P.M. Executive Briefing - Oct. 11
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Delphi 3Q Earnings Match Estimates
Troy, Mich., auto parts maker Delphi Automotive Systems Corp. (DPH) said its earnings rose 9% to $148 million, or 26 cents per share, in the fiscal third quarter, Reuters reported Wednesday.The earnings per share matched Wall Street estimates for the quarter, the article said.
The company attributed this growth to a 15% increase in sales to customers other than General Motors (GM), Delphi's former parent company, Reuters noted. The $2 billion in non-GM revenue made up 30% of the company's third-quarter sales. Transport Topics
More LA Workers Strike; MTA Makes Final Offer
About 42,000 Los Angeles county workers from a variety of public services went on strike Wednesday, adding on to the 25-day transportation workers' strike, the Associated Press reports.The Metropolitan Transportation Authority said it made its "last, best and final offer" Tuesday night to the United Transportation Union, which represents the 4,300 bus and rail workers currently on strike, the article said. The union was given until 9 a.m. Thursday to accept MTA's offer; MTA will present it directly to the workers if it is rejected by the union, AP reported.
The general strike of other county workers could affect as many as 10 million people in the area, and the low-income population already hard-hit by the MTA workers' strike could bear the brunt of the problems, the article said. Workers from jails, libraries, beaches and health clinics are among those striking. Transport Topics
Senate Unmoved So Far on Fuel Surcharge
The fuel surcharge for small trucking companies and independents, approved late Tuesday by the House on a voice vote, still has an uncertain future.House Transportation and Infrastructure Committee Chairman Bud Shuster (R-Pa.) called for the bill's approval, which allows companies to get reimbursed by shippers for hauling their goods.
The legislation would not take the place of any negotiated fuel surcharge agreements that are now in place.
Senate action is needed for the legislation to take another step toward becoming law, but some members of Congress are concerned that this will be seen as an attempt of government to regulate the industry. The Teamsters are also interested in seeing the bill become law because of its efforts to organize truck drivers at ports, said a member of Congress.
The mandatory surcharge would come into play when there is a five-cent disparity between the latest week's national average and the previous year's national average for diesel fuel. John Wislocki, Transport Topics
Fla. Troopers Asked to Cut Fuel Use
The Florida Highway Patrol has asked its troopers to reduce mileage and cut fuel usage by 20% due to increasing gas prices, the Associated Press reported Wednesday.The FHP faces a $1 million gas-budget deficit, and will have to cut back on regular patrols, while still responding to emergencies, the article said. Troopers will also have to sweat while doing paperwork – instead of leaving their vehicles, and air conditioners, running in the hot weather, they are asked to shut them off, AP added. Transport Topics
EPA's Diesel Fuel Rule Survives Capitol Hill Fight
Efforts by the American Petroleum Institute and Cummins Inc. (CUM) – largest maker of diesel engines greater than 200 horsepower – were unable to stop the Environmental Protection Agency's plans to reduce the level of sulfur in diesel fuel by 97% starting in 2006.Recent negotiations on Capitol Hill focused on delaying implementation of this proposal by inserting language in the 2001 EPA appropriations bill.
API had argued the new rule would drive up prices by 50-cents a gallon nationwide, force small refiners out of business, create havoc in the home heating oil market and produce spot shortages. Cummins said the aftermarket technology required to make the engines emit less pollution is still on the drawing board and has not been proven; the engine maker has urged additional study.
Ultimately, both groups failed to convince negotiators who were putting the final touches on the plan. The EPA appropriations is contained in the Veterans Affairs, HUD appropriations bill, which could get a look by the Senate as early as this afternoon. John Wislocki, Transport Topics
AgWaste Diesel Plant Being Built in B.C.
A new pilot plant that will turn agricultural waste into diesel and other liquid fuels should be completed by year's end, DynaMotive Technologies Corp. (DYMTF) announced Wednesday.Construction is under way on the "BioOil" plant in Vancouver, B.C., which will produce 6,000 liters a day after a commissioning period of three to six months, the company said. The product will be used in test programs once production ramps up.
DynaMotive also plans to build a commercial demonstration plant in 2001, to serve as a springboard for plants to be built elsewhere in Canada, as well as Europe, Brazil, Asia and other international markets. Transport Topics
California Court Affirms Ford Recall Order
A California judge affirmed a recall order Wednesday for almost two million Ford (F) vehicles, including some minivans and pickups commonly used in the utility industry, the Associated Press reported.The court found that Ford misled regulators and consumers about an alleged design defect in its thick film ignition (TFI) module, which made those vehicles more likely to stall, the article said.
A court-appointed official will now determine when and how the recall should proceed, lawyers told AP. Transport Topics
UPS Names COO, CFO
UPS (UPS) announced Wednesday it has named Thomas Weidemeyer as its chief operating officer and D. Scott Davis as chief financial officer, to take effect at the beginning of 2001.Weidemeyer and Davis assume these positions on the retirement of COO Charles Schaffer and CFO Robert Clanin, the company said. Schaffer and Clanin both started in part-time, entry-level jobs with UPS and had a combined 60 years of service to the company.
UPS is a express carrier and parcel delivery company serving more than 200 countries worldwide. Transport Topics
Headlines From Today's A.M. Briefing
- U.S. Diesel Fuel Prices Continue On Downward Trend
- House Vote Would Spread Fuel Surcharges to More Truckers
- U.S. House Approves Auto, Tire Safety Bill
- Congress Said to Look Into SPR Release
- Matlack to Report Loss, Signs Credit Amendment
- American Freightways Beats Analysts' Estimates for Quarter
- Rail Giant BN Said Curbing Capital Spending
- Oil Price Rises on U.S. Inventory Concerns
- India's Fuel Price Hike Pushes Truck Rates
- S&P Cuts Daimler Outlook to "Negative"
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