U.S. Xpress wins top diversity award
Three Tennessee trucking companies were among the nine companies chosen by the American Trucking Association (ATA) as recipients of the Diversity Equity and Inclusion (DEI) Change Leader Award for creating a culture of acceptance and belonging for their employees.
The Chattanooga-based U.S. Xpress Enterprises, the Knoxville-based Pilot Co., and the Memphis-based FedEx Ground were picked as DEI winners based on their ability to develop a program, improve an existing program and benchmark a successful culture of acceptance and inclusion.
“ATA has led the charge to make trucking more diverse, and we are proud to recognize these companies for all they are doing to create a positive workplace culture for everyone,” ATA President and CEO Chris Spear said in an announcement of the awards. “It is easy to talk about improving diversity, but these companies do the hard work of walking the walk and for that reason we are happy to honor them with this Change Leader Award.”
The Diversity Equity and Inclusion Change Leader Award is sponsored by TenStreet.
“It is our hope that this inaugural award presented to these nine companies will highlight their innovative leadership, trying to ensure all peoples regardless of gender or ethnicity get an opportunity to enjoy a career at all levels in our industry, and together we’ll get there,” Marilyn Surber, TenStreet transportation advisor, said in a statement about the awards.
Bank account users rise to a record high
The number of Americans who do not have a bank account fell to a record low last year, as the proliferation of online-only banks and an improving economy is bringing more Americans into the traditional financial system.
A new report from the Federal Deposit Insurance Corp. issued Tuesday found that 4.5% of Americans — representing approximately 5.9 million households — were without a bank account in 2021. That’s the lowest level since the FDIC started tracking the data in 2009 and down from 5.4% of Americans in the 2019 survey data.
Coke sales jump 10% in 3rd quarter
Coca-Cola generated better-than-expected earnings as consumers continued to pay higher prices for soft drinks and juices, further evidence that shoppers are willing to keep spending in the face of record inflation and rising interest rates.
The company, whose brands include Sprite and Minute Maid, said Tuesday that third-quarter revenues increased by 10% and profit grew by 14% versus the same period last year.
The biggest driver was a 12% jump in growth linked mostly to raising prices, alongside shifts in the mix of products sold in the quarter. At the same time, the volume of products sold rose by 4%, showing consumers’ willingness to pay more for the company’s products. When Coca-Cola’s rival PepsiCo reported its third-quarter earnings this month, price increases were accompanied by weaker growth in volumes.
Coca-Cola’s results highlighted consumers’ willingness to continue buying their favorite products despite being squeezed by higher prices at the grocery store and the gas pump.
“In the face of these pressures, consumers stayed resilient,” James Quincey, Coca-Cola’s chief executive said on a call with investors. He added later, however, that he saw emerging changes in consumer behavior as “the impact of inflation running ahead of wages is starting to come through.” That led to shoppers putting off purchases of “more discretionary, higher-ticket” items, Quincey said, and seeking out cheaper options for other products.
Google profit gain lowest in two years
Summertime revenue growth at Google’s corporate parent slipped to its slowest pace since the pandemic jarred the economy more than two years ago, with advertisers clamping down on spending and bracing for a potential recession.
Alphabet Inc., which owns an array of smaller technology companies in addition to Google, on Tuesday posted revenue of $69.1 billion for the July-September quarter, a 6% increase from the same time last year.
It marked the first time Alphabet’s year-over-year quarterly revenue has risen by less than 10% since the April-June period of 2020. At that time, the advertisers that generate most of its revenue pulled in their reins because of the economic uncertainty during the pandemic’s early months.
Google’s ad sales weakened even more dramatically than Alphabet’s overall revenue. Ad revenue totaled $54.5 billion, up just 2.5% from the same time last year. In another sign of more challenging times, YouTube’s quarterly ad sales decreased 2% from last year, the first time the video site’s revenue has regressed since Google began disclosing its results in 2019.
The revenue slowdown also created a drag on Alphabet’s profits. The Mountain View, California, company earned $13.9 billion, $1.06 per share, a 27% drop from the same time last year. Both revenue and earnings per share fell below projections of analysts surveyed by FactSet.
GM profits rise 37% in quarter
General Motors’ third-quarter net profit rose 36.6% as vehicle sales began to rebound from persistent parts supply chain troubles.
The Detroit automaker said it made $3.3 billion from July through September, compared with $2.42 billion a year earlier. The increase was fueled largely by a 24% sales increase for the quarter in the U.S., by far GM’s most profitable market.
The company said it is seeing improved supplies of computer chips, allowing it to build more vehicles and increase inventory on dealer lots. Excluding one-time items, GM made $2.25 per share, beating estimates of $1.88. GM reiterated its full-year guidance for full-year net income of $9.6 billion and $11.2 billion. GM still expects pretax income of $13 billion to $15 billion.
Consumer confidence takes a hit in October
U.S. consumers were less confident this month as concerns about inflation took hold again after receding in recent months.
The Conference Board reported Tuesday that its consumer confidence index fell to 102.5 in October, from 107.8 in September. Consumers had grown more confident in the two previous months as rising gas prices moderated slightly even as prices for other essential items remained elevated.
The business research group’s present situation index — which measures consumers’ assessment of current business and labor market conditions — fell sharply to 138.9 from 150.2 in September. Consumers’ outlook for the near-term also declined.