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THE BIZBLOG
Breaking business news from around Arkansas
Editor: Roby Brock |
roby@talkbusiness.net
Monday, February 08, 2010 - 5:43:18 PM
WAL-MART TIGHTENS DELIVERY DEADLINES; COULD HELP ARK. BEST
A move by Wal-Mart Stores Inc. to tighten deadlines will create changes throughout national and global retail supply channels and could prove a benefit for trucking companies like Fort Smith-based ABF Freight System, according to a recent report by The Journal of Commerce.
"Wal-Mart is at it again. Striving to improve supply chain efficiency, the world's largest retailer is imposing requirements that, as many shippers and carriers scramble to comply, will have a far-reaching industry impact," the trade publication noted in a press release calling attention to its story. "Transportation carriers across the country are offering special help to get suppliers' goods to Wal-Mart. Other retailers are watching closely as the company - known for its grasp and control of its supply chain - further tightens management of its distribution channels."
Wal-Mart began its strongest delivery requirements yet for U.S. suppliers on Feb. 1. The new system imposes new deadlines and strict penalties for suppliers, according to the article.
"As of last week, U.S. companies shipping goods to Wal-Mart distribution centers must begin to deliver within a four-day window leading up to a "must arrive by date," or what the company calls its MABD," noted the story.
Trucking companies "that can meet the commitments" could see improved traffic, according to the story, which mentions Averitt Express and ABF Freight System as two trucking companies with web sites focused on MABD compliance.
The story reports: "ABF created an online MABD compliance planner that helps shippers plan production and shipping schedules for each order based on its MABD. The system can automatically flag Wal-Mart shipments for expedited service."
Michael Tilley with our content partner, The City Wire, has more in this report.
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Monday, February 08, 2010 - 2:50:14 PM
P.A.M. TRANSPORTATION LOSES $4 MILLION IN Q4
P.A.M. Transportation posted a $3.9 million fourth quarter loss bringing its annual loss to $10.84 million.
One year ago, the Tontitown-based trucking firm lost $11.4 million in the fourth quarter and $18.7 million for the full fiscal year.
P.A.M. was pounded by tough economic conditions and cited an "ovecapacity" in the industry for its struggles. It also reported a $4.2 million write-down on company assets during the quarter.
The company saw its revenue decline last year. In the fourth quarter, P.A.M.'s revenue fell to $80.4 million compared to $84 million in the previous year's fourth quarter.
Of the four major publicly traded trucking firms based in Arkansas, all but J.B. Hunt lost money in the fourth quarter. J.B. Hunt's profits were substantially down from the previous year, however.
P.A.M. also completed a rebranding of several of its subsidiaries and operations under the P.A.M. Transport moniker in late 2009.
"The benefits of communicating the services we provide in terms that customers, both existing and potential, understand outweigh any residual benefit of continued operations in the original names of the companies acquired, such as Choctaw Express, Inc., Decker Transport Co., Inc., Allen Freight Services, Inc., and P.A.M. Dedicated Services, Inc.," said CEO Daniel Cushman.
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Monday, February 08, 2010 - 12:12:30 PM
WINDSTREAM CLOSES ON NUVOX DEAL
Windstream Corp. announced that it has completed its acquisition of NuVox, Inc., a privately held competitive local exchange carrier based in Greenville, S.C., in a transaction valued at approximately $647 million. The deal was originally announced in November 2009.
Little Rock-based Windstream issued approximately 18.7 million shares of its common stock valued at roughly $187 million, based on Windstream's closing stock price on Feb. 5, 2010, and paid approximately $280 million in cash as part of the transaction. Windstream also repaid approximately $180 million of NuVox's total outstanding net debt. Windstream financed the acquisition through proceeds from a debt offering in December.
Windstream acquired approximately 90,000 business customers in markets in 16 states across the southeast and midwest in the deal.
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Sunday, February 07, 2010 - 11:54:48 PM
EAT, DRINK AND PASS THE BUDGET
It's the stuff of legend: Every two years when the General Assembly is in session, roving bands of legislators and lobbyists sweep through Little Rock's top eateries, stripping them bare of every last steak dinner and glass of whiskey like a plague of locusts wearing American flag lapel pins.
In the past, the restaurateurs at least had every other year to recover - but with this month's inauguration of even-year budget sessions, it can only mean one thing: Harried bar staffs and maitre-Ds frantically ordering up more Kobe beef and Maker's Mark, right?
Well... not so much.
"We don't have to stock up on anything [in particular] that I know of, just a little more of everything" says Doe's Eat Place manager Carmen Battisto. "It'll be business as usual. We look forward to them coming in."
Sitting in the iconic downtown restaurant's care-worn main dining room, surrounded by political paraphernalia, Battisto also put a stake in the heart of another bit of conventional wisdom: Namely, steaks.
"They like cheeseburger sand the fish plate," she said of the typical lunch of legislators and lobbyists. "They're not fussy. They want to come over, eat a cheeseburger, and go back to work."
That said, they do eat a passel of ground beef; her kitchen staff will go through 160 to 200 patties in a typical day. And some of their regulars have very specific tastes in how their burgers are cooked and dressed - so specific, Battisto said, the kitchen staff can often tell who's there by what orders come in.
She does acknowledge a bump up in sales during the session, but she theorized that it wasn't all due to the Ledge - some people, she said, eat at Doe's just to catch a glimpse of the legislators and lobbyists. Sort of like bird watching, one supposes.
"There's a lot of glad-handing," Battisto noted.
All right, if Doe's - with its famous back room and reputation as an insider's hot spot - doesn't have to make special preparations for a session, what about someplace a little more swanky? Say, the bar at the Capital Hotel.
"Not really," says manager Robert Rowley. "When we closed before the renovation this was a local hotspot, and now it's becoming that way again."
With a back-bar that's regularly stocked with high-end liquor, the Capital Bar & Grill doesn't have to make special orders to accommodate legislators. It does see a fair number of politicos during the session, usually in early afternoon. That does mean a bump in business, said Rowley, "but not in a dramatic way."
"We see them anywhere between four and six o'clock," he said. "It's been a real privilege to get to know them and take care of them."
At the very least, does having a legislator or lobbyist at your table mean the server can expect a better gratuity than usual? Over at Doe's, one of the wait staff - a perky young woman with curly blond tresses - said she did see better tips. And manager Battisto suggested that they all tipped "according to their budget."
Well, since they're coming to town for budgeting purposes, maybe they'll work a little extra in for their servers during the session.
(Editor's Note: Talk Business contributor Eric Francis is the author of this story. You can reach him by email at eric.francis@yahoo.com.)
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Friday, February 05, 2010 - 7:06:22 AM
TYSON FOODS TURNS FIRST QUARTER PROFIT
Tyson Foods turned a first quarter profit as rising sales and profitable margins in all four major divisions of its business boosted the meat company's bottom line.
The Springdale-based protein giant earned $160 million on quarterly revenue of $6.64 billion, a solid improvement from one year ago when Tyson Foods lost $102 million on sales of $6.52 billion.
Division breakdowns and margins included:
- Chicken operating income $78 million, or 3.2% of sales
- Beef operating income $119 million, or 4.4% of sales
- Pork operating income $62 million, or 7.6% of sales
- Prepared Foods operating income $55 million, or 7.7% of sales
"Beef, pork and prepared foods continued to execute well, and chicken began to show the improvement we've been working toward for more than a year," said newly-installed CEO Donnie Smith.
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Thursday, February 04, 2010 - 4:21:47 PM
BALDOR TAKES EARNINGS HIT IN Q4, 2009
Baldor Electric Co. saw its sales tumble and its profits gashed in the fourth quarter of 2009.
The Fort Smith-based manufacturer of electric motors, transmissions and generators reported net income of $3.0 million on sales of $356.4 million in the fourth quarter of 2009. A one-time tax charge impacted the company's bottom line by $3.0 million. One year ago, Baldor posted an $18.6 million profit on revenue of $474 million.
For the full year 2009, Baldor saw sales top $1.52 billion and net earnings totaled $59.8 million. In 2008, Baldor's revenue topped $1.96 billion and profits cleared $99.4 million.
"2009 was a very difficult year," said CEO John McFarland. "We believe that during the year we made many decisions that will benefit us in the long-term. During 2009, we invested in both new products and new customers, improved productivity in our plants, and reduced costs by $115 million on an annual basis. As a result of these investments and an improving incoming order rate, we expect an increase in sales and earnings in 2010."
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Thursday, February 04, 2010 - 3:10:02 PM
ONE TO WATCH: ROCKFISH INTERACTIVE
As we do every year, Talk Business works to find companies headquartered or located in Arkansas who are making significant contributions to the economy. Our "One To Watch" award recognizes and honors a company or operation in our state that shows the promise to positively change the Arkansas' business landscape.
Five to 10 years from now, could this company transform our state economy or have an even larger impact on jobs, infrastructure and business influence? These are the guidelines that we consider when making our selection. We don't solicit our finalists; we identify them and do our research.
It's with great pride that we announce this year's "One To Watch" award winner: Rogers-based Rockfish Interactive.
Rockfish is a technology firm with an incredible entrepreneurial bent that has worked for companies such as Walmart, Tyson Foods, Johnson & Johnson, and the Twilight marketing colossus. Learn more about Rockfish's local, national and international efforts and awards, and find out why we chose this tremendous growth company as this year's winner.
Click here to read our full coverage of Rockfish in the latest edition of Talk Business Quarterly .
Previous Talk Business "One To Watch" winners:
2009 - Argenta Development Group
2008 - Dassault Falcon Jet
2007 - Baldor Electric
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Thursday, February 04, 2010 - 10:57:46 AM
CELLA PROPOSES SPECTACULAR FILLY MATCH-UP AT OAKLAWN
Oaklawn owner Charles Cella announced a special offer he's made that could turn the horse racing world on its head.
Today, Cella revealed that he's made an offer to have undefeated fillies Rachel Alexandra and Zenyatta race at the April 3rd Apple Blossom handicap at Oaklawn.
Rachel Alexandra and Zenyatta were the two horses in the running for the "Horse of the Year" in 2009. Rachel Alexandra won the Preakness Stakes in 2009, while Zenyatta won the Breeders' Cup Classic.
Cella said his offer will provide for a $5 million purse and he's personally guaranteed to make up the difference if gambling wagers don't produce enough purse money.
This should be fun, if the two horses' owners agree to a match of the decade and it could be a big boon for tourism in Hot Springs.
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