News Briefs - Sept. 16
The Latest Headlines:
- O'Neill Sees 3.5% Growth Ahead
- OPEC Seen Maintaining Quota Level
- Gasoline Price Steady at $1.45, Lundberg Says
- Forward's 3Q Earnings Seen Short of Analysts' Expectations
- OPEC Seen Maintaining Quota Level
O'Neill Sees 3.5% Growth Ahead
The road to economic recovery may be bumpy, but Treasury Secretary Paul O'Neill has called it the right road, Bloomberg reported Monday.In remarks prepared for delivery to business leaders in Portland, Me., O'Neill said low interest rates will boost sales of houses and cars, while companies spend more on equipment and software.
O'Neill's remarks said he is confident annual growth by the end of the year will reach 3% to 3.5%, Bloomberg reported. Transport Topics
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OPEC Seen Maintaining Quota Level
Venezuela's oil minister said Monday the Organization of Petroleum Exporting Countries will not boost output quotas at its meeting this week in Japan, Bloomberg reported.The price of diesel fuel fluctuates with the price of crude oil.
Rafael Ramirez said there is some disagreement among members of OPEC about quotas, but he said the current oil price is not the reality and there has not been a large increase in demand, Bloomberg said.
On Monday morning, the price of crude oil in New York was $29.64 per barrel, well above OPEC's target range of $22 to $27. Transport Topics
Gasoline Price Steady at $1.45, Lundberg Says
An industry survey shows the national average price of gasoline has changed little over the past five months, the Associated Press reported Sunday.Factoring in all grades and prices, analyst Trilby Lundberg told AP, the average price is about $1.45 a gallon, down only one cent per gallon from early April.
This year's consistency is in contrast to the picture in 2001, when the price climbed from $1.54 a gallon in early April to $1.76 in mid-May before falling to $1.51 in late August.
A similar pattern of volatility was seen in 2000, AP said.
Lundberg, who surveys 8,000 service stations nationwide, told AP the flat prices are due to stability in crude oil prices and consistent production at U.S. refineries. Transport Topics
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Forward's 3Q Earnings Seen Short of Analysts' Expectations
Forward Air Corp., a contractor to the air cargo industry, said Monday it expects third-quarter earnings to be between 20 cents and 22 cents per share. Although this is at least 5% above profits in the same quarter of 2001, Bloomberg said analysts were expecting 26 cents per share.The Greeneville, Tenn.-based company also said in a release operating revenue should rise between 3% and 5% over the same quarter of 2001.
"The company's anticipated revenue and earnings results for the third quarter of 2002 are in line with our expectations," said Bruce Campbell, Forward president and chief operating officer. "Despite the economy's slower than expected recovery, the company continues to believe it is well positioned for the future."
Forward is ranked No. 67 on the 2002 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
