P.M. Executive Briefing - Oct. 28
This Afternoon's Headlines:
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Transit Group Reports Record Third Quarter Earnings
Transit Group says it had record profits and revenues for the first nine months and the third quarter of 1999. The company saw third-quarter revenues of $93.4 million, up 66% from 1998's third quarter, with $3.4 million in pretax income, up 169%, and $1.7 million in net income, up 170% from pro forma fully taxed earnings in the year-earlier quarter."While the immediate impact of our acquisition program has been to add revenues quickly and leverage our cost structure for increased efficiency, it is noteworthy that organic expansion also is occurring at an increasing rate," says President and CEO Philip A. Belyew.
Cause of Bridge's Collapse Is Sought
While Acrow Corp. of America, the manufacturer of a temporary bridge that fell last week in the vicinity of Lompoc, Calif., says its capacity was 38 tons, the 83-ton truck carrying an excavator that crossed the bridge immediately prior to the collapse had that day received a Caltrans permit.Caltrans thought the bridge could carry the truck, according to officials, but Acrow President Bill Killeen says that would only have been true if the truck had a very slow speed and was subject to other restrictions. The agency had informed Acrow that trucks on the bridge would be subject to limitations on speed.
A fatal July accident due to an overheight load hitting an overpass put the permit office into the spotlight; it has since been found that 15 or more mistakes like that one happened so far in 1999. Last week's accident is being looked into by the state, and Sen. Joe Dunn (D-Santa Ana) intends to widen a permit-office probe. Los Angeles Times (10/28/99) P. A3; Garvey, Megan
Celadon Group Announces First Quarter Results
Celadon Group says it saw $82.7 million in consolidated revenues from operations in the first quarter of FY2000, up 14%-plus from the prior-year figure, with net income of $1.5 million or net income per diluted share of 19 cents. Taking a one-time charge into account, the company saw a first-quarter net loss of $589,000, or a net loss per diluted share of 8 cents. The charge has to do with Celadon's Zipp Express acquisition.
he company saw $1.5 million in net income, or 20 cents in net income per diluted share, in the year-earlier quarter. The company took a hit of 5 cents per share due to the prices of fuel. Business Wire (10/28/99)
Inspection Systems Contract is Awarded
The Customs Service has inked a $10.5 million deal with Science Applications International for 11 Mobile Vehicle and Cargo Inspection Systems. The Mobile VACIS can be moved around easily and uses gamma rays to see into trucks and other equipment without removing cargo or drilling into trailers. Journal of Commerce Online (10/28/99)Michigan, Ontario Bicker Over New Bridge
Canadian and American transportation officials are upset with each other about the planned reopening of the original span of the now-twinned Blue Water Bridge between Port Huron, Mich, and Sarnia, Ontario, which annually carries some 1.3 million trucks.The U.S. side was to be opened Monday after a five-month delay, which caused many complaints. Now, the Canadians want the opening held back until Nov. 12 so a ribbon-cutting ceremony can be prepared, according to Dan Elash, the Blue Water Bridge Authority's general manager. The refit of the original span included a heightened load capacity.
However, Gary Naeyaert of the Michigan Department of Transportation says the important thing is that the U.S. side "won't be able to process as many trucks as on the Canadian side" since there is not as much expansion space in Port Huron. Detroit News Online (10/28/99) ; Greenwood, Tom
Terex Announces Record Third Quarter Earnings of $1.07 Per Share, Up 22 Percent
Terex says it saw a $10.2 million year-over-year rise in net income for the third quarter, to $29.9 million, with net income per share rising to $1.07 from 88 cents and net sales up 56% to $495.6 million. The company's net income for the first nine months saw a $31.6 million year-over-year rise to $86.3 million, with net income per share rising to $3.49 from $2.44 and net sales up 50% to $1.4 billion. The figures for 1998's first nine months do not include $38.3 million ($1.71 a share) in debt-retirement charges. Business Wire (10/28/99)Will the Truckload Market be Y2KO'd?
Stockpiling of goods in fear of the possible Y2K crisis could cause rate hikes and equipment shortages in the truckload market. Shipper demand has risen, but freight rates have remained stable due to the quantity of rail companies and independent truckers offering competition to the big carriers. Freight rates could also rise in response to increasing pay to truckers and costs for diesel.If freight booms in 1999's last quarter, a resulting bust at the beginning of 2000 could hurt rates, says Morgan Stanley Dean Witter trucking analyst Brian P. McGough., who predicts a possible 2% hike in truckload rates in 2000.
CFI Senior Vice President of Sales and Marketing Herb Schmidt predicts some increases between 2% and 3% late in 1999. Don Schneider of Schneider International thinks service might be parceled out by priority if there are too few trailers and trucks, and MS Carriers' Mike Starnes says specific customers might see their rates go up, although neither thinks all rates will rise. Logistics Management Distribution Report (10/31/99) Vol. 38, No. 10; P. 59; Cooke, James Aaron
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