Executive Briefing - April 18
- NYDOT Warns of Border Delays
- Mississippi River Flooding Continues to Stall Freight Traffic
- GM Profit Down, but Beats Estimates
- Delta Says Pilots Will Not Strike
- M.S. Carriers Sees Earnings Fall 76%
- CNF Reports 60% Drop in Earnings
- Volvo Truck Sales Fall 11% in 2001
- Dana Reports Q1 Loss
- Mexican Truckmaker Cuts Jobs, Production
- DOT Says 63,000 Mexican Trucks Crossed in 1999
- AAA: Gas Prices Up 15 Cents in March
- Core Materials in Deal With Peterbilt
NYDOT Warns of Border Delays
The New York Department of Transportation has warned protests during the Summit of the Americas could cause delays or closings of highways and bridges near the border beginning Thursday.Demonstrations are most likely to take place near the Peace Bridge in Buffalo, N.Y., but the Thousand Island and Seaway International bridges in Ontario, Canada, may also be affected.
Leaders of 34 nations in North, Central and South America are gathering in Quebec City this weekend to discuss a free trade agreement for the Western Hemisphere.
The demonstrators will be voicing their opposition to global commercialization. Transport Topics
Mississippi River Flooding Continues to Stall Freight Traffic
The flooding of Mississippi River continued to stall barge and rail traffic Wednesday, as areas from Minneapolis to Muscatine, Iowa, coped with the worst flood in 36 years, the Associated Press reported.
Also, Burlington Northern Santa Fe (BNI) said it was forced to idle many freight trains throughout the Midwest as a result of flood.
The river crested at 16.4 feet at LaCrosse, Wis., as hundreds of shoreline residents evacuated their homes.
Sixteen counties in Minnesota and nine in Wisconsin were under a state of emergency.
The National Weather Service said the river could drop by about a foot by Sunday, but many flooded areas are expecting more rain in the coming days. Transport Topics
GM Profit Down, but Beats Estimates
General Motors (GM) beat analysts’ expectations, but still reported an 88% drop in first-quarter earnings as a sharp fall in U.S. vehicle sales took their toll on the world's largest automaker.
The Detroit-based company said earnings were 50 cents per share, down from a record $2.80 per share in 2000. Analysts had been expecting 26 cents.
U.S. sales fell 7% during the first quarter, and GM cut its North American production of cars and light trucks by nearly 20%.
So far in April, GM said U.S. vehicle sales appear to be even weaker than in March. Transport Topics
Delta Says Pilots Will Not Strike
Delta Air Lines (DAL) said Wednesday that although a quick settlement is unlikely, it said its pilots will not go on strike, Reuters reported.This is important for trucking companies because nearly 60% of air cargo flies in the bellies of passenger planes. Any disruptions in flights would push much of the air cargo that normally flies on planes to trucks.
The company blamed labor issues as a main reason for its fourth-quarter loss of $1.02 per share, compared to a gain of $1.27 per share last year.
Delta said the strike by Comair’s pilots, which began on March 26, reduced earnings per share by an estimated 12 cents. Comair is a regional airline owned by Delta. Transport Topics
(Click here for full press release.)
M.S. Carriers Sees Earnings Fall 76%
M.S. Carriers (MSCA), an irregular route truckload carrier, said first-quarter earnings fell 76% compared to last year.
The Memphis, Tenn.-based company blamed softness in the truckload freight markets for the poor results. Although conditions improved in March, it was still well below last year’s levels.
The company reported earnings of nine cents per share for the quarter, compared to 38 cents last year.
M.S. Carriers is ranked No. 23 on the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
CNF Reports 60% Drop in Earnings
CNF Inc. (CNF), which operates regional trucking and air freight businesses, said that it earned $13.5 million or 26 cents per share during the first quarter, compared to 62 cents last year.
The company's trucking and warehouse sector, Con-Way Transportation Services, reported first-quarter operating income of $36.7 million, a $20 million drop from last year.
"Con-Way's drop in earnings was attributable to tonnage declines from the faltering U.S. economy," CNF President and Chief Executive Officer Gregory L. Quesnel said.
Con-Way's total and less-than-truckload regional carrier tonnage per day declined 4% in the first quarter.
Based in Palo Alto, Calif.-based company is ranked No. 3 on the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for full press release.)
Volvo Truck Sales Fall 11% in 2001
Volvo (VOLVY), the second-largest maker of heavy trucks, said sales fell 11% in the first three months of 2001 as demand weakened in the United States, Bloomberg reported.
In North America, sales fell 38% to 10,150 from 16,381, but Volvo did report a slight rise in sales in Western Europe.
Three times so far this year, Volvo has reduced production and eliminated 700 jobs in response to falling sales. Transport Topics
Dana Reports Q1 Loss
Dana Corp. (DCN), one of the world's largest vehicle parts and aftermarket suppliers, reported a net loss of 18 cents per share during the first quarter compared with a gain of $1.01 last year.
The Toledo, Ohio-based company said the dramatic change was caused by a reduction in vehicle production schedules and weakness in the aftermarket and North American heavy-truck market.
Looking ahead, Dana said it does not see signs of a short-term recovery, and is looking at ways to scale back operations. Transport Topics
(Click here for the full press release.)
Mexican Truckmaker Cuts Jobs, Production
Consorcio Grupo Dina (DIN) has reached an agreement with its employees calling for a 40% cut in the work force and a temporary stoppage at the company's plant in central Hidalgo state, Reuters reported.
Under the agreement, the financially strapped manufacturer will shut down the plant until Oct. 31, and reduce the workforce from 506 to 304 employees. However, the company has agreed to an 8% salary increase.
Dina, which has been attempting to restructure its debt, traces its difficulties to a lost order to supply 9,000 trucks to Western Star Trucks Holdings. The order was cancelled at the end of September, after Western Star was acquired by Freightliner LLC. Transport Topics
DOT Says 63,000 Mexican Trucks Crossed in 1999
The Department of Transportation said that an estimated 63,000 Mexican trucks crossed the border in 1999, far less than previous estimates, the Associated Press reported.Because Mexican trucks are currently limited to a 20-mile zone north of the border - where they transfer their loads to American trucks -- they can make several crossings per day. So, while the number of trips is estimated at 4.5 million, the actual number of Mexican trucks crossing is far lower.
Critics responded by saying this report is only meant to play down safety concerns about the Mexican trucks as the impending policy change allowing the vehicles access to all U.S. highways draws closer. Transport Topics
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AAA: Gas Prices Up 15 Cents in March
U.S. regular unleaded gasoline prices rose 15 cents to 158.7 cents per gallon in March, the American Automobile Association said Tuesday in its monthly Fuel Gauge Report.This jump affects almost one-third of the trucking industry that uses gasoline to run lighter vehicles rather than heavy trucks, the article said.
The survey said the increase was caused by high crude oil prices, a switch to summer-grade fuels and industry preparations to reintroduce cleaner burning gasoline on June 1.
The highest gas price was in the West at $1.64 per gallon. However, the biggest jump was in the Great Lakes region, where the price increased 23 cents to $1.62 per gallon. Transport Topics
(Click here for full press release.)
Core Materials in Deal With Peterbilt
Core Materials (CME) said that it has reached an agreement with Peterbilt Motors to supply sheet molding composite products for one of its heavy duty truck models.
Core said it will manufacture a SMC fiberglass reinforced hood for Peterbilt's 387 class 8 truck. Peterbilt is a division of Paccar.
The Columbus, Ohio-based company estimated revenues from this deal will be $3-$5 million annually. Transport Topics
(Click here for the full press release.)
