Business news in brief

Thursday, August 14, 2014

Camden plant gets slice of missile pact

Lockheed Martin's Camden plant will assist in fulfilling a $124 million government contract awarded this month by the Missile Defense Agency.

Ground components for the Terminal High Altitude Area Defense (THAAD) missile system will be manufactured as part of the contract. Camden's Lockheed Martin plant employs approximately 460.

Work under the contract is expected to begin in 2016. Lockheed Martin was unable to detail the amount of work or the jobs created specifically at the Camden plant as a result of the contract.

"Lockheed Martin continues its strong relationship with the Camden community, but it is too soon to talk about jobs at specific sites at this time," a company spokesman said.

Facilities in Dallas, Alabama and California will also help fulfill the contract, which expires in 2017.

-- Chris Bahn

Branson's Silver Dollar City to add park

Silver Dollar City in Branson said Wednesday it's adding an $8 million development called Fireman's Landing, which is expected to open in spring 2015.

The attraction covers nearly 2 acres and will house six rides and four play zones. The theme will be an 1880s volunteer fire department recruitment fair.

Lisa Rau, a company spokesman, said the Geyser Gulch attraction, a gigantic playground with a treehouse and other climbing features, was closed in early August and will be demolished to make way for the new attraction. Fireman's Landing will have thrill rides and rides for smaller children, she said.

The company also said the Silver Dollar City's Star-Spangled Summer will feature the Harlem Globetrotters performing three shows a day for six weeks starting in June 2015. Silver Dollar City's parent company, Herschend Family Entertainment, acquired the Globetrotters last year.

The amusement park's most recent capital expansion was the wooden roller coaster Outlaw Run that was added in 2013 and cost $10 million.

-- John Magsam

Retailers stock up to hedge dock strike

Merchandise being imported via U.S. cargo containers is expected to reach an all-time record level in August as retailers stock up in advance of the Christmas shopping season. Fast and efficient shipping for Christmas and back-to-school is more critical this year as West Coast dockworkers are operating without a contract with management, according to a recent release from the National Retail Federation.

Negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union are ongoing. The contract expired July 1.

"Retailers are making sure they are stocked up so shoppers won't be affected regardless of what happens at the ports," federation Vice President for Supply Chain and Customs Policy Jonathan Gold said.

Import volume at U.S. ports covered by the Global Port Tracker report is expected to total 1.54 million containers this month. It's the highest monthly volume since the federation began tracking import volume in 2000. A previous record of 1.53 million was set in July. Unusually high numbers were also reported in the spring in anticipation of this summer's contract talks.

-- Cyd King

Deere sees slower sales, trims outlook

MOLINE, Ill. -- Deere's profit slumped 15 percent in the third quarter, and the farming equipment maker, seeing weak sales ahead, trimmed its outlook and will cut production.

Chairman and Chief Executive Officer Samuel Allen said Wednesday that the production cuts will put production "in line with demand for our agricultural products."

With commodity prices falling, the U.S. Department of Agriculture in February predicted that farm income in 2014 would sink to levels not seen in four years.

That is cutting into the spending power of farmers and hitting companies like Deere, the world's biggest farm equipment supplier.

Deere is now forecasting equipment sales will fall about 6 percent for fiscal 2014. Its prior guidance was for a 4 percent decline. For the fourth quarter, the company estimates equipment sales will drop approximately 8 percent.

For the three months ended July 31, Deere earned $850.7 million, or $2.33 per share. That topped expectations of $2.20 per share, according to a poll by FactSet. But that's still down significantly from last year, when the company earned $996.5 million, or $2.56 per share.

Revenue from equipment sales fell to $8.72 billion from $9.32 billion, with equipment sales for the U.S. and Canada dropping 8 percent. Revenue declined to $9.5 billion from $10.01 billion.

The company's stock fell $1.99, or 2.3 percent, to close Wednesday at $84.49.

-- The Associated Press

Amid closings, Penney opens N.Y. store

J.C. Penney will open a 124,000-square-foot location in New York's Brooklyn borough on Aug. 29 while continuing with a plan to close 33 underperforming stores across the country.

The move is part of a comeback effort for the long-struggling company, which reports its latest results today. J.C. Penney showed signs of recovery in its previous earnings in May, posting its first quarterly sales gain since 2011. Still, the chain continues to lose money, and a broader retail slump has hurt its prospects.

Craig Sterling, an analyst at EVA Dimensions in New York, says J.C. Penney probably isn't ready to be opening new stores. It has too many as it is.

"Their store closings aren't happening fast enough," he said. "J.C. Penney is the last company that should be spending money on growth."

The new location is in the Gateway Center mall, not far from Kennedy Airport and Jamaica Bay. The center includes other large chains such as Target Corp. and Home Depot Inc. Wal-Mart Stores Inc. tried and failed to open a store the area in 2012 amid local opposition to the retailer.

"We saw the need to fill a void in this high-potential market," said Joseph Thomas, a spokesman for the Plano, Texas- based chain.

-- Bloomberg News

Business on 08/14/2014