News Briefs - May 9
The Latest Headlines:
- House Approves $550 Billion Tax-Cut Bill
- Ex-Freightliner CEO Hebe Purchases Seagrave
- Michigan Senate Votes Down Potential Diesel Tax Hike
- OPEC Invites Non-Members to June Meeting
- Economists Scale Back Growth Predictions, Journal Says
- Intermodal Rail Traffic Up 4.9% in April
- Ex-Freightliner CEO Hebe Purchases Seagrave
House Approves $550 Billion Tax-Cut Bill
The U.S. House on Friday approved a bill that would cut taxes by $550 billion, with the Senate expected to vote on a similar but smaller measure next week, the Associated Press reported.After the Senate vote, two chambers would meet with White House officials to negotiate a final package, AP said.
The House bill would lower income tax rates and levies on capital gains and small business investments, AP reported. However, instead of eliminating the taxes shareholders pay on most corporate dividends as President Bush has proposed, it would lower the taxes on such payments to 15%.
On Thursday, the Senate Finance Committee approved a $350 billion measure. Transport Topics
Ex-Freightliner CEO Hebe Purchases Seagrave
James Hebe, the former chief executive officer of Freightliner LLC and American LaFrance, and a group of private investors have purchased Seagrave Fire Apparatus, which manufacturers a full line of commercial pumper and rescue trucks for fire departments across the United States.Hebe was named president of the company.
Hebe began his 28-year career in the trucking industry as a fire truck salesman for American LaFrance in 1971, which Freightliner bought in 1995. Hebe became Freightliner CEO in 1992.
Seagrave is a division of FWD Corp., based in Clintonville, Wis. FWD is a leading manufacturer of multi-drive, heavy-duty vehicles.
Hebe helped Freightliner become the largest truck maker in the United States. The company reached a 36% share of the market. John Wislocki
Michigan Senate Votes Down Potential Diesel Tax Hike
The Michigan Senate approved a $3.2 billion transportation budget on Thursday without raising the tax on diesel fuel, the Associated Press reported.Before the final vote on the budget, the Senate rejected motions to adopt an amendment permitting a raise in the diesel tax.
State Sen. Burton Leland sought to raise the tax by 4 cents to 19 cents a gallon, the same as Michigan's gasoline tax.
Burton said because Michigan has highest truck weights in the country, the extra money is needed for road repair, AP reported.
The bill now goes to the state House. Transport Topics
OPEC Invites Non-Members to June Meeting
OPEC has invited seven non-member producing countries to attend its next meeting scheduled for June 11, Bloomberg reported Friday.The cartel is expected to discuss cutting supply again to bolster prices. Last month, OPEC agreed to lower supplies as of June 1.
Crude oil is distilled down into diesel fuel and gasoline, making it important to the trucking industry.
Angola, Mexico, Norway, Russia, Syria, Egypt and Oman have been invited to the meeting in Doha, Qatar. Several of these countries have previously agreed to cut production or exports in support of OPEC to boost prices, Bloomberg said. Transport Topics
Economists Scale Back Growth Predictions, Journal Says
Although the U.S. economy is predicted to get a lift from the end of the war with Iraq, economists have scaled back their forecasts for the second half of 2003, the Wall Street Journal reported Friday.In addition, growth will remain "moderate" well into 2004, according to a Journal survey of economists.
Because business investment and the labor market have remained weak, economists predicted growth for this year's third and fourth quarters to be 3.5% and 3.7%, respectively, from the 3.6% and 3.9% that they forecasted in April, the article said.
The survey also found economists have high-hopes for a tax-cut package, with most saying the economy could not grow without them.
Economists also noted that falling crude oil price could become another stimulus for consumers and business. Transport Topics
Intermodal Rail Traffic Up 4.9% in April
Intermodal traffic on the nation's railroads rose 4.9% in April compared with April 2002, the Association of American Railroads reported late Thursday.Like trucking, railroading is considered an important economic indicator. Intermodal traffic, which tends to be merchandise rather than bulk commodities, is more directly competitive with trucking.
The AAR said 44,818 trailers and containers were loaded during April, an increase of 4.9%, pushing intermodal traffic through the first four months of the year 7.6% above last year's pace.
For the week ended May 3, intermodal volume totaled 197,424 trailers and containers, up 5.6% from last year. Transport Topics
Accuride Loss Narrows as Truck Market Improves
Accuride Corp., a manufacturer of wheels for medium- and heavy-duty trucks, said Tuesday its first-quarter net loss was $578,000, compared with a loss of $3.8 million in the first quarter of 2002.Sales totaled $88.2 million, up from $77.8 million a year ago. The company said in a release the increase reflects the continuing recovery in the commercial vehicle market.
"The industry has weathered the spike in diesel fuel prices and weak demand in Class 8 trucks following the Oct. 1, 2002, EPA emissions change better than many had expected," said Terry Keating, Accuride's chief executive officer. Transport Topics
(Click here for the full press release.)
