By Roby Brock
Another month of declining home sales highlighted the struggles of Arkansas’ housing market. Arkansas home sales fell 27.3 percent in January, according to the Arkansas Realtors Association. Among the five largest counties in the state, sales all declined by double-digit margins. Average home prices tumbled 8.3 percent, the third consecutive month of a sharp decline. Statewide, home prices averaged $134,332 in January.
Dillard’s loses $149 million in quarter
Dillard’s, Inc. ended a dismal year with a large fourth-quarter loss of $149.3 million. Revenues for the Little Rock-based mall retailer were $2.04 billion during the quarter, a 9 percent decline. Same-store sales fell 8 percent during the quarter. One year ago, the company posted a $47.3 million profit on revenue of $2.16 billion.
For the full year, Dillard’s saw its sales decline 6 percent to $6.83 billion as it recorded an annual net loss of $241.1 million. One year ago, Dillard’s turned a profit of $53.8 million on revenue of $7.2 billion. During the year, Dillard’s closed 21 under-performing stores and said it has identified 5 more store closures in 2009. It warned that more store closings could occur. No store openings are expected for 2009, but two stores are under construction.
Sales go in different directions for Wal-Mart, Dillard’s
Wal-Mart reported February sales of $30 billion, up 2.8 percent from one year ago, while Dillard’s saw its monthly sales tumble 14 percent. Total sales were $20.1 billion for Wal-Mart and $497.7 million for Dillard’s. Wal-Mart’s same-store sales jumped 5 percent, while Dillard’s recorded a 14 percent decrease in its stores that have been opened for at least one year.
Hallwood Energy files for bankruptcy
Hallwood Energy, a significant investor in Arkansas’ Fayetteville Shale play, filed for Chapter 11 bankruptcy this week. The oil and natural gas company cited falling energy prices and a lack of new financing for its bankruptcy filing.
Hallwood Energy listed from $50 million to $100 million in assets and more than $100 million in debt in Chapter 11 papers filed in U.S. Bankruptcy Court in Dallas, where Hallwood Energy is based. At one time, Hallwood owned over 400,000 acres of mineral leases within the Fayetteville Shale play in Arkansas. Chapter 11 bankruptcy allows a company to reorganize its debt while remaining in business.
American Railcar has strong 2008, warns on 2009
American Railcar Industries (ARI), which has major manufacturing facilities in Paragould and Marmaduke, posted 2008 earnings of $31.4 million on revenue of $808 million. Earnings were down about $6 million from the previous year, while revenue rose by over $110 million. Company officials warned that a reduction in workload looms due to market uncertainty, a weak economy and a difficult credit environment.
“In response to this lower demand, we have slowed our production rates,” the company said in a statement.
Car-Mart earnings rise
America’s Car-Mart saw its third-quarter net income increase 8 percent to $3.6 million as revenue rose 3.3 percent to $73.5 million. Same-store sales saw a 2.9 percent increase in revenue. The Bentonville-based used car chain has been benefiting from the tightening economy as consumers look for bargains amidst falling incomes and job insecurity.
AT&T to add 189 jobs at service center
AT&T unveiled its new customer support center at its corporate headquarters in downtown Little Rock. The center has currently filled 50 positions, but will ultimately employ 189 people in Arkansas, part of a larger effort by AT&T to insource, or move back to the U.S., 5,000 overseas jobs. The $7 million center will provide technical support to AT&T’s high-speed Internet customers in 13 states. It is one of seven centers in the U.S. AT&T is the largest telecom company in Arkansas. It employs roughly 2,700 people in the state.
Fort Smith Furniture maker to shed more jobs
Slow market conditions have once again forced Fort Smith-based Riverside Furniture to shed jobs. The furniture manufacturing and distribution company will shed 58 jobs – 43 in Fort Smith and 15 in Russellville — beginning April 27. Riverside will employ about 150 at its Fort Smith and Russellville operations after April 27, according to company officials. The company announced layoffs of 250 jobs because of slow market conditions in January.
Beebe: El Dorado poultry plant may have buyer
Gov. Mike Beebe told an auditorium full of job-endangered Pilgrim’s Pride employees in El Dorado that the state is in talks to find a buyer for the poultry processing operation, a move that could salvage up to 800 jobs. Last week, Pilgrim’s Pride announced it would shut down its El Dorado plant and lay off 600 workers. In 2007, the chicken company shed an additional 600 jobs as it entered Chapter 11 bankruptcy. The plant’s closing could jeopardize over 400 regional poultry growers.
Boyd Metals to open LR port facility
Boyd Metals broke ground on its new Little Rock Port plant, a $6 million manufacturing and distribution facility that will sit on a 10-acre site within the industrial park. Fort Smith-based Boyd Metals says it will ultimately hire 46 workers at the plant. The company distributes a broad range of carbon steel, stainless steel, aluminum and fiberglass products. Production at the new facility will begin in late fall 2009.
Melbourne plant to close
Columbia Flooring Co. in Melbourne will close its doors, affecting as many as 250 workers. Columbia Flooring makes hardwood floors and the slowdown in the housing market has hampered the company’s product demand. The announcement comes six weeks after mid-January layoffs that affected 45 employees at the Columbia plant. Melbourne has seen several manufacturing layoffs in recent years with the closure of a shirt factory, an aerospace firm, and a tile company.
Severance payments boost February revenues
Despite healthy monthly and year-to-date revenue numbers, the state’s chief economist warned that one-time factors were responsible for the strength of state tax collections during February.
For the month, net available general revenues topped $207.3 million, 25 percent above forecast. Individual income taxes totaled $200.7 million, 12 percent above forecast. State officials warned that one-time payments from severance checks related to massive layoffs across the state boosted monthly numbers.
