A.M. Executive Briefing - Oct. 30
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Supreme Industries' 3Q Earnings, Revenues Slide
Supreme Industries Inc. (STS), a manufacturer of specialized vehicles and truck bodies, Monday announced lower third-quarter revenues and earnings. Citing an unusual shipment pattern to its fleet customers, the Goshen, Ind.-based company saw revenues slide from $67 million a year ago to $54.0 million. The company also reported net earnings of $0.11 per diluted share, compared to net earnings of $0.26 per share last year.
Omer Kropf, president of Supreme Industries' operating subsidiary Supreme Corp., said last year's shipments made 1999's third quarter particularly strong compared to this year. "It appears that customer concern over the direction of the economy and rising fuel costs are currently slowing demand for our products," he added. Transport Topics
P.A.M. Transportation Services Reports Lower 3Q Earnings, Income
Tontitown, Ark.-based Professional Transportation Group (PTSI) late Friday reported a third-quarter net income of $0.16 per diluted share, down significantly from $0.33 per diluted share posted a year earlier.The company said operating revenues for the quarter were down slightly ($47.1 million vs. $51.2 million a year ago) but operating income dropped from $6 million to $3.3 million. Consequently, the carrier's operating ratio rose from 88.2% to 92.9%.
.A.M. President Robert W. Weaver said the results were due to higher fuel prices and the inability to retain drivers. "We have now made large strides in driver recruitment and utilization has improved substantially," he said.
P.A.M. Transportation Services is an irregular route, common and contract carrier hauling general commodities throughout the continental United States as well as Ontario and Quebec. Transport Topics
U.S. Container Maker Greif Buying Netherlands-based Royal Packaging
Royal Packaging Industries Van Leer NV, which makes bulk shipping containers as well as steel, fiber and plastic drums, will be bought by Greif Bros. (GBCOA), which makes intermediate bulk containers, the Wall Street Journal said Monday.The $500 million sale will include about $120 million in debt and other obligations, the Journal said. Greif Chief Michael J. Gasser said his company would strengthen its position in Europe, Asia and Latin America as a result of the sale, but did not say what percentage of the U.S. or world markets Greif would wind up controlling.
In addition, Greif provides total packaging services, including complete container handling, logistics, and management and value-added services such as reconditioning of plastic drums and intermediate bulk containers, inventory management, and drum filling.
Royal Packaging is based in Amsterdam, the Netherlands. Greif is based in Delaware, Ohio. Transport Topics
Cummins Unveils Electronic Diesel for Walk-In Vans
Truck engine maker Cummins Inc. (CUM) announced Sunday that it has launched a fully electronic four-cylinder diesel engine, a product the company said will provide customers with more power and better fuel economy than a previous design. This new 16-valve design is aimed at the light- and medium-duty truck market, specifically for the walk-in vans used by the baking, beverage-supply, vending, truck rental and food delivery businesses.
The engine features a rear-mounted gear housing, fuel pump and accessory drive, which Cummins said makes it quieter than its predecessor model.
Company officials also said the new engine is more durable, and can run 15,000 miles between service intervals compared with 6,000 miles in the previous engine. Daniel P. Bearth, Transport Topics
Slater Announces Highway Safety, Discretionary Grants
U.S. Transportation Secretary Rodney Slater announced Friday that $148 million in highway safety grants and $200 million in discretionary funds have been granted to states, territories and the District of Columbia.The highway safety grants are authorized by Section 402 of the Transportation Equity Act for the 21st Century. At least 40% of that money must go to local and community projects in areas such as drug and alcohol countermeasures, police traffic services, speed control, and roadway safety.
The Federal Highway Administration's discretionary funds go to 401 infrastructure projects in six categories - public lands highways, ferry boats and terminals, scenic byways, historic covered bridges, the Innovative Bridge Research and Construction Program and the Transportation and Community and System Preservation Pilot program. Transport Topics
Britain May Offer Truckers Fuel Relief
When the British government outlines the 2001 national budget Tuesday, it may include some form of relief from high gas and diesel prices, the Journal of Commerce Online reported Friday.The government, unlike its counterparts in France, Italy and other European countries, refused to offer concessions to truckers when they staged a crippling protest in September, the story said. Finance Minister Gordon Brown, however, has secretly met with members of the trucking industry, leading to speculation that he will introduce a fuel tax cut as well as a reduction in the annual truck license fee, the Journal noted.
Truckers and farmers set a deadline of Nov. 13 for action on the fuel prices; they could start another protest if their demands are not met at that time, the story said. Transport Topics
DaimlerChrysler To Idle Seven Plants
DaimlerChrysler (DCX) will idle seven U.S. and Canadian plants starting Monday as an effort to cut back its vehicle inventories, the company announced Friday.Sales are lagging for Chrysler, the U.S. arm of the vehicle maker, and the company has a large inventory of unsold vehicles. About 20,000 workers at DaimlerChrysler's Warren, Mich.; Fenton, Mo.; Toledo, Ohio; Newark, N.J., Belvidere, Ill., and Bramalea and Windsor, Ontario plants will be idle for a week but will receive 95% of their regular pay, the company said.
Production of Dodge Ram pickups and vans, Dakota pickups and Durango sport-utility vehicles and Jeep Wrangler SUVs will be affected by the shutdown. The cutbacks are likely to have an impact on auto haulers. Transport Topics
Headlines From Friday's P.M. Briefing
- Grupo Dina Files Charges Against Western Star
- Conaway Named Con-Way Now President, CEO
- Qualcomm, Xata Combine Efforts for Onboard Data Collection
- West Virginia Truck-Weight Inspectors Shift to Interstates
- Eaton Corp. to Buy Out Japanese Joint-Venture Partner
- Mexico Now Allowing 53-foot Trailers
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