Rob Black's Transport Market Roundup For April 25 (BNI, JBLU, LEA, PCAR)

Truck maker Paccar (PCAR) reported earnings of $342 million up from a year-ago profit of $274 million. Net sales totaled $3.85 billion in the three months ended March 31, up from a year-ago equivalent total of $3.33 billion in the same period a year earlier. The company also lifted its quarterly dividend by 20%.

Prudential cut Lear Corp. (LEA) to underweight and lowered its price target to $16. The firm is saying current valuation is stretched based on short to medium-term outlook. The broker told clients it believes the recent rally in Lear shares is "likely unsustainable" and that short- and long-term headwinds are approaching.

Aircraft maker Airbus is in discussions with its airlines about possibly having a standing room "seat". If it was used, passengers would be propped against a padded backboard, held in place with a harness and would only be used on short-haul flights like an island-hopping route in Japan. Standing room seats would allow up to 853 passengers, compared to about 500 passengers now.

Burlington Northern Santa Fe (BNI) said income rose to $410 million up from $321 million in the first quarter of 2005. Revenue at the railroad operator rose 16% in the three months ended March 31 to $3.46 billion from $2.98 billion.

JetBlue Airways Corp. (JBLU) lost $32 million in the first quarter, after earning $6 million in the year earlier period. Revenue rose 31.4% to $490 million. CEO David Neeleman said "As we face what might be the 'new normal' for fuel prices, we have developed a comprehensive 'Return to Profitability' plan that includes right-sizing capacity, revenue enhancements and cost reductions." The company is deferring 12 aircraft deliveries and will sell at least two, and up to five, existing aircraft. The company is expecting a profit in the second quarter but a loss for the full year.