P.M. Executive Briefing - Jan. 24
This Afternoon's Headlines:
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Partners Build Heavy-Duty Hybrid
Volvo Trucks North America is working with Lockheed Martin Control Systems and Radian to create a Class 8 highway tractor run by a 460-hp diesel engine at faster speeds and a pair of 250-hp electric motors at slower speeds. The tractor, part of an Army program supporting joint commercial and military projects, will be tested at U.S. military facilities. Test data will be sent from the vehicle to government laboratories and the University of Michigan Transportation Research Institute.The truck is expected to have "unprecedented acceleration" and provide "more power than today's high-torque, high-horsepower engines," said Volvo Trucks vice president of business development Keith Brandis. It should also be less costly to operate and have more efficient braking. Automotive News (01/24/00) No. 5858; P. 100; Kisiel, Ralph
Rollins Earnings Hit by Acquisition, Y2K Costs
Rollins Truck Leasing said it saw pretax earnings of $24.21 million in the fiscal first quarter, up 5% from the year-earlier quarter. Net earnings were up 5% to $14.77 million and earnings per diluted share up 8% to 26 cents, with revenues up 9% to $169.62 million. While revenues were up in full-service lease, guaranteed maintenance, logistics, and commercial revenue, margins were hurt by acquisition-related and Y2K costs. Journal of Commerce Online (01/24/00)Heartland Express Inc., Posts 4Q EPS $0.31 vs. $0.28
Heartland Express said it saw fourth-quarter earnings per share of 31 cents, up from 28 cents in the year-earlier quarter, on revenues of $66.5 million, up from $62.4 million. For the full year, earnings per share were $1.13, up from $1.10, on revenues of $261 million, down from $263.5 million. Standard & Poor's (01/24/00)ARL Gets Convention Business Boost With Las Vegas Trucking Acquisition
The Pennsylvania trucking firm ARL, a national freight-hauling business with 150 offices across the country has acquired Burpee Logistics in an attempt to develop convention business in Las Vegas. The family-run, 20-employee Burpee Logistics is based in Las Vegas and brings founder Mike Burpee's two decades' experience as a convention foreman.According to Mike Burpee, the $4.8 billion annual Las Vegas tradeshow business is expected to double over the next half decade, and his company is one of only four in the area whose specialty is carrying convention freight. He adds his company also puts together and dismantles tradeshow booths and provides storage space for exhibitors. These value-added services are what sparked ARL's interest in Burpee Logistics.
ARL President Ron Faherty Jr. said he hopes to grow ARL's $3 million convention-hauling business to more than $80 million, and the company is planning to expand to Chicago, Atlanta, Orlando, Miami, and Tampa. Pittsburgh Business Times Online (01/24/00); Schooley, Tim
Yellow Freight System Names Bonebrake Senior V.P. For New Transportation Services
Valerie Bonebrake has been appointed to the new position of senior vice president – new transportation services – at Yellow Freight System; she was Ryder Integrated Logistics vice president and corporate officer. Journal of Commerce Online (01/24/00)VW On the Lookout for Heavy-Truck Business
Although it had to pass on a purchase of Scania last year due to the truckmaker's high price tag, Volkswagen is still looking for a heavy-truck operation. In 1998, VW Chairman Ferdinand Piech said the German company would lose business if it still lacks 18- to 20-ton trucks in five years. VW board of management member Jens Neumann told an interviewer at the North American International Auto Show that VW "can always go it alone" if no acquisition opportunity arises. He raised the possibility of VW making trucks in Brazil. Automotive News (01/24/00) No. 5858; P. 100; Kisiel, RalphEx-Employees Fail to Win Liquidation
A hearing Wednesday into former NationsWay Transport Services employees' motion to have the bankrupt trucking company liquidated was halted during the first witness's testimony, said NationsWay lawyer Don Gaffney.Bankruptcy Court Judge Sara Curley set a two-week deadline for a consensual plan to be reached by the two parties. The employees believed they would be more likely to get close to $5 million in back wages if NationsWay was liquidated rather than reorganized.
Separately, Swift Transportation said it bought back 1 million shares of Swift stock in last year's fourth quarter and this year's first quarter, during which time 226,400 shares were also purchased by Chairman and CEO Jerry Moyes and his affiliates. The buyback of as many as 500,000 additional shares has been authorized with a June 30 deadline. Arizona Republic Online (01/21/00)
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