News Briefs - May 13
The Latest Headlines:
- MAN to Cut More Jobs; Reports 1Q Loss
- IEA Lowers World Oil Demand Estimate
- Trade Deficit Widens to $43.5B in March
- EGL Reports 1Q Profit
- Unlike Railroads, Wyoming Truckers Must Pay Coal Tax
- Airborne Expected to Ask DOT to Review Spinoff
- Mineta Spokesman Becomes Loy Adviser
- IEA Lowers World Oil Demand Estimate
MAN to Cut More Jobs; Reports 1Q Loss
MAN AG, Europe's third-largest maker of heavy trucks, said Tuesday it would cut as many as 800 jobs and expected demand to fall this year, Bloomberg reported.The Germany-based company said its net loss for the first quarter was $20.8 million. Sales rose 5% from a year earlier, the company said.
MAN said it does not expect a rebound in the truck market until 2004.
IEA Lowers World Oil Demand Estimate
The International Energy Agency lowered its estimate for growth in world oil demand by 8%, Bloomberg reported Tuesday.Crude oil is distilled down into diesel fuel and gasoline, making it important to the trucking industry.
Oil consumption is expected to be 1.03 million barrels a day, 90,000 less than expected a month ago, IEA said. It said the outbreak of severe acute respiratory syndrome reduced air travel and fuel demand in Asia.
till, IEA said in its monthly report that oil prices could still rise around the world unless crude inventories increase. Transport Topics
Trade Deficit Widens to $43.5B in March
The U.S. trade deficit widened in March to $43.5 billion from $40.4 billion, the second-highest deficit on record, the Commerce Department reported Tuesday.Although exports went up for the third month in a row in March, imports rose nearly five times faster, led by crude oil, which rose to an all-time monthly high.
The U.S.’ bill for imported crude oil reached $9.1 billion in March.
Economists had predicted the trade imbalance to reach $41 billion, the Associated Press said. Transport Topics
EGL Reports 1Q Profit
EGL Inc. said Tuesday its net income for the first quarter was $2.8 million or 6 cents per share, compared with a net loss of $3.9 million or 8 cents a year ago.The Houston-based company, which operates under the name EGL Eagle Global Logistics, said North American gross revenues increased 4% to $252 million. North American operating income improved by $5.6 million to $327,000.
EGL said it expects earnings to be between 10-14 cents for the second quarter and 65-75 cents for the full fiscal year. Transport Topics
(Click here for the full press release.)
Unlike Railroads, Wyoming Truckers Must Pay Coal Tax
Truckers in Wyoming must pay coal transportation taxes authorized by the 2000 Legislature, even though railroads are exempt because of a federal court ruling, the Associated Press reported.In an order issued April 22, U.S. District Judge Alan Johnson ruled Wyoming's coal transportation tax violates the 1976 Railroad Revitalization and Regulatory Reform Act.
He said that while the coal transportation tax applies to anyone commercially transporting coal in the state, the tax singles out railroads because they are liable for more than 99% of it, AP said.
For the 2001 tax year, 14 companies, mostly motor carriers, paid a combined total of $18,622 in coal transportation taxes, compared to a $5.7 million tax bill the railroads would have incurred, according to AP. Railroads did not pay the tax because they were fighting the law in court.
Michael Walden-Newman, executive director of the Wyoming Taxpayers Association, said he expected the Legislature to repeal the law next year and hoped the state would hold off collecting the tax from the truckers, AP said. Transport Topics
Airborne Expected to Ask DOT to Review Spinoff
Airborne Inc., which agreed to sell its ground-delivery business to Deutsche Post AG, is expected to ask the Department of Transportation to review the spinoff of its airline business, Bloomberg reported Monday.The article said that DOT would need to determine whether ABX Air can continue to engage in air transportation of cargo after the spinoff is completed.
Germany's Deutsche Post in March agreed to buy Airborne's ground operations. Airborne is separating its air business because federal law restricts foreign ownership of U.S. airlines, Bloomberg said.
That sale is not dependent on DOT's approval of ABX Air, the article said. Transport Topics
Mineta Spokesman Becomes Loy Adviser
Chet Lunner, assistant to Secretary of Transportation Norman Y. Mineta for more than two years, was scheduled to start work May 12 with the Transportation Security Administration, as a senior adviser to TSA Administrator James M. Loy on a number of policy issues, said TSA spokesman Brian Turmail.In addition to serving as Mineta’s assistant, Lunner was the department’s director of public affairs. DOT said the deputy director of public affairs, Lenny Alcivar, will take over Lunner’s duties.
A native of Elmira, N.Y., Lunner had also been chief of staff to Rep. Amory Houghton (R-N.Y.), and a national correspondent for Gannett News Service in Washington, D.C. Transport Topics
This story appeared in the May 12 print edition of Transport Topics.
