News Briefs - Dec. 11
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The Latest Headlines:
- Yellow Expects Profits of $3 a Share After Buying Roadway
- Jobless Claims Rise by 13,000 in Latest Week
- November Import Prices Rise 0.4%
- Owens to Replace Retiring Barton as Caterpillar Chairman, CEO
- UTi COO to Retire; 3Q Net Income Increases 39%
- Jobless Claims Rise by 13,000 in Latest Week
Yellow Expects Profits of $3 a Share After Buying Roadway
Yellow Corp., which said its purchase of rival Roadway Corp. will be completed Thursday afternoon, said it expected earnings of about $3 per share next year for the combined company.The purchase, already approved by shareholders of both companies, will form Yellow Roadway Corp.
ellow is paying $490 million for 10.2 million shares, or half of Roadway stock, and issuing $563 million in shares. The new company will have about 48 million shares outstanding, Bloomberg reported. Transport Topics
Jobless Claims Rise by 13,000 in Latest Week
The number of Americans filing first-time applications for unemployment benefits rose by 13,000 to 378,000 in the week ended Dec. 6, the highest level in six weeks, the Labor Department said Thursday.Labor noted the Thanksgiving Day holiday Nov. 27 contributed to last week's increase as idled workers delayed filing from the week before.
The four-week moving average of claims, a less volatile measure, edged up last week by 2,250 to 364,750.
The number of people continuing to collect state jobless benefits increased to 3.346 million in the week that ended Nov. 29 from 3.335 million a week earlier. Transport Topics
November Import Prices Rise 0.4%
Prices of goods imported into the United States rose 0.4% in November, the first increase since July, the Labor Department reported Thursday.The increase was due in large part to the recent decline in the value of the dollar, which made foreign goods more expensive, Bloomberg said.
Higher prices for imports could hurt truckers who carry goods inland from ports to stores and warehouses.
Last month's increase followed no change in October. Excluding petroleum, the index gained 0.3% after falling 0.1% the previous month.
abor also said prices of U.S. products exported to other countries rose 0.5% in November after gaining 0.3% a month earlier. Transport Topics
Owens to Replace Retiring Barton as Caterpillar Chairman, CEO
Diesel engine maker Caterpillar Inc. said Wednesday James Owens would replace retiring Chairman and Chief Executive Officer Glen Barton.Owens was named vice chairman and will assume the new roles when Barton retires Jan. 31, Caterpillar said in a release.
Barton, who spent 43 with Caterpillar and the last five as chairman and CEO, turns 65 in August, the mandatory retirement age for Caterpillar officers.
Owens, 57, has been with the company since 1972. Transport Topics
UTi COO to Retire; 3Q Net Income Increases 39%
UTi Chief Operating Officer and President Peter Thorrington said Wednesday he would retire in 2004 to focus on charitable work just as the logistics provider reported a 39.2% increase in net income for its 2004 third fiscal quarter.Rancho Dominguez, Calif.-based UTi said Thorrington would remain in his positions until a successor is named, at which time a transition period and exact retirement date would be determined. After retiring, Thorrington said he would continue as director of the company.
For the three months ended Oct. 31, UTi posted net income of $13.2 million on revenue of $156.5 million. That compared with net income of $9.5 million on revenue of $107.5 million a year earlier. UTi attributed its increase in earnings in part to its acquisition of Standard Corp. last year.
Gross revenues for the period rose 24% to $398.7 million from $321.5 million a year earlier. Transport Topics
