A.M. Executive Briefing - Oct. 15
This Morning's Headlines:
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10 Indicted in Smuggling Truck Drivers
A federal grand jury in Little Rock, Ark, on Thursday indicted 10 people on charges including racketeering, visa fraud, and alien smuggling related to allegedly bringing truck drivers into the United States from Australia and New Zealand unlawfully. Several U.S. and Australian agencies have been working on the case for a year, and 15 places in both countries were raided in March.Some of the 140-plus truckers brought to the United States for jobs at trucking companies have been deported, and some have been given visas so they can serve as witnesses.
Officials Suspend Traffic-Blocking Inspections
Elizabeth and Union County, N.J., decided to stop holding up traffic with truck inspections for the time being after being asked to do so by Gov. Christine Todd Whitman. The city and county were protesting a deal in which the Port Authority of New York and New Jersey leased 177 acres from Continental Airlines, which then began leasing the land from the port authority.Elizabeth's mayor and the Union County manager allege that the purpose of the deal was so the parcel would no longer be locally taxed and the governments could not condemn and develop it.
Whitman spokesman Pete McDonough says Whitman's request was due to an Oct. 19 meeting on the issue set up by the port authority; the mayor and county manager say they were told they would be backed by the governor at their Tuesday meeting with the chairman of the port authority. Whitman was already set to give a speech to a port truck drivers' organization today. New York Times (10/15/99) P. B6; Smothers, Ronald
Covenant Announces Record Revenue, Earnings and Earnings Per Share
Covenant Transport saw third-quarter revenue of $120.1 million, up 26% from the year-earlier quarter, with net income of $6.7 million, up 23%, and a 22% rise in basic and diluted earnings per share to 45 cents. All three figures were records. The pretax margin was steady at 9.3%.The company's revenue growth for the third quarter and first nine months was more than 25%, and net earnings have seen growth exceeding 20% for eleven quarters in a row, says Chairman, President, and CEO David R. Parker. Parker adds that Covenant has "completed the assimilation of the operations and business" of ATW and has "practically hired all of ATW's company drivers as well as the large majority of their owner-operators." PR Newswire (10/14/99)
Industry Canada: For-Hire Motor Carriers of Freight (Top Carriers) - Second Quarter 1999
The Canadian trucking carriers with yearly earnings of at least C$25 million saw second-quarter operating revenues totaling C$1.58 billion. The average revenue for each carrier was up 3% over the year-earlier quarter, when there were ten fewer carriers in the category. The operating expenses were even at C$1.48 billion, and the operating ratio 0.94, better than the 0.95 ratio for the comparable 1998 period. M2 Presswire (10/14/99)J.B. Hunt Transport Services, Inc. Reports Revenues and Earnings for the Third Quarter of 1999
A rise in fuel and maintenance expenses and holdups in rail service were some of the reasons leading J.B. Hunt Transport Services' net earnings for the third quarter 1999 to fall to $5 million from $10.8 million in the year-earlier quarter. Earnings per diluted share fell to 14 cents from 30 cents.Also blamed for the lower earnings was costs and inefficiencies as J.B. Hunt began to separate its intermodal segment. Third quarter revenue was $523.9 million, up 11%. The segments with the biggest year-over-year revenue growth for the third quarter were logistics and Dedicated Contract Services.
The first nine months of 1999 saw operating revenue of $1.5 billion, up 11% from the comparable 1998 period, while earnings fell to $26.3 million from $36 million. The first nine months' net earnings per diluted share fell to 73 cents from 98 cents. Business Wire (10/14/99)
Swift Transportation Co. Inc. Reports Third Quarter Results
Swift Transportation's third-quarter 1999 revenue was $279.4 million, up 23% from the year-earlier quarter, with net earnings of $18.7 million, up 19.7%, and net earnings per share of 29 cents. The revenue, earnings per share were records.Revenue for the first nine months was $776.9 million, up 22.4% from the comparable 1998 period, with net earnings of $48.3 million, up 23.7%, and net earnings per share of 74 cents. Chairman and CEO Jerry Moyes says a fuel surcharge imposed in the quarter partially made up for higher fuel prices. Business Wire (10/14/99)
Net Value Holdings Inc. Announces Equity Investment in Webmodal, Inc.
The Internet business incubator Net Value Holdings has invested in Webmodal, an Internet transportation concern that concentrates on intermodal. "We are thrilled to be 'seed' round investors in Webmodal, and look forward to working with the management team to build an outstanding global player," says Net Value Holdings Chief Technical Officer Douglas Spink.Net Value Holdings will get an equity stake of roughly 12 percent in Webmodal, which is intended to allow shippers to get intermodal rates and schedules and set up service online. The company will be expanding its offerings over time, says Webmodal founder and CEO Chris Kravas. PR Newswire (10/14/99)
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