P.M. Executive Briefing - Oct. 25
This Afternoon's Headlines:
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Renault CEO Won't Bail Out Nissan Diesel
Renault Chairman and Chief Executive Louis Schweitzer says his company will not bail out Nissan Diesel unless the Japanese truckmaker, which is $4.72 billion in debt, can restructure its finances.Nissan Diesel and Nissan Motor hope to have a bailout put together with Nissan Diesel's creditors before January; Nissan Diesel will not get any more money from Renault unless it can achieve a bailout, Schweitzer said at the Tokyo auto show. He also said he will not mull a sale of his company's Nissan Diesel share unless there is an offer. Wall Street Journal (10/25/99) P. A26; Shirouzu, Norihiko
Oshkosh Truck Reports Record Net Income for Fiscal 1999
Oshkosh Truck says that in the fourth quarter of FY99 it saw net income up 104% from the year-earlier quarter. Net income was $10.1 million, up from $5 million, with a per-share net of 77 cents, up from 39 cents, and $314 million in sales, up from $243 million. The fourth-quarter operating income was $23 million, up 55%, climbing to 7.3% of sales from 6.1% of sales in FY98's fourth quarter.The commercial segment saw sales up 50% to $145.7 million in the fourth quarter, with operating income of $14 million, up 146%. Defense sales in the fourth quarter were $75.5 million, up 25%, with operating income of $7.9 million, up by $1 million. Fire and emergency sales in the fourth quarter were $93.1 million, up 8%, while operating income was $6.9 million, down 18%.
President and CEO Robert G. Bohn attributed the earnings increases to "market share gains in rear-discharge mixers, refuse bodies, fire and emergency apparatus, and most dramatically in front-discharge concrete trucks."
For the entire fiscal year, net income was $31.1 million, up 107% from FY98, with per-share net of $2.39, with $1,165 million in sales, up from $903 million. Commercial sales for FY98 were $608 million, up 72%; defense sales were $223 million, down 10%, with $22.9 million in operating income, up slightly from $22.7 million; and fire and emergency sales were $336 million, up 12%, with $26.8 million in operating income, up 4.6%. Business Wire (10/25/99)
Northern Counties Mull Issues
A referendum to be decided by voters Nov. 2 would force city heads in Fort Collins, Colo., who are trying to route trucks on Colorado 14 out of the city's downtown, to find a way to have them bypass the city altogether. Those disagreeing with the measure say the price tag would be too high and that the city has no place trying to affect transportation beyond its borders. Denver Post Online (10/25/99) ; Cornelius, ColemanCorrecting Bad Data: Motor Carriers Want Right to Challenge Incorrect DOT Safety-Related Data Files
The Transportation Lawyers Association has requested the right for motor carriers to make corrections to safety information in the Department of Transportation's data banks.According to TLA officer Jim Flint, DOT database errors are common and can "tag a safe carrier for unnecessary compliance reviews" and perhaps higher insurance costs. The TLA has asked that the DOT establish a central filing point for appeals for corrections, speedily reinvestigate and fix errors, and tell carriers in writing what the department will or will not do.
In addition, the TLA wants the DOT to note the dispute in the database if there is no resolution. Traffic World (10/25/99) Vol. 260, No. 4; P. 15; Wilner, Frank N.
Newcomer Millman Gets Top Job at NHTSA
On Wednesday, Rosalyn Millman, 36, who only in September became the deputy administrator of the National Highway Traffic Safety Administration, was appointed acting administrator by Transportation Secretary Rodney Slater. This came after Administrator Ricardo Martinez departed the NHTSA; officials at the NHTSA would not comment on whether a permanent successor will be nominated by President Clinton.Getting in charge of the agency so quickly was a surprise to Millman, she said, and Ralph Hoar, a safety consultant, said he had "serious concerns" about how ready she was for the job, which he called extremely difficult. But he named three presidents who many people also thought were not ready for the job.
Millman, formerly a Democratic staff economist on the House Transportation and Infrastructure Committee, is a capable person and knows the transportation movers and shakers, say her onetime staff colleagues in Congress. They also say she can cooperate with members of both parties. Automotive News (10/25/99) No. 5845; P. 4; Stoffer, Harry
Boyd Bros. Reports Higher Revenues and EPS for Third Quarter of 1999
Boyd Bros. Transportation says that in 1999's third quarter and first nine months it hit records in revenues and net income per share. Revenue was also growing faster in the third quarter than in the first two quarters.Third-quarter operating revenues were $35.5 million, up from $30.3 million in the year-earlier quarter, with net income down to $982,034 from $1.1 million, while per-share net income was 28 cents, up by 1 cent, due to shares repurchased in the last twelve months. The first nine months saw $98.8 million in operating revenues, up 12% from the comparable 1998 period, with net income of $3.1 million, up 11%, and net income per share was 86 cents, up 26%, as the number of average shares outstanding was 13% lower.
President and CEO W. Miller Welborn says profits before tax were affected by higher fuel prices, although this effect was mitigated by higher use of owner-operators, which has also allowed the company to grow its fleet. The percentage of owner-operator power units at the close of the quarter was 51%, up from 41% a year earlier. Business Wire (10/22/99)
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