P.M. Executive Briefing - Feb. 14
This Afternoon's Headlines:
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Truckers Reach Deal but Walkout Continues in Orlando
Independent truck drivers working on an Orlando International Airport construction site said Sunday they are staying off the job until they get better pay. They currently have work brokers working with large companies or the government; a number of the drivers believe brokers, to whom drivers must pay fees and areithholding money.
The Rinker drivers have to give Rinker a broker's fee and purchase insurance and diesel from Rinker, they say. A contract is expected this week. Orlando Sentinel Online (02/14/00); Youngblood, E. Garrett
KLLM Shareholder Seeks Talks With Firm on Possible Buyout
Prime Inc. President Robert Low, who holds a 13.17% stake in KLLM Transport Services, said in a filing with the Securities and Exchange Commission that he will "pursue exploratory discussions" regarding KLLM. Included in the discussions, which might also involve at least one KLLM principal shareholder, could be a possible sale or merger or a change in KLLM's charter, management, or structure. Journal of Commerce (02/14/00) P. 11Teamsters Approve Strike as Part of AWG Dispute
Associated Wholesale Grocers' Teamsters employees okayed a strike if the company outsources trucking and warehousing in Kansas City, Kan., and Springfield, Mo. Union jobs would be cut by 450 in Kansas City and close to 700 in Springfield, and 300 nonunion positions, such as clerical and production staff, would be dropped as well.The union intends to put the heat on AWG's grocer members by printing cards on which union members and families and friends can list their names and amount of weekly spending at the store. The cards would be given to store managers with a warning that the participant will boycott the store for good if a strike occurs. The union would also picket distribution sites.
AWG claims the outsourcing would save the cooperative $43 million over the next five years and asset sales would free up some $10 million.
The announcement of the outsourcing plans was made on Feb. 1, as is required by federal notice requirements, during talks with Teamster officials.
However, Thomas Marshall, a lawyer for Teamsters Local 955, said it appears the announcement was made during the talks in an attempt to bring about a wildcat strike, which might have enabled AWG to contract out the work because the union would have broken its contract. If that was the intention of AWG, the union could claim the company was not bargaining in good faith, said Bob Jacobi, executive director of the Labor-Management Council of Greater Kansas City. Kansas City Business Journal Online (02/14/00); Guest, Christina
Volvo Reports Sales and Earnings Increases as it Focuses on Commercial Vehicles
Volvo said its net income rose 83% to $3.8 billion in 1999; leaving out sales of the auto division, which was sold to Ford Motor, sales increased 9% to $14.6 billion. Leaving out one-time items, income per share fell to 12.40 kronor, or $1.44, from 14 kronor.CEO Leif Johansson said the company's effort to concentrate on commercial vehicles is meeting with success and that it hopes the European Union makes an antitrust ruling on the planned Scania acquisition by March 23.
For the truck business area, operating margin rose 0.8 percentage points to 5.6% and operating profit was $454.9 million, up 28%. Volvo's share of the U.S. heavy truck market fell 0.8 percentage points to 10.7% as trouble keeping up with demand eclipsed the 17% rise in U.S. truck deliveries.
The board proposed paying a cash dividend of 82 percent per share and said it will request shareholder approval for a share repurchase to be used to pay for future deals. Associated Press (02/14/00)
Big Rig Slowdown
West Virginia says its efforts to reduce the speed of trucks down Sandstone Mountain on Interstate 64 and down Cheat Lake Mountain on I-68 has brought about a dramatic speed reduction, and escape ramps that once saw a runaway truck every five days now are needed once in 12 days. The state built a required pull-off on Cheat Lake Mountain and plans another on Sandstone Mountain. MSNBC Online (02/14/00)World Watch: Europe
As evidence appears that European Competition Commissioner Mario Monti may turn down Volvo's plan to acquire fellow Swedish truck manufacturer Scania, the prime minister of Sweden has requested a meeting this week with Monti. Wall Street Journal (02/14/00) P. A17; Oyama, David I.Chief Executive, Vice President to Leave Asche Transportation
Asche Transportation Services Chairman and CEO Larry L. Asche and Vice President and Secretary Diane L. Asche are leaving the company. Until replacements for the Asches are appointed, management will be taken over by an executive committee of outside directors. Journal of Commerce Online (02/14/00)© copyright 2000 INFORMATION, INC. Terms of Service
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