A.M. Executive Briefing - Aug. 1

Oil Prices Holding After Drop, Federal Government Trying To Lower Heating Oil Costs

This comes a day after prices dropped 75 cents to $27.43 a barrel on the New York Mercantile Exchange, and 43 cents to $26.93 a barrel on London's International Petroleum Exchange, a 3% decrease, the Associated Press reported. Oil prices have been falling since Saudi Arabia said it intended to increase production, and are starting to fall into OPEC's target range of $25-$28 a barrel, AP said.

In the United States, the heating oil industry expressed concerns that the release of a 2 million-barrel reserve created by President Clinton would drive down prices of that commodity, the AP said Tuesday.

NAPM Reports Factory Sector Sluggish

The National Association of Purchasing Management said its overall factory index for July was at the same 51.8% index reading as in June, which is the lowest since January 1999. Economists had expected a stronger number. The July report had lower readings for current production, new orders for future output and the backlog of orders not yet filled.

This is in line with other recent signs that the economy may be slowing, although last week's report of a stronger-than-expected economic growth rate of 5.2% in the second quarter took many by surprise. Transport Topics

Allied Holdings Will Realign Subsidiaries

Three service companies - Allied Industries, Haul Risk Management and Link Information Systems - will be eliminated and realigned into Allied's two remaining companies, Allied Automotive Group and Axis Group, the company said.

"This realignment creates a more effective organizational structure and is part of our strategic initiative to manage our businesses in a cost-efficient manner that creates a fair value for shareholders," said company CEO A. Mitchell Poole Jr. Transport Topics

Workers at Quebec Paccar Plant Curb Workweek to Avoid Layoffs

Paccar, based in Bellevue, Wash., makes Kenworth and Peterbilt brands and is the world's second-largest heavy truck manufacturer, behind DaimlerChrysler.

In recent days a Peterbilt plant in Tennessee announced 370 layoffs and Canadian-based truckmaker Western Star, which is being bought by DaimlerChrysler's Freightliner, said it would close a South Carolina plant for three weeks. Mexico's leading truck manufacturer Grupo Dina reported Monday it suffered a second-quarter loss. In all instances, weaker North American new truck sales were blamed. Transport Topics

TruckersB2B Signs FleetNet America to Provide Roadside Assistance

FleetNet America will offer this service to TruckersB2B members through a special toll-free number, the company said. TruckersB2B is owned by Celadon E-Commerce, a Celadon Group subsidiary. Transport Topics

Train Hits Tractor-Trailer In Mississippi

"The City of New Orleans," heading for Chicago, was delayed for two hours after the accident, which happened at a crossing that did not have a guard arm to prevent vehicles from crossing in front of oncoming trains. No one was injured in the accident, the article said.

At least 399 people were killed and 1,360 seriously injured in 3,420 highway-rail grade crossing collisions in 1999, according to Operation Lifesaver (www.oli.org), a public education program that earlier this year produced a training video for drivers in how to avoid such collisions. Transport Topics

Interpool, Inc., Checks In With Record Second Quarter Net Income

Net income was $10,377,000, or 38 cents per diluted share.

Also in the report, revenues increased 50% to $66,093,000 and operating income rose to $27,976,000 for the quarter.

In the quarter, Interpool increased its operating fleet of cargo containers to 340,000 TEUs, the company said. Interpool also recently announced it will acquire the North American intermodal division of Transamerica Leasing. Transport Topics

Optimum Logistics To Team Up With Bulknet.com

nder the agreement, users of Optimum's e-logistics provider TransLink will be offered transportation services for liquid and dry bulk materials across North America. Transport Topics

Cummins to Drop "Engine" From Its Name

The change was already approved by its board, and will go to a shareholder vote at the company's annual meeting in April.

Chairman and Chief Executive Tim Solso said the name change reflects Cummins' development as a leader in other lines including power generation and filtration. Engines remain the core business, but other units now account for nearly 40% of sales. Transport Topics

FTC Gas Inquiry Finding Many Factors In Price Spike

The FTC began its inquiry in mid-June and received more than 200 boxes of information regarding the Midwest gas price rise to more than $2 per gallon, the article said.

While gasoline prices rose nationwide, the sharpest increase was seen in the Midwestern region, particularly Chicago and Milwaukee. The FTC inquiry revealed that the introduction of a cleaner-burning gasoline, reduced OPEC oil output, increased demand and possible collusion by oil companies are all factors into the Midwest's price jump, according to the report.

Since the inquiry began gasoline prices in the Midwest have dropped to around $1.45 per gallon, the lowest in the country, the article added. Transport Topics

FDOT Recommends Overpass On I-395 In Miami

FDOT engineers want Miami-Dade County officials' support for the project, which would replace a 30-year-old overpass, instead of other alternatives such as a new boulevard, underpass or a traffic circle, the report said.

An FDOT representative told Miami's Metropolitan Planning Organization that the $545 mil-lion proposal would be more practical and cost-efficient than other alternatives, the article said. Transport Topics