News Briefs - March 5
The Latest Headlines:
- Dynamex Boosts 2Q Net Income
- Fed Says Growth ‘Remained Subdued’ Early in 2003
- U.S. Services Economy Sees Slower Growth in February
- FedEx Freight Expands Next-Day Service
- OPEC Secretary-General Says World Oil Supplies Adequate
- Sec. Snow Pushes Recovery Plan, Cautions on Oil Prices
- Boeing May Drop Internal Trucking Services
- Fed Says Growth ‘Remained Subdued’ Early in 2003
Dynamex Boosts 2Q Net Income
Dynamex Inc. said Wednesday that it had net income of $1.3 million or 12 cents a share in the second quarter, up from a loss of $450,000 or 4 cents per share in the same quarter the year before.A same-day delivery and logistics services company, Dynamex, said that its had sales in the second quarter ended Jan. 31, up 2.9% than during the same period last year, the company reported.
"Although we continue to be impacted by the softness in the economy, our financial performance has improved substantially versus the prior quarterly and year-to-date periods," said Dynamex Chairman and Chief Executive Officer, Rick McClelland. "We are firmly on target to achieve our earnings outlook for the year assuming a relatively stable economy." Transport Topics
Fed Says Growth ‘Remained Subdued’ Early in 2003
U.S. economy growth “remained subdued” in January and February, the Federal Reserve said Wednesday in its regular survey of regional economies.The report, known as the beige book, said that consumer spending remained weak in the first two months of 2003 and that “business spending was very soft, with little change in spending or hiring plans.”
The Fed said that the Federal Reserve Bank of Chicago, using information from all 12 of its district banks, prepared the report.
“Most districts still described manufacturing activity as weak or lackluster, although half of the reports noted at least some degree of improvement,” the report said. Transport Topics
U.S. Services Economy Sees Slower Growth in February
The services sector of the U.S. economy grew slower in February than it did in the previous month, a report by the Institute for Supply Management said Wednesday.The ISM non-manufacturing index fell to 53.9 last month from 54.5 in January, the group said. Readings over 50, even if they are lower than the previous reading, indicate growth.
The index, which measures activity at retail, financial services, construction and other non-manufacturing businesses, including trucking, has been above 50 for 13 straight months.
Analysts told Bloomberg that the report is consistent with an economy that isn’t booming, but still showing signs of growth. Transport Topics
FedEx Freight Expands Next-Day Service
Fed Corp.’s less-than-truckload subsidiary, FedEx Freight, said that it is reducing the shipping times between some of the cities it serves.The company has changed service at several of its terminals to next business day from second business day, FedEx said.
Among the cities that now have next-business-day capabilities are Decatur, Ala.; Dresden, Tenn.; St. Louis; Florence, S.C.; and Hickory, N.C. Those terminals can now serve points in the Mid-Atlantic, Southeast and Midwest with next-business-day delivery service.
FedEx Freight’s Las Vegas terminal has changed its service to destinations in the Pacific Northwest to second business day from third business day.
Based in Memphis, Tenn., FedEx Corp. is ranked No. 2 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.)
OPEC Secretary-General Says World Oil Supplies Adequate
Alvaro Silva, secretary-general of the Organization of Petroleum Exporting Countries, told reporters that the world oil market is “well supplied,” Bloomberg said Wednesday.Silva, who is in Brussels, Belgium, for an energy conference said that it his feeling the world oil markets have enough oil on hand to meet demand, indicating that the cartel may not raise production quotas when it meets next week, Bloomberg said.
Though OPEC may not boost output at its March 11 meeting, Silva reiterated the group’s pledge to boost production on the event of a war, Bloomberg said.
Oil and fuel prices in the United States have been driven to record levels by the threat of a war in Iraq and a general strike in Venezuela that limited output of oil from that country. Also, a severe winter in North America has contributed to the uptick in prices.
Bloomberg said that the price of crude oil rose 41 cents a barrel in afterhours trading on the New York Mercantile Exchange to $36.80 a barrel. Transport Topics
Sec. Snow Pushes Recovery Plan, Cautions on Oil Prices
Treasury Secretary John Snow said that he believes President Bush’s tax cut plan will benefit the U.S. economy and that a war in Iraq would ease some pressure on the economy, Bloomberg reported.Speaking in several different television interviews, Snow said that Bush’s $690 billion tax cut plan will “clearly” help the economy and create jobs, Bloomberg said.
The new Treasury secretary added that a war in Iraq will get the markets refocused on fundamentals, and that would be beneficial to the economy,” Bloomberg said.
Snow added that the higher oil prices are hurting the economy and the best way to soften them is to resolve the geopolitical situation. Currently, Snow said he sees consumers conserving more by buying less fuel and smaller vehicles, Bloomberg reported. Transport Topics
Boeing May Drop Internal Trucking Services
Aircraft maker and defense contractor Boeing Co. may hire an outside company to haul its commercial jet wings and engines, the Seattle Post-Intelligencer said this week.Currently, Boeing employs a private fleet to deliver parts plants in Western Washington, Kansas and other locations, the paper said.
If the company goes through with the move, roughly 500 truckers would be affected, the paper reported. Boeing would likely try to sell its trucking unit if it were to use an outside vendor for its freight-hauling needs, the paper said. Transport Topics
