P.M. Executive Briefing - Oct. 24

• Headlines From Today's A.M. Briefing

Canacar Launches Protest Against M.S. Carriers Subsidiary

About 500 truckers, in groups of 15 or 20, are either parking alongside highways with banners or driving together at slow speeds as a protest against the company, the story said. According to Canacar, EASO violates the part of the North American Free Trade Agreement which reserves domestic point-to-point hauling for Mexican companies, the Journal said.

A Canacar spokesman said in the article protests will continue - and possibly escalate - unless EASO's operating permit is cancelled as the group demands, the story said.

Wabash 3Q Income Cut in Half

Net sales for the quarter that ended Sept. 30 were $345.8 million, compared to $374.7 million for the same period last year. Net income for the quarter was $5.0 million ($0.20 per share), compared to $10.4 million ($0.43 per share) for the same period last year. Analysts were looking for 32 cents per share before the company issued an earnings warning Oct. 12.

Jerry Ehrlich, Wabash's president and chief, blamed a general slowdown in freight demand as well as high fuel prices and rising interest rates. But proprietary products such as RoadRailer and DuraPlate trailers are in strong demand, accounting for approximately $450 million of the company's $700 million backlog, he said.

Wabash, based in Lafayette, Ind., designs, manufactures and markets standard and customized truck trailers under the Wabash and Fruehauf trademarks. Transport Topics

Heating Oil Prices Could Jump With One Cold Snap

That is also bad news for trucking companies and those reliant on diesel fuel, which is very similar to heating oil; a shortage like the one experienced in the Northeast last winter will drive up the price of diesel.

The average heating-oil household can expect to use more heating oil and pay more for it: 693 gallons this winter at a cost of $949. last winter, the typical household used an average 644 gallons which cost about $760 - a 25% increase in price - the U.S. Energy Department said in the story. While many homeowners are stocking up on heating oil, distributors warn that one spell of freezing weather could wipe out those stocks, Bloomberg said. Transport Topics

TransCom USA to Supply FedEx With Parts, Related Items

This agreement will include the purchase of products for all major vehicle systems as well as consumable items used in the vehicle repair process.

TransCom USA will supply FedEx from three specialty distribution centers in Memphis, Tenn., Newark, N.J. and Sparks, Nev. The companies have a full e-commerce arrangement that will reduce transaction costs. Transport Topics

Truck Maker Cutbacks Contribute to Goodyear 3Q Loss

The Akron, Ohio-based company lost $6.6 million in the third quarter - or 4 cents per share - as higher materials and energy costs offset the impact of improved sales of replacement tires. Analysts surveyed by First Call/Thomson Financial had anticipated a loss of 2 cents per share.

Goodyear Chairman and Chief Executive Samir G. Gibara said it is too early to measure the full impact the Bridgestone/Firestone tire recall will have on Goodyear or the tire industry, both in the original equipment and replacement markets. He did say that consumers are showing more interest in safety and brand quality than price. Transport Topics

Cummins CFO Resigning to Join Online Venture

Patel had been CFO of the Columbus, Ind.-based heavy-duty engine maker since 1996.

Earlier this month, Cummins reported a 53% drop in third-quarter earnings from 1999 as a result of a weakening heavy-truck market. Transport Topics

Arrest Made in California Safeway Strike

The suspect was passing out leaflets at the store to protest the labor practices of Boston-based Summit Logistics, which operates Safeway's main Northern California distribution center, the story said. He was released with a citation, the Pinole Police Department told The Record.

Summit officials claimed there had been four other incidents since Saturday where trucks were disabled at Safeway stores.

While minor skirmishes have broken out between Summit workers, who have been striking at the warehouse since Wednesday, and the replacement workers hired to keep the warehouse moving, this is the first arrest made in connection with the job action, the story said. Transport Topics

Tenneco Cuts Jobs on 3Q Dropoff

Tenneco's market has slowed as fewer new vehicles need replacement parts, the story said; also, third-quarter results were negatively affected by a slowing in North American heavy truck production.

The company's third-quarter earnings of 23 cents per share topped First Call/Thomson Financial estimates of 20 cents per share, Bloomberg noted.

Transport Topics

Overnite Crosses Into Mexico

Advantage Mexico will provide express service on Mexican shipments and same-day border crossing for manufacturing and assembly shipments, and will offer less-than-truckload, truckload, assembly and distribution services.

Mexican shipments will be expedited from gateway centers in El Paso, Harlingen and Laredo, Texas; and Los Angeles and San Diego, Calif. Overnite will have operations in 14 Mexican cities, including Tijuana, Mexico City and Monterrey. Transport Topics

Slow Transportation Sales Force Alcoa Cutbacks

Alcoa had said earlier this month that fourth-quarter results would be lower, due in part to lagging sales to the transportation and construction industries, the story said. Transport Topics

Headlines From Today's A.M. Briefing

• Diesel Back Down After Hitting Record High
• Motor Cargo Industries Reports 3Q Increase
• Landair Posts 3Q EPS of 5 Cents After 1999 Loss
• Mideast Concerns Not Affecting Oil Prices
• Allied Holdings Posts 3Q Loss
• Unfavorable Conditions Cause Wabash 3Q Earnings Drop
• GATX Tops 1999 3Q
• Dodge Hybrid SUV to Get 20% Fuel Boost from Electric Motor
• Laidlaw Gets Approval to Seek Credit

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