By Roby Brock
Chrysler Corp., which is reorganizing under Chapter 11 bankruptcy, said it would close 789 dealerships nationwide, including eight in Arkansas.
They are: Steve Smith Country in Springdale; Jim Bryant Motors in Springdale; Jones Brothers Auto in Harrison; Bob Carver Cars & Trucks in Mena; Cook Jeep Chrysler in Little Rock; Crain Chrysler Dodge Jeep in Little Rock; Louis George Motors in Osceola; and Malvern Motors in Malvern.
Major consolidation or closures of General Motors dealerships in Arkansas are also under way, though a public list is not expected to be revealed. Industry sources indicated that Ford dealerships will make adjustments, too.
Wal-Mart net income remains flat
Wal-Mart posted first quarter sales of $93.5 billion, down 0.6 percent from $94 billion one year ago, but the retail giant did hold steady with its net income. Bentonville-based Wal-Mart’s quarterly net income of $3 billion was virtually unchanged from last year’s comparable quarter.
U.S. sales for the retail giant rose 3.8 percent for the quarter, while Sam’s Club sales slipped 1.4 percent and international sales were down 11.1 percent. The company blamed currency exchange rates for the international decline, but said on a constant currency basis, sales would have risen 9 percent from last year’s figures.
Wal-Mart has also altered its reporting schedule for sales, moving from a monthly report to a quarterly report. The company said it expected same-store sales during the 13-week period from May 2 through July 31 to be between flat and 3 percent.
ConocoPhillips and Tyson halt diesel fuel joint venture
ConocoPhillips said Wednesday it has halted its collaboration with Tyson Foods to make diesel fuel from animal fat.
After its shareholders’ meeting this week, ConocoPhillips officials said it idled the project in the fall after federal tax credits that helped fund the project were cut in half. Tyson supplied ConocoPhillips with animal fat from its meat processing operations, which the energy company processed into biofuel at its Borger, Texas, refinery.
The $100 million effort, which is less than two years old, could resume say both parties if government incentives return.
Acxiom swings to profit
Acxiom’s fourth quarter proved to be better than a year ago. The Little Rock database and digital marketer posted net income of $22.5 million, a far cry from its $58.3 million loss one year ago. Revenue fell roughly 15 percent to $295.5 million during the quarter. Acxiom said that currency exchange rates impacted revenue by $26.4 million.
Verizon to spin-off landlines to Frontier
Verizon Corp. has agreed to sell approximately 4.8 million landline customers in 14 states to Frontier Communications in an $8.6 billion deal. The transaction would make Frontier the largest U.S. “pure rural communications provider” of voice, broadband and video services, said Frontier CEO Maggie Wilderotter. It also adds momentum to Verizon’s push to focus on its growing wireless and data business.
The Frontier deal will not affect any Verizon-Alltel operations in Arkansas, but it will beef up the competition in the rural telecommunications business and that will have an impact on traditional landline providers CenturyTel, AT&T and Windstream.
On Monday, Windstream announced plans to buy D&E Communications of Ephrata, Pa., for $330 million.
Lockheed Martin breaks ground on new Camden complex
Lockheed Martin broke ground on an expansion of its state-of-the-art Patriot Advanced Capability-3 (PAC-3) Missile production complex in Camden. Lockheed Martin said the new 71,000 sq. ft. facility could allow for continued production expansion and modest hiring of new employees over the next several years.
PAC-3 is the world’s most advanced hit-to-kill air defense missile and has been used in Iraq for years.
AERT posts first quarter loss
Advanced Environmental Recycling Technologies (AERT) recorded a first-quarter loss due to lower sales and a disruption in its manufacturing operations earlier this year. The Springdale-based plastic recycler and manufacturer posted a $1.4 million net loss on sales of $16.6 million. One year ago, AERT turned a $1.6 million net loss on sales of $29.4 million. Company officials said that ice storms in January, which knocked production offline for several days, contributed to the net loss.
AG files suit against telemarketers
Attorney General Dustin McDaniel announced that his office has filed lawsuits in federal court against three companies that are believed to be placing illegal telemarketing calls about car warranties to Arkansas consumers.
McDaniel identified the three companies as Auto Warranty Solutions, Vehicle Services, Inc. and Dealer Warranty Services. The complaints detail multiple violations of both federal and state telemarketing laws, according to McDaniel’s office.
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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.
