News Briefs - Oct. 30
The Latest Headlines:
- UPS Expects Higher Profits in 2004
- Fleet Sentiment Survey Finds Strong Demand for Trailers
- Initial Jobless Claims Continue Falling
- Old Dominion’s Profits Rise
- Higher Costs Push Down Waste Management’s Earnings
- Frozen Food's Freight Revenue Increases 15%
- Stonepath Nets $13.1 Million From Stock Sale
- Fleet Sentiment Survey Finds Strong Demand for Trailers
UPS Expects Higher Profits in 2004
United Parcel Service said Thursday it expected earnings to rise 12% to 18% next year, led by higher U.S. and international shipments.The Atlanta-based firm said in a statement U.S. shipments would rise between 3% and 4% in 2004, while international shipments would climb at least 8%.
It also said it would invest $600 million in its domestic network to save $600 million annually when the project is completed in 2007.
Fleet Sentiment Survey Finds Strong Demand for Trailers
About 70% of fleets plan to purchase trailers in the next six months, with 43% using them to expand capacity, according to a quarterly survey released by CK Marketing & Communications.The research firm said 27 fleets -- with an average of 1,800 units -- took part in the fourth-quarter survey released Thursday.
In addition, 67% said they planned to purchase power units during the next six months, and 65% said they were undecided whether they would avoid purchasing vehicles that meet 2007 diesel engine standards.
The previously survey released in July found that only 48% of respondents had planned to purchase trailers over a six-month period. Transport Topics
Initial Jobless Claims Continue Falling
The number of Americans filing initial jobless claims fell by 5,000 to 386,000 in the week ended Oct. 25, the Labor Department reported Thursday.First-time claims have been below the key 400,000 mark for four straight weeks. Most economists consider claims below the 400,000 threshold as a sign of recovery.
Claims would have been lower by at least 5,000 if not for labor disputes in the grocery store and transportation industries in California and other states, a Labor spokesman told Reuters.
The four-week average of claims fell to 388,750 from 393,500 the previous week, the lowest in eight months. Economists view the four-week moving average as a more reliable indicator for the jobless trends.
Labor also said its employment cost index, a broad gauge of what employers pay in wages, salaries and benefits, increased 1% in the July through September period. Transport Topics
Old Dominion’s Profits Rise
Less-than-truckload carrier Old Dominion Freight Line Inc. said Thursday its net income for the third quarter was $9.1 million or 57 cents per share, compared with $6.4 million or 51 cents a year earlier.Revenue from operations increased 18.0% to $176.9 million, the company said in a release.
"We are also encouraged that in spite of the operating disruptions caused during the quarter by Hurricane Isabel and the power blackout in the Northeast and Midwest, which we believe reduced third-quarter operating profit by approximately $400,000, stronger economic activity and increased market share drove record revenues, net income and earnings per share for the company,” Earl Congdon, chairman and chief executive officer, said.
Looking ahead, the company said it expected to earn between $1.67 and $1.73 for the full fiscal year.
Old Dominion is ranked No. 30 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Higher Costs Push Down Waste Management’s Earnings
Waste Management Inc., the largest U.S. trash-collection company, said Thursday its profit for the third quarter was $210 million or 35 cents per share on revenue of $2.98 billion.That compares with a net income of $231 million or 38 cents on revenue of $2.9 billion in the third quarter of 2002.
Waste Management had been expected to earn 37 cents a share in the most recent quarter, Bloomberg reported.
The company said in a release that its total costs rose to $2.54 billion from $2.43 billion. Transport Topics
Frozen Food's Freight Revenue Increases 15%
Temperature-controlled carrier Frozen Food Express Industries Inc. said late Wednesday its third-quarter profit declined to $1.7 million or 10 cents a share, from $3.3 million or 20 cents.However, the company said last year's results included a $4 million tax-related benefit.
"We are definitely seeing better demand for our freight services across the board," said Chairman and Chief Executive Officer Stoney Stubbs Jr. "The increased demand has enabled us to use our fleet more efficiently, but it has not yet allowed us to get meaningful increases in our full-truckload freight rates."
For the most recent quarter, freight revenue increased 15.2% to $101.7 million.
Frozen Food is ranked No. 46 on the 2003 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Stonepath Nets $13.1 Million From Stock Sale
Logistics services company Stonepath Group said Oct. 16 that it completed a private placement of its common stock with institutional investors, for gross proceeds of about $13.1 million.The sale consisted of 5.9 million shares of the common stock at a price of $2.20 per share, a 10% discount to market at date of pricing, it said.
The company said it plans to pay down its existing bank facility and to position it for future acquisitions.
The funding refreshed the company’s $20-million bank facility “and gives us the financial flexibility we need to pursue our acquisition strategy over the course of 2004,” said Chairman and Chief Executive Officer Dennis Pelino. Transport Topics
This story appeared in the Oct. 27 print edition of Transport Topics.