MHT Companies Impacted by Tornadoes Are Recovering - Fontaine Trailer, TSE Brakes and Webb Wheel Hit Hardest

Birmingham, Ala. (May 3, 2011) — Several Marmon Highway Technologies (MHT) companies in Alabama were impacted by the tornadoes that tore through the state on Wednesday, April 27. Fontaine Trailer Company’s flagship manufacturing facility in Haleyville lost power and sustained significant structural damage to its north side and roof. Repairs are underway, and one production line was brought back into operation today, with the other two scheduled to start up tomorrow. The headquarters and manufacturing campus of Webb Wheel Aftermarket, Webb Wheel OEM, Webb Wheel Severe Duty and TSE Brakes in Cullman also lost power, but new backup generators have been brought online.

All MHT employees survived the storms, although some lost loved ones, including a TSE Brakes employee whose two young sons were killed. Many employees’ homes and other property were damaged or destroyed.

“I’m deeply saddened by the tragic loss of life, as well as the unprecedented property damage these storms have caused,” said Kelly Dier, MHT president. “My heart goes out to everyone across the South who was affected by the storms. On a personal level, I’m thankful that, by and large, the MHT family is safe. A number of our employees have sustained personal property damage, and we’re working directly to assist these team members. We’re extremely fortunate to have multiple plants across Alabama, Tennessee, North Carolina and South Carolina that were largely unharmed.”

Fontaine Trailer’s platform trailer manufacturing plant in Haleyville, a landmark since 1964, was the hardest hit of the MHT facilities. Although the facility sustained structural damage, including the loss of its roof, the manufacturing equipment inside remains in good condition and the finished trailers on-site were unharmed. The north wall and roof have been temporarily repaired and production resumed today. The company expects permanent repairs to be complete in about a month.

“It’s unbelievable what people can do when they pull together,” said John Craig, president, Fontaine Trailer Company. “The plant looks really good now. We’re running two shifts to catch up on production. Some customers may see a slight delay in order delivery short-term, but we’re working hard to meet our delivery commitments and our customers’ needs.”

At the Brake and Wheel Ends Group campus in Cullman, a tornado passed within 800 to 1,000 yards of the TSE and Webb Wheel facilities, but did not cause any damage. The storms knocked out transmission lines from the nearby nuclear power plant, causing the campus to lose power for a projected seven to nine days. By Friday, Webb Wheel and TSE had brought auxiliary power generators online to power non-manufacturing operations. Three more very large portable generators were brought in over the weekend to supply power to the production facilities. They are currently powering the Webb Wheel Aftermarket plant. Main power returned to the Webb Wheel Severe Service facility Monday. TSE is headquartered in Cullman, but its manufacturing plant is located elsewhere and was unaffected by the storm.

“We may have a couple of small hiccups over a few days, but we should be able to maintain our service levels for our customers,” said J.T. Weis, president, MHT Brake and Wheel Ends Group.

Fontaine Fifth Wheel in Trussville, Fontaine Trailer’s Springville and Jasper manufacturing facilities, and the MHT headquarters in Birmingham were untouched by the storms.

About Marmon Highway Technologies

Marmon Highway Technologies (MHT), a Berkshire Hathaway company, is one of 11 sectors of The Marmon Group, an international association of about 140 business units that operate independently within diverse business sectors.

MHT consists of 13 independently operated companies serving customers in the automotive aftermarket, commercial truck, heavy-duty trailer and undercarriage markets worldwide. MHT companies include Fontaine Fifth Wheel, Fontaine Modification Company, Fontaine Spray Suppression, Fontaine Trailer Company, Marmon-Herrington, MHT − Europe, MHT − South America, Perfection, Triangle Suspension Systems, TSE Brakes, Webb Wheel Aftermarket, Webb Wheel OEM and Webb Wheel Severe Service.

All MHT companies are dedicated to building the best products, being the low-cost producer of those products, providing customers with the best service and support, and investing in leading-edge technology to benefit their customers. MHT companies are leaders in every market segment they serve.
To learn more about MHT, visit http://www.mht.bz/.


Fontaine Trailer’s flagship manufacturing facility in Haleyville, Ala., lost its roof and sustained structural damage in an April 27 tornado. The crumpled metal in the foreground of this photo was a portion of the facility’s roof.




Although Fontaine Trailer’s Haleyville, Ala., plant lost its roof to a tornado on April 27, the manufacturing equipment inside remains in good condition and production resumed today (May 3).



North American Trailer Sales, LLC Expands in Southern California with Acquisition of Quality Fleet Repair

North American Trailer LLC, Salt Lake City, Utah http://www.northamericantrailer.com/ , has announced the acquisition of Quality Fleet Repair, Inc., Fontana, California.  The purchase agreement with North American Trailer, LLC includes all Quality Fleet Repair assets and the retention of personnel.  This acquisition is effective May 1, 2011.

In a joint statement at the time of the acquisition closing, former QFR owners John Austin and Frank Altholtz said, "We welcome North American Trailer to this venture, one that will be of significant benefit to our customers and to our marketplace.  The unique resources that it will bring to this new business enterprise adds tremendous strength to a growing company for a growing market."  Austin and Altholtz will remain with the company, to engineer the growth and expansion of this important customer service operation.

North American Trailers is a Fontaine PartSource Partner and a Fontaine Trailer Key Dealer. With this press release they announced that further expansion is planned later this year. 

For further information, contact:
Dave Ward - Vice President
1-909-357-3076
dave@northamericantrailer.com

Aftermath of Tornadoes is Incredible

Concord, AL

Massive clean up continues with many volunteers doing great works for the people of Alabama.  The attached link will take you to several pictorial view of the devastation.  Thanks to power companies from Indiana, Ohio, Illinois  and others assisting Alabama Power,  many now have electricity and can get back to their lives and businesses. It will take years to rebuild, but it will be done and Alabama will be good as new. Alabamians are people of strong resolve. Thank you for your prayers, concerns and help.  PartSource is excited to serve you soon.

Pratt City, AL (near Birmingham)

Devastating Tornadoes Hit Alabama and Other Southeastern States

Alabama is digging out from the devastating tornadoes this past Wednesday. Volunteers coming from all over the country. PartSource was down and without power on Thursday and Friday. No damage however and we will be open to serve on Monday. Our thoughts and prayers go out to those who have suffered so much.

UPS Earnings Jump

NEW YORK (AP) — UPS is raising its full-year earnings forecast after first-quarter net income rose 66 percent as customers paid more to move packages faster.

United Parcel Service Inc. said Tuesday it now expects to earn $4.15 to $4.40 per share this year, implying growth of 17 to 24 percent from 2010. Its previous estimate was $4.12 to $4.35 per share.

The Atlanta company earned $885 million, or 88 cents per share, up 66 percent from a year earlier when it earned $533 million, or 53 cents per share. Revenue jumped 7 percent to $12.58 billion. FactSet says analysts expected a profit of 84 cents per share on sales $12.71 billion.

UPS' freight segment results grew the fastest in the first three months of the year, with adjusted operating profit up 44 percent. The freight segments at both UPS and FedEx were struggling last year as the trucking industry had too many trucks competing for too little freight. In the U.S. domestic package unit, which was recently reorganized, adjusted operating profit jumped 29 percent.

In the U.S., UPS said more customers opted for faster service as its premium product growth outpaced ground. Customers had been favoring cheaper, slower options to save money in the recession. Revenue per package rose 5 percent, driven by higher prices and fuel surcharges.

Wake Up, Stand Up, Rise Above

Wake Up, Stand Up, Rise Above

Commodity Prices Are On the Rise - $$$

The commodities crunch is corporate America's dirty little secret. Even as consumers open their wallets once again and sales volume improves, inflationary pressure is creeping in. It's hitting companies small and large. And even giant corporations with plenty of heft to negotiate the best possible rates from suppliers are feeling the pinch. Procter & Gamble's (PG) chief financial officer, Jon Moeller, told us on Squawk Box that the consumer-products giant saw a 160-basis-point impact from higher input costs late last year. For now, P&G has offset that rise with its productivity and cost-saving programs.


That can't continue indefinitely, of course. Commodities prices continue to skyrocket -- last year crude-oil prices were up 17.3%, sugar climbed 25.5%, and wheat rose 49.3% -- and eventually will start seriously chomping into corporate profits. (Not that investors have noticed: Thomson Reuters has analysts forecasting a 13.4% climb in corporate profits in 2011.) "Either the revenue picture will start increasing more rapidly over the next few quarters, and that will offset higher costs, or profits will get hit," says Ashwani Kaul, head of his own investment advisory firm. "Something has to give."


Some companies are taking matters into their own hands and acting aggressively to push higher costs on to consumers. Cooper Tire & Rubber (CTB) just jacked up its prices for the second time in six months, boosting them 6.5% in November. The company says it expects its raw-materials costs to climb another 2% to 4% in the fourth quarter.  http://finance.fortune.cnn.com/tag/becky-quick/
Excerpt from Fortune Magazine Article by Becky Quick  January 21, 2010