By Roby Brock
Arkansas’ March unemployment rose one-tenth of a percent from February to 6.5 percent, a full two percentage points below the U.S. jobless rate of 8.5 percent. One year ago, Arkansas’ unemployment rate stood at 5.1 percent.
Layoffs contributed to major job losses in the manufacturing and professional services categories. Seasonal increases in the hospitality, retail trade, and government sectors were noted.
MALL OPERATOR FILES CHAPTER 11
A Chicago-based real estate investment trust that owns half of Pinnacle Hills Promenade in Rogers and all of the Pines Mall in Pine Bluff filed for Chapter 11 bankruptcy protection Thursday.
General Growth Properties, which owns 159 shopping malls in total, cited the struggling economy and tight credit markets for its troubles. It helps operate over 200 malls worldwide. Chapter 11 allows a debtor to retain possession of property and assets while reorganizing a business, and allows the business to continue operating.
RECESSION PULLS SIMMONS EARNINGS DOWN
Simmons First National Corp. announced first quarter earnings of $5.2 million, down from $8.8 million one year ago when the Pine Bluff bank holding company recorded a one-time charge that boosted earnings.
Net interest income for the first quarter of 2009 increased 2.6 percent to $23.4 million compared to $22.8 million for the same period of 2008. Non-interest income declined to $11.5 million during the quarter from $14.9 million one year ago.
Simmons’ officials said that loan demand was “significantly less than historical levels.”
BANK OF THE OZARKS SEES RECORD INCOME
Bank of the Ozarks reported that its net income rose 19.6 percent to over $9.2 million, a record quarterly profit for the Little Rock-based bank holding company.
Bank officials say that loan demand has fallen in recent quarters. Bank of the Ozarks’ net interest income for the quarter increased 39.5 percent to a record $30.3 million compared to $21.7 million one year ago. Non-interest income for the first quarter of 2009 increased 82.9 percent to $9.3 million compared to $5.1 million for the first quarter of 2008.
J.B. HUNT EARNINGS FALL
J. B. Hunt Transport Services announced first quarter 2009 net earnings of $30.8 million, down 18 percent from one year ago when it posted earnings of $36.4 million.
Total operating revenue for the current quarter was $723 million, also an 18 percent decrease from $878 million for the first quarter 2008. The company cited lower fuel surcharges due to falling fuel prices for the lower revenue.
USA TRUCK STILL LOSING MONEY
USA Truck reported a first quarter loss of $1.88 million on revenues of $82.8 million. One year ago, the Van Buren-based trucking firm posted a $1.95 million loss on revenues of $97.1 million.
“This quarter presented the most challenging operating environment that we have ever experienced,” said USA Truck CEO Clif Beckham. He cited a “severe contraction” in freight volume and he described a trucking environment with an overload in capacity.
MORE HEALTH CARE JOB CUTS
St. Edward Mercy Health System in Fort Smith announced that 64 full-time jobs will be cut immediately due to a rise in charity care and lower patient volumes. Hospital officials said a “vast majority” of the jobs cut were non-direct care givers.
According to a hospital statement, St. Edward Mercy instituted a hiring freeze in March, but that move failed to address the financial losses. St. Edward’s employs approximately 1,600 workers in several western Arkansas counties where it has operations.
WAL-MART CEO SEES NO QUICK END TO RECESSION
In an appearance on the Today Show, Wal-Mart CEO Mike Duke said he did not anticipate a quick end to the recession. Citing “a lot of stress” in the economy, Duke explained that data he’s analyzed shows consumers deeply entrenched in the mind-set of spending little and saving a lot. “It’s not a ‘V’ recession, where we’re just going to bounce out and come back,” he said.
Duke made the comments a day after a government report showed that sales at U.S. retailers fell 1.1 percent in March. Last week, Wal-Mart reported a lower-than-expected March sales.
NEW JOBS COMING TO ROGERS
Two firms will add 44 new jobs and more than $1.45 million in annual payroll to the Rogers area. Don’s Cold Storage & Transportation and Cryovac Inc., a division of Sealed Air Corp., are expanding work forces in the region.
Don Coenen, owner and managing partner of Don’s Cold Storage and Transportation, confirmed he will add 20 jobs to his work force of 50. Don’s provides cold storage services to customers in 48 states.
Cryovac, which makes protective packaging for food products, announced a $750,000 investment and expansion for its Rogers plant, which will add 21 to 24 new jobs with about $800,000 in annual payroll.
EL DORADO POULTRY PLANT HAS SUITORS
This week, Gov. Mike Beebe confirmed that a closed Pilgrim’s Pride poultry plant in El Dorado has drawn interest from potential buyers. A nearby Pilgrim’s Pride plant in northern Louisiana was recently purchased by a private company, Foster Farms of California, with help from the state of Louisiana. Foster Farms ponied up $40 million and Louisiana economic officials contributed another $40 million to the endeavor.
Pilgrim’s Pride indicated to a bankruptcy judge that it is willing to sell assets, though it has also stated that it wants to reduce the amount of poultry inventory in the U.S. market.
HARVEL PICKED TO LEAD FORT SMITH CHAMBER
Paul Harvel, now serving as president of the Clark County Economic Development Corp., has been hired as the new president of the Fort Smith Regional Chamber of Commerce. Harvel replaces Tom Manskey, who resigned from the post at the end of last year.
Harvel has served as president and CEO of the Arkansas State Chamber of Commerce for two years, and served more than 20 years as the president and CEO of the Little Rock Regional Chamber of Commerce. He is now a commissioner on the Arkansas Economic Development Commission.
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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.
