TRAFFIC BRIEFS

TRAFFIC BRIEFS

CUMMINS REPORTS

DECLINE IN EARNINGSCOLUMBUS, Ind. - Cummins Engine Co. earned $8.9 million, or 41 cents a share, on sales of $861.4 million in the first quarter. That compares with earnings of $19.5 million, or $1.61 a share, on revenue of $920.8 million in the comparable quarter of 1988.

The sharp decline in earnings was attributed to a drop in sales of heavy trucks. The company said that first quarter 1990 production of North American heavy-duty trucks was down 23 percent from the same quarter a year ago. Cummins has approximately 50 percent of that market.

RAIL ASSOCIATION SAYS

PROFITABILITY FELL IN '89

WASHINGTON - Even as individual railroads reported first-quarter 1990 results, the industry's association reported that rate compression and inflation eroded Class 1 railroad profitability in 1989.

The Association of American Railroads reported that large carriers that handle 94 percent of inter-city freight traffic had net railway operating income of $1.9 billion last year, a 7.4 percent decline from $2 billion in 1988. Net railway operating income is operating revenue less operating expenses and income tax liabilities.

Freight revenue per ton-mile declined by 1.9 percent to 2.67 cents.

Ordinary income, which includes investment and interest income and interest expense, declined 9 percent to $2 billion, from $2.2 billion a year earlier. Class 1 railroads collectively had a 5.1 percent return on net investment, down from 5.6 percent in 1988.

PLM INTERNATIONAL

BUYS MIAMI FACILITY

SAN FRANCISCO - San Francisco-based PLM International Inc. has acquired a trailer rental facility in Miami.

PLM International acquired the trailer rental facility and fleet of over 500 storage and over-the-road dry freight trailers from Emerald Industrial Leasing Corp., based in Moorestown, N.J.