News Briefs - July 29
The Latest Headlines:
- Oil Prices Fall From Record in New York
- Overnite Reports Higher 2Q Profits
- Jobless Claims Rise by 4,000
- Revenues, Earnings Increase at Waste Management
- Freight Railroads Report Mixed Results
- Colorado City Wants Truckers to Stay on the Highway
- Overnite Reports Higher 2Q Profits
Oil Prices Fall From Record in New York
The price of crude oil declined from a record in New York on Thursday after Russia's Justice Ministry said OAO Yukos Oil Co., the country's largest oil exporter, can keep producing and selling oil, Bloomberg reported.Crude oil for September delivery fell 15 cents to $42.75 a barrel on the New York Mercantile Exchange. Futures surged to a record $43.05 a barrel during trading on Wednesday. Oil futures began trading in New York in 1983.
Prices had surged Wednesday after Yukos said a $3.4 billion tax bill may bankrupt the company and cause a halt in sales. Oil in New York is up 30 percent this year as threats to supplies from Russia, Saudi Arabia and Iraq coincide with rising world demand, Bloomberg said. Transport Topics
Overnite Reports Higher 2Q Profits
Less-than-truckload firm Overnite Corp. said late Wednesday its net income for the second quarter was $16.8 million or 60 cents per share, compared with $10.6 million or 38 cents a year earlier.Operating revenue was a record $418.5 million, an increase of 12.5%, the company said in a statement.
"We continued to benefit from a strong economy and increased market share as reflected by our tonnage growth of over 13% in the second quarter. The already firm pricing environment continued to improve throughout the quarter as demand strengthened and we implemented our general rate increase on June 7," said Leo Suggs, chairman and president.
Looking ahead, the company said its earnings for the third quarter would be in the range of 75 cents to 80 cents, and $2.15 to $2.25 for the full fiscal year.
Overnite is ranked No. 17 on the 2004 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Jobless Claims Rise by 4,000
The number of Americans filing new claims for jobless benefits rose by 4,000 to 345,000 in the week ended July 24, the Labor Department said Thursday.Economists said the weekly claims figures could be exaggerated because of seasonal closings in the auto industry, Bloomberg reported.
The closely watched four-week moving average, which smoothes week-to-week volatility to provide a better view of trends, slipped 1,000 to 336,250 from an upwardly revised 337,250, Labor said.
The number of people remaining on the benefit rolls after claiming an initial week of aid climbed 174,000 to 2.96 million in the week ended July 17, the latest for which figures are available. Transport Topics
Revenues, Earnings Increase at Waste Management
Waste Management Inc., the largest trash hauler, said Thursday its second-quarter earnings were $216 million or 37 cents per share, compared with $176 million or 30 cents a year earlier.Revenues for the quarter were $3.14 billion, an increase of 7% over the second quarter of 2003, Waste Management said in a statement.
"Higher volumes were the primary factor behind the increase in internal revenue growth and clearly indicate the effects of a growing economy," said David Steiner, chief executive officer. Transport Topics
Freight Railroads Report Mixed Results
Freight railroads Norfolk Southern Corp. and Kansas City Southern reported higher second-quarter profits, but CSX Corp. said its profits fell because of a restructuring charge.Norfolk said its net income was $213 million or 54 cents per share, compared with $137 million or 35 cents a year earlier.
Operating revenues rose 11% to a record $1.8 billion, while intermodal revenues climbed 21% to a record $364 million. Traffic growth from new truck-competitive services, increased units handled with trucking partners and strong international shipments helped drive the growth, Norfolk said.
KCS said its net income was $9.2 million or 11 cents per share, compared with a loss of $500,000 or 3 cents a year earlier.
However, CSX said its net income was $119 million or 55 cents, down from $127 million or 59 cents a year earlier. The company said the 2004 results included a charge of $9 million related to its "management restructuring initiatives." Transport Topics
Colorado City Wants Truckers to Stay on the Highway
Due to increased traffic, Fort Collins, Colo., is launching a campaign to persuade truckers to stay on the interstates rather than coming through the city, the Associated Press reported.About 600 trucks a day turn off Interstate 25 and travel through downtown on their way to U.S. Highway 287, a road that cuts northwest to Laramie, Wyo. The route shaves 17 miles and 10 minutes off driving to Cheyenne, Wyo., and then heading west on I-80.
In addition, many truckers prefer driving through Fort Collins because it's easy to find hotels, restaurants and gas stations, AP said.
However, the city has budgeted $300,000 for a yearlong advertising effort that will present a case for truck drivers to stay on the road to Cheyenne, Wyo. Transport Topics
