News Briefs - March 31
The Latest Headlines:
- Manufacturing Contracts During March, NAPM-Chicago Says
- Crude Oil Rises on More Uncertainty
- MAN In Talks to Expand into China
- Ohio Bill Hikes Fuel Taxes
- Deutsche Post to Shift German Night Cargo Runs to Trucks
- Atlas Air Expands Restructuring Talks
- Alpine Air Posts 1Q Net Loss
- Cronos Posts Lower 2002 Earnings
- Crude Oil Rises on More Uncertainty
Manufacturing Contracts During March, NAPM-Chicago Says
Manufacturing in the Chicago area contracted in March, its first retrenchment in five months, the National Association of Pur-chasing Managers in Chicago reported Monday.NAPM-Chicago’s factory index fell to 48.4 from a reading of 54.9 in February. Readings below 50 indicate business contraction.
The decline was the most in 23 years, the business group said.
Crude Oil Rises on More Uncertainty
The price of crude oil started the week higher as the war continued to delay exports of oil from Iraq and the strike in Nigeria kept some oil fields there shut, Bloomberg reported.On Monday, the price of crude oil for May delivery closed up 88 cents a barrel at $31.04 in on the New York Mercantile Exchange, Bloomberg said.
The slower-than-anticipated progress in the war on Iraq, combined with pinched production from Nigeria has given rise to supply fears, Bloomberg reported, pushing the price of oil higher. Transport Topics
MAN In Talks to Expand into China
MAN AG, the third-largest truck manufacturer in Europe, said that it is in talks with a Chinese investment firm about a possible venture in the Asian country, Bloomberg reported.The truck manufacturer told Automobilwoche magazine that it is in talks with D’Long to manufacture trucks, tractor-trailers and other vehicles in China, Bloomberg reported.
The talks should wrap up by the end of 2003, the magazine reported. D’Long owns China National Heavy Duty Truck Corp., Bloomberg said. Transport Topics
Ohio Bill Hikes Fuel Taxes
The Ohio General Assembly passed legislation March 26 that would increase the state fuel tax 6 cents per gallon for both diesel fuel and gasoline, but eliminates a 3-cent surtax currently on diesel.The state’s current basic fuel tax is 22 cents a gallon for both fuels, but diesel carries the additional 3-cent highway use tax that the new legislation would remove.
Gov. Bob Taft told the Akron Beacon Journal he would sign the legislation.
The legislation would raise the fuel tax in annual 2-cent increments, starting in July and ending in 2005.
However, a provision the Ohio Trucking Association supported reduces the diesel surtax to 2 cents in 2004 and eliminates the surcharge in 2005.
OTA President Larry Davis told Transport Topics that full elimination of the surtax would save Ohio truckers $35 million a year.
“When the bill came out of the House we had a 6-cent fuel tax increase,” he said. “Our carriers called and called (lawmakers), and convinced them to cut that in half.” Transport Topics
This article appears in the March 31 print edition of Transport Topics. Subscribe today.
Deutsche Post to Shift German Night Cargo Runs to Trucks
German package delivery firm Deutsche Post AG said Monday that it was trimming overnight cargo flights in favor of trucking shipments across Germany, Bloomberg reported.Deutsche Post, the parent company of DHL Worldwide, made an offer to purchase the trucking unit of U.S. carrier Airborne Inc. (Click here for related coverage.) last week.
The move is being made to cut costs, Deutsche Post said. In all, the number of flights operated by Deutsche Post will be cut to 23 from 32, Bloomberg said. Transport Topics
Atlas Air Expands Restructuring Talks
Atlas Air Worldwide Holdings Inc. said March 28 that it is expanding its restructuring discussions to include all of its lessors, bank lenders and representatives of holders of its public debt.Previously, Atlas had only been in talks with the lessors for six of its aircraft.
The company said it hopes that these talks will conclude by the end of April. While the discussions are ongoing, the company has suspended payments related to its bank debt, senior notes and leased aircraft, it said in its release.
Atlas said it “is optimistic that these restructuring discussions will be successful. However, there is no assurance that this will be the case. Should these negotiations prove unsuccessful, lessors and creditors may instead choose to accelerate the company's debt and leases and foreclose on their collateral; most of this collateral is aircraft.”
Airfreight carriers Atlas Air Inc. and Polar Air Cargo Inc. are both subsidiaries of Atlas Air Worldwide Holdings Inc. Transport Topics
(Click here for the full press release.)
Alpine Air Posts 1Q Net Loss
Air cargo carrier Alpine Air Express Inc. said last week in a filing with the Securities and Exchange Commission that it had a net loss of $84,558 or 1 cent per share in its first quarter ended Jan. 31.The Provo, Utah-based company said that same quarter in 2002, the company lost $84,552 or 1 cent per share.
Total revenue for the company during the quarter was $2.54 million, down from the $2.93 million, the Alpine said. Transport Topics
(Click here for the full press release.)
Cronos Posts Lower 2002 Earnings
The Cronos Group, an intermodal equipment leasing company, said March 28 that for all of 2002, it posted a net income of $3.1 million or 41 cents a share. This is a decline from the $3.2 million or 39 cents a share from the previous year.During the year, the company said it generated revenues of $119.7 million, down from the $131.7 it reported in 2001.
Despite the decline in revenue, Cronos said in its statement that demand for containers was good.
"The increase in demand for leased containers during 2002 exceeded our expectations earlier in the year and brought utilization to 85% at year end,” said Chief Executive Officer Dennis J. Tietz.
(Click here for the full press release.)
