News Briefs - Oct. 24
The Latest Headlines:
- FedEx Seeks to Block DOT Nominee, Journal Says
- Yellow's 3Q Profits, Revenues Surge
- Smithway Narrows Net Loss
- Dana’s Profits Rise; Reports Higher Demand for Truck Parts
- Intermodal Rail Traffic Sets Another Record
- Covenant Reports Higher Net Income
- Goodyear to Lower Five Years of Earnings
- Yellow's 3Q Profits, Revenues Surge
FedEx Seeks to Block DOT Nominee, Journal Says
FedEx Corp., Memphis, Tenn., has approached Senate Majority Leader Bill Frist (R-Tenn.) to help defeat the nomination of Kirk Van Tine, formerly the agency's general counsel, who was picked last month by President Bush to be deputy secretary of transportation, the Wall Street Journal reported Friday. (Click here for previous coverage.)The Transportation Department is currently fighting with FedEx over how much money the company deserves under the Air Transportation Safety and System Stabilization Act, a measure passed by Congress shortly after the 9/11 terrorist attacks, the Journal said.
DOT demanded in March that FedEx return $31.6 million of the $101 million payment it got from the government as compensation. Van Tine, who at the time was the DOT’s general counsel, played a key role in the agency's administration of the money, the Journal said.
Yellow's 3Q Profits, Revenues Surge
Transportation firm Yellow Corp. said late Thursday its third-quarter profit more than doubled as to $17.4 million or 58 cents a share, from $7.3 million or 25 cents a year earlier. The 2002 results exclude costs of spinning off its SCS unit."We experienced improving economic conditions during the third quarter," Chief Executive William Zollars said in a statement.
Its revenue increased to $771 million, an increase of 12.9%. Less-than-truckload revenue per day rose 12.1%, the company said.
Yellow also said its acquisition $966 million acquisition of Roadway could be completed as early as Dec. 11, two days after shareholder meetings at both companies to vote on the transaction.
Yellow is ranked No. 8 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Smithway Narrows Net Loss
Truckload carrier Smithway Motor Xpress Corp. said Friday its net loss for the third quarter was $305,000 or 6 cents per share, compared with a loss of $757,000 of 16 cents a year earlier.Operating revenue decreased by nearly 2% to $42.5 million, the company said in a release. It said the improved performance was due to a 9.7% increase in weekly truck production.
Smithway is ranked No. 85 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Dana’s Profits Rise; Reports Higher Demand for Truck Parts
Vehicle parts maker Dana Corp. said Friday its net income for the third quarter was $61 million or 41 cents per share, compared with $4 million or 2 cents a year earlier.The company also said demand for its heavy-truck parts has been “steadily improving.”
Total sales rose 2.3% to $2.41 billion, the company said in a release. It also said profit rose because the company cut administrative costs.
Since July, Dana has been fighting off a $2.2 billion, $15-a-share offer from ArvinMeritor, the biggest manufacturer of commercial-truck axles. Transport Topics
Intermodal Rail Traffic Sets Another Record
Intermodal traffic on the nation's railroads totaled 211,237 trailers and containers for the week ended Oct. 18, breaking the previous record of 210,099 set three weeks earlier, the Association of American Railroads said Thursday.It was also 5.2% ahead of the corresponding pace a year ago.
Railroading, like commercial trucking, is considered an important economic indicator. Intermodal traffic, which tends to be merchandise rather than bulk commodities, is more directly competitive with trucking and more reflective of the state of the economy.
AAR said intermodal rail intermodal traffic was up 6.6% through the first 42 weeks of 2003, compared with 2002. Transport Topics
Covenant Reports Higher Net Income
Truckload carrier Covenant Transport said late Thursday its net income for the third quarter was $4.1 million or 28 cents per share, compared with $3.6 million or 25 cents a year earlier.Overall revenue increased 3.7% to $146.5 million, while freight revenue rose 2.2%.
Chairman and Chief Executive Officer David Parker said in a statement that freight demand rose throughout the third quarter.
The company said that for all of 2003, it expected to purchase or lease about 1,600 tractors and 2,900 trailers and trade or sell 1,400 tractors and 1,800 trailers.
Covenant is ranked No. 31 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Goodyear to Lower Five Years of Earnings
Goodyear Tire & Rubber Co., the nation's largest tire maker, said accounting system errors have forced it to lower net income since 1998 by as much as $100 million. The company also said it would delay its latest earnings report until next month.Its release said an accounting system implemented in 1999 caused errors with its internal billing system, resulting in the mistakes. The system was used to track the purchase of equipment for factories, Goodyear said.
Accounting entry errors also were involved, the company told the Associated Press, but did not elaborate.
Goodyear said it expected a loss in the third quarter of between $90 million to $115 million. The loss includes charges related to a plant closing and 1,360 layoffs in North America and Europe. Transport Topics
