A.M. Executive Briefing - Oct. 19
This Morning's Headlines:
ul>
House Votes to Limit Mexican Trucking Firms' Access on US Roads
In a vote of 415-5, the House of Representatives last week okayed an amendment to the highway safety bill that would give a maximum fine of $25,000 to Mexican firms if their truckers leave the border zones where they are currently restricted.Due to lobbying from unions, who say trucks from Mexico are not safe because there are no rules mandating logbooks, regular inspections, or hours of service, the United States has not met the 1995 Nafta deadline for opening borders for trucks. On the other hand, Mexico contends that its government has a truck-inspection system and its trucks' safety in the U.S. border zones has largely been good.
Arkansas Best Corporation Reports Record Net Income for Common Shareholders with a 114% Increase for the 1999 Third Quarter
Arkansas Best Corp. says it saw $16.1 million net income from continuing operations in the third quarter, up from $9 million in the year-earlier quarter, with net income per diluted common share rising to 67 cents from 38 cents. There was a 114% rise in net income for common shareholders, to $15 million.
arnings from continuing operations for the first nine months was $34 million, up 69% from the comparable 1998 period, with earnings per diluted common share up to $1.46 from 87 cents. ABF Freight System saw third-quarter operating income up 56% to $30.6 million with revenue up 9.7%, daily total tonnage up 3.6%, and LTL tonnage up 2.7%, with its operating ratio falling to 90.8% from 93.5%.
G.I. Trucking Company saw third-quarter revenue of $34.9 million, up 8.1%, with average daily tons up 6.8%, although its operating ratio rose to 99.1% from 97.6%. For the first nine months, G.I. saw revenue up 9.3% over the comparable 1998 period to $101.4 million, and its first-nine-months operating ratio went down to 97.7% from 98.1%.
Clipper saw third-quarter revenue fall 6.3% from the year-earlier period to $29.6 million, but its operating ratio was 97.4%, better than the 101.2% in the third quarter 1998. Treadco Inc. saw third-quarter sales rise 3.4% to $53.9 million with third-quarter operating income of $2.8 million. Treadco's third-quarter operating ratio fell to 94.8% from 97.3%, and its operating ratio for the first nine months dropped to 97.9% from 98.3%. PR Newswire (10/19/99)
Forward Air Purchases LTD Express, Posts Record 3rd Quarter
Forward Air Corp. says it will make its second recent purchase of the air cargo business of a regional trucking firm. This time, it is LTD Express; last month, it was Quick Delivery Service.The company, which carries freight by truck between airports, also announced a third-quarter earnings record: net income was $4 million, a 60% rise from the year-earlier quarter's earnings, with operating revenue up to $42.6 million from $33.4 million. Journal of Commerce Online (10/19/99); Armbruster, William
Dana Announces Third-Quarter Sales, Earnings
The supplier Dana Corp. says it saw a record $3.1 billion in sales in the third quarter, up 6% from the year-earlier quarter, with after-tax operating profits of $172 million, up 27%, and a record net income of $161.5 million, which comes to 97 cents per share, counting $10.5 million in after-tax non-recurring charges. The operating-basis earnings per share were up to estimates at $1.03.For the first nine months, the company saw consolidated sales of $9.9 billion, a 5% rise from the comparable 1998 period, with after-tax operating income of $534 million, up 21%, and net income of $513 million, a per-share net of $3.07. Before non-recurring items, diluted earnings per share for the first nine months were $3.20, up 21%. Southwood J. Morcott, chairman of Dana, says the Heavy Truck Group saw a 10% rise in organic growth due to a good North American market.
President and CEO Joe Magliochetti notes tough conditions in Europe and South America and says in the fourth quarter the company might no longer be able to make up for that with the high North American demand for light and heavy trucks, as production in North America might be going down. But the company is still putting into practice its Five Point Plan, including synergies, divestiture, stock repurchases, and "strategic, bolt-on acquisitions," to sustain growth and up profitability. PR Newswire (10/18/99)
Consolidated Freightways Announces Third Quarter Growth in Revenue and Tonnage
Consolidated Freightways Corp. says its third-quarter revenue was $625.5 million, up 9.5% from the year-earlier quarter, with a net income of $4.7 million or 21 cents a basic share, down from $9.2 million or 41 cents a basic share, and operating income down to $9.7 million from $17.4 million.Overall tonnage for the third quarter is up 3.1%, LTL tonnage up 2.8%, shipments up 5%, and revenue per hundredweight is $16.57, up 4%.
For the first nine months, the carrier saw revenue of $1.77 billion, up 6.3% from the comparable 1998 period, with net income of $14 million or 62 cents a basic share, down from $23.7 million or $1.03 a basic share, and operating income down to $27.9 million from $47.7 million.
The company has improved service in its system, but the carrier did not see as much profit as anticipated from its growth since the shutdowns of two competing LTLs gave it a different mix of freight, says CEO W. Roger Curry. The company has also received an unsecured credit facility, for a 3-year, revolving line of credit, worth $175 million. Business Wire (10/18/99)
Trucking Industry Delivers Safety Message to Area Schools
During the Government Affairs Days, the Road Knights team of the Ontario Trucking Association is giving truck safety presentations for the Canadian Trucking Alliance in schools around Ottawa. A presentation is scheduled for today in Orleans at St. Francis of Assisi School. Canada NewsWire (10/18/99)Free Ride May Soon Be Over for Turnpike Drivers
While traffic has increased 54% in the last 11 months as the Pennsylvania Turnpike waived tolls for the 16 miles between Breezewood and Bedford, the state is running out of the federal money backing the toll waiver program.Waiving the tolls was intended to take drivers off of part of U.S. 30 as construction is going on, but the tolls might have to be reinstituted. But the heaviest construction on U.S. 30 will not be for another two years.
Last year's six-year federal transportation bill, written by Rep. Bud Shuster (R-Pa.), gave the money to the state, but Shuster spokesman Scott Brunner says the toll waivers had to begin right away although construction had not begun. Brunner says Shuster might try to get more money. Associated Press (10/18/99)
© copyright 1999 INFORMATION, INC. Terms of Service
