A.M. Executive Briefing - Aug. 25
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Fuel Costs, Internet Unit Lead to Quarterly Loss for Celadon Group
Celadon Group, a trucking and e-commerce company, announced late Thursday that it experienced a consolidated net loss for its fiscal fourth quarter that ended June 330, even though its consolidated revenues rose.The company attributed the losses to higher fuel costs and to charges related to its TruckersB2B subsidiary, which provides discounts to member trucking companies via the Internet.
Celadon said its revenues increased 28% to $91.8 million for the quarter, while the net loss was $1.8 million or 22 cents per diluted share. Transport Topics
Averitt Express Opens New Center in Southern Texas
Transportation and logistics service provider Averitt Express announced it has opened a new service center in Harlingen, Texas, which is north of Brownsville and east of McAllen in the state's southern tip near the Gulf of Mexico.The new facility will allow Averitt to provide freight transportation services to the Harlingen area, points in Mexico and others within a 90-mile radius of Harlingen, the company said.
With the addition of this 4,500 square-foot service center, Averitt now operates more than 80 service centers, serving more than 50,000 direct points in the southern United States, Mexico, Canada and the Carribean. Transport Topics
Ontario Smog Patrol Watches Roads for Polluters
A special project of Ontario's environmental ministry has a group of 16 officers patrol-ling for polluters, the Toronto Star reported Thursday.Called the Ontario Smog Patrol, this group watches highways for commercial trucks and other vehicles that might be spewing too much pollution, the article said.
The Smog Patrol ticketed 423 offenders in 989 inspections in 1999, and to date this year has given out 330 tickets and conducted more than 2,000 inspections, according to the Star. Transport Topics
Rail Intermodal Shipments Continue to Rise, Report Says
Rail intermodal freight increased yet again last week, according to the most recent report from the Association of American Railroads. That is good news for the trucking companies that haul such goods on part of their journeys.Intermodal traffic rose 1.2% to 184,248 trailers and containers, compared with the same 1999 week, the AAR report said. Railroads reporting to AAR account for 92% of the country's carload freight and 98% of rail intermodal volume. Transport Topics
Covenant to Update Con-Way Trucks With Freightliners
Tuesday's sale of Con-Way Transportation's truckload division for $8 million will eventually mean more business for truck builder Freightliner Corp. of Portland, Ore.Covenant Transport of Chattanooga, Tenn., purchased one-third of the tractor inventory Con-Way used in its truckload division: 125 of 375. However, Covenant's chief financial officer, Joey Hogan, said his company will probably never use them.
In the short-term, Hogan will try to lease them out to other companies. Once Covenant has taken firm control of its new division, though, Hogan said the company will trade in all 125 of the tractors obtained from Con-Way, and replace them with new Freightliner tractors. He gave no time estimate for when that will take place.
As for the 250 tractors that will remain with Con-Way, a company spokesman said they would be dispersed through the company's remaining operations – three less-than-truckload carriers that collectively cover the nation. Jonathan S. Reiskin, Transport Topics
Bridgestone's Woes Continue, Suffer 49% First-Half Hit
Bridgestone Corp., reeling from the effects of recalling 6.5 million of its Firestone-branded tires, said its first-half profit fell 49% due to the problems, Bloomberg reported Friday.The company's net income for the six months through June fell to 18.9 billion yen ($177 million U.S.), or 21.93 yen a share, the article said. Bridgestone also took a $350 million one-time charge for the recall.
Bridgestone has had to recall several brands of its tires due to an investigation into claims that defects caused 62 deaths and 100 injuries. Transport Topics
Tires To Roll Off New E-Marketplace
Several tiremakers have signed an agreement outlining a basic framework for RubberNetwork.com, an e-marketplace for tires and other equipment, Bloomberg reported Friday.Terms of the agreement were not disclosed by the partners – Continental AG, Goodyear Tire & Rubber Co., Michelin & Cie. SCA, Pirelli & Co., Cooper Tire & Rubber Co. and Sumitomo Rubber Industries – but their announcement did say the new venture is expected to be operating by the end of 2000. Transport Topics
Southeastern Freight Lines Adds New Invoice Options
Southeastern Freight Lines, a privately held less-than-truckload company specializing in next-day and second-day service in the U.S. Southeast and Southwest, has added fax and Internet invoicing for its customers.The company said these new capabilities allow its customers to receive invoicing directly to a designated e-mail address or fax number each morning, speeding the process.
Southeastern's $477 million in 1999 revenues ranked it as 32 on the Transport Topic list of 100 largest trucking companies. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Crown Pacific Sells Yellowstone Trucking
- Number of Trucks To Decrease But Length Of Trailers To Increase On Some Canadian Highways
- Quarterly Revenues Drop For The Freight Connection
- Air Canada Expected To Take Mediated Deal To Avert Pilot Strike
- Canada Plans Second National Trucking Week
- DriverNet Sponsoring Disaster Relief Fundraiser
