Mullen Group's Profit Rises 9.6 Percent in 2012

JOC Staff | Feb 21, 2013 12:02PM EST

Mullen Group reported its profit for 2012 was $130.9 million, up 9.6 percent from $119.4 million in 2011.

Annual revenue was a record $1.43 billion, rising 2.9 percent from $1.39 billion in 2011. The year-over-year gain was driven primarily by revenue increases in the first and second quarters of 2012, compared with the same quarters in 2011, which were somewhat offset by a decreased revenues in the third and fourth quarters of 2012, compared with the same quarters in 2011, the transportation company said in a written statement.

Net income in the fourth quarter of 2012 was $21.8 million, falling 54.1 percent from $47.5 million in the fourth quarter of 2011.

Quarterly revenue was $346.1 million, falling 12.2 percent from $394.1 million in the same quarter in the previous year. The decrease in revenue was primarily because of decreased revenue experienced in the oilfield services segment, which reported a $47.7 million reduction in revenue in the fourth quarter of 2012 compared with the same period in 2011.

“What I am particularly pleased with, in addition to our record operating results, is the validation that our business model works very well, as is evidenced in the strength of Mullen Group’s balance sheet, which includes $122.8 million in cash,” said Murray K. Mullen, chairman and CEO, in a written statement.

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Producer Price Index Rises 1.1%

Prices paid to U.S. producers rose 1.1% in September, reflecting an increase in fuel costs, the Labor Department said Thursday.

The producer price index increase followed a 1.7% upturn in August. The so-called core PPI, which excludes food and energy, was unchanged the first time it didn’t increase since October 2011, Labor said.

Economists had forecast a 0.8% increase in the PPI, and a core rate increase of 0.2%, Bloomberg reported.

An increase in the PPI could indicate strong demand for goods, which would mean more shipments for trucking companies. However, if inflation begins to accelerate too quickly, it also could hurt the economy.

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Consumer Confidence Rises in October

Consumer confidence rose in October, according to the Thomson Reuters/University of Michigan consumer sentiment index released Friday.

The month’s preliminary index reading rose to 83.1, the highest since September 2007, from 78.3 the previous month, the survey said.

Economists had forecast the index would fall to 78, Bloomberg reported.

The survey’s index of current conditions asks Americans if they are better off than they were a year ago and if it is a good time to buy big-ticket items.

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Personal Spending Rises for First Time in Three Months

Personal spending rose for the first time in three months, gaining 0.4% in July, the Commerce Department said Thursday.

The upturn followed no change in June. Personal incomes rose 0.3% for a third straight month.

Economists’ median forecast was for a 0.5% increase in spending, Bloomberg reported.

A rise in consumer spending could increase demand for new factory goods and the trucking shipments that get them to stores.

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NAFTA Surface Trade Rises 6.6% in June

Larry Smith/Trans Pixs

Surface trade among the United States, Canada and Mexico rose 6.6% in June from a year ago, the Department of Transportation said Tuesday.

Trade among the North American Free Trade Agreement partners rose to $82.6 billion, DOT’s Bureau of Trade Statistics said in its monthly report.

Month-to-month trade, which is affected by seasonal factors, dropped 1.4% from May.

U.S.-Canada trade rose 5% to $48.4 billion, while U.S.-Mexico trade jumped 8.8% to $34.2 billion.

Truck imports to the United States from the two countries rose 5.7% year-over-year to $27.7 billion. Exports rose 7.6% to $29.9 billion.

Rail imports rose 16.4% to $9.4 billion and exports gained 17.2% to $5.3 billion. Pipeline imports fell 12.5% to $5.5 billion, while exports plunged 33.7% to $675 million.

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Diesel Rises 6.3� to $4.089 in Eighth Gain; Gasoline Price Also Continues to Rise

Bruce Harmon/Trans Pixs

Diesel rose 6.3 cents to $4.089 a gallon, its eighth straight gain and the highest price since mid-April, while gasoline rose again, the Department of Energy said Monday.

Gasoline gained 3.2 cents to $3.776 a gallon, also its eighth straight increase, DOE said following its weekly survey of filling stations.

The diesel increase leaves it 26.9 cents over the same week last year, while gasoline is 14.9 cents over a year ago.

In the past two months diesel has risen 44.1 cents, while gasoline is up 42 cents since early July, according to DOE figures..

Last week, trucking’s main fuel pushed past $4 a gallon for the first time in three months.

Oil, meanwhile, fell for a third day Monday, despite oil companies evacuating Gulf of Mexico rigs as Tropical Storm Isaac moved through the Gulf on a track toward New Orleans, Bloomberg reported.

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Intermodal Traffic Rises 3.6% for Week

Bruce Harmon/Trans Pixs

U.S. intermodal traffic rose 3.6% last week from a year ago, the Association of American Railroads reported.

Container traffic for the week ended Aug. 18 rose 5.5% to 217,643 units, while trailers fell 8.7% to 29,581 units.

Railroad carloads excluding intermodal dropped 2.1% to 293,916 units, AAR said.

Railroad volume is considered an important economic indicator. Intermodal traffic, which tends to be higher-valued merchandise than bulk commodities, uses trains for the long haul and trucks for the shorter distance at either end of the trip.

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Diesel Tops $4 for First Time Since May; Gasoline Rises 2.3� to $3.744 a Gallon

Tom Biery/Trans Pixs

Diesel rose 6.1 cents to $4.026 a gallon, its seventh straight increase and the first time it has topped $4 in three months, the Department of Energy reported.

Gasoline, meanwhile, gained 2.3 cents to $3.744 a gallon, DOE said late Monday following its weekly survey of filling stations.

The diesel increase left trucking’s main fuel 21.6 cents above the same week last year, while gas is now 16.3 cents over a year ago.

Diesel had not topped $4 since May 14, according to DOE records. Gasoline is also at its highest level in three months.

The gains followed higher oil prices, as crude finished the trading day Friday over $96 a barrel, its highest level since mid-May, Bloomberg reported.

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Truck Tonnage Rises 4.1% in July

Tom Biery/Trans Pixs

Truck tonnage increased 4.1 % in July from a year ago, American Trucking Associations said Tuesday.

Tonnage was unchanged from June, ATA reported in its seasonally adjusted for-hire truck tonnage report.

The increase was the most year-over-year since February’s 5.5% upturn. Year to date, tonnage is 3.7% higher than the same period last year.

The not seasonally adjusted index, which represents tonnage actually hauled by fleets, came in at a reading of 119.4, down 2.8% from June. ATA uses the year 2000 as a 100-reading baseline.

“July’s reading reflects an economy that has lost some steam, but hasn’t stalled,” ATA Chief Economist Bob Costello said in a statement.

“Certainly there has been some better economic news recently, but I continue to believe we will see some deceleration in tonnage during the second half of the year,” he added, noting a strong run of tonnage in the comparative August-to-December period last year.

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NAFTA Surface Trade Rises 8.2% in May

Tom Biery/Trans Pixs

Surface trade among the United States, Canada and Mexico rose 8.3% in May from a year ago, the Department of Transportation said Tuesday.

Trade among the North American Free Trade Agreement partners rose to $83.8 billion, DOT’s Bureau of Trade Statistics said in its monthly report.

Month-to-month trade, which is affected by seasonal factors, rose 5% from April. The previous month, March, had been a record, with the trade level topping $85 billion for the first time.

U.S.-Canada trade rose 4% to $48.1 billion, while U.S.-Mexico trade jumped 14.9% to $35.6 billion.

Truck imports to the United States from the two countries rose 12.3% year-over-year to $29.4 billion. Exports rose 11.6% to $30.5 billion.

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Intermodal Volume Rises 5.2% in 2Q, IANA Reports

By Jonathan S. Reiskin, Associate News Editor

This story appears in the Aug. 13 print edition of Transport Topics. Click here to subscribe today.

North American intermodal shipping volumes rose 5.2% during the second quarter, with the domestic segment growing more quickly than import-export business, the Intermodal Association of North America reported.

Industry executives attributed much of the gain to conversion from truck-only transportation.

In an Aug. 6 report, IANA said the three-month tally for containers and trailers was 3.72 million units, up from 3.53 million in the same time last year.

IANA said it was the highest second-quarter volume for international shipping since 2008.

Domestic shipments rose by 6.7%, container volumes soared, but trailers contracted. International container volume gained 3.9%.

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November Truck Tonnage Rises 6% in Biggest Gain Since June

Tom Biery/Trans Pixs

Truck tonnage rose 6% in November from a year ago, the biggest increase since June, American Trucking Associations said Wednesday.

The increase rounds out two years of consecutive year-over-year growth, and followed a 5.7% increase in October. In June, tonnage rose 6.5% year-over-year.

On a monthly basis, November tonnage was 0.3% higher than October, ATA said in its monthly seasonally adjusted for-hire truck tonnage report.

That followed a revised 0.4% month-to-month gain that had originally been reported as a 0.5% increase.

The seasonally adjusted index for November came in at a reading of 116.6, up from 116.3 in October.

The not seasonally adjusted index, which measures actual tonnage, slipped 2.6% to a 115.3 reading.

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Intermodal Traffic Rises 6% for Week

U.S. intermodal traffic increased 6% for the week ended Saturday from a year ago, the Association of American Railroads said.

Container traffic rose 7.9% to 196,782 units, while trailer traffic fell 3.3% to 36,540 units.

Railroad carloads excluding intermodal jumped 11.7% year-over-year to 304,377 units, AAR said in its weekly report.

Railroad volume is considered an important economic indicator. Intermodal traffic, which tends to be higher-valued merchandise than bulk commodities, uses trains for the long haul and trucks for the shorter distance at either end of the trip.

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Intermodal Traffic Rises 3.7% for Week

Bruce Harmon/Trans Pixs

U.S. intermodal traffic rose 3.7% for the week ended Saturday from a year ago, the Association of American Railroads reported.

Container traffic climbed 5.1% to 163,527 units, while trailer traffic declined 3.6% to 27,339 units.

Railroad carloads excluding intermodal rose 4% year-over-year to 265,304 units, AAR said in its weekly report.

Railroad volume is considered an important economic indicator. Intermodal traffic, which tends to be higher-valued merchandise than bulk commodities, uses trains for the long haul and trucks for the shorter distance at either end of the trip.

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Construction Spending Rises in October

Construction spending rose 0.8% in October, the third straight monthly increase, the Commerce Department said Thursday.

The increase followed a 0.2% gain in September, Commerce said.

The October upturn was larger than economists’ forecasts of a 0.3% increase, Bloomberg reported.

Private construction spending climbed 2.3%, while homebuilding spending gained 3.4%.

Public construction spending fell 1.8%. Federal construction spending dropped 5% in October to $26.4 billion, the lowest level since May 2009.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.

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ISM Manufacturing Index Rises to Five-Month High

U.S. manufacturing activity jumped in November, showing continued expansion for a 28th consecutive month, the Institute for Supply Management said Thursday.

ISM’s monthly factory index climbed to a reading of 52.7, a five-month high, from 50.8 in October, the group said in its monthly report. Figures over 50 indicate expansion.

The reading surpassed economists’ projections of a rise to 51.8, Bloomberg reported.

New orders rose 4.3% to 56.7%, the second straight month of growth after three months of contraction.

The prices index rose 4% to 45% and the prices of raw materials fell for a second consecutive month.

ISM’s factory index measures manufacturing components of the economy.

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Industrial Production Rises in October

Industrial production rose 0.7% in October, led by a gain in automobile output, the Federal Reserve said Wednesday.

The increase in output from factories, mines and utilities followed a revised 0.1% decline in September that had originally been reported as a 0.2% gain.

The October reading was higher than economists’ projections of a 0.4% increase, Bloomberg reported.

Factory production, which makes up three-quarters of the total, rose 0.5%, the biggest gain in three months.

Production of automobiles and parts increased 3.1%, while factory production excluding autos rose 0.3%.

Capacity utilization, which measures plant output, rose to 77.8%, its highest level since July 2008, from a revised 77.3% in September.

Manufacturing accounts for about an eighth of the U.S. economy and the factory sector is one of trucking’s largest and most important customers.

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Intermodal Volume Rises 1.4% in Third Quarter

Bruce Harmon/Trans Pixs

Intermodal traffic volume rose 1.4% in the third quarter, the seventh straight quarter of year-over-year gains, the Intermodal Association of North America said.

Domestic container volume climbed 9%, the strongest increase of the year, to 1.27 million units, while trailer volume dipped 0.8% to about 425,000 units, IANA said in a statement.

While rising diesel prices drove freight to trailers during the first half of the year, diesel prices began a decline in the third quarter which may have contributed to the decline in trailer activity in rail service, IANA said.

International container volume declined 2.6% in the quarter to 1.96 million units, IANA said.

Railroad volume is considered an important economic indicator. Intermodal traffic, which tends to be higher-valued merchandise than bulk commodities, uses trains for the long haul and trucks for the shorter distance at either end of the trip.

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Intermodal Traffic Rises 4.6% for Week

U.S. intermodal traffic rose 4.6% for the week ended Oct. 29 from a year ago, the Association of American Railroads said.

Container traffic climbed 5.8% to 209,226 units, while trailer traffic declined 1.6% to 34,548 units.

Railroad carloads excluding intermodal rose 5.2% to 307,900 units, AAR said in its weekly report.

Railroad volume is considered an important economic indicator. Intermodal traffic, which tends to be higher-valued merchandise than bulk commodities, uses trains for the long haul and trucks for the shorter distance at either end of the trip.

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Productivity Rises in Third Quarter

U.S. workers’ productivity increased in the third quarter and labor costs declined, the Labor Department said Thursday.

The 3.1% increase in productivity followed a revised 0.1% dip the previous three months that was previously reported as a 0.7% decline.

Productivity is a measure of how much an employee produces for every hour of work.

Economists had forecast a 3% increase, Bloomberg reported.

Labor costs fell 2.4% after a revised 2.8% gain in the previous quarter that was originally reported as a 3.3% rise.

When worker efficiency improves at a slower pace and labor becomes more expensive, companies may raise prices in order to guard their profits, contributing to more rapid inflation.

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