Executive Briefing - April 19
- Economists Predicting Another Rate Cut
- Revenue, Profit Rise for Marten Transport
- Officials Say Trucks Leaving Hampton Roads Unsafe
- Owners of GM Pickups to Receive Money From Suit
- Ford's Earnings Beat Estimates
- Michelin, Bandag in Dispute Over Truck Tire Retread Systems
- Consolidated Freightways Reports Loss as Tonnage Drops
- UPS Profit Falls 8.9%
- Earnings Down 62% at USFreightways
- Delphi, Federal-Mogul Post Loss
- Record Revenues Lift Landstar
- Covenant Earnings Down; Sees Demand Rising in Q2
- Knight Transportation Sees Q1 Earnings Rise
- Detroit Diesel, International Truck Renew Contract
Economists Predicting Another Rate Cut
A day after the Federal Reserve cut interest rates (see related story), economists were already predicting another cut is likely next month to help the economy, the Associated Press reported.Even Roger Ferguson, who holds the No. 2 position at the Federal Reserve Board, said Thursday that it is too early to be convinced the end of the current economic slowdown is over.
The AP article found that many private economists believe that spending by both consumers and businesses, the main engine of economic growth, will likely remain lackluster for some time to come.
That, along with prospects of continued stock market volatility, rising unemployment and a weak manufacturing sector, all points to a fragile economy in need of more bolstering. Transport Topics
Revenue, Profit Rise for Marten Transport
Marten Transport (MRTN) reported a 16% increase in revenue during the first quarter, and said net income increased to 39 cents per share from 38 cents last year.
The Mondovi, Wis.-based company, which supplies temperature-sensitive truckload services, said it was the eighth consecutive quarter of double-digit percentage increases in operating revenue.
arten Transport is ranked No. 64 on the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Officials Say Trucks Leaving Hampton Roads Unsafe
Port officials in the Hampton Roads area of Virginia said that many trucks are leaving terminals with major safety problems, the Daily Press reported.The trailer part -- or chassis -- of the cargo-truck combination is not being inspected as federal law mandates, the article said. In addition, some trucks display inspection stickers regardless of whether the chassis is safe.
This has caused an estimated two accidents per week.
A bill currently being considered in Virginia would require chassis owners to be more responsible for chassis safety. Transport Topics
Owners of GM Pickups to Receive Money From Suit
About six million General Motors pickup truck owners will receive a certificate towards the purchase of a new GM vehicle in the next week, the vehicle maker said in a statement.Many trucking fleets use pickups for smaller shipments.
The certificates are part of a settlement of a class-action lawsuit concerning defective gas tanks which attorneys argued were prone to explosions in side-impact collisions.
The owners will also receive another $100 certificate if they are not in the market for a new car or truck. Transport Topics
(Click here for full press release.)
Ford's Earnings Beat Estimates
Ford Motor Co. (F) earned $1.06 billion or 56 cents per share for the first quarter of 2001, down 41% from last year's $1.93 billion or 90 cents per share, news services reported.
However, that slightly higher than analysts had been expecting.
The vehicle maker said reduced car and truck production lowered earnings. The company was also hurt by idling factories, which meant less freight for trucks to carry.
The recall involving the tires used on the Ford Explorer also contributed to the earnings decline. Transport Topics
Michelin, Bandag in Dispute Over Truck Tire Retread Systems
Michelin (12126-PAR) has accused Muscatine, Iowa-based Bandag (BDG) and Bridgestone/Firestone of conspiring to limit competition in the United States market for commercial truck tire retread systems, the Associated Press reported.
Bandag had sued Michelin North America and Michelin Retread Technologies in September 1999, accusing Michelin of trying to drive it out of business by improperly taking trade secrets.
Michelin filed a petition this past February to stop Bandag from enforcing franchise contracts, including some exclusivity contracts. It said Bandag and Bridgestone/Firestone have illegally joined forces.
U.S. District Court Judge Charles Wolle will meet with attorneys Friday to select a date for a hearing on Michelin's motion. Transport Topics
Consolidated Freightways Reports Loss as Tonnage Drops
Consolidated Freightways (CFWY), the third-largest U.S. trucking company, reported a first-quarter loss as tonnage fell 5.1%.
The loss was 8 cents per share, compared with a profit of 5 cents per share a year earlier.
The company also said it seeing a slight improvement in tonnage so far in the second quarter, and anticipates more growth in the second half of the year.
Consolidated Freightways is ranked No. 7 on the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
UPS Profit Falls 8.9%
United Parcel Service (UPS), the world's largest delivery company, said earnings for the first quarter were 51 cents per share, down 8.9% from the same quarter last year.
It was the first decline in more than three years, brought on by a reduction in shipments and higher utility costs.
The Atlanta-based company also said revenues rose 4% during the quarter as its international and logistics businesses grew.
UPS said that it can reach its estimate of 55-60 cents for the second quarter, but expects it to be at the low end.
UPS is ranked No. 1 on the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Earnings Down 62% at USFreightways
USFreightways Corp. (USFC) reported net earnings of $8,451,000 in the first quarter, down 62% from the $22,316,000 earned in the first quarter of 2000. The first quarter per-share earnings were 32 cents, compared with 81 cents the previous year.
Total revenues for Chicago-based company came to $621,393,000, which was up slightly from the $618,690,000 reported in 2000.
The company blamed profit declines on lower activity at USF Processors and a less profitable mix of business in USF Logistics. The company also experienced increases in labor and fringe benefit costs, as well as claims and operating expenses.
USFreightways is ranked No. 8 on the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for full press release.)
Delphi, Federal-Mogul Post Loss
Vehicle parts manufacturer Delphi Automotive Systems (DPH) reported a loss of $25 million or 4 cents per share for the first quarter, a plunge from a year-earlier gain of $322 million or 57 cents per share.
Delphi blamed the soft vehicle market worldwide for the loss. It did narrowly beat Wall Street's lowered expectations.
Also Thursday, Federal-Mogul (FMO) reported a loss of 60 cents per share compared with a profit of 86 cents last year. The largest maker of vehicle engine bearings and seals was hurt by a lower demand for heavy-duty trucks and a decline in North American vehicle production.
Meanwhile, Alan Dawes, Delphi's chief financial officer, said he expects next quarter to be slightly better because production schedules should be higher and the company is continuing to implement cost reduction strategies.
In late March, Delphi announced that it would eliminate 11,500 jobs worldwide, discontinue making certain products and consolidate several plants.
(Click here for the press release from Delphi.)
(Click here for the press release from Federal-Mogul.)
Record Revenues Lift Landstar
Landstar System (LSTR) said earnings for the first quarter rose to 96 cents per share from 89 cents last year because of a record $331 million in revenues.
That beat analysts' estimates of 94 cents, but the company said full-year earnings would likely be below current expectations.
Landstar System is ranked No. 14 on the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Covenant Earnings Down; Sees Demand Rising in Q2
Citing the economic slowdown, Covenant Transport (CVTI) said its first-quarter earnings were 2 cents per share, down from 14 cents per share during the same period last year.
The company said average miles per tractor, equipment utilization and freight volume declined as customers shipped less. Higher fuel and insurance costs also added to the decline.
However, the Chattanooga, Tenn.-based company said freight demand appears be picking up, which could help its results for the next quarter.
Covenant Transport is ranked No. 33 on the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Knight Transportation Sees Q1 Earnings Rise
Knight Transportation (KNGT), a dry van truckload carrier, said earnings for the first quarter increased 7.7% to 28 cents from 26 cents last year.
It was the company's 43rd straight quarter of growth in both revenue and net income when compared to the year before.
Knight Transportation is ranked No. 85 on the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Detroit Diesel, International Truck Renew Contract
Diesel engine maker Detroit Diesel and International Truck and Engine renewed their contract for Series 40 engines, DDC said.
The Series 40 is a six-cylinder, four-cycle diesel engine.
The contract gives DDC the right to sell and distribute International's engines to off-highway and specialty on-highway markets.
International Truck is the operating company of Chicago-based Navistar International (NAV). DDC is based in Detroit, Mich. Transport Topics
