A.M. Executive Briefing - Oct. 12
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Ryder CEO Burns to Retire
M. Anthony Burns, chief executive officer of global logistics, supply chain and transportation management solutions giant Ryder System Inc., (R) announced Thursday he will retire effective Nov. 1.
 Burns |
Burns has been with Ryder since 1974, becoming president and chief operating officer in 1979, chief executive officer in 1983 and chairman of the board in 1985. Transport Topics
Landstar 3Q Earnings Per Share Up Over 1999
Landstar System Inc. (LSTR) said Thursday it reported a third-quarter net income of $11.5 million, or $1.30 per diluted share. Earnings per share rose from $1.20 per diluted share in the same period of 1999. The quarterly figures were adjusted to reflect a one-time $2.2 million charge for withdrawal from a union-sponsored pension plan, the company said.Through its various companies, Landstar System is involved in over-the-road and intermodal transportation and logistics.
Company Chairman, President and Chief Executive Officer Jeff Crowe said Landstar performed well in the third quarter despite a "challenging operating environment" caused by high fuel prices and a softening economy. Transport Topics
Cummins Earnings Fall on Weak North American Market
Diesel engine maker Cummins Inc. (CUM), as expected, reported third-quarter earnings at levels far below that of the same period in 1999, thanks mainly to the declining North American heavy-truck market.Third-quarter earnings were at 66 cents per share, compared with $1.35 per share a year ago, the company said. Sales fell to $1.57 billion from $1.63 billion.
International sales remained strong, as well as demand for Cummins diesel engines provided for Dodge Ram pickups, said Tim Solso, company chairman and chief executive officer. Transport Topics
Senate Passes Auto-Safety Overhaul
The U.S. Senate followed earlier action by the House of Representatives and voted Wednesday for a bill overhauling vehicle-safety rules, the Wall Street Journal reported.That bill, which comes in the wake of the massive recall of Firestone tires related to fatal accidents involving Ford (F) Explorer vehicles, focuses on stronger reporting requirements when auto companies and suppliers find safety problems in their products.
Recalls are of course also an issue within the heavy truck industry, but recalls of so-called passenger cars often include vehicles used commercially by utilities or light-cargo operations.
The Journal noted, though, that the measure disappointed consumer-safety groups that wanted even tougher rules. Transport Topics
Singapore Air Boosts California Freight Runs
Singapore Airlines is increasing its freight presence on the U.S. West Coast, adding daily all-freight service to Los Angeles and increasing freight runs to San Francisco, the Journal of Commerce Online reported Wednesday.The Los Angeles service will begin Oct. 16, the article said. San Francisco will now have four flights a week from Asia, three via Los Angeles, the Journal added.
These increased air-freight services should also boost ground transportation on the busy West Coast. Transport Topics
2 SPR Contract-Winners May Not Get Credit Letters
Euell Energy Resources and Lance Stroud Enterprises, two of the three small companies awarded swaps contracts for oil from the Strategic Petroleum Reserve, may not obtain the necessary letters of credit to proceed with the deals, the Wall Street Journal reported Thursday.Should those companies not provide the letters of credit by the close of business Thursday, the U.S. Department of Energy will have to consider their options and may possibly re-open bidding for those contracts, the story said.
Several oil companies have backed away from potential deals with Euell and Stroud, two companies with little to no experience in the oil markets, the Journal said. Stroud received the second-biggest SPR contract, for four million barrels. Transport Topics
Renault May Sell Bus Stake to Aid Volvo Deal
Renault SA (13190-PAR) may sell its 50% stake in Iribus to Iveco SpA, the commercial vehicle division of Fiat SpA, (FIA) in order to comply with European Commission conditions on Volvo's (VOLVY) purchase of Renault's truck unit, Bloomberg reported Thursday.
EU approval for Volvo to buy Renault's truck unit is conditional, hinging on both companies cutting ties to Iveco and Scania AB, the story said. Renault may ally with Volvo in a bus making venture if it is allowed to keep that side of its business, Bloomberg added.
Across the Atlantic, Volvo Trucks North America and Volvo Commercial Finance LLC The Americas have partnered with Transportation.com to provide Volvo's information technology services to carriers to aid in truck purchasing and other services, the Journal of Commerce Online reported Thursday. Transport Topics
GM Reports 5.5% Lower 3Q Profits; Beats Street
General Motors (GM), world's largest vehicle manufacturer, said Thursday its third-quarter earnings fell 5.5% as it lost money in Europe and built fewer high-profit trucks in its main North American market, but it still edged out Wall Street expectations, Bloomberg reported.Besides passenger cars, GM builds heavy-duty commercial trucks; some of its passenger vans and trucks are also used by businesses such as light-cargo delivery and utility operations. Beyond that, however, its profit and sales trends have an immediate impact on trucking firms that haul enormous supplies of parts to GM assembly plants, and take finished vehicles out to dealers.
GM's net income slid to $829 million or $1.55 per share from $877 million in the year-earlier period. Sales slipped to $42.6 billion from $42.8 billion. Bloomberg said the results were a penny ahead of the average forecast of Wall Street analysts in a First Call/Thomson Financial analyst poll.
The news service also said GM shares rose in early trading Thursday, after falling 19% so far this year through Wednesday. That compares with declines of 18% at Ford Motor Co. (F) and 42% at DaimlerChrysler AG. (DCX) Transport Topics
USPS/FedEx Alliance Continues to Raise Questions
The strategic alliance between the U.S. Postal Service and FedEx (FDX) has several members of the U.S. House of Representatives calling for the Justice Department to review the deal for possible antitrust violations, the Journal of Commerce reports.
Representatives Dan Burton (R-Ind.), John McHugh (R-N.Y.) and Henry Hyde (R-Ill.) have written to Attorney General Janet Reno asking for a probe into antitrust implications regarding the deal, the story said. Reno has yet to comment on whether or not the Justice Department would review the alliance, the Journal added.
This alliance, which has not yet been formally agreed upon, would allow the USPS to use FedEx's air fleet to deliver Priority and Express Mail. FedEx would then use USPS carriers to deliver residential packages weighing less than 70 pounds, according to the Journal. Transport Topics
2 Railroad Corridors Designated for High-Speed Service
U.S. Transportation Secretary Rodney Slater designated two more railroad corridors for high-speed train service Wednesday, the Associated Press reports.
The corridors are in New England and the U.S. Midwest; one links Boston, Montreal and Portland, Maine while the other connects Dallas/Fort Worth, Little Rock, Ark. and Tulsa, Okla., the story said.
High-speed corridors are rail lines where train speeds of 90 mph and greater are possible, the story said. Legislation pending in Congress will help Amtrak raise $10 billion over 10 years for track and train improvements needed to achieve such speeds, AP said.
Such a move will boost the railroad's competition with trucking freight, as it will increase Amtrak's cargo capabilities and allow it to compete for time-sensitive shipments mainly carried by trucks. Transport Topics
Parcel-Delivery Services, Law Enforcement Clash Over Package Searches
UPS, (UPS) FedEx (FDX) and the U.S. Postal Service are in conflict with law enforcement agencies across the country over the issue of allowing package searches, the Wall Street Journal reported Thursday.
The delivery services have put restrictions on searches, such as requiring search warrants and refusing to allow inspection of outbound international mail, the article said. Law enforcement officials have accused the delivery companies of slowing down investigations in several cases, the article said.
These companies are concerned over their customers' right to privacy. The Journal cited examples of how drug dealers have used express-delivery services for many years to smuggle drugs, the Journal noted. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Delphi 3Q Earnings Match Estimates
- More LA Workers Strike; MTA Makes Final Offer
- Senate Unmoved So Far on Fuel Surcharge
- Fla. Troopers Asked to Cut Fuel Use
- EPA's Diesel Fuel Rule Survives Capitol Hill Fight
- AgWaste Diesel Plant Being Built in B.C.
- California Court Affirms Ford Recall Order
- UPS Names COO, CFO
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