News Briefs - Oct. 22
The Latest Headlines:
- Ohio Navistar Workers Report to Job Without Contract
- Paccar Reports 'Excellent' Revenue, Earnings in 3Q
- Florida East Coast Ends Regional Long-Haul Trucking
- UPS Posts Slight Increase in 3Q Earnings
- Yellow Posts 3Q Loss on SCS Transportation Spinoff
- Ryder Marketing New Engines to Boost Customer Confidence
- As War Tensions Relax, So Do Oil Prices
- Stock Market, Jobless Data Hurt Sept. LEI
- Paccar Reports 'Excellent' Revenue, Earnings in 3Q
Ohio Navistar Workers Report to Job Without Contract
Despite not having a contract, workers at International Truck and Engine Corp.’s Springfield, Ohio plant reported for work Tuesday, the Associated Press reported.The Warrenville, Ill.-based company said over the weekend it would not extend its contract with the United Auto Workers past midnight on Monday, but 1,400 workers at the plant reported to work on Tuesday and resumed work.
Late last week, Navistar idled 900 workers at the plant involved in manufacturing medium-duty trucks. A decision could come on Friday on whether to continue with the shutdown, or resume production.
Paccar Reports 'Excellent' Revenue, Earnings in 3Q
Truck maker Paccar Inc. said that a surge in North American truck orders ahead of an Environmental Protection Agency deadline for new, low emissions diesel engines, translated to “excellent revenues and net income…. compared with the same period a year ago.”North American truck production was 60% higher than a year ago, the Bellevue, Wash.-based company said Tuesday.
For the third quarter ended Sept. 30, the company had earnings of $128.9 million, or $1.11 per share. During the same quarter in 2001, Paccar earned $39.4 million, or 34 cents per share – more than 200% below this year’s results.
Despite the strong quarter, the company doesn’t expect the results to be equally good going forward.
"This resulted from a surge in truck orders in first half 2002. Most of the increase in orders was due to ‘pull-forward purchases,’ as fleets tried to minimize the impact of more costly engines being introduced after Oct. 1,” said David Hovind, president. “Fourth quarter 2002 and first quarter 2003 industry production rates could be unfavorably impacted as a result of the accelerated buying, increased fuel prices and slow growth of general freight."
Paccar is the third largest truck manufacturer in the world, producing trucks under the Kenworth, Peterbilt, DAF and Foden nameplates. Transport Topics
(Click here for the full press release.)
Florida East Coast Ends Regional Long-Haul Trucking
Transportation company Florida East Coast Industries Inc. said Tuesday that it will cease regional long-haul operations at its trucking unit, Florida Express Carriers.Florida East Coast, primarily a railway company, said that the move will allow it to focus on intermodal drayage in areas with 250 miles of its major hubs in Atlanta; Jacksonville, Fla.; and Miami. As the company ends its long-haul service, the St. Augustine, Fla.-based company will dismiss all of its drivers and replace them with independent third-party contractors to provide intermodal drayage.
"Eliminating the stand alone, regional, long-haul trucking operation, retaining the drayage operation and reorganizing Florida East Coast Railway’s intermodal department will provide the railway with a platform to grow our intermodal business in the future while continuing to serve our customers with a highly efficient service," said John D. McPherson, president of Florida East Coast Railway. Transport Topics
(Click here for the full press release.)
UPS Posts Slight Increase in 3Q Earnings
Trucking giant United Parcel Service said Tuesday that its third-quarter earnings were 51 cents per share, 2% higher than the same quarter last year.The Atlanta-based company saw its revenue totaled $7.75 billion – a 4.8% increase from the $7.4 billion it claimed in the third quarter of 2001. The company’s total net income rose $10 million to $578 million.
The company attributed its modest gains in quarterly performance to improvements in it international business and continued improvements in its supply chain business.
"We have managed our business very well in the face of tough conditions," said Scott Davis, UPS's chief financial officer. "In the United States, our service levels are at an all-time high and the company remains well positioned for an economic rebound. And we are very pleased by the gains in our international business."
UPS posted a $4 million operating loss in its international segment last year, but in 2002 it posted a $65 million profit. The company’s non-package business showed gains in operating profit – boosting its numbers to $76 million from
