News Briefs - May 15
The Latest Headlines:
- Navistar Reports Fiscal 2Q Loss, but Expects 3Q Profit
- Industrial Production Drops 0.5% in April
- US 1 Reports Small 1Q Profit
- Illinois Trucking Owner Arrested for Bribery
- ArvinMeritor Says Eaton’s Rehearing Request Denied
- Industrial Production Drops 0.5% in April
Navistar Reports Fiscal 2Q Loss, but Expects 3Q Profit
Truck maker Navistar International Corp. reported a net loss for its fiscal second quarter of $12 million or 18 cents per share, compared with a loss of $2 million or 4 cents per share a year earlier."The economic environment during the first half of the company's fiscal year was difficult and uncertain, but we continue to expect an improved market in the second half of the year," said Daniel C. Ustian, Navistar chief executive officer.
Ustian said he expected a profit for the third quarter of 20-30 cents on increased truck shipments.
Sales and revenues from manufacturing and financial services operations for the second quarter of 2003 totaled $1.9 billion, compared with the $1.7 billion reported in the second quarter of 2002. Transport Topics
(Click here for the full press release.)
Industrial Production Drops 0.5% in April
U.S. industrial production dropped 0.5% in April and factory capacity in use fell to a two-decade low, the Federal Reserve reported Thursday.The manufacturing sector is one of trucking’s largest and most important customers.
Production at factories, mines, and utilities declined by the same 0.5% in March, the Fed said. Analysts noted the war in Iraq and rising energy prices lowered demand for products, Bloomberg reported.
The proportion of industrial capacity in use fell to 74.4%, from 74.8%. It's the lowest since June 1983, when it was 74%.
Economists expected a 0.4% drop in industrial production, Bloomberg said.
Work at factories, which accounts for almost 90% of industrial production, fell 0.6% last month after falling only 0.1% in March. Transport Topics
US 1 Reports Small Profit
US 1 Industries Inc., which provides financial resources, insurance and information technology to the trucking and logistics industries, said Thursday its net income for the first quarter was $487,000 or 4 cents per share, compared with a net loss of $20,000 or less than 1 cent per share a year ago.Revenue increased 36% to $28.6 million. This was the 18th straight quarter revenue has been greater than the comparable period.
US 1 Industries is based in Gary, Ind. Transport Topics
(Click here for the full press release.)
Illinois Trucking Owner Arrested for Bribery
Hei Yeng Kwok, owner of Chicago-based trucking firm K&W Trading Co., was arrested Tuesday on federal bribery charges, the Department of Transportation's Office of Inspector General said.Kwok is accused of attempting to pay a $2,000 bribe, and later a $4,000 bribe, to a federal official in exchange for improving an unsatisfactory rating on the company’s safety compliance review.
A spokesman for K&W Trading told Transport Topics the company had no comment on the arrest.
DOT said the company was ordered to cease all interstate trucking operations on May 7.
The bribery charge was part of Operation Safe Road, which began as an investigation of bribes for driver’s licenses. It found widespread corruption while former Illinois Gov. George Ryan was secretary of state, the Associated Press reported. Ryan has not been accused of wrongdoing.
Kwok was released after agreeing to post $25,000 bail, according to AP.
ribery of a public official carries a maximum penalty of 15 years in prison and a $250,000 fine, DOT said. Transport Topics
ArvinMeritor Says Eaton’s Rehearing Request Denied
Vehicle parts maker ArvinMeritor Inc. said Wednesday that the U.S. Court of Appeals for the Federal Circuit had denied Eaton Corp.'s petition for a rehearing in its patent infringement lawsuit.On March 27, the court overturned a $2.9 million award and jury finding that Arvin had infringed on a patent owned by its biggest rival, Eaton. It also stopped an order blocking Arvin from selling the “Engine Synchro Shift” or ESS transmission system.
The appeals court said the trial judge incorrectly interpreted the patent. Transport Topics
Click here for the full press release.)
