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Most public less-than-truckload companies’ second-quarter profits fell as fleets were pounded by record diesel prices and flagging economic demand, but some executives said they thought the overall pricing environment had improved, or at least stabilized.

The average price of retail diesel in the United States dipped 4.6 cents last week to $4.718 a gallon, the largest weekly drop in more than six months, the Department of Energy reported.

Saia Inc. on Friday reported that it earned $5.4 million, or 40 cents a share, in the second quarter, down from $10.4 million, or 72 cents, a year ago.

Eastern freight railroad Norfolk Southern Corp. said its second-quarter profit rose 15%, as higher revenue per shipment offset an overall drop in traffic and record fuel prices.

The Environmental Protection Agency said Monday it will award $3.4 million in grants to establish projects using emerging technologies to reduce emissions from the diesel engine fleets.

Forward Air Corp. said its second-quarter profit rose to $12.1 million, or 42 cents a share, from $11.5 million, or 38 cents, a year ago.

Clean Energy Fuels Corp. said two California environmental agencies awarded grants totaling more than $11 million to further the development of natural gas fueling stations and vehicles.

The Environmental Protection Agency issued a nearly 600-page request for public comment on whether it should use existing law to regulate greenhouse gas emissions, a decision one trucking official said was a way to further delay any new regulations until after President Bush leaves office.