HDAW 2006 UPDATE             SEGMENT NEWS

REGULATORY REPORT         SUPPLIER NEWS                  

ECONOMIC TRENDS              ASSOCIATION NEWS            

FACTOID

HDAW 2006 UPDATE

HDAW Exhibitor Registration Deadline Extended to Aug. 8, 2005

HDDA members interested in exhibiting in the trade show as part of Heavy Duty Aftermarket Week (HDAW), Jan. 23-27, 2006 at The Mirage Hotel in Las Vegas, should register by the new Aug. 8 deadline. Exhibitors signed by that date will be included in the first allocation of exhibit space. 

The exhibit space is nearly 70 percent sold, and companies such as Baldwin Filters, Timken Corporation, Hella, Inc., Dana Corporation, ESCO, S&S Truck Parts, Dayton Parts, Bendix and others have already secured space.

To register, visit www.hdaw.org, or call William T. Glasgow, Sr., at 708-226-1300. For Information on the show and other HDAW events, contact Lee Kadrich at 301-654-6664 or e-mail lee.kadrich@aftermarket.org.

SEGMENT NEWS

Reminder: HDDA Members Eligible for Discounted Fee for NTEA Economic Outlook Conference

HDDA has arranged for members to receive the National Truck Equipment Association (NTEA) member discount for the 2006 NTEA Economic Outlook Conference (EOC). Set for Sept. 21, 2005 at the Hyatt Regency Dearborn, the EOC provides an excellent forum for learning what leading economists are predicting for the commercial truck and transportation equipment industry. Presenters will discuss the trends, leading indicators and other issues impacting business planning in this full-day conference.

Register for the EOC by Aug. 26 and take advantage of early-bird conference discounts of $199 for members versus $275 for non-members. On the registration form, indicate HDDA membership to receive the discount. After Aug. 26, the fee increases to $250 for members and $325 for non-members. A free CD-ROM featuring the day�s presentations � including data and analyses of truck markets, truck equipment markets and end-use markets � will be available to attendees.
For more information on the presenters and topics, and a registration form, visit www.ntea.com/is/eoc_2006.asp. 

REGULATORY REPORT

Comprehensive Federal Energy Bill Includes Diesel Emissions Reduction Funds

Congress passed the comprehensive energy bill last week. The bill includes legislation (the Diesel Emissions Reduction Act of 2005) that provides $1 billion over the next five years in grants and loans to public, public-private and private fleets to help offset the expense of retrofitting diesel powered off-road equipment in order to reduce emissions. Also included in the legislation is an $11.5 billion package of tax incentives that offers a mix of renewable energy proposals and breaks for the gas, oil, coal and nuclear industries.    

ATA Releases Its Scorecard on New Highway Bill

The American Trucking Associations (ATA) and ATA president Bill Graves said the six-year, $286.4 billion highway spending bill approved by Congress late last week addresses a host of the trucking industry�s critical needs.

Despite support from ATA and the Federal Motor Carrier Safety Administration, the new highway spending bill does not codify the current hours of service rules, which set driver work and rest limits. However, the bill includes language to clarify the agricultural exemption to the federal hours of service regulations. The bill will make the exemption permanent in federal law, provides standard definitions of agricultural commodities and farm supplies to be used by commercial transporters of agricultural commodities during the planting and harvesting season in each state.

Especially important for truck drivers and others sharing the road is a new funding source for law enforcement in each of the 50 states to enforce traffic violations by other motorists around large trucks. ATA also expects improvement in the safety of intermodal shipping container chassis as equipment owners, generally ocean carriers and railroads, will now be responsible for their equipment meeting highway safety operating standards.

The industry can also now electronically check the safety records of prospective truck drivers, a key ATA safety priority.

ATA also successfully blocked a mandatory fuel surcharge that would have increased consumer costs for everything shipped by truck.

Source: Truckinginfo.com, Aug. 1, 2005

Truck Fatalities Up 3.1 Percent in 2004

Fatalities related to accidents involving large trucks increased 3.1 percent to 5,190 in 2004, according to a preliminary traffic safety annual assessment conducted by the National Highway Traffic Safety Administration (NHTSA).

Overall fatality rates dropped to 1.46 per 100 million vehicle miles traveled in 2004, compared with 1.48 in 2003.

�Drivers are safer today on our nation�s highways than they have ever been, in part because of the safer cars, higher safety belt use and stronger safety laws that this department has helped champion,� said secretary of transportation Norman Y. Mineta.

Source: Fleet Owner, Aug. 2, 2005

SUPPLIER NEWS

ArvinMeritor Earnings Fall 10 Percent

Strong demand for heavy-truck components boosted year-on-year sales 15 percent to $2.4 billion for ArvinMeritor Inc. during the company�s fiscal third quarter, which ended June 30. But restructuring charges resulted in a 10 percent drop in net income to $46 million for the Troy, Mich.-based supplier. The company plans more plant closures over the next two years. It also says it now expects to finalize the sale of its aftermarket parts business, originally planned for the current year, sometime in fiscal year 2006. ArvinMeritor predicts commercial truck production will be a little higher in North America and a little lower in Europe than it forecast earlier this year. It reiterates previous full-year earnings guidance of $1.40-$1.60 per diluted share, excluding special items.

Source: AutoBeat Daily, July 29, 2005

Yellow Roadway's Second-Quarter Earnings Surge

Yellow Roadway Corp. reported last week that its first-quarter net income rose 62 percent to $76.1 million or $1.38 a share, compared with $46.9 million or 97 cents a year earlier. The increases were based in part on higher rates amid an expanding economy. The company had said June 24 it expected its second quarter earnings to be at the �high end� of $1.35 to $1.40 per share.

Yellow Roadway said its operating revenue rose to $2.09 billion from $1.67 billion a year earlier. In late May, Yellow Roadway completed its $1.37 billion purchase of LTL carrier USF Corp. for $1.37 billion.

The company reported increased earnings at all its business units, including Yellow Transportation, Roadway Express and Meridian IQ.

Yellow Transportation reported its revenue rose 7.4 percent to $851 million, while income before interest and taxes rose 50 percent to $68.5 million.

Source: Transport Topics, July 29, 2005

ECONOMIC TRENDS

ATA Reports June Truck Tonnage Index Fell 0.2 Percent

Overall for-hire trucking freight volumes fell 0.2 percent in June on a seasonally adjusted basis, American Trucking Associations (ATA) said last week. The level followed a revised 0.7 percent increase in May. The truck tonnage index (TTI) for June fell to 114.8 for the month, from 115 in May. June�s index was 0.3 percent higher than June 2004, while May�s had been 1.2 percent higher than a year earlier.

On a non-seasonally adjusted basis the tonnage index rose 3.2 percent from May to 120.7. May�s non-seasonally adjusted level was revised to 116.9. For the first half of the year, the TTI was 2.7 percent higher than the same period last year, but was below ATA�s 3 percent to 3.5 percent forecast.

ATA chief economist Bob Costello said the tonnage drop was unexpected because most economic indicators rose during the four-week period. Production of some heavy products like steel and chemicals, however, experienced weakness that may have contributed to diminished freight volumes, he said.

Costello said truckload carriers, which represent more than 95 percent of for-hire tonnage, experienced the bulk of the freight softness, but said both truckload and less-than-truckload carriers continued to report large revenue gains in recent months.

Source: Transport Topics, July 27, 2005

Heavy-Truck Sales Increase 38.2 Percent in June

Heavy-duty truck sales continue to outshine last year. June saw an increase of 38.2 percent to 23,751 units compared with 17,192 a year earlier. Sales of mid-range, medium- and heavy-duty trucks, Classes 4 through 8, totaled 46,855 units in the month, up 24.5 percent from June 2004.

Total truck sales, including Classes 1 through 3, increased 25.2 percent from a year earlier to 997,140 units. Sales of Class 1 through 3 trucks totaled 950,285 units for the month, up 25.3 percent from June 2004.

Freightliner led in Class 8 sales for June. The company's sales totaled 6,893 units, up 42.8 percent from a year earlier.

Source: Automotive News, July 27, 2005

ASSOCIATION NEWS

Financial Symposium to Discuss Business Valuations and Shareholder Liquidity

Gain insight in how to make your business more valuable as it relates to the aftermarket industry at one of four breakout sessions on Sept. 7, at the Aftermarket Financial Symposium: Leveraging for Growth in Chicago, Ill.

Maximizing Business Value and Liquidity question and answer session will be led by Dan Smith, president of Capstone Financial Group. Smith has extensive hands-on experience as an entrepreneur and investment banker, and he has owned, operated, built and sold several substantial enterprises, including a $78 million holding company. 

�Everybody wants to know how to make their business more valuable,� Smith said. �If you don�t, you shouldn�t be in business.�

Topics during the session will include current capital market conditions; valuation 101: what�s my company worth?; factors that affect valuation multiples; preparing your company for a capital market transaction; the capital market transaction process; and common capital market transaction mistakes.

Maximizing Business Value and Liquidity will be held Wednesday, Sept. 7 at 2:45 p.m. and again at 4 p.m. It will run concurrently with three other breakout sessions: The Financial Benefits of Standards Based eBusiness in the Aftermarket, Managing the Volatility of Employee Benefits and Tax Planning: The Latest in Tax Planning Strategies.

The symposium will be held at the Hyatt Regency O�Hare in Chicago on Wednesday, Sept. 7 and Thursday, Sept. 8. For more information, contact Barbara Clark at 301-654-6664 or e-mail barbara.clark@aftermarket.org. To register online, visit www.aftermarket.org.

Support for Right to Repair Continues to Climb

It was another good week for the Motor Vehicle Owners� Right to Repair Act (H.R. 2048), as five new legislators added their names to the growing list of legislators supporting competition in the automotive aftermarket. Reps. James Moran, D-Va.; Major Owens, D-N.Y.; Christopher Smith, R-N.J.; Pete Fortney Stark, D-Calif.; and Madeleine Bordallo, D-Guam, became cosponsors, bringing the total sponsor count to 36. AAIA members are urged to send thank you notes to their elected officials that are supporting our industry and its customers, the motoring public.

For the Legislative Action Center, visit www.aftermarket.org.

AAIA Announces Four Major Staff Promotions

AAIA has promoted four staff veterans to new positions within the association.

• Rich White, vice president of marketing and member relations, has been promoted to the position of senior vice president, marketing and member relations. White has been with AAIA since it was established in 1999. White oversees the marketing, public relations, media relations, publications, Web sites and most recently the Car Care Council and the �Be Car Care Aware� consumer education campaign. 
• Michael Barratt, CMP, senior director of meetings, has been promoted to the position of vice president, meetings. Barratt has been with AAIA for nine years. Barratt oversees all meetings and conferences for AAIA and its segments, committees and managed associations, including: Automotive Aftermarket Products Expo (AAPEX), Global Automotive Aftermarket Symposium (GAAS), Automotive Communication Council (ACC), Aftermarket eForum� and Women�s Board. His responsibilities include meeting planning, site selection, contract negotiation and on-site logistics. 
• Dan Kaplan, senior director of market research, has been promoted to the position of vice president, market research. Kaplan has been with AAIA for more than five years. He oversees the association�s market research department and the production and marketing of its wide range of research reports and studies, including the flagship research publication, the Aftermarket Factbook. Kaplan serves as staff liaison to the Tool and Equipment segment and the AAIA Market Research Committee. 
• Dedra Selby, executive assistant and manager, human resources, has been promoted to the position of director, administration. Selby has been with the association for more than nine years. In her role, she manages all human resources activities for AAIA, assists the president and works closely with the AAIA Board of Directors and Executive Committee. She oversees all human resources functions, including payroll, employee benefits, recruitment and retention, and staff policies and procedures. Selby also serves as office manager and oversees a number of the association's administrative staff.

WELCOME NEW AAIA MEMBERS

July 29-Aug. 4, 2005

Baker Marketing Group, Clinton, Miss. (Aftermarket Distribution)
Global Recruiters of Boca Raton, Boca Raton, Fla. (Aftermarket Distribution)
Intradin Co., Ltd., Taipei Hsien, Taiwan (Aftermarket Distribution)
Trans-Global Channel, Inc., Westford, Mass. (Aftermarket Distribution)
D & P Int�l Trading Inc., Monterey Park, Calif. (AIA)
Hytec Automotive, Columbus, Ohio (ERC)
Jobbers Automotive, Inc., Cleveland, Ohio (PBES)
Leading Edge Auto Refinishes, Inc., Tempe, Ariz. (PBES)

FACTOID

The American Trucking Associations has gone �live� with a new �Share the Road� Web site aimed at educating motorists about the safest ways to drive alongside tractor-trailers.

Source: Truckinginfo.com, Aug. 3, 2005