LITTLE ROCK — QUOTE OF THE DAY
“We simply could not ignore the extremely difficult economic realities across Europe. It had to be a leaner budget.”
Herman Van Rompuy, European Council President Article,1D
Weekly U.S. rig count decreases by 5
HOUSTON - Oilfield services company Baker Hughes Inc. says the number of rigs actively exploring for oil and natural gas in the U.S. dropped by 5 this week to 1,759.
The Houston-based company said in its weekly report Friday that 1,330 rigs were actively exploring for oil and 425 for gas. Four were listed as miscellaneous. A year ago, Baker Hughes counted 1,989 working rigs.
Of the major oil- and gas-producing states, Louisiana gained five rigs, Pennsylvania rose by two and Colorado increased by one. New Mexico lost three rigs, North Dakota and Texas each decreased by two and Alaska, West Virginia and Wyoming dropped one each. Arkansas, California and Oklahoma remained unchanged.
Entergy’s quarterly profit nearly doubles
NEW ORLEANS - Electric power company Entergy Corp. said Friday that its fourth-quarter net income nearly doubled, helped by lower income tax expenses.
The New Orleans-based utility earned $296.3 million, or $1.66 per share, in the three months ended Dec. 31, up from $154.1 million, or 87 cents per share, a year ago.
Excluding one-time items, the company said it posted an adjusted profit of $1.72 per share for the recent quarter.
Revenue fell 2 percent to $2.44 billion from $2.49 billion.
The company said profit at its utility business jumped 65 percent to $279.7 million, largely as a result of lower income tax expense stemming from a settlement with the Internal Revenue Service that was completed in 2012.
Revenue at the business also rose as a result of pricing adjustments related to regulatory actions and investments, Entergy said.
For the full year 2013, the company earned $846.7 million, or $4.76 per share, down from $1.35 billion, or $7.55 per share, in 2011. Revenue fell to $10.3 billion from $11.23 billion.
Entergy shares fell 49 cents to close at $64.47.
- The Associated Press
Consumers’ nonrevolving debt surges
Consumer borrowing in the U.S. rose in December for a fifth straight month as nonrevolving credit surged by the most in 11 years.
The $14.6 billion gain followed a revised $15.9 billion advance in November, the Federal Reserve said.
Nonrevolving debt, such as financing for college tuition and auto purchases, jumped $18.2 billion in December.
Revolving debt, which includes credit cards, fell by $3.6 billion, the most since July, after a $573.8 million increase in November.
Rising home values and job creation are spurring household borrowing, laying the foundation for an acceleration in the consumer spending that makes up 70 percent of the U.S. economy. Cheaper financing is supporting purchases of big-ticket items such as new cars.
The report doesn’t track debt secured by real estate, such as home mortgages and home equity lines of credit.
Agency considers wider Pontiac recall
DETROIT - U.S. safety regulators are looking at expanding a recall of Pontiac G6 midsize cars to include up to 550,000 vehicles.
About 8,000 of the cars were recalled by General Motors in 2009 because the brake lights and cruise control didn’t work properly.
But the recall affected only cars made in January of 2005.
On Friday, the U.S. National Highway Traffic Safety Administration said in documents posted on its website that it’s studying whether all G6s from the 2005 through 2009 model years should be added to the recall.
The safety agency says it has received 212 complaints from consumers that brake lights won’t come on when the pedal is pressed, or the lights come on for no reason. Some of the complaints also say the cruise control disengages or does not work.
No crashes or injuries have been reported from the problem, and GM says it is cooperating with the investigation.
In the 2009 recall, GM traced the problem to corrosion in a wiring connector. Dealers were to fix it by putting a lubricant on the connector to prevent corrosion. But complaints persisted from people with G6s from additional model years.
- The Associated Press
Airbus: Battery switch to skirt 787 woes
TOULOUSE, France - Airbus is developing plans to use standard batteries in its new A350 model and jettison the lithium-ion power source that grounded Boeing’s rival 787 Dreamliner, two people familiar with the plans said.
The step is being considered to avoid any similar problems or certification issues with the A350, said the people, who declined to be identified because the discussions are private. No final decision on the matter has been reached, they said.
The 787 fleet was grounded on Jan. 16 following a fire on a Japan Airlines Co. plane that originated in a lithium ion battery. Airbus has said that the electrical design of the A350 and its lithium batteries would be more conservative than in the Dreamliner.
National Transportation Safety Board Chairman Deborah Hersman said Thursday that assumptions in certifying the 787s batteries should be reconsidered after investigators found that a short-circuit in one cell had set off a chain reaction, destroying the unit.
- Bloomberg News
Struggles in Asia slow McDonald’s sales
NEW YORK - McDonald’s said Friday that a key sales figure dropped again in January as the world’s biggest hamburger chain struggled with continued weakness in Japan and supply chain issues in China.
The Oak Brook, Ill.-based company said global sales at restaurants open at least 13 months dropped 1.9 percent for the month.
McDonald’s has been struggling amid growing competition and challenging economic conditions around the world. Chief Executive Officer Don Thompson had warned that sales were trending negative for January.
In the region including Asia, the Middle East and Africa, McDonald’s said its sales sank 9.5 percent in January.
McDonald’s has been struggling in Japan, where it said customers have been eating at home more often since the earthquake and tsunami in 2011.
The company said the timing of Chinese New Year and reports that chicken producers were using unapproved levels of antibiotics hurt sales in China.
McDonald’s shares rose 24 cents to close at $94.87.
- The Associated Press
Business, Pages 28 on 02/09/2013