P.M. Executive Briefing - Jan. 17
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OPEC Agrees to Cut 1.5 million Barrels of Oil Daily
As expected, the Organization of Petroleum Exporting Countries agreed Wednesday to cut 1.5 million barrels of oil per day from the world market beginning Feb. 1, Bloomberg reported.This was the first OPEC cut in two years. Some cartel members are already also considering further cuts for OPEC's March meeting.
OPEC increased production four times in 2000. It made this production cut to avoid a glut in the market and keep prices below $25 per barrel.
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Williams Calls its Truck Parts Business 'Sound' Despite Losses
Williams Controls (WMCO) believes its electronic throttle controls for heavy trucks and cars are "sound" businesses and intends to keep maximizing their value for shareholders, the company said Wednesday in announcing its unprofitable yearly results.Although overall sales of the Portland, Ore.-based company increased 10.3% to $67.8 million, Williams reported a net loss of $16.7 million or 88 cents a share for the fiscal year ended Sept. 30. The figures exceed the previous year's net loss of $9.5 million or 54 cents a share. Much of the losses stemmed from two operating subsidiaries, GeoFocus and Premier Plastics, Williams said.
Company CEO Thomas K. Ziegler said the company was pursuing "strategic alternatives" for the business, which include a possible sale of subsidiaries or the entire company. Transport Topics
HomePlace Files for Chapter 11 Reorganization
Household merchandise retailer HomePlace of America said Wednesday that it filed a voluntary petition for reorganization under Chapter 11 bankruptcy in Delaware. The company said slow holiday sales and the slowing U.S. economy contributed to the bankruptcy.Trucks will continue to haul shipments to the 84 stores and three distribution centers that HomePlace plans to operate while it reorganizes. However, 38 stores will close, the company said.
Myrtle Beach, S.C.-based HomePlace currently operates 122 stores in 27 states. It sells linens, small kitchen appliances and home décor items. Transport Topics
Almost 50% of Retailers Plan New Distribution Centers
Nearly 50% of retailers plan to build new distribution facilities within the next three years, a survey released by management consulting firm Deloitte & Touche said Wednesday.The growth of e-commerce has given trucks more freight and parcels to carry, which in turn has driven the need for additional distribution facilities.
The retailers surveyed said they plan to build the distribution centers mainly in the U.S. Midwest, West and Southeast. Several retailers also plan to build international distribution centers, especially in Western Europe. Transport Topics
OSHA Deadline Passes on Grandfathered Ergonomics Programs
As of January 16, any company with an existing ergonomics program must have completed at least one evaluation of its program.However, in a December letter denying a request for an extension, OSHA head Charles Jeffress said the evaluation need not have taken place between Nov. 14 and Jan. 16, since earlier evaluations "may continue to be relevant to the employers' current program."
The American Trucking Associations is trying to get trucking exempted from the rule. OSHA created the rule to prevent musculoskeletal injuries in the workplace. Transport Topics
Fritz Moves to Protect UPS Purchase
Fritz Cos. (FRTZ) has adopted a stockholder rights plan, which would apparently keep anyone from blocking the company's sale to United Parcel Service (UPS).The San Francisco-based freight forwarder announced the plan Wednesday, which prevents anyone other than UPS from buying more than 15% of the stock. UPS an-nounced Jan. 10 its intent to buy Fritz, largely through a stock swap.
Rival FedEx has since raised antitrust concerns about the deal, since Fritz handles some of its freight. Transport Topics
Shares in ComRoad AG Rise After InfoMove Purchase
Truck-tracking software supplier ComRoad AG said Wednesday that its shares rose 18% after it bought a 12% stake in Seattle-based InfoMove.com, Bloomberg reported.InfoMove develops wireless services for vehicles. Frankfurt, Germany-based Com-Road bought shares in the company to increase its U.S. market share, the article said. Currently, ComRoad has 5% of the U.S. market, but it plans to increase this to 40% during the next few years.
In early January, ComRoad also bought a majority stake in Sarasota, Fla.-based Comworxx Inc., a developer of global positioning systems. Transport Topics
Trucking Opinions Vary on NY Toll Proposal
Trucking witnesses gave contrary responses to the variable toll plan that would charge truckers and other drivers less at night for using Hudson River crossings near New York City, the New York Times reported Wednesday.Reactions ranged from outright rejection of the plan and criticism of the toll hikes as unfair, to ideas that might make the toll changes acceptable, the Times said.
On Tuesday, the Port Authority of New York and New Jersey began three days of public hearings on its previously announced plan, aimed at raising revenue and easing rush-hour congestion.
Under the Port Authority proposal, trucks would pay $7 per axle during the day but would be charged $4 between midnight and 6 a.m. Trucks now pay $4 per axle at all times.
Matthew Wright, the president of Apgar Brothers Inc., contradicted New Jersey Motor Truck Association leaders when he suggested that extending the overnight discounts from 7 p.m. to 6 a.m. might garner more industry support, the Times reported. Transport Topics
ArvinMeritor Earnings Drop 69%
ArvinMeritor’s (ARM) fiscal first-quarter earnings fell 69% compared with last year, largely due to weakness in the commercial and light truck aftermarket segments, the company reported Wednesday.Net income for the quarter ending Dec. 31 was $20 million or 30 cents per share. The company also said sales for the quarter slid 14% from a year ago.
The Troy, Mich.-based maker of heavy truck axles promised “vigorous” cost-reduction initiatives, limitations on capital spending, workforce reductions and a reduction in the number of facilities around the world.
Commercial vehicle systems sales were $552 million, down 26% from $747 million a year ago. The company expects North American Class 8 truck production to reach 160,000 units in fiscal 2001, and is planning its production accordingly. Transport Topics
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Headlines From Today's A.M. Briefing
- Truck Rams Calif. Capitol, Killing Driver
- Delphi 4Q Earnings Beat Forecasts
- U.S. Economy: Output Falls Again; CPI Rises Mildly
- OPEC to Cut Oil Production By 1.5 Million Barrels
- GM 4Q Earnings Beat Wall Street Expectations
- Lowe's to Build Distribution Center in Wyoming
- U.S. Xpress Will Help Restore Destroyed Seattle Landmark
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