News Briefs - Nov. 13
The Latest Headlines:
- Economy Soft, Not Declining, Greenspan Says
- Smithway Narrows 3Q Loss
- Survey Shows CEOs Sour on Economy
- Crude Oil Price Falls After Iraq Deal
- ArvinMeritor, Mexican Parts Co. Strengthen Partnership
- FAA Says U.S. Needs More Runways
- Daewoo Commercial Plans to Build First Truck in China
- Smithway Narrows 3Q Loss
Economy Soft, Not Declining, Greenspan Says
Federal Reserve Chairman Alan Greenspan told Congress in televised testimony Wednesday that the U.S. economy was going through a “soft patch,” but not heading toward a decline."It is the case that while the economy is softening or stagnant, there is no evidence ... at least up to the moment, that it is accelerating on the downside," Greenspan said. "What we do have is a very large degree of uncertainty."
Trucking is one of many industries that is sensitive to economic changes, and if the economy starts to ramp up, trucking will likely see improvements in its bottom line.
Observers said, according to Reuters, that while his prepared comments echoed the statement by the Federal Reserve Open Market Committee on Nov. 6, Greenspan’s responses to questions were more upbeat and positive. Transport Topic
Smithway Narrows 3Q Loss
Truckload carrier Smithway Motor Xpress Corp. said that in the third quarter of 2002, it posted a net loss of $757,000 – down from the $1.2 million the company declared it lost in the same quarter last year.The company said that its loss per share was 16 cents in the three months ended Sept. 30, down from a 25-cent-per-share loss in the same period in 2001.
The company had revenues of $43.3 million, compared with $48.6 million in the 2001 third quarter.
The Fort Dodge, Iowa-based company also said that its chief operating officer, Donald A. Orr, will be leaving the company by the end of 2002 for family reasons.
Smithway is ranked No. 75 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.)
Survey Shows CEOs Sour on Economy
A survey of 125 corporate officers showed an overall pessimism on the part of business leaders, the Business Roundtable said Tuesday.The survey showed that 61% of members of the Business Roundtable, a panel of chief executive officers from major U.S. corporations, said they plan to cut jobs in 2003, but only 11% expect to hire more employees.
About 20% of CEOs expect to increase their business investment in 2003 and nearly two-thirds of those surveyed said the economy will grow at a rate of less than 2% in 2003.
"Our companies are in the business of creating jobs and contributing to economic growth, but we have grave concerns about our ability to do these things in this fragile economic environment," said John T. Dillon, chairman of the Business Roundtable and CEO of International Paper. "This survey raises serious concerns for America's workers, companies and overall economy." Transport Topics
Crude Oil Price Falls After Iraq Deal
The price of crude oil fell in early trading Wednesday because most observers now believe that Iraq will accept the terms of the United Nations’ resolutions and allow weapons inspectors into the country, Bloomberg reported.Crude oil is distilled down to important motor fuels like diesel and gasoline, and changes in its price are often carried down to consumers of these products.
In electronic trading on the New York Mercantile Exchange, the price of crude oil fell 10 cents to $25.80 a barrel, Bloomberg said. Transport Topics
ArvinMeritor, Mexican Parts Co. Strengthen Partnership
ArvinMeritor Inc. said Tuesday that it has resurrected its partnership with Quimmco S.A. de C.V. to supply medium- and heavy-duty truck parts to Mexican consumers.The partnership, which will be renamed Sistemas Automotrices de Mexico, will be mutually managed by ArvinMeritor and Quimmco, the company said in a release.
"The partnership is very well positioned to become one of Nafta’s most efficient and reliable manufacturers of commercial vehicle axles, brakes and related components for medium- and heavy-duty commercial vehicles," said Jesús L. Barrera, chief executive officer of Quimmco.
The company will manufacture and supply a combined offering of Dirona, Sudisa and Meritor brands of axles, air brakes and drivelines. The venture will play an expanded role in supplying ArvinMeritor’s customers globally.
"We're enhancing a long-term joint venture by further combining ArvinMeritor's marketing position and product technology with Quimmco established manufacturing and operations expertise," said Tom Gosnell, senior vice president of ArvinMeritor. Transport Topics
FAA Says U.S. Needs More Runways
The Federal Aviation Administration said Tuesday that U.S. airports need more runways and better communications with the government to safely handle increased air traffic, the Associated Press reported.Administrator Marion Blakey said that in order to get more planes in the air when the number of travelers returns to pre-9/11 levels, airports need more runways to handle the traffic safely, AP reported.
If there are not more runways, planes may be delayed – holding up air cargo and disrupting supply chains.
Blakey also pointed to new communication and positioning technology as key to increasing safety and efficiency in the airline industry. Transport Topics
Daewoo Commercial Plans to Build First Truck in China
Korean truck maker Daewoo Commercial Vehicle Co. said that it plans to build its first truck in China next year, joining several other truck companies in the market, Bloomberg reported.Daewoo, which separated from the insolvent Daewoo Motor Co. in September, said it hopes to expand its presence in what is Asia’s fastest-growing market.
Currently, General Motors Corp., Volvo AB and several other companies manufacture heavy-duty trucks in China, Bloomberg reported.
Daewoo signed a preliminary agreement with a Chinese manufacturer, Boatou North-Benz Heavy-Duty Truck Co., to build 2,000 trucks at an existing plant next year and more than 50,000 trucks over the next decade, Bloomberg said. Transport Topics
