A.M. Executive Briefing - Oct. 20
This Morning's Headlines:
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Evergreen Agrees to Settle Lawsuit
The class-action lawsuit by Port of New York and New Jersey trucking companies against Evergreen America Corp. has resulted in a settlement agreement by Evergreen, which did not admit doing anything wrong.Among the claims in the Dec. 11 lawsuit was that Evergreen had charged for fixing equipment but did not actually fix it. It was also alleged in the suit that Evergreen said it would keep the truckers that were questioning their bills out of the terminal if they did not pay them soon.
Yang Ming Marine Transport, Solar International Shipping Agency, and Newport Systems are the defendants in a comparable suit. Journal of Commerce Online (10/20/99) ; Brennan, Terry
HPD Cracks Down on Trucks
Thirty-two trucks were taken out of service in Houston on Monday, the initial day of operations for the truck-enforcement task force of the Houston Police Department. Police Sgt. C.J. Klausner says that works out to roughly 58% of the 55 trucks inspected, while "the national average is 28 to 29 percent."In addition to problems with the trucks, there were problems with the truckers, he says; there were three without drivers' licenses and some "even had outstanding warrants."
andom truck inspections by the task force on selected freeways in the city will take place over the coming two weeks. The state Department of Public Safety certified the eight task force members to do federal Transportation Department Level One inspections.
Numerous truck accidents led to the creation of the task force, which Texas Motor Transportation Association President Bill Webb says was proposed by his association. Houston Chronicle (10/19/99) P. 1A; Asher, Ed
P.A.M. Transportation Services, Inc. Announces Results for the Third Quarter Ended September 30, 1999
P.A.M. Transportation Services, which operates in the continental United States, Ontario, and Quebec, says its third-quarter net income was $2.8 million, up from $1.9 million in the year-earlier quarter, with diluted earnings per share rising to 33 cents from 22 cents.Third-quarter operating revenue was up 50.3% to $51.3 million and operating income up 50% to $6.1 million, while the operating ratio was steady at 88.2%.
For the first nine months, net income was $8.9 million, up from $6.2 million in the comparable 1998 period, with diluted earnings per share rising to $1.05 from 74 cents. Operating revenue for the first nine months was up 48% to $156.4 million and operating income up 47.9% to $19.3 million, and the operating ratio was steady at 87.7%. PR Newswire (10/19/99)
Trucker Injunction Continued
Judge Bruno Bernard of the Quebec Superior Court on Sunday continued until Nov. 3 the Oct. 8 injunction against road demonstrations by truck drivers in the province.Responding to complaints from attorneys for the drivers, Bernard changed the language of the injunction to say police officers take necessary actions to enforce the injunction rather than allowing any action allowed by law, such as arresting people suspected of trying to break the injunction.
Attorneys for the government will try to have the court order made permanent when the current extension runs out. Montreal Gazette (10/19/99) P. A7
Overnite Employees in St. Louis Petition to Decertify Teamsters
For the second time in 1999, employees at the Overnite Transportation service center in St. Louis have filed with the National Labor Relations Board for decertification of the Teamsters union. The past month has seen three other Overnite service centers' employees petition for decertification. PR Newswire (10/19/99)USA Truck, Inc. Announces Operating Results
USA Truck says its third-quarter operating revenue was a record $40.4 million, an 11.4% rise from the year-earlier figure, while net income was $1.7 million, down 40.1%, and diluted net income per share was 18 cents, down 40%.Operating revenue for the first nine months was $114.7 million, up 5.4% from the comparable 1998 period, while net income was $6.5 million, down 19%, and diluted net income per share was 69 cents, down 17.9%.
The company succeeded in bringing its revenue growth back up and is getting sufficient truckers, and it will now try to bring down recruiting and training expenses, says President and CEO Robert M. Powell. The operating ratio took hits of 2.25% apiece from those expenses and from higher fuel prices, he says. Business Wire (10/19/99)
GATX Announces Record Third Quarter and Nine Month Results
GATX Corp. says it set earnings records in the third quarter and the first nine months of 1999. Third-quarter net income was 42.2 million, up 11% from the year-earlier quarter, and diluted earnings per share were 83 cents, up 9%. The first nine months saw net income of $119.5 million, up 12% from the first nine months of 1998, and diluted earnings per share were $2.36, also up 12%. The company had a 19% annualized return on equity.The railcar-leasing operation Great American Transportation Corp. saw third quarter net income up $3 million to $20 million, due in part to the company's selling 1,700 grains cars.
GATX Capital saw third-quarter net income up to $19.4 million from $17.7 million. GATX Terminals saw third-quarter net earnings up to $6 million from $5.2 million.
GATX Logistics' third-quarter net earnings were up to $1.1 million from $0.6 million.
Due to problems at the Great Lakes, American Steamship's net earnings fell to $0.7 million from $2.7 million. PR Newswire (10/19/99)
Court Scraps Fine Against Columbus Company
Finding that the Federal Highway Administration did not obey regulations, the U.S. Appeals Court for the 6th Circuit threw out a fine levied against Columbus, Ohio-based Arctic Express by the FHWA. While ascertaining which evidence led to the fine, the FHWA did not do so according to the rules, the court found.Arctic Express attorney David Ferris says the company has made it through some safety audits by the federal government since the one that discovered record problems and led to the company's 1993 agreement to check up on truckers' logbooks. Associated Press (10/19/99)
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