News Briefs - March 4
The Latest Headlines:
- Productivity Rises at 2.6% Clip in 4Q
- Smithway Founder Smith Dies
- OPEC May Raise Oil Output if Prices Stay High
- Dynamex's Fiscal 2Q Earnings Rise
- Yellow Roadway May Close Some Terminals
- Jobless Claims Fall by 7,000 in Latest Week
- Contrans Plans to Buy Elgin Cartage
- Smithway Founder Smith Dies
Productivity Rises at 2.6% Clip in 4Q
Worker productivity grew at a 2.6% annual rate in the fourth quarter of 2003, slightly less than the government previously estimated, the Labor Department said Thursday.Productivity, a measure of how much an employee produces for every hour of work, was initially reported at a 2.7% clip after a 9.5% annual rate in the third quarter. For all of last year, productivity rose 4.4%.
Analysts said falling productivity showed that businesses were forced to hire workers to keep up with increasing demand, Reuters reported.
Among manufacturers, productivity grew at a 4.8% pace after rising at a 10.1% rate in the third quarter. Transport Topics
Smithway Founder Smith Dies
Truckload carrier Smithway Motor Xpress Corp. said Wednesday that founder William Smith has died.Smith, employed by the company since 1958 and a member of the board since 1972, had been undergoing treatment for leukemia, the company said in a statement. During his tenure he held the roles of president, chairman and chief executive officer.
Smithway said Smith was also previously president of the Iowa Motor Truck Association.
Smithway is ranked No. 85 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
OPEC May Raise Oil Output if Prices Stay High
The OPEC oil cartel will consider raising oil output if prices remain high for the next two weeks, the Wall Street Journal reported Thursday.One senior OPEC official said some member nations already quietly abandoned a commitment made last month to more closely adhere to quotas and stem cheating, the Journal said. The cartel also previously agreed to cut daily output by about one million barrels a day starting April 1.
In the United States, crude oil is about $36 a barrel and OPEC President Purnomo Yusgiantoro told reporters earlier this week that the cartel needs to pump more oil, the Journal said. Transport Topics
Dynamex Fiscal 2Q Earnings Rise
Same-day delivery and logistics firm Dynamex Inc. said Wednesday its net income for the fiscal second quarter ended Jan. 31 was $5.2 million or 45 cents per share, compared with $1.3 million of 12 cents a year earlier.The current results includes a positive income tax adjustment of $3.7 million, the company said in a release. Sales increased 16.9% to $69 million.
Dynamex said harsh winter weather and a drop in demand following the holiday period negatively impacted its results. Looking ahead, the company said its net income for the full fiscal year would be in the range of 97 cents and $1.07 per share.
Dynamex is ranked No. 69 on the Transport Topcics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Yellow Roadway May Close Some Terminals
Yellow Roadway Corp. may decide in April to close duplicate truck terminals in as many as 37 cities, Bloomberg reported.Yellow paid $1.05 billion in December for larger rival Roadway, and the decision to close terminals could save the company at least $4 million a year, Bloomberg said.
The company said no jobs would be cut if terminals are closed. The Teamsters union said the consolidation should boost efficiency, Bloomberg said. Transport Topics
Jobless Claims Fall by 7,000 in Latest Week
The number of Americans filing initial claims for unemployment benefits fell by 7,000 to 345,000 in the week ended Feb. 28, the Labor Department reported Thursday.In the last week of December and during the week ended Jan. 24, claims reached 339,000, the lowest since January 2001.
Labor said the four-week average of claims, a less-volatile indicator, fell to 352,250 from 355,250.
And the number of people continuing to collect state jobless benefits held at 3.091 million in the week ended Feb. 21. Transport Topics
Contrans Plans to Buy Elgin Cartage
Canadian Transportation services provider Contrans Income Fund said it would acquire the business of Elgin Cartage Ltd., which has waste hauling operations in Michigan and Ontario.The purchase was expected to close on March 1, Contrans said Feb. 23.
ontrans reported it had 2002 net income of $17.7 million on revenues of $280 million, the latest figures the company made available.
Elgin had trucking business revenues of approximately $21 million in its most recent fiscal year ended Sept. 30, Contrans said.
Elgin provides a range of truckload transportation services, principally transporting industrial dry waste. Elgin also transports other bulk commodities in dump and liquid trailers. Contrans said it would continue to operate the company as an independent operating unit with its existing management and staff.
“Industrial dry waste transportation has been regarded as a non-cyclical business, and Elgin’s reputation for exceptional service firmly positions Elgin as a premium carrier in this market,” said Contrans Chief Executive Officer Stan Dunford in a statement.
Elgin’s other bulk and liquid transportation services complement Contrans’ existing businesses, and Contrans expects operating efficiencies, Dunford said.
Contrans said it provides flat-bed, van, dry tank, liquid tank and dump trailing equipment services using 700 full-time employees and 775 owner-operators. It said its fleet consists of more than 1,100 tractors and 2,100 trailers. Transport Topics
This story appeared in the March 1 print edition of Transport Topics.
