News Briefs - April 30
The Latest Headlines:
- NHTSA Recalls Some International Trucks
- Air Cargo Grew at Slower Pace in March
- Wabash Posts First Profit in Over Two Years
- Accounting-Rule Change Helps Freight Railroads
- USFreightways Reports Profits of $2.8 Million
- Airborne Reports Loss as Costs Grow
- Swift’s 1Q Profits Dip Slightly
- Vitran Earnings Surge in 1Q
- Patriot’s Earnings Fall 56%
- UPS Begins On-Call ϳԹ Service
- FedEx Launches Asia-U.S. Container Service
- Air Cargo Grew at Slower Pace in March
NHTSA Recalls Some International Trucks
The National Highway Traffic Safety Administration said it had issued a recall for up to 2,418 International Truck and Engine Corp. model 4700 heavy-duty trucks made between 1995 and 1999.NHTSA said the recall involved some trucks equipped with Bostrom driver seat models 910, 910SC, or 914 and International’s parking brake code 04036.
The agency said if someone outside the truck cab adjusted the driver’s seat to its most forward position while the parking brake was set, the seat could release the lever for the parking brake.
HTSA said dealers would install a stop-bracket on the seat track so that the seat cannot release the lever. Transport Topics
Air Cargo Grew at Slower Pace in March
The amount of cargo carried in the holds of aircraft rose 2.5% in March compared with the year-earlier period, the Air Transport Association reported.Trucks carry freight to and from airports, so increased air-cargo volumes can translate into more demand for trucking services.
Airlines carried 2.02 billion ton-miles during the month, up from 1.97 billion ton-miles last year, the Air Transport Association said. However, March's 2.5% increase was lower than the 4.4% reported in February and 6.9% in January.
For the first quarter of 2003, total cargo ton-miles increased 4.5% over the first three months of last year.
The report covers 16 carriers, including United Parcel Service and FedEx Corp. Transport Topics
Wabash Posts First Profit in Over Two Years
Truck trailer maker Wabash National Corp. reported its first profitable quarter in more than two years on Tuesday.The Lafayette, Ind.-based company said in a release its net income for the first quarter was $1.4 million or 5 cents per share, compared with a net loss of $14.6 million or 65 cents per share a year ago. Net sales were $223 million, up from $162 million last year.
Chief Executive William P. Greubel said that new trailer demand and production were nearly double than the first quarter of 2002, and about 10% higher than the fourth quarter.
Wabash designs and manufactures truck trailers under the Wabash and Fruehauf brands. Transport Topics
( for the full press release.)
Accounting-Rule Change Helps Freight Railroads
Three U.S-based freight railroads said their first-quarter net income increased.CSX Corp. on Wednesday said in a release net income was $99 million or 46 cents per share, compared with $25 million or 12 cents in the first quarter of 2002. CSX’s results benefited from an accounting change in the company accounts for disposing of track ties.
However, CSX also reported a 16% rise in shipments of consumer goods hauled by a rail-truck combination.
Chief Executive Michael Ward said on a conference call that he expected second-quarter results to be better, Bloomberg reported.
Meanwhile, Kansas City Southern said profits rose 16% to $13.6 million or 22 cents per share despite a slight decline in sales, as it also benefited from an accounting-rule change.
And Genesee & Wyoming Inc. said its net income was $5.5 million or 31 cents per share, compared with $5.4 million or 31 cents a year ago. Its North American operating income increased 22.1% to $8 million. Transport Topics
( for the CSX press release.)
( for the Kansas City press release.)
( for the G&W press release.)
USFreightways Reports Profits of $2.8 Million
Trucking company USFreightways Corp. said late Tuesday its first-quarter net income was $2.8 million or 10 cents per share, compared with a net loss of $77.7 million or $2.89 cents per share a year ago.The Chicago-based firm said last year’s results included a $70 million charge related to accounting changes.
USFreightways said in a release that first-quarter sales rose 14% to $593.7 million.
The company said severe weather cost less-than-truckload units USF Red Star and USF Dugan about 3 cents per share for the quarter.
In addition, it recorded a charge of about 4 cents per share at its logistics segment for the write-down of accounts receivable from Fleming Companies Inc., which recently filed for bankruptcy.
USFreightways is ranked No. 8 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
( for the full press release.)
Airborne Reports Loss as Costs Grow
Airborne Inc., the parent of Airborne Express, reported a first-quarter loss on Wednesday of $5.6 million or 12 cents per share despite a 4.3% increase in sales to $824.9 million.Last year’s earnings for the first quarter were $5.3 million or 11 cents per share.
Airborne recently agreed to sell its ground operations to Deutsche Post AG's package-delivery unit, DHL, for $1.05 billion.
Seattle-based Airborne said in a statement that higher fuel prices, harsh winter weather and expenses related to the planned sale all contributed to the net loss.
Total domestic shipment volumes increased 3.5% from last year, Airborne said. Ground delivery service volumes averaged 220,000 shipments per day in the first quarter, exceeding Airborne’s target of 210,000 per day.
The company also said that the U.S. economy “does not appear to be showing signs of any sustained strength.” Transport Topics
( for the full press release.)
Swift’s 1Q Profits Dip Slightly
Swift Transportation Co. Inc. on Tuesday reported a net income for the first quarter of $8.9 million or 10 cents per share, down from $9.4 million or 11 cents per share in the year-earlier period.Revenues increased 15.9% to $551.3 million, the Phoenix-based truckload carrier said in a release. That included $23.1 million of fuel surcharge revenue.
The company said revenue per tractor increased by more than $2,400 in the first quarter, compared with last year.
Swift is ranked No. 13 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
( for the full press release.)
Vitran Earnings Surge in 1Q
North American transportation and logistics firm Vitran Corp. said late Tuesday its first-quarter net income was $1.4 million or 15 cents per share, compared with $620,000 or 6 cents per share in the first quarter of 2002.Income at Vitran's less-than-truckload segment grew over 7% to $2.6 million, driven by revenue growth in both the Canadian and U.S. divisions.
Vitran said that while its logistics and truckload segments were profitable during the quarter, income from operations declined at both units compared with the year-ago period.
Vitran is ranked No. 52 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
( for the full press release.)
Patriot’s Earnings Fall 56%
Patriot Transportation Holding Inc. on Tuesday reported a net income for its fiscal second quarter eneded March 31 of $622,000 or 20 cents per share, a decrease of 56% from the second quarter of 2002.The transportation segment's revenues were $21.3 million, an increase of 11.1% due to more miles hauled and higher fuel surcharges. This segment is made up of Florida Rock & Tank Lines Inc. and SunBelt Transport Inc.
Looking ahead, the company that although fuel prices have declined from the prior quarter, liability and health insurance costs remained on an upward trend. So, the company said in a release, its future results would depend mainly on whether the U.S. economy begins to grow. Transport Topics
( for the full press release.)
UPS Begins On-Call ϳԹ Service
United Parcel Service said Tuesday it had started a service called On-Call Pickup that offers occasional shippers working in small offices or at home same-day pickup service for ground parcels.This service would allow people to use the Internet or telephone to schedule a pickup of any type package either on the same day or on a future date, should they be unable to leave the office, the company said in a release.
The service requires that a customer use "MyUPS.com" on the Web to prepare the package. Once that is done, a pickup on the same day can be scheduled on the Web for $4 a package, or $2 for pickup the next day.
If the phone is used, the fee for same day pickup is $5 and the fee for a pickup the next day is $4, UPS said.
UPS is ranked No. 1 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transaport Topics
( for the full press release.)
FedEx Launches Asia-U.S. Container Service
FedEx Freight said April 24 that it has launched containerload service from Asia to the United States in conjunction with FedEx Trade Networks’ ocean-ground distribution service.The FedEx Corp. subsidiaries said the new service would prepare containers in Asia, manage ocean shipment and then handle customs clearance and document preparation. Once containers are in the U.S., trucking companies FedEx Freight, less-than-truckload service, and FedEx Ground, parcel delivery, would break down shipments and handle inland distribution.
Freight President Douglas Duncan said in an interview that Asia is a key market because manufacturing continues to move there. But, he said, 70% of the decisions concerning how Asian manufactured products are moved are made in the United States.
Duncan said by combining the services, shippers would be able to cut transit times from Asia to the United States to about 28 days. Previously, shipments could take as long as 40 days, he said. Tiffany Wlazlowski
This story appeared in the April 28 print edition of Transport Topics.