A.M. Executive Briefing - Oct. 3
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U.S. Diesel Prices Drop After Setting All-Time High
The U.S. national average diesel price, after rising steadily in recent months and setting an all-time high the previous week, dropped 3.2 cents last week to $1.625 per gallon, the U.S. Energy Information Association reports.Most regions reported decreases of in their pump prices between one and three cents, with the Midwest reporting the biggest drop at four cents to $1.589 per gallon, the report said.
The Rocky Mountain region and California still reported slight increases of one cent to $1.742 and .6 cents to $1.898, respectively, according to the EIA. Transport Topics
House-Senate Panel to Meet on Transport Bill, Driver Hours
A conference committee empowered to smooth out differences between Senate and House bills on federal transport funding was slated to meet Tuesday morning, and their vote should lock in a tentative deal on truck and bus drivers' hours of service.As reported last week, conferees had agreed that the Department of Transportation could continue in the next fiscal year to develop its plan to reform current federal driver hours rules, but could not implement any changes at least through next September.
The behind-the-scenes deal, though, does not become formal until the conference panel votes. At that point, it would be in a final transportation appropriations bill sent on to both chambers to accept, and from there to the president to sign into law.
DOT has proposed a sharp cutback in the number of hours that drivers could be behind the wheel in a 24-hour period, as a way to cut accidents from driver fatigure. This has prompted widespread opposition from groups repreenting both trucking companies and drivers. Transport Topics
Hub Group Expects to Fall Short in 3Q, 4Q Earnings
Hub Group Inc. (HUBG), a major third-party freight transportation management company, said Monday it expects to fall short of analysts' estimates for both its third- and fourth-quarter earnings. The company said it expects third-quarter earnings between 17-21 cents per share. Analysts' consensus estimates from First Call/Thomson Financial for the quarter was 43 cents a share, according to Reuters.
Hub Group also said it expected the factors that hurt third-quarter results - primarily sharply reduced earnings for its Distribution Services subsidiary and increased costs from its new operating system and e-business applications - would continue to negatively affect earnings for the rest of the year.
Based in Lombard, Ill. near Chicago, Hub offers intermodal, truckload, less-than-truckload, railcar, air freight, international and related logistics and distribution services. Transport Topics
Tower Issues 3Q Warning, Undergoes Restructuring
Parts supplier Tower Automotive (TWR), a Michigan-based provider of assemblies and modules for a variety of vehicle types, warned Monday it expects lower-than-forecast earnings for the third quarter, and said it was undertaking several restructuring moves.Tower said it expected earnings between 20-25 cents per share for the quarter; average estimates from analysts polled by First Call/Thomson Financial were around 42 cents, Bloomberg reported.
The company also will close its Kalamazoo, Mich., stamping facility as it cuts back in that area of operations. This will eliminate about 800 jobs, Tower said.
Tower said it is selling it Roanoke, Va., heavy truck rail business to Metalsa S. de R.L., for $55 million in cash and possibly as much as $30 million in profit incentives. Transport Topics
LoJack Corp. Names Farris CFO
LoJack Corp. (LOJN) announced Tuesday it has named Keith Farris vice president and chief financial officer.C. Michael Daley, company chairman, said of Farris, "We feel that his experience in international operations as well as the operation of start-up activities with companies will be a timely asset to LoJack."
Joseph Abely, company president and chief operating officer, had also been serving as chief financial officer. He will retain his previous duties, the company said.
LoJack Corp. produces a system used by law enforcement officials to track, locate and recover stolen vehicles. Transport Topics
3PLex Names New President/COO
Online transportation service provider 3PLex.com, of Cambridge, Mass., announced Monday that Greg Pope has been named company president and chief operating officer.Pope will oversee the implementation of 3PLex's overall business plan as well as continued delivery of the 3PLex Transportation Operating System, the company said.
3PLex offers Internet technology which allows third-party logistics firms and motor carriers to automate business processes, connect to shippers and carriers and provide value-added services. Transport Topics
Some Break With L.A.'s Striking Bus Drivers
Los Angeles' Metropolitan Transportation Authority supervisors and mechanics planned to return to work Tuesday, though it was uncertain whether that would allow MTA to resume reduced bus and rail service, the Los Angeles Times reports.The two unions representing those workers are calling this a seven-day "cooling-off" period and will reevaluate their stance after those seven days, the article said.
As to the strike's impact, the Times said it is strongly affecting traffic and business. Traffic on L.A. freeways, already some of the nation's busiest as an important freight route between the city and nearby shipping ports, is up 5% while city traffic is up 8%, the article said.
The strike has also cost city businesses an estimated $40 million, the Times reported. Transport Topics
Rush Enterprises Diversifies More With Rocking H Trailers
Rush Enterprises (RUSH), which operates a network of Peterbilt heavy-duty truck dealerships in North America, has added to its varied rental and sales network with the acquisition of horse and cattle trailer retailer Rocking H Trailers of Denton, Texas, the company announced Monday.Rocking H was acquired for about $333,000 in cash and will operate as a Rush Retail Center, the company said.
Rush also has John Deere construction equipment dealerships in Texas and Michigan, and two farm and ranch superstores in Texas. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Manufacturing Activity Contracts for Second Month
- Several Drug-Testing Labs Being Inspected
- Argentina's Truckers Begin Strike Over Fuel Costs
- CSX Loses Appeal to Overturn Punitive Damages
- Navistar Shares Up on Reported Paccar Offer
- ArvinMeritor Exceeds Cost-Saving Goal
- FMCSA Probes Reports of Illegal Drivers in Des Moines
- Mexico Evacuates Oil Workers From Storm Path
- EGL, Circle Complete Merger
- Bridgestone Reportedly to Seek Resignation of U.S. Head
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