for fiscal 2001, revenue for the fourth quarter flat with a year ago at $70.4 million.
Marten, a truckload carrier of time- or temperature-sensitive cargo, is ranked No. 57 in the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
Overnite Sees 2001 Net Income Rise to $45.5M
Overnite Transportation Co., a subsidiary of Union Pacific Corp., reported Thursday that net income for fiscal 2001 was $45.5 million, compared with $43.2 million in 2000.Ranked No. 19 on the 2000-2001Transport Topics 100 list, the Richmond, Va.-based less-than truckload carrier reported total revenue of $1.133 billion, up slightly from 2000. However, the company also said in its release that revenue was down 1.1% in the fourth quarter, due to the recession and the aftermath of the terrorist attacks.
Union Pacific said the purchase of Motor Cargo Industries, another LTL carrier, should be completed in mid-February.
The parent company, which owns Union Pacific Railroad, saw its net income for the fourth quarter increase 20% to $275 million, or $1.06 per share. For the year, UP's income increased by 6% to $966 million, or $3.77 per share. Transport Topics
(Click here for the press release on Overnite.)
Senate Committee to Explore Raising Truck Mileage Standards
The Senate Commerce Committee is nearing action on a proposal to increase the federal fuel economy standards for sport-utility vehicles and pickup trucks, the Wall Street Journal reported Thursday.Some commercial trucking activities are carried out in smaller, passenger trucks and SUVs.
Currently, the U.S. auto fleet averages 24 miles per gallon. The committee is expected to recommend the standard be pushed to between 30 and 39 mpg in the next 10 to 15 years, the Journal reported.
The House approved an increase in the fuel economy standards, but not as drastic as the one currently being considered in the Senate Commerce Committee, the Journal said. Transport Topics
Lung Transplant Trucker Dies at 62
Gerald C.”Too Tall” Taylor, 62, who returned to long-haul truck driving after a lung transplant in 1994, died Jan. 16 in Winston-Salem, N.C., after a short illness.Taylor, who drove for B&A Hyder Trucking Co. in Hendersonville, N.C., was featured in the Nov. 22, 1999 issue of Transport Topics, as he was about to complete his millionth mile driving a big rig after the transplant.
The transplant had been performed at the University of Pittsburgh Medical Center on Jan. 30, 1994.
Taylor, a driver since 1962, was an advocate of organ transplants, draping his Kenworth with a banner proclaiming his status as a transplant recipient. He also counseled others in similar medical situations.
Taylor is survived by his wife, Joyce, three sons, two daughters, a sister, eight grandchildren and a great-granddaughter. Dan Lang
S.D. Senate Committee Delays Overweight Bill
The South Dakota State Senate Transportation Committee has delayed action on a bill that would permit overloaded trucks to deliver specialty crops instead of unloading the excess, the Associated Press reported Tuesday.The delay was called for to give the bill’s sponsor a chance to better define specialty crop. Currently, specialty crops are defined as organic goods that would be contaminated if they were offloaded at a weight inspection, the AP said.
The current South Dakota law requires overloaded trucks to correct violations before resuming their trips; there is however, a 5% weight exception for trucks hauling farm products to market. Transport Topics
Initial Jobless Claims Fall for Third Straight Week
The number of U.S. workers applying for unemployment benefits for the first time dropped by 15,000 last week to 376,000, the Department of Labor said in a report released Thursday.If unemployment figures are falling, it could encourage consumer spending, which would be beneficial to the trucking industry.
The four-week moving average, a tool used to take out some of the fluctuations in the relatively unstable labor statistics, also fell, dropping 8,750 to 404,250 in the week ended Jan. 19.
Unadjusted claims for the week were 582,909, down 208,683 from the previous week, but well above the 399,254 claims in the comparable week in 2001.
Reuters noted that initial claims often rise in January on an unadjusted basis as companies lay off workers hired for the holiday season and companies attempt to cut costs as they enter a new year. Transport Topics
Pa. Governor Unveils Highway Work Zone Safety Plan
In an address Wednesday launching the Pennsylvania Truck Safety Symposium, Gov. Mark Schweiker criticized unsafe behavior by both truck and automobile drivers, and unveiled a series of initiatives aimed at making the state’s roads safer.Pennsylvania has a larger network of roads than all of New England and New York state combined. In 2000, the number of truck-involved crashes in the state was the highest in five years.
Schweiker asked the more than 200 attending the symposium in Carlisle, Pa. to focus on education, penalties and enforcement of safety laws for both heavy-truck and automobile drivers.
Work zone crashes also have state officials concerned. Between 1996 and 2000, 100 people were killed in work zone crashes. In 2000, 43% of those crashes involved passenger vehicles, while 32% were blamed on heavy trucks or buses.
As part of the safety push, Schweiker said that the state has already spend $8 billion on highway projects and has plans to spend an additional $6 billion. Transport Topics
(Click here for the full press release.)
Conference Board Sees U.S. Economy Growing
Seeing more evidence of a recovery, the New York-based Conference Board predicted Wednesday that the U.S. economy will grow 1.3% this year and 4.2% in 2003, Bloomberg reported.As the economy improves, the demand for trucking companies to haul raw material and deliver finished goods increases.
A stabilized job market, strong consumer spending and improved corporate earnings will spark the rebound from the recession, Conference Board Chief Economist Gail Fosler said in a statement.
"For the time being the United States has weathered the crisis of Sept. 11 with relatively minor economic damage in the form of a mild recession which has all the signs of ending very soon," Fosler said. Transport Topics
Nissan Diesel Sees 2002 Sales, Exports Rising
Japanese truck maker Nissan Diesel Motor Co. Ltd said Thursday it expects combined domestic sales and exports to rise 7.2% to 28,100 vehicles in 2002, news services reported.The company, which is 22.5% owned by Nissan Motor Co and Renault SA, also sees production increasing 11% to 26,800 vehicles.
Spokesman Yasuyuki Okumura said that Nissan expects that the U.S. economy will improve in the second half of this year and that low-emission regulations in Japan will force customers to trade old trucks for newer ones, Bloomberg said. Transport Topics
Will Meet 4Q Targets, Hungarian Truck Maker Says
Raba Rt., a Hungarian maker of trucks, axles and vehicle parts, said Thursday that the company will meet its fiscal fourth-quarter targets, despite a continued weak U.S. demand, Bloomberg reported.Total sales for the quarter are expected to be about $55.7 million.
Raba also said that it expects the U.S. market to remain weak in the months ahead. The United States is Raba's largest export market, Bloomberg said. Transport Topics
