News Briefs - Jan. 30
- Mineta to Have Hip Replacement Surgery
- California to Vote on Carbon Dioxide Bill
- Accounting Change Boosts J.B. Hunt Earnings
- UPS Tax Case Won't Get Immediate Appeal
- USFreightways 4Q Earnings Fall 61%
- NADA Says Worst of Recession Over
- USA Truck Earnings Up; New President Named
- Hayes Lemmerz Gets Approval for Loan
- Visteon Trims 150 Jobs
- California to Vote on Carbon Dioxide Bill
Mineta to Have Hip Replacement Surgery
Transportation Secretary Norman Mineta is scheduled to have hip replacement surgery on Wednesday night, the Associated Press reported.He is expected to be hospitalized as long as three weeks. Deputy Transportation Secretary Michael Jackson will run the agency while Mineta recovers.
DOT spokesman Chet Lunner said Mineta will have a laptop computer and be briefed regularly by officials. Transport Topics
California to Vote on Carbon Dioxide Bill
California's state assembly may vote as soon as Wednesday on a bill that would reduce carbon dioxide emitted by vehicles sold in the state by 2005, despite opposition from automakers, Bloomberg reported.
This measure would require the state's Air Resources Board to regulate gasoline as well as other pollutants created by burning of gasoline.
However, the Alliance of Automobile Manufacturers is among the groups against the bill because it is too broad, Bloomberg said.
Even if it is passed, the bill will require approval from the California Senate and Gov. Gray Davis. Transport Topics
Accounting Change Boosts J.B. Hunt Earnings
A change in accounting methods boosted fourth-quarter net earnings to $18.2 million, or 50 cents per share, J.B. Hunt Transport Services Inc. announced Wednesday.The change, which involves the way the company estimates losses relating to liability and workers compensation claims, resulted in a $10.2 million increase in net earnings. In the fourth quarter of 2000, net earnings were $10.9 million, or 31 cents per share.
Total fourth-quarter operating revenue of the Lowell, Ark.-based company was $545.5 million, up 11.5 million from the analogous quarter of the previous year.
J.B. Hunt, a transportation and logistics firm, is ranked No. 13 on the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
UPS Tax Case Won't Get Immediate Appeal
United Parcel Service's fight with the Internal Revenue Service will be going back to federal tax court because the agency failed to appeal to the U.S. Supreme Court, Bloomberg reported Tuesday.The dispute over $1.8 billion in back taxes could have gone to the Supreme Court for a review, but the IRS did not ask the high court to take a look at the last ruling by 11th Circuit Court of Appeals against it, Bloomberg said.
The IRS claims that UPS created an independent, overseas subsidiary in Bermuda for the sole purpose of avoiding federal income tax. The 11th Circuit Court disagreed, siding with the Atlanta-based package carrier.
UPS is ranked No. 1 on the 2000-2001 Transport Topics 100. Transport Topics
USFreightways 4Q Earnings Fall 61%
USFreightways Corp. said Wednesday that its fourth-quarter profits declined 61% to $8.78 million, or 33 cents per share, due mostly to a $3.16 million loss at its freight-forwarding unit.The trucking company’s press release said the profit report includes a charge for severance payments and lease terminations. If these were not included, the company would have met analysts’ expectations, Bloomberg said.
Overall trucking profit at USFreightways was $25.9 million for the quarter, a drop of 43% from the same quarter last year.
The regional less-than-truckload group saw its revenue fall to $430.5 million from $473.6 million as shipments decreased 4.1%.
For the full fiscal year, the Chicago-based company earned $43.4 million, or $1.62 per share before special charges, compared with $97.8 million, or $3.65 per share.
The company also said it was “cautiously optimistic” that the economy would begin to recover in the middle of 2002.
USFreightways is ranked No. 9 on the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
NADA Says Worst of Recession Over
The National Automobile Dealer Association said the worst of the U.S. recession is over, although car and truck sales are not expected to keep pace with 2001's record-setting totals, Reuters reported Monday.Strong automobile sales mean brisk demand for parts haulers and trucking companies that specialize in vehicle delivery.
Wall Street analysts see new vehicle sales falling 2.2 million to 15 million in 2002, but NADA economist Paul Taylor said he expects improving consumer confidence to make sales strong in the second half, pushing them to 15.9 million. Transport Topics
USA Truck Earnings Up; New President Named
Truckload carrier USA Truck Inc. reported a net income for the fourth quarter of $624,277, or 7 cents per share, compared with a net loss of $1.2 million, or 13 cents per share for the same period in 2000.The company also announced in a press release Wednesday that Jerry Orler, currently chief financial officer and vice president - finance, will become president on Feb. 1. He will replace Robert Powell, who will remain chairman of the board and chief executive officer.
For the full fiscal year, net income increased 1056% to $1.09 million or 12 cents per share, as operating revenues increased 11.4%. USA Truck is ranked No. 63 in the 2000-2001 Transport Topics 100 list.
USA Truck is ranked No. 63 in the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
Hayes Lemmerz Gets Approval for Loan
Hayes Lemmerz International Inc., a company that supplies commercial highway wheels, brakes, suspensions and lightweight components, said Tuesday that it received a judge's approval for a $200 million loan to continue operations during bankruptcy reorganization, Bloomberg reported.Based in Northville, Mich., Hayes filed for Chapter 11 protection in December, after struggling with slow sales and debt from acquisitions.
The loan is from a group led by Canadian Imperial Bank of Commerce's CIBC World Markets Corp., Bloomberg said. Transport Topics
Visteon Trims 150 Jobs
Auto part supplier Visteon Corp. has eliminated 150 jobs, mostly salaried and contract engineers, the Associated Press reported Wednesday.The cuts are related to the company's decision to slash research and development spending by 10% as the auto industry slows down, the AP said.
Job cuts in the manufacturing sector, particularly in automobile manufacturing, can be damaging to the trucking industry which relies on consumer spending and product shipping orders for much of its revenue.
Formerly the parts manufacturing unit of Ford Motor Co., Visteon produces auto parts ranging from glass and air conditioners to electronic components.
In April 2001, Visteon announced a restructuring plan involving the eventual elimination of 2,000 jobs. Transport Topics
