A.M. Executive Briefing - Jan. 27
This Morning's Headlines:
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Energy Acts to Ease Oil Price Surge
Responding to pressure that has arisen from oil prices nearing $30 a barrel, the U.S. Department of Energy will hold off deliveries of 5 million barrels of oil to the Strategic Petroleum Reserve. The move aims to cut prices by increasing the amount of oil on the market.Energy Secretary Bill Richardson still does not plan to release oil from the petroleum reserve. Energy and national security director Robert Ebel of the Center for Strategic and International Studies think tank says the move will not likely have much effect on prices unless a large amount of oil is released from the reserve.
J.B. Hunt Sees Income Fall 48.6%
J.B. Hunt Transport Services said its net income for the fourth quarter was $5.6 million (16 cents a share), down 48.6% from the year-earlier quarter, on revenue of $553.4 million, up $59.6 million. A company press release blamed the lower profit on fuel costs, saying earnings per share would have been even had fuel prices stayed the same.The bankruptcy filing of Charger, the flatbed hauler J.B. Hunt spun off in 1997, also led to write-off losses for J.B. Hunt. The fourth-quarter earnings results met consensus projections, and the company beat Stephens Inc.'s expectations.
Stephens analyst Dan Moore says J.B. Hunt is suffering from fuel costs it cannot control and predicts that the company will hike rates and enlarge the intermodal division in the next 12 months. Arkansas Democrat-Gazette Online (01/27/00); Wieland, Barbara
Gas Tax Idea Greeted With Little Enthusiasm by Truckers
Truckers at a Kentucky truck stop said they will fuel up outside the state if Gov. Paul Patton's idea of hiking the gasoline and diesel taxes by 7 cents passes. The current diesel tax in Kentucky is 12 cents a gallon. Raising the fuel taxes is needed to keep the state's six-year plan for road construction and maintenance on schedule without eliminating projects, Pattonaid.
At the Travel Centers of America stop on Interstate 75 in Richwood, independent trucker Bruce Callaghan said he would not pay extra to fill up in Kentucky, where the 7-cent hike would have raised the price of the 98 gallons he bought by $6.86. Company driver Jeff Held said the tax increase would not hit motorists buying five to ten gallons very hard, but would affect truckers, who buy far more fuel.
Both Republican and Democratic state legislators are saying that the governor's office and Transportation Cabinet have not sufficiently shown the need for a tax increase, while Patton argues that Kentucky's levy is one of the lowest in any state and the lowest in the region. Associated Press (01/26/00); Chellgren, Mark R.
Central Freight Lines President Retires
Central Freight Lines President Joe Hall, who saved the Texas carrier from a likely shutdown when he assembled the team that bought it from Caliber Systems, has retired. Board member Ronald Moyes, who with his brother and Swift Transportation co-founder Jerry Moyes was top financial backer of the buyout, will be interim president. Jerry Moyes said Hall's family has experienced health problems and Hall decided to "retire and enjoy golf and his health while he could."Central has gone from being financially strapped prior to the 1997 buyout to setting record revenues in the current fiscal year; revenues will be over $300 million at year-end. A public offering of 5 million shares that Central announced in May has been postponed due to its acquisitions of Aggie Express, Jaguar Fast Freight, and Vecta, and will likely take place next year, Jerry Moyes said. Waco (Texas) Tribune-Herald Online (01/26/00); Copeland, Mike
Statement Re Volvo Trucks
Volvo Trucks announced that its entire global operations have been certified ISO 9001 by Lloyds Register. Different parts of the corporation received a total of 57 certificates over a period beginning November 1993. The certification highlights the corporation's aim of ensuring uniform quality for products and services worldwide, said President and CEO Karl-Erling Trogen. Regulatory News Service (01/26/00)TransForce Publishes 3rd Quarter Results for 1999-2000
The Quebec-based transportation company TransForce said it saw C$2.4 million (C$0.08 a share) in net income for the fiscal third quarter, up 93.7% from the year-earlier quarter, as EBITDA rose 44% to C$9.4 million and revenues rose 18.8% to C$57.9 million. Third-quarter operating ratio fell 2.7 percentage points to 91.1% and cash flow generated through operation rose 34.9%.Year-to-date net income was C$8.3 million (C$0.27 a share), up 42.5% from the comparable year-earlier period, as EBITDA rose 51.1% to C$28.2 million and revenues gained 27.7% to C$165.1 million. The year-to-date EBITDA/revenues ratio gained 2.7 percentage points to 17.1%. TransForce provides LTL, truckload, and specialized services throughout Canada and the United States. Canada NewsWire (01/26/00)
Truck Traffic Stacks Up When Blue Water Bridge Closes
A snow-related shutdown of Highway 402 in Canada Wednesday caused a roughly five-hour holdup for trucks on the Blue Water Bridge from Port Huron, Mich. Trucks were backed up for about three miles. The drive from London, Ontario to the border at Windsor on Highway 401 was increased by an hour. Associated Press (01/26/00)© copyright 2000 INFORMATION, INC. Terms of Service
