LITTLE ROCK — QUOTE OF THE DAY
“Some of the pricing and merchandising issues in Wal-Mart ran deeper than we initially expected, and they require a response that will take time to see results.”
Mike Duke,
president and chief executive officer of Wal-Mart stores Inc., in a statement Article, 1D
2 at Murphy sell $500,000 in stock
Two executives at Murphy Oil Corp. netted more than $500,000 each in stock transactions last week, according to filings Tuesday with the Securities and Exchange Commission.
Caroline Theus, a director with the El Dorado-based company, sold 2,000 shares of Murphy stock for about $73.76 per share and sold another 5,000 shares at about $73.66 per share. In total, she realized $515,848.
Henry Heithaus, a Murphy vice president, acquired 5,000 shares for $19.43 each and acquired another 5,000 shares for $21.17 each. He then sold all 10,000 shares for about $74.01 each, to net $538,018.
Retry union case, ABF Freight asks
ABF Freight System Inc. filed an appeal brief Friday in the 8th Circuit Court of Appeals in St. Louis as part of an effort to retry a case involving the International Brotherhood of Teamsters.
The Fort Smith trucking company said Tuesday that a ruling on the matter involving a labor agreement binding the work force at ABF and competitor YRC Worldwide Inc. is expected to follow oral arguments to be held before a three-judge panel in mid-April.
Judge Susan Webber Wright of the U.S. District Court for the Eastern District of Arkansas on Dec. 20 initially ruled that federal court was not the correct venue to hear a labor dispute. She added that the union’s purported breach of contract with ABF was another matter not included in her ruling.
ABF is arguing that the labor union along with subsidiaries of YRC Worldwide Inc. of Overland Park, Kan., violated an umbrella labor agreement when the union granted certain concessions to YRC.
The Northwest Arkansas business said an unfair competitive advantage was created by concessions that included cuts in wages and suspension of pension payments.
ABF is seeking damages and to have the disputed amendments to YRC’s labor agreement declared null and void.
Big airlines try to raise fares again
DALLAS - Major U.S. airlines are trying to revive fare increases for high-end tickets after failing to impose bigger price increases last week.
The move comes as airlines worry about the prospect of higher jet fuel prices.
American, United, Continental and US Airways raised prices Monday by $20 to $60 per round trip on some tickets favored by business travelers.
Delta Air Lines, the last holdout among the largest so called network airlines, matched the increase Tuesday, making it more likely to stick.
If even one major airline refuses to go along, fare increases can collapse. Last week a Delta-led effort to raise high-end tickets by $40 to $120 per round trip failed when US Airways first matched the increase and then abandoned it. Such a reversal could still happen again this week.
The airlines are dealing with roughly a 50 percent increase in prices for jet fuel in the past year.
American Airlines spokesman Tim Smith confirmed that his airline raised prices at midday Monday, adding that he believed American was the first carrier to do so.
Delta and US Airways also confirmed matching the increase. Fare watchers said United and Continental raised prices, too, but parent United Continental Holdings Inc.
did not comment immediately.
This week’s increases cover first-class seats, economy seats that can instantly be upgraded to first-class, and so called walk-up fares - tickets bought the day of travel.
Such seats are believed to be a small portion of tickets sold by airlines, but they command very high prices.
Barnes & Noble sees net income slip
NEW YORK - Book seller Barnes & Noble’s third quarter revenue rose, but its net income fell 25 percent as it continued to invest in its online operations and Nook e-readers, the company said Tuesday.
Barnes & Noble also said it was suspending its quarterly dividend, and it doesn’t plan to forecast its fourth quarter or full-year earnings because of the effect of last week’s bankruptcy filing by Borders Group.
The company said its quarterly net income fell to $60.6 million, or $1 per share, from $80.4 million, or $1.38 per share. Analysts expected $1.13 per share, according to FactSet.
Revenue rose 7 percent to $2.33 billion. The company said its sales at stores open at least a year rose 7.3 percent, beating its forecast for a 5 percent to 7 percent increase.
Barnes & Noble’s shares fell $2.67, or 14.4 percent, to close at $15.94.
The company blamed bad weather for a 2.2 percent drop in revenue at its college bookstores open at least a year.
Both Barnes & Noble and Borders have been hit hard by rising book sales by discounters and online.
Medtronic to lay off up to 2,000
WASHINGTON - Medtronic, the world’s largest medical device maker, said Tuesday that it will lay off up to 2,000 workers as part of a restructuring effort to make up for anemic sales of its implants.
The company said the cuts are aimed at achieving “long-term sustainable growth” and will reduce its 41,000-person work force by 4 to 5 percent. The company did not offer specifics on where the cuts would be made, but said a charge is expected in the fourth quarter
“We’re looking at the infrastructure across the organization to see where we can be more productive,” said Chief Financial Officer Gary Ellis. Medtronic’s last layoffs were in 2009, when it eliminated more than 1,500 positions.
Medtronic shares fell $1.06, or 2.6 percent, to close at $40.21.
Outgoing Chief Executive Bill Hawkins explained that growth in the device sector has fallen from 10-15 percent a decade ago, to low-single digits.
In late December, Medtronic announced that Hawkins will step down in April after three years leading the company. During his tenure the company has faced weakening sales of its products, because of safety recalls and recession-linked job losses that have reduced the number of insured Americans able to receive its devices.
Business, Pages 26 on 02/23/2011