News Briefs - Nov. 12
The Latest Headlines:
- Neiman Marcus Names FedEx Exclusive Carrier
- WSJ: Hours Rules to Increase Cost of Trucking
- Stonepath Reports Net Income of $2.1 Million
- Bush Names Two to STB
- MAN's Profits Rise 23%
- WSJ: Hours Rules to Increase Cost of Trucking
Neiman Marcus Names FedEx Exclusive Carrier
FedEx Corp. said Wednesday that retailer Neiman Marcus selected three of FedEx's operating companies as the exclusive providers of shipping services.The three-year deal includes shipments to stores from suppliers, to retail stores from Neiman Marcus Group distribution centers, to catalog customers from distribution centers and to customers ordering directly from retail stores.
Neiman Marcus will use FedEx Express, FedEx Ground and FedEx Freight for its main shipping needs, as well as FedEx Home Delivery and FedEx InSight.
WSJ: Hours Rules to Increase Cost of Trucking
The Wall Street Journal reported Wednesday that the new hours of service rules expected to take effect in January would contribute to the biggest increase in trucking rates in two decades.Some users of truck transportation say higher trucking rates could lead to a broad-based increase in prices of goods. One analyst told the Journal trucking rates are expected to climb between 4% and 7% in 2004.
Some users of truck transportation say higher trucking rates could lead to a broad-based increase in prices of goods.
The article said that Wal-Mart Stores Inc. believes the new rules will reduce its drivers' daily work time by 6% on average and cause it to add 275 new drivers and 300 new trucks to handle the same amount of cargo. Transport Topics
Stonepath Reports Net Income of $2.1 Million
Stonepath Group, a global logistics provider, said Wednesday its net income for the third quarter was $2.1 million or 7 cents per share, compared with $18.8 million or 7 cents a year earlier.Last year's results included a net benefit of $16.8 million associated with the restructuring of its preferred stock.
Revenues increased 76% to $77.3 million, the company said in a release.
Having started from zero a little over two years ago, we should deliver well over $200 million in revenues in 2003 and continue to expand the footprint of our service delivery platform," said Dennis Pelino, Stonepath chief executive officer. Transport Topics
Bush Names Two to STB
President Bush planned to nominate William Buttrey and Francis Mulvey as members of the Surface Transportation Board, according to a White House statement Nov. 3.Buttrey is a consultant in Memphis, Tenn., who was previously senior government affairs representative for FedEx Corp., the statement said.
Mulvey, the Democratic staff director for the House Transportation and Infrastructure Committee’s railroads subcommittee, was previously deputy assistant inspector general for rail and transit programs at the Department of Transportation. Transport Topics
This story appeared in the Nov. 10 print edition of Transport Topics.
MAN's Profits Rise 23%
MAN AG, Europe's third-largest truck maker, said Wednesday its third-quarter profit rose 23% after completing a reorganization at its truck division, Bloomberg reported.Net income rose to $37 million from $30.2 million.
MAN joins other truck makers including Volvo AB and Scania AB in reporting rising earnings as they cut costs to cope with a market that has declined for about three years.
Hakan Samuelsson, who heads MAN's commercial vehicles division, said in October nine-month truck revenue rose 0.2%, while vehicle sales increased 3%, Bloomberg said. Transport Topics
