P.M. Executive Briefing - Feb. 7
This Afternoon's Headlines:
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Fuel Costs Raise Questions, Ire
A price spike for heating oil and diesel in the Northeast has led industry and consumer groups to ask New York state officials to look into the possibility that anti-competitive practices are behind the increase.Marc Violette, spokesman for the state Attorney General's office, said the office is "being vigilant and checking it out" even though the early analysis is that the price increase is market-driven.
According to New York Mercantile Exchange executive vice president Neal Wolkoff, the low costs a year ago contribute to the perception of prices being extremely high. A production cutback by oil-producing countries, unusually cold weather causing delivery troubles and driving up demand, and a ten-year low in refined product stockpiles in the region have all led to the higher prices. Another problem is that oil refineries usually shut down for maintenance in January, which is when temperatures dropped. Capital District Business Review (Albany) Online (02/07/00); Tuthill, William
UPS's New eVentures Unit Plans to Expand Logistics Business
United Parcel Service has formed eVentures, a subsidiary designed to invest in Internet start-up companies and handle the back end of online outfits – running the warehouse and deliveries and taking customers' telephone calls and returns.Many companies perform such services, but few have the brand recognition and experience of UPS. It will serve both as an incubator for new Internet companies and an investor in online start-ups with long-term concepts that could benefit UPS' development in e-commerce.
The eVentures unit is part of a plan to increase the company's e-commerce stature and adapt the company's strict culture to the looser style of Internet firms.
The company also announced a $60 per share tender offer for about 25% of its Class A-1 stock, much of which is held by the company's employees, foundations, and founders' heirs. The offer for 100.9 million shares expires March 3. Wall Street Journal (02/07/00) P. A4; Brooks, Rick
Detroit Diesel Preparing for Truck Sales Decline
Detroit Diesel will counteract this year's expected North American truck-sales decrease by keeping up its cost-cutting measures and pursuing growth in service parts and remanufactured products. It has also introduced a new automotive engine. TruckingInfo.com (02/07/00)Nissan Diesel Deal Iffy
Analysts were disappointed with the recently-announced rescue package for Nissan Diesel Motor, saying it would not be worthwhile to restructure the ailing truck unit unless a substantial amount of debt is forgiven. They say what is happening to Nissan Diesel could help foretell whether Renault will go through with the difficult actions necessary for a restructuring of Nissan Motor, in which Renault has a controlling minority stake.Nomura Securities senior analyst Seiji Sugiura says the "steps are merely to raise the funds needed to close [Nissan Diesel's] financial books" when the fiscal year ends March 31. But there are not many choices because the Japanese auto market is in a "sluggish state," he says.
It will be close to impossible to raise Nissan Diesel's profitability, analysts say, and HSBC Securities analyst Christopher Richter says he believes "Nissan and Renault are doing the minimum they can do to keep Nissan Diesel afloat."
In addition, parent company Nissan Motor needs Nissan Diesel to perform some manufacturing and supply diesel engines, so it is tough for Nissan not to keep Nissan Diesel running, analysts say. CNNfn Online (02/07/00)
Datron Makes Rolling Internet Connection
Datron Systems achieved a high-speed Internet connection in a van going highway speeds via the company's DBS-4500 In-Motion satellite TV antennas. Big rigs are among the 20,000-plus vehicles currently outfitted with Datron satellite TV antennas. The technique can be used in all Datron mobile satellite systems, the company says. Land Line Magazine Online (02/07/00)© copyright 2000 INFORMATION, INC. Terms of Service
