News Briefs - Jan. 30
The Latest Headlines:
- Manufacturing in Midwest Expands in January
- Overnite's Earnings Down on UP Separation Costs
- FedEx's Board to Submit Proposal for Yearly Elections
- Yellow Roadway Reports 4Q Loss
- USF Earns $13.6 Million in 4Q; Extends Stockholder Rights Plan
- Marten 4Q Profits Rise on Higher Revenues
- USA Truck Earnings, Revenues Surge
- FedEx Freight Expands Capacity at Six Locations
- Rail Intermodal Loads Rise 8% in Latest Week
- Overnite's Earnings Down on UP Separation Costs
Manufacturing in Midwest Expands in January
Factory activity in the Midwest expanded in January for a ninth straight month, according to a report released Friday.The National Association of Purchasing Management-Chicago said its factory index rose to 65.9 this month, the highest since July 1994, from 61.2 in December. Readings greater than 50 indicate expansion.
Manufacturing is one of trucking's largest and most important customers.
Overnite's Earnings Down on UP Separation Costs
Less-than-truckload carrier Overnite Corp. said late Thursday its net income for the fourth quarter was $3.1 million or 11 cents per share on operating revenue of $378.1 million, an increase of 7.7% from the fourth quarter of 2002.Overnite, which was spun off last year by Union Pacific Corp., said it earned $13.1 million a year earlier, when it was not a public company and did not have traded shares. Excluding $8.6 million of after-tax costs related to the separation, Overnite earned 38 cents a share in the most recent quarter.
"The stronger economic growth that began in the third quarter continued, albeit at a more modest pace, in the fourth quarter," said Leo Suggs, president and chairman of Overnite. "The company benefited from this growth and expects to continue benefiting from improvements in the economy in 2004."
The company, ranked No. 18 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies, said its net income for 2003 was $46.9 million. Transport Topics
FedEx's Board to Submit Proposal for Yearly Elections
FedEx Corp. said Friday its board of directors plan to submit a proposal to stockholders that would require each director to stand for election annually.The company said in a statement that its current bylaws divide the board into three classes, with directors elected to staggered three-year terms. Stockholders will vote on the proposal in September, FedEx said.
FedEx is ranked No. 2 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Yellow Roadway Reports 4Q Loss
Yellow Roadway Corp., formed by the combination in December of the two largest U.S. carriers in the less-than-truckload segment, reported a fourth-quarter loss of $672,000 on acquisition-related costs.Yellow bought Roadway in 2003 for $966 million plus the assumption of $140 million in debt.
The loss per share was 2 cents, the company said in a release. Yellow Roadway said it expected the combined company to earn between $2.70 and $3.30 per share in 2004, based on expected revenues of $6.5 billion.
Chief Executive Officer Bill Zollars said those figures included a net cost savings of about $50 million and economic assumptions of a 4% growth rate this year for U.S. gross domestic product and industrial production.
Yellow Corp.’s fourth-quarter profit in 2002 had been $14.2 million or 48 cents a share. Roadway’s had been $28.1 million or $1.48 a share. Transport Topics
USF Earns $13.6 Million in 4Q; Extends Stockholder Rights Plan
Transportation firm USF Corp. said Friday its fourth-quarter profits were $18.7 million or 68 cents per share, compared with $13.6 million or 50 cents a year eariler. The results included a $10 million pretax gain from the sale of a terminal in New Jersey and a $1 million charge for taxes.USF also said its board of directors approved an extension of its stockholder rights plan through 2014 and that Thomas Bergmann would replace retiring Chief Financial Officer Christopher Ellis.
Revenue for the quarter totaled $546.6 million, down from $580.7 million a year earlier, the company said in a statement.
For the full year, USF said its net income was $44 million or $1.61 per share, compared with $33 million or $1.22 the year before. Transport Topics
Marten 4Q Profits Rise on Higher Revenues
Refrigerated truckload carrier Marten Transport Ltd. said Friday its earnings for the fourth quarter were $3.5 million or 24 cents per share, compared with $579,000 or 6 cents a year earlier.The company said in a statement operating revenue increased 11.7% to $85.2 million.
For the full year, net income increased to $11.8 million or $1.02 per share, from $6 million or 61 cents in 2002.
Marten is ranked No. 58 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
USA Truck Earnings, Revenues Surge
USA Truck Inc. said Friday its net income for the fourth quarter was $1.1 million or 12 cents, compared with $526,746 or 6 cents a year earlier.Revenues rose 10% to $74.2 million, the truckload carrier said in a statement.
For the full year, earnings were $3.4 million or 36 cents per share, compared with $2.6 million or 28 cents in 2002.
USA Truck is ranked No. 60 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
FedEx Freight Expands Capacity at Six Locations
Less-than-truckload carrier FedEx Freight said Thursday it opened a new service center in Boise, Idaho, and increased capacity at five other locations.The subsidiary of FedEx Corp. said in a statement the Boise center 53 dock doors, more than double the number of doors as the previous service center.
The company also said it opened or expanded service centers in Bangor, Maine; Providence, R.I.; Kankakee, Ill.; Oklahoma City and Jackson, Miss.
FedEx is ranked No. 2 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Rail Intermodal Loads Rise 8% in Latest Week
The number of intermodal loadings on the nation’s railroads increased by 8% in the week ended Jan. 24 from the same week last year, the Association of American Railroads said Thursday.Intermodal is the segment of the rail industry that most directly competes with long-haul trucking.
AAR said in the latest week, container traffic rose 5.9%, while trailer volume was 14.6% higher.
For the first three weeks of 2003, intermodal loadings totaled 584,938 trailers or containers, up 5.3% over last year’s pace. Transport Topics
