News Briefs - Oct. 27
The Latest Headlines:
- ArvinMeritor Makes New Offers to Win Dana Bid
- Celadon Reports Fiscal 1Q Net Loss
- Japanese Police Raid Mitsubishi in Accident Probe
- Fed Expected to Leave Interest Rates Unchanged
- Scania's Profits Rise in 3Q
- Senate Approves $1.34 Billion for Amtrak
- Celadon Reports Fiscal 1Q Net Loss
ArvinMeritor Makes New Offers to Win Dana Bid
ArvinMeritor Inc. has offered to divest itself of some of Dana Corp.’s truck-parts business in order to win antitrust approval for its $2.2 billion hostile bid, the Wall Street Journal reported Monday.Arvin is offering to divest itself of Dana's medium- and heavy-duty axle-and-brake business, as well as Dana's driveline business, the Journal said. It submitted its offer to the Federal Trade Commission.
A Dana spokesman told the Journal it had been responding to FTC inquiries about an ArvinMeritor proposal.
Celadon Reports Fiscal 1Q Net Loss
Truckload carrier Celadon Group Inc. reported a net loss for its 2004 fiscal first quarter ended Sept. 30 of $5.5 million or 72 cents per share, compared with net income of $900.000 million or 11 cents a year earlier.Results in the most recent quarter include charges related to purchasing new 53-foot trailers to replace the 48-foot trailers remaining in its fleet, Celadon said in a release.
The company also said operating revenue increased 2% to $95.7 million.
Celadon is ranked No. 49 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Japanese Police Raid Mitsubishi in Accident Probe
Police in Japan raided the headquarters of Mitsubishi Motors Corp. on Friday as part of an investigation into an accident in which a tire came off a truck and crushed a pedestrian, news services reported.Investigators said a broken wheel hub caused the accident and they are considering bringing charges of professional negligence against the company and officials who may have been aware of the allegedly faulty design, a police investigator told the Wall Street Journal.
The affected truck isn't imported into the U.S. market, the Journal said. Mitsubishi Motors is 37% owned by DaimlerChrysler AG.
Shortly after the accident, Mitsubishi began offering free inspections of the trucks, affecting about 80,000 vehicles, Reuters reported. Transport Topics
Fed Expected to Leave Interest Rates Unchanged
The Federal Reserve is once again widely expected to leave interest rates unchanged when it meets on Tuesday, news services reported.Economists predict no change in the benchmark federal funds rate, now at 1%, a 45-year low, the Associated Press reported. They also expect Fed officials to continue to indicate it will be some time before they begin to consider raising rates.
While there have been signs of stronger economic growth, the fragile job market will likely cause the Fed to be cautious about raising interest rates, AP said.
The Fed is expected to issue its decision on interest rates on Tuesday at 2:15 EST. Transport Topics
Scania's Profits Rise in 3Q
European truck maker Scania AB said its net income for the third quarter rose 33% percent, boosted by higher sales in Britain and Brazil.Net income rose to $64.2 million, the company said. Sales of Scania trucks in the United Kingdom rose 31% in the first nine months of the year, while sales increased 34% in Brazil.
Scania focuses on trucks with engines of more than 450 horsepower and has about 30% of the market in Europe for the vehicles.
It also has expanded its business for servicing vehicles, which it expects to rise over the next decade as the number of trucks on European roads increase, Bloomberg said. Transport Topics
Senate Approves $1.34 Billion for Amtrak
The Senate on Thursday approved $1.34 billion for Amtrak for the 2004 fiscal year, but the final amount is up to congressional negotiators who must consider a bill passed by the House of Representatives that would give the railroad $400 million less, the Associated Press reported.An Amtrak spokesman previously told Transport Topics that the nation's passenger railroad derives $140 million a year from hauling mail and express freight.
Amtrak has said the $900 million approved by the House in September and supported by the White House would force it to shut down, AP said. The Senate amount was included in a larger bill funding transportation and Treasury Department programs for the fiscal year that began Oct. 1.
House and Senate negotiators will determine the final amount for Amtrak. Transport Topics
