A.M. Executive Briefing - Nov. 1
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Airborne Loses $5.5 Million in 3Q; Plans to Start Ground Delivery in April
Airborne Freight Corp. (ABF), which operates under the name Airborne Express, reported a loss of $5.5 million or 11 cents a share in the third quarter, blaming the continued lack of growth in its core domestic business and escalating fuel costs – but it hopes to boost its bottom line next year by introducing a ground delivery service next year."Jet fuel prices jumped to $1.03 per gallon on average this quarter compared to an average price of $.68 per gallon in the third quarter last year. Growth in international freight shipments and the continuing expansion in our Airborne@Home product did not offset the softness in other areas of our business," said Chairman Robert Cline.
Among the noteworthy initiatives in Airborne's plan is the introduction of a ground delivery service. The company plans to leverage its existing infrastructure and utilize excess capacity with the launch of this new service in April 2001. "A number of customers have expressed interest in consolidating their distribution process with us," said Carl Donaway, president and chief operating officer. Transport Topics
BAX Global Reports 3Q Loss
BAX Global – the freight transportation services subsidiary of the Pittston Co. (PZB) – reported Wednesday an operating loss of $12.7 million for the third quarter versus earnings in the prior year's quarter of $18.2 million.The Irvine, Calif.-based company said international profits grew by 8%, but the Americas operating performance declined due to soft demand combined with higher fuel, capital and service costs.
"Management has taken steps to remove costs which were not essential to the domestic operations," said Pittston Chairman, President and CEO Michael T. Dan. "They will continue to pursue alternative actions to achieve our goals of profitability and positive returns on capital employed."
BAX Global is a global transportation and supply chain management company, offering multi-modal freight forwarding to business-to-business shippers worldwide. Transport Topics
Pacer Completes Acquisition of Logistics Firm RFI Group
Pacer International, a freight transportation and logistics provider based in Walnut Creek, Calif., announced Wednesday that it has completed its purchase of RFI Group Inc., a non-asset-based logistics business headquartered in New York. Terms of the deal were not disclosed. RFI, with revenues of $113 million in 1999, is a freight-forwarding and customs-brokerage firm that also has ocean transportation brokerage capabilities. Pacer's revenues for the 12-month period ending Sept. 30, 2000, exceed $1.4 billion on a pro forma basis.
Don Orris, Pacer's chairman and chief executive officer, said the acquisition will expand Pacer's business to include international-trade related services. Transport Topics
EGL, Circle International Post Higher 3Q Revenue, Earnings
Houston-based EGL Inc. (EAGL) announced record quarterly revenues Wednesday, rising 45% to $241.8 million for the third quarter. Diluted earnings per share for the Sep-tember quarter increased 30% to $0.35 from $0.27 in the same period of 1999.
After the end of the quarter, EGL completed its merger with Circle International Group, which was structured as a pooling of interests. Circle posted revenues for the third quarter of $248.9 million, a 22% over the same period of 1999. Diluted earnings per share increased 13% to $0.44 from $0.39 in the same period of 1999.
"Our focused sales and marketing efforts and competitive, flexible business model continued to yield very positive results in gaining U.S. domestic market share, where we have enjoyed solid, consistent growth," said Chairman and CEO James R. Crane. Transport Topics
Oshkosh Truck Buys Medtec Ambulance
Oshkosh Truck (OTRKB) closed its purchase of Medtec Ambulance Corp. on Tuesday.img src="/sites/default/files/images/articles/oshkoshlogo.gif" width=104 align=right>Medtec, a top U.S manufacturer of custom ambulances, manufactures a broad line of ambulances for private patient transporters, fire departments, and public transporters. Medtec's American Fire & Rescue division manufactures and markets a line of rescue vehicles to the fire service.
Medtec will be included in the Oshkosh's fire and emergency segment along with Pierce Manufacturing Inc., a maker of custom fire apparatus.
Oshkosh Truck is a leading manufacturer of specialty trucks and truck bodies for the defense, fire and emergency, concrete placement and refuse hauling markets. Transport Topics
Train Wreck Closes BNSF Tracks, Temporarily Shuts Down I-40 Near Flagstaff, Ariz.
An Arizona freight train wreck shut down Interstate 40 for several hours late Tuesday and early Wednesday morning. Three people were injured and at least one person was missing, according to National Public Radio.Two westbound trains collided, spurring evacuations because of concerns about one train's hazardous cargo. Three locomotives caught fire and three cars on the front train derailed, according to the Associated Press. The collision occurred Tuesday around 6 p.m. Tuesday about 10 miles west of Flagstaff.
Police said none of the cars carrying the hazardous cargo had leaked. Lena Kent, a spokeswoman for Burlington Northern Santa Fe (BNI), which operates the tracks, told AP she didn't know what type of hazardous materials were on the front train.
The train in front was headed from Alliance, Texas, to Los Angeles, Kent told AP. The trailing train was headed from Chicago to Richmond, Calif. The cause of the crash won't be known for some time, Kent said. There was no immediate word on when BNSF would reopen the tracks, which carry 80 trains a day. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Navistar to Take $300M 4Q Charge to Cover Restructuring
- Diesel Dropped Last Week by One to Two Cents a Gallon
- Tanker Carrier Kenan Transport Gets 11% 3Q Boost, Purchase Offer
- Aether Says It Aims to Link All Trucks
- Qualcomm Unveils Higher-Speed Mobile Links
- Paccar Invests in Wireless Communication Firm
- Fuel Cells: Ballard, Nissan Spending Money
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