P.M. Executive Briefing - Oct. 2
ul>
Manufacturing Activity Contracts for Second Month
The National Association of Purchasing Managers on Monday said its production index of U.S. manufacturing activity rose to 49.9% in September, the second straight month that the gauge suggested the factory sector is contracting, the Associated Press reported.The NAPM activity index was 49.5% in August. It uses 50% as a break-even point; anything above that indicates economic growth and anything below contraction, AP said. Transport Topics
Several Drug-Testing Labs Being Inspected
The U.S. Department of Heath and Human Services will inspect the 65 drug-testing labs that test transportation workers, due to concerns about the sample validation process at a Kansas lab, the Wall Street Journal reported Monday.
The Department of Health and Human Services will investigate the 65 federally certified labs to see how they handle validation tests, the article said. Transport Topics
Argentina's Truckers Begin Strike Over Fuel Costs
Truck drivers across Argentina blocked roadways in protest over high costs, including fuel, Bloomberg reported Monday.The government had offered last-minute cutbacks in diesel prices and highway tolls, but they were rejected as too little, the article said.
The striking drivers will allow vehicles delivering produce and milk to get through their blockades for now, an Argentine National Transport Confederation said. Transport Topics
CSX Loses Appeal to Overturn Punitive Damages
CSX Corp. (CSX) lost out in its last chance to have overturned $50 million in punitive damages, awarded to the widow of a man killed in a 1991 derailment, Bloomberg reported Monday.The U.S. Supreme Court refused to hear the appeal from CSX, which owns the third-largest U.S. railroad as well as the track on which the derailed Amtrak train had been traveling, Bloomberg said.
A Florida jury had handed down the original decision, the largest punitive damage award ever from that state, according to Bloomberg. The widow's lawyers had blamed the accident on a broken pin in a railroad switch, which they said could have been prevented had CSX not made major cuts in its maintenance staff, the report said. Transport Topics
Navistar Shares Up on Reported Paccar Offer
Navistar International Corp. (NAV) shares rose 34% on reports that competing truck maker Paccar Inc. (PCAR) made a conditional purchase offer for the company, even though a Paccar official said his company had not made a bid for Navistar, Bloomberg reported Monday.Navistar shares rose as high as 40.13 before reaching 35.44 in midday trading, the article said.
A Paccar official said in an interview that the article from Stark's Truck and Off-Highway Ledger that had reported the offer was "speculative" and "not true," Bloomberg noted. However, Bloomberg also said that official declined to comment on whether Paccar is pursuing all or part of Navistar.
Bloomberg also said Navistar had declined to comment. Transport Topics
ArvinMeritor Exceeds Cost-Saving Goal
Heavy-truck axle maker ArvinMeritor Inc. (ARM), based in Troy, Mich., said Monday it has already exceeded a cost-saving goal for next year from its July merger of Arvin Industries and Meritor Automotive, Bloomberg reported.The company said that in its first 100 days since the merger, it made $40 million worth of cost-cutting moves by eliminating duplication in areas like purchasing, human resources and finance, the article said. ArvinMeritor's cost-saving goal for the year was $30 million.
This is better news than the company had two weeks ago, when it said it would earn less than expected in the fiscal fourth quarter due to slowing North American truck demand, Bloomberg said. Transport Topics
FMCSA Probes Reports of Illegal Drivers in Des Moines
The Federal Motor Carrier Safety Administration is investigating several Des Moines, Iowa, trucking companies on reports that they are using illegal immigrants from Australia and New Zealand in their desperate search for drivers, the Des Moines Register wrote Monday.Kent Fleming, Iowa's FMCSA director, confirmed the agency has found evidence of possibly criminal activities and civil penalties, the article said. Several companies are allegedly forging immigration-related documents, such as Social Security cards and work permits, and luring drivers from other countries through classified ads, the Register reported. Transport Topics
Mexico Evacuates Oil Workers From Storm Path
Some 6,300 workers were evacuated from oil platforms belonging to Mexico's Petroleos Mexicanos (Pemex) in the face of Hurricane Keith, Reuters reported Monday.Of those, 5,200 were evacuated Saturday as a precautionary measure and the other 1,100 Sunday, the article said. Production workers remain on the oil platforms, a Pemex spokesman said. No word was given on how the evacuation would affect crude production, the article said.
Hurricane Keith was losing strength while bringing rain to Belize, in Central America, Reuters noted. However, oil markets have been watching it closely, as anything that disrupts production or refining can crimp already tight supplies for fuels. Transport Topics
EGL, Circle Complete Merger
EGL Inc. (EAGL), a domestic heavy air-freight forwarder, said Monday it has completed a merger that makes Circle International Group (CRCL) a wholly owned EGL subsidiary."Our goal of creating a one-stop worldwide logistics solutions company has been achieved through the merger with Circle International," said James Crane, chairman and chief executive officer of the combined companies.
He said the merged units have "minimal overlap, complementary services" and can leverage EGL's sales and marketing organization with Circle's international expertise to offer both customized freight transport and complete logistics services. Transport Topics
Bridgestone Reportedly to Seek Resignation of U.S. Head
Bridgestone (BGT-BER) President Yoichiro Kaizaki told a Japanese business magazine Friday he will ask for the resignation of Masatoshi Ono, chief executive officer of the company's U.S. division, Bridgestone/Firestone.The remarks to Nikkei Business were reported Monday by MSNBC.com. The company has been under fire for safety problems in which tread separated from some of its tires and these were linked to accidents involving about 100 U.S. deaths. Bridgestone has a massive recall under way of more than six million Firestone-brand tires.
Kaizaki had reportedly said in September he was contemplating changes in Bridge-stone/Firestone senior management, but did not specify anyone at that time, MSNBC noted.
Besides the earlier recall, Firestone's Steeltex tires are also now under investigation by the U.S. National Highway Traffic Safety Administration. Transport Topics
Headlines From Today's A.M. Briefing
- Paccar Reportedly Bids for Navistar
- Trucker Protests Flare in Spain, Luxembourg, Yugoslavia
- Norfolk Southern Warns on Earnings
- Grupo Dina Responds to Cancellation of Western Star Contract
- Amtrak to Revamp Cargo Operations
- PLM Completes Sale of Trailer Leasing Operations
- Fed Meets Tuesday; No Rate Change Expected
- Bridgestone's Steeltex Tires Now Being Investigated
- Crude Oil Price Moves Back up on Heating-Oil Ideas
- American Freightways to Use New Bar-Code Scanning Technology
- The Cronos Group Names Younger COO
- Mitsubishi Fined Lightly in Cover-up Scandal
| ||||
