P.M. Executive Briefing - Jan. 22
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Conrail Names New President
Conrail's board announced Monday that Gregory R. Weber has been named president of Conrail, effective Feb., 1, succeeding Timothy T. O'Toole.Conrail, a jointly owned subsidiary of CSX (CSX) and Norfolk Southern (NSC), provides local freight service and coordinates operations serving NS and CSX in New Jersey, Philadelphia and Detroit.
eber comes to his new position from CSX, where he most recently was vice president and treasurer. He joined CSX in 1986. Transport Topics
Bush Delays Diesel Rule
In one of his first official acts on Saturday, President George W. Bush launched a "regulatory review plan" that applies to certain regulations enacted during the closing hours of the Clinton Administration.Bush's directive will delay the effective date of the Environmental Protection Agency's recently published regulation of diesel fuel and heavy truck emissions from March 19 to May 18.
Bush's directive requires agency heads to immediately:
- Stop sending proposed or final regulations to the Federal Register for publication.
- Withdraw all rules that have been sent but have not yet been published.
- Postpone for 60 days the effective date of regulations that have been published in the Federal Register but have not taken effect.
USF Bestway Gets New CEO
USF Bestway has a new chief executive, Gary Beggs, who replaces Bob Fasso.USFreightways (USFC), USF Bestway's parent company, announced the appointment Monday, stating that Beggs will have complete profit and loss responsibility for the regional less-than-truckload carrier.
Beggs, who has 28 years of transportation experience, joined Bestway in August.
Bestway serves the Pacific Southwest through a network of 41 terminals, and provides overnight service between all major markets statewide in both California and Texas. Transport Topics
Eaton to Restructure Truck Components Unit
Diversified manufacturer Eaton (ETN) plans to change its truck components segment to a "less vertically integrated" business model, and will take a $55 million charge during the calendar year to restructure that business, the company announced Monday.Eaton's fourth-quarter operating earnings per share were $1.40, or 12% below fourth quarter 1999. However, the Cleveland-based company said sales and operating earnings per share for the full year were at record levels, $6.52 per share on sales of $8.4 billion.
But truck component sales were 36% below those of a year ago, at $273 million. Transport Topics
RDO to Pare Down Its Truck Business
Heavy equipment dealer RDO Equipment plans significantly reduce its truck business, the Fargo, N.D.-based company announced Friday.RDO has agreed to sell its truck center business located in Roseville, Minn., to Mack Trucks of Rochester, with closure expected at the end of January. New dealership agreements with John Deere Construction Co. pave the way for new "core" business lines, RDO said. However, it will keep the North Dakota truck stores, which have been "consistently profitable" through the years, the company said.
Company officials expect a net loss of about $6.5 million from operations for the fiscal quarter ending Jan. 31. This includes losses on the truck operations the company is exiting. The truck operations exit is expected to spur a one-time charge of about $7.5 million, including intangibles.
RDO specializes in the distribution, sale, service, rental and finance of equipment and trucks to the agricultural, construction, manufacturing, transportation and warehousing industries, as well as public service entities, government agencies and utilities. It has 54 retail stores in nine states. Transport Topics
CP Railway Has Record Year Despite 4Q Slide
Canadian Pacific (CP) on Monday announced a year of record income partly from tax and accounting changes and increases in intermodal and automotive revenues. The Calgary-based company had operating income of US$562.9 million, an increase of $55.2 million or 11%. Intermodal revenues increased $19.9 million, and automotive revenues went up $17.9 million for the year.
But the railroad finished the year on a weak note. For the fourth quarter, operating income was $155.2 million - down $13.9 million or 8% from last year. Intermodal revenue for the quarter was down by 4.3%, while fourth-quarter automotive revenue dipped 0.9%. Transport Topics
Headlines From Today's A.M. Briefing
- DHL Expects to Keep USPS' Global Business
- Chrysler May Face Huge Job Cuts, Plant Closings
- Intrenet Files for Bankruptcy
- National Gasoline Average Up 4 Cents
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