Executive Briefing - Feb. 14
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International Unveils High-Performance Trucks
Navistar's International Truck and Engine Corp. (NAV) said Wednesday it was offering a line of high-performance commercial trucks for medium-duty service.
International said its new 4000, 7000 and 8000 series trucks are built for specific customer needs, and that the company "will continuously launch new models of high-performance trucks over the next several years."
Steve Keate, president of International's truck group, said that "this represents the start of the most comprehensive product launch in the history of International."
Next will be the 8500 regional-haul tractor, for order as of May. The severe-service 7000 models will be available this summer. Transport Topics
(Click here for the full press release.)
(Click here for the latest issue of Light & Medium Truck magazine.)
Cannon Reports Larger Quarterly Loss
Springdale, Ark.-based Cannon Express (AB), which hauls various types of truckload shipments, said Wednesday it lost $1.255 million or 39 cents a share in its fiscal second quarter ended Dec. 31, down from a net loss of $326,000 or 10 cents per share a year earlier.
It said results reflected adverse weather, higher operating costs and a shortage of qualified drivers for its trucks.
Cannon also said that it would "continue to pursue increased rates and fuel surcharges from its customers, in order to offset the added expense for drivers' wages and fuel." Transport Topics
(Click here for the full press release.
CSXT Joins RailMarketplace.com
Eastern-U.S. rail giant CSX Transportation (CSX) said it has become a founding member and strategic partner in the online venture RailMarketplace.com(SM).CSXT said that in making the move it joined five other major North American railroads that are founding members – Burlington Northern Santa Fe, Canadian National, Canadian Pacific Railway, Norfolk Southern and Union Pacific – along with iRail.com Inc. and GE Global eXchange Services.
The announcement noted that RailMarketplace.com is creating an electronic exchange to link buyers and sellers across the rail industry through open access to goods and services. The six founding railroads buy more than $15 billion in supplies each year, and this electronic exchange aims to help railroads, suppliers and other buyers cut their costs.Transport Topics
(Click here for the full press release.)
U.S. Dec Inventories Up 0.1%
Inventories of unsold goods held by U.S. businesses edged higher by just 0.1% in December, the Commerce Department reported Wednesday, but that left stocks at a still-high level.The ratio of inventories to sales stayed at 1.36, the same as in November, meaning it would take 1.36 months to work off excess stocks at the most recent sales pace. That is the highest ratio since April 1999.
This is an important economic indicator for the trucking industry – mainly for dry-van freight – because a higher ratio means companies will be working down their current supplies on hand before having more goods shipped to replenish their stocks.
And since companies are cutting production and laying off workers as they bring inventories down in line with slumping demand, the level of unsold goods has been contributing further to the economic slowdown. Transport Topics
Wealthy Fight to Keep Estate Tax
A group of about 120 wealthy Americans is opposing repeal of the estate tax, and plans an ad campaign that begins in this Sunday's Op-Ed page of the New York Times, that paper reported Wednesday.The report said the group includes Warren Buffet, George Soros, and William H. Gates, father of Microsoft leader Bill Gates.
Some trucking and other business interests have sought repeal of the so-called death tax to remove a tax that they say forces some smaller businesses to sell physical assets of the business when a principal dies, so that heirs can pay the taxes.
But the group of wealthy people fighting repeal says eliminating the tax would have a devastating impact on charitable giving since many affluent people give to charity to cut their estate taxes, and would enrich the heirs of the wealthy while hurting struggling families by raising their taxes or cutting federal benefits.Transport Topics
Quality Distribution Has Lower 4Q Earnings
Quality Distribution, parent of trucking operations that specialize in chemical shipments, said late Tuesday that it had fourth-quarter operating income of $1.8 million, compared with $4.8 million in 1999.For the same quarter, its earnings before interest, taxes, depreciation and amortization (EBITDA) was $10.6 million, compared with $19.4 million during the same period last year.
The Tampa, Fla.-based company said lower demand for the transportation of chemicals, severe weather and high fuel prices contributed to the decreased earnings. However, continued cost management and improved operations gave the company stronger operating margins.
Quality Distribution ranks 26th on Transport Topics 100 list of largest U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
M.S. Carriers 4Q Earnings Drop 79%
M.S. Carriers (MSCA), an irregular-route truckload carrier, reported fourth-quarter earnings of 13 cents per share, a 79% drop from the same period last year when it reported earnings of 62 cents a share.
The company said its reduced earnings came from a lower demand in truckload services.
M.S. Carriers also said it had altered its method of accounting for accident, workers' compensation, cargo and physical damage claims, resulting in a $1.6 million increase to insurance and claims expense during the fourth quarter.
That prompted Swift Transportation, which has a merger agreement with M.S. Carriers, to issue a statement reiterating its support for the merger (see Swift item in the Executive Briefing).
Memphis, Tenn.-based M.S. Carriers ranks 23rd on the Transport Topics 100 list of largest U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Swift Warns on Earnings, Stands by M.S. Carriers Merger
Swift Transportation Co. (SWFT) expects its first-quarter results to miss Wall Street forecasts, but is forging ahead with its plan to create the largest publicly traded truckload carrier in North America by merging with M.S. Carriers.
On Tuesday, M.S. Carriers announced that it took a fourth-quarter charge of $1.6 million. Swift said the pretax charge involved insurance and claims expense for the fourth quarter of 2000, and a $6.9 million restatement of retained earnings to reflect an increase in claims reserves as of 1997.
Swift Chairman Jerry Moyes said that "the adjustments do not diminish Swift's commitment to the merger."
In warning that earnings will not meet expectations, Swift blamed the softening economy for a slowdown in shipments, and said the Federal Reserve's cuts in interest rates have not yet perked up freight demand.
Phoenix-based Swift is No. 19 on the Transport Topics 100 list of largest U.S. trucking companies, based on 1999 data.Transport Topics
(Click here for the full press release.)
Hong Kong Truckers' Strike Near Resolution
Truckers in Hong Kong began to call off their 5-day blockade of the world's busiest container port late Tuesday, the Journal of Commerce Online reported.The drivers had been protesting a $5 gate fee that terminal operators had imposed on them beginning Feb. 9.
However, the article said that the local shippers group has now agreed to charge the fees to its member freight-shipping companies, instead of to the individual drivers. Transport Topics
New Penn Offers Guaranteed A.M. Delivery
New Penn Motor Express announced Tuesday it is introducing a Guaranteed AM Delivery Service, available between communities in the northeastern United States and Quebec that the company serves directly.
Customers will pay their regular New Penn charges plus a premium of 35% of the net linehaul charges. They will receive an e-mail or fax within moments of delivery, the company said.
If the delivery is not made by noon, New Penn said the customer would get an invoice for zero dollars, eliminating the need to file a claim for a refund.
Lebanon, Pa.-based New Penn is a less-than-truckload carrier with a network of 23 terminals. It is a subsidiary of Arnold Industries. Arnold is No. 36 on the Transport Topics 100 list of largest U.S. trucking companies, based on 1999 data.Transport Topics
(Click here for the full press release.)
