A.M. Executive Briefing- Jan. 8
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U.S. Xpress Warns of 4Q Loss
U.S. Xpress Enterprises Inc., (XPRSA) announced Monday it expects to report a fourth-quarter loss of $0.11 to $0.13 per share before a one-time charge. The Chattanooga, Tenn.-based company will take a $2 million charge for the year, based on the write-off of outstanding receivables with Dedicated Transportation Services Inc. and related expenses.
Including the one-time, pre-tax charge, U.S. Xpress expects to report a loss for the fourth quarter of $0.22 to $0.24 per share and earnings for the year of $0.15 to $0.17 per share. Reuters reported that analysts were expecting the company to post an $0.08 per-share profit for the quarter and a $0.45 per-share profit for the year.
U.S. Xpress Enterprises, Inc. is the fifth-largest publicly owned truckload carrier in the United States, and said it is well-positioned to take over business from trucking companies that were not able to weather the high fuel prices and other woes the industry has suffered. Transport Topics
Parts-Maker Delphi to Cut 300 Workers, Idle 1,280 Others
Auto-parts maker Delphi Automotive Systems Corp. (DPH) will give 300 workers pink slips beginning Monday, Bloomberg reported during the weekend. The auto-parts maker will also idle 1,280 workers in response to a slowing truck and auto market.All the effected employees work in various Ohio plants, the article said. The plants make engine parts, brake components and electrical wiring often used in trucks.
Delphi's former parent, General Motors Corp. (GM), will also begin laying off or idling of 20,000 workers in mid-January, the article said. Transport Topics
APL Logistics to Buy GATX Logistics
Oak Hill Capital Partners, a private equity investment group, and the Stephens Group Monday announced they have signed a definitive agreement to sell Jacksonville, Florida-based GATX Logistics Inc. to APL Logistics Inc. for $210 million. Oakland, Calif.-based APL Logistics is a wholly owned subsidiary of Singapore-based Neptune Orient Lines, a global company involved in transportation and logistics businesses. GATX Logistics is a value-added warehousing services and freight management company based in Jacksonville, Fla.
The sale is expected to close in the first quarter, pending regulatory approval.
GATX said it wanted to provide continued growth within the Western Hemisphere as well as in Asia and Europe – areas which it has not yet tapped. It added that the two companies fit together with little overlap.
GATX intends to maintain a presence in Jacksonville, according to the company. Transport Topics
Volvo, DaimlerChrysler At Odds Over Mitsubishi
With both Volvo AB (VOLVY) and DaimlerChrysler (DCX) holding stakes in Japanese automaker Mitsubishi, the two rival truckmakers are struggling to share power, the Wall Street Journal reported Monday.Stuttgart, Germany-based DaimlerChrysler owns a 34% stake in Mitsubishi, while Gothenburg, Sweden-based Volvo holds a 5% stake. At first, Volvo said it would go along with DaimlerChrysler having a larger share. However, the article said tension is slowly growing and may pressure Volvo to sell its stake.
Volvo is currently discussing with Mitsubishi how to keep Volvo's proprietary information away from DaimlerChrysler. However, the article noted that Volvo has not indicated selling its stake so far. Transport Topics
Ford, Bridgestone Settle SUV Rollover Lawsuit
A high-profile lawsuit against Ford Motor Co. (F) and Bridgestone/Firestone Inc. over a Ford Explorer rollover has been settled, heading off a trial that was set to begin Monday, Reuters reported. The settlement amount was not disclosed.The $100 million suit was brought by a 44-year old Portland, Texas, woman who was paralyzed from the neck down after the March 10 crash. The woman was a passenger in the Explorer when the tread on one of the vehicle's Firestone tires failed. She had said she wanted a trial so facts about the companies would come out, according to the Associated Press.
The case was set for a hearing Monday in Corpus Christi, Texas, with jury selection beginning Tuesday. It would have been the first of nearly 200 tire-failure lawsuits to make it to trial.
Bridgestone recalled 6.5 million tires in August after federal safety investigators linked the tires to 148 deaths in numerous Explorer rollovers. Transport Topics
World Events Swing Crude Oil Prices
Monday's crude oil prices slumped in London and jumped in New York due to price cuts by an OPEC member and cold weather in the eastern U.S.In London, crude oil traded on Monday at $27.95 per barrel, a 19-cent drop, CBS Marketwatch reported. The drop was in response to Iran's announcement that it would sell crude oil at a 10-cent to 35-cent discount for February delivery, Bloomberg noted.
However, oil rose rose 16 cents to $28.35 per barrel in New York, mainly due to cold weather in the U.S. Northeast, the nation's largest heating-oil market, according to Bloomberg.
In addition, three major oil refineries in the Philippines announced a price cut of 1-cent-per-liter (roughly 4 cents per gallon) for petroleum products, according to a Reuters article. Transport Topics
U.S. Air Cargo Volume Up 2.6% in November
U.S. air cargo, which trucks transport to and from freight terminals at airports, grew 2.62% in November, the Journal of Commerce Online reported late last week.The growth was lower than the 6.9% total growth trend for the past 11 months but higher than October's 0.8% increase, the article noted.
Domestic air cargo volumes slid 0.7% to 1.05 billion ton-miles, while international air cargo jumped 6.1% to 1.07 billion ton-miles. Transport Topics
National Gasoline Average Down to $1.49/Gallon
The national average price of gasoline – the fuel of choice for many light trucks – is continuing a downward trend, according to the Lundberg Survey.The nationwide average price-per-gallon fell about 1.75 cents nationwide in the past three weeks, to $1.49, the survey said.
Analyst Trilby Lundberg, who compiles the survey, said lower demand for gasoline during winter months and lower prices for crude oil pushed prices down, although they were higher in the storm-battered Midwest.
Lundberg surveys 10,000 service stations nationwide every week. Transport Topics
Headlines From Friday's P.M. Briefing
- CF Plans to Open 3 Terminals by Spring
- U.S. Jobless Rate Steady; Factories Lose More Jobs
- Houston Police Crack Down on Truckers Driving I-10
- Intermodal Freight Volumes Shrink
- FedEx May Order 10 Airbus Freighters
- New Home Sales Holding Up Despite Drop
- EToys to Close Calif., N.C. Warehouses
- Volvo to Build Trucks in Russia
- Two Low-Emission SUVs Unveiled
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