News Briefs - Sept. 17
The Latest Headlines:
- FedEx Earnings Fall on Early Retirement Costs
- Pony Express, True-Way Sign Transportation Deal
- EU to Levy Tariffs on U.S. Stainless Steel Makers
- NationaLease Picks Grainger for Presidency
- Marten Says IPO Underwriters Exercise Option
- Pony Express, True-Way Sign Transportation Deal
FedEx Earnings Fall on Early Retirement Costs
FedEx Corp. said Wednesday that its net income for its 2004 fiscal first quarter declined because of costs related to its early retirement program.The company said its net income for the quarter ended Aug. 31 was $128 million or 42 cents a share, compared with $158 million or 52 cents a year ago. Excluding charges, net income was $332 million or 61 cents.
Overall revenue rose 4.4% to $5.69 billion, while FedEx Ground reported a 5% increase in revenue to $914 million. It operating income was $116 million, an increase of 15%.
FedEx, ranked No. 2 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies, said net income for the second quarter would be between 80 cents and 90 cents per share. Transport Topics
Pony Express, True-Way Sign Transportation Deal
Pony Express U.S.A. Inc. said Wednesday that had signed an agreement with True-Way Logistics Corp. to provide long-haul truckload services.As part of the deal, True-Way would license the "PonyExpress Freight" trademark and display the PonyExpress Freight logo on its entire fleet. Also, PonyExpress would to provide sales and customer services True-Way's present customers.
PonyExpress said in a release it currently serves Florida businesses while True-Way Logistics is a nationwide truckload carrier. Transport Topics
EU to Levy Tariffs on U.S. Stainless Steel Makers
The European Commission said it would begin a 25% duty Wednesday on some U.S. stainless-steel makers for six months because those companies have unfairly undercut the prices of European competitors, Bloomberg reported.The duty could hurt U.S. truckers who haul this steel to ports for export. It would be imposed on exports to the European Union's 15 member countries including France, Germany, Italy, Spain and the United Kingdom.
U.S. producers' share of the European Union's $202 million market for ferritic stainless steel widened to as much as 17% in 2001 from about 5% in 1999, Bloomberg said. Transport Topics
NationaLease Picks Grainger for Presidency
NationaLease, the largest member-owned organization of interdependent, full-service truck leasing companies in North America, said it had appointed John Grainger to take over as president effective Nov. 10. He replaces William Ford, who plans to retire Jan. 1, the company said.Grainger joins NationaLease after serving as chief executive officer for Laidlaw Educational Services, a private contractor of student transportation services throughout the United States and Canada based in Naperville, Ill., NationaLease said.
It said he originally joined Laidlaw Passenger Services Group in 1990 as senior vice president in charge of East Coast operations for Laidlaw Transit, and became chief operating officer of the unit in 1992.
In 1997, he moved over to Laidlaw Inc. as COO — and was elected to the company’s board of directors — before being named CEO in 1999, the statement said.
Before joining Laidlaw, Grainger served as president of Rentway Canada Ltd., vice president of King Truck Engineering and regional manager for Trimac Ltd., NationaLease said. He has also served three terms on the NationaLease board — in 1986-87, 1990-97 and his current stint, which began in 2001.
Ford, who became NationaLease president in 1985, will continue to serve on the company’s board and do consulting work for the company, the statement said. Transport Topics
This story appeared in the Sept. 15 print edition of Transport Topics.
Marten Says IPO Underwriters Exercise Option
Refrigerated truckload carrier Marten Transport Ltd. said Tuesday that the underwriters of its recent public offering have exercised their over-allotment option to purchase an additional 450,000 shares of common stock, priced at $20.50 per share.The option was granted in connection with the company's recent public offering of 3 million shares which commenced on Aug. 14, the company said in a release.
Marten is ranked No. 58 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
