Friday, February 17, 2006

Market balanced, but buyers wary of surcharges and consolidation

Capacity for less-than-truckload (LTL) service is expected to remain balanced going forward but there is increasing concern from buyers and shippers that base rates and fuel surcharges are becoming intertwined, causing an overall cost increase for LTL services.
A recent quarterly survey from market analyst Bear Stearns found 63% of shippers expected LTL capacity to remain steady for the next 12 months, up from 49% the previous quarter. And the percentage of shippers who expect capacity to tighten (23%) is less than half of what it was a year ago (47%) and almost half of what the quarter before (40%) was, a sign that shippers are more comfortable with capacity levels today. Full story here......

Tuesday, February 14, 2006

Four Truck Drivers Named Goodyear Highway Hero Finalists

As finalists for Goodyear's North America Highway Hero Award, three professional truck drivers battled flames to pull victims to safety in separate accidents and another driver saved a mother and her baby from oncoming traffic as they lay on a wet and dark Florida Turnpike.
Truck drivers from Casselberry, Fla.; Ashford, Ala.; Conover, Ohio; and North Troy, Vt., were named finalists today for trucking's most prestigious award for heroism.
"We are indebted to truck drivers across the United States and Canada who keep America rolling," said Steve McClellan, vice president for commercial tire systems for The Goodyear Tire & Rubber Company. "In this, the Goodyear Highway Hero Award's 23rd year, it was especially difficult to select just four truck drivers who placed themselves in harm's way to save someone else. Full stoy here........

YRC restates earnings for quarter and year

YRC Worldwide Inc. has lowered its previously reported earnings per share for the fourth quarter and all of fiscal 2005 because of the treatment of foreign currency accounting for Reimer Express, a Canadian subsidiary of YRC's Roadway Express unit.
In a Monday filing with the Securities and Exchange Commission, Overland Park-based YRC Worldwide said that it revised its earnings per share for the fourth quarter to $1.30, down from the $1.34 it had reported on Jan. 26. The revised figure for all of fiscal 2005 is $5.07 a share, down from the previously reported $5.12 a share.
The company also said it had lowered its adjusted earnings per share from the previously reported $1.39 for the fourth quarter to $1.37 and from $5.28 a share for the year to $5.25.
In the SEC filing, the company said that it had made the revision to other nonoperating expenses when finalizing its consolidated financial statements and that the revision had no impact on operating income. The company also said it has corrected its method of accounting for the currency entries "and does not expect this change to impact future earnings."
The company also revised its gross capital expenditures for 2005 to $305 million, down from the $350 million estimate it provided during its Jan. 27 earnings conference call. When including USF gross capital expenditures for the all of 2005, YRC Worldwide had total gross capital expenditures of $380 million rather than the $425 million estimate provided on the earnings call, the company said in the SEC filing.
The company said that it still expects first-quarter earnings of $1 to $1.05 a share and full-year earnings of $6.15 to $6.30 a year. Analysts surveyed by Thomson First Call reported consensus earnings estimates of $1.06 a share for the first quarter and $6.11 a share for all of fiscal 2006.

Gast new head of New Penn

A subsidiary of Overland Park, KS-based YRC Worldwide – has named Steven Gast president & CEO of New Penn Motor Express, based in Lebanon, PA.
Gast joined New Penn in 1997 and most recently served as vp-corporate planning and vp-finance & administration. Prior to joining New Penn, Gast held a variety of executive positions with other regional transportation providers in the Northeast.
YRC Regional Transportation is comprised of New Penn Motor Express and the USF companies -- USF Holland, USF Reddaway, USF Bestway and USF Glen Moore – focused on next-day, second-day and time-sensitive markets.