A.M. Executive Briefing - Nov. 27
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Crude Oil Prices Fall, But Production Threatened
January crude oil futures fell 37 cents Monday to $35.06 per barrel on the New York Mercantile Exchange, following the four-day Thanksgiving holiday, Bloomberg reported.Meanwhile, the American Petroleum Institute said an increase in crude oil supply is expected due to the release of 30 million barrels of oil from the U.S. Strategic Petroleum Reserve, the wire service reported. However, two international events are threatening further oil production, as oil prices remain at what the United States calls an "unacceptable" level, the wire service said in another report.
Iraq, the fourth-largest crude producer may disrupt production if oil companies don't comply with a provision that sidesteps a United Nations resolution prohibiting unregulated oil trading. Iraq said it might cut 2.3 million barrels of oil per day if oil companies don't pay 50 cents per barrel to an Iraqi bank beyond the control of the United Nations.
But the world's largest oil producer, Saudi Arabia has said it is prepared to provide sufficient oil supplies to offset decreases productions due to political situations, Bloomberg said. Transport Topics
DaimlerChrysler To Add Commercial-Truck Jobs in Germany
Car and truck maker DaimlerChrysler (DCX) announced this weekend that it will add 5,000 jobs at the booming Mercedes-Benz commercial vehicles division in Germany, the Associated Press reported Saturday.However, last Wednesday, the company's North American affiliate Chrysler announced the idling of three plants, with plans to temporarily close more plants. Two SUV plants were also shut down.
DaimlerChrysler CEO Juergen Schrempp dismissed any notions that the ailing Chrysler would be sold off, the AP reported. Transport Topics
FedEx's Smith Recovering From Heart Surgery
FedEx Corp. (FDX) Chairman and CEO Frederick W. Smith had "successful" heart bypass surgery last Friday, and will be able to resume his regular work schedule within a "reasonable" time, the company said.Meanwhile, FedEx will be led by a team consisting of Robert B. Carter, chief information officer, T. Michael Glenn, who heads market development and corporate communications, Alan B. Graf Jr., chief financial officer and Kenneth R. Masterson, general counsel, the Wall Street Journal reported Monday. Transport Topics
Bush Names Card as Chief of Staff; Sen. Abraham May be DOT Pick
A former secretary of transportation has been tapped to run George W. Bush's White House, while a Republican senator is rumored to be the next chief of the Department of Transportation, media reports said.Bush named Andrew Card, who was transportation secretary under President George Bush, as his chief of staff, Reuters reported Monday.
Meanwhle, Sen. Spencer Abraham (R-Mich.) is rumored to be Bush's pick for transportation secretary, the Wall Street Journal reported Friday.
The State of Florida certified its election results Sunday and declared Bush the winner of its 25 electoral votes - votes Bush and Vice President Al Gore needed to win the presidency. But Gore vowed to contest the results, thus delaying any transition. Transport Topics
Trimac Exiting Stock Exchange
Canadian trucking giant Trimac Corp. has completed the privatization process, the company announced Nov. 23, and its shares are expected to be delisted from the Toronto Stock Exchange around Nov. 27.All of the outstanding Trimac shares were acquired by a company controlled by members of the McCaig family. The Merchant Banking arm of the Ontario Teachers' Pension Plan Board provided equity and subordinated debt financing for the transaction, and ScotiaCapital provided bridge debt financing, according to Trimac. Transport Topics
Celadon Buying Back 200,000 Shares
Celadon Group (CLDN) will buy back up to 200,000 shares of its outstanding stock, the company announced Nov. 22.The company had about 7.79 million common shares outstanding at the time of the announcement.
The shares will be used for general corporate purposes, including reissuance in connection with employee benefits, the company said.
Indianapolis, Ind.-based Celadon is a trucking and e-commerce company operating about 2,600 line haul tractors and 6,900 trailers. Transport Topics
Michelin Expects Lower Profits Due to Fewer Truck Orders
French tire company Michelin says it expects an operating profit of not more than 8.2% from its sales this year due to a 30% decline in heavy truck orders, Bloomberg reported.A decline in the U.S. tire market was another cause of the expected low profits, the story said.
In March, Michelin had predicted the year's operating profit to be 9.5%, but now says it may even go down to 7.3%. Transport Topics
Truck Maker Hino Improves Sales, Narrows Losses
Hino Motors, Japan's largest truck maker, said increased domestic truck sales narrowed its group net loss to $85.5 million or 19 cents per share for the first half, compared to loss of $207 million (per share not reported) during the same period last year, Bloomberg reported.Hino, a Toyota affiliate, sold 24,101 trucks and buses during the first half of the year, the wire service reported. Hino's Managing Director Kazauhiko Chiba said truck sales improved because the Japanese government relaxed truck safety certification rules. Transport Topics
UPS Deliveries Rise With Holiday Traffic
Package delivery company United Parcel Service (UPS) says Monday marks the beginning of its peak season.Between Thanksgiving and Christmas, UPS expects to use 3,500 additional trucks to deliver 19 million packages per day, the company said. The increase of online retailers, who often ship packages directly to customers, has boosted package traffic in recent years.
The company will also hire 95,000 additional workers to deliver the loads. Transport Topics
Headlines From Wednesday's A.M. Briefing
- story1">Crude Oil Supplies Rise, Prices Fall
- story2">DaimlerChrysler To Idle Three Plants
- story3">Trimac Facing Privatization Wednesday
- story8">EPA Diesel Rule Likely in December
- story6">Volvo May Buy Mexican Truck Plant
- story4">DaimlerChrysler, Caterpillar Form Medium-Truck Engine Alliance
- story5">Buffalo Facing More Snow
- story7">Atlas Air, Pilots Still Fighting Over Profit Sharing
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