News Briefs - Aug. 4
The Latest Headlines:
- Illinois Debate Over Truck Speed Limits Continues
- Union Pacific Approves Overnite IPO Sale
- Yellow Says July Volumes 10% Higher Than Year Ago
- Boyd Bros. Reports Higher Earnings
- Smithway’s 2Q Loss Narrows
- FMCSA Extends Audit Deadline
- Union Pacific Approves Overnite IPO Sale
Illinois Debate Over Truck Speed Limits Continues
Illinois Gov. Rod Blagojevich vetoed last week a bill that would have increased speed limits for trucks to 65 mph on rural interstate highways, but proponents vow to override the veto, the Associated Press reported.Blagojevich said he blocked the bill because the severity of a crash involving a large truck increases dramatically with a rise in speed, AP said.
Truckers argue that uniform limits are safer. Having two different speed limits causes slower-moving trucks to clog the roadway and make car drivers more impatient, according to AP.
Union Pacific Approves Overnite IPO Sale
Union Pacific Corp. has approved the sale of Overnite Transportation Co., its trucking subsidiary, through an initial public offering.Overnite is one of the largest less-than-truckload carriers with over 6,000 tractors, 21,000 trailers and 14,400 employees, it said in a release.
The shares will be offered by an underwriting group managed by Credit Suisse First Boston and Morgan Stanley & Co.
Overnite is ranked No. 18 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Yellow Says July Volumes 10% Higher Than Year Ago
Transportation firm Yellow Corp. said Monday that July volumes were about 10% higher than a year ago, and despite expenses related to the recently announced purchase of Roadway Corp., it was sticking with its third-quarter earnings prediction of 70-80 cents per share.The company also said it was seeking to raise about $150 million through a private offering of contingent convertible senior notes.
Yellow is ranked No. 8 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Boyd Bros. Reports Higher Earnings
Flatbed carrier Boyd Bros. Transportation Inc. said Monday that its net income for the second quarter was $645,291 or 23 cents per share, compared with $607,350 or 22 cents a year ago.Operating revenues rose 4% to $34.4 million, the company said in a release.
Chief Executive Officer Gail Cooper said there continues to be price pressures from higher fuel costs and higher benefit costs for employees, but the company said it was in position to grow once the “much-anticipated economic recovery gains traction.” Transport Topics
Smithway’s 2Q Loss Narrows
Smithway Motor Xpress Corp. said late Friday that its second-quarter net loss was $458,000 or 9 cents per share, compared with a loss of $1.2 million or 24 cents a year ago.The truckload carrier said operating revenues declined more than 6% to $42.2 million.
In an attempt to return to profitability, the company said five operating terminals have been consolidated into existing locations and two maintenance facilities have been closed.
Smithway is ranked No. 85 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
FMCSA Extends Audit Deadline
The Federal Motor Carrier Safety Administration said last week that it would extend its deadline to perform safety audits on all new motor carriers, both foreign and domestic, as a result of a court ruling that prohibited Mexican-domiciled carriers from operating throughout the United States.FMCSA was supposed to begin audits of Mexican carriers this year as the last step to allowing them to deliver into the United States. Since then, however, a federal court ruled that the Transportation Department must do an environmental impact study before admitting Mexican trucks.
FMCSA said in a Federal Register notice July 28 that it would begin the safety audits next year.
The audits are supposed to be given within 18 months of a new carrier’s commencing operations, to help improve its safety performance. The audits, known as compliance reviews, were required by the 1999 Motor Carrier Safety Improvement Act. Transport Topics
This story appeared in the Aug. 4 print edition of Transport Topics.
