A.M. Executive Briefing - Jan. 18
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Knight Transport Reports Higher 4Q, Yearly Earnings
Phoenix-based Knight Transportation Inc. (KNGT) on Thursday reported a 10.7% increase in fourth-quarter earnings, 31 cents per diluted share compared with 28 cents for the same period in 1999.The company's net income for 2000 increased 15.7% from $1.02 per share in 1999 to $1.18 per share in 2000.
Knight Transportation is a dry-van truckload carrier of general commodities and is ranked 85th on the Transport Topics 100. Transport Topics
Nasdaq Delists PNV
Nasdaq delisted PNV Inc. from its National Market at the close of business Wednesday for failing to comply with the market's listing criteria, the company stated. On Dec. 20, PNV filed a petition for voluntary bankruptcy reorganization to facilitate a sale of its assets. It suspended services shortly afterward.
PNV provided truck drivers with pods that would connect to telephone and television services as well as Internet hookups.
The Coral Gables, Fla.-based company still operates its website PNV.com. Transport Topics
Study Affirms Causes, Solutions for Ergonomic Injuries
A National Academy of Sciences study on musculoskeletal injuries found that injuries from heavy lifting and repetitive movements could be reduced through changes in tasks and equipment, the Wall Street Journal reported Thursday.The NAS panel found a clear relationship between such activities and back strains, along with wrist problems like carpal tunnel syndrome. It estimated these injuries cost $50 billion a year in compensation, lost wages and lost productivity.
Democrats said this would make it harder for Republicans and business lobbyists to overturn the Occupational Safety and Health Administration's new ergonomics rule, the paper reported. More than 11 years in the making, the rule became final in late 2000. This is the second NAS study on musculosketal injuries; the first also bolstered OSHA's position.
But Rep. Cass Ballenger (R-N.C), who has overseen OSHA for several years, said the NAS panel lacked workers and businesspeople with a real-world perspective. Transport Topics
U.S. Housing Starts End Bad Year on Positive Note
U.S. housing starts rose 0.3% last month, the Commerce Department said, to end a year of weak home construction on an unexpected gain.The housing starts report has strong implications for truck freight activity. A rise in home construction gives trucks more material to haul just to build houses, and also implies more truck freight shipments ahead as home buyers bring in new furniture and appliances in coming months.
News reports said economists had expected December starts to decline amid bad weather and weakening consumer confidence. However, analysts said a falling mortgage interest rate had apparently helped spur a slight gain in new home construction last month after a 2.7% November gain.
The report did contain a warning sign for future home building. The number of building permits requested declined 6.6% in December after rising 3.4% in November, according to wire reports.
Also Thursday, the Labor Department said new claims for unemployment benefits in the week ending Jan. 13 fell by 37,000. The four-week moving average also fell last week, with a total of 350,000 compared with 362,250 the week before. Economists said the return of workers after temporary plant shutdowns and weather interruptions contributed to last week's fall in weekly claims.
This continues a recent pattern of mixed economic indicators consistent with Wednesday's "beige book" report from the Federal Reserve. In it, the Fed indicated that most of its regional banks reported a further slowing of economic growth while some regions reported that growth was remaining solid. Transport Topics
Rush Trucking Fined $150,000 for Hours Violations
The Department of Transportation's Federal Motor Carrier Safety Administration has fined Rush Trucking Corp. of Wayne, Mich., $150,000 for allegedly violating its hours-of-service regulations.The general freight and auto-parts carrier was cited for 285 counts of falsifying its records of duty status. The charges include Rush's alleged efforts to conceal violations of the rule, which limits drivers to 70 hours of work/drive time within eight consecutive days.
The company was also cited for breaking the 10-hour rule, which limits drivers to 10 hours of maximum driving followed by eight consecutive hours of rest, the agency said.
FMCSA said the company reportedly employs about 750 drivers and owns an equal number of trucks. Transport Topics
Crude Oil Prices Steady As Iraq Announces Increase
Official in Iraq announced late Wednesday that the nation plans to increase oil production to 2 million barrels per day on Feb. 1, Bloomberg reported. In the past few weeks, exports from Iraq have been inconsistent because of a conflict with the United Nations, which monitors the nation's exports.Iraq's announcement came following an expected decision by the Organization of Petroleum Exporting Countries Wednesday to cut oil production by 1.5 million barrels per day - roughly 5% of the cartel's daily output - beginning Feb. 1.
An industry analyst said Iraq's production hike could offset OPEC's cuts and keep prices down. However, it could also urge OPEC to make further cuts when it meets in March since the cartel has aimed to keep oil prices above $22, the article noted.
The announcements hardly made an impact on oil prices, the wire service said. In Thursday afternoon trading, Brent crude oil dropped 3 cents to $24.76 per barrel on the London market. In New York, the crude oil prices fell 10 cents to $29.50 per barrel.
DOT Gets $30M Settlement for Bad Highway Pipe
The Department of Transportation's Office of Inspector General Wednesday announced a $30 million settlement – the largest civil settlement in DOT history – involving substandard pipes used in highway construction.Inspector General Kenneth M. Mead, along with U.S. District Attorney L. J. Hymel also announced the unsealing of criminal charges against five former employees of the highway contractors who used the pipe.
The former employees of Ispat-Inland Inc. – formerly known as Inland Steel Co. of Chicago, and Contech Construction Products Inc. of Middletown, Ohio – pleaded guilty to charges of providing unapproved coated metal pipe used in more than 200 Louisiana highway construction projects between 1992 and 1997.
False certifications of compliance and false information stenciled on the exterior of the pipe were used in the fraud scheme, the IG said.
The IG's office began an investigation in March 1997 at the request of the federal prosecutor's office in Baton Rouge, La. The investigation involved more than 200 interviews nationwide, and review of more than 1.5 million documents, according to the IG. Transport Topics
Jevic Expands Web Site
Less-than-truckload-carrier Jevic Transportation has updated its Web site, adding a translation feature for customers who speak French and Spanish, the company announced Wednesday. The site also offers an online, real-time scanned image of a proof-of-delivery document. If the customer prefers, a copy of that document can be faxed. The information is available for up to six different shipments.
Weather and traffic conditions are also available on the site. Jevic, based in Delanco, N.J., provides national, regional and local service in the United States and Canada. Transport Topics
Headlines From Yesterday's P.M. Briefing
- OPEC Agrees to Cut 1.5 Million Barrels of Oil Daily
- Williams Calls its Truck Parts Business 'Sound' Despite Losses
- HomePlace Files for Chapter 11 Reorganization
- Almost 50% of Retailers Plan New Distribution Centers
- OSHA Deadline Passes on Grandfathered Ergonomic Programs
- Fritz Moves to Protect UPS Purchase
- Shares in ComRoad AG Rise After InfoMove Purchase
- Trucking Opinions Vary on NY Toll Proposal
- ArvinMeritor Earnings Drop 69%
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