News Briefs - July 20
The Latest Headlines:
- Greenspan Says Economic Slump Will Be 'Short-Lived'
- Price of Oil Tops $42 Before Falling Back
- NHTSA Says Freightliner Recalls Some Trucks
- Net Income Increases at Arkansas Best
- Mullen's 2Q Profits Rise; Says Canadian Economy Strengthening
- Ryder's Board Approves Stock Repurchase Program
- Ceridian Delays Earnings Release
- Price of Oil Tops $42 Before Falling Back
Greenspan Says Economic Slump Will Be 'Short-Lived'
Federal Reserve Chairman Alan Greenspan said Tuesday a slowdown in consumer spending "should prove short-lived" and the central bank would continue to raise interest rates at a "measured" pace, news services reported.A decrease in consumer spending would also decrease the demand for trucking services to restock shelves in the months ahead.
Greenspan, in prepared testimony given to the Senate Banking Committee, said the overall economic expansion has become more broad-based and produced gains in employment.
Price of Oil Tops $42 Before Falling Back
The price of crude oil in New York rose as high as $42.30 on Wednesday, before ending the day below $41, Bloomberg reported.Crude oil for August delivery closed down 94 cents, or 2.3%, at $40.80 a barrel on the New York Mercantile Exchange. Oil came within 15 cents of its record high of $42.45 reached on June 2, Bloomberg said.
The Department of Energy is expected on Wednesday to say crude inventories declined by 950,000 barrels in the week ended Friday, Bloomberg said.
However, output of oil from the OPEC oil cartel could rise to 29.9 million barrels a day this month, up 400,000 barrels a day from June, according to a survey from PetroLogistics Ltd. Transport Topics
NHTSA Says Freightliner Recalls Some Trucks
The National Highway Traffic Safety Administration said that Frelightliner LLC had recalled trucks due to several different mechanical problems.NHTSA said Freightliner recalled up to 14,000 manual Business Class M2, Century, Columbia and Sterling HX models from 2002-2004 because the tapered joint that attaches the shifter to the transmission may become loose. Dealers would re-secure the shift lever to the transmission, NHTASA said.
In addition, up to 1,700 Business Class M2 models from 2004 were recalled because some incorrect springs were installed. Transport Topics
Net Income Increases at Arkansas Best
Less-than-truckload carrier Arkansas Best Corp. said Tuesday its net income for the second quarter was $19.3 million or 76 cents per share, compared with $15.2 million or 60 cents a year earlier.Total revenue was $424.5 million during the quarter, up from $384.8 million in the second quarter of 2003, the company said in a statement.
The company's largest subsidiary, ABF Freight System Inc., had revenues of $391 million, a per-day increase of 13.6% from a year earlier. Operating income was $32.8 million.
"ABF greatly benefited from an increase in business that began in February, surged in April and continued throughout the entire second quarter," said Robert Young III, Arkansas Best president.
Arkansas Best is ranked No. 16 on the 2004 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Mullen's 2Q Profits Rise; Says Canadian Economy Strengthening
Canadian transportation firm Mullen Transportation Inc. said late Monday its net income for the second quarter was $5.2 million Canadian or 34 cents per share, compared with $4.7 million or 32 cents a year earlier.Mullen said in a statement the results reflect the expensing of stock-based compensation, as required by new Canadian accounting standards.
The company said consolidated revenues were $91.1 million Canadian, up from $89.5 million in the second quarter of 2003.
Mullen said its trucking revenues were slightly lower, but overall demand for trucking services was a bit stronger due to a strengthening in the Canadian economy.
Mullen is ranked No. 63 on the 2004 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Ryder's Board Approves Stock Repurchase Program
Transportation firm Ryder System Inc. said late Monday its board of directors authorized a two-year share repurchase program.The company said in a statement the number of shares repurchased would not exceed the number of shares issued to employees under the company's employee stock option and employee stock purchase plans since May 1.
Ryder said it completed a $90 million share repurchase program announced in October 2003 during the second quarter.
Ryder is ranked No. 5 on the 2004 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Ceridian Delays Earnings Release
Ceridian Corp. said it postponed its second-quarter earnings release that had been scheduled for July 20.Through its Comdata subsidiary, Ceridian is a payment processor and issuer of credit cards, debit cards and stored value cards for the trucking and retail industries.
The company said in a statement the delay was prompted by its "recent initiation of a review focusing on the capitalization and expensing of certain costs in its U.S. Human Resource Solutions business."
Ceridian said it would announce the date of its earnings release at a later date. Transport Topics
