Executive Briefing - Feb. 26
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Federal-Mogul Cutting 1,100 Jobs
Vehicle parts maker Federal-Mogul Corp. (FMO) said Monday it is reducing its global sala-ried workforce by about 1,100 people, adding that it has also eliminated about 200 positions that had been open.
Worldwide, the company has about 12,750 salaried employees. The maker of truck and automotive parts blamed "very tough" market conditions.
Federal-Mogul said it would share the details of savings and severance charges on April 19, when it announces its first-quarter results.Transport Topics
3Com to Cut 1,200 Jobs
Computer products maker 3Com Corp. (COMS) said Monday that it would cut 1,200 or 10% of its workforce. The job cuts add to the growing trend of layoffs in manufacturing.The Santa Clara, Calif.-based company said the across-the-board job cuts would reduce costs and restore profitability in a weakening economy. Transport Top-ics
(Click here for the full press release.)
Gasoline Price Falls in Survey
The Lundberg Survey found that the retail price of gasoline fell over the past two weeks, reflecting the falling cost of crude oil as well as seasonal demand, the Associated Press reported Monday.On Friday, the average price at the pump nationwide was about $1.50 per gallon, down 2.26 cents from Feb. 9, Lundberg's survey of 8,000 stations found.
The Midwest saw the biggest drop, more than eight cents a gallon. But West Coast prices rose more than three cents a gallon, due to refinery interruptions.
Analyst Trilby Lundberg called the nationwide gasoline supply adequate, and priced at only four cents above the year-ago level.Transport Topics
Landair Reports 4Q Loss
Truckload carrier Landair Corp. (LAND) reported a fourth-quarter loss per share of $1.58, swelled by write-downs of asset values and goodwill.The Greenville, Tenn.-based company earned four cents a share in the final quarter of 1999.
Management plans to continue divesting underutilized revenue equipment, as well as unprofitable operations, facilities and other assets.
Landair is No. 95 on the Transport Topics 100 list of largest U.S. companies, using 1999 data.Transport Topics
(Click here for the full press release.)
FedEx Offering Discounts to Small Business Group
FedEx (FDX) will offer discounts on shipping to members of the National Federation of In-dependent Businesses, the company and the group announced Monday.
They said the alliance will offer the 600,000 small businesses in the NFIB significant discounts on FedEx Express, FedEx Ground and FedEx Home delivery services.
FedEx is No. 2 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.)
Ambest Offers TruckersB2B Members Fuel Rebates
Truckstop cooperative Ambest has agreed to join TruckersB2B fuel network, providing rebates to members on diesel fuel purchases, the Internet-based buying group announced Monday.Rebates of up to four cents a gallon will be available at Ambest's 129 affiliated truck stops in the United States and Canada.
TruckersB2B.com is a provider of pre-negotiated services, aggregating the buying power of its member companies. It claims 300,000 trucks represented by its member fleets.
It is a subsidiary of Celadon Group, an Indianapolis-based truckload carrier that is No. 54 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.)
OPEC Cut Output Less Than Planned
Members of Organization of Petroleum Exporting Countries have cut oil supplies by only 1.23 million barrels a day over the past month-18% less than their planned cuts, Boomberg reported.At a January meeting, OPEC members had agreed to cut oil supply by a total of 1.5 million barrels per day beginning Feb. 1. However, members are still adjusting to the reduced production quota, Bloomberg said.
The group plans to meet again in March to discuss the possibility of further cuts. However, OPEC said it would avoid this if oil prices remain between $22 and $28 per barrel. Transport Topics
AM General to Hire 1,500 Workers
AM General Corp., maker of Humvee military troop carriers, said late last week that it plans to hire 1,500 workers next year to build the Hummer H2 sports utility vehicle for General Motors, according to Bloomberg.A small number of utility fleets use Hummer vehicles. The vehicle's high cost keeps more fleets from putting this type of vehicle on the road.
South Bend, Ind.-based AM General builds 3,000 to 4,000 Humvees per year. Transport Topics
Import Volumes Rise in Calif.
The volume of Asian imports coming into the Los Angeles and Long Beach ports jumped 9% in January, the Journal of Commerce Online reported.Containerized imports had slumped in the previous two months because of slow holiday sales, rising energy costs and a weakening U.S. economy.
Yet, exports to Asia continue to slow, the article said. Containerized exports leaving Los Angles remained flat in January compared with December. In Long Beach, the exports decreased 3%. Transport Topics
Trial Set for Trucker in Immigrant Deaths
A manslaughter trial is set to begin Monday in Maidstone, England, for the driver of a truck that contained the bodies of 58 illegal immigrants from China, Reuters reported.Perry Wacker of Rotterdam, the Netherlands, denied killing the 54 men and four women who were found suffocated in his truck last year, the news service said.
The cooling system in the refrigerated unit was switched off when it was found at the British port of Dover, according to Reuters.Transport Topics
DaimlerChrysler Posts $269-Mln Loss
DaimlerChrysler (DCX) said it lost $269 million in the last quarter of 2000, largely due to problems at the U.S. automaking unit Chrysler, and that restructuring would cost about $3.9 billion (4 billion euros).
The company also said DaimlerChrysler said Chrysler would post a large operating loss this year. Its restructuring includes 26,000 job cuts at Chrysler and closing or idling six plants.
The Associated Press said the company forecasts were more bleak than analysts had projected. The plan foresees Chrysler posting a profit in 2002.
The company noted that its full-year 2000 operating profit on commercial vehicles rose 8%, despite a significant slowdown in the second half for Freightliner in the United States. Transport Topics
(Click here for the full press release on the company's restructuring plan.)
(Click here for the press release on DaimlerChrysler earnings.)
Mitsubishi Unveils Major Job Cuts
Japanese vehicle-maker Mitsubishi Motors said Monday it plans to lay off 9,500 workers and cut costs by 2003, Reuters reported.
The plan is part of a major overhaul by the company's main shareholder DaimlerChrysler. It involves reducing production capacity by 20% and slashing materials costs 15%.Transport Topics
Simon Buying Ort Trucking Assets
Refrigerated-shipment carrier Simon Transportation (SIMN) said it has bought some assets of Gerald E. Ort Trucking, including leases on its two terminals.Ort, of New London, Wis., last year operated about 130 company-owned tractors, 50 tractors supplied by owner-operators and a fleet of more than 300 trailers.
Salt Lake City-based Simon will buy 19 tractors and 60 of its 53-foot temperature-controlled trailers within the next 90 days, and will also assume the existing leases on 10 additional tractors.
Simon is No. 66 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.)
