News Briefs - Feb. 17
The Latest Headlines:
- Report: States Concerned With Delays on Emissions Rules
- SCS Buys Clark Bros. for $30.5 Million
- Allied Reports 4Q Net Loss
- N.Y. Manufacturing Index Rises in February
- Lundberg: Price of Diesel, Gasoline Continues Rising
- Senate to Debate Smaller Energy Bill
- Bandag Acquires Majority Interest of Speedco
- Yellow Roadway Logistics Unit Buys U.K. Firm
- SCS Buys Clark Bros. for $30.5 Million
Report: States Concerned With Delays on Emissions Rules
State air pollution officials are concerned the trucking industry may try to delay Environmental Protection Agency regulations on diesel emissions scheduled to go into effect in 2007, the Washington Post reported Tuesday.Bill Becker, executive director of the State and Territorial Air Pollution Program Administrators and the Association of Local Air Pollution Control Officials, sent a letter to American Trucking Associations President Bill Graves warning that if the rules are delayed, states would consider adopting a California rule, which is as stringent as the federal one, the Post said.
Graves responded by saying it was too early for ATA to have a formal position on the implementation of the rule, according to the Post.
SCS Buys Clark Bros. for $30.5 Million
Transportation firm SCS Transportation Inc. said Monday it acquired Clark Bros. Transfer Inc., a Midwestern less-than-truckload carrier.The deal is worth $30.5 million including $6 million in debt.
SCS said in a statement Clark will be integrated into its Saia Motor Freight Line LTL unit. In 2003, Clark Bros. totaled $66 million in revenue, the release said.
SCS is ranked No. 25 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Allied Reports 4Q Net Loss
Allied Holdings Inc. said Tuesday its net loss for the fourth quarter of $4.3 million or 51 cents per share, compared with a net income of $2.1 million or 24 cents a year earlier.The company said in a statement the 2003 results include a $6.8 million charge to provide an increase in the valuation allowance for deferred income taxes. Revenues for the quarter were $224.7 million, a decrease of 3.5%.
"During 2004 we expect to benefit from improving external conditions including higher North American new vehicle production, which is expected to increase 4% in 2004," said Allied President Hugh Sawyer.
Allied, ranked No. on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies, said its net loss for the full year was $8.6 million. Transport Topics
N.Y. Manufacturing Index Rises in February
The Federal Reserve Bank of New York said Tuesday its Empire Manufacturing Survey rose to a record high 42.05 in February from a revised 38.85 the month before.This was the 10th straight month the index has improved, Reuters said. Manufacturing is one of trucking's largest and most important customers.
The new orders index edged up to 34.94 in February from a revised 34.82 in January, while shipments fell to 26.61 from 41.39.
The N.Y. Fed said respondents reported improved conditions and continued optimism, with nearly all those surveyed expecting conditions to be the same or better in six months. Transport Topics
Lundberg: Price of Diesel, Gasoline Continues Rising
The price of retail diesel increased 3 cents in the past three weeks to an average of $1.69 per gallon, while gasoline rose 3.61 cents to $1.68, according to the Lundberg Survey released Sunday.With the latest increase, retail prices have risen more than 17 cents a gallon since late December.
Analyst Trilby Lundberg told the Associated Press there were several factors behind the increases including OPEC's decision to cut oil production on April 1, high crude oil prices and cold winter weather that increased the demand for heating oil.
The survey found the weighted average price of gasoline, including taxes, at self-serve pumps Friday was about $1.65 for regular, $1.75 for midgrade and $1.84 for premium. Transport Topics
Senate to Debate Smaller Energy Bill
Senate leaders have pared down its energy bill to $14 billion from $31 billion and have agreed to move it directly to the Senate floor without first being considered in committees, news services reported.A $31 billion measure previously failed to pass in the Senate. The smaller bill preserves mandates for greater use of ethanol, but removes a measure that would have protected makers of the gasoline additive MTBE from product liability lawsuits, the Associated Press reported.
Debate of the bill is expected to begin shortly after the Senate returns from its recess Feb. 23.
The bill cuts about $10 billion from $25 billion in tax breaks for energy production and conservation, as well as several billion dollars in grants, AP said. Transport Topics
Bandag Acquires Majority Interest of Speedco
Tire retreader Bandag Inc. said Friday it acquired 87.5% of Speedco Inc., which provides lubrication services for the commercial trucking industry.Speedco has a total of 32 on-highway locations. Bandag said in a release it paid about $56 million to Shell Oil Products US.
“Bandag and Speedco create significant potential to improve the efficiency and costs of delivering vehicle services to the commercial trucking industry," said Bandag Chairman and Chief Executive Officer Martin Carver. Transport Topics
Yellow Roadway Logistics Unit Buys U.K. Firm
Yellow Roadway Corp.’s logistics subsidiary Meridian IQ said Feb. 5 it acquired the United Kingdom operations of air and ocean freight forwarder GPS Logistics for an undisclosed sum.The deal closed Jan. 31, and Meridian Chief Executive Officer Jim Ritchie is expected to disclose the purchase price in Yellow Roadway’s first-quarter earnings statement, said company spokeswoman Melissa Bauer.
The move to buy Hong Kong-based GPS comes six months after Meridian IQ subsidiary Yellow Global acquired GPS Logistics’ United States operations.
Meridian bought the U.S. assets of GPS Logistics in August for an undisclosed sum. Kevin Kinnaird
This story appeared in the Feb. 16 print edition of Transport Topics.
