P.M. Executive Briefing - Oct. 21
This Afternoon's Headlines:
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New Interest in Nissan Diesel
DaimlerChrysler, which previously in 1999 pulled out of discussions on a purchase of Nissan Diesel, says it would reenter the discussions if Nissan Diesel's debt is restructured.Since the earlier talks ended, Renault took a 36.8% stake in Nissan and a 22.5% stake in Nissan Diesel, but Renault Chairman and CEO Louis Schweitzer says the French company is also concerned about Nissan Diesel's debt. Reduced Asian sales of trucks have hurt Nissan Diesel, which according to Nissan has not been profitable for two decades.
GM Trucks Leaving Suburb, Leaving Teamsters Behind
Three Teamsters-unionized Allied Industries terminals – one in Chicago Heights, Ill., and the other two in the Rockies – will no longer be hauling General Motors cars and trucks to dealerships from rail terminals.Starting in the middle of December, GM vehicles at the Chicago Heights terminal will be hauled by Seher Distribution Services, whose drivers use their own trucks and are not unionized. Allied has informed Local 710 of the Teamsters that the 50 Chicago Heights truckers will be out of their jobs unless there are spots for them at other Allied facilities.
Mike Sweeney of the union local says the automaker is open for bids from competitors to all its unionized carriers, while Dan Jankowski of GM says the bidding was Allied's request. Allied and Seher Distribution Services had no comment. Chicago Tribune (10/21/99) P. 6, Business Section; Arndt, Michael
India's Two Million Truckers Launch Indefinite Strike
A strike of over two million truckers and 2.2 million trucks began Thursday in India after the country's government ordered a hike in diesel prices this month.On Wednesday, discussions on the issue between the government and the All India Motor Transport Congress came to a stalemate. The current coalition government is trying to cut subsidies as well as raise more money for highway construction. But members of the freight industry say the increase will lead to inflation.
Vegetable prices in New Delhi have gone up more than 100 percent, and police there say they will protect non-striking drivers. Since 1997, there have been eight hikes in the diesel price, although outcry from the public made the earlier government withdraw six times. Agence France Presse (10/21/99)
Old Dominion Freight Line Reports Third Quarter Earnings Growth of 24.4 Percent to $0.51 Per Share
Old Dominion Freight Line saw $108.5 million in third-quarter revenue from operations, up 9.3% from the year-earlier quarter, with net income of $4.2 million, up 23.3%, and 51 cents in basic and diluted earnings per share, a 24.4% rise.Third-quarter operating ratio was 92.8%, better by 0.4 percentage points than the year-earlier figure. Less-than-truckload revenue per shipment was up 9.2%, although the company's growth in LTL tonnage was restricted by Hurricane Floyd's effect on the coast.
In this year's first nine months, the company saw $314.1 million in revenue from operations, up 10.7% from the year-earlier quarter, with net income of $11 million, a 23.2% rise, and $1.32 in basic and diluted earnings per share, up 23.4%. The nine months' operating ratio was 93.3%, better by 0.5 percentage points than the year-earlier figure. Business Wire (10/21/99)
Allied Holdings Reports Third Quarter Results and Announces Stock Repurchase
Allied Holdings, whose subsidiaries handle the delivery of cars and light trucks, saw third-quarter revenues of $240.1 million, up from $217.5 million from the year-earlier quarter, with a $3.8 million net loss, or 49 cents per basic and diluted share, compared to the year-earlier figure of a $5 million net loss, or 64 cents per basic and diluted share.In this year's first nine months, the company saw revenues of $788.3 million, up from $751.5 million in the comparable 1998 period, with a $3.7 million net loss, or 47 cents per basic and diluted share, down from the $3.4 million net income, or 44 cents per basic and diluted share, in 1998.
President and COO A. Mitchell Poole Jr. says the company often has third-quarter problems as auto factories are closed. In this year's third quarter, Allied Automotive Groups saw higher costs for labor and cargo claims as well as lower load averages due to the increased size and weight of vehicles the company handles, Poole says, while the third quarter of 1998 saw job actions at General Motors factories. However, the Axis Group, whose subsidiaries handle logistics, had a third-quarter profit and is still doing better than expected, he says.
Allied's board has authorized a maximum 500,000-share common stock repurchase. PR Newswire (10/21/99)
Trucker Had No Insurance
Tate Trucking Company, the firm whose trailer broke in half and spilled 43 logs on a car Tuesday in Espanola, N.M., is the subject of a safety probe and the recipient of a citation for not having insurance. Two women in the car died in the accident. ABC NewsWire (10/21/99)Pacer Stacktrain Upgrades Domestic Container Fleet
Pacer International unit Pacer Stacktrain says it is adding 1,500 new Shanghai Jindo Container Co. 53-foot containers, with chassis, to be received by the beginning of next month. Pacer Stacktrain is to mull another 2,000-container order by year's end.Pacer Stacktrain President Gary Goldfein says the company desires "to demonstrate our belief that the 53-foot container, by providing 11 percent more cubic capacity than the 48-foot domestic box, is fast becoming the unit of choice for domestic shippers of low-density freight." Unlike Pacer's earlier containers, the new units will carry the Pacer logo and name. Business Wire (10/21/99)
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