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Aerospace industry is exploding Sunday, Feb 24, 2008 By Roby Brock More than 5,000 new jobs are expected to be created by aerospace firms in Arkansas over the next 10 years. At the first Arkansas aerospace summit, educators, economic developers and business leaders in the field brainstormed on ways to meet growing workforce demands for an industry that already employs about 10,000 Arkansans. State officials contend that the aerospace industry is Arkansas' No. 1 export, contributing about $1 billion annually to the state's economy. Biodiesel plant officially starts its engine Arkansas SoyEnergy Group, a biodiesel firm based in DeWitt, held a formal opening on Tuesday for its fuel production facility, which includes an on-site soybean crusher and conversion equipment capable of making 3.5 million gallons of B100 biodiesel and other by-products. Ultimately, the plant could be expanded to allow for 10 million gallons of production. The crushing facility began operating in mid-2007 and fuel production is slated to begin in April 2008. The operation, owned by the Hornbeck family of DeWitt, is hoping to create a new market for local soybean farmers within a 35-50 mile radius of the southeast Arkansas community. Arkansas SoyEnergy is the state's first biodiesel factory that only uses soybean oil as its feedstock. No other biodiesel plant in the state has an integrated operation to crush soybeans, extract the oil and process it into fuel at a single location, according to the owners. Wal-Mart posts record sales, profits Wal-Mart turned record fourth quarter sales into a record quarterly profit. The world's largest retailer posted staggering fourth quarter revenues of $106.3 billion, an 8.3 percent increase from the previous year's fourth quarter. Net income rose to $4.1 billion, up 4 percent from the previous year's fourth quarter net income of $3.9 billion. Approximately $64 million in one-time tax charges brought earnings down slightly. For the full year, Wal-Mart's sales topped $374.52 billion, an increase of 8.6 percent over the previous year. Annual profits were up 5.8 percent to $12.88 billion. Expansions accounted for much of Wal-Mart's sales and earnings growth over the past year. The retail giant is still struggling with its same-store sales, often seen as an important barometer of store performance. In the fourth quarter, Wal-Mart's same-store sales rose 2.1 percent, and for the year, they were only up 1.6 percent. Wal-Mart announces job expansions In separate announcements, Wal-Mart revealed that it would add thousands of jobs worldwide. At its Bentonville headquarters, the retailer disclosed that it is planning to add hundreds of jobs in its information services department. The information technology jobs will include entry-level and advanced management positions. In India, Wal-Mart said it would open 10 to 15 large cash-and-carry stores over the next seven years. The first store could open by the end of this year. The relatively small startup is aimed at easing its way into the Indian market without angering that country's many mom-and-pop retailers that currently dominate the industry. Bharti Enterprises of India and Wal-Mart have partnered on the Indian joint venture and expect to employ 5,000 people in the country as it ramps up. In England, Wal-Mart's Asda chain, which is the No. 2 supermarket group in the U.K., plans to add 9,000 jobs to its workforce in the foreseeable future. Asda has had success in gaining market share from its competitors through an aggressive low-price strategy deployed in 2007. Chesapeake Energy profits hurt by one-time charges Chesapeake Energy, the second largest leaseholder in Arkansas' Fayetteville Shale play, reported its fourth quarter and full-year earnings for 2007. Chesapeake posted net income of $158 million on revenues of $2.1 billion for the quarter. Compared to one year ago, earnings are down 64 percent, while revenues grew by 11 percent. One-time net charges of $308 million accounted for the big earnings decline. Those charges included after-tax mark-to-market losses, an after-tax gain, and stock exchanges involving the company's preferred and common stock. Factoring out one-time charges, Chesapeake's earnings would have been $466 million during the quarter compared to $446 million in the fourth quarter of 2006. For the 2007 full year, Chesapeake generated net income of $1.2 billion on revenues of $7.8 billion. In 2006, the Oklahoma City-based oil and gas drilling company reported net income of $1.9 billion and revenues of $7.3 billion. Gas prices ignite overnight Over a two-day period, fuel prices in Arkansas rose by as much as 20 percent in certain parts of the state. A huge oil refinery fire in Texas sparked concerns about supplies of crude oil, which topped $100 a barrel this week. Other factors impacting the oil and gas market included government concerns about inflation and slower economic growth. In Arkansas, unleaded gas prices as high as $3.47 a gallon were reported. One year ago, unleaded fuel prices averaged $2.15 a gallon in the state. Analysts expect the trend in higher gas prices to continue at the retail level, an ominous sign for consumer confidence. Broadband group sees education topping incenitives A group representing public and private officials on broadband Internet expansion in Arkansas told lawmakers that education may be more important than business incentives to encourage more interest, particularly in rural parts of the state. "The reason people don't have a demand for broadband primarily is because they don't understand what broadband can do for them," Arkansas Broadband Advisory Council Chairman James Winningham told members of a legislative committee on advanced communications and information technology. The group is an extension of the Connect Arkansas initiative, created by the 2007 General Assembly and spearheaded by the Arkansas Capital Corp. The program is studying where broadband exists throughout the state and what can be done to expand its presence as an economic development tool. Rough estimates from industry groups show that 60 percent of Arkansans have broadband Internet access, while only 40 percent of that group is subscribing to it. Sharper Image files for bankruptcy The Sharper Image, founded by Little Rock native Richard Thalheimer, has filed for Chapter 11 bankruptcy. The move is aimed at reorganizing the gadget retailer's debt and liquidity. Last week, the Sharper Image replaced its CEO for the third time in the last 18 months, and three of its board members resigned in the last 45 days. Sales for the Sharper Image have been tanking for over two years. In 2007, sales tumbled 27 percent from the previous year. Turnaround specialist Robert Conway was hired last week to revive the 183-store chain. The Sharper Image has retail stores in Little Rock and Rogers and a distribution center in Little Rock. ------- 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. |
