News Briefs - Jan. 29
The Latest Headlines:
- Cummins Sees 4Q Earnings Boost After Tax Adjustment
- Covenant Transport Reverses 4Q Loss
- Bush Proposes Fuel Cell Research Funding
- Nominee Snow Backs Bush Tax Plan
- Covenant Transport Reverses 4Q Loss
Cummins Sees 4Q Earnings Boost After Tax Adjustment
A one-time adjustment in its income taxes helped engine maker Cummins Inc. boost its fourth quarter earnings to $47 million or $1.12 per share.The tax adjustment, the company said, added $57 million to the company’s bottom line. In the same quarter in 2001, the Columbus, Ind.-based company reported net income of $3 million or 8 cents per share.
The company said that sales fell 3.3% during the final three months of the year to $1.41 billion from $1.46 billion. Cummins said that its engine business recorded a loss of $15 million as demand dropped after the Oct. 1, 2002 change in emissions standards. Transport Topics
Covenant Transport Reverses 4Q Loss
Covenant Transport Inc. said Tuesday that in the fourth quarter of 2002, it posted net income of $3.4 million or 23 cents a share; reversing a loss of $8.3 million or 59 cents a share it suffered in the same timeframe the previous year.The company said its improvement in earnings was coupled with a 4% gain in revenue to $146.7 million from $140.6 million in the final quarter of 2001.
A Chattanooga, Tenn.-based truckload carrier, Covenant Transport is ranked No. 32 on the 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.)
Bush Proposes Fuel Cell Research Funding
In his State of the Union address, President Bush proposed earmarking $1.2 billion for research into fuel cell-powered vehicles as part of his plan for the economy and the environment.In proposing the research funding Bush said, “In this century, the greatest environmental progress will come about, not through endless lawsuits or command and control regulations, but through technology and innovation.”
Fuel cells have been seen by some researchers as an answer to the country’s air quality problems and by some in the trucking industry as a solution to new, tougher emissions regulations.
Using a chemical reaction between hydrogen and oxygen, fuel cells create power while only expelling water as a byproduct.
The proposal was a minor part of Bush’s speech, which focused on his plan to stimulate the economy and the fight against terrorism. Transport Topics
Nominee Snow Backs Bush Tax Plan
In his confirmation hearing, former CSX Corp. chairman and chief executive officer, and nominee for the vacant position of Treasury secretary, John W. Snow said he believed President Bush’s tax cut plan would help create jobs and stimulate the economy, news services reported Wednesday.The New York Times said that Snow faced tough criticism about Bush’s $674 billion package of tax cuts and other economic stimuli, as well as questions about his compensation package while at the rail giant.
Despite their criticism of the president’s plan, Democrats on the committee indicated they would not block Snow’s confirmation, setting up a possible Thursday vote in the full Senate, the Times said. Transport Topics
