A.M. Executive Briefing - Sept. 26
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U.S. Diesel Prices Rise Slightly; Some Areas See Decline
Although U.S. diesel prices rose to set another all-time high last week, the rise showed signs of stalling out as the national average price rose just four-tenths of a cent, to $1.657, the U.S. Energy Information Association said.Most regions reported minimal increases of less than a penny at fueling stations. The average price held even with the previous week at $1.629 in the agency's Midwest region, and fell by a small fraction in the lower Atlantic area to $1.600.
Diesel prices rose 3.5 cents in the Rocky Mountain region to $1.732, and dropped three cents in California to $1.892, the EIA noted. (Click here for more fuel prices.) Transport Topics
Yellow Expects 3Q Earnings At or Above Estimates
Giant freight carrier Yellow Corp. - whose trucking and other subsidiaries offer regional, national and international freight services - said Monday it expects earnings for the third quarter to be within or above analysts' estimates.The current analyst consensus is for earnings of 71 cents per share, higher than the 64 cents per share earnings in the third quarter of 1999, the company said. Transport Topics
Swift Says 3Q, 4Q Will Fall Below Estimates
Trucking company Swift Transportation, which specializes in hauling non-perishable food and merchandise, said Monday it expects its third- and fourth-quarter earnings to fall below analysts' estimates, mainly due to high fuel prices.The average estimate from analysts polled by First Call/Thomson Financial is for earnings of 30 cents per share in each quarter, the company said. Chief Executive Officer Jerry Moyes said he expects earnings below those estimates, though he did not specify how far below. Transport Topics
Landstar Expects 3Q Earnings in Analysts' Range, But Sees Charge
Trucking and logistics company Landstar System said Monday it expects earnings to fall within analysts' range of $1.40-1.53 per diluted share for the fiscal third quarter and $5.21-5.38 per diluted share for the year. That figure is excluding non-recurring charges for both the quarter and the year, the company said.However, the company's stock price has fallen further as investors focused on the company's announcement that it expects to take a $1.35 million charge for a pension change, Bloomberg reported. The news service said Landstar shares have declined 44% since April 12.
Landstar operates an over-the-road carrier group, as well as an intermodal unit and logistics unit. Transport Topics
Computer Sciences Wins U.S. DOT Contract
Computer Sciences Corp., a leading consulting and information technology services firm, said Monday it was awarded a contract to give onsite technical support for the U.S. Department of Transportation's John A. Volpe National Transportation Systems Center in Cambridge, Mass.The Volpe Center develops technical, operational and management advances to benefit the transportation and logistics industries.
The contract is for two years, with three one-year options and will be worth $190.5 million if all options are exercised, CSC said. Under the agreement, CSC's Falls Church, Va.-based Civil Group will provide services ranging from detailed technology assessments to operational support for both transportation and logistics management information systems. Transport Topics
DaimlerChrysler, Hyundai May Extend Truck Alliance
DaimlerChrysler may extend a joint truck venture with Hyundai Motor Co., a company it is buying 9% of for $389 million, according to a Financial Times report carried by Bloomberg Tuesday.DaimlerChrysler Chief Executive Officer Juergen Schrempp and Hyundai Chairman Chung Mong-Koo are scheduled to meet this week, although the company would not specify their topic of discussion, the article said.
Talks are expected to focus on the companies' joint venture in commercial vehicles, as DaimlerChrysler may use that to build greater market share in Japan and other parts of Asia, Bloomberg said.
The German vehicle maker also announced Tuesday it has extended its $23-per-share cash tender offer for all outstanding shares of engine maker Detroit Diesel Corp., until Oct. 9. Transport Topics
Roadway Express Income Up 12.4% in Latest Qtr
Truckload and less-than-truckload giant carrier Roadway Express announced Tuesday it experienced earnings of 57 cents per diluted share for the fiscal third quarter that ended Sep. 9. That is an increase of 12.4% for the quarter, over the same period in 1999. The company said these increases came despite slight decreases in both LTL and truckload tonnage. Roadway also said it expects to see the effects of a recently added 5.6% rate increase in its fourth quarter. Transport Topics
Cannon Reports Earnings Loss; Cummins Expects Lower Results
Some parts of the North American truck markets continued to take a hit Tuesday morning, as carrier Cannon Express reported losses per share for the fourth fiscal quarter that ended June 30, and diesel engine maker Cummins said it expects earnings for its third quarter to fall below current estimates.Due in part to increased fuel costs, Cannon reported a loss of 5 cents per share for its fourth quarter after earning 7 cents per share in the same period of 1999. Cannon hauls for shippers of truckload volumes.
For Cummins, the current consensus estimate from First Call/Thomson Financial was 85 cents per share for the third quarter, but the company said it expects earnings to be only around 65 cents. This is due mainly to a rather weak North American truck market, the company said. Transport Topics
West Coast Harbor Truckers Plan Protest Rallies
Truck drivers serving the big West Coast port areas of Los Angeles, Long Beach and Oakland will take part in protest rallies Tuesday that are sponsored by the Teamsters union, the Journal of Commerce Online reports.Tuesday's demonstration will be in advance of international rallies scheduled for Oct. 4 that are aimed at protesting the long hours truckers put in, the article said.
Those demonstrations will occur in 65 countries. In the United States they will target 15 port cities to push for more wages, less hours and fuel surcharges that would be passed on in full to the drivers, a Teamsters spokesman told the Journal. Transport Topics
Transport Funding Bill Reported Stalled on Alcohol Fight
The bill that would fund U.S. transportation programs for the coming year is being held up by a major fight over drunk-driving standards, The New York Times reported Tuesday.A House-Senate conference negotiation on that bill would also determine the fate of the Department of Transportation's proposal to curb truckers' hours of service behind the wheel. A Senate version would ban funds for the DOT rulemaking, while the House version does not address the issue.
The bill covers spending on highways, mass transit, air traffic control and agencies ranging from Coast Guard to highway safety. A conference meeting schedule has not yet been announced.
But the Times story said agreement on the bill has been delayed as lawmakers wrestle over a proposal to impose a tougher standard on states for drunk-driving enforcement.
The Senate bill would require states to penalize drivers whose blood-alcohol level tests at 0.08%, and withhold highway construction funds from states that do not comply. Many states allow a higher percentage of alcohol before considering a driver to be legally impaired. Transport Topics
Trucker Protests cool in Australia, Flare in Germany
Australian truckers ended their blockade of three fuel depots in Melbourne Tuesday, while their German counterparts clogged the streets of Berlin, Bloomberg and Reuters reportedIn Australia, drivers stopped their blockade on an agreement with Victorian State Premier Steve Bracks, who said he would bring drivers' concerns over high fuel costs to federal officials, Bloomberg said. The blockade caused many areas to suffer fuel shortages, the article said.
In Germany, a huge collection of 6,500 trucks, buses and tractors formed a 10-kilometer (six-mile) convoy that blocked Berlin Tuesday, demanding lower fuel taxes that their government again said it would not offer, Reuters said. Transport Topics
Illinois Outfits Interstates With Traffic-Monitoring Cameras
The Illinois Department of Transportation (IDOT) has received $2 million in grants to install cameras, traffic detectors and message boards on its interstate highways over the next five years, the St. Louis Post-Dispatch reported Monday.The system will help monitor traffic and allow emergency crews to respond more quickly and efficiently to accidents or other problems that snarl traffic, the newspaper said.
It will also allow travelers to receive traffic updates through the Internet or wireless technology. Transport Topics
Headlines From Yesterday's P.M. Briefing
- European Union May Follow U.S. Lead, Release Own Reserve
- Oil Prices Down 5% Monday to Six-Week Low
- Slow-Mo Trucker Protest Hits U.S. Midwest
- Early Snowstorm Hit I-80, Stranding Motorists
- U.S. Sets Terms for Tapping SPR
- Greyhound Opens New Terminal
- DOT's Slater Meets With Truck, Bus Industry on Safety
- KLM Cargo Increases Fuel Surcharge
- CitySprint Replaces CEO
- Traffic.com Debuts TrafficPulse Network in Pittsburgh
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