News Briefs - Oct. 20
The Latest Headlines:
- Price of Crude Oil Rises to Near $55
- Union: Cargo Backlog of California Ports Critical
- Cummins Says Heavy-Duty Truck Engine Sales Rise 119%
- Despite Slower-Than-Expected Volume Growth, SCS' Earnings Rise
- Mullen's Net Income Slips on Higher Costs
- Profits Rise at C.H. Robinson
- Strong Truck Demand Fuels Rush's 3Q Earnings
- DOT Formally Awards UPS, FedEx, Polar New China Flights
- Union: Cargo Backlog of California Ports Critical
Price of Crude Oil Rises to Near $55
The price of crude oil in New York rose as high as $55.20 on Wednesday after the Department of Energy said inventories of distillate fuels declined in the latest week, Bloomberg reported.Crude oil for November delivery on the New York Mercantile Exchange closed the trading session up $1.63 to $54.92 a barrel. It reached a record $55.33 on Monday.
DOE said supplies of distillate fuel, which include heating oil and diesel, fell 1.9 million barrels to 119 million in the week Oct. 15, the lowest since the week ended July 16. Stockpiles of heating oil declined 515,000 barrels to 49.5 million barrels, leaving supplies 11% lower than a year earlier.
Union: Cargo Backlog of California Ports Critical
James Spinosa, president of the International Longshore & Warehouse Union, said at a news conference Wednesday the ports of Los Angeles and Long Beach face a critical backlog of cargo, Bloomberg reported.The ports are the two busiest by volume in the United States and Spinosa said the union wants a 24-hour workday and staging areas that let truck drivers quickly drop off and pick up containers, Bloomberg reported.
The Pacific Maritime Association, which reached an agreement with the union earlier this year to hire 5,000 workers at the ports, was planning a response to the union's statement, Bloomberg reported. Transport Topics
Cummins Says Heavy-Duty Truck Engine Sales Rise 119%
Diesel engine maker Cummins Inc. said Wednesday strong sales across all business segments, led by the North American heavy-duty truck market, helped it report third-quarter profits that exceeded its earlier forecasts.Total revenues rose 34% to $2.19 billion, the company said. Sales volumes in the North American heavy-duty truck market rose 119% from a year earlier, and medium-duty truck engine shipments rose 74%, the company said.
Net income was $116 million or $2.40 per share, compared with $24 million or 60 cents a year earlier. The company said in a statement its previous guidance for the third quarter was $1.30 to $1.40.
Cummins said it was increasing its earnings guidance for the full year to between $7.10 and $7.20 a share, up from previous guidance of $5.55 to $5.75. Transport Topics
Despite Slower-Than-Expected Volume Growth, SCS' Earnings Rise
SCS Transportation Inc. said its third-quarter profits were $6.6 million or 43 cents per share, compared with $5.1 million or 34 cents a year earlier."SCS Transportation continues to achieve significant growth in revenue and earnings, despite some operating challenges and lower-than-expected volume growth," said Bert Trucksess, chairman and president of SCS.
Revenues rose 21% to $256.8 million, the company said in a statement.
SCS said its regional less-than-truckload unit, Saia Motor Freight Line, saw revenues increase 28% to $172.3 million, while LTL and truckload unit Jevic Transportation reported a 10% increase to $84.5 million.
The company said it expected fourth-quarter earnings of 34 cents to 40 cents and full-year profits of $1.30 to $1.36. SCS is ranked No. 24 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Mullen's Net Income Slips on Higher Costs
Transportation firm Mullen Transportation Inc. said Wednesday its net income for the third quarter was C$7 million or C47 cents per share, compared with $7.2 million or 49 cents a year earlier."In terms of the overall economy there appears to be ample evidence that it is expanding at a reasonable pace, which should benefit our trucking segment," said President Steve Lockwood. "However, we are somewhat cautious on a go forward basis due to the uncertainty surrounding the impact that rising fuel costs will have on the overall economy."
Mullen, ranked No. 63 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies, said in a statement it experienced a decrease in profitability because of costs associated with stock-based compensation and increased operating costs in its oilfield services segment.
Mullen said its less-than-truckload and bulk hauling businesses saw an increase in revenue, while its truckload unit reported a small decrease. Transport Topics
Profits Rise at C.H. Robinson
Logistics firm C.H. Robinson Worldwide Inc. said late Tuesday its net income for the third quarter rose to $37.3 million or 43 cents a share, up from $27.2 million or 32 cents a year earlier.Total transportation gross profits increased 30.2% to $150.1 million, the company said in a statement. It said it witnessed growth in both truckload and less-than-truckload transactions.
C.H. Robinson said intermodal gross profits declined 9.8%.
"We're seeing a period of significant volatility in the transportation marketplace, driven by factors such as rapid swings in supply and demand, rising fuel prices, truck capacity shortages, uncertainty in the economy, and globalization of supply chains," said John Wiehoff, chief executive officer. Transport Topics
Strong Truck Demand Fuels Rush's 3Q Earnings
Rush Enterprises Inc., which operates a network of Peterbilt heavy-duty truck dealerships, said its net income for the third quarter was $5.5 million or 34 cents per share, compared with $3.2 million or 21 cents a year earlier.The company said in a statement that its truck segment recorded revenues of $282.2 million, up from $211.2 million in the third quarter of 2003. Parts, service and body shop sales rose 11.9% to $70 million, Rush said.
During the quarter, Rush said it delivered 1,546 new heavy-duty trucks, 458 new medium-duty trucks and 673 used trucks. A year earlier, it said it moved 1,021 new heavy-duty trucks, 266 new medium-duty trucks and 684 used trucks. Transport Topics
DOT Formally Awards UPS, FedEx, Polar New China Flights
The Department of Transportation on Monday formally announced Polar Air Cargo as a new entrant in the U.S.-China market, and said FedEx Corp., UPS Inc. and Northwest Airlines would gain additional flights."These additional routes will help feed the appetite of the growing U.S. economy by providing new avenues for trade with China," said DOT Assistant Secretary for Aviation and International Affairs Karan Bhatia.
UPS Inc. and FedEx Corp. each were awarded an additional 12 weekly flights and Northwest an additional six. Polar Air Cargo was given its first nine weekly flights.
Overall, the nations agreed to allow 195 new weekly flights over six years for the carriers of each country - 111 by all-cargo carriers and 84 by passenger airlines. Transport Topics
