August 15, 2000 8:50 AM, EDT

A.M. Executive Briefing - Aug. 15

This Morning's Headlines:

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Freightliner To Cut Almost 4,000 Jobs At Five U.S., Canadian Factories

Navistar Meets Third-Quarter Expectations But Layoffs Will Be Necessary

Grupo Dina Says It Will Make Interest Payment On Time

Sales Decrease Hits Raytech Corp. In Second Quarter

Transportation Components, Inc., Reports Net Loss for Second Quarter

Bats May Hold Up Beltway Plans

Emery Worldwide, U.S. Postal Service Partner In Delivery Of Internet Purchases

Air Transport: United Back In Talks; Emery, Pilots Strike Deal

Freightliner To Cut Almost 4,000 Jobs At Five U.S., Canadian Factories

DaimlerChrysler's truck-making subsidiary, Freightliner Corp., said it will cut 3,745 jobs at five U.S. and Canadian plants in anticipation of a sales decrease, wire services reported. That is 18.6% of its North American work force.

Freightliner will make cuts at plants in Portland, Ore.; Cleveland, N.C.; Mt. Holly, N.C.; Gastonia, N.C. and St. Thomas, Ontario. Layoffs start Oct. 20 for the U.S. facilities and Dec. 4 in the St. Thomas plant.

The company that is the largest North Ameican producer of heavy trucks said it anticipates up to a 25% decrease in heavy-truck sales, plus some slowing in the medium-truck market. Freightliner's actions follow suit with competitors, which in recent weeks have been an-nouncing layoffs and temporary plant shutdowns. Transport Topics

Navistar Meets Third-Quarter Expectations But Layoffs Will Be Necessary

Navistar International Corp., maker of International brand trucks and engines, said Tuesday that due to an anticipated drop in new truck sales the company will have to lay off about 1,100 salaried and contract positions, or 15% of its white-collar workforce and 6% of its total workforce.

Navistar made the announcement while reporting that its third-quarter earnings increased, meeting analysts' expectations for a 10th straight period.

Earnings for the quarter totaled $76 million, or $1.27 per diluted share. Net income was $96 million, or $1.60 per diluted common share, down from $255 million, or $3.86 per diluted common share in 1999. Transport Topics

Grupo Dina Says It Will Make Interest Payment On Time

Mexican truckmaker Consorcio G Grupo Dina, S.A. de C.V. announced Monday it would pay $6.5 million for semi-annual interest on its 8% subordinated convertible bonds before its 30-day grace period expires Tuesday.

In recent weeks, Grupo Dina has gone through extensive internal restructuring, particularly in management, to make operations more efficient, the company said. Transport Topics

Sales Decrease Hits Raytech Corp. In Second Quarter

Power transmission maker Raytech Corp. said this week it experienced a $4.6 million sales decrease and net loss of $7.06 billion or $2,023.70 loss per basic share in the second quarter.

Raytech also recorded a $7.2 billion charge related to the bankruptcy process. The company said the sales decrease was due to an industry-wide aftermarket slowdown. Transport Topics

Transportation Components, Inc., Reports Net Loss for Second Quarter

Transportation Components, Inc., which distributes replacement parts and supplies for commercial trucks, trailers, and other heavy-duty vehicles and equipment, reported a net loss of $1,385,000, or 8 cents per diluted share.

Revenues also decreased 7.4% to $6 million, which the company said was due mostly to a soft heavy-duty aftermarket. Transport Topics

Bats May Hold Up Beltway Plans

If certain bats are found in the Beckley, W.Va. area, plans might have to be temporarily altered for the East Beckley Bypass, the Charleston (W.Va.) Gazette reports.

Environmental scientists have set netting traps in the area to catch Indiana bats, an endangered species. If the species is prevalent in the area, the bypass plans could temporarily be halted. But a state Division of Highways official told the Gazette such findings have never permanently stopped a construction project.

The planned bypass will link Interstate 64, Eisenhower Drive and U.S. 19, the article said. Transport Topics

Emery Worldwide, U.S. Postal Service Partner In Delivery Of Internet Purchases

Emery Worldwide – CNF Inc.'s air freight subsidiary – and the United States Postal Service will join forces to make quicker deliveries on heavier items purchased over the Internet, Bloomberg reported.

The service, ParcelHome, will deliver multi-package shipments and those up to 70 pounds overnight or in 2-3 days, allowing people purchasing heavier items such as furniture via the Internet to receive their purchases faster, according to the article.

ParcelHome will be in competition with FedEx's FedEx Home Delivery, and United Parcel Service Inc., which currently carries about 60% of online purchases, the article said. Transport Topics

Air Transport: United Back In Talks; Emery, Pilots Strike Deal

In separate sets of negotiations between air carriers and the people who fly their airplanes, United Airlines resumed contract talks Monday with its pilots union, while CNF Inc.'s Emery Worldwide Airlines and its pilots have a tentative deal.

Air cargo feeds directly into both local and regional truck freight. And a major passenger line like United handles a large amount of cargo in its airplane bellies, and so is a big player in air freight.

United has had to cancel numerous flights linked to lack of pilot crews, and the union had imposed a two-day recess Friday over lack of progress in negotiations. Bloomberg reported talks are scheduled every day this week, and the two sides have said they want to wrap it up by Sept. 4.

Emery, whose air cargo operations are based in Dayton, Ohio, said it and pilots tenta-tively struck a four-year deal that will now go to union membership for a vote, JOC Online reported. The union's master council unanimously recommended the new contract, the report added, and ratification will take 4-5 weeks. Transport Topics