LITTLE ROCK — QUOTE OF THE DAY “I’d say we’ve gotten through the toughest period we’re going to see in the low-water period.” Mike Petersen, U.S. Army Corps of Engineers spokesman about a stretch of the Mississippi River near St. Louis Article, 1D
Loss grows at Penney as sales skid
NEW YORK - J.C. Penney reported a loss and plunging sales for its fiscal fourth quarter as the department store chain’s plan to scale back most coupons and sales events has continued to turn off shoppers.
The results mark a full year of losses under Chief Executive Officer Ron Johnson, who took on the role in November 2011 to overhaul every aspect of Penney’s business.
The company, based in Plano, Texas, said Wednesday after markets closed that it lost $552 million, or $2.51 per share, for the period ended Feb. 2. That compares with a loss of $87 million, or 41 cents per share, in the year-ago period.
Revenue dropped 28.4 percent to $3.88 billion.
Analysts were expecting a loss of 23 cents on revenue of $4.08 billion.
Revenue at stores opened at least a year dropped 31.7 percent.
For the year, Penney’s lost $985 million, or $4.49 per share, compared with a loss of $152 million, or 70 cents per share, in the previous year. Revenue dropped 24.8 percent to $12.98 billion from the previous year’s $17.26 billion.
Fed sees interest-rate rise as positive
Federal Reserve Chairman Ben Bernanke said Wednesday that recent increases in some interest rates may signal the economy is gaining vigor.
“The fact that interest rates have gone up a bit is actually indicative of a stronger economy,” Bernanke said in Washington in response to questions from members of the House Financial Services Committee. That indicates the Fed’s stimulus is working, he said.
Bernanke also said the central bank’s easing policies are helping to improve demand for homes and cars, and that the housing market is recovering. He was continuing his semi annual testimony to Congress after speaking Tuesday in the Senate.
The world’s largest economy has shown signs that it will resume growth after gross domestic product unexpectedly shrank 0.1 percent in the fourth quarter. Reports Wednesday showed that orders for U.S. durable goods excluding transportation gear jumped in January by the most in a year and contracts to buy previously owned homes climbed more than forecast.
“We are getting some traction in the housing market, in automobiles and other durable goods,” Bernanke said.
Ryanair blocked again in bid for rival
BRUSSELS - Ryanair’s $909 million bid for Aer Lingus was blocked by the European Union for a second time Wednesday after regulators decided it would increase fares and reduce choice on flights from Ireland.
Merging the two Dublin-based airlines would have created a monopoly or a near-monopoly on 46 routes from Ireland, the European Commission said in a statement.
“The acquisition of Aer Lingus by Ryanair would have most likely led to higher fares,” EU Competition Commissioner Joaquin Almunia said in the statement. Ryanair’s concessions “were simply inadequate to solve the very serious competition problems which this acquisition would have created.”
Ryanair, Europe’s largest low-fare carrier, owns about 30 percent of Aer Lingus and in June renewed its attempt to buy the rest after two prior takeover efforts failed.
- Bloomberg NewsGM to ramp up production of plug-ins
General Motors Co. is planning this year to build as many as 36,000 Chevrolet Volt and other plug-in hybrids, 20 percent more than it sold in 2012, two people familiar with the effort said.
GM is planning to build 1,500 to 3,000 of the plug-in vehicles a month, said the sources, who didn’t want to be identified because the target isn’t public. GM sold about 30,000 Volt and similar Opel Ampera cars in 2012, said Jim Cain, a company spokesman, who declined to give a target for this year.
The Volt has struggled to compete against other alternative-power vehicles such as Toyota Motor Corp.’s Prius.
GM originally touted the Volt’s gasoline-and-electric system as the technology of the future and forecast global Volt sales of 60,000 in 2012, before settling for half that number.
The plug-in Volt can travel 38 miles on electric power before a gasoline engine engages to recharge the battery.
U.S. sales of the Volt more than tripled last year to 23,461.
- Bloomberg NewsFirm locks out union, cites sabotage
PORTLAND, Ore. - A Pacific Northwest grain-terminal owner imposed a lockout on longshoremen Wednesday after saying an “independent former FBI investigator” determined a union leader sabotaged company equipment at the height of contentious labor problems in December.
United Grain Corp., part of the Japanese conglomerate Mitsui & Co., said nonunion replacement workers will operate its Vancouver, Wash., export terminal for an “indefinite” period. The company said it fired the union leader, whom it described as a member of the bargaining team of Local 4 of the International Longshore and Warehouse Union but did not name.
The union called the company’s allegations unfounded, and locked-out longshoremen immediately picketed outside the terminal.
LR agency named nonprofit of year
Little Rock-based Economics Arkansas, which trains educators to teach economics, was named the Nonprofit Organization of the Year by Arkansas Business on Tuesday night during the Business of the Year awards.
Founded in 1962, Economics Arkansas promotes economic literacy in Arkansas. It trains kindergarten to 12thgrade teachers how to incorporate principles of economics and personal finance into classroom lessons.
“Increasing the economic and financial literacy of our population will not only impact students as they each seek their own American Dream, but it will also impact the state’s economic development opportunities,” said Sue Owens, Economics Arkansas’ executive director.
Economics Arkansas also received a $2,500 check presented by AT&T for winning the award.
The Business of the Year awards are sponsored annually by Arkansas Business Publishing Group of Little Rock.
Business, Pages 26 on 02/28/2013