A.M. Executive Briefing - Feb. 1
This Morning's Headlines:
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Allied Holdings Ready for Haul with New Deals, Management
The automotive carrier Allied Holdings has brought in new managers and struck new deals with customers in response to the earnings hit it took as increased SUV and pickup demand meant it could not fit as many vehicles on its trailers.Michael Poole rose from president and COO to the CEO spot two months ago, taking the place of Robert Rutland, which means the Rutland family has no hands-on control of the company for the first time since 1934. The Rutland family remains top shareholder and Robert Rutland is still chairman.
Poole said the company has already recovered from the financial problems it faced in 1999. It reached new contracts with General Motors, Ford, and DaimlerChrysler, the last of which kept 91% of its contracts at Allied after first putting them out for bid.
Although last year's first nine months saw a net loss at Allied, the company said it will beat fourth-quarter earnings estimates and show a profit for the full year.
Banc of America Securities analyst Peter Coleman said Allied will see "huge year-over-year growth this year" but must look to logistics, overseas customers, and e-commerce's effect on distribution in order to see growth over the longer term. Poole said the company is looking in those directions, including testing smaller trailers that could deliver cars ordered online to homes and planning to stretch its foreign expansion from Britain and Brazil, where Allied is already present, into Asia. Atlanta Journal-Constitution (02/01/00) P. 3F; Thurston, Scott
Truckers Say Shippers Need to Pay for Fuel Price Increases or Risk Facing Service Disruptions
Canadian Trucking Alliance CEO David Bradley said shippers could face transportation disruptions unless they are willing to pay higher rates to make up for soaring diesel prices.Some independent truckers have stopped working because they are unable to get enough money from carriers to stay on the road. Trucking companies have had varied results from their attempts to add fuel surcharges, Bradley said, with big multinationals being some of the toughest shippers to work with. He said the industry wants to escape the problem without government intervention and that shippers need to deal fairly to make that happen.
Bradley has sent letters to Canada's top shipper groups about the coming fuel emergency and suggested a conference on the issue. Canada NewsWire (02/01/00)
86 Rigs Stopped in Hwy. 401 Safety Blitz
The Ontario Provincial Police conducted a truck-safety crackdown on Highway 401 and nearby roads in Pickering Monday, pulling over 86 trucks and putting 59 out of service. Police issued 14 speeding citations, with charges handed down for 64 safety violations. Toronto Sun (02/01/00) P. 20NLRB Dismisses Teamster Charge of Overnite 'Hit List'
National Labor Relations Board Regional Director Ronald M. Sharp, in a letter sent to Teamsters lawyers Jan. 19, dismissed the union's allegation that Overnite Transportation maintained a "hit list" of union backers, Overnite said. The union's claim was taken from allegations by former Overnite employee Dale Watson.The carrier also said Virginia State Judge Catherine Hammond refused the union's motion to dismiss a defamation case Overnite brought against Teamsters spokesman David Cameron. Heavy Duty Trucking Online (02/01/00); Lockridge, Deborah
Agency Pushes Cleaner Fuels
The Riverside County (Calif.) Transportation Commission is seeking to spend $2 million to back projects involving cleaner alternatives to diesel fuel, and some of it will be available for clean-diesel studies. The commission's board must give final approval to the draft plan.An official at the agency said counties in the Los Angeles air basin could lose federal road funding if they do not meet their clean-air guarantees.
Throughout the region, there is more and more pressure for governmental bodies to lead the movement away from diesel. The South Coast Air Quality Management District could require public agencies and contractors to use cleaner engines starting in April, and San Bernardino County also intends to provide money for clean-fuel projects.
Riverside County's proposal came about after just one alternative-fuel project was awarded some of the county's $43 million in grants from a 1999 call for projects.
The new round of funding would give money to projects powering truck cabs with electricity so their engines do not have to run in order to operate air conditioners and heaters. It could also fund alternative-technologies' powering stations and fueling hubs, but only if they are open to the public. It would also back mechanics' training for the alternative-fuel technologies. Press-Enterprise (Riverside, Calif.) (01/31/00) P. B1; Steele, Jeanette
More Troopers and Technology for Expressway
The Florida Highway Patrol wants the state to add seven troopers specifically to fight speeding and toll violations on the Orlando-Orange County Expressway. The price tag on the highway patrol's proposal would be $600,000 the first year and $425,000 each additional year; toll authorities say toll violators cost them $2.5 million.Separately, the state's SunPass toll technology will be added to toll plazas beginning in August. Users of the E-ZPass system will need another transponder for SunPass and will be able to avoid some tolls elsewhere in the state. Land Line Magazine Online (01/31/00)
Nissan Diesel Plans 20% Cost Cut Via Tie-Up With Renault
According to company sources, Nissan Diesel Motor intends a 20% cut in procurement costs by March 2003 by joining French truckmaker Renault V.I. in volume purchases.The sources said the Japanese company expects this fiscal year, ending in March, will be the third in a row that it will show a loss, and since a rise in truck sales is not anticipated in the near future, the company wants to be profitable in the next fiscal year due to cost-cutting.
Nissan Diesel will take cost-management responsibility away from separate divisions Tuesday and will turn it over to a new task force, according to the sources. Japan Economic Newswire (01/31/00)
Trimac Corporation Purchases Assets of V.A. Ross Trucking Limited
The Canadian bulk carrier Trimac Transportation has acquired the New Brunswick forestry-products carrier V.A. Ross Trucking, which saw roughly C$3.7 million in 1999 revenue. This purchase will further Trimac's place in the Maritimes and in the forestry industry. Canada NewsWire (01/31/00)© copyright 2000 INFORMATION, INC. Terms of Service
