Executive Briefing - March 9
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U.S. Jobless Rate Steady, But Factory Jobs Fall
The U.S. employment rate held steady at 4.2% in February, but the U.S. Labor Department reported another big drop in factory jobs that imply more weakness ahead for trucking shipments.A total of 94,000 manufacturing jobs were lost last month, continuing a pattern of layoffs that began last summer. Since June, 371,000 workers have lost factory jobs, the Associated Press noted.
Labor said 135,000 workers were added to overall business payrolls during the month. That was down from January's total, but well above the increase many analysts were expecting.
Oshkosh Buying Temco Assets
Oshkosh Truck (OTRKB) said it has agreed to buy certain assets of Trinity Equipment Manufacturing Co. (TRN), a concrete mixer and parts manufacturer.
Temco sold them to Oshkosh because it was ceasing production of concrete mixers and parts as well as batch plants.
Terms were not disclosed.
Oshkosh makes specialty trucks and truck bodies for the defense, fire and emergency, concrete placement and refuse hauling marketsTransport Topics
(Click here for the full press release.)
DaimlerChrysler Still Plans Trucks With Hyundai
DaimlerChryslerAG (DCX) and Hyundai Motor Co. are still negotiating the details of a proposed commercial vehicle venture, Bloomberg News reported Friday.
The companies were responding to reports that DaimlerChrysler may reconsider the terms of a joint venture it is planning with Hyundai if the German truck giant reaches an agreement to buy Volvo AB's (VOLVY) stake in Mitsubishi Motors Corp. (MMO-BER), Bloomberg said.
In January, Hyundai said it expects to have the commercial vehicle project set up by April with DaimlerChrysler, which is its second-largest shareholder with a 9% stake.
A joint venture would give DaimlerChrysler quick access to a new production site in Asia. DaimlerChrysler, which owns Freightliner, is the world's largest truck maker. Car maker Hyundai has only 1% of the world market for commercial vehicles, Bloomberg said.Transport Topics
UPS Asks DOT to Stop DHL's U.S. Operations
United Parcel Service (UPS) has asked the U.S. Department of Transportation to immediately stay or suspend DHL Worldwide Express forwarding license to operate in the United States, Reuters reported Friday.
If the UPS motion is granted, it could block a pending reorganization of DHL operations in the U.S., Reuters noted.
UPS and rival FedEx (FDX) argue that since Deutsche Post World Net is a major DHL shareholder, DHL should therefore be disqualified from operating in the U.S. on the basis of a law that limits the U.S. operations of foreign-owned airlines.
Klaus Zumwinkel, Deutsche Post's chief executive, told the Wall Street Journal that DHL is only trying to provide international service, and is not chasing domestic parcel business.Transport Topics
Manufacturers Intel, Cisco, Others Slash Jobs
More manufacturers, led by computer chip maker Intel (INTC) and networking equipment maker Cisco Systems (CSCO), announced late Thursday or early Friday that they would slash jobs as the U.S. economy weakens.
Cutbacks in manufacturing have a direct bearing on trucking by reducing the potential amount of goods to ship.
Three California-based companies blamed waning demand in computers and tele-communications for the job cuts, news reports said. Intel plans to cut 5,000 jobs and Cisco said it would lay off 5% of its workforce. Somera, which builds used phone gear in Santa Barbara, Calif., said it would fire 10% of its employees.
Meanwhile, lead producer Doe Run reportedly said it would fire 225 workers at the company's Herculaneum, Mo., location. The company noted that low demand for its lead-acid batteries, used for autos, caused the job cuts.
High energy costs was the reason Weirton Steel, based in Weirton, W.Va., planned to slash 10% of its management. Simula, which makes aircraft seats in Phoenix, said it would cut 60 jobs and not fill 40 new positions it had previously budgeted for. Transport Topics
Lufthansa Confirms SAS Cargo Talks
German airline Lufthansa (LHA-FRK) said its cargo arm is in discussions about an alliance with SAS, the freight arm of Scandinavian Airlines System, the Associated Press reported.A Lufthansa spokeswoman described the talks as being in the early stages.
The SAS board announced on Thursday it has authorized management to restructure SAS Cargo into an independent limited liability company effective April 1, pending completion of ongoing negotiations. Transport Topics
(Click here for the full press release.)
Cummins Closing Minn. Plant
Diesel engine maker Cummins Inc. (CUM) announced Friday that it would move its power generation electronics operation located in St. Peter, Minn., to its manufacturing facility in Fridley, Minn., and close the 320-worker St. Peter facility by the end of September.These actions are a part of the restructuring and cost-reduction strategies Cummins announced this past December.
The company also said its 200-employee commercial-vehicle alternator production operation in Fridley will be moved over the next two years. Transport Topics
(Click here for the full press release.)
Volvo Speculation Boosts Nissan Stock
Shares of Nissan Diesel Motors Co. (NDI-BER) jumped 13% in Tokyo Friday as investors expected Swedish truck maker AB Volvo (VOLVY) to buy a stake in Nissan, Bloomberg reported.
nalysts predict that Volvo will sell its 3% share in Mitsubishi Motors Corp. (MMO-BER) amid pressure that rival DaimlerChrysler is planning to expand its 34% stake in Mitsubishi to majority ownership.
This has brought speculation that Volvo will focus its attention to Nissan's truck unit, once it sells its Mitsubishi stake, Bloomberg said. Transport Topics
UAL Flight Attendants Threaten Strike
Flight attendants for United Airlines (UAL) said they are threatening to strike over issues involving the company's planned merger with US Airways.
Passenger planes carry 60% of air cargo in their bellies, so such a strike could affect patterns of freight going between planes and trucks.
Saying UAL is threatening an illegal change in their contract, the Association of Flight Attendants is countering with plans for scattered walkouts.
That strategy avoids the 30-day cooling off period found in traditional airline strike procedures, AFA noted, adding that a strike vote is planned for "the coming weeks." Transport Topics
(Click here for the full press release.)
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Intermodal Traffic Up in Week After Monthlong Drop
Intermodal freight volume at major U.S. railroads rose 1.2% last week, compared with levels for the same week in 2000, the Association of American Railroads reported. Last week's rise was a turnaround from February's downward slide.During the week ended March 3, the combined total of truck trailers and containers hauled on trains was 169,822 units, compared with 167,833 during the same period in 2000.
When reported separately, the number of trailer units dropped 9.4% while the number of containers increased 6.9%.
Railroads reporting to AAR account for 98% of U.S. rail intermodal volume. Transport Topics
U.S. Sues DaimlerChrysler on Alleged Disability Bias
DaimlerChrysler (DCX) has been accused in a lawsuit by the U.S. Equal Employment Opportunity Commission of violating disability laws at its plant in Kokomo, Ind., which builds truck transmissions.
The lawsuit claims workers with disabilities were blocked from transferring within departments at the plant, Reuters reported.
An attorney for the EEOC said the case has only one named plaintiff now, but others could be added as the investigation proceeds. DaimlerChrysler spokeswoman Elaine Lutz said the company could not comment on the specifics of the case, Reuters added.
According the Bloomberg, the suit seeks undetermined damages and an order stopping the alleged bias. Transport Topics
