CNF Transportation (CNF) reported third-quarter earnings Wednesday of 66 cents per diluted share, down 15% from the same quarter of 1999 and slightly higher than analysts' estimates.

The earnings drop was expected by the company due to lower profits at Emery Worldwide, CNF's air freight carrier, which were a result of lower domestic business, CNF President and CEO Gregory Quesnel said.

CNF is a management company with businesses operating in regional trucking, air and ocean freight, customs brokerage, global logistics management and trailer manufacturing. Transport Topics

3Q Income Half of Year Ago for Hub Group

Citing "softness in demand for truckload services" during September and investments in technology, the big third-party cargo handler Hub Group Inc. (HUBG) said it earned 20 cents per share in the third quarter, down from 41 cents in the 1999 quarter.

Hub is a major North American freight management company, involved in intermodal, truckload, less-than-truckload, rail-car and air freight shipments, plus logistics and distribution.

Lombard, Ill.-based Hub's chairman, Phillip Yeager, said the September weakness produced "disappointing revenue growth in both the intermodal and brokerage segments" of Hub's operations. He added that Hub is spending money on e-commerce and technology, plus for "strategic investments" aimed at the long term. Transport Topics

Bridgestone/Firestone to Lay Off 450, Cut Back Production

Bridgestone/Firestone (BGT-BER) will try to compensate for slumping Firestone sales by cutting production at three U.S. plants and laying off 450 workers at its Decatur, Ill., plant, Reuters reported Tuesday.

Production will be halted for 28 days at Bridgestone/Firestone's LaVergne, Tenn., and Oklahoma City, Okla., plants and for 14 days at the Decatur plant, the story said. The layoffs in Decatur, effective Oct. 29, equal about one-fourth of that facility's workforce, AP added.

Firestone sales have decreased mainly because of an ongoing safety investigation that has led to a 6.5-million-tire recall. Transport Topics

C.H. Robinson Beats Industry Slump for Strong 3Q

C.H. Robinson, (CHRW) a global provider of various transportation and logistics services, reported increases in net income for the third quarter ending Sept. 30.

The company reported earnings of 43 cents per diluted share for the quarter, up from 34 cents in the same period of 1999 and in line with analysts' estimates.

C.H. Robinson Chairman D.R. Verdoorn called it a "solid quarter" for the company, despite slowdowns in certain areas of the economy. Transport Topics

Weak Market Affects Rush Enterprises 3Q

The weak North American heavy truck market continued to wreak havoc on industry earnings, as Rush Enterprises (RUSH) announced its third quarter earnings dropped 50% over the same period in 1999.

Rush reported earnings of 30 cents per share, down from 61 cents a year ago. That figure is in line with analysts' estimates for the quarter, which ended Sept. 30.

"The oversupply of used trucks, high fuel prices and increased interest rates have negatively impacted earnings," said company Chairman W. Marvin Rush. "We expect industry conditions to continue to weaken and have taken the steps necessary to operate in this environment."

Rush Enterprises operates a major North American network of Peterbilt heavy truck dealerships, as well as John Deere construction equipment dealerships in Texas and Michigan, and two farm and ranch superstores. Transport Topics

U.S. Xpress Earnings Drop in 3Q on Fuel Costs

Chattanooga, Tenn.-based U.S. Xpress, (XPRSA) provider of expedited and time-definite truckload services, saw third-quarter earnings fall over a year ago due to rising fuel costs.

The company reported earnings of 10 cents per share, down from 14 cents in the same quarter in 1999 and slightly below average analysts' estimates of 11 cents per share.

The decrease in earnings was due mainly to a 30% rise in fuel costs throughout 2000, U.S. Xpress' statement said. Co-Chairmen Max Fuller and Patrick Quinn said the company will focus on improving utilization, driver retention and rate increases to improve earnings. Transport Topics

M.S. Carriers 3Q Down 45% From 1999

Irregular-route truckload carrier M.S. Carriers, Inc. (MSCA) reported third-quarter earnings of 37 cents per diluted share, a 45% decrease from earnings per share in the same quarter of 1999.

Those earnings are just below average analysts' estimates of 38 cents per share for the quarter.

"Our third quarter 2000 results were negatively impacted by lower equipment utilization and sharply higher fuel costs," said M.S. Carriers Chairman Mike Starnes. "Due to a soft freight environment, the fleet is experiencing lower miles per week and an increased percentage of non-revenue miles." He added that revenue per truck per week was down 7% for the quarter over the third quarter of 1999. Transport Topics

Markets Shake Amid Inflation, Housing News

U.S. financial markets, having been battered on Tuesday, were taking more hits early Wednesday after the government reported September inflation was higher than expected while housing starts grew by less than analysts had anticipated.

The inflation news adds to market worries that the Federal Reserve might once again raise interest rates to fight price pressures. The biggest reported concern centered on the Consumer Price Index's "core" rate, which strips away the impact of volatile food and energy prices. It rose by 0.3% last month, the largest gain since March; the markets were prepped to expect just a 0.2% increase.

Housing starts rose 0.3% last month to an annual pace of 1.53 million new units, but the sector remains sluggish. Housing is a key to a wide range of trucking activity, both for construction and then as families buy appliances and furniture for the new homes. Transport Topics

Florida East Coast Below Expectations Due to Restructuring Costs

Florida East Coast Industries (FLA) announced Wednesday its earnings for the third quarter came out to 6 cents per share, a lower-than-expected figure due mainly to costs from a major restructuring project.

Analysts' estimates for the quarter were 24 cents per share, the same earnings figure recorded for the third quarter in 1999.

Florida East Coast Industries, Inc., headquartered in St. Augustine, Fla., holds subsidiaries, two of which – Florida East Coast Railway Company and International Transit, Inc. – provide transportation services such as truckload and rail freight carriage, logistics and intermodal drayage. Transport Topics

Firestone Recall Affects Ford 3Q

The recall of 6.5 million Firestone tires, used frequently on Ford Explorers, caused Ford Motor Co.'s (F) third-quarter earnings to fall to 53 cents per share, the Associated Press reported Wednesday.

While that figure is a 7% drop from the same quarter of 1999, it is above the consensus estimate of 50 cents per share given by First Call/Thomson Financial.

Ford has not put a definite price tag on the cost inflicted upon the company by the tire recall, but President and CEO Jacques Nasser said in a recent television interview that figure would be near $500 million, the story said.

Ford rivals General Motors (GM) and DaimlerChrysler (DCX) did not profit much from Ford's struggles; GM recently reported a 5.5% drop in third-quarter profits while Daimler's Chrysler unit is expected to also post a loss for the quarter, AP added. Transport Topics

Oil Prices Up Almost $1 on U.S. Inventory Concerns

The price of crude oil rose almost $1 in both New York and London Wednesday on concerns regarding U.S. inventories, Bloomberg reports.

U.S. crude rose as much as 93 cents to $33.92 per barrel on the New York Mercantile Exchange, and Brent crude as much as 92 cents to $32.05 per barrel on London's International Petroleum Exchange, the story said.

Supply concerns are growing after the American Petroleum Institute reported late Tuesday that U.S. crude inventories declined 1.1% last week, a surprise drop, as analysts had expected a 1% rise, according to Bloomberg. Comments from Iran's defense minister, Ali Shamkhani, that Islamic countries should use oil as a weapon to support Palestinians in the ongoing Israeli-Palestinian conflict, also raised concerns over possible supply disruptions, the story said. Transport Topics

Ingersoll-Rand to Close Plants

Diversified manufacturing giant Ingersoll-Rand (IR) announced plans to cut 4,000 workers and close 51 facilities, including 18 manufacturing sites by the end of next year.

Ingersoll-Rand owns Thermo-King, which makes refrigeration equipment for the trucking industry, and said that unit was hurt "by a severe decline in the North American truck and trailer market, continued weak truck and trailer results in Europe, and the unfavorable effect of currency."

The company made the announcement as it released third-quarter earnings, which it said were in line with the company's own recently announced expectations. It did not detail the locations of the planned closures.

"We are now operating in a market characterized by a depressed euro, more difficult credit, and oil prices that are double year-ago prices," said company chief Herbert L. Henkel. "We expect continuing soft demand in the North American and European truck and trailer market, as well as slowing activity in both the U.S. construction and auto and light truck markets by the weak trucking market." Transport Topics

DaimlerChrysler Completes Purchase of Mitsubishi Shares

DaimlerChrysler (DCX) has completed its purchase of a 34% stake in Mitsubishi Motors Corp. for 202.4 billion yen (US$1.87 billion), Bloomberg reported Wednesday.

Daimler purchased 500 million new Mitsubishi shares - at a price 10% lower than originally offered due to a recall coverup scandal - and was issued convertible bonds to ensure it will retain its 34% stake when bonds issued previously to other investors mature in 2003, the story said.

Several Daimler officials will start executive positions with Mitsubishi Wednesday, including Rolf Eckrodt as the company's chief operating officer, Bloomberg noted. Transport Topics

Dura Automotive 3Q Hurt by Weak Market, Production Cuts

Dura Automotive Systems (DRRA) – which make driver control, door and window systems and engineered mechanical components for the heavy truck, automotive, recreational vehicle and mass transit markets – announced Wednesday its third-quarter earnings fell below 1999 levels, as expected.

The company recorded earnings of 59 cents per share, down from 65 cents a year ago. That decline was in line with Dura's expectations outlined in a Sept. 7 statement, and was attributed to a weaker recreational vehicle market, declines in European currencies and production cuts related to the Firestone tire recall. Transport Topics

Headlines From Yesterday's P.M. Briefing

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