Executive Briefing - Feb. 1
- GE Said to Cut 75,000 Jobs Over 2 Years
- Volvo Reports Decreased 4Q Earnings
- Celadon Reports Loss 4 Cent Loss
- Kenan 4Q Earnings Rise
- Airborne Reports 4Q Loss
- Three Names Circulating for Customs Job
- Tenneco Cutting Jobs
- Income, Spending Rises Slightly in December
- Kenworth Cuts 135 Jobs in Ohio
- Federal-Mogul Reports 4Q Loss
- Arkansas Trucking Group Pushes Commission Elections
- Mitsubishi Recalls 385 CNG Trucks in Japan
GE Said to Cut 75,000 Jobs Over 2 Years
General Electric Co., (GE) is poised to cut 75,000 jobs over the next two years, according to a Business Week story reported by CNNfn. The story cited both Wall Street analysts and sources close to the company.Most cuts – perhaps 50,000 – are said to come as GE completes its merger with Honeywell International Inc. (HON), but the story said analysts expect 5,000 to 10,000 jobs will be cut from GE's other manufacturing and from broadcasting.
The expected cuts do not include 28,000 jobs being eliminated by the closing of retailer Montgomery Ward, a unit of GE Capital.
CNNfn said a GE spokesman denied that company-wide layoffs are planned, but would not give numbers of job cuts being made.
Volvo Reports Decreased 4Q Earnings
Swedish truck maker AB Volvo (VOLVY) on Thursday reported a fourth-quarter net income of $125 million, compared with $224 million during the same period in 1999.In a company statement, Chief Executive Officer Leif Johansson said a slow North American truck market contributed to the decreased income.
The results showed a 21% fourth-quarter decline in operating profit because of lower U.S. sales of trucks and construction equipment, Bloomberg noted.
“In North America the entire truck industry is facing problems in the form of large inventories of used trucks and price pressures that have also affected Volvo’s North American operations, whose earnings were unsatisfactory,” said Johansson.
He added, “Since midyear, Volvo Trucks has been conducting a comprehensive turn-around program to restore profitability. The program had substantial effects in the autumn, including improved profitability in Europe.” Transport Topics
Celadon Reports Loss 4 Cent Loss
Trucking company Celadon Group (CLDN) on Thursday announced a quarterly loss of four cents a share from trucking operations, compared with a 14-cent profit in the quarter ended Dec. 31, 1999.The Indianapolis-based van and flatbed carrier blamed fuel costs, unexpected automotive plant shutdowns and bad weather for the problems in its fiscal second quarter. Celadon is No. 54 on the Transport Topics 100 list of largest trucking operations. Transport Topics
Kenan 4Q Earnings Rise
Petroleum tank carrier Kenan Transport Co. (KTCO) on Thursday announced fourth-quarter earnings per share of 64 cents, compared with 44 cents in the same 1999 period. For the year,earnings per share were $2.19, compared with 1999's $1.93.The Chapel Hill, N.C.-based company said it had an operating ratio of 93.5% for the quarter, compared with 95.5% in 1999.
Kenan stands at 88 on the Transport Topics 100 list of largest trucking companies, and has agreed to be bought by Advantage Management Holdings. Transport Topics
(>Click here for the full press release.)
Airborne Reports 4Q Loss
Airborne Inc. (ABF) said late Wednesday that it lost 25 cents per diluted share in the fourth quarter, compared with earnings of 35 cents a share in the fourth quarter of 1999.
For all of 2000, the company earned 59 cents a share, compared with $1.85 in 1999.
The Seattle-based package and freight delivery company announced a rate increase on Jan. 29. Transport Topics
(Click here for the full press release.)
Three Names Circulating for Customs Job
The names of three possible candidates to become the new U.S. Customs commissioner are being mentioned by trade community sources, the Journal of Commerce Online reported Thursday.Any speculation is premature, as the Bush administration may not focus on Customs until late February or early March, JOC noted.
The candidates being mentioned are: Sam Banks, former deputy commissioner; Grant Aldonas, lead trade attorney for the Senate Finance Committee; and Fermin Cuza, senior vice president of Mattel Corp. who spent 15 years at Customs before joining Mattel, according to the JOC. Transport Topics
Tenneco Cutting Jobs
Automotive shock absorber maker Tenneco Automotive Inc. (TEN) said it would fire 405 salaried employees to help cope with reduced demand, Bloomberg News reported Wednesday.It will eliminate 215 jobs immediately, mostly in Monroe, Mich., and its Lake Forest, Ill., headquarters, the news service said.
The engineering center in Grass Lake, Mich., and the replacement-parts sales group in Lake Forest will also face cuts, according to Bloomberg.
The cuts come on top of 700 salaried positions the company announced in October, the news service said. The company has 23,000 employees. Transport Topics
Income, Spending Rises Slightly in December
Two reports released by the U.S. Commerce Department Thursday were mildly positive despite an overall slowing economy.One report said that U.S. consumer incomes rose 0.4% in December, doubling analysts' predictions and up from 0.2% in November. Federal aid to farmers and retirees helped drive incomes up, the Associated Press reported.
However, consumers held tight to their increased incomes as spending rose 0.3% in December, which was less than the income gain. The rise in spending exceeded what economists anticipated.
In another report, the Commerce Department said spending on construction rose 0.6% in December after a 0.2% increase in November. This was good news for trucks hauling building materials, and moving companies that transport furniture to new homes and offices. Transport Topics
Kenworth Cuts 135 Jobs in Ohio
Heavy-truck maker Kenworth is laying off 135 workers at its Chillicothe, Ohio, cab and frame plant, the Columbus Dispatch has reported. The layoffs take effect Feb. 26, and come on top of 500 last September, the paper said.
The actions leave the plant with a workforce of 1,000, according to the Dispatch. Kenworth is a division of Paccar Inc. (PCAR), headquartered in Bellevue, Wash.
Separately, Ford (F) announced it is laying off 250 workers at a Windsor, Ont. light-truck engine plant due to falling demand, Bloomberg News reported Thursday.
The plant makes eight-and 10-cylinder engines for trucks and minivans, according to the news service. Transport Topics
Federal-Mogul Reports 4Q Loss
Truck and automotive parts maker Federal-Mogul Corp. (FMO) on Thursday announced a fourth-quarter loss of 99 cents a share from continuing operations, compared with earnings of 87 cents a share for the same period in 1999.Federal-Mogul is headquartered in Southfield, Mich. Transport Topics
(Click here for the full press release.)
Arkansas Trucking Group Pushes Commission Elections
A group backed by the Arkansas Trucking Commission is touring the state, stumping for a proposal to make highway commissioners elected officials, the Associated Press reported Wednesday.Citizens for Safe and Efficient Highways and the trucking group want to put an initiative on the ballot in 2002. The measure would also increase the number of commissioners from five to eight, AP said.
The highway commission was made an independent body in 1952, in an effort to take politics out of road-building. The proposal would also shorten commission terms from 10 years to four, and impose a two-term limit. Transport Topics
Mitsubishi Recalls 385 CNG Trucks in Japan
Mitsubishi Motors said it is recalling 385 light trucks used by trucking companies in Japan, to replace engine and electrical components, Reuters reported Thursday.The Canter trucks use compressed natural gas, and were made between March 22, 1995 and Dec. 13, 2000.
The defects have spurred no accident reports, Reuters said. Transport Topics
