News Briefs - Oct. 21
The Latest Headlines:
- UPS Earns $890 Million in 3Q
- Despite Hurricanes, Old Dominion's 3Q Results Improve
- Jobless Claims Decline by 25,000 in Latest Week
- Paccar's Earnings Surge in 3Q
- Engine Sales Lead to Strong Quarter at Caterpillar
- Revenues, Profits Rise at USA Truck
- Marten Earns 33 Cents Per Share in 3Q
- MTAC Petition to Bush, Kerry Asks for Plan on Fuel Prices
- Earnings Rise at Norfolk Southern
- Transportation Revenue Jumps 5.6% at Hub Group
- Sales Rise, but Profits Fall at Dana
- Despite Hurricanes, Old Dominion's 3Q Results Improve
UPS Earns $890 Million in 3Q
UPS Inc. said Thursday its net income for the third quarter was $890 million or 78 cents a share, compared with $739 million or 65 cents a year earlier.Total revenues rose 7.7% to $8.95 billion, UPS said in a release.
UPS said worldwide average daily volume increased by 445,000 packages per day to 13.7 million, a 3.4% rise. U.S. package revenue, which UPS said was hurt by the hurricanes, still increased 4.4% to $6.49 billion.
UPS is ranked No. 1 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Despite Hurricanes, Old Dominion's 3Q Results Improve
Less-than-truckload carrier Old Dominion Freight Line Inc. said it earned $12.2 million or 50 cents per share in the third quarter, up from $9.1 million or 38 cents a year earlier.Revenue rose 21.6% to $215 million, the company said in a statement.
"We achieved these results in spite of the disruption caused by hurricanes that hit our southeastern markets, lowering our earnings by approximately 2 cents per diluted share," said Earl Congdon, chairman and chief executive officer.
Old Dominion is ranked No. 27 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Jobless Claims Decline by 25,000 in Latest Week
The number of Americans filing initial claims for jobless benefits declined by 25,000 by 329,000 in the week ended Oct. 16, the lowest level since early September, the Labor Department said Thursday.Claims have averaged 345,000 so far this year compared with 402,000 in 2003. The four-week moving average, a less volatile measure, fell to 348,250 from 353,750.
The number of people continuing to collect state jobless benefits fell to 2.798 million in the week that ended Oct. 9 from 2.806 million the week before. Transport Topics
Paccar's Earnings Surge in 3Q
Truck maker Paccar Inc. said Thursday its third-quarter profits were $246.7 million or $1.41 per share, compared with $132.5 million or 75 cents a year earlier.Net sales and financial services revenues were $2.92 billion, a 42% increase over the third quarter of 2003.
"Solid [gross domestic product] growth in North America and a robust commercial vehicle replacement market . . . contributed to Paccar's excellent earnings," said Mark Pigott, chairman and chief executive officer.
"Industry heavy-duty truck retail sales for the U.S. and Canada during 2004 will be 225,000-235,000 units, an increase of 35% compared to industry sales in 2003," said Tom Plimpton, president. "Record freight volume, fleet expansion and improved carrier profitability are driving new truck orders." Transport Topics
Engine Sales Lead to Strong Quarter at Caterpillar
Caterpillar Inc. said Thursday its earnings in the third quarter were $498 million or $1.41 per share on revenues of $7.65 billion, a 38% increase.The company said it earned $222 million or 62 cents per share a year earlier.
In the most recent quarter, engines sales were $2.48 billion, a 33% increase. Engine sales in North America rose 36% and was heavily impacted by a 57% increase in sales of on-highway truck engines, Caterpillar said.
"Our entire value chain is responding to the strongest recovery we've ever seen across the broad spectrum of markets we serve. We will deliver record sales and profit this year," said Chairman and Chief Executive Officer Jim Owens.
Caterpillar also said 2004 sales and revenues would be up about 30% and profit per share to be up 80% to 85% compared with 2003. Transport Topics
Revenues, Profits Rise at USA Truck
Truckload carrier USA Truck Inc. said Thursday its net income for the third quarter was $2 million or 22 cents per share, compared with $1.5 million or 16 cents a year earlier.Operating revenues, before fuel surcharge, were $85.4 million, an increase of 15.6%, the company said.
It also said its board authorized it to repurchase up to 500,000 shares of its outstanding common stock over a three-year period ending October 19, 2007.
USA Truck is ranked No. 64 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Marten Earns 33 Cents Per Share in 3Q
Refrigerated truckload carrier Marten Transport Ltd. said late Wednesday its net income for the third quarter was $4.8 million or 33 cents per share, compared with $3.4 million or 29 cents a year earlier.Operating revenue increased 14% to $97.9 million, the company said in a statement.
Marten Transport is ranked No. 55 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
MTAC Petition to Bush, Kerry Asks for Plan on Fuel Prices
Many members of the Motor Transport Association of Connecticut have sent a petition to President Bush and Sen. Kerry asking them to propose strategies to deal with the high cost of diesel fuel, gasoline and heating oil.The petition said the rising cost of motor fuels would have a "dramatic and immediate impact" on household budgets.
"The increased price of diesel fuel will be reflected in the cost of all food, fuel, raw materials, consumer products, construction supplies, cars and every other item which is distributed by trucks, railroad or ships," the petition said.
MTAC President Michael Riley told TT that diesel prices were running as high as $2.399 per gallon in the state, well above the Department of Energy's national average of $2.18.
High fuel prices are "bleeding some companies to death," Riley said. Transport Topics
Earnings Rise at Norfolk Southern
Freight railroad Norfolk Southern Corp. said its net income for the third quarter was $288 million or 72 cents per share, compared with $137 million or 35 cents a year earlier.The company said revenues were a record $1.9 billion, up 16% from the third quarter of 2003.
Intermodal revenues grew 28% to a record $404 million on increased traffic volumes, the company said. Transport Topics
Transportation Revenue Jumps 5.6% at Hub Group
Logistics provider Hub Group Inc. said its third-quarter profits were $3.6 million or 34 cents per share, compared with $2.9 million or 37 cents a year earlier.The company's per-share earnings were lower because of higher average diluted shares outstanding in the 2004 quarter.
Transportation-related revenue, including intermodal, truckload brokerage and logistics business units, increased 5.6% to $350.1 million. Truckload brokerage revenue alone increased 4.5% to $56.1 million. Transport Topics
Sales Rise, but Profits Fall at Dana
Vehicle parts maker Dana Corp. said Wednesday its net income for the third quarter was $40 million or 27 cents per share on sales of $2.1 billion.That compared with earnings of $61 million or 41 cents on sales of $1.9 billion a year earlier, the company said in a statement.
The company said it took a $20 million charge from the sale of its automotive aftermarket businesses, but also had several gains including the adjustment of its effective tax rate.
Setting aside taxes, it was an otherwise disappointing quarter, largely because of the increasing cost of raw materials," said Dana Chairman and Chief Executive Officer Mike Burns. "The increase in steel costs alone totaled $22 million after tax, net of recoveries from our customers.
"We had expected that the bottom-line impact of the commodity price increases would be offset by the stronger performance in our heavy-vehicle business and continuing cost-reduction efforts. But, the magnitude of the raw material increases, coupled with a decrease in light-vehicle production volumes, hit us harder than expected." Transport Topics
