News Briefs - May 20
The Latest Headlines:
- Philadephia Factory Index Falls in May, but Remains Positive
- Navistar Reports Positive Earnings
- Senate Resolves Dispute on Highway Bill
- OPEC May Approve Saudi Plan to Boost Oil Quotas
- Popular Diets Slimming Profits at Marten
- Jobless Claims Rise by 12,000 in Latest Week
- Goodyear Narrows Loss in 4Q
- Mitsubishi Fuso Recalls More Trucks in Japan
- Navistar Reports Positive Earnings
Philadephia Factory Index Falls in May, but Remains Positive
The Federal Reserve Bank of Philadelphia said manufacturing expanded for a 12th month in May, but at a slower pace than the month before.The Fed's general economic index was 23.8, compared with 32.5 in April. A number greater than zero signals a higher percentage of the manufacturers surveyed reported an improvement in business than deterioration.
The Philadelphia Fed surveys about 100 manufacturers for the index in eastern Pennsylvania, Delaware, and southern New Jersey.
Navistar Reports Positive Earnings
Navistar International Corp., the parent of truck and engine maker International Truck and Engine Corp., said May 20 its net income for the fiscal second quarter ended April 30 was $41 million or 54 cents per share, compared with a net loss of $14 million or 21 cents a year earlier.It linked the gains to cost cutting and quality initiatives, including reducing vehicle costs by $1,600 per unit in 2004.
Daniel Ustian, Navistar’s chairman and chief executive officer, said in a statement, "Our Class 8 market share in the second quarter increased to 18.6%, the highest since the third quarter of 1998 . . . and indications are that current demand levels for heavy trucks will continue.”
He said the demand for medium-duty trucks was moderate, but Navistar expected to increase dealer inventories in the second half of the year.
The company said it anticipated third-quarter earnings to be 60 cents to 70 cents. Transport Topics
Senate Resolves Dispute on Highway Bill
Republican and Democratic leaders in the Senate said Wednesday they resolved a dispute that had blocked progress on a six-year highway and transit bill, news services reported.Senate Majority Leader Bill Frist and Senate Minority Leader Tom Daschle said they had come to terms on appointing senators who will work with their counterparts in the House to resolve differences in the bills, the New York Times reported.
Senate Democrats have blocked the naming of negotiators on the highway bill and other legislation until they received assurances they would be partners in writing the final bill.
The Senate has approved a $318 billion package and the House a $284 billion bill, but the White House has said both are too expensive. The latest extension of the old bill runs through the end of June.
The last six-year highway bill, funded at $218 billion, expired last September, and Congress has had to approve three temporary extensions. Transport Topics
OPEC May Approve Saudi Plan to Boost Oil Quotas
The OPEC cartel may approve a Saudi Arabian plan to boost oil output quotas as early as Saturday, Bloomberg reported.Oil ministers are expected to discuss a proposal to raise the OPEC limit by at least 1.5 million barrels a day, or 6.4%, at an oil forum this weekend in Amsterdam, Bloomberg said.
Saudi Arabia said it was concerned near-record prices would slow economic growth. However, the United Arab Emirates said OPEC should wait until its formal meeting on June 3 before deciding on any increase.
Crude oil has gained 28% this year in New York, peaking May 17 at $41.85 a barrel. Transport Topics
Popular Diets Slimming Profits at Marten
NEW YORK — Popular diet plans that advocate minimal consumption of carbohydrates have put a dent in the business of a major refrigerated truckload carrier.Randy Marten, president of Marten Transport Ltd., told potential investors here May 11 that while most customers were showing increased demand for his services, a major exception was producers of frozen french fries.
Marten attributed the problem to the Atkins and South Beach diets, which advocate eating lots of protein and very few carbohydrates. Furthermore, he said, the decision by the McDonald’s fast-food chain to emphasize regular portions over “supersize” meals had also cut demand for the potato sticks.
