P.M. Executive Briefing - Oct. 15
This Afternoon's Headlines:
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Caterpillar Reports Third-Quarter Profit Per Share of 61 Cents
Caterpillar Inc. saw $4.72 billion in sales and revenues in the third quarter, a 9% drop from the year-earlier figure, as profit fell 35% to $219 million and per-share profit fell 34% to 61 cents.While a drop in sales volume and price realization as well as a different mix of sales led to the lower profit, the company did see higher revenues from Financial Products as well as reduced costs for research and development and for selling, general, and administrative. The company has reduced its 1999 sales and revenue expectations, anticipating a 5% drop from the 1998 figure as well as a profit of $3 a share.
The excellent market for trucks contributed to the engine sales rise in the United States and Canada. The company also saw third-quarter engine operating profit up 33% to $35 million as the machinery operating profit declined 53%. Caterpillar also foresees sales of engines in North America to grow for an additional year as truck demand keeps going. PR Newswire (10/15/99)
Asche Recapitalizes Through Minn. Lender
Minneapolis-based Churchill Capital Inc. has spent $12.15 million for 2.7 million shares in Asche Transportation Services, whose uses for the capital include paying debts, calling warrants, and buying the share of Asche-owned Specialty Transportation Services Inc. that is held by American Capital Strategies.Churchill Capital, which now has nearly a 50% stake in Asche, also named four people to Asche's board of directors, which will now comprise 13 people. Stephens Inc. analyst Tim Quillin says Asche "probably decided that the best way to get an infusion of capital was to go to the private market." The Trucker Online (10/15/99) ; Whitsett, Jack
Dover Reports Record Quarterly Earnings
Dover Corp., which has Heil Trailer among its companies, had third-quarter continuing operations earnings of a record 58 cents per share, five cents of which were non-recurring gains from selling Pathway Bellows and from a provision for a legal settlement. Third-quarter earnings saw a 53% year-over-year growth, or 39% if the non-recurring gains are left out.Heil Trailer and Heil Environmental put together had a backlog 6% lower than it was when 1998's third quarter closed; although markets were poor for Heil Trailer, Heil Environmental saw sizable gains. PR Newswire (10/15/99)
Developer Tells Trustees of Plans for Warehouse
If Romeoville, Ill., allows Pizzuti Cos. to move forward with plans to develop a 1.2 million square foot mixing center warehouse for Tenneco Packaging, the resulting facility will be see close to 200 tractor-trailers daily, Tenneco says. That was among the information presented at a meeting of the Village Board in Romeoville this week by Pizzuti Senior Vice President Pat Gallagher.Different products will be handled under one roof at the proposed center. But the daily truck count will go up to 300 if a planned eventual expansion goes through, claims Brian Andersen, who serves as vice president for the Economic Development Commission for Romeoville. The village staff and Planning and Zoning Board members will look over the plan prior to its reaching the Village Board. Chicago Tribune (10/15/99) P. 3, Metro Southwest Section; Szremski, Kristin
Heavy Duty Truck Market Sales Drive Latest Earnings
Cummins Engine Co.'s earnings for the third quarter were $53 million, up from a $110 million loss in the year-earlier quarter, with per-share earnings of $1.35, compared to a per-share loss of $2.86. Cummins had $174 million in special charges in last year's third quarter.Third-quarter sales were $1.63 billion, up 7%; while engine sales for medium-duty trucks were down 14% to $121 million, heavy-duty sales were up 20% to $459 million. Associated Press (10/14/99)
Heartland Express Announces Third Quarter Operating Results
Heartland Express saw net income of $8.6 million on revenue of $65.4 million in the third quarter, compared to $8.4 million net and $65 million revenue in the year-earlier quarter. There was a 1 cent rise in earnings per share, which were 29 cents.For the first nine months, the company saw $24.7 million in net income on $194.5 million revenue, down from $24.8 million net and $201.1 million revenue in the comparable 1998 period. The first nine months' earnings per share had a 1 cent decline to 82 cents.
While higher pay to drivers and prices for fuel affected the results for the third quarter, Heartland Express gained $934,812 from property sales. Operating ratio was 82.3% for the quarter and 82.9% for the nine months, compared to 82% and 82.8%, respectively, for the year-earlier periods. Between Dec. 31 of last year and the close of this year's third quarter, the company's amount of cash, cash equivalents, and municipal bonds rose from $143.4 million to $165.4 million. Business Wire (10/14/99)
Consolidated Delivery Signs Major New Agreement with First Union Bank
Consolidated Delivery & Logistics and First Union Bank signed an agreement under which CD&L will carry checks and mail from all of First Union's New Jersey and northern Florida branches to regional clearing facilities. CD&L was already performing this services for First Union in New Jersey. PR Newswire (10/14/99)copyright 1999 INFORMATION, INC. Terms of Service
