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Auto manufacturing woes sink P.A.M. Transportation’s Q2

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P.A.M. Transportation Services (NASDAQ: PTSI) on Thursday reported a net loss of $823,000, 14 cents per share, which includes investments in equity securities. Excluding the investments, the dry-van truckload (TL) carrier lost 43 cents per share. Analysts’ estimates were for a profit of 15 cents per share.

The Tontitown, Arkansas-based carrier reported a 30% year-over-year decline in total revenue to $93 million as truck loads were down 26% and revenue per mile excluding fuel fell 7%. Revenue per truck per week was 23% lower in the quarter at $2,700. The company’s TL division posted a 104% operating ratio, 1,690 basis points worse year-over-year.

P.A.M. Transportation’s key performance indicators

COVID-19-related shutdowns in the auto manufacturing sector, 45% of P.A.M. Transportation’s revenue, were the primary reason for the earnings degradation.

“Our second quarter results reflect the significant financial impact of the temporary winding down of operations by our three largest manufacturing customers in response to COVID-19, with April and May bearing the brunt of that impact with a combined operating loss of $4.6 million during those two months,” stated CFO Allen West.

The company redeployed equipment into the spot market, which it blames for “lower rates” and an increase in empty miles. P.A.M. Transportation’s deadhead percentage increased 500 basis points in the quarter to 11.8%.

The carrier said it saw “normalized levels of profitability” in June as automotive manufacturing came back online, allowing its operating ratio to improve to the low-90% range in June.

“An additional hurdle we faced throughout most of the quarter was that a significant portion of our trailer fleet was loaded with freight that we were unable to deliver due to various receivers being shut down due to COVID-19, essentially removing the trailer from our available pool,” continued West.

The company took further cost actions in April and May, including the furlough and termination of employees.

P.A.M. Transportation ended the quarter with $12.5 million outstanding on its $60 million revolver and $25.7 million in marketable equity securities holdings. The company plans to maintain an average truck fleet age of 1.5 years.

No balance sheet update was provided with the company’s earnings report. The company includes a balance sheet with its quarterly 10-Q filing with the U.S. Securities and Exchange Commission, typically two weeks after its quarterly earnings results are released.

“With the return of automotive production, the increase in general economic activity as we approached the end of the second quarter, and cost reductions recently implemented which have yet to be fully realized, we believe that we are well positioned for a strong recovery as the remainder of the year progresses,” West concluded.

Chairman Matthew Moroun stepped in as interim CEO in May when Dan Cushman retired after 11 years in the role. The announcement came as the hauler was struggling to deal with the second auto production shutdown in less than a year as a result of the pandemic; the first being a six-week strike by the United Auto Workers at its largest customer, General Motors (NYSE: GM).

The Moroun family is the largest shareholder of PTSI’s shares, owning 68% of the company’s stock at the close of 2019. The family patriarch, Manuel “Matty” Moroun, died at the age of 93 on July 13.

Click for more FreightWaves articles by Todd Maiden.

Source: https://www.freightwaves.com/news/auto-manufacturing-woes-sink-pam-transportations-q2

Blockchain

VeChain (VET), DNV’s Blockchain Solution Tapped for Aluminium Traceability

VeChain (VET), DNV’s Blockchain Solution Tapped for Aluminium Traceability

VeChain (VET), DNV’s Blockchain Solution Tapped for Aluminium TraceabilityNorwegian firm, Hydro, has adopted the “Tag.Trace.Trust.” traceability blockchain solution co-developed by VeChain (VET) and DNV. Hydro aims to use the distributed ledger technology (DLT) solution to prove to its clients that its aluminum is produced in accordance with sustainable standards, according to a LedgerInsights report on March 3, 2021. Hydro Taps VeChain (VET) DLT

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VeChain (VET), DNV’s Blockchain Solution Tapped for Aluminium Traceability

VeChain (VET), DNV’s Blockchain Solution Tapped for Aluminium TraceabilityNorwegian firm, Hydro, has adopted the “Tag.Trace.Trust.” traceability blockchain solution co-developed by VeChain (VET) and DNV. Hydro aims to use the distributed ledger technology (DLT) solution to prove to its clients that its aluminum is produced in accordance with sustainable standards, according to a LedgerInsights report on March 3, 2021. Hydro Taps VeChain (VET) DLT

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Trade with the Official CFD Partners of AC Milan
Source: https://btcmanager.com/vechain-vet-dnv-blockchain-aluminium-traceability/

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Supply Chain

Hannah Testani Named as CEO at Intelligent Audit and Adds to Executive Team

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Intelligent Audit's Board of Directors has appointed Hannah Testani as the company’s new CEO along with new appointments at the executive level. Checkout PrimeXBT
Source: https://www.supplychain247.comhttps://www.supplychain247.com/article/hannah_testani_named_as_ceo_at_intelligent_audit_and_adds_to_executive_team

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How New Regulations from the PACT Act Affects the Shipping of Vaping Products

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ProShip takes a closer look at the new regulations from the PACT Act and how they affect the shipping of vaping products. Checkout PrimeXBT
Source: https://www.supplychain247.comhttps://www.supplychain247.com/article/how_new_regulations_from_pact_act_affects_the_shipping_of_vaping_products

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History and Facts about Argon

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What are the noble gases? The noble gas group consists of the elements helium (He), neon (Ne), argon, (Ar), krypton (Kr), xenon, radon (Rn), and organesson (Og). It is the 18th (7A) group in the periodic table of elements. They are known to be odourless, tasteless, colourless, and non-flammable under standard conditions. They are called noble gases because they are already stable, unlike the other elements in the periodic table. They do not create bonds with other atoms to produce new chemical compounds.

Before, these gases are called rare or inert gases. However, it is also found that some of these elements are very abundant in our universe. Because calling them “rare” or “inert” was misleading, the word “noble” was introduced.

Noble gas: Argon and its history

Argon has an atomic number of 18 and an atomic weight of 39.948 atomic mass unit. About 0.93% of the Earth’s atmosphere is occupied by argon. It is a very abundant gas in the air, next to nitrogen and oxygen. From the production of oxygen and nitrogen, argon gas is produced as a by-product. You can also find small traces of argon in Earth’s crust and ocean waters. Argon is the most abundant and cheapest noble gas. Stable isotopes of argon are argon-36, and argon-38 and argon-40. Argon-36 is created by stars and the most common in the universe while over 99% of argon that occurs naturally on Earth is the argon-40.

Lord Rayleigh, an English chemist, and Sir William Ramsay, a Scottish chemist, discovered the argon gas in 1894. It is derived from the Greek word “argos”, meaning idle. However, before argon was fully discovered, Henry Cavendish, an English chemist and physicist, found a chemically less active substance than nitrogen, which is about 1% proportion of air. Then, Lord Rayleigh tried to isolate nitrogen from the air after a century, but it was not pure nitrogen that he isolated as he thought. He discovered that the element has a higher density than nitrogen. Then finally, in 1894, Sir William Ramsay started working with Lord Rayleigh. They collaborated to isolate this gas. After a series of trials and experiments, they proved that they had discovered a new element: argon.

The chemical reactivity of argon

Fluorine is also an element in the periodic table, considered the most reactive element. A French chemist, Henri Moissan, discovered fluorine in 1886. He was also the one who attempted to produce a reaction between argon and fluorine, but he failed.

According to Niels Bohr in 1913, electrons’ distribution in an atom is arranged in successive shells. In the electron configuration, the ideal number of electrons in the atom’s outermost shell must be eight, hence the octet rule. It is the reason why most atoms need to bond with other atoms, except for noble gases. These gases already have eight electrons in their valence or outer shell, making them the most stable gases.

Although argon is considered inert and already stable, it is also discovered that it can form at least one compound: argon fluorohydride (HArF). Leonid Khriachtchev, Mika Pettersson, Nino Runeberg, Jan Lundell, and Markku Räsänen reported this discovery in August 2000. The said compound is only stable at very low temperatures. If the temperature increases, argon fluorohydride tends to decompose. For this reason, the compound has no use in basic scientific research.

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