P.M. Executive Briefing - Dec. 29
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FedEx Finalizes American Freightways Purchase
Delivery company FedEx Corp. (FDX) announced Friday that it has finalized the purchase of American Freightways (AFWY), a less-than-truckload carrier.Through its wholly-owned subsidiary FDX Inc., FedEx bought 16,380,038 shares of AF at $28.13 per share. FedEx also received an extra 505,569 shares with the purchase, the company said.
FedEx will own 50.1% of AF's shares once the transaction is completed in early February. Transport Topics
Dorsey Trailers Gets Short-Term Cash
Truck-trailer manufacturer Dorsey Trailers, which filed for bankruptcy on Dec. 5, announced Friday that it is attempting to extend a two-week cash collateral agreement with Foothill Capital Corp. to fund ongoing operations. The company has been running on several two-week agreements since filing for bankruptcy, and the current one expires Jan. 3. Company Chairman Marilyn R. Marks said that if Dorsey cannot sucessfully reorganize and is forced to sell assets, the market value of those assets likely would not be enough to cover all the obligations to the company's creditors and, thus, there would be nothing to return to the shareholders.
orsey, which has three manufacturing facilities in Alabama, Georgia, and South Carolina, had suspended operations in late November because it failed to receive credit from a lender. Transport Topics
Temporary Deal Keeps LTV Steel Operations Running
Steelmaker LTV Corp. (LTV) was able to avoid a shut-down Friday after it made a temporary financial deal with its lender, Chase Manhattan (CMB), the Associated Press reported, but filed for Chapter 11 bankruptcy protection as it reorganizes. The deal also saves 18,000 jobs, at least for now.That is good news for truck operations that may haul products for LTV, and a break for the trucking industry after various shippers have warned recently that they will be cutting shipments by closing stores or curbing output.
LTV, which lost $80 million in its third quarter alone, blames unfair foreign competition for its losses, according to AP.
It will continue manufacturing and transporting products while it works out a formal agreement with Chase Manhattan. The bank holds more than $1.2 billion of LTV's assets as collateral, the wire service noted. Transport Topics
Northeast Expecting Blizzard For New Year's Weekend
The U.S. East Coast, from North Carolina to New York, prepared Friday for a major snowstorm arriving from both the Atlantic Ocean and the Midwest, CNN.com reported.Officials in New Jersey and New York said they were expecting up to 12 inches of snow, the report said. There were also warnings of up to six inches of snow in Washington, D.C., Boston and Philadelphia.
The storm was expected to start Friday night and end Sunday, the story said. Transport Topics
U.S. Transportation Dept. Suggests Better Intermodal Connectors
U.S. Transportation Secretary Rodney Slater sent a report to Congress this week suggesting ways to improve intermodal connectors for freight transfer, the U.S. Department of Transportation said.Intermodal connectors are short road trucks use to travel from seaports, airports, rail yards and pipeline facilities to major highways.
Slater's report listed several problems associated with connectors including pavement deficiencies and lack of freight coordination. Transport Topics
Former Reefer Executive Thomas Welby Jr. Dies
Thomas E. Welby, former president of Refrigerated Food Express in Avon, Mass., died Dec. 26 at his home in Boston. He had cancer.“Tom was generous of spirit, full of ideas and had an enthusiasm for the trucking industry that was contagious. We will miss him greatly,” said Walter B. McCormick Jr., president of American Trucking Associations.
Mr. Welby, 49, was the second generation owner of the company founded in 1952 by his father, Thomas E. Welby Sr. The elder Mr. Welby ran the business until his death in 1960, after which his wife, Marion, ran the business until her death in 1978.
Thomas Welby Jr. began working for RFX in 1973 and became president in 1981. He retired this past November.
The junior Mr. Welby was chairman of the Regulatory Policy Committee of the Truckload Carriers Association and co-chairman of the TCA Education Committee.
Mr. Welby was also a member of the board of directors of the Massachusetts Motor Transportation Association and the state vice president to ATA.
He is survived by his wife, Elaine; and two daughters, Caitlin and Kimberly, all of Boston, and a sister, Mimi Burke of Florida. Transport Topics
Headlines From Today's A.M. Briefing
- Steelmaker LTV May File for Bankruptcy
- Bush Names Thompson to HHS; Transportation Still Vacant
- PNV Suspends Services
- Timing Fluke Boosts One-Week Rail Intermodal Stats
- Crude Oil Prices Drop as Heating Oil Shortage Eases
- Winter Storms Continue to Hamper Freight Moves
- Navistar to Buy Remaining 50% of Brazilian Engine Maker
- XATA Reports 4Q Losses
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