News Briefs - July 22
The Latest Headlines:
- UPS 2Q Profits Increase on Overseas Shipments
- CNF Earnings Slip in 2Q
- Wabash Receives Trailer Order From U.S. Xpress
- Swift’s Profits, Revenues Rise
- Airborne, Deutsche Post Deal Can Move Forward
- UPS to Pay $9.9 Million to Settle Deaf Workers' Suit
- Wabash to Sell Some Assets to Aurora
- Oregon Warns of Detour on I-5 Tuesday Night
- Volvo Invests in New Truck Model to Improve Sales
- CNF Earnings Slip in 2Q
UPS 2Q Profits Increase on Overseas Shipments
United Parcel Service said Tuesday that second-quarter profits increased on strong demand for overseas shipments.Net income for the quarter was $692 million or 61 cents a share, compared with $611 million or 54 cents a share a year ago. Analysts had expected 59 cents per shar,e Reuters reported.
Revenue totaled $8.23 billion, an increase of 7.1%. The Atlanta-based company said international revenue rose 19.8% to $1.37 billion.
UPS is ranked No. 1 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
CNF Earnings Slip in 2Q
CNF Inc. said late Monday that its net income for the second quarter was $16.3 million or 31 cents per share, compared with $19.8 million or 37 cents per share in the second quarter of 2002.Revenue for the quarter was $1.24 billion, compared with $1.19 billion last year.
"Tonnage levels were flat in our trucking operations and North American air freight volumes declined, said Gregory Quesnel, CNF chief executive officer.
Subsidiary Con-Way Transportation Services, which includes three regional less-than-truckload carriers, saw operating income increase 24% to $43.6 million and revenue increase 7% to $541.4.
CNF is ranked No. 4 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Wabash Receives Trailer Order From U.S. Xpress
Wabash National Corp. said Monday that it had received a three-year order agreement for more than 7,000 trailers from truckload carrier U.S. Xpress Enterprises Inc.The Wabash National DuraPlate branded trailers will be equipped with ArvinMeritor's RideStar Highway Parallelogram air suspension system and Meritor TL trailer axles.
The complete undercarriage system will be assembled at ArvinMeritor's facility in Frankfort, Kent., Wabash said in a release.
Wabash said the contract is worth more than $120 million.
U.S. Xpress is ranked No. 23 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Swift’s Profits, Revenues Rise
Truckload carrier Swift Transportation Co. Inc. said Monday that its profits and revenues both increased during the second quarter of 2003.Net income was $19.2 million or 23 cents per share, compared with $17.7 million or 20 cents a year ago, while revenues increased 10.7% to $584.9 million.
"Despite improvement in operating revenue and net earnings, we are disappointed with our results, said Jerry Moyes, Swift’s chairman and chief executive officer. “We will continue to focus on improving our rate per mile and reducing costs.”
Phoenix-based Swift is ranked No. 13 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Airborne, Deutsche Post Deal Can Move Forward
Airborne Inc.’s plan to sell its ground-delivery business to Germany’s Deutsche Post AG was not blocked by U.S. antitrust authorities before the expiration of a review period, Bloomberg reported Tuesday.Airborne shareholders are scheduled to vote on the $1.05 billion deal on Aug. 14, Bloomberg said.
Deutsche Post said in March it made a deal to purchase the ground portion of Airborne to gain a U.S. truck delivery network.
However, United Parcel Service and FedEx Corp. asked the government to investigate whether the deal violated a law limiting foreign ownership of a U.S. air carrier to 25%. Transport Topics
UPS to Pay $9.9 Million to Settle Deaf Workers' Suit
United Parcel Service agreed to pay $9.9 million to settle a discrimination lawsuit filed by deaf workers, Bloomberg reported late Monday.The Atlanta-based company will pay $5.8 million to 1,000 deaf and hearing-impaired workers plus $4.1 million in attorneys' fees, Bloomberg said. The company did not admit any wrongdoing as part of the set-tlement.
he federal lawsuit filed in San Francisco in November 2001 claimed UPS did not provide hearing-impaired workers with interpreters or other communication aids.
UPS is ranked No. 1 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Wabash to Sell Some Assets to Aurora
Wabash National Corp. said Tuesday it had agreed to sell nearly all of the assets of its trailer leasing, trailer renting and wholesale aftermarket parts distribution businesses to Aurora Trailer Holdings LLC.As a result of the deal, Wabash will record a $29 million asset impairment charge during the second quarter.
Wabash and Aurora also have entered into long-term arrangements for the supply of parts by Aurora to Wabash's branches, and the supply of new and used trailers and maintenance services by Wabash to Aurora.
Wabash said in a release the deal is worth about $65 million to $70 million, with $55 million to be paid in cash upon closing of the deal.
The transaction is expected to be completed during the third quarter. Transport Topics
Oregon Warns of Detour on I-5 Tuesday Night
The Oregon Department of Transportation said that southbound traffic on Interstate 5 would be detoured at Exit 102 from 9 p.m. Tuesday until noon on Wednesday.Interstate 5 is the main north-south route along the West Coast. The detour of the Gazley Road off-ramp is necessary as I-5 is realigned for the new Fords Bridge, located about two miles north of Canyonville, Ore.
The $12.8 million project replaces the existing I-5 bridge with two parallel spans across the south fork of the Umpqua River, ODOT said in a release. Transport Topics
Volvo Invests in New Truck Model to Improve Sales
Volvo AB spent $120 million to develop the FH16 truck model, which has a sleeping compartment that converts into an office, Bloomberg reported Tuesday.The FH16 is built to handle 60-ton trailers and is equipped with a 16-liter diesel engine. It is part of Chief Executive Leif Johansson's strategy to win customers and boost sales in Europe, Bloomberg said.
Sweden-based Volvo is expected to report a 24% increase in net income for the second quarter when it reports on Wednesday. Transport Topics
