News Briefs - Nov. 19
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The Latest Headlines:
- Patriot's Profits Increase in 4Q
- House Easily Passes Energy Bill
- EU Rejects U.S. Compromise on Steel Tariffs
- Yellow Seeks to Raise $130 Million for Roadway Purchase
- Net Income Slips in 3Q for Segmentz
- Fed's Santomero Sees No Change in Interest Rates
- Price of Crude Oil Soars
- House Easily Passes Energy Bill
Patriot's Profits Increase in 4Q
Patriot Transportation Holding Inc. said Wednesday its net income for its fiscal fourth quarter ended Sept. 30 was $1.7 million or 56 cents per share, compared with $1.3 million or 41 cents a year earlier.The company is involved in the transportation and real estate businesses. Its transportation units are liquid and dry bulk carrier Florida Rock & Tank Lines Inc. and flatbed carrier SunBelt Transport Inc.
For the full fiscal year, total net income fell to $4.6 million or $1.49 per share, from $5.7 million or $1.79. Transportation segment revenues jumped 7.4% to $88 million. Transport Topics
House Easily Passes Energy Bill
The House approved an energy bill on Tuesday that would provide billions of dollars in tax incentives for oil, gas and coal producers and give a boost to corn farmers by requiring a doubling of ethanol use in gasoline, news services reported.The House passed the bill by a vote of 246-180, sending it to the Senate for final approval, probably later this week. However, it could run into snags in the Senate over a provision that would shield the makers of MTBE, a gasoline additive, from liability lawsuits, the Associated Press reported.
The bill would double the use of ethanol in gasoline to 5 billion gallons a year. It also would provide $23 billion in energy-related tax incentives over 10 years, or nearly three times as much as the White House had said earlier this year it would accept, AP said. Transport Topics
EU Rejects U.S. Compromise on Steel Tariffs
European trade officials have dismissed a potential compromise from U.S. steel makers that would reduce contentious steel tariffs, the Wall Street Journal reported Wednesday.Arancha Gonzalez, trade spokeswoman for the European Union, told the Journal the EU wants the "complete elimination" of the tariffs.
The compromise called for an end of the steel tariffs six months earlier than their current March 2005 expiration and for an immediate cut in the tariff level by about one-third, then a subsequent cut early next year.
U.S. steel makers hammered out the compromise after the White House asked them for help find a middle ground in the dispute, the Journal said. The plan has not been adopted by the Bush administration, and a person familiar with the matter said talks continue between the administration and steel makers, according to the Journal.
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Yellow Seeks to Raise $130 Million for Roadway Purchase
Yellow Corp. said Wednesday it is seeking to raise about $130 million through a private offering of contingent convertible senior notes as part of the financing for its pending acquisition of Roadway Corp.The company said in a release an additional $20 million may be raised if the initial purchasers exercise their right to acquire additional notes in connection with the offering.
Yellow is ranked No. 8 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Net Income Slips in 3Q for Segmentz
Segmentz Inc., which provides transportation and logistics management services, said Wednesday its net income for the third quarter was $52,042 or 0 cents per share, compared with $126,086 and 1 cent a year earlier.The company said in a release that revenues increased 82% to $4 million. The lower profits were due to the increased costs from its expansion and new technologies, Segmentz said.
"We continue to feel it is an opportune time to seek acquisitions as we have recently secured financing to facilitate such growth," said Allan Marshall, chief executive officer. Transport Topics
Fed's Santomero Sees No Change in Interest Rates
Anthony Santomero, president of the Federal Reserve Bank of Philadelphia, said Tuesday the central bank has no need to raise interest rates "in the near future" because it will take some time to reduce unemployment.Santomero said in a speech to the Philadelphia Estate Planning Council the economy needs to expand at a rate of more than 4% for several quarters before significant gains in the job market will be made. The text of his speech was posted on the regional Fed's Web site.
Looking ahead, Santomero said he expected a "self-sustaining economic expansion" which will proceed "at a healthy pace as we move into the new year."
Santomero is a non-voting member of the Fed's Open Market Committee, which sets the overnight bank lending rate. Transport Topics
Price of Crude Oil Soars
The price of crude oil in New York rose to its highest level on Tuesday since the run-up to the U.S. invasion of Iraq in March, Bloomberg reported.Crude oil for December delivery rose $1.55, or 4.9%, to $33.28 a barrel on the New York Mercantile Exchange. It was the highest close since March 17.
Bloomberg said a main reason for the increase was Claude Mandil, the executive director of the International Energy Agency, who said oil supplies may not be able to meet increased demand in the event of a colder-than-normal winter.
In addition, terrorist attacks in the Middle East have led to speculation that shipments may be threatened, Bloomberg said. Transport Topics
