News Briefs - Aug. 4
The Latest Headlines:
- FAA Wants Fewer Flights at Chicago's O'Hare
- ISM’s Non-Manufacturing Index Rises in July
- Trailer Bridge Reports Profit in 2Q
- Hurricane Alex Brings Flooding to N.C.
- Werner Repurchases 259,600 Shares During 2Q
- July’s Job-Cut Announcements Decline From Year Earlier
- Investment Strategist Says U.S. Should Release Oil From SPR
- ISM’s Non-Manufacturing Index Rises in July
FAA Wants Fewer Flights at Chicago's O'Hare
Airline officials on Wednesday threatened to limit commercial flights into and out of Chicago's O'Hare airport to reduce delays that are causing congestion throughout the nation's aviation system, news services reported.Federal Aviation Administration Administrator Marion Blakey said the agency could take that step if airlines do not agree to cut their schedules voluntarily, Reuters reported.
Passenger planes often times carry cargo that is later transferred to trucks.
There were nearly 59,000 delays at O'Hare this year through June. A flight is considered delayed when it is at least 15 minutes late. Transport Topics
ISM’s Non-Manufacturing Index Rises in July
The Institute for Supply Management said Wednesday its non-manufacturing index rose to 64.8 in July from 59.9 the month before.The index has been greater than 50, signaling expansion, since April 2003. This index measures the services sector, which is the largest segment of the economy and includes trucking.
Twelve of 17 industries reported increases in activity, led by transportation, communications and business services, ISM said.
The index of new orders for non-manufacturing companies rose to 66.4 from 62.4. Order backlogs slipped to 55.0 from 55.5 and the inventory index fell to 54.0 from 57.5.
The survey's employment index declined to 50.0 from June's 57.4, which was a record, ISM said. Transport Topics
Trailer Bridge Reports Profit in 2Q
Trailer Bridge Inc., a provider of integrated trucking and marine freight services, said Wednesday its net income for the second quarter was $988,823 or 4 cents per share, compared with a net loss of $665,342 or 11 cents a year earlier.Total revenue was $24.1 million, an increase of 7.9% from the second quarter of 2003, the company said in a statement.
"It's an entirely different sector today as the effects of an improving supply/demand equation continue to roll out. We are now beginning to experience the more pronounced bottom line effect from increased rates," said John McCown, chairman and chief executive officer. Transport Topics
Hurricane Alex Brings Flooding to N.C.
Hurricane Alex spared the North Carolina coast a direct hit, but did bring some flooding to the Outer Banks, the Associated Press reported.Winds reached 100 mph, sending trash bins and other debris floating along a flooded Highway 12, AP said. Thousands of people lost power due to the storm.
Alex grew to hurricane strength, 74 mph, early Tuesday; by midday the sustained wind around its eye had revved up to nearly 100 mph, with higher gusts, the National Hurricane Center said. Transport Topics
Werner Repurchases 259,600 Shares During 2Q
Truckload carrier Werner Enterprises Inc. repurchased 259,600 shares of its common stock during the second quarter, Dow Jones reported, citing Werner’s quarterly report filed with the Securities and Exchange Commission.he purchases were part of a 2003 plan to expand its buyback program to up to 8.1 million shares. As of June 30, Werner said it had purchased just over 3.9 million shares and had authorization to purchase about 4.2 million more.
erner is ranked No. 18 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
July’s Job-Cut Announcements Decline From Year Earlier
Large U.S. companies announced plans to cut 69,572 jobs during July, an 18% decrease from a year earlier, according to a survey by placement firm Challenger, Gray & Christmas Inc.July’s total was 8% higher than the 64,343 reductions announced in June, the lowest monthly total in nearly a year. The numbers are not adjusted for seasonal variations, making it difficult to compare them from one month to the next, Bloomberg reported.
Since January, employers have announced 542,307 job cuts, 24% fewer than the 715,649 announced in the first seven months of 2003, the survey said.
Announced plans to hire, which the firm tracked for the first time in May, fell 30% to 26,880 in July from 38,377 a month earlier.
Announced cuts are not the same as layoffs or firings, because some employees are reassigned, other cuts never actually take place and some are done through early retirement and other means. Transport Topics
Investment Strategist Says U.S. Should Release Oil From SPR
Thomas McManus, chief investment strategist at Banc of America Securities LLC, said the United States should release some oil from the Strategic Petroleum Reserve to push oil and fuel prices down, Bloomberg reported.McManus said in an interview that high gasoline prices could hurt consumer spending, which has been a main component of the economic recovery and increases the demand for trucking services, Bloomberg said.
Personal spending declined 0.7% in July, the Commerce Department said Tuesday. The Department of Energy said Monday the average retail price for regular gasoline fell 1.7 cents to $1.888 a gallon, 41 cents higher than a year ago.
He said price relief could give producers the confidence to invest and to hire more workers, Bloomberg reported. Transport Topics
