News Briefs - Oct. 16
The Latest Headlines:
- Caterpillar Posts Flat 3Q Earnings in 2002
- Reviewing Financial Statements, Atlas Air Says
- Oil Prices Stable As Inventories Rebound
- Cannon Sees Loss Widen in Fiscal 4Q; Blames Driver Shortage
- Covenant Says Earnings Up 400% During 'Roller Coaster' Quarter
- Delphi Reports 3Q Earnings up 64%
- Werner Reports Fourth Straight Quarterly Gain
- Reviewing Financial Statements, Atlas Air Says
Caterpillar Posts Flat 3Q Earnings in 2002
Engine manufacturer Caterpillar Inc, said it earned 61 cents per share in the third quarter of 2002 - slightly higher than the 59 cents per diluted share the company earned in the same quarter during 2001.Sales and revenues rose $19 million during the quarter ended Sept. 30 versus the same period last year, but machinery and engine sales were about the same. Large increases in Asian sales and modest gains in Europe, Africa and the Middle East offset lower sales in North and Latin America.
Going forward, the Peoria, Ill.-based company expects overall revenue for 2002 to be down about 15% from last year, but "uncertain near-term political and economic conditions make the remainder of the year more difficult than normal to predict."
(Click here for the full press release.)
Reviewing Financial Statements, Atlas Air Says
Air cargo carrier Atlas Air Worldwide Holdings Inc. said Wednesday that it is beginning a re-audit of its financial results for fiscal years 2000 and 2001.The parent company of Atlas Air Inc. and Polar Air Cargo Inc., the Purchase, N.Y.-based company said that it has been reviewing its earnings statements since it replaced Arthur Andersen with Ernst & Young as its independent auditor.
The reviews have shown that there might be a need to restate some of the company's results, the company said.
The company expects the audit to be finished early in 2003 and for a re-release of financial statements from various quarters in 2000 and 2001 sometime afterward. Transport Topics
(Click here for the full press release.)
Oil Prices Stable As Inventories Rebound
Crude oil prices were little changed after an industry report showed U.S. inventories rose from 26-year lows, Bloomberg reported.Motor fuels like diesel and gasoline are distilled from crude oil making the price of the commodity important to the trucking industry.
Supplies rose, according to the American Petroleum Institute after refineries and terminals reopened after two weeks of weather-related disruptions, Bloomberg said.
In electronic trading on the New York Mercantile Exchange, the price of crude rose 4 cents to $29.76 a barrel. Transport Topics
Cannon Sees Loss Widen in Fiscal 4Q; Blames Driver Shortage
Cannon Express Inc. said that its fiscal fourth quarter loss widened in 2002 to $5.3 million, or $1.64 per share, from a loss of $4.19 million, or $1.31 a share, in the same quarter of 2001.Revenue at Cannon fell in the fourth quarter to $19.05 million from $21.87 million from the same period in 2001.
"The company's revenue and net income declined due to a shortage of qualified drivers to operate its trucks during the quarter and the year ending June 30, 2002, and to a soft market for the Company's services," the company said in a release. Transport Topics
(Click here for the full press release.)
Covenant Says Earnings Up 400% During 'Roller Coaster' Quarter
Covenant Transport Inc. said that its third quarter earnings jumped to 25 cents a share from 6 cents per share during the same three-month period last year, which was an increase of about 400%.The company's net income rose 327% to $3.6 million from the $845,000 the company reported during 2001.
"Third quarter freight demand was like a roller coaster, with a very strong July being followed by a weak August, a modest rebound in mid-September, and the shut down at the West Coast ports to end the quarter," said Chief Executive Officer David R. Parker. "Despite the fluctuations, Covenant increased revenue per loaded mile 1% and miles per tractor 0.5% versus the same quarter a year ago."
The company said its freight revenue - discounting fuel and other surcharges - fell 2% to $153.3 million from $138.1 million during the same quarter last year.
Based in Chattanooga, Tenn. Covenant is ranked No. 32 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.)
Delphi Reports 3Q Earnings up 64%
Third-quarter earnings at parts manufacturer Delphi Corp. were 64% above earnings for the same period in the preceding year, the company reported Wednesday, crediting restructured plan savings, material cost reductions and improved margins on new business, which lowered the break-even point.Net earnings for the quarter totaled $54 million, based on revenues of $6.4 billion, compared with $33 million, based on revenues of $6.2 billion in the third quarter of 2001.
Another factor in the improved earnings, Delphi said, were strong improvements in sales to companies other than General Motors, which is Delphi's biggest customer.
Non-GM sales, the company said, were 19% above those of last year. Transport Topics
(Click here for the press release.)
Werner Reports Fourth Straight Quarterly Gain
Truckload carrier Werner Enterprises Inc. said Tuesday that earnings per share rose 33% to 26 cents in the third quarter from 19 cents per share during the previous year, marking the fourth consequtive quarter to see earnings improve. "Continued stronger freight demand from our customers helped Werner Enterprises post its fourth consecutive quarter of improved operating revenues, improved operating margin and improved earnings," said Chief Executive Officer Clarence Werner. "Daily freight volumes during third quarter were consistently higher than the weaker volumes of a year ago. We improved our rate per mile by three cents a mile, or 2.5%, compared to the same quarter a year ago. A better economy and tightening truck capacity contributed to the improvement.”
The Omaha, Neb.-based company attributed the tightening of truck capacity to a combination of trucking company failures and an unwillingness on the part of the survivors to expand their fleets given the uncertainty surrounding the new Oct. 1 engines.
Werner said that it would make its decisions about truck purchases in 2003 after further testing of the EGR engine built by Detroit Diesel and Caterpillar’s ACERT engine.
Werner is ranked No. 19 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.)
