P.M. Executive Briefing - July 20
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Volvo Finalizes Agreement to Buy Renault Truck Division
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The purchase will make Volvo the second-largest manufacturer of heavy trucks in the world.
The deal was finalized despite a 2.8% decrease in profits in the second quarter, based mainly on a drop in U.S. sales, the article said. Transport Topics
Consolidated Freightways Near Break-Even Point for Second Quarter
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Company CEO Pat Blake noted that CFC has in recent months installed new top leadership whom is working to return the company to "previous performance levels." Transport Topics
B.C. Government Stands To Profit From Sale of Western Star
Shareholders are not the only ones looking to profit from the sale of Canadian truck manufacturer Western Star. British Columbia taxpayers will be cashing in to the tune of $19 million (Canadian).The Vancouver Sun reported Thursday the $19 million profit comes from the provincial government's $60 million (Canadian) investment in the British Columbia-based company. In was announced Wednesday that DaimlerChrysler subsidiary Freightliner would buy Western Star.
The $60-million investment was made last year so Western Star could build a new manufacturing plant. With the sale to Freightliner, one-third of the government's preferred shares will be converted to common shares and the remaining investment will be refunded later.
A company representative said in the article that, for now, Western Star's 450 jobs in Kelowna, British Columbia should not be affected by the sale. Transport Topics
Illinois Town Proposes Special Police Unit to Patrol Trucks
Rolling Meadows, Ill., has proposed adding a special police unit to focus on catching overweight trucks, the Chicago Tribune reported Thursday.City Police Chief Steven Williams wants to add two to four officers who would focus solely on enforcing overweight regulations and setting fines for trucks in violation, the article said. With a 23% increase in truck traffic across the United States, Williams called overweight trucks "a significant public safety issue."
Chicago and several other Illinois communities have such police units in place already, according to the article. Transport Topics
"Softening" Market To Blame for Transport Corporation's Second Quarter Drop
Minnesota-based truckload and logistics provider Transport Corp. of America announced second quarter net income of 12 cents per diluted share, down from 46 cents per diluted share one year ago."We clearly experienced a softening freight market in the second quarter with relatively weak demand from some of our key customers," company CEO Robert Meyers said in the report. He added that the company was still able to achieve an operating ratio of 94%. Transport Topics
Werner's Second Quarter Earnings Down
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Rising fuel costs are primarily to blame for Werner's drop to 27 cents per diluted share. Also, a decline in the used truck market negatively affected company earnings, according to the report. Transport Topics
Rollins Truck Leasing Drops Slightly in Third Quarter Earnings
Rollins Truck Leasing Corp. announced earnings of 26 cents per diluted share for the third quarter, down 4 cents from the comparable period last year.Full-service lease and commercial rental revenues increased by 39% and 25%, respectively, according to the report.
The company said operating expenses were impacted by costs due to recent acquisitions, such as the cost of bringing newly acquired equipment up to company specifications. Transport Topics
Business Booming for Ryder in Second Quarter
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Revenue also increased 10% to $1.33 billion for the period. Ryder CEO M. Anthony Burns said in the announcement that this was the fourth consecutive quarter that Ryder has met or exceeded earnings expectations. Transport Topics
