Business news in brief

QUOTE OF THE DAY

“We think hiring will be more subdued in the second quarter as the economy weathers a consumer spending slowdown and sequestration job cuts.”

Julia Coronado, a BNP Paribas economist Article, 1D

Southwestern Energy reports profit

Southwestern Energy Co. reported Thursday a first-quarter profit of $127.5 million, or 36 cents per share, up from $107.7 million, or 31 cents per share, in the same period a year ago.

Southwestern had a noncash unrealized loss of $30.8 million, which lowered the Houston-based company’s net income.

The company’s adjusted net income was $146 million, or 42 cents per share, for the period that ended March 31. Southwestern’s adjusted net income for the first quarter of 2012 was $106.4 million, or 30 cents per share.

Southwestern’s total operating revenue for the quarter was $734 million, up from $655 million in 2012.

The company said it had 102 wells producing natural gas in Arkansas in the first quarter.

Southwestern said the joint venture it announced earlier this year for the Lower Smackover Brown Dense formation has not yet been reached. The company said that “while an agreement may be reached with the original party, Southwestern has engaged in discussions with several other interested parties.”

Southwestern will hold a teleconference today at 9 a.m. to discuss its first-quarter results. The phone number for the conference is (977) 407-8035.

Fort Smith report says job growth slow

While March economic indicators for Fort Smith Metropolitan Statistical Area were mixed, there are signs of improvement, according to a report by an economist.

Kermit Kuehn, director of the Center for Business Research and Economic Development at the University of Arkansas at Fort Smith, said in a release this week that the report showed total nonfarm employment for the statistical area was 117,500 - 700 more jobs than March 2012. The statistical area includes Sebastian, Crawford and Franklin counties in Arkansas, and Le Flore and Sequoyah counties in Oklahoma.

“The jobs picture continues to improve, but it’s painful to watch,” Kuehn said. He noted manufacturing jobs gained ground in the second half of 2012 but seem to be slacking off during the first three months of 2013.

Residential building activity was level in March, with 23 residential building permits for the month, the same as in 2012.

March home sales for the statistical area were down 3.6 percent from the same period last year, and down nearly 5 percent for the first three months of 2013. The average selling price for homes was $128,836, more than $15,000 above the average selling price for March 2012.

Airport traffic continued to decline when compared with last year, according to the report, suggesting business consumers are feeling constrained. Passenger traffic was down 8 percent compared with 2012.

15-year fixed rate is lowest since 1991

WASHINGTON - The average U.S. rate on the 15-year fixed mortgage fell to a record low last week, and the rate on the 30-year fixed loan declined. Cheaper mortgages have encouraged more home buying and refinancing.

Mortgage buyer Freddie Mac, the Federal Home Loan Mortgage Corp., said Thursday that the average rate for the 15-year fixed mortgage slipped to 2.56 percent. That’s the lowest on records dating to 1991. It fell from 2.61 percent last week, the previous record.

The rate on the 30-year loan declined to 3.35 percent from 3.40 percent last week. That’s near the average rate of 3.31 percent reached in November, the lowest on records dating back to 1971.

Low mortgage rates have helped sustain a housing recovery that began last year. Home sales and construction are up from a year ago, and prices are rising in most markets.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for 30-year mortgages edged down to 0.7 point from 0.8 point last week. The fee for 15-year loans was unchanged at 0.7 point.

U.S. agency shuts down tour-bus firm

The U.S. Transportation Department shut down a Niagara Falls, N.Y., sightseeing company, declaring its drivers and buses “an imminent hazard to public safety.”

The Federal Motor Carrier Safety Administration order to cease all operations applies to Coach USA Tour Inc., a small fleet operator, the agency said in a statement Thursday. The company isn’t affiliated with the Coach USA Inc. of Paramus, N.J., which operates Megabus.com.

The Niagara Falls company wasn’t testing its drivers for drug or alcohol use and wasn’t properly maintaining its vehicles, agency investigators found.

Business, Pages 30 on 05/03/2013

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