News Briefs - June 24
The Latest Headlines:
- Senate Committee Endorses Sandberg
- FedEx's Fiscal 4Q Profits Rise
- Daimler Expected to Save $116 Million at Truck Division
- EPA, Justice to Look at 1998 Diesel Pact
- Price of Crude Falls on Inventory Expectations
- Mad Cow Ban Continues Hurting Canadian Trucking
- FedEx's Fiscal 4Q Profits Rise
Senate Committee Endorses Sandberg
The Senate Commerce, Science and Transportation Committee last week endorsed Annette Sandberg as head of the Federal Motor Carrier Safety Administration, the Associated Press reported.Sandberg has been the agency's acting administrator since December. FMCSA regulates commercial vehicles such as trucks and buses.
She served as deputy administrator of the National Highway Traffic Safety Administration prior to joining FMCSA, AP said.
FedEx's Fiscal 4Q Profits Rise
FedEx Corp. on Tuesday reported a net income of $280 million or 92 cents per share for its fiscal fourth quarter ended May 31, compared with $236 million or 78 cents per share a year ago.The Memphis, Tenn.-based package delivery company said total revenue was $5.83 billion, an increase of 8%.
Total average daily package volume at FedEx Express and FedEx Ground grew a combined 5%, the company said.
For the full fiscal year, FedEx said earnings were $2.74 per share, well above the $2.34 per share reported last year.
Looking ahead, the company said the U.S. economy would likely remain "sluggish" during the fiscal first quarter, but things should improve in the following quarters.
FedEx is ranked No. 2 on the 2002 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
(Click here for the full press release.)
Daimler Expected to Save $116 Million at Truck Division
DaimlerChrysler AG expects to save more than $116 million at its truck division after its upcoming reorganization, German newspaper Handelsblatt reported Tuesday.This report came a day after another German paper said Daimler would announce next month it would unite its Mercedes-Benz and U.S. truck units with the powersystems unit to form one truck division. (Click here for the full story.)
No job cuts are planned despite the reorganization, Handelsblatt said.
Daimler may consider developing a truck that could be sold in all markets, helping them save additional money, Bloomberg reported. Transport Topics
EPA, Justice to Look at 1998 Diesel Pact
Officials of the Environmental Protection Agency and the Department of Justice have set a public hearing July 15 to examine implementation of the government’s 1998 consent agreement with heavy-duty diesel engine makers.Under threat of federal prosecution for allegedly violating the Clean Air Act, seven engine manufacturers signed consent decrees requiring them to produce cleaner-running engines 15 months earlier than the date EPA had set for diesel engines with reduced nitrogen oxides emissions.
The government also fined the engine companies $83.4 million and ordered them to spend about $1 billion on improving their engines and emissions controls. Transport Topics
This story appeared in the June 23 print edition of Transport Topics.
Price of Crude Falls on Inventory Expectations
The price of crude oil fell to a four-week low on Tuesday on expectations that the Energy Department will report the fifth weekly inventory rise in six weeks, Bloomberg reported.Crude is distilled down to motor fuels like diesel and gasoline, both of which are used to power the trucking industry.
U.S. supplies of crude oil probably rose between 1.1 million and 1.9 million barrels from 288.3 million in the week ended Friday, according to a Bloomberg survey.
Crude oil for August delivery was down 40 cents, or 1.4%, at $28.77 a barrel on the New York Mercantile Exchange, the lowest price since May 29.
DOE's weekly report on petroleum inventories, production and imports is scheduled for release at 10:30 a.m. EDT. Transport Topics
Mad Cow Ban Continues Hurting Canadian Trucking
The mad cow disease scare could cost the Canadian industries more than $650 million, even if the ban on exports to the United States is lifted by July 1, Saskatchewan News Network reported Tuesday.The ban has cost an estimate $250 million in reduced activity at packing plants and trucking firms alone.
A final report by a panel of international experts on the safety of Canadian beef is expected this week, and a likely scenario is a gradual lifting of the ban, the article said.
Canada annually exports $4 billion worth of cattle and beef, of which $3.5 billion or 87% goes to the United States. Transport Topics
