News Briefs - July 30
The Latest Headlines:
- Deutsche Post Posts Profit; Says Airborne Purchase Moving Forward
- Crude Oil Rises as Gasoline Supply Decline
- Senate Rejects Auto Fuel Economy Boost
- Allied Profits Up Despite Lower Revenues
- USF Earns 30 Cents Per Share in Fiscal 2Q
- Frozen Food Posts 2Q Profit
- Vitran Reports Higher Net Income
- North Dakota to Offer Loans for Future Truckers
- Truckers May Be Banned From Part of I-40 in Tennessee
- Crude Oil Rises as Gasoline Supply Decline
Deutsche Post Posts Profit; Says Airborne Purchase Moving Forward
German mail and package delivery company Deutsche Post said Wednesday that its net income for the second quarter was $172 million, news services reported Wednesday.The company lost $292 million in the second quarter of 2002, but those results included a large fine for misusing German government subsidies that skewed comparison.
Deutsche Post said its latest earnings were lower than expected, damaged by the sluggish global economy, according to the Associated Press.
Crude Oil Rises as Gasoline Supply Decline
The price of crude oil rose on Wednesday after a report by the Energy Department showed that nationwide inventories of gasoline fell, Bloomberg reported.Crude is distilled down to motor fuels like diesel and gasoline, both of which are used to power the trucking indus-try.
Crude oil for August delivery was up 44 cents on Wednesday afternoon to $30.68 a barrel on the New York Mercantile Exchange, Bloomberg said.
Gasoline inventories fell 3.3 million barrels to a three-month low of 204.5 million, DOE said. It also said supplies of crude oil rose 1 million barrels to 277.3 million in the week ended Friday. Transport Topics
Senate Rejects Auto Fuel Economy Boost
A new energy agenda in the Senate would do little to force automakers to substantially increase fuel economy, the Associated Press reported Wednesday.The Senate turned back an attempt Tuesday to include a requirement in the energy bill that automobiles cut gasoline use by 45% over the next 12 years.
Instead, the Senate approved by a 66-30 vote that the Transportation Department consider tougher fuel economy standards, but only after taking into account the impact on jobs, highway safety and other issues that could adversely harm the U.S. auto industry, AP said.
Opponents to the tougher automobile fuel measure argued that manufacturers would be forced to stop making larger cars and sport-utility vehicles, resulting in thousands of autoworkers to lose their jobs.
Cars and SUVs use up about 40% of the oil that is used daily in the United States, according to AP. Transport Topics
Allied Profits Up Despite Lower Revenues
Allied Holdings Inc. said Wednesday that its net income for the second quarter improved to $3.4 million or 39 cents per share, from $2.1 million or 24 cents a year ago.Revenues declined 3.7% to $230.1 million, the hauler of motor vehicles said in its release. The decline was attributed to a 5.8% decrease in vehicle deliveries.
Allied is ranked No. 22 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
USF Earns 30 Cents Per Share in Fiscal 2Q
Transportation company USF Corp. said late Tuesday that it earned $8.1 million or 30 cents per share in its fiscal second quarter ended July 5, compared with $5.9 million or 22 cents a year ago. The 2002 second quarter ended June 29.The 2003 results included a $1.2 million charge related to retirement costs for the company's former chief executive, Samuel Skinner.
Operating profits for the less-than-truckload group were $25.3 million, down from $28.5 million last year. LTL shipments and tonnage each decreased 6.2%.
However, truckload carrier USF Glen Moore reported a 9.6% revenue increase to $31.2 million.
USF is ranked No. 10 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Frozen Food Posts 2Q Profit
Temperature-controlled carrier Frozen Food Express Industries Inc. said late Tuesday its second-quarter profit was $1.9 million or 11 cents per share, compared with a net loss of $738,000 of 5 cents per share a year ago.Income from trucking operations was $2.9 million, compared with $800,000 during last year's second quarter. Freight revenue was $96.4 million, an increase of 14.2% from last year.
"Even when I consider the potential negatives, I am more optimistic about our business than I was at this time last year," said Stoney Stubbs Jr., chairman and chief executive officer.
Frozen Food is ranked No. 46 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Vitran Reports Higher Net Income
Transportation firm Vitran Corp. said Wednesday that its net income for the second quarter was $2.7 million or 27 cents per share, compared with $2 million or 21 cents per share a year ago.evenues for the quarter were $83 million, down from last year's $121.6 million. Toronto-based Vitran said the strength of the Canadian dollar negatively impacted its revenue by $6.4 million.
Income from operations for Vitran's less-than-truckload segment increased 2% to $4.2 million. Its logistics and truckload units also reported profits.
Vitran is ranked No. 57 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
North Dakota to Offer Loans for Future Truckers
The North Dakota Industrial Commission approved a new loan program to help students enrolled in a state truck driver training program, the Associated Press reported.Beginning Aug. 1, a loan of up to $7,500 would be offered by the Bank of North Dakota. The loans must be repaid within five years of the first payment.
The program is scheduled to end in 2007, AP said. The loan amount would be affected by a student's other forms of income. Transport Topics
Truckers May Be Banned From Part of I-40 in Tennessee
Transportation officials in Tennessee want commercial truckers banned from driving through downtown Knoxville on Interstate 40, the Associated Press reported.I-40 is major east-west route connecting North Carolina to California. In Tennessee, it connects Knoxville and Nashville.
The Knoxville Regional Transportation Planning Organization passed a resolution last week to ask state officials to consider shifting commercial trucks from downtown I-40 to Interstate 640, a bypass running west and north of the city.
The measure was prompted by state plans to widen 2.5 miles of I-40 through downtown, AP said. Transport Topics
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