A.M. Executive Briefing - Aug. 16
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Pacer International Reports Increases in Second Quarter
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Consolidated gross revenues increased 51.2% to $294.9 million for the quarter, while operating income increased 81.1% to $20.1 million.
Company CEO Donald Orris said the increases were due to both internal growth and acquisitions. Transport Topics
Truckmaker Layoffs Hit Part Of Ontario Region Hard
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The Sterling Truck Corp. plant in St. Thomas announced layoffs of approximately 700 workers this week, while International Truck and Engine Corp. in Chatham will eliminate 500 jobs in November, the article said. Sterling is a subsidiary of Freightliner, which Monday announced it would layoff 3,745 workers at its Canadian and U.S. plants. International Truck's parent company, Navistar, followed the trend and Tuesday announced 1,100 layoffs.
A Canadian Auto Workers Union local official told the Free Press the layoffs would be a large economic blow to the area, as the two plants are among the largest and better-paying employers in the region.
The layoffs come in a period of weakening truck sales in the North American market. Higher fuel costs and other expenses are preventing companies and drivers from making truck purchases, the article said. Transport Topics
United Parcel Service Files Appeal To Overturn Federal Tax-Court Ruling
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The UPS appeal said U.S. Tax Court Judge Robert Ruwe "distorted tax doctrines in a manner that is irreconcilable" with related Supreme and federal court rulings, the Journal noted. As an example, UPS said it does not owe additional taxes on its Bermuda-based insurance subsidiary, Overseas Partners Ltd., because an unrelated insurer provided the subsidiary's excess-value package purchased by UPS customers, the article said. Transport Topics
Estes Express Lines Opens Caribbean Division
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Estes currently offers multi-regional less-than-truckload and truckload shipping to the U.S. Northeast, Mid-Atlantic, Southeast and Midwest. The Caribbean division marks the company's entry into the international market, the newspaper said. Transport Topics
Economy: Inflation Low; Earnings Flat; Housing Down
The U.S. Labor Department on Wednesday said consumer prices rose 0.2% in July, while the more stable non-energy, non-food components also rose 0.2% as economists had expected.That was one of just several new government reports that point toward no new increases in interest rates from the Federal Reserve. The Fed's policy-makers will huddle next week to decide their next move in U.S. monetary policy.
The widespread expectation is that the Fed will keep its money policy steady, which is good news for trucking companies pressed over the past year by rising interest rates as well as soaring fuel costs.
Separately, Labor said inflation-adjusted earnings in July showed no gain for the second straight month, which suggests no broad wage inflation. And the Commerce department said housing starts fell 3.3% in July to their slowest annual pace since November 1997. That housing slump is bad news for trucking firms hauling building materials or serving the furnishings market for new homes. Transport Topics
Goodyear Buys Into Cycloid Co.
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The investment will help Goodyear's ongoing effort to develop equipment to maintain constant tire pressure, Bloomberg said. The current Bridgestone-Firestone recall is due to an investigation into several accidents that may be linked to improper tire inflation, the story noted.
Cycloid's products are currently made for heavy trucks and trailers, but the company and Goodyear will work on providing an electronic version of the system for automobiles, the story said. Transport Topics
GATX Capital's Meier Mitchell & Company Unit To Become GATX Ventures
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Meier Mitchell & Company is a former investment partner of GATX Capital and was acquired by the company in February 1999. The name change is meant to more closely identify the unit with the parent company, a Meier Mitchell & Company official said.
GATX Ventures is the U.S. branch of GATX Capital's global financial business. Transport Topics
G-Log, Logistics Gateway Launch New Service For Small, Medium Shippers
Small and medium shippers will have a new e-logistics service through Logistics Gateway, from G-Log (Global Logistics Technologies Inc.) and Logistics Gateway Inc., the companies announced Tuesday.The e-logistics service will link a network of certified agents who will link shippers to freight services worldwide. Freight forwarder Welke Global Logistics will be Logistics Gateway's first client, the announcement noted. Transport Topics
Greyhound Needs Funding Or It Will Cease Operations
The nation's largest bus company, Greyhound Lines Inc., said it can only continue operations for another two to three months without new funding, the New York Times reported this week. Greyhound carries some freight parcels along with its passenger service.Greyhound filed a report with the Securities and Exchange Commission and said parent company Laidlaw Inc., of Canada, can no longer financially back the bus company's $176.1 million in debts, the article said. Laidlaw will allow Greyhound to raise money from capital markets, according to the Times. Transport Topics
Quicksall to Retire As Central Freight CFO
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When Caliber Systems was having financial difficulties three years ago and threatened to shut down Central and eliminate thousands of jobs, Quicksall along with then-president Joe Hall and Tom Morehouse (a senior vice president at the time), conducted a search for investors, finally turning to Swift Transportation founders Ron and Jerry Moyes, the newspaper said.
Quicksall told the Herald-Tribune he is retiring of his own accord, and plans to spend more time with his wife, possibly traveling. Transport Topics
