P.M. Executive Briefing - July 25
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Investor Says Navistar Should Sell Or Consolidate
One of Navistar International's institutional investors would like the company to explore opportunities to sell part of its operation or, perhaps, merge the whole thing with another company.
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Denton said the Chicago-based company, which recently separated its engine building operation from truck and bus manufacturing, should see its stock selling much higher than the $35 7/16 it started at on Tuesday.
He said that, while the market for Class 8 trucks is currently poor, medium-duty trucks and buses are selling well. Citing Paccar as "an excellent company," Denton, did not make any specific recommendations as to a merger partner. However, he did not limit the possibilities to North American companies. Denton added, alternatively, the Navistar Board might wish to sell off a part of the operation, like the engine company, which, he said, is a "leader in the industry."
Roy Wiley, manager of external communications for Navistar, declined to comment on Denton's suggestions. Dan Lang, Transport Topics
CFI's Surfside Will Partner With Qualcomm On Transportation Software Project
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The agreement is to create an interface between Surfside's dispatching software and Qualcomm's wireless mobile communications systems. This interface will allow drivers to receive information and communicate with dispatchers using digital text or voice messages. Transport Topics
Slow Truck Production to Blame for ArvinMeritor's Slow Quarter
Heavy-truck axle maker ArvinMeritor Inc. reported Tuesday that earnings for the fiscal quarter fell 4.5% due to a decline in North American heavy truck production, Bloomberg said.The results were "in-line" with estimates, a Bear Stearns & Co. analyst told Bloomberg. Production for heavy trucks in North America dropped to a 270,000-unit pace for the first half, down from 316,000 for 1999.
The Troy, Mich.-based company is the product of this month's merger between Meritor Automotive and Arvin Industries. Transport Topics
Boyd Bros. Reports Drop in Net Earnings
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Operating revenues also fell 2% to $32.6 million, which the company said was due in part to the recent closing of its logistics and specialized operations in its subsidiary Welborn Transport.
Boyd Bros. Transportation is a flatbed carrier, mainly serving the steel and building materials industries. Transport Topics
Interstate 95 To Be Focus of Conn. Transportation Summit
With 130 fatalities between 1993-98 and 160,000 cars a day using a road built for one-fourth that figure, Interstate 95 in Connecticut is an issue of concern to motorists and legislators alike. The interstate and ways to improve it will be the focus of the state's transportation summit in September, the Associated Press reported this week.The interstate opened in 1958 and saw 40,000 cars a day. Engineers predicted that figure would rise to 60,000 cars a day in 20 years and expansion would be necessary, the article said. Current improvements focus mainly on repairs rather than relieving congestion.
Several people, including Connecticut Gov. John G. Rowland, said in the article that trucks have taken over I-95. However, a state DOT official told the AP that there has been no substantial increase in truck accidents recent years.
The summit is aimed at reviewing ways to improve all of Connecticut's roads, but will mainly focus on I-95, the article said. Transport Topics
GATX Corp. Enjoys Rise in Net Income for Second Quarter
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The company had recently announced it would be selling its storage and distribution subsidiary, GATX Terminals. The company has also completed a sale of 81% of GATX Logistics. Because of these moves, GATX Integrated Solutions has been classified as a discontinued operation for reporting purposes.
GATX Corp. is a finance and services company serving several industries, including rail and air. Its other subsidiaries are GATX Rail and GATX Capital. Transport Topics
Canadian Driver Admits to Falsifying Log Book, Says Many Drivers Keep "Liar Books"
Canadian truck driver Albert Labelle, who pleaded guilty Monday to three charges of improperly maintaining and doctoring his truck logbook, told the Edmonton Sun that he did it because he has to drive more hours than legally allowed to meet his deadlines.Labelle also said most drivers do the same, calling their logbooks "liar books" because of the often-false entries. If suppliers loaded him up too late, he said he would drive beyond the 13 hours legally allowed in Canada to meet his delivery deadline.
Both Canada and the United States are struggling with proposed changes to their respective federal hours-of-service rules. A proposal is currently on the table in Canada that could allow drivers to work 14-hour days and up to 84 hours in a seven-day period with one night of rest. Transport Topics
Earnings Jump 45% in Fiscal Quarter For Oshkosh Truck
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Net sales and operating income increased 19% and 23%, respectively, the company said.
CEO Robert Bohn said the success was due to double digit sales and operating income growth from each division. Transport Topics
USBuild.com and Penske Logistics To Team Up
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Penske will handle inbound shipments from manufacturers, USBuild.com's local fulfillment center based in Denver and all just-in-time deliveries to new home sites. Transport Topics
Big Retailers To Close Stores, Distribution Centers
In separate announcements that have implications for numerous trucking operations around the country, giant retailers Kmart Corp. and Circuit City group said they would be restructuring and shutting down some facilities.Kmart said it will close 66 of its stores by November, and another six by yearend. Most of them were marginally profitable, the company said, but were hampered by location or would not justify the investment to expand them.
Circuit City said it will close six of its distribution centers this year, plus two more over the next 12 months as it revamps all its Superstores and discontinues selling major appliances.
Such moves by major retailers can affect a wide range of goods shipped to them, and therefore a variety of trucking operations in their supply chain. Transport Topics
Paccar’s Net Declines on Weak North American Market But Tops Expectations
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The company said in its earnings announcement that “the U.S. and Canadian truck market, both Class 5-7 and Class 8, are being negatively impacted by slower freight growth, higher fuel prices and interest rates, increased insurance premiums and growing new and used truck inventory. Truck orders for the industry are currently lower by 30-40% compared to the previous year.” But it said truck production in Mexico remains strong.
Paccar makes the Kenworth and Peterbilt brands. Transport Topics
