News Briefs - March 22
The Latest Headlines:
- DaimlerChrysler Sees Increase in Profit at Truck Unit
- FedEx Expected to Sell Debt
- Vitran Says CN Strike Hurt Revenue
- Coalition Files Final Brief in Mexican Truck Case
- Global Demand Places Strain on Oil Industry
- FedEx Expected to Sell Debt
DaimlerChrysler Sees Increase in Profit at Truck Unit
Executive board member Eckhard Cordes told a German newspaper that DaimlerChrysler AG is expecting higher 2004 operating profit at its commercial vehicles unit, Bloomberg reported.Cordes said he expected the truck unit to meet the group's target for return on net assets of 13% after posting a return of 10.6% in 2003, Bloomberg said.
DaimlerChrysler previously said its 2003 worldwide commercial vehicle sales rose 3% percent, helped by growth in North America and Asia. Transport Topics
FedEx Expected to Sell Debt
FedEx Corp. is expected to sell $1.6 billion of debt as soon as Monday, Bloomberg reported, citing sources "familiar with the matter."The sale includes one-year floating-rate notes, three-year and five-year fixed-rate notes, and is expected to be completed Monday.
J.P. Morgan Chase & Co. is managing the offering, Bloomberg said. Proceeds will be used to repay short-term debt.
FedEx is ranked No. 2 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Vitran Says CN Strike Hurt Revenue
Toronto-based transportation firm Vitran Corp. said Monday the Canadian National Railway strike would negatively impact its first-quarter revenue by $1.3 million to $1.6 million."From a financial perspective, the biggest challenge has been increased costs arising from significant driver delays at all CN intermodal yards, combined with a shift of certain business to our higher cost highway operation," Rick Gaetz, Vitran President said in a statement.
The company said its net income for the first quarter would be 7 cents to 9 cents per share, while profit for the full year would be 92 cents to $1.00.
Vitran is ranked No. 57 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Coalition Files Final Brief in Mexican Truck Case
A coalition of groups seeking an environmental review of the impact of Mexican truck operations in the United States filed its final brief with the U.S. Supreme Court before arguments scheduled for April 21.he brief was filed March 12, the same day a group of nine states filed a “friend-of-the-court” brief in support of the review.
The coalition, headed by consumer advocacy group Public Citizen, said it was not opposed to Mexican truck access but rather the lack of an environmental review process.
Mexican trucks were supposed to be afforded full access to U.S. highways under the North American Free Trade Agreement, but rules imposed under the Clinton administration placed a moratorium on cross-border trucking.
In 2002, President Bush began the process of opening the border to Mexican trucks, but Public Citizen sued to force an environmental review. That suit was upheld by the Ninth Circuit Court of Appeals in January 2003, before the Department of Transportation appealed to the Supreme Court. Sean McNally
This story appeared in the March 22 print edition of Transport Topics.
Global Demand Places Strain on Oil Industry
Global demand is straining the world's ability to produce and deliver crude oil and gasoline, the Wall Street Journal reported Monday.Although a slowdown in demand growth or a surprise decision by OPEC to pump more oil could quickly lower oil prices, strong demand growth in the United States, China and other nations is bringing the oil industry closer to the limits of its ability to supply, refine and transport oil, the Journal said.
The world is consuming about 80 million barrels a day of oil, with unused production capacity of about 2.5 million barrels a day, the cushion against supply shocks.
Meanwhile, the world's ability to refine crude oil into gasoline is also growing tight, the Journal said. Estimates show that spare oil-refining capacity has narrowed markedly since January 1999, when global capacity showed a surplus over demand of 5.7 million barrels a day.
In addition, transporting crude oil has become more expensive, and officials said the high cost of transport accounts for the increasing premium being paid for oil. Transport Topics
