About 1,600 truck drivers and warehouse workers from a California Safeway (SWY) distribution center went on strike Wednesday, after negotiations between Summit Logistics, which operates the warehouse, and Teamsters Local 439 broke down, Reuters reports.

No new negotiations are scheduled, the story said. The workers have rejected two Summit contract offers, which included a proposed 4.8% annual pay raise, Reuters said.

The Summit distribution center serves 246 Safeway supermarkets in California, Nevada and Hawaii; Summit said it expects no supply disruptions as it has already begun to install replacement workers, the story said.

A few altercations broke out Wednesday between strikers and replacement workers at the warehouse, Summit President Martin Street told local radio, but only a few minor injuries resulted. Transport Topics

Yellow Corp. Tops 3Q Expectations

Overland-Park, Kan.-based trucking giant Yellow Corp. (YELL) said it earned 80 cents per share in the third quarter, up from 64 cents a year earlier and topping the Wall Street consensus by a penny, CBS MarketWatch said. Yellow had said Sept. 25 that it should meet or top then-consensus estimates of 71 cents.

The Yellow Freight System unit, a huge player for shipments of less-than-truckload size that are consolidated at regional hubs, enjoyed "continued strong performance," said Bill Zollars, Yellow's chairman, president and chief executive. That, he added, "has helped put us in excellent position to achieve our best full-year financial results since the early 1980s."

Zollars added that "performance of our regional carrier group began to rebound in the third quarter, particularly at Saia. Our Internet joint venture, Transportation.com, is on a rapid growth track with the launch of a succession of online service offerings and substantial increases in customers. It was a very successful quarter on a number of key fronts."

Yellow Freight's operating ratio of expenses to revenues – a key industry measure of efficiency – was 94.5 in the third quarter, improved from 96.1 a year earlier. The company noted that it "continues to open a series of corridor hubs that further enable the company to dramatically increase its two-day and three-day service." Transport Topics

High Prices, Low Demand Hit Covenant 3Q

Covenant Transport's (CVTI) third quarter earnings fell in below both 1999 levels and analysts' estimates, the company said Wednesday.

Covenant reported earnings of 22 cents per share, a 51% drop from the third quarter of 1999 and just below the average analysts' estimate of 23 cents per share.

Company Chairman David Parker said the lower earnings were the result of near-record-high fuel prices and lower freight demand.

Covenant is a truckload carrier offering just-in-time and other transportation services. Transport Topics

Knight 3Q Up Despite Fuel Costs

Knight Transportation Inc. (KNGT), a general commodities truckload carrier, said Wednesday that, even with fuel costs cutting 5 cents per share from its third quarter earnings, net income still increased 19.2% over the same quarter in 1999.

Knight reported earnings of 31 cents per share, matching analysts' estimates for the quarter. The company also noted it was its 41st consecutive quarter of year-over-year growth in net income.

Knight covers much of the United States through regional operations in Phoenix, Salt Lake City, Indianapolis, Charlotte and Katy, Texas. The company's operations also include John Fayard Fast Freight Inc. of Gulfport, Miss. Transport Topics

UPS Beats 3Q Estimates

United Parcel Service (UPS) reported third-quarter earnings of 60 cents per share, up from the year-earlier quarter and above the average estimate of 58 cents from First Call/Thomson Financial, Bloomberg reported Thursday.

While the cost of jet fuel rose 59%, UPS overcame the increased expense through a 1.25% rate increase implemented in August, the story noted. Transport Topics

Ryder 3Q Earnings Up 9%

Logistics and transportation management service provider Ryder System Inc. (R) reported Thursday its third-quarter earnings increased 9% from the same period of 1999, to 60 cents per diluted share from 55 cents.

That topped the average analysts' estimate for Ryder's third quarter, which was also 55 cents.

The slumping North American truck market made an impact on Ryder's earnings, as the company took a pre-tax charge due to its inventory of unsold Class 8 trucks, which consists of units previously used by customers of Ryder's commercial lease and short-term commercial rental programs. Transport Topics

Transport Corp. 3Q Earnings Down

Transport Corp. of America (TCAM), a truckload carrier and logistics service provider, announced Thursday its third-quarter earnings dropped from 31 cents per diluted share in 1999 to 31 cents per diluted share in 2000.

The company also reported a current operating ration of 93%, which is around the industry average during a time of high fuel prices and other factors cutting into profits. Transport Corp. President Robert Meyers said record high fuel costs were offset somewhat by the company's fuel surcharges. Transport Topics

Old Dominion 3Q Meets Company Expectations

Old Dominion Freight Line (ODFL) Chairman Earl E. Congdon said Thursday the company's third-quarter earnings were "firmly within the anticipated range" of growth.

Old Dominion, a general commodities, less-than-truckload carrier, reported earnings of 52 cents per diluted share, up one cent from the year-ago quarter but just below analysts' forecasts of 58 cents per share. The company also said its operating ratio for the quarter was 93.9%, a solid figure in the current market.

Congdon said the company will continue to boost its freight density in areas where it has recently expanded operations. Transport Topics

Marten 3Q Within Early Company Forecast

Wisconsin-based truckload carrier Marten Transport (MRTN) announced Thursday its third-quarter earnings came out to 41 cents per diluted share, within the company forecast issued in September.

That figure is down 5 cents from the third quarter of 1999, and 3 cents below analysts' estimates for the quarter.

"The continued rise in diesel fuel prices, particularly during the last weeks of the quarter, and a decline in our equipment utilization level resulted in a higher operating ratio than last year," said Randolph L. Marten, company president and chairman of the board. "The continuing industry-wide problem of recruiting and retaining sufficient numbers of qualified drivers was a primary factor in our lower equipment utilization rate in the third quarter." Transport Topics

Consolidated Freightways Takes 3Q Downturn

Consolidated Freightways (CFWY) reported Thursday third-quarter earnings of 6 cents per share, down from 21 cents per share in 1999's third quarter. Those earnings, however, are slightly above analysts' estimates for the quarter.

CF President Pat Blake said a "slight economic downturn" affected the company's momentum in the quarter.

Consolidated Freightways Corp. is parent to less-than-truckload carrier Consolidated Freightways, third party logistics provider Redwood Systems, Canadian Freightways Ltd., Mexican joint venture Transportes CF Alfri-Loder and air freight forwarder CF AirFreight. Transport Topics

Overnite Doubles Net Income

Overnite Transportation Co., the less-than-truckload trucking subsidiary of Union Pacific Corp. (UNP), announced Thursday its net income for the third quarter doubled over 1999, to $15 million from $7.5 million.

The company's operating ratio also improved 3.9% to 93.2%, the lowest in 24 quarters.

In recent months, Overnite has expanded its Advantage Overnite service, offering 100% next- and second-day service to 32 states as well as almost 100% of Canada through its Advantage Canada service. Overnite President Leo Suggs cited these improvements as reasons for Overnite's growth. Transport Topics

Oshkosh Claims New Diesel-Electronic Technology Boots Fuel Economy 40%

Oshkosh Truck (OTRKB) claimed a 40% increase in fuel economy from its diesel-electronic propulsion technology, unveiled this week at the U.S. Army's annual exhibition in Washington.

Significant reductions in emissions and increased reliability were touted by the Oshkosh, Wis.,-based company, which participates in the 21st Century Truck Initiative.

Oshkosh plans to integrate this new truck propulsion technology into specialty trucks for defense and commercial customers.

The company intends to make ProPulse technology available in its line of aircraft rescue and fire fighting vehicles within two years. Transport Topics

NY Transportation Bond Initiative Criticized

A private fiscal watchdog told New York voters to reject the state's $3.8 billion transportation bond act, according to Bloomberg, which quoted the New York Times.

The Citizens Budget Commission' report was not the only one expressing concern. The city-financed Independent Budget Office, in a separate report, expressed fear that the debt load for the state could be pushed dangerously high.

The bond would fund highway and bridge improvements, as well as subway and commuter rail projects. Transport Topics

Roadway Enhances Web Site

Roadway Express (ROAD) is improving its Web site, the company announced Wednesday.

An interactive online bill-of-lading and e-mailed shipment status updates are now available on my.roadway.com. Customers can create and saving customized reports, viewing them online.

Roadway, based in Akron, Ohio, provides seamless service between all 50 states, Canada, Mexico and Puerto Rico with export services to 66 countries and six continents. Transport Topics

GM's OnStar Expects 800,000 Subs by Year's End

General Motors' OnStar navigation and vehicle communication unit will have about 800,000 subscribers by year's end, the company chairman said, according to Bloomberg.

That would nearly double the current subscriber number. But the system will be installed in about 1 million vehicles at that point, including light trucks, Chairman Jack Smith said in Detroit during an automotive electronics conference.

Sun Microsystems said Monday that it would help GM develop advanced services for OnStar.

The system will soon include capacity for personal calls, as well as traffic, weather, news and some stock information, Bloomberg said. Transport Topics

Chile Driver Strike Continuing

Yesterday marked the second day of a truck driver strike in Chile, according to Bloomberg. Protesting drivers want fuel taxes lowered, but so far the government has refused to negotiate, Bloomberg said.

Delivery of exports is continuing, and supplies to retail stores are holding up.

Although police have pegged the number of parked trucks at 2,000, trucking companies have said three times that many are participating. Transport Topics

GKN Buying Boeing St. Louis Unit

The military place structures unit of Boeing Co. (BA) will be bought by GKN Plc, a an aerospace and automotive parts maker based in the United Kingdom.

GKN is cutting 600 jobs and closing parts plants in Carson, Calif., Wallingford, Conn., and Avonmouth, England as it reorganizes.

The Boeing unit employs 1,200 workers and is based in St. Louis.

Of GKN's 4.64 billion British pounds in sales last year, half came from parts for car and truck drive trains and auto engine parts made from powdered metal, according to Bloomberg. Aerospace parts accounted for about a third. Transport Topics

Headlines From Yesterday's P.M. Briefing

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