News Briefs - May 16
The Latest Headlines:
- NHTSA Says International Trucks Recalled
- Capital Beltway Lanes to Close Morning of May 19
- Landstar Authorized to Buy More of Its Common Stock
- Quality Distribution Reports 1Q Profit
- Cannon Express Fiscal 3Q Loss Grows
- Senate Passes $350B Tax Cut Package
- Intermodal Rail Totals Rise
- Capital Beltway Lanes to Close Morning of May 19
NHTSA Says International Trucks Recalled
The National Highway Traffic Safety Administration said more than 15,000 International Truck and Engine Corp. heavy-duty trucks have been recalled due to a problem with the windshield washer pump motor circuit.On models 4400, 7300 and 7400, made between October 2001 and October 2002, NHTSA said the system’s ability to function is impaired when it is full of frozen water and the pump motor shaft is locked.
NHTSA said dealers would install a new fuse in a new 10-amp fuse in place of the 5-amp fuse to correct the problem. Transport Topics
Capital Beltway Lanes to Close Morning of May 19
All lanes of the Interstate 95/Capital Beltway at the Route 1 Interchange in Virginia are scheduled to be closed two times for about 20 minutes each between midnight and 5 a.m. on Monday, May 19.The Woodrow Wilson Bridge Project said in a release the closure would take place just west of the bridge. The bridge connects Maryland and Virginia over the Potomac River. Thousands of trucks cross the bridge each day.
In the event of inclement weather, the closures would take place on Tuesday morning. Transport Topics
Landstar Authorized to Buy More of Its Common Stock
Transportation firm Landstar System Inc. said Thursday it had been authorized by its board of directors to purchase up to an additional 1 million shares of its common stock.The Jacksonville, Fla.-based company, which has 15.9 million shares of common stock outstanding, said it can also still buy 285,270 shares under a previous agreement.
Since 1997, Landstar said it had purchased over 11 million shares of its common stock.
Landstar is ranked No. 18 on the 2002 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
( for the full press release.)
Quality Distribution Reports 1Q Profit
Chemical tank and liquid bulk hauler Quality Distribution said Friday its net income for the first quarter was $3 million, compared with a loss of $27 a year earlier, which included a $24 million goodwill charge.Revenue increased 11.7% to $137.2 million, the Tampa, Fla.-based company said in a release.
Quality said in its release it operates 3,363 tractors and 7,565 trailers through its three subsidiaries: Quality Carriers, TransPlastics, and Levy Transport.
It is ranked No. 33 on the 2002 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
( for the full press release.)
Cannon Express Fiscal 3Q Loss Grows
Truckload carrier Cannon Express Inc. said Thursday its fiscal third-quarter net loss was $3.6 million or $1.11 per share, compared with $2.4 million or 74 cents a year earlier.The Springdale, Ark.-based company said revenues for the quarter ended March 31 were $12.6 million, down from $18.5 million.
Cannon said results were negatively impacted by a soft market, a continued shortage of drivers and a reduction in fleet size. High fuel prices and bad weather also contributed, the company said. Transport Topics
( for the full press release.)
Senate Passes $350B Tax Cut Package
The Senate late Thursday approved a scaled-back $350 billion tax cut package that includes President Bush's proposal to eliminate taxes on dividends but only temporarily, news services reported. The vote was 51-49.Before passage, senators voted to slice the dividend tax in half this year, then suspend it completely for three years. That vote was 51-50, with Vice President Dick Cheney casting the tie-breaking vote.
If tax cuts spur consumer and business spending, trucking would benefit from the additional demand for goods.
The bill eliminates taxes on all dividends in two steps. In 2003, 50% of dividend earnings would be tax free, and then 100% from 2004 through 2006. But the tax cut would expire in 2007, and dividends would again be taxed at regular income tax rates with a top rate of 35%, Reuters said.
The Senate will have to work out its differences with the House of Representatives, which previously approved a $550 billion 10-year tax cut, Reuters reported. The House bill does not repeal dividend taxes. Transport Topics
Intermodal Rail Totals Rise
Intermodal loadings on the nation's railroads were up 6.3% in the week ended May 10 from the corresponding week in 2002, the Association of American Railroads reported late Thursday.Intermodal is the segment of the railroad business most directly competitive with long-haul trucking.
Trailers and containers loaded during the week totaled 196,125. For the first 19 weeks of the year, loadings totaled 3.5 million, which was 7.5% above last year's pace. Transport Topics
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