News Briefs - Oct. 15
The Latest Headlines:
- Price of Oil Hits $55, but Greenspan Downplays Impact
- Consumer Sentiment Index Tumbles in October
- Quarterly Profits Rise at J.B. Hunt
- Werner Reports Higher Profits Despite Fuel Costs
- U.S. Xpress Gets $200 Million in New Financing
- N.Y. Factory Index Declines to 17.4 in October
- Producer Prices Rise 0.1% in Sept.; Core Rates Jumps 0.3%
- AAR: Rail Intermodal Loadings Post Second-Highest Total
- U.S. to Appeal Nafta Panel Lumber Decision
- AAR: Rail Intermodal Loadings Post Second-Highest Total
- New Hampshire to Add Tollbooths on I-95
- Business Inventories Rise 0.7%
- Consumer Sentiment Index Tumbles in October
Price of Oil Hits $55, but Greenspan Downplays Impact
Federal Reserve Chairman Alan Greenspan said Friday the recent surge in energy prices would have far less of an impact on the global economy than during the oil shocks of the 1970s, news services reported.Speaking to the National Italian American Foundation, he said the economy would adjust to the recent surge in prices, by boosting energy exploration and production and by increasing fuel efficiency, the Associated Press reported.
The price of crude oil on the New York Mercantile Exchange closed at $54.93 a barrel on Friday after rising to a record $55 during the trading session, Bloomberg reported.
Consumer Sentiment Index Tumbles in October
The University of Michigan said Friday its preliminary consumer sentiment index for October fell to 87.5, the lowest level since April 2003, from September's final reading of 94.2.The consumer expectations gauge dropped to 79.6 from 88, while the current conditions component slipped to 99.6 from the final September reading of 103.7.
Consumer sentiment is considered a barometer in consumer spending, which accounts for two-thirds of the U.S. economy. Higher fuel prices, sluggish job growth and rising interest rates were weighing on consumer attitudes, Reuters reported. Transport Topics
Quarterly Profits Rise at J.B. Hunt
J.B. Hunt Transport Services Inc. said Friday its third-quarter net income was $47.9 million or 57 cents per share, compared with $32.7 million or 40 cents a year earlier.Hunt said total operating revenue was $719 million, up from $622 million in the third quarter of 2003.
Truck segment revenue, excluding fuel surcharges, rose 8%, and intermodal segment revenue jumped 14%, the company said.
J.B. Hunt is ranked No. 9 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Werner Reports Higher Profits Despite Fuel Costs
Truckload carrier Werner Enterprises Inc. said late Thursday its net income for the third quarter was $24.3 million or 30 cents per share, compared with $20.5 million or 25 cents a year earlier. Operating revenues increased 16% to $425.4 million.The company said its profits were negatively impacted by 3 cents per share compared with the third quarter of 2003 due to high diesel fuel prices.
"Our freight volumes and service performance are at a high level as we move into the seasonally strongest period of the year," said Chairman and Chief Executive Officer Clarence Werner.
Werner is ranked No. 18 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
U.S. Xpress Gets $200 Million in New Financing
Truckload carrier U.S. Xpress Enterprises Inc. said late Thursday it closed two separate $100 million credit facilities.U.S. Xpress said in a statement they would reduce borrowing costs and expand its liquidity. Proceeds would be used to repay existing debt.
U.S. Xpress is ranked No. 21 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
N.Y. Factory Index Declines to 17.4 in October
The New York Fed said Friday that its regional index of manufacturing activity declined to 17.4 in October from 27.3 the month before.Readings above zero indicate expansion. The index has shown growth since April 2003 and reached a record of 42.1 in February.
The new orders index fell to 21.2 from 26.2, while the index of unfilled orders fell to minus 2.7, down from 11.7 the month before, the Fed said.
Economists said manufacturing activity was slowing a bit as oil and other energy prices continued to climb, Bloomberg reported. The Empire State manufacturing survey is compiled by the Buffalo branch of the N.Y. Fed. Transport Topics
Producer Prices Rise 0.1% in Sept.; Core Rates Jumps 0.3%
Producer prices rose 0.1% in September, while the core rate, which excludes food and energy, rose 0.3%, the Labor Department reported Friday.The increase in the core rate reflected higher costs of motor vehicles and business equipment. It also suggested manufacturers were having limited success in passing on a rise in raw materials costs since last year, Bloomberg reported.
An increase in the producer price index could indicate strong demand for goods, which would mean fewer shipments for trucking companies. However, if inflation begins to accelerate too quickly, it could also hamper the economic recovery.
Core wholesale prices rose 1.9% from a year earlier, the biggest 12-month increase since January 2001, Labor said.
Energy prices fell 0.9% in September following a rise of 0.2% increase in August. Prices of raw materials fell 4.2%. Transport Topics
AAR: Rail Intermodal Loadings Post Second-Highest Total
The Association of American Railroads said Thursday the number of intermodal loadings on U.S. railroads totaled 230,237 trailers or containers in the week ended Oct. 9, up 11.4% from the same week a year earlier.The total was the second highest on record, AAR said, trailing only the week ended September 25 when railroads moved 231,025 trailers or containers.
Container volume was up 11.4% in the latest week, while trailer volume gained 9.3%.
Through the first 40 weeks of the year, intermodal volume was 8.4 million trailers or containers, up 9.6% percent from a year earlier, AAR said. Transport Topics
U.S. to Appeal Nafta Panel Lumber Decision
The Bush administration said Wednesday it would appeal a decision by a North American Free Trade Agreement panel that imports of Canadian softwood lumber pose no threat to U.S. companies, news services reported.The panel previously ruled the United States had failed to justify placing tariffs averaging 27% on Canadian lumber since 2002, and ordered them rescinded. Softwood lumber includes easy-to-saw pine, spruce and other wood used to build homes.
A spokeswoman for U.S. Trade Representative Robert Zoellick said U.S. officials believe the NAFTA panel "seriously misapplied the standard of review," the Associated Press reported.
The Commerce Department in June proposed cutting the tariffs in half, but there has not been a final decision, AP said. Transport Topics
New Hampshire to Add Tollbooths on I-95
New Hampshire officials approved a plan to spend more than $6 million to add tollbooths in the city of Hampton at the junction of Route 101 and Interstate 95 in the southeast corner of the state, the Associated Press reported.Gov. Craig Benson and the Executive Council approved the plan, which would add one tollbooth southbound and two tollbooths northbound — bringing the total number of booths at the Hampton Toll Plaza to eight, AP said.
State transportation officials said the improvements would ease congestion at the toll plaza on I-95. Work should be completed by next fall. Transport Topics
Business Inventories Rise 0.7%
Business inventories rose 0.7% in August, the 12th straight monthly increase, the Commerce Department reported Friday.The rise followed a gain of 1.0% in July that was larger than reported last month. August inventories were valued at
1.26 trillion.
Commerce also said business sales increased 0.7% in August after rising 0.9% in July.
The inventory-sales ratio, a measure of the time stockpiles will last at the current pace of demand, fell to 1.31 months, near the record low of 1.30 months from March through May.
Inventories at U.S. retailers rose 0.7% to $478.4 billion. Motor vehicle and parts inventories rose 0.9%, Commerce said. Transport Topics
