Executive Briefing - April 17
- Mississippi River Flooding Causing Closings, Delays
- Caterpillar Reports Lower Q1 Earnings
- Heartland Matches Last Year's Earnings
- U.S. Officials Prepare for Foot-and-Mouth Disease
- Kodak, Cisco, Texas Instruments Cutting Jobs
- Comair to Downsize Fleet
- Airborne Warns on Q1 Loss
- Hyundai, Daimler Deny Report of Breakup
- Werner Reports Slightly Lower Q1 Earnings
- Teamsters: Bush’s Border Plan Not Big Enough
- VDOT Warns of Wilson Bridge Delays
Mississippi River Flooding Causing Closings, Delays
A 403-mile stretch of the Mississippi River from Muscatine, Iowa, to Minneapolis was closed to boat and barge traffic Tuesday as it crept out of its banks, the Associated Press reported.The flooding also closed roads and railroad tracks, and caused many people to evacuate their homes.
In Wisconsin, nine counties were under a state of emergency.
The river is due to crest early Wednesday at LaCrosse, Wis., but will stay high for several more weeks. Transport Topics
Caterpillar Reports Lower Q1 Earnings
Equipment maker Caterpillar Inc. (CAT) reported a 37% drop in first-quarter earnings due to weak sales of truck engines and mining equipment.
For the quarter, Caterpillar earned 47 cents per share, down from 73 cents a share last year.
However, the company said its coal mining and heavy construction businesses performed better. Transport Topics
(Click here for full press release.)
Heartland Matches Last Year's Earnings
Dry van truckload carrier Heartland Express (HTLD) said it earned 35 cents per share for the first quarter of 2001, the same amount as the first quarter of last year.While revenues increased 7% during the quarter, high fuel costs, declining equipment values and a tight market for owner-operators negatively impacted the company.
Coralville, Iowa-based Heartland is ranked No. 58 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for full press release.)
U.S. Officials Prepare for Foot-and-Mouth Disease
U.S. officials are preparing for a possible outbreak of foot-and-mouth disease, USA Today reported. The animal virus has killed pigs, cattle and other cloven-hoofed animals in Europe, but is not generally harmful to humans.Hundreds of inspectors have been sent to airports and ports to examine goods entering the United States, the article said. Most of these goods are transferred and carried onto trucks. If the disease spread throughout the United States, it would have a detrimental impact on trucking companies.
There hasn't been a documented case of foot-and-mouth disease in the United States since 1929.
Current plans for preventing an outbreak include arranging for equipment to move animal carcasses, and suspending environmental regulations to allow for quick disposal of afflicted livestock. Transport Topics
Kodak, Cisco, Texas Instruments Cutting Jobs
Three major companies said this week that the slowing economy is forcing them to cut jobs, news services reported.When companies cut jobs, fewer goods are produced and there are less shipments for trucking companies. Job cuts usually have a negative impact on consumer confidence as well.
Eastman Kodak (EK), which reported a 48% drop in quarterly earnings, said it will cut between 3,000-3,500 jobs worldwide, the Associated Press reported.
While warning that earnings would fall well below estimates, Cisco Systems (CSCO) said an additional 1,000 positions would be eliminated bringing the recent total to 8,500.
In addition, Texas Instruments (TXN) said it plans to fire at least 2,000 employees in response to falling demand for its semiconductor products. Transport Topics
Comair to Downsize Fleet
Comair said that it is eliminating 17 aircraft from its fleet, postponing deliveries of new airplanes and reducing flight schedules to preserve its financial strength.The action comes as a result of the continuing pilots’ strike.
This can affect trucking in several ways. When an air fleet cuts back, it can offer less belly space for air cargo, so trucks will have less business from Comair. But since other airlines and over-the-road trucks could step in, other truck operations can benefit. Transport Topics
(Click here for full press release.)
Airborne Warns on Q1 Loss
Express delivery company Airborne Inc. (ABF) said it expects to report a first-quarter loss that will be greater than the mean of analysts' estimates, which is for a shortfall of 20 cents per share.
The Seattle-based company noted that analysts surveyed by First Call/Thompson Financial had forecast a loss of 15 to 36 cents per share, and Airborne said it expects to report numbers on the lower end of that range on April 23.
Company Chairman and Chief Executive Officer Robert Cline said, "We anticipated the first quarter would be difficult, but shipment volume growth has proven even more challenging due to the slowing economy." Transport Topics
(Click here for full press release.)
Hyundai, Daimler Deny Report of Breakup
Officials at Korean vehicle giant Hyundai said Tuesday that they are negotiating details of a partnership with DaimlerChrysler (DCX), contradicting a report that the German company would drop plans for a joint venture, Bloomberg reported.Kim Dong Jin, Hyundai's president of commercial vehicle operations, labeled as speculation story in Automotive News that the agreement would be dropped (see story, April 16).
Thomas Froelich, a DaimlerChrysler spokesman, told Bloomberg an agreement with Hyundai is an important part of the company's Asia strategy.
DaimlerChrysler touched off the current speculation when it announced last week it would buy Volvo AB's stake in Mitsubishi Motors, raising its own participation in the Japanese company to 37.3%.
Werner Reports Slightly Lower Q1 Earnings
Trucking company Werner Enterprises (WERN) said that it earned 20 cents per share for the first quarter of 2001, down from 22 cents per share during the same period last year.
The company said freight demand weaker than last year, but that it was able to minimize the impact by slowing its fleet growth and reducing debt.
Omaha, Neb.-based Werner is ranked No. 20 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for full press release.)
Teamsters: Bush’s Border Plan Not Big Enough
The Teamsters Union said that President Bush’s request for 80 new federal truck inspectors on the U.S.-Mexico border isn’t big enough to keep unsafe Mexican trucks off U.S. highways, Bloomberg reported.The Clinton administration had suspended the North American Free Trade Agreement trucking provisions in 1995, citing concerns that Mexican trucks didn’t meet U.S. safety standards.
However, in February arbiters ruled the United States must give full access to Mexican trucks, but could enforce all appropriate safety standards.
The Department of Transportation said if fully funded, Bush’s budget request would bring the total number of federal truck inspectors along the border to 140.
Still, the Teamsters said they are concerned that enforcement of safety standards will be nearly impossible because there are too many trucks crossing the border everyday. Transport Topics
VDOT Warns of Wilson Bridge Delays
The Virginia Department of Transportation said vehicles should expect delays starting this week on an important drawbridge for north-south traffic along the eastern United States.The delays will hit traffic in both directions on the Woodrow Wilson Bridge, which spans the Potomac River between Maryland and Virginia, as work begins to replace the draw span deck.
The Wilson Bridge is heavily used by truck traffic moving east of Washington, D.C., on a route between Richmond, Va., and Baltimore.
The schedule of lane closures is:
Southbound
-April 20 at 9 p.m. until April 21 at 10 a.m.
-April 27 at 9 p.m. until April 28 at 10 a.m.
-April 28 at 9 p.m. until April 29 at 10 a.m.
-May 18 at 9 p.m. until May 19 at 10 a.m.
Northbound
-May 4 at 9 p.m. until May 5 at 10 a.m.
-May 5 at 9 p.m. until May 6 at 10 a.m.
-May 11 at 9 p.m. until May 12 at 10 a.m.
-May 12 at 9 p.m. until May 13 at 10 a.m.
According to the bridge’s Web site, about 17,500 trucks cross each day. Transport Topics
