News Briefs - March 11
The Latest Headlines:
- Rising Fuel Costs Seen Threatening Small Truckers
- Wholesale Sales Rise in January; Inventories Decline
- CF Signs Letter to Sell Canadian Subsidiary
- Airlines Facing More Difficulty
- Cardinal Logistics Announces New Financing Pact
- Frozen Food Express Improves 4Q Earnings
- Wholesale Sales Rise in January; Inventories Decline
Rising Fuel Costs Seen Threatening Small Truckers
The escalating cost of fuel is threatening to shutter many small trucking companies, the Wall Street Journal reported Tuesday.On Monday, the Department of Energy said that diesel fuel prices rose to $1.771 a gallon (Click here for related coverage.).
Bob Costello, chief economist at the American Trucking Associations, told the paper that the industry is highly fragmented and fiercely competitive and that most of its players are small companies with less than six trucks.
Wholesale Sales Rise in January; Inventories Decline
Sales by U.S. wholesalers rose 1% to $236.9 billion during January, the Commerce Department said Tuesday.The increase in sales led to a selling down of inventories, which fell 0.2% from December, Commerce reported.
Versus the previous year, wholesale sales were up 6.1% in January. Inventories were also up in when compared to the same month a year ago, posting an increase of 0.1%, Commerce said.
The government said that the inventory-to-sales ratio, or the measure of how long goods sit unsold on store shelves, fell to 1.21 months from 1.22 months in December. Transport Topics
CF Signs Letter to Sell Canadian Subsidiary
Consolidated Freightways Corp. said Monday that it signed a letter of intent with CF Canada Acquisition Ltd. to sell the assets of its Canadian subsidiary, Canadian Freightways Ltd. and some that company’s units.CF Canada Acquisition is a group comprised of Canadian Freightways senior management and a financial partner, the company said.
Less-than-truckload carrier Consolidated Freightways Corp. declared bankruptcy in September 2002 and has been systematically selling off its assets to repay its creditors (Click here for related coverage.). The Vancouver, Wash.-based company said that all documents relating to the sale of its assets, including of its sale of Canadian Freightways, are available at its Web site.
Before its demise, CF had been ranked No. 12 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.)
Airlines Facing More Difficulty
Airlines in the United States are preparing for more tough times if the U.S. does enter into a war with Iraq, the Washington Post reported.A war, the industry’s trade group – the Air Transport Association – said, would likely keep travelers on the ground, as it did during the first Gulf War, the Post reported.
The airlines already struggling to make a comeback in the wake of the Sept. 11 terrorist attacks, could be crippled by mounting debts and declining revenues. Two major carriers, US Airways and United Airlines, have already filed for bankruptcy.
Most airlines haul at least some air cargo in the bellies of their passenger jets. Transport Topics
Cardinal Logistics Announces New Financing Pact
Cardinal Logistics Management Inc. said Tuesday that it has amended and extended its credit facility with Fleet Capital Corp, and Tranamerica Business Capital Corp.The new agreement will extend its current pact through Jan. 31, 2006, Cardinal said.
Based in Concord, N.C. Cardinal Logistics provides dedicated shipping services for retail and manufacturing firms, particularly in the pulp and paper industry. Transport Topics
(Click here for the full press release.)
Frozen Food Express Improves 4Q Earnings
Refrigerated carrier Frozen Food Express said Monday that it had net income of 3 cents per share, up from the 1 cent a share the company reported for the same quarter in 2001.During the final quarter of 2002, the company reported a net income of $576,000, up from $205,000 in the same quarter in 2001.
The company reported revenues of $90.5 million in the quarter ended Dec. 31, down from the $91.5 million it generated in same period the previous year.
Frozen Food Express said that for all 2002, it had a net income of $3.2 million or 19 cents a share, an improvement from the $154,000 or 1-cent-per-share loss the company suffered in 2001.
Based in Dallas, Frozen Food Express is ranked No. 45 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.)
