News Briefs - July 31
The Latest Headlines:
- Prosecutors in Pa. Accuse Truckers of Falsifying Logs
- GOP Announces $60 Billion Amtrak Plan
- Fed's Guynn Says Economy Poised for Growth
- Airborne's Earnings Rise on Higher Shipments
- DOT Ruling on Ex-DHL Airways Hampers FedEx, UPS
- Trucking Leasing Company Ruan to Cut Jobs
- Goodyear Reports 2Q Loss
- GOP Announces $60 Billion Amtrak Plan
Prosecutors in Pa. Accuse Truckers of Falsifying Logs
Eight truckers were indicted for allegedly ignoring federal safety rules that limit how long they can drive without rest, the Associated Press reported.The nine indictments announced Wednesday also accused a Pennsylvania trucking company and one of its dispatchers of encouraging drivers to falsify work logs that are supposed to show truckers have enough time to sleep between shifts, AP said.
Department of Transportation regulations currently require truckers drive no more than 10 straight hours before taking an eight-hour break.
GOP Announces $60 Billion Amtrak Plan
Republican senators on Wednesday announced a six-year, $60 billion plan to help Amtrak, countering a Bush administration proposal that would reduce federal support for passenger rail service, the Associated Press reported.The plan by Kay Bailey Hutchison of Texas, Trent Lott of Mississippi, Conrad Burns of Montana and Olympia Snowe of Maine would give Amtrak the $2 billion in annual operating subsidies it has requested.
The administration's six-year plan for Amtrak would end Amtrak's monopoly on intercity passenger rail service, minimize federal subsidies and promote competition among railroad operators.
The administration has said it will give Amtrak no more than $900 million for the budget year that begins Oct. 1 unless Amtrak is restructured. Amtrak has warned it needs at least $1.8 billion to keep the trains running.
Like the administration plan, Hutchison's bill would replace Amtrak as the owner of 366 miles of track — plus stations, tunnels, bridges and associated real estate — in the Northeast. Elsewhere in the country, Amtrak runs primarily over tracks owned by freight railroads, AP said. Transport Topics
Fed's Guynn Says Economy Poised for Growth
Federal Reserve Bank of Atlanta President Jack Guynn said the economy is poised for a stronger expansion as tax cuts, low interest rates and a decline in energy prices boost demand over the next several quarters, Bloomberg reported Thursday.The Atlanta Fed president told the Construction Industry Institute's annual meeting in Florida that business leaders in the Southeast are telling him they are more upbeat.
He also said he is looking for an increase in investment spending, production, and employment, Bloomberg said.
Guynn is one of four regional Fed bank presidents who are voting members of the Federal Open Market Committee this year. Transport Topics
Airborne's Earnings Rise on Higher Shipments
Airborne Inc. on Thursday reported a second-quarter net income of $3.8 million or 8 cents per share, compared with $457,000 or 1 cent a year ago.The 2002 results included a restructuring charge of $2.3 million or 3 cents per share.
The company said that revenues and total shipments both grew in the second quarter. Revenues totaled $827 million, up from $812 million last year, while total shipment volumes increased to 87.3 million, compared with 85.6 million.
Airborne's ground delivery service volumes averaged 239,000 shipments per day, up 73% over the average of 138,000 shipments per day in the second quarter of 2002. Transport Topics
DOT Ruling on Ex-DHL Airways Hampers FedEx, UPS
The Department of Transportation limited the scope of a federal judge's scrutiny of the former DHL Air-ways Inc., which could make it harder for United Parcel Service and FedEx Corp. to prove their allegations that the airline is under the control of German carrier Deutsche Post AG, the Wall Street Journal reported Thursday.DOT ordered the judge to make a recommendation in the dispute by the end of the year and to only con-sider the current ownership structure of what is now known as Astar Air Cargo Inc.
The ruling is a setback for FedEx and UPS, which have been trying to include Astar's past owners into the fight to ground the cargo carrier for allegedly violating federal laws limiting ownership or control of U.S. carriers by foreign entities, the Journal said.
Last month, Astar Chief Executive John Dasburg led a takeover of the company, but FedEx and UPS said they would prove that this did little more than change the airline's name, according to the Journal. Transport Topics
Trucking Leasing Company Ruan to Cut Jobs
Citing weakness in the truck leasing business, Ruan Leasing will eliminate 100 jobs over the next three weeks, the Associated Press reported Wednesday.A large portion of the leasing company's business comes from selling used trucks after the lease expires. The value of used trucks fell by as much as 50% since truck manufacturers flooded the market with new trucks in the last three years, company officials told AP.
Ruan Leasing, which has more than 10,000 trucks under lease, is a division of Des Moines, Iowa-based Ruan Transportation Management Systems. Transport Topics
Goodyear Reports 2Q Loss
Despite gaining market share in the North American consumer and commercial replacement tire markets, the Goodyear Tire & Rubber Co. said Wednesday it lost $73.6 million or 42 cents per share in the second quarter, compared with a net income of $28.9 million or 18 cents a year ago.Sales for the quarter rose 8% to $3.8 billion. The 2003 results included a charge of $13.4 million for salaried staff reductions and manufacturing consolidations, the company said in a release.
Goodyear also said it was hurt by an increase in raw material costs.
"We are disappointed in our financial results for the second quarter, but we are encouraged by the numerous positive trends in our company and we are optimistic about our turnaround," said Robert Keegan, Goodyear chairman and chief executive officer. Transport Topics
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