Looking Forward to 2004

We are off to an exciting and challenging year. The economy appears to be starting a come-back. Overall corporate sales are up 6% from this time last year. The increased sales are very encouraging, but are not coming to us without a fair amount of effort. We have been able to get some rate increases from customers, and this will continue to be one of our top priorities.

The seasonally adjusted truck tonnage index increased over a year ago by 3% showing favorable freight status with a reduction in truck capacity. Capital spending appears to be improving after a severe drop in November. U.S. interest rates are at historically low levels, and the value of the dollar against other major currencies has dropped. The devalued dollar causes U.S. goods to be cheaper on the global market, so the manufacturing industry will likely benefit from increased demand for U.S. exports. This could, in turn, help our industry.

Don’t expect much relief from fuel prices this year. The good news is that the fuel surcharge seems to be widely accepted, and we are getting enough to cover current costs.

Another challenge to us has been the increased cost of equipment. New truck and trailer prices have gone up, due in a large part to a shortage of quality alloy steel. The anticipated emissions controls that will go into effect in 2007 are enticing carriers to pre-buy equipment now, which is creating somewhat of a truck shortage.

We anticipate a strong economic year and think that ATS and its various companies are well positioned to take advantage of the opportunities this year will bring.

Rollie Anderson, President & CEO, Anderson Trucking Service, Inc.

"Rolling Along" presents thoughts from a member of the ATS Management Team.

CAN’T KEEP A GOOD MAN DOWN
ATS Contractor, Sims Goodman, is at it again. On February 11, 2004, Sims was at a truck stop in Texarkana, Texas. He noticed a driver in a truck that was parked in the lot. The driver looked as if he wasn’t feeling well. Sims contacted the local authorities who in turn came out to check on the driver. That driver passed away later that day.

ATS received a call from the widow a few weeks later. She was trying to get in touch with the nice driver who had stopped to help a stranger. She was grateful for Sims’ assistance to her husband.

Sims, we are proud of you and our other ATS drivers acting as outstanding representatives of our industry while on the road. Thank you!