Executive Briefing - April 16
- Daimler Reportedly Scrapping Hyundai
- J.B. Hunt Transport Reports Lower Earnings
- Oshkosh Gets Approval on Contract From Marines
- Central Transport Opens New Terminal
- New Highway Could Mean More Tolls in La.
- OPEC Signals Current Oil Prices OK
- Analysts Say More U.S. Refineries Needed
- Amcol Sees Earnings Increase by 1 Cent
Daimler Reportedly Scrapping Hyundai
DaimlerChrysler (DCX) plans to scrap its joint ventures with Hyundai Motor Co. following last week’s decision to raise its stake in Mitsubishi Motors Corp., Reuters reported from a published article.
An article in Automotive News said the German company was calling off talks about several ventures including one involving trucks.
It is unclear if Daimler will sell its 10% stake in Hyundai, which it bought last year for $470 million.
Last week, the company said it was paying $297 million for rival Volvo’s 3.3% stake in Mitsubishi (See story, April 11). Transport Topics
J.B. Hunt Transport Reports Lower Earnings
Dry van truckload carrier J.B. Hunt Transport (JBHT) said Monday that it earned $1.6 million or five cents per share during the first quarter of 2001, compared with $5 million or 14 cents per share during the same period last year.
The company blamed the slow freight market in January and February for the lower earnings. However, in March, the amount of truckloads handled each day was 8.4% higher than in March 2000.
J.B. Hunt is ranked No. 10 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for full press release.)
Oshkosh Gets Approval on Contract From Marines
Specialty truck maker Oshkosh Truck Corp. (OTRKB) said Monday that it received a truck contract from the U.S. Marine Corps.
The contract increases production of the Medium Tactical Vehicle Replacement truck from 60 units per year to more than 140 units per year.
Oshkosh received an additional $266 million to fund the base requirements of the project. Transport Topics
(Click here for full press release.)
Central Transport Opens New Terminal
Warren, Mich.-based carrier Central Transport, which specializes in less-than-truckload freight, said Monday it has opened a new terminal/customer service center in Aurora, Ill.The center will help the company handle pickups and deliveries in the Aurora area that were previously handled in Central’s Chicago office. Transport Topics
New Highway Could Mean More Tolls in La.
Truckers will pay an estimated $5.60 to drive the 35-mile extension of Interstate 49 from Louisiana to Arkansas under a highway proposal to be submitted by La. Gov. Mike Foster, the Associated Press reported.Passenger cars would pay about $2.10 if the plan is approved next month.
The goal of the highway is to stimulate economic development in Northwest Louisiana by making travel easier. Currently, motorists take two-lane state Highway 3 from Louisiana to Arkansas.
Besides additional tolls, the proposal could include revamping the state’s fuel sales tax, which currently stands at 20 cents per gallon. Transport Topics
OPEC Signals Current Oil Prices OK
Oil prices are “satisfactory” at current levels and no new action to curb world oil supplies will be needed before the June 5 meeting of the Organization of Petroleum Exporting Countries, cartel president Chekib Khelil of Algeria said Sunday in a report carried by Bloomberg.That would be good news for the trucking industry, as it suggests that fuel prices may not keep rising this year, as they did in 2000.
In a similar vein, Bloomberg added that Iranian Oil Minister Bijan Namdar Zanganeh also told the Iranian news agency IRNA that oil prices had not experienced a steep decline.
OPEC, which supplies about 40% of the world’s oil, has an agreement to lower its output by an additional 500,000 barrels a day if the special pricing mechanism it uses to measure crude oil prices falls below $22 a barrel. Transport Topics
Analysts Say More U.S. Refineries Needed
Oil industry analysts said that unless more U.S. refineries are built, high fuel prices will continue from many years, Reuters reported.The last oil refinery was built in Garyville, La., in 1976. Since then, tight government regulations and environmental opposition to new plants have prevented construction of more refineries.
The number of refineries have declined in recent years since many plants were unable to make profits while keeping up with environmental regulations, analysts told Reuters.
Currently, oil industry groups are requesting that the Bush administration make it easier to expand refineries.
The Washington Post reported Monday that the administration has created a task force to review investments in new refineries. Transport Topics
Amcol Sees Earnings Increase by 1 Cent
Amcol International (ACO), which operates long haul trucking and freight brokerage businesses, said Monday that it earned $2.9 million or nine cents per share for the first quarter of 2001, compared with eight cents during the same period last year.Although overall earnings increased, the company’s transportation business saw operating profit fall 5% due to higher fuel costs and increased competition.
The company is based in Arlington Heights, Ill. Transport Topics
(Click here for full press release.)
