News Briefs - Oct. 20
The Latest Headlines:
- Arkansas Best Said 3Q Earnings Lower in 2003
- Roadway Announces Dec. 9 Merger Vote
- Crude Oil Prices Decline on Inventory Increases
- CN to Acquire Great Lakes Transportation
- Mack's CEO Joins Volvo’s Top Committee
- Roadway Announces Dec. 9 Merger Vote
Arkansas Best Said 3Q Earnings Lower in 2003
Arkansas Best Corp., parent company of ABF Freight System Inc., said that it had third-quarter net income of $17 million or 67 cents per share vs. $18.3 million or 73 cents per share in the 2002 quarter.Overall revenue for Arkansas Best was $402.9 million in the third quarter, up 7.3% from the same period in 2002.
At ABF Freight, revenues rose to $360.6 million from $335.5 million in the year-ago period. The less-than-truckload subsidiary had a third-quarter operation ratio of 91.9%, an improvement from the 92.9% ratio it posted in 2002.
Roadway Announces Dec. 9 Merger Vote
Roadway Corp. has announced a Dec. 9 meeting in Cleveland for the purpose of voting on the proposed acquisition of the Akron, Ohio-based company by Yellow Corp.Shareholders of Yellow Corp. will also have a special Dec. 9 meeting to consider the transaction.
Roadway said that if the shareholders approve of the move and there are no regulatory issues, the transaction could close by Dec. 11.
Roadway and Yellow are ranked No. 6 and No. 8 respectively on the 2003 Transport Topics 100 listing of the largest for-hire carriers in the United States and Canada. Transport Topics
Crude Oil Prices Decline on Inventory Increases
The price of a barrel of crude oil fell 38 cents in electronic trading Monday morning on the New York Mercantile Exchange, Bloomberg News reported.The decline left the price of crude at $30.30 a barrel. In addition to reports last week of increasing supplies, unseasonably warm temperatures in the Midwest and Mid-Atlantic states helped drive prices down, analysts told Bloomberg.
Changes in crude oil prices often work their way through to the consumer in diesel and gasoline price changes. Transport Topics
CN to Acquire Great Lakes Transportation
Canadian National Railway Co. said Monday it planned to acquire the railroad and related holdings of Great Lakes Transportation LLC for $380 million.CN said the move “will improve [our] Nafta rail link between Western Canada and Chicago and expand its role in the transportation of bulk commodities for the U.S. steel industry.”
One of the main competitors for the trucking industry for ground transportation is rail.
Under the terms of the deal, CN will acquire the Duluth, Missabe and Iron Range Railway Co., the Bessemer and Lake Erie Railroad Co. and Great Lakes Fleet Inc. consisting of eight vessels that navigate the Great Lakes. Transport Topics
Mack's CEO Joins Volvo’s Top Committee
Truck and engine maker Volvo AB said Oct. 16 it had named Paul Vikner, chief executive officer of its Mack Trucks subsidiary in Allentown, Pa., to its Group Executive Committee, the primary management forum within the Swedish parent company. Vikner will continue as Mack’s president and CEO, Volvo said.Vikner’s new appointment takes effect Jan. 1, the same day that Michel Gigou’s role ends as Mack’s chairman, said Volvo. Gigou has been both president of Volvo Trucks North America and Mack chairman, but was returning to Europe.
Volvo named Peter Karlsten as VTNA’s new president, but has yet to say what will happen to the Mack chairmanship. Transport Topics
This story appeared in the Oct. 20 print edition of Transport Topics.
