A.M. Executive Briefing - Oct. 25
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Samsung Left Hanging After Renault Halts Purchase Talks
Samsung Commercial Vehicle Co. faces an uncertain future after Renault SA (13190-PAR) pulled out of talks to buy it, Bloomberg reported Tuesday.The European carmaker withdrew from the negotiations on Oct. 10, saying it would have been burdened by a second takeover.
Renault already bought 70% of Samsung Group's car business earlier this year.
Lower North American Demand Means Lower 3Q for Volvo
Volvo (VOLVY), the world No. 3 truck maker, reported Wednesday its third-quarter profit fell 65% from the same period of 1999, due mainly to lower demand in North America, Bloomberg reported.Volvo's earnings fell to 1.10 kronor ($0.11) per share from 2.40 kronor ($0.24) per share in the third quarter of 1999, the story said. The company, which like many of its truck-making rivals has had to lay off employees and cut back on production, also said its expects demand in the United States to fall 20% in 2000, according to Bloomberg. Transport Topics
Smithway 3Q Drops From 1999 Levels
Truckload and flatbed carrier Smithway Motor Xpress Corp. (SMXC) reported zero earnings per share for the third quarter, down from earnings of 12 cents per diluted share in 1999's third quarter. Net earnings for the quarter equaled $21,000.Smithway Chairman, President and Chief Executive Officer William G. Smith said this performance was consistent with expectations, adding that lower freight demand, higher fuel prices and insurance costs, a depressed used-truck market and a lower number of available drivers "has created a very difficult operating environment for our entire industry." Transport Topics
BP, Marathon, Vitol Get SPR Oil
Oil from the Strategic Petroleum Reserve that was pulled back from entrepreneurs was awarded to three companies, the Wall Street Journal said Wednesday.A BP Amoco (BP) subsidiary got three million barrels, and 2.5 million barrels went to Vitol SA, a trading company based in Houston. Marathon Ashland Petroleum got 1.5 million barrels.
The government estimates the oil release will provide 3 million to 5 million barrels of distillate, which includes heating oil and diesel fuel, Bloomberg reported.
Distillate stocks are 22% below levels of a year ago, according to the American Petroleum Institute in Washington, raising concern that refiners won't be able to replenish inventories before cold weather sets in. Transport Topics
Ford Going Beyond Black Box With Interior, Exterior Cameras
Ford Motor Co. (F) seems to be going well beyond the "black boxes" under discussion for heavy-duty trucks, demonstrating a camera that can take a picture of a vehicle's interior every 15 minutes.Before and after photos triggered by a crash would be transmitted from the vehicle to an emergency response center, so dispatchers could decide whether to send one or more ambulances, the New York Times said Wednesday.
Ford also demonstrated cameras that could be mounted around the vehicle to help drivers see around trucks in front of them. People and objects behind the vehicle could be viewed in great detail from rear-facing cameras.
Only police vehicles will be made with the ability to record those images - but other customers may choose to buy re-cording capacity off-the-shelf, the paper said. The company did not say when the new equipment would actually be available. Transport Topics
U.S. Inventories Down, Oil Prices Go Up
Crude oil prices rose almost 2% after the American Petroleum Institute's weekly survey said U.S. distillate inventories fell 0.5% last week, Bloomberg reported Wednesday.U.S. crude oil rose as much as 36 cents to $33.73 per barrel on the New York Mercantile Exchange, and Brent crude rose as much as 56 cents to $32.15 per barrel on London's International Petroleum Exchange, the story said.
The API report said U.S. distillate inventories fell 552,000 barrels last week to 112.1 million barrels, though 10 analysts surveyed by Bloomberg had expected inventories to increase by about 300,000 to 700,000 barrels. Concern that the United States may not have enough heating oil for the upcoming winter months is driving the prices up, the story said. Transport Topics
Arnold Industries 3Q EPS Up 29%
Lebanon, Pa.-based Arnold Industries Inc. (AIND) reported third-quarter earnings of 40 cents per share, up 29% from the 31 cents per share reported for the same period a year ago.Arnold Industries is a holding company of transportation and logistics companies, including New Penn Motor Express, a Northeast regional next-day less-than-truckload carrier; Arnold Transportation Services, an irregular-route and dedicated truckload carrier and Arnold Logistics, an integrated order fulfillment, distribution, contract packaging and reverse logistics service provider. Transport Topics
Increased Expenses Mean Lower 2Q for Clarke
Clarke Inc., a Canadian transportation and logistics service provider, said Wednesday its earnings per share for its second quarter of fiscal 2001 fell to 35 cents from 45 cents in 2000.The company said increased line-haul expenses in its expedited trucking division and costs associated with new technology initiatives played a part in the earnings decrease.
Clarke operates five divisions – Concord Transportation, Clarke Transport, Clarke Road Transport, Clarke Logistics and Clarke Contract Services – which offer truckload, less-than-truckload, intermodal and logistics services. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Canacar Launches Protest Against MS Carriers Subsidiary
- Wabash 3Q Income Cut in Half
- Heating Oil Prices Could Jump With One Cold Snap
- TransCom USA to Supply FedEx With Parts, Related Items
- Truck Maker Cutbacks Contribute to Goodyear 3Q Loss
- Cummins CFO Resigning to Join Online Venture
- Arrest Made in California Safeway Strike
- Tenneco Cuts Jobs on 3Q Dropoff
- Overnite Crosses Into Mexico
- Slow Transportation Sales Force Alcoa Cutbacks
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