A.M. Executive Briefing - Aug. 8
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Economy Gets Boost From Strong Productivity
Worker productivity, which measures worker output per hour and is a key to whether the economy can grow fast without pushing inflation higher, grew a stronger-than-expected 5.3% in the April-June quarter, the U.S. Department of Labor said.That means the Federal Reserve can keep creating enough money to fuel a strong economy, without worrying that labor costs will soon push companies into broad price increases. In other words, truck companies should not have to worry that the Federal Reserve Board will soon raise interest rates.
Economists had expected the Labor Department to report what would have still been a good 4.3% productivity growth pace in the last quarter. Transport Topics
Diesel Prices Rise Slightly; But A Storm Is Brewing
The slow but steady decline of diesel fuel prices ended its four-week slide with a slight increase, two-tenths of a cent, the U.S. Department of Energy reported.The national average is now $1.41 per gallon, with California being at the high end – $1.599 per gallon – and the Gulf Coast states ringing in at $1.374.
Fuel Line, the weekly analysis publication produced by the American Trucking Associations, reported that traders are factoring in potential impacts from tropical storm Alberto, the first possible hurricane of the season. Although no warnings have been issued to the United States, traders are factoring in a possible delivery disruption if the storm that originated in West Africa sweeps across the Atlantic and hits the Gulf Coast. Transport Topics
Sales Dropped For Prestolite Electric In Second Quarter
Prestolite Electric Holding, Inc., parent company of Prestolite Electric, Inc., announced this week it experienced a drop-off in sales for the second quarter.Prestolite sales dropped 7.4% to $88.5 million, the report said. Company CEO P. Kim Packard said the market for alternators and starter motor products is experiencing some "softness."
Prestolite Electric manufactures these products for heavy trucks under the Leece-Neville brand name. Transport Topics
Ariba, IBM Will Develop Transplace.com
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Transportation companies Covenant Transport, Inc., J.B. Hunt Transport Services, Inc., M.S. Carriers, Inc, Swift Transportation Co., Inc., U.S. Xpress Enterprises, Inc. and Werner Enterprises, Inc., joined forces to create Transplace.com, a Web-based business-to-business logistics service.
Ariba and IBM will provide the infrastructure for the Transplace.com e-marketplace. Transport Topics
Strong Quarter Reported By Clarke Inc.
Canadian freight transportation and logistics provider Clarke Inc. reported a strong showing in its fiscal first quarter Tuesday.Revenues rose 9% to $74.8 million, while operating income jumped 7% to $4.4 million. Net income also experienced a slight rise, up to $22 million or 33 cents per share.
The company attributed the quarter's success to growth in the transborder, domestic and expedited markets. Transport Topics
Chancellor Corp. Acquires Equipment Lease Portfolio
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The portfolio's original equipment value was approximately $8.7 million, and includes tractors, trucks, trailers and forklifts from manufacturers such as Volvo, Freightliner, Ford, Great Dane, Navistar International and Utility.
Chancellor's lease programs serve companies such as Wal-Mart, Texaco, Whirlpool and Coca-Cola. Transport Topics
Xceed Selected For Development of eWorldFreight.com
Internet development firm Xceed Inc. has been selected to help launch eWorldFreight.com, an interactive transportation asset network.Along with the launch of the site, Xceed will participate in marketing and promotion of eWorldFreight.com through trade shows and direct advertising, the company said.
The site allows customers in the rail, air and trucking industries to conduct transportation asset transactions over the Internet. It also provides information and analysis regarding those industries. Transport Topics
Revenues, Income Up for Petro In Second Quarter
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Revenues for the quarter rose approximately $68 million from the same quarter in 1999, to $231.1 million. Net income nearly doubled from the same period to $3.5 million.
Petro opened two new Stopping Centers during the quarter, raising its total to 55 across 31 states. Transport Topics
Freightquote.com Tabbed For Online Logistics Service
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EqualFooting.com is an Internet-based business-to-business marketplace for smaller manufacturing and construction businesses. Through freightquote.com, EqualFooting.com will now be able to offer discounts on truckload, less-than-truckload and express delivery products on-line. Transport Topics
Florida Town Concerned About Increased Traffic From Various Projects
Brooksville, Fla., officials are concerned that an exemption granted by Hernando County to two local churches might increase traffic problems in town, the St. Petersburg (Fla.) Times reports.The county requires frontage roads rather than driveways onto main highways, but these two churches will be allowed driveways, according to the article.
Nearby U.S. Route 41 is being widened to six lanes and a nearby truck route to four to accommodate increasing traffic in the Brooksville area. City officials fear the frontage-road exemption for the two churches undermine the effects of the expansion, the article said. Transport Topics
