News Briefs - Oct. 24
The Latest Headlines:
- Landair Shows Slightly Lower 3Q Earnings
- Initial Jobless Claims Fall by 25,000
- Overnite Reports Best Quarter Since '94
- Volvo Posts 3Q Profit, Helped by U.S. Sales
- Crude Oil Prices Rise on Middle East Concerns
- Celadon Posts Improved 1Q Earnings
- UPS Pays $18 Million in Suit
- Daimler Trebles 3Q Earnings
- Boyd Bros. Reports 115% Jump in Net Income
- Mullen Transportation Reports Decline in 3Q Earnings
- Initial Jobless Claims Fall by 25,000
Landair Shows Slightly Lower 3Q Earnings
Landair Corp. reported that its third-quarter net income fell to $1.3 million from the $1.6 million in the same quarter last year.The Greeneville, Tenn.-based company claimed earnings per share of 18 cents in the most recent quarter.
Landair's revenues fell to $25.5 million from the $25.8 million the company reported last year.
(Click here for the full press release.)
Initial Jobless Claims Fall by 25,000
The number of people applying for unemployment benefits for the first time fell by 25,000 last week, the Department of Labor reported Thursday.Positive reports on the employment market often bolster consumer confidence and can help trucking.
The drop was larger than expected by analysts, Bloomberg said. The size of the drop may be due, Bloomberg reported, to the later arrival of the Columbus Day holiday, which may have skewed the department's seasonal adjustments.
The drop set initial claims at 389,000, below October's average of 397,300, Labor said.
The four-week moving average, a device used to take the volatility out of the week-to-week reports, fell to 404,000 from 409,500 last week. Transport Topics
Overnite Reports Best Quarter Since '94
Union Pacific's trucking unit, Overnite Holding Inc., had its best quarter since the second quarter of 1994, the company said Thursday.During the third quarter, ended Sept. 30, Overnite Holding, through its subsidiaries Overnite Transportation Co. and Motor Cargo Industries, had net income of $18.6 million, a 21% improvement from the same period last year, on revenues of $349.6 million - a 7% jump.
"While the economy remains weak, the demise of a large less-than-truckload competitor provided incremental tonnage in September and supported firming prices," said Overnite Holding Chief Executive Officer Leo Suggs.
For the nine months ended Sept. 30, the company's net income has risen 109% to $75.7 million from the $36.3 million the company reported for the same period last year.
Based in Richmond, Va., Overnite is ranked No. 20 on the 2002 Transport Topics 100 listing of the largest trucking companies in the United States. Transport Topics
(Click here for the full press release.)
Volvo Posts 3Q Profit, Helped by U.S. Sales
Volvo AB said Thursday that it posted a profit in the third quarter, reversing a loss in the same quarter last year, Bloomberg reported.The turnaround, the company said, was due in large part to strong U.S. sales ahead of the Oct. 1 deadline for new reduced emissions engines.
During the quarter, Volvo earned $45 million, or 10 cents per share. Last year, for the same three-month period ended Sept. 30, the Swedish truck maker lost $164.3 million, or 38 cents per share.
North American truck deliveries rose 54% during the quarter to 11,043, the company said.
Bloomberg reported that several analysts feel the company will see a fall off in sales and profits during the fourth quarter as demand for trucks, particularly if the United States relaxes. Transport Topics
Crude Oil Prices Rise on Middle East Concerns
Traders, uneasy about the United States' intensified efforts to get a strong resolution from the United Nations concerning Iraq, helped drive the price of crude oil higher in trading Wednesday, Bloomberg said.Crude oil is distilled down into important motor fuels like gasoline and diesel. Increases in the price of crude are often passed along to consumers at the pump.
In the last few days, Bloomberg reported, that the U.S. has stepped up pressure on countries like Russia to get a stronger resolution against Iraq out of the U.N. Security Council. This has caused observers to speculate that the U.S. is getting impatient and may act alone on the matter.
In electronic trading on the New York Mercantile Exchange, crude oil prices rose 27 cents, or about 1%, to $28.45 a barrel. Transport Topics
Celadon Posts Improved 1Q Earnings
Celdaon Group Inc. said Wednesday that its first-quarter earnings were 18 cents per share, an improvement of 16 cents from the same period last year.The company had net income of $1.4 million during the quarter ended Sept. 30, well above the $142,000 the company reported for the same three months in 2001.
The company's revenue for the first quarter was $93.6 million, up 13% from the $82.9 million the company claimed in the September 2001 quarter.
"Improved yield management increased revenue per mile and the continued impact of our expense reduction efforts offset the effect of the softness in the economy," said Stephen Russell, chief executive officer. "The percent of our business dependent on new car production also dropped measurably, with a positive shift to consumer non-durables."
Celadon's online buying component, TruckersB2B, saw its revenues rise 53% over last year to $1.9 million and had an income of $321,000, up from $111,000.
Based in Indianapolis, Celadon is ranked No. 48 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.)
UPS Pays $18 Million in Suit
United Parcel Service Inc. paid $18 million in a suit over California's wage and hour laws, the Los Angeles Time reported.The settlement covers about 6,000 part-time supervisors, the Times story said, The group was scheduled to work 25 extra hours and received no additional pay for the time.
UPS said it changed its pay practices in California last month to require supervisors to record the time they start and end each shift. Transport Topics
Daimler Trebles 3Q Earnings
Higher-than-expected sales at Chrysler in the United States joined with cost cuts to result in a trebling of DaimlerChrysler AG's worldwide earnings in the third quarter, Bloomberg reported.DaimlerChrysler is the parent company for Freightliner Corp., which manufactures Freightliner, Sterling and Western Star trucks in the U.S.
For DaimlerChrysler, net income rose to $871 million, or 88 cents a share, from $276 million or 28 cents a share. Transport Topics
Boyd Bros. Reports 115% Jump in Net Income
Flatbed trucking company Boyd Bros. Transportation Inc. said Thursday that its net income rose 115% in the third quarter to $495,074 from $230,210 in the same timeframe last year.The company saw its earnings per share rise 125% -- to 18 cents a share from the 8 cents the company reported in the same quarter during 2001.
"We are very pleased to report another quarter of strong profitability, continuing the favorable trends we saw last quarter," Gail B. Cooper, chief executive officer, said in a release. "Both of our divisions, Boyd Bros. and WTI, achieved higher sales and operating income in the third quarter compared with the same period last year."
Boyd Bros. is based in Clayton, Ala. Transport Topics
(Click here for the full press release.)
Mullen Transportation Reports Decline in 3Q Earnings
Canadian trucking company Mullen Transportation Inc. said Wednesday that it had earnings of 15 cents per share during the third quarter, compared with the 28 cents per share the firm reported in same period last year.Based in Aldersyde, Alberta, Mullen operates several trucking and oil field services. The trucking segment of the company saw its third-quarter revenue fall 14% from last year.
"This is a very frustrating market. On one hand the fundamentals of our business have never been better: Our on-time deliveries is at record levels; our safety performance is outstanding and we have a strong balance sheet,” Murray Mullen, president of Mullen, said in a release. “Unfortunately, our financial performance is below expectations in spite of the growth in the economy. From our perspective, however, the growth has more to do with consumer spending than capital investment and since our customer base is primarily associated with the latter, the demand for our services has been impacted.”
Mullen is ranked No. 70 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.)
