News Briefs - Oct. 17
The Latest Headlines:
- Morgan Group Leaves Amex
- Philly Fed Index Falls to -13.1
- Cummins Sees Loss Ahead for Fourth Quarter
- Old Dominion Boosts Earnings by 75%
- World Oil Price Falls on Inventory Debate
- Martens Shows Record Revenue, Income Up 14.9%
- Knight Sees 18.7% Jump in Incomes
- Heartland Express Nets $11.1 Million in 3Q
- USA Truck Earnings Up 115.7% in Quarter
- Philly Fed Index Falls to -13.1
Morgan Group Leaves Amex
Bankrupt vehicle hauler Morgan Group was de-listed from the American Stock Exchange Oct. 15.Based in Elkhart, Ind., Morgan sold its division that moves manufactured housing to Bennett Truck Transport in August. At the start of this month it suspended operations of its two remaining divisions because the company could not obtain adequate insurance.
Those divisions, large vehicle and tow-away operations, filed for Chapter 11 bankruptcy protection Oct. 5. Transport Topics
Philly Fed Index Falls to -13.1
Manufacturing in the Mid-Atlantic region of the United States fell in October, the Federal Reserve Bank of Philadelphia reported Thursday.Manufacturing is an important customer of the trucking industry.
The Philly Fed general economic index, which measure manufacturing activity in the region, fell to -13.1 - its second decline in three months.
Economists had expected the index to stay positive after a reading of 2.3 in September, Bloomberg reported. Transport Topics
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Cummins Sees Loss Ahead for Fourth Quarter
Engine manufacturer Cummins Inc. blamed a drop in demand for a fourth-quarter loss it said will bring 2002 earnings below the 62 cents per share estimate of a group polled by Thomson First Call, Bloomberg said.A Cummins spokesman told Bloomberg that trucking companies are cutting back on buying new heavy-duty trucks and power generators.
He said demand would fall because companies bought vehicles made before new emission rules took effect Oct. 1 and did not place orders in the fourth quarter because of concerns that the new engines would cost more and might not last as long.
That means a loss in the fourth quarter, he said, instead of the 11 cents per share profit which had been the average estimate from First Call. Transport Topics
Old Dominion Boosts Earnings by 75%
Old Dominion Freight Line Inc. said Thursday that its third-quarter earnings jumped 75% to 77 cents per share from 44 cents per share during the same quarter last year.The increase was coupled with a jump of 74.7% in net income to $6.4 million and a 16.3% rise in revenues to a record $149.9 million for the three months ended Sept. 30.
"We are very pleased with Old Dominion's financial performance for the third quarter and first nine months of 2002, especially considering the economic environment throughout the year," said Earl E. Congdon, chief executive officer. "We attribute our performance primarily to our disciplined implementation of a long-term growth strategy focused on leveraging our extensive service center network and differentiating Old Dominion through high quality service, new service products, faster transit times and expanded coverage, enabling us to increase our market share."
Old Dominion is ranked No. 35 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.)
World Oil Price Falls on Inventory Debate
Expectations of higher-than-predicted oil inventories have sent the future price of oil down for the second straight day, Bloomberg reported Thursday, citing a mark of $27.56 a barrel for Brent crude on the London International Petroleum Exchange.The price of crude oil on world and domestic markets can be used to predict movement in the price of diesel fuel and gasoline.
The American Petroleum Institute said Tuesday that heating oil inventories have fallen 3.6 million barrels to 124 million barrels. If the Department of Energy report shows a smaller drop, prices will fall, analysts told Bloomberg.
Heating oil is essentially the same product as diesel fuel and when inventories of one are low there is pressure on the other.
However, members of the Organization of Petroleum Exporting Countries said the world has a good oil supply and that a political situation - specifically talk of war with Iraq -- is causing price movements.
About $4 of the current world price of oil comes from Iraq, the Venezuelan oil minister told Bloomberg. Transport Topics
Martens Shows Record Revenue, Income Up 14.9%
Marten Transport Thursday reported net income in the third quarter at $1,864,000, or 43 cents a share, which was 14.9% up from $1,622, 000, or 38 cents per share in the same period of 2001.Revenue, including fuel surcharges, was a record $74.7 million in the third quarter versus $70.8 million last year.
Based in Mondovi, Wis., Martens supplies time- and temperature-sensitive truckload motor carrier services to customers nationwide.
The company is ranked No. 59 in the Transport Topics listing of the 100 largest trucking companies in the United States and Canada. Transport Topics
(Click here for the press release.)
Knight Sees 18.7% Jump in Income
Knight Transportation Inc. said that for the third quarter ended Sept. 30 its net income rose 18.7% to $7.4 million from $6.3 million - pushing its earnings per share to 20 cents from 18 cents.The Phoenix-based truckload carrier, also reported revenues up 14.1% to $72.8 million from $63.8 million.
"We are quite pleased with all aspects of our operations during this third quarter," said Chief Executive Officer Kevin P. Knight. "We believe double-digit revenue growth was very positive in the current environment, especially considering that our truck count was less than expected due to slow tractor deliveries during the first and second quarters."
Knight Transportation is ranked No. 64 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.)
Heartland Express Nets $11.1 Million in 3Q
Truckload carrier Heartland Express Wednesday reported third-quarter net income of $11.1 million, or 22 cents per share, which was a 20.2% increase compared with the $9.2 million, or 18 cents a share earned in the comparable period of 2001.Earnings for the Coralville, Iowa-based company came on revenues of $91.1 million in the third quarter, which was 23.3% higher than the $73.9 million in 2001.
Heartland Express is ranked No. 55 in the Transport Topics listing of the 100 largest trucking companies in the United States and Canada. Transport Topics
(Click here for the press release.)
USA Truck Earnings Up 115.7% in Quarter
Truckload carrier USA Truck Inc. Wednesday posted net income of $1,271,086 for the quarter ended Sept. 30, which was up 115.7% from the $589,287 reported for the comparable period in 2001.Net income per share for the quarter came to 14 cents, compared with 6 cents in 2001.
Net income for the nine months ended Sept. 30 came to $2,075,088 compared with $462,935 in the previous year.
Based in Van Buren, Ark., USA Truck Inc. is ranked No. 62 in the Transport Topics listing of the 100 largest trucking companies in the United States and Canada. Transport Topics
(Click here for the press release.)
