News Briefs - Jan. 21
The Latest Headlines:
- Public Seeks More Rail Options on I-81 Corridor
- Velocity Express Names New CFO
- Union Pacific Post Record 4Q Income on Overnite Sale
- Housing Starts Surge to Near 20-Year High
- Eaton Announces 4Q Earnings, Stock Split
- Report: OPEC Needs to Address Possible Supply Glut
- Velocity Express Names New CFO
Public Seeks More Rail Options on I-81 Corridor
The two plans on the table to improve Interstate 81 in Virginia focus on tolls and adding lanes to the highway, but the public called for more rail transportation options in the corridor, the Associated Press reported.The Virginia Department of Transportation heard from the public during a statewide videoconference on Jan. 20, AP said. During that conference, VDOT said it heard several comments in favor of increasing use of rail transportation in the region.
A VDOT study said improvements to the rail system could take 500,000 trucks a year off of the congested interstate, AP reported.
Velocity Express Names New CFO
Velocity Express Corp. said Wednesday that it has appointed Robert Lewis as the company’s new chief financial officer.Lewis joins the Minneapolis-based logistics provider as part of a new financial team that includes John Masalisi as senior vice president of finance.
Lewis replaces Mark Ties, who is leaving Velocity at the end of February. Transport Topics
Union Pacific Post Record 4Q Income on Overnite Sale
Railroad giant Union Pacific Corp. said Wednesday that its fourth-quarter net income rose 46% to a record of $551 million or $2.12 a share, helped in part by its sale of its trucking subsidiary, Overnite Transportation Co.Dick Davidson, chief executive officer of Union Pacific said “strong cash generation” by its continuing operations and “proceeds from the sale of Overnite” helped the Omaha, Neb.-based company post record earnings in the quarter ended Dec. 31.
Overnite Transportation was sold in an initial public offering on Oct. 31.
Overnite is ranked No. 18 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Housing Starts Surge to Near 20-Year High
The Commerce Department said December housing starts rose 1.7% to a seasonally adjusted annual rate of 2.088 million units in December.The increase brought housing starts to its highest level since February 1984 when the adjusted rate was 2.26 million units.
The strong December closed out the best year for home construction since 1978. In 2003, builders broke ground on 1.85 million new homes, up from 1.7 million in 2002. The total was the highest since 1978 when new home construction reached 2.02 million units. Transport Topics
Eaton Announces 4Q Earnings, Stock Split
Eaton Corp., a leading manufacturer of truck parts, said its fourth-quarter net income rose 70% to $114 million or $1.44 a share due to currency gains and acquisitions.The Cleveland-based company also announced a 2-for-1 stock split and a 13% increase in the company’s dividend. The stock split will give shareholders as of Feb. 9 an additional share of stock.
The company said it increased its dividend to 54 cents from 48 cents a share. It would be payable on Feb. 27 to shareholders as of Feb. 9.
The company reported stronger sales in the final quarter of 2003, announcing a 17% increase in sales to $2.08 billion from $1.78 billion a year earlier. Transport Topics
Report: OPEC Needs to Address Possible Supply Glut
The Organization of Petroleum Exporting Countries issued a report warning of a supply glut and possible “considerable” decline in oil prices during the second quarter, Bloomberg reported.The report said that in the second quarter, demand for OPEC oil will average 24.72 million barrels a day while production in December averaged 27.73 million, Bloomberg reported.
Crude oil prices have risen to more than $34 a barrel, up from about a $24 last April, in part because oil inventories in the United States have fallen to their lowest point since 1975, Bloomberg said.
Generally, oil consumption declines in the second quarter as weather in North America and Europe warms. Transport Topics
