A.M. Executive Briefing - Oct. 24
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Diesel Back Down After Hitting Record High
The national average diesel price continued its up-and-down pattern of the past month by dropping two cents to $1.648, the U.S. Energy Information Association reports. The previous week's price of $1.670 had been the highest since the EIA began this data series in March 1994, but prices had dropped in the first two weeks of October.Prices fell in every region except one with the biggest drop coming in the Midwest, where prices fell 3.2 cents to $1.611, the report said. In the Rocky Mountain region, prices rose just slightly, up .2 cents to $1.766, according to the EIA.
In California, where diesel prices are highest, the EIA reported a one-cent decrease, to $1.910. Transport Topics
Motor Cargo Industries Reports 3Q Increase
Less-than-truckload carrier Motor Cargo Industries, Inc. (CRGO) reported third-quarter earnings of 26 cents per diluted share, up from 16 cents per diluted share in the year-ago quarter. Those earnings also topped analysts' estimates of 25 cents per share from Zacks Investment Research.Motor Cargo also reported that the number of outstanding weighted average shares decreased to 6,724,973 shares for the third quarter, compared to 6,933,460 for the third quarter of 1999.
Company President and Chief Executive Officer Marshall Tate noted that Motor Cargo improved its operating ratio to 91.8% from 94.3% in the third quarter of 1999. Transport Topics
Landair Posts 3Q EPS of 5 Cents After 1999 Loss
Landair Corp. (LAND) said Tuesday its third-quarter earnings came out to five cents per diluted share, a turn-around from the third quarter of 1999 when the company posted a loss of 12 cents per diluted share.Landair provides truckload, dedicated and other transportation-related services in the United States and Canada. Its third-quarter earnings fall below analysts' estimates of 14 cents per share given by Zacks Investment Research.
Tim Roach, Landair president and chief operating officer, said the improved third-quarter results came despite a general softness in freight levels and increased diesel prices. Transport Topics
Mideast Concerns Not Affecting Oil Prices
As tensions escalate in the Middle East, the price of crude oil has been little affected by the conflict, Bloomberg reported Tuesday.U.S. crude fell 26 cents from its opening level to $33.50 per barrel on the New York Mercantile Exchange, while Brent crude in London dropped 23 cents below its opening level to $31.86 per barrel on the International Petroleum Exchange, the story said.
These decreases come despite fresh worries in the oil-rich Middle East, where talks between the Israelis and Palestinians have broken down and U.S. servicemen are on their highest state of alert on concerns that more terrorist attacks are possible, the story said.
Also, the American Petroleum Institute's weekly report is due out Tuesday, and major changes in U.S. inventories could affect the oil market, Bloomberg noted.
OPEC is nearing its trigger day for its fourth production increase this year, according to another Bloomberg report. Should prices remain above $28 per barrel through Friday, OPEC will increase its oil output by 500,000 barrels per day, the group's president, Venezuela's Ali Rodriguez, said in the story. Transport Topics
Allied Holdings Posts 3Q Loss
Allied Holdings Inc. (AHI), parent company to several logistics, distribution and transportation subsidiaries serving the auto industry, reported third-quarter losses of 58 cents per share, compared to a 49-cents-per-share loss in the same period of 1999.The company said those figures were in line with revised expectations announced in September. The loss was caused mainly by a loss of business from the Firestone tire recall and production halts by other automotive manufacturers, Allied said. Transport Topics
Unfavorable Conditions Cause Wabash 3Q Earnings Drop
Wabash National Corp. (WNC) Chairman, President and Chief Executive Officer Jerry Ehrlich blamed "unfavorable conditions" for a drop in third-quarter earnings compared to 1999.Wabash reported earnings of 20 cents per share, just below analysts' estimates of 23 cents per share from Zacks Invest-ment Research. The firm earned 43 cents per share in the third quarter of last year.
Ehrlich said a slowing in freight tonnage and increased interest rates and fuel prices have negatively affected the transportation industry.
Wabash makes Wabash and Fruehauf brand truck trailers and RoadRailer bimodal vehicles. Transport Topics
GATX Tops 1999 3Q
GATX Corp. (GMT) reported third-quarter earnings Tuesday of 93 cents per diluted share, up from 83 cents in the same period of 1999 and above estimates of 91 cents given by Zacks Investment Research.GATX offers specialized finance and leasing to targeted industries including rail, air, technology, telecommunications, and marine. Transport Topics
Dodge Hybrid SUV to Get 20% Fuel Boost from Electric Motor
DaimlerChrysler (DCX) plans a hybrid version of its Dodge Durango sport utility vehicle, that will use an electric motor to give the six-cylinder engine slightly better acceleration performance than a traditional eight-cylinder, the Wall Street Journal reported Tuesday.By 2003, the company expects 15% of the Durangos, or about 33,000 SUVs, will be hybrids - boasting a 20% improvement in fuel economy than a conventional Durango with four-wheel drive and the eight-cylinder engine.
It will cost $3,000 more than a conventional Durango.
However, it will still get less than 20 miles per gallon. By contrast, Ford Motor Co. (F) plans a hybrid version of its smaller SUV, the Escape, by that same year. Ford expects Escape to get 40 mpg, the Journal said.
Transport Topics
Laidlaw Gets Approval to Seek Credit
Laidlaw Inc. (LDW, parent of the Greyhound bus company that caries packages as well as passengers, said it has approval from its debt holders to seek new financing.The Burlington, Ontario-based company said Monday it will seek a revolving line of credit of up to $150 million, with a sub-facility of up to $50 million from a group of financial institutions led by Canadian Imperial Bank of Commerce.
It will also seek a revolving line of credit of up to $125 million with a sub-facility of up to $25 million for Greyound Lines from Foothill Capital Corp.
The New York Times said Laidlaw's stock has dropped 95% this year. Laidlaw is also involved with waste hauling and bus services. Transport Topics
NowEx.net Customers Can 'Visually' Track Driver Carrying Parts
Engineers awaiting parts at customer sites will now be able to "visually" track the driver carrying their shipment, NowEx.net claimed Tuesday.The Rocklin, Calif.-based company, founded by two former Federal Express executives, said it is aiming to become the leading e-commerce same-day delivery solution.
The privately held company said it uses "state of the art" software and an "extensive" national network of same day delivery services. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Wabash National Agrees to Purchase Breadner Group
- Oil Prices Down Little as Supply Concerns Ease
- TCT Logistics to Run General Mills Canada Distribution Center
- Sysco Workers Strike in Montana
- Alabama Site Uses Truckers to Test Asphalt
- Asian Import Traffic at Los Angeles-Long Beach Keeps Rising
- Bimodal RoadRailer Links Canada, Southwestern U.S.
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