Executive Briefing -- April 23
- Motor Cargo Reports Record Earnings
- Manufacturers Announce More Than 11,000 Job CutsTenneco Reports Q1 Loss
- Weak Economy Lightens Rail Demand
- Navistar Predicts Second Quarter Profits
- OPEC Unlikely to Raise Output Soon
Motor Cargo Reports Record Earnings
Motor Cargo Industries, (, a less-than-truckload carrier, reported record earnings of $1,169,000 for the first quarter, compared to $672,000 for the same period in 2000, representing a 74% increase.
Operating revenues for the first quarter increased 8.3% to $$32,904,000, compared to 30,383,000 in 2000.
MC Distribution Services, the company’s logistics and distribution management services subsidiary, contributed revenues of $1,388,000 during the first quarter, compared to $1,093,000 in the previous year.
( for full press release.)
Manufacturers Announce More Than 11,000 Job Cuts
Following lower earnings or heavy losses in the first quarter, several manufacturers announced job cuts Tuesday, wire services reported. Added together, more than 11,000 job cuts were announced.Cuts in manufacturing decline the volume of truck shipments and the number of trucks on the roads in the next few months.
The job cuts included:
--Goodyear Tire and Rubber Co., (), said it would cut 600 jobs in addition to the 7,200 layoffs already announced. The company said reduced orders from truck and carmakers hurt its first quarter.
--Communication equipment maker Lucent Technologies, (), said the company plans to cut another 6,000 positions by the end of the second quarter, as previously announced. It has already cut 2,000 jobs and 2,200 contract positions.
-Lucent's semi-conductor spin-off, Agere Systems, said it would get rid of 2,000 jobs following a second-quarter loss, which ended March 31.
--Computer maker Compaq Computer, (), said it would eliminate 2,000 jobs after its earnings fell one penny below analysts' expectations.
--JDS Uniphase, (),
aker of fiber-optic equipment, said it would cut 5,000 jobs as it restructures to reduce costs.Transport Topics
Tenneco Reports Q1 Loss
Vehicle parts maker Tenneco Automotive (), reported a first-quarter loss of 44 cents per share, compared with a profit of 3 cents per share during the same period last year.The Lake Forest, Ill.-based company said it was hurt by auto and truck production cutbacks in the soft U.S. economy.
It said North American original equipment revenue declined 15%, and aftermarket revenue decreased 13%.
Analysts had expected a loss ranging from 50-80 cents, with an average loss of 64 cents.
( for the full press release.)
Weak Economy Lightens Rail Demand
While reporting a decline in its latest quarterly earnings from a year ago, western-U.S. rail giant Burlington Northern Santa Fe, (), on Tuesday became the third big North American rail company this week to talk about the weak economy.
BNSF said it earned 36 cents per diluted share in first-quarter 2001, down from 55 cents a year earlier, as “continued softness in the U.S. economy” hurt some types of freight shipments. Higher fuel expenses and harsh winter weather boosted costs and curbed revenues as well.
On Monday, eastern-U.S. giant CSX, (), and Canadian National, (), both noted they suffered declines in auto shipments and some other industrial freight. BNSF made the same observation.
CSX earnings fell to 10 cents a share from 14 cents a year earlier; CN earnings rose to C$1.39 from C$1.24. Transport Topics
( for the BNSF press release.)
( for the CSX release.)
( for CN’s release.)
Navistar Predicts Second Quarter Profits
Navistar International Corp., (), said its fiscal second quarter results will show a return to profitability, with earnings of about 5 cents a share, despite continued soft demand for new trucks.
The Chicago-based company, which manufactures commercial trucks, buses and diesel engines, has reported losses for the past two fiscal quarters.
However, Chairman John Horne said credited cost cutting steps taken last year for the predicted return to profitability in the second quarter ending April 30.
Earnings for the second quarter will be released on May 16. Transport Topics
( for full press release.)
OPEC Unlikely to Raise Output Soon
The secretary-general of the Organization of Petroleum Exporting Countries said on Monday that the oil cartel was unlikely to raise output before September, Reuters reported.Ali Rodriguez did say that OPEC would increase oil production by 500,000 barrels per day if prices went above the cartel's $22-28 range during 20 consecutive days.
OPEC has curbed production twice this year by a total 2.5 million bpd to prop up prices during a seasonal demand dip in the second quarter and amid fears that a global economic slowdown would reduce demand.
The cartel currently pumps about 40% of the world's oil supply. Transport Topics