By Roby Broock
Wal-Mart shareholders met in Northwest Arkansas for the company’s annual conference. Company leaders announced plans to create more than 22,000 jobs in 2009 to staff an estimated 150 new or expanded stores in the U.S.
Wal-Mart officials said they are looking at additional international expansion plans, including in Africa, the Middle East and the Philippines. The board approved a $15 billion stock buyback program. Also, CEO Mike Duke stated that Wal-Mart would hold its new customer market share gained when the current recession subsides.
Dillard’s same-store sales falls
Little Rock-based Dillard’s reported that its May sales fell 14 percent compared to one year ago and same-store sales tumbled 12 percent. For the four weeks ended May 30, Dillard’s posted overall sales of $430 million compared to $499.7 million one year ago. For the rolling quarter, Dillard’s total sales are down 15 percent and comparable store sales are off 13 percent.
Sparks Health calls off sale
Sparks Health System announced it would not pursue a previously announced deal to sell the hospital to Alpharetta, Ga.-based Jackson Healthcare.
“The Sparks Board of Trustees has announced their decision to discontinue discussions with Jackson Hospital Affiliates,” Sparks said in a statement.
Terms of the deal were not disclosed in late March when the buyout was officially announced. At the time, both parties expected to close the deal no later than June 30.
Ranger boats parent firm files bankruptcy
The parent company of Ranger Boats, Genmar Holdings of Minneapolis, Minn., filed for Chapter 11 bankruptcy this week. Ranger Boats has a major boat production plant in Flippin. Local leaders said the bankruptcy should have little impact on operations.
Hawker Beechcraft to institute furloughs
In a letter to Hawker Beechcraft employees, company officials warned that further cost cuts were needed to “re-size” the company and to match “continuing declines in consumer demand” for aviation products. The move involves consolidating administrative functions at Hawker’s corporate headquarters in Wichita, Kan. A furlough program will also be instituted starting later this month that will affect employment at the company’s Little Rock production facility.
UAMS receives $33 million for aging institute
The UAMS Donald W. Reynolds Institute on Aging received $33.4 million from the Donald W. Reynolds Foundation, the second-largest gift ever awarded to UAMS. The bulk of the funds, $30.4 million, will pay for construction of four additional floors on top of the existing Reynolds Institute on Aging, and a pedestrian walkway to the Jackson T. Stephens Spine & Neurosciences Institute a block away. Also, $3 million will be awarded to the Arkansas Aging Initiative, a statewide geriatrics program.
AERT shareholders approve reverse stock split
Advanced Environmental Recycling Technologies (AERT) shareholders have approved a 20-to-1 reverse stock split. The move could help AERT avoid delisting from the NASDAQ stock exchange. AERT shares have been trading below $1 since December 2007. They have traded as low as three cents a share during the past year.
CenturyTel to change name to CenturyLink
CenturyTel, the state’s second largest telecom, is one step closer to its final regulatory hurdle in its multi-billion dollar merger with Embarq. The newly merged company will change its name to CenturyLink. The Federal Communications Commission must still give approval on the deal.
Arkansas home sales show improvement
After months of double-digit declines in the state’s housing market, the Arkansas Realtors Association reported a smaller drop-off in statewide home sales for the month of April. Statewide units sold fell 8 percent in April 2009 versus one year ago. Four of the five counties with the highest number of home sales all declined, led by Pulaski County with a 10.4 percent drop; however Washington County reported a 10.1 percent increase in year-over-year sales. Benton County home sales fell just 4.4 percent. Average home prices declined statewide by 2.6 percent, but several large markets saw an increase in average prices.
State revenue show shakiness in May
The state’s May revenue summary showed that gross receipts – which include sales and use taxes – dipped 7.3 percent below last year’s levels, a sign that consumer spending is slowing in Arkansas. Individual income tax collections were also lower in May. Year-to-date, net available general revenues fell one percent to $293 million, but stayed 2.1 percent above forecast. The state’s fiscal year ends on June 30.
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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.
