P.M. Executive Briefing - Dec. 14
ul>
FedEx Reports Higher 2Q Earnings
FedEx Corp. (FDX) announced Thursday that it expects its second quarter earnings to be 67 cents per share, 18% higher than the same period last year. The improvement came from growth in ground deliveries, FedEx noted.
However, the Memphis-based company expects flat third-quarter earnings because of a slowing economy and severe weather conditions that have made ground deliveries difficult. Transport Topics
GM to Idle 8,600 Workers
General Motors Corp. (GM) announced Thursday that it will idle 8,600 workers by shutting down three plants for a week, Bloomberg reported. The report did not specify when the shutdowns would begin. However, it noted that plants in Kansas City, Kan., and two plants in Lansing, Mich., would close because of slow car and truck sales.
General Motors recently announced plans to cut first quarter production in North America by 14% and cut 15,000 jobs. The company also decided to phase out its Oldsmobile brand. Transport Topics
Producer Price Index Rises Slightly; Inventories High
The Federal Reserve Open Market Committee will have further ammunition to lower interest rates when it meets next Tuesday because the Producer Price Index barely increased in November, Reuters reported Thursday.November's increase was only 0.1%, according to the Labor Department's figures. The index inched up 0.4% in October.
Lower interest rates can make credit easier to get for trucking companies and owner/operators, but the report's silver lining also carries a cloud.
Business inventories are high, so they must be sold before companies can boost production and make more stock for trucks to haul. Inventory rose 0.4% - the biggest increase since August - outpacing sales growth, the news service said.
Meanwhile, energy prices dropped in November, with heating oil prices falling 1.9%, the news service said. Heating oil and diesel fuel are virtually identical distillates, and a price swing in one product usually affects the other. Transport Topics
ArvinMeritor Projects Earnings from a Slow Market
Component maker ArvinMeritor Inc. (ARM) said Thursday that it expects its fiscal first-quarter earnings to be between 30 and 35 cents per share.The earnings reflect declining production in the heavy- and light-vehicle business, the company noted. ArvinMeritor said it has already initiated cost cutting plans to accommodate the weakening market.
Based in Troy, Mich., the firm supplies various components for commercial trucks and trailers. Transport Topics
Hayes Lemmerz to Cut 1,200 Jobs
Hayes Lemmerz (HAZ), maker of car and truck wheels, announced plans to cut 1,200 jobs this week, Bloomberg reported. Hayes said the layoffs would help offset losses from plant shutdowns at General Motors Corp. (GM), DaimlerChrysler (DCX) and Ford Motor Co. (F). These companies have decreased their orders for auto parts because truck sales have slowed down, the article said.
The job cuts will affect workers in the United States, Europe and Brazil. Transport Topics
Minn. Governor Eases Hours Rules for Drivers Hauling Fuel
Minnesota Gov. Jesse Ventura is allowing truck drivers who transport heating and motor fuels to stay on the road longer than normally allowed, the Associated Press reported Thursday.Truckers who transport heating oil are spending more time in line due to high demand, and those hours have counted against the driving time limit of 10 hours a day. They can be on duty 15 hours with less than eight hours rest, the article said.
A driver who feels fatigued or ill can request immediate rest and an eight-hour break between shifts, according to AP. Transport Topics
DaimlerChrysler-Brazil to Expand Truck Production
Auto maker DaimlerChrysler's (DCX) Brazilian unit announced Thursday that it plans to invest $307 million to build new trucks, buses and commercial vehicles, Bloomberg said. The company predicts the demand for truck and commercial vehicles will grow in the next three years. Because of this, a large portion of the investment will go into buildaing nine new truck models, the story said.
Vehicle sales from the Brazilian unit account for 3% of DaimlerChrysler sales, the wire service noted. Transport Topics
Particulate Pollution Kills, Study Finds
"Consistent evidence" now exists that links levels of fine particulate matter in the air with increased death risk, according to a study in the New England Journal of Medicine.Spikes in particulate pollution were followed by higher death rates within 24 hours, the Wall Street Journal reported Thursday. Diesel exhaust is one source of particulate pollution.
An abstract of the work done at the Johns Hopkins University School of Hygiene and Public Health was published on the journal's Web site Thursday. The authors said the study strengthened the rationale for controlling the level of airborne pollutants that humans can breathe in.
The study is especially powerful because of the attempt to separate the effects of particulate matter from smog and other pollutants, the Journal said. The study was funded by the Health Effects Institute, a nonpartisan nonprofit group that is funded by government and industry, the paper said. Transport Topics
Headlines From Today's A.M. Briefing
- UPS Plans to Hit Earnings Target Despite Flat Season
- TransFinancial to Close Specialized Transport
- Va. Governor Wants To Raise Overweight Penalties, Overhaul VDOT
- DaimlerChrysler to Idle Windsor Plant for a Week
- Goodyear Offers 700 Workers Early Retirement
- Crude Oil Price Rises Due to Doubts Over Iraq Exports
- Distributors, Manufacturers Launch Heavy-Duty Exchange
- German Company Implements New Airport 'Slot System' for Trucks
- Corning Expanding in Pa.; S.C. Textile Mill Closing
form method="post" action="http://lists.truckline.com/scripts/submany.pl">
| ||||
