A.M. Executive Briefing - Aug. 3

Environmentalists Claim Engine Manufacturers Are Reneging On 1998 Deal

In a consent agreement signed with the Justice Department, six manufacturers agreed to design a pre-sale emission test procedure by 2002 that would consider actual highway driving conditions. The Environmental Protection Agency had previously found that manufacturers were fitting trucks with devices that allowed the vehicle to pass a pre-sale emission test, but then exceeded pollution regulations when out on the road.

Tuesday, the EPA issued a new regulation that will require engine manufacturers to test for emissions standards under actual driving conditions by 2007, the article said.

Con-Way Central Express Opens Freight Assembly Center In Ill.

The new facility, located in Salem, Ill., is the second such center opened by Con-Way Central Express in the past month. It will help create faster service to major cities in Illinois, Indiana and Tennessee as well as St. Louis, Atlanta and Jonesboro, Ark. Also, more than 976,000 ZIP codes will be upgraded from two-day to next-day service, the company said. Transport Topics

OPEC Members Went Over Oil Production Quotas In July, Crude Prices Still Rise

Total output from all 11 OPEC members increased from 28.08 million barrels per day in June to 28.27 million barrels per day in July, the survey said. Analysts also said they think production will further increase in August.

However, due to concerns over drops in crude stocks in the United States, prices rose yet again, Reuters reported.

September deliveries rose 45 cents to $28.71 a barrel on the New York Mercantile Exchange, and went up 53 cents to $28.12 a barrel on London's International Petroleum Exchange, the report said. Transport Topics

Hawk Corp. Reports Increases in Sales and Earnings for Second Quarter

Net sales went up to $53.7 million for the quarter, while earnings per diluted share were up to 22 cents. Sales increased 5.6% in the friction segment despite declines in the truck market, the company said. Transport Topics

Net Income Up for Circle International In Second Quarter

Net income for the quarter was $6.5 million. Earnings per diluted share also increased in the quarter, to 37 cents, while income from operations rose to $9.5 million and revenues jumped 21% to $237 million, the company reported.

In July, Circle International announced a strategic merger with EGL, Inc., combining that company's domestic strength with its own international services. Special meetings will be held on Sept. 18 for EGL shareholders and on Sept. 20 for Circle International shareholders to vote on the merger. Transport Topics

Sludge Spill Ties Up Traffic In Norfolk, Va.

The Virginian-Pilot (Norfolk) reported that nine tons of the sludge, which was oil-based, formed a two-inch layer over a quarter mile of the roadway. A few cars got into minor accidents on the slick surface, and a thorough cleaning is necessary so residue will not make the road more slick during wet weather, a Virginia Department of Transportation official told the Virginian-Pilot.

The Puryear Trucking Inc. driver, whom police did not identify, was charged with failure to secure a load, and had been hauling the sludge out of Hampton Roads, Va., for disposal, the article said. Transport Topics

Senator Says He Will Push Interstate 93 Expansion

Smith is chairman of the Senate Environment and Public Works Committee and said he will use the power of that position to get the project through, the article said. The project, to be completed in 2010, will expand a two-lane, 18-mile stretch of the interstate. Cost is projected at $140 million, the Globe said. Transport Topics

American Airlines Cargo Backs Off Fuel Surcharge

The Fort Worth, Texas-based division of American Airlines said it was making the move to remain competitive, despite the continual increases in fuel prices. Transport Topics