P.M. Executive Briefing - Apr. 3
This Afternoon's Headlines:
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Fuel Prices Sting Truckers' Results
Analysts polled by First Call/Thomson Financial expect some trucking companies, especially truckload carriers, to post lower profits for the first quarter than the year-earlier quarter, while others are helped by manufacturers' demand.Landstar System's profits per share are expected to rise to 86 cents from 71 cents due to its owner-operator program, while Knight Transportation's profits are seen increasing to 25 cents from 23 cents.
Fuel costs as well as acquisition-related rises in labor expenses are seen pushing U.S. Xpress enterprises down to 6 cents from 25 cents, while ongoing restructuring is expected to push J.B. Hunt Transportation Services down to 3 cents from 29 cents.
Manufacturers' demand and a lesser effect from the trucker shortage and diesel prices are expected to push up most LTLs: Yellow Corp., to 36 cents from 19 cents; Roadway Express, to 53 cents from 42 cents; Arkansas Best, to 44 cents from 32 cents from continuing operations; USFreightways, to 77 cents from 65 cents; and American Freightways, to 29 cents from 21 cents.
However, difficulties with new technology are seen causing a 6-cent loss at Consolidated Freightways, compared with earnings of 30 cents in the year-earlier quarter. Journal of Commerce Online (04/03/00)
Trucking in Tech
Engine manufacturer Caterpillar teamed up with Overland Park, Kan.-based Marketing.comm to create a database of its key customers as well as software to assist its sales people in making sales and retaining customers.Caterpillar Truck Engine Division marketing manager David Semlow said the new sales technology helped the division reach the top of the medium- and heavy-truck engine market, eclipsing Detroit Diesel and Cummins Engine.
The customer database built by Marketing.comm for Caterpillar, stores data on customers – both present ones and potential ones – while making access and handling simple. The information includes customers' identities, type of business, fleet size, location, annual miles driven, frequency of purchases and trade-ins, and other maters.
Marketing.comm created the Sales Activity Management System so sales people could use laptops input data about customers, making the data available across the division right away. Several packages for creating personalized letters is currently being developed by
arketing.comm. Kansas City Business Journal Online (04/03/00); Zganjar, Leslie
Volvo Still Interested in International
A source at Volvo said the company is still interested in buying Navistar International's truck and engine assets, but that the Swedish commercial vehicles maker is not hopeful unless Navistar signals its interest "within days, not weeks." According to reports, a Volvo acquisition of Renault's commercial-truck holdings is in final negotiations. Stark's News Service (04/03/00)© copyright 2000 INFORMATION, INC. Terms of Service