News Briefs - July 15
The Latest Headlines:
- Landstar's 2Q Earnings Rise to Record
- Old Dominion's Profits Top Its Guidance
- N.Y. Fed's Factory Index Rises in July
- Business Inventories Rise 0.4% in May
- Eaton's Profits Rise; Sales at Truck Segment Grow
- Jobless Claims Rise by 40,000 in Latest Week
- DHL Named Transportation Provider for QuikDrop
- Segmentz President Flynn Gives Up CFO Role
- Old Dominion's Profits Top Its Guidance
Landstar's 2Q Earnings Rise to Record
Truckload carrier Landstar System Inc. said Thursday its net income for the second quarter rose to a record $17.6 million or 57 cents per share, from $13.6 million or 42 cents a year earlier.Revenue rose 24% to a record $482 million, the company said in a statement.
Landstar said its carrier group of companies generated $364 million of revenue, compared with $303 million in the second quarter of 2003.
Landstar is ranked No. 15 on the 2004 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Old Dominion's Profits Top Its Guidance
Less-than-truckload carrier Old Dominion Freight Line Inc. said Thursday it earned $10.5 million or 43 cents per share, compared with $6.5 million or 27 cents a year earlier.The company said in a statement the results were above its guidance of 38 cents to 40 cents for the quarter.
Revenue from operations increased 23.4% to $202 million. Old Dominion said the revenue growth reflected stronger volumes and improved pricing.
Old Dominion is ranked No. 27 on the 2004 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
N.Y. Fed's Factory Index Rises in July
The Federal Reserve Bank of New York said its index of manufacturing activity rose to 36.5 in July from a revised 29.9 in June.The index, compiled by the Buffalo branch of the regional bank, expanded for the 15th straight month. It hit a record high of 42.1 in February and has stayed above zero, showing expansion, since April 2003.
The index of new orders rose to 36.5 this month from 26.2 in June, while a gauge of factory shipments rose to 34.7 from 33.1.
A gauge of the number of employees rose to 14 from 12.7 in June, the Fed said. Transport Topics
Business Inventories Rise 0.4% in May
Inventories at U.S. companies grew 0.4% in May, the ninth consecutive increase, the Commerce Department reported Thursday.The increase in inventories brought their value to $1.22 trillion and followed a 0.7% jump in April. Commerce also said business sales rose 0.7% in May to $937.6 billion, after an April decrease of 0.1%.
When inventories and sales are growing, it usually means trucking is seeing additional demand to deliver goods and restock shelves.
The inventory-to-sales ratio, a measure of the time stockpiles last at the current pace of demand, held at a record low of 1.3 months, where it has been since March. The ratio suggests companies have boosted production enough to avoid shortfalls, without building excess stockpiles, Bloomberg said. Transport Topics
Eaton's Profits Rise; Sales at Truck Segment Grow
Eaton Corp. said Thursday its earnings for the second quarter were $161 million or $1.03 per share, compared with $93 million or 64 cents a year earlier.Sales rose 10% to a record $2.4 billion, the company said in a statement. Eaton said its truck segment reported sales of $436 million in the quarter, up 38% from a year earlier. The segment's operating profits were $78 million.
"As we survey our end markets in 2004, we now anticipate growth of between 7% to 8%," said Chairman and Chief Executive Officer Alexander Cutler. "The mobile hydraulics and truck markets, in particular, are stronger than we had anticipated, as are the residential electrical markets."
Looking ahead, the company said net income for the third quarter would be $1 to $1.10 per share. Transport Topics
Jobless Claims Rise by 40,000 in Latest Week
The number of U.S. workers filing new claims for jobless benefits rose by 40,000 to 349,000 for the week ended July 10, the Labor Department said Thursday.Labor said in its report that the last two weeks have been distorted because of difficulties adjusting for seasonal shutdowns at auto plants. Claims are difficult to interpret in July, when automakers shut plants to retool for new models and workers not eligible for vacation pay may apply for benefits, Bloomberg said.
Still, the four-week moving average of claims, which eases weekly fluctuations, rose by 3,250 to 339,000.
The number of people continuing to collect state jobless benefits increased by 112,000 to 2.971 million in the week that ended July 3, the highest since May 22. The statistics are reported with a one-week lag to initial claims. Transport Topics
DHL Named Transportation Provider for QuikDrop
DHL said Wednesday it was awarded an exclusive delivery agreement with QuikDrop International, the largest eBay drop-off store franchise.QuikDrop stores allow eBay users to drop off items worth at least $50 for listing on the online auction site. QuikDrop said it then handles payment and DHL shipping arrangements with the winning bidder.
The deal calls for DHL to provide U.S. express, deferred and ground delivery, in addition to international delivery for all shipments that require transportation direct to consumers from QuikDrop stores and from store to store.
There are currently 12 QuikDrop stores in the United States, with another four expected to open in the next month, the companies said in a statement. In addition, franchise contracts are in place to open over 337 stores in the United States and 95 stores internationally. Transport Topics
Segmentz President Flynn Gives Up CFO Role
Transportation and logistics services company Segmentz Inc. said it named Andrew Norstrud as its new chief financial officer, effective July 13. Norstrud replaces John Flynn, who will continue as the president, the company said."The accelerated pace of growth Segmentz has experienced these past two quarters has made it impossible for one person to handle the split role," Flynn said in a statement.
Norstrud joined Segmentz from Grant Thornton LLP, where he served as assurance manager, Segmentz said. Allan Marshall is the company's chief executive officer. Transport Topics
