A.M. Executive Briefing - July 7

Roadway Q2 Net Tops Estimates, As Per-Ton Revenue Gains Nearly 7%

But Roadway said its tonnage rose 6.9% in the three months ending June 17 compared with a year earlier, and per-ton revenue gained 6.6% while operating costs rose just 6.2%. Its truckload operations nabbed 2.1% more tons, but its dominant LTL business gained 8%. Roadway Chairman Michael W. Wickham this was "our third quarter of double-digit top line growth," marked by a 16% jump in regional LTL revenues while specialized market offerings grew 21%.

He added this comes from Roadway's "strategy to penetrate the more profitable and faster growing regional markets and our ability to leverage the value and flexibility of our network" for changing customer needs. Transport Topics

High Road's Tender Offer Brings In 83% Of KLLM Stock

Last month KLLM Chief Executive Jack Liles and WorldCom Inc. President Bernard Ebbers, which formed High Road Acquisition, began the tender offer in its friendly take-over of the trucking company. The Liles – Ebbers team was able to beat out an attempt by Prime Inc. president and KLLM shareholder Robert E. Low to takeover KLLM. Low's tender offer was $7.75 per share.

High Road will provide three-business day, subsequent offering period starting today and ending on July 11. That cash offer will be at the same $.8.05 per share price. Transport Topics

Airborne Freight Talks Down Earnings Outlook on Slowed Domestic Shipments

Since airfreight has to get to and from the shippers by truck, what Airborne said has a direct bearing on trucking business. Airborne's senior vice president of finance, Lanny Michael, said in a company announcement that average daily domestic shipment volume for the quarter ended June 30 "is up less than 1% compared to the level of last year's second quarter, and is 2% below the average daily level of the first quarter of this year." Transport Topics

Computer Parts Shipper JPM to Transfer More Output from PA to Mexico, Canada

Despite strong customer demand JPM warned not only that it is eyeing a loss for its fiscal third quarter that ended June 30, but said it has "limited liquidity" and is suffering high costs in Pennsylvania where its plant is operating at capacity and labor is very tight. So JPM is transferring more of its production from that state to facilities in Mexico and Canada, "a process that requires careful coordination of logistics issues, ramp-up preparation and personnel. We have thus far paid a premium in productivity losses, logistics expenses and excess inventories to keep up with communications customer demand," Chief Executive Officer John Mathias said. Transport Topics

Paccar.com Invests in GoLogistics Freight Matching Service

Bellevue, Wash.-based parent PACCAR is an $8.6 billion company in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, DAF and Foden nameplates. GoLogistics was founded last year; it uses Internet-based software to match shippers looking for extra value with truckers looking to boost revenue on unprofitable lanes. ePaccar has also formed Truckxchange.com, a business-to-business e-commerce company that it says will create the first virtual global marketplace for goods and services in the estimated $450 billion commercial vehicle industry. Transport Topics

Emons Transportation Announces Expansion of Maine Intermodal Facility

That expansion, however, will be funded via the city of Auburn and the state, which paid for the 16-acre facility. Emons leases that facility and is in negotiations on increased lease payments. Cost for the expansion is estimated at $1 million. Transport Topics