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Wal-Mart memo speaks volumes Sunday, Oct 30, 2005 By Roby Brock A memo from Susan Chambers, Wal-Mart's executive vice president for Benefits, explains that she and a 15-member team evaluated Wal-Mart's current benefits offering through three lenses - cost trends, associate satisfaction, and public reputation - and are now recommending revisions to the company's benefits strategy. Some suggestions include adding health clinics in stores, restructuring the retirement program, and redesigning benefits to attract a healthier, more productive workforce. Critics of Wal-Mart leaped on the memo highlighting a number of direct assessments revealed in the document. In the memo, Chambers acknowledges that 46 percent of the children of Wal-Mart's 1.33 million U.S. employees are on Medicaid or are uninsured. She also notes that only 48 percent of Wal-Mart associates enroll in the company's health plans versus the national average of 68 percent. Wal-Mart has been criticized on these fronts by labor unions and lawmakers around the country. Wal-Mart moves on PR front Prior to the discovery of the internal memo, Wal-Mart scored points for polishing its image. Wal-Mart CEO Lee Scott said Congress should raise the minimum wage, although he did not say how much. And, the retail giant announced a broad push to make its business more friendly toward the environment. Scott said Wal-Mart will reduce the amount of fuel used by its truck fleet, cut down on waste at its stores, and look to become more energy-efficient. Acxiom responds to another bid Acxiom has responded to ValueAct Capital's latest move in its hostile takeover bid of the database giant. A new $2 billion bid from ValueAct offers $25 per share for all outstanding shares of Acxiom common stock. Value Act is Acxiom's largest shareholder. Acxiom's board is considering the offer despite company leader Charles Morgan's statement that ValueAct's bid is not in the company's best interest. Murphy more than survives Higher oil and natural gas prices pushed Murphy Oil Corp.'s earnings to a solid quarterly performance. Murphy Oil announced that third quarter net income nearly doubled to $231 million, compared to last year's third quarter net income of $118.7 million. Murphy's total revenues for the quarter topped $3.3 billion, up 45 percent over last year's third quarter. Hurricane damage impacted El Dorado-based Murphy's expenses by over $34 million, up tenfold versus last year's third quarter results. Insurance recovery has not fully kicked in yet. Murphy Oil anticipates that additional costs related to Hurricane Katrina will be recorded in future periods. P.A.M. earnings fall Increased fuel costs and customer plant shutdowns reduced P.A.M. Transportation's earnings by nearly 30 percent. Revenues for the trucking company increased slightly during the quarter. Tontitown-based P.A.M. reported net income of $2.2 million, or earnings per share of 20 cents for the quarter ended Sept. 30. This compares to net income of $3.1 million, or earnings per share of 28 cents one year ago. Operating revenues excluding fuel surcharges were $79 million for the quarter, a 5.1 percent increase compared to $75.2 million in last year's comparable period. Arkansas Best performs well Arkansas Best Corp. announced third quarter net income of $40.6 million, or $1.59 per diluted common share, compared to third quarter 2004 net income of $27.4 million, or $1.07 per diluted common share. Arkansas Best's revenue during the third quarter of 2005 was $489.9 million, an increase of 6.1 percent over the third quarter of 2004. The board of directors of Arkansas Best Corp. has declared a quarterly cash dividend of 15 cents per share to holders of record of its common stock one cent par value on Nov. 9, payable on Nov. 23. Arkansas Best CEO to retire Robert A. Young III, current chairman and CEO of Arkansas Best Corp., has announced he will retire from the CEO position, effective Jan. 31. Young, 65, will maintain his role as chairman of the board of directors, continuing his 41 years of service to the company. Robert A. Davidson, current president and COO, will become Arkansas Best's president and CEO on Feb. 1. Name change coming for SBC SBC Communications will assume its new partner's name after its merger with AT&T is completed. SBC officials announced that the storied AT&T name will live on after the long distance phone company is acquired by the San Antonio-based SBC. The name change has been widely predicted since the merger was announced earlier this year. The Justice Department signed off on the SBC-AT&T merger this week. The FCC's review is still pending, but is expected before the end of the year. Clinton library gets tax break The Arkansas Supreme Court ruled that the foundation that built Bill Clinton's presidential library is entitled to an economic development tax break worth as much as $3.5 million. The ruling upholds Circuit Judge Willard Proctor's previous ruling. Three years ago, the foundation requested the tax break while building the $165 million museum and presidential library just east of downtown Little Rock. The tax break will allow the foundation to be reimbursed for taxes paid on building materials used in library construction. 'No new taxes' pledge Republican gubernatorial candidate Asa Hutchinson and Democratic contender Mike Beebe spoke to the Arkansas State Chamber of Commerce this week. Both men discussed their positions on issues affecting the business community. Beebe said he did not support new taxes and wants to find ways to reward businesses that provide health insurance to employees. Hutchinson said he supports tax cuts to businesses, such as an exemption on paying sales taxes on utilities. Third time a charm State lawmakers finally got Beverly Enterprises and North American Senior Care (NASC) representatives before a legislative panel. After two failed attempts to ask questions of officials with the merging entities, legislators were able to ask some questions on the proposed $1.9 billion buyout. NASC has told Fort Smith officials in writing that it plans to keep the headquarters where it currently is. Rep. Stephen Bright of Maumelle, who called for the hearings, says a letter is not enough and demanded that a pledge be included in the sales documents, although there is no legal requirement by the companies to do so. Settlement reached The U.S. Department of Labor announced that Leggett & Platt Aluminum Group, dba Precision Industries, has agreed to settle findings of hiring discrimination against a class of 150 female and minority job applicants. The agreement settles the department's findings that the company discriminated against minority and female applicants for die cast trainee positions at its Malvern facility from Jan. 1, 2002, through Dec. 31, 2003. ------- Roby Brock, a freelance journalist based in Little Rock, writes weekly for the Arkansas News Bureau. His weekly television program airs at 10 p.m. Sundays in Central and Northwest Arkansas. His e-mail address is roby@talkbusiness.net; his Web site address is www.talkbusiness.net. |
