A.M. Executive Briefing - Dec. 14
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UPS Plans to Hit Earnings Target Despite Flat Season
Due to slowing across the U.S. economy, United Parcel Service (UPS) said Thursday its domestic volume during the first two weeks of the holiday peak shipping season had been flat compared to 1999, but the company expects to achieve its full-year performance targets.
Although the busiest days of the peak season still are ahead, domestic volume levels for the two-week period ended Dec. 8 were the same as 1999 levels due to slowing customer shipments. This follows a slowing in domestic volume increases in October and November to 4%, compared to the 5.5% growth reported for the first nine months of the year, according to the company.
Earlier this fall, UPS noted it expected a slight slowdown in the rate of fourth-quarter growth because of one less shipping day, a softening economy and comparison with strong results posted a year ago.
UPS Chairman Jim Kelly said the company anticipates slight declines in the growth rate for the U.S. domestic business; strong volume growth across international operations, and revenue growth of more than 30% in its logistics business. Barring further economic slowdown, the company expects to achieve the targets it set for 2001 - 10% growth in revenue and earnings, Kelly said. Transport Topics
TransFinancial to Close Specialized Transport
TransFinancial Holdings Inc. (TFH) announced late Wednesday that it plans to stop operations of its truckload transportation company Specialized Transport Inc. on Dec. 16.By shutting down Specialized, Lenexa, Kan.-based THF leaves the trucking business completely. In September, the company, which also has insurance and technology ventures, closed its other trucking subsidiary Crouse Cartage, a regional less-than-truckload carrier.
Specialized said it is closing because it was not able to continue its insurance coverage. Transport Topics
Va. Governor Wants To Raise Overweight Penalties, Overhaul VDOT
Virginia Gov. Jim Gilmore announced Wednesday an intention to raise penalties for illegal overweight trucks as part of a transportation reform effort.Gilmore also said he would restructure the Virginia Department of Transportation to focus on its mission - planning and building roads and highways.
Streamlining the construction process to move projects faster, tightening enforcement and education on environmental policies and strengthening auditing and oversight of construction contractors are also part of his plan.
In addition, Gilmore said he wants to provide localities the opportunity to manage and control roads. Transport Topics
DaimlerChrysler to Idle Windsor Plant for a Week
Car and truck maker DaimlerChrysler (DCX) plans to idle its Windsor, Ontario plant next week to prepare manufacturing a new sports-utility vehicle called the CS, Bloomberg reported Thursday. The plant currently produces minivans. The CS will be built on a minivan platform. Daimler expects to sell 75,000 of these vehicles, the wire report said.
The temporary closing of the Windsor plant will be part of 12 DaimlerChrysler shut-downs next week. The company is idling most of the factories to reduce production and cope with dwindling U.S. car and truck sales, according Bloomberg. Transport Topics
Goodyear Offers 700 Workers Early Retirement
Goodyear Tire & Rubber Co. (GT) offered 700 U.S. workers early retirement packages, Bloomberg reported late Wednesday. The action comes as the demand for tires declines due to slow car and truck sales, the article said.Half of the employees work in Arkron, Ohio, while the rest are spread out all over the country. Most of the employees have worked with Goodyear for at least 10 years. They have until the end of January to accept the packages. Transport Topics
Crude Oil Price Rises Due to Doubts Over Iraq Exports
Crude oil prices rose Thursday for the first time in three days as traders doubted whether Iraq would fully resume its oil exports, Bloomberg reported.The report, contrary to other articles, said Iraq has yet to start reloading oil. However, the wire report also noted that there has been limited activity on Iraq's Mina al-Bakr port.
Crude oil in London rose 61 cents to $25.75 in early Thursday trading, while the price in New York rose 30 cents to $29.04 a gallon. Transport Topics
Distributors, Manufacturers Launch Heavy-Duty Exchange
Major manufacturers, distributors and dealers of repair parts for heavy-duty trucks have joined together to launch HDeXchange to allow trading partners within the $9 billion industry to effectively and economically participate in e-commerce, using open, industry-wide standards. Kansas City, Mo.-based HDX is a not-for-profit entity founded in March. It recently finished a pilot project with more than 30 of the industry's manufacturers and distributors, including Bendix Truck Brake Systems, Drive Train Industries, Haldex Midland Services, Harman Heavy Vehicle Specialists, Midwest Wheel Co., and Stemco, Inc.
Nineteen additional companies in the industry have subscribed to HDX since the pilot program was completed, according to HDX.
HDX is partnering with Research Triangle Commerce, Inc. of Cary, N.C. and Profile Systems of West Springfield, Mass, to provide a range of technology services and support, allowing aftermarket trading partners to improve productivity and reduce operating costs.
German Company Implements New Airport 'Slot System' for Trucks
The Airfreight Services department of FAG Aviation Ground Services - a division of Flughafen Frankfurt/Main AG - has successfully implemented a new "slot system" for long-haul trucks that deliver export cargo to Frankfurt Airport, the company announced Wednesday.Implemented in October, this new timetable procedure - with fixed, pre-arranged "slots" or time windows for handling trucks on weekends - eliminated bottlenecks that sometimes arose because of the large number of trucks arriving between Friday night and Saturday morning.
About 80% of the more than 100 trucks arriving at the FAG-Cargo Terminal on Friday nights have agreed to use this slot system. About 95% of these trucks arrive on time for their scheduled slot and can be handled as planned, the company said.
onceived by FAG, the innovative slot system was developed in cooperation with airline customers, forwarders and truckers. Germany's Fraunhofer Institute for Material Flow and Logistics assisted in planning and implementing the system. Transport Topics
Corning Expanding in Pa.; S.C. Textile Mill Closing
Carriers that haul telecommunications equipment may have more loads in the future - especially in Pennsylvania, but companies that serve the textile industry in the South could see a decline in freight business.Corning Inc. (GLW) announced that it would spend $150 million to expand an optical amplifier manufacturing plant at Benton Township, Pa., and add 1,500 jobs by fall 2002, the Associated Press reported Wednesday. The town is about 35 miles west of Wilkes-Barre.
The 135,000-square-foot plant will more than double in size, to 300,000 square feet, according to AP.
At the opposite end of the capacity spectrum, Cone Mills Corp. said it is closing a Raytex plant in Marion, S.C. Cone will eliminate 200 jobs, Bloomberg News reported. The plant has been hurt by other textile manufacturing cutbacks, since much of its business came from other companies, the news service said. The Marion plant has printed fabrics used in bedspreads and comforters, Bloomberg said.It is located about 100 miles east of Columbia.
Headlines From Yesterday's P.M. Briefing
- Texas Ice Storm Causes Road Delays
- Midwest Roads Slick But Still Open
- Former Ford CFO Named New GM CFO
- Nasdaq May Delist @Track Stock
- GM Coordinates All Logistics With CNF
- Volvo Fears Daimler May Get Inside Information on Trucks
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