A.M. Executive Briefing - July 28
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Economy Grows a Surprisingly Strong 5.2%, But Inflation Meter Slows
In a report with implications for the future course of interest rates, the Commerce Department said Friday that the economy's growth pace hit a robust 5.2% in the second quarter, after 4.8% in the first three months of 2000.Private forecasters had guided the financial markets to expect a 3.7% pace, which would show the Federal Reserve's yearlong campaign of hiking rates to slow the economy was paying off.
Further complicating the picture, the report also showed a slowing in a closely watched quarterly inflation measure, so the stronger growth came while price pressures cooled. The price "deflator" rose at a 2.3% annual rate in the April-June period, down from the first quarter's 3.5%. Transport Topics
Frozen Food Express Makes Second Quarter Comeback Despite Negative Factors
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The profitable quarter comes despite factors such as high fuel costs and a driver shortage that negatively affected operations. Company CEO Stoney Stubbs Jr. said that fuel surcharges helped but did not completely compensate for rising fuel prices.
Stubbs also said the driver shortage caused 3-4% of the company's fleet to be parked dur-ing the quarter. In an attempt to attract and retain qualified drivers, the company has implemented a new compensation package, Stubbs said. He also added that freight rates will have to rise to cover increasing costs.
Frozen Food Express Industries provides refrigerated truckload and less-than-truckload service to the contiguous 48 states, Canada and Mexico. Transport Topics
Detroit Diesel Drops 24% in Net Income for Second Quarter, Falls Below Estimates
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Net income dropped to $9.7 million, or 42 cents per share; this was below the 39-cent estimate from First Call/Thomson Financial.
Detroit Diesel is the latest manufacturer to note a pinch from declining demand in North America. Production of heavy trucks in the area fell to a rate of 270,000 for the year from 316,000 last year. Detroit Diesel's decline in revenue was mostly from the commercial vehicle engine division, which fell 15%, the article said.
Last week, DaimlerChrysler agreed to purchase Detroit Diesel for approximately $583 million. Transport Topics
IFLEET To Acquire The Truckers Helper Software
Commercial truck technology provider iFLEET, Inc., said Friday it will acquire The Truck-ers Helper, an accounting and management software package for drivers, owner-operators and small trucking companies.The Truckers Helper is designed to be user-friendly and trucking-specific, helping track mileage, maintenance and federal regulations, the company said.
The software will now be offered through iFLEET's TruckNet Web site (www.truck.net). Transport Topics
Interpool Buys Transamerica Leasing's North American Division
Interpool, Inc. will buy the North American intermodal division of Transamerica Leasing, Inc. in a $675-million deal announced Friday."Through this transaction, we greatly expand our chassis fleet, broaden our management and customer services teams, and strengthen our financial resources and technology platform," said Martin Tuchman, Interpool's chairman and chief executive officer.
Transamerica Leasing Corp, based in Purchase, N.Y., is a leading domestic lessor of intermodal equipment. Interpool is one of the world's leading lessors of cargo containers used in international trade. Transport Topics
FedEx Supply Chain Services To Move Headquarters to Virginia
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The new facility will house FedEx Supply Chain Services' officers and their staff, and is set to open in October.
Currently serving North America and Europe, the company is also expanding into Asia, Latin America and the Caribbean. FedEx Supply Chain Services is a third-party provider of integrated supply chain services. Transport Topics
Federal Government Gets Into Mix on I-95 "Mixing Bowl" Project
The U.S. Department of Transportation has said it will begin to audit the increasing costs of the "mixing bowl" project in northern Virginia, the Associated Press reported.The cost of the project, meant to improve the interchange where Interstate 95 meets the Capital Beltway, was originally estimated at $350 million. The federal investigation was triggered when the state of Virginia recently raised that estimated cost to more than $500 million, the AP said.
Virginia Gov. Jim Gilmore defended the cost estimate earlier this week, according to the Washington Post, and said the project will be completed by the target date of 2007. Transport Topics
Truck Firms' E-Commerce Progress Captured in New Report
A sweeping roundup of the ways major trucking companies are using the Internet to connect with customers or help power their business growth is in the Transport Topics Annual Report, a special section in the weekly newspaper's July 31 issue.The report lists e-commerce services based on what companies said they were offering through their Web sites. Those vary some by company, but the list illustrates such services as truck firms providing tracking information about freight shipments, rate quotes and electronic payment procedures, plus how some offer their shippers or potential customers the ability to check a carrier's service reports online. Transport Topics
PLM International Reports Second Quarter Earnings
PLM International, an equipment leasing and management company serving the transportation industry, reported its second quarter earnings late Thursday.For the quarter, consolidated revenues rose 21% to $10.3 million and operating income rose 51% to $2.1 million. PLM saw a strong turnaround in net income with $600,000, compared with a loss of $4,000 last year.
PLM International subsidiary PLM Trailer Leasing's operations rose 55% to $8 million for the quarter. PLM Trailer Leasing offers a large fleet of refrigerated trailers for short-term rental and lease. Transport Topics
