News Briefs - April 14
The Latest Headlines:
- J.B. Hunt's Profits Surge in 1Q
- XRG Completes Purchase of Two Truckload Carriers
- Trade Gap Narrows in February
- Eaton's Profit Rises 86%
- U.S. Seeks States' Input on Private Amtrak Routes
- FleetPride, Yellow Announce Parts Supply Agreement
- Burlington Northern Led Union Pacific in Rail Cargo in 1Q
- XRG Completes Purchase of Two Truckload Carriers
J.B. Hunt's Profits Surge in 1Q
Transportation firm J.B. Hunt Transport Services Inc. said Wednesday its net income for the first quarter was $33 million or 40 cents per share, compared with $11 million or 14 cents a year earlier.Operating revenue was $618 million, up from $571 million in the first quarter of 2003, the company said in a release. Truck revenue increased 4%, while intermodal revenue rose 13%.
"Uncharacteristically brisk demand in January and February, blended with the typically solid volumes in March, combined with good safety results, helped propel us to profit levels that normally occur during the busier part of the year," said Kirk Thompson, chief executive officer.
XRG Completes Purchase of Two Truckload Carriers
XRG Inc. said Tuesday it completed the acquisition of truckload carriers HighBourne Corp. and Highway Transport Inc.XRG was formed in November 2000 to consolidate truckload carriers. The company said in a statement the deal calls for it to issue a total of 550,000 shares of common stock to the shareholders of HighBourne and Highway.
HighBourne, Champaign, Ill., is a van carrier and will operate as a division of XRG Logistics, the release said. Alabama-based Highway is a flatbed carrier with more than 20 trucks. Transport Topics
Trade Gap Narrows in February
The U.S. trade deficit shrank to $42.1 billion in February, down more than 3% from the month before, the Commerce Department reported Wednesday.U.S. exports rose 4% to a record $92.4 billion, the highest monthly increase since October 1996, while imports rose 1.6% to a record $134.5 billion.
Stronger economic growth and the weak U.S. dollar both played a role in the record imports and exports, Labor said. Transport Topics
Eaton's Profit Rises 86%
Eaton Corp. said Wednesday its net income for the first quarter rose 86% and it raised its 2004 profit forecast.
rofits rose to $134 million or 85 cents a share, from $72 million or 50 cents, the company said in a statement. Sales rose 16% to $2.24 billion.
Eaton's truck segment posted sales of $381 million, up 39% from a year earlier, and recorded operating profits of $61 million.
The company boosted its full-year forecast for net income by 50 cents a share, to $3.65 to $3.80 a share. It expects second-quarter net income of 90 cents to $1. Transport Topics
U.S. Seeks States' Input on Private Amtrak Routes
The Bush administration on Tuesday sought information from states on how they would contract rail service to private companies if Amtrak were dismantled and some or all of its routes were open to competition, Reuters reported.The nation's passenger railroad also hauls some mail and express freight.
The government's plan would dismantle Amtrak's overarching responsibilities as a federal corporation over several years and turn over major oversight to the states, which could contract service to private companies or return the business to Amtrak.
Amtrak runs 250 trains in 46 states on an average weekday. It has operated city-to-city routes without competition for 33 years.
A spokesman for the railroad had no comment on the proposal, Reuters said. Transport Topics
FleetPride, Yellow Announce Parts Supply Agreement
FleetPride Inc. said Tuesday it reached an agreement with transportation firm Yellow Roadway Corp. to supply heavy-duty truck parts.The company said in a statement the deal would improve efficiency and reduce costs for Yellow associated in acquiring heavy-duty repair parts.
FleetPride said it operates more than 150 locations in 33 states. Transport Topics
Burlington Northern Led Union Pacific in Rail Cargo in 1Q
Burlington Northern Santa Fe Corp. led larger rival Union Pacific Corp. in quarterly rail shipments for the first time since 1998, Bloomberg reported.Union Pacific has struggled with delays and totaled 1.919 million shipments during the first quarter, while Burlington Northern totaled 1.925 million, Bloomberg said.
Burlington Northern's shipments rose 7.9% for the quarter, triple Union Pacific's growth rate. Delays reduced UP's profit by $50 million in the second half of 2003, and Union Pacific plans to hire at least 4,000 people this year to address the problem, Bloomberg said.
Union Pacific last trailed Burlington Northern in quarterly shipments in late 1998, when the bigger railroad also was hurt by delays. Transport Topics
