Executive Briefing - Jan. 30
- Cabinet: Whitman, Norton Confirmed
- Economy: Confidence Down, But Fed Rate Cut Awaited
- UPS 4Q Earnings Top Expectations
- CN Rail Buying Wisconsin Central
- Atlas Air Names New Chiefs in Succession Plan
- CNF Reports Lower 4Q Earnings
Cabinet: Whitman, Norton Confirmed
The U.S. Senate on Tuesday confirmed former New Jersey Gov. Christie Whitman and ex-Colorado Attorney General Gale Norton to the Bush Cabinet posts overseeing environmental and natural resources policies, the Associated Press reported.The Senate voted unanimously to confirm Whitman as administrator of the Environmental Protection Agency, and voted 75-24 to endorse the controversial nomination of Norton as secretary of the interior.
That left only the attorney general nomination left to be decided, and the Senate is expected to confirm former Sen. John Ashcroft (R-Mo.) to that job. Transport Topics
Economy: Confidence Down, But Fed Rate Cut Awaited
Another indicator of economic weakness came Tuesday as the private Conference Board said its latest monthly consumer confidence index had fallen to 114.4 – it's fourth straight drop to settle at its lowest level in four years.
However, given that Fed Chairman Alan Greenspan last week warned that the economy has stalled out, many analysts wonder whether the Fed action will help avert an outright recession.
Trucking analysts note that such rate cuts tend to spur commercial activity and freight shipments only after a lag of several months, but that rate reductions can immediately boost the operating flexibility of some fleets that carry variable-rate debt on their equipment.
The Fed cut rates a half-point on Jan. 3, so Wednesday's expected cut would make a full percentage point drop in rates in less than a month. However, it could take a lot more rate reduction to boost consumer confidence and capital spending significantly, especially since the oil price hikes of the past year (and the recent new tightening of crude oil prices by OPEC) have acted like a big increase in interest rates. Transport Topics
UPS 4Q Earnings Top Expectations
United Parcel Service (UPS) reported fourth-quarter earnings at 63 cents a share -- slightly above analysts' expectations, CBS MarketWatch.com said Tuesday. Analysts had expected 61 cents. UPS in its earnings announcement said it had strong volume growth in its international operations, significant revenue growth in logistics but a slowing in its overall U.S. domestic business.
UPS is number one on the Transport Topics 100 list of the largest trucking companies.Transport Topics
(Click here for the full press release.)
CN Rail Buying Wisconsin Central
One of the continent's major freight railroads, Canadian National Railway Co. (CNI) has announced a plan to purchase regional Wisconsin Central Transportation Corp. (WCLX), for about $1.2 billion.Canadian National is headquartered in Montreal, but spans Canada with a broad east-west rail network and runs north-south in the central United States through its Illinois Central route that parallels the Mississippi River. Therefore, it reaches the Atlantic and Pacific oceans as well as the Gulf of Mexico, with 16,000 route miles of track.
Wisconsin Central, a large regional railroad that sprawls across Wisconsin and operates in neighboring areas including Chicago, runs trains over 2,850 route miles and has about 2,200 employees. The cost of the acquisition includes some $400 million in WSTC debt. Dan Lang, Transport Topics
Atlas Air Names New Chiefs in Succession Plan
Air freight carrier Atlas Air (CGO) on Tuesday named its new top staff, following on the Jan. 24 death in an airplane crash of former Chairman Michael Chowdry.The board chose Brian Rowe, already a board member, to succeed Chowdry as chairman, and said Linda Chowdry will fill the board vacancy created by her husband's death.
Acting Chief Executive Officer Richard Shuyler was named as the new CEO, and James Matheny was promoted to president and chief operating officer from the position of executive vice president of operations.
A company statement said those four will operate as an executive committee that will oversee management and ongoing strategy. Transport Topics
(Click here for the full press release.)
CNF Reports Lower 4Q Earnings
Trucking and air freight company CNF Inc. (CNF) reported fourth-quarter net income of 70 cents per diluted share, compared with 97 cents a year ago.CNF ranks third on the Transport Topics 100 list of largest U.S. trucking companies.
Its less-than-truckload carrier Con-Way Transportation Services reported fourth-quarter operating income of $53.4 million, compared with $57.1 million in the same quarter of 1999.
Air freight unit Emery Worldwide had "disappointing" results, the company said.
Menlo Logistics had operating income of $8.6 million, up from $6.1 million in the year-ago quarter. Transport Topics
(Click here for the full press release.)
