News Briefs - May 15
The Latest Headlines:
- Not Time for Rate Hike, Says Dallas Fed Chief
- Morgan Group Profits, Revenues Down in 1Q
- Fiori Named to Head Pacer Unit
- American LaFrance Headquarters to Move to S.C.
- House Restores Road Funds Bush Had Sought to Cut
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Cannon Express Loss Widens, Cuts Non-Driving Jobs- Spending to Boost U.S. Growth, Panel Says
- Gasoline Prices Decline in California
- Morgan Group Profits, Revenues Down in 1Q
Not Time for Rate Hike, Says Dallas Fed Chief
The president of the Dallas Federal Reserve Bank doesn’t think the time is right for an interest rate increase, Reuters reported Wednesday.A rise in interest rates could have a broad impact on the trucking business.
He said the Fed hopes inflation stays low and “doesn’t force our hands prematurely,” Reuters reported
McTeer also said the current slowdown will be the shortest and mildest recession on record. Transport Topics
Morgan Group Profits, Revenues Down in 1Q
The Morgan Group Inc., one of the largest companies managing the delivery of manufactured homes and commercial vehicles in the U.S., reported a net loss for the first quarter of $2.7 million, or 77 cents per share, compared with a loss of $541,000, or 22 cents per share, last year.The Elkhart, Ind.-based company said that the loss includes a $2.3 million charge for impairment of goodwill. Revenues for the quarter decreased by 31% to $16.3 million, due in large part of a decline in the manufactured housing division.
Manufactured housing shipments were flat compared to year ago, the company said in its release, while recreational vehicle shipments were up 7.8%. Transport Topics
(Click here for the full press release.)
Fiori Named to Head Pacer Unit
Dodd Fiori has been named president of the freight consolidation & handling group of Pacer Global Logistics.PGL, a division of Pacer International, offers wholesale stacktrain services and retail logistics services including trucking, intermodal marketing, freight consolidation, international freight forwarding and supply-chain management services.
Fiori was most recently chief operating officer at NYK North America, a worldwide container operator.
Pacer International is headquartered in Concord, Calif. Transport Topics
(Click herefor the press release.)
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American LaFrance Headquarters to Move to S.C.
American LaFrance Corp., the subsidiary of Freightliner LLC that produces fire and emergency equipment, said Wednesday that it will move its headquarters to North Charleston, S.C., from Cleveland, N.C., by 2003.Freightliner acquired the North Charleston plant in 2000 when it purchased Western Star Trucks Holdings. It had been idled in 2000 as the North American truck market declined.
The move affects about 210 Cleveland-based employees, most of whom will be given the option to relocate. Transport Topics
House Restores Road Funds Bush Had Sought to Cut
The U.S. House of Representatives approved a bill on late Tuesday that will restore at least $4.4 billion in highway spending that President Bush had sought to eliminate, Bloomberg reported.Although road construction can cause traffic delays, trucking companies can save money if roads are kept in better condition.
The 410-5 vote lowers fiscal 2003 Department of Transportation road expenditures 13% to $27.7 billion, but that is a much smaller cut than Bush had pushed for.
A Senate committee has yet to take action on a similar bill, Bloomberg said. Transport Topics
Cannon Express Loss Widens, Cuts Non-Driving Jobs
Truckload carrier Cannon Express reported a net loss for the fiscal third quarter ended March 31 of $2.4 million, or 74 cents per share, compared with $796,000, or 25 cents, in the year-earlier period.The Springdale, Ark.-based company said it laid off about 25% of its non-driving administrative staff last month, and cut other administrative costs.
Revenues for the quarter were $18.5 million, compared with $20.9 million last year. Transport Topics
(Click here for the full press release.)
Spending to Boost U.S. Growth, Panel Says
The National Association for Business Economists said Tuesday that higher-than-expected consumer and government spending mean the economy will grow at a faster pace in 2002 than previously expected, Bloomberg said.Trucking is extremely sensitive to economic conditions and signs of growth are good news for the industry.
The panel of 30 economists now sees the economy expanding by 2.8% for 2002, up from the prediction of 1.5% in February. Although the job market is expected to remain sluggish, the unemployment rate should dip to 5.7% to 6.0% by the end of the year, the panel said.
Also Tuesday, Robert Parry, president of the Federal Reserve Bank of San Francisco, said Tuesday that interest rates will be raised only after an economic expansion really takes hold or there is serious inflationary pressure, Bloomberg reported.
Because there are lingering doubts over the strength and durability of the U.S. economy, the Fed needs to be cautious, Parry said in a speech to the San Francisco Rotary Club. Transport Topics
Gasoline Prices Decline in California
The average gasoline price in Southern California to this point in the month of May marks the first month-to-month decline this year, the Automobile Club of Southern California said Tuesday.Although most commercial trucks run on diesel fuel, a significant portion of the industry uses gasoline-powered engines.
The average price for regular self-serve unleaded gasoline in Southern California, according to the club's most recent survey, is $1.61, down from the April average of $1.65. The average for the entire state is $1.62, also down four cents from the month before. Transport Topics
(Click here for the full press release.)
