Axciom cuts worker pay, revenue forecast
Little Rock database marketer Acxiom revised its expected first quarter revenue and earnings projections and disclosed cost-cutting measures aimed at avoiding layoffs.
Citing recessionary pressures, Acxiom said it expected first quarter revenue of approximately $245 million to $255 million, down 17 to 21 percent from the previous year’s quarter. Diluted earnings per share were downwardly revised by $.03 to $.07 per share.
Acxiom also cut worker pay for most of its U.S. workforce by three percent or more. The company suspended its matching contributions to employees’ 401(k) programs.
Court of Appeals shoots down Turk plant
The Arkansas Court of Appeals rejected a permit allowing for the construction of a controversial $1.6 billion coal-fired power plant in Hempstead County.
The court said that the Arkansas Public Service Commission (APSC) did not adequately review plans for the plant and it ordered a new hearing to decide whether the plant should proceed. The court said that the APSC failed to comply with a law requiring the utility company, SWEPCO, to demonstrate environmental compatibility with a public need.
The $1.6 billion John W. Turk power plant is currently under construction in Fulton, Arkansas near Hope.
Verizon leader says jobs study not complete
On Tuesday, Verizon Wireless’ Regional President Steve Smith told a Little Rock audience that a study is not complete on future jobs in central Arkansas. He reiterated previous statements that the New Jersey-based buyer of Alltel planned to grow Verizon’s call center workforce in Little Rock from 800 to 1,200. A spokesperson for Verizon Wireless said later that a long-term review of existing jobs at the Little Rock regional headquarters will continue through the conversion process from Alltel to Verizon, which could take up to 3 more months.
FCC approves CenturyTel-Embarq merger
The Federal Communications Commission (FCC) has officially approved the CenturyTel-Embarq merger, making the newly-named CenturyLink one of the largest rural telecoms in the U.S.
Monroe, La.-based CenturyLink is Arkansas’ second largest telephone company behind AT&T and serves many rural parts of the state. There are no Embarq properties in Arkansas. The newly formed company will have nearly twice as many U.S. customers as Little Rock-based rural telecom provider Windstream Corp.
Car-mart wraps up solid year
America’s Car-Mart posted net income of $17.9 million for its fiscal year, which ended April 30, 2009 – a 19 percent increase over the previous year. Full-year revenues were up nearly 9 percent, topping $299 million. Unit sales rose 5.5 percent for the year.
Car-Mart officials said they expect to add 5 new dealerships in the current fiscal year. They also expect to boost their interest income thanks to a federal law that will allow the buy-here, pay-here used car dealer to charge higher interest rates.
Kimberly-Clark laying off 3 percent
Kimberly-Clark, the maker of Huggies diapers and Kleenex tissues, will cut 1,600 jobs, or 3 percent of its worldwide workforce, by the end of the year. Kimberly-Clark has major manufacturing operations in Conway and Maumelle, Arkansas.
The company said that its workforce reductions will come from “all regions and business segments” of Kimberly-Clark’s global operations. Salaried and non-production jobs will be affected, but the company does not plan to close any of its manufacturing facilities as part of these actions.
Baldor adding jobs in North Carolina
Fort Smith-based Baldor Electric Co. is consolidating operations and adding 114 jobs in North Carolina. One month ago, Baldor disclosed plans to add 25 jobs as part of a $3.1 million expansion at its Marion, North Carolina factory. Baldor is moving a mounted roller-bearing line from Indiana to Marion.
The Marion plant was acquired in early 2007 as part of the Reliance/Dodge acquisition and now employs 100 people.
Arkansas firm moving to Okalhoma
C.E. Aerospace is moving its jet engine stand production from near Mountainburg, Arkansas to Roland, Okla., as part of a $6 million investment to consolidate operations. Two metal fabrication factories in Fort Smith will also move to Oklahoma.
C.E. Aerospace builds more than 12 different styles of jet engine stands that hold engines during repairs. The company is involved in aviation parts repair and distribution.
Feds to expand Little Rock operations
The Federal Reserve Bank of St. Louis is establishing a new satellite banking supervision office in Little Rock. A similar expansion was made in Memphis in 2004.
The new office will represent a physical expansion within the Fed’s existing branch facility located in downtown Little Rock’s Stephens Building. By the end of this year, seven examiners will be housed in the new office, with plans to add three more next year. The Fed is making the move to strengthen relationships with area banks in Arkansas.
Wal-Mart foundation gives $1 million to UAMS
The Wal-Mart Foundation donated $1 million to UAMS for the medical school’s new northwest Arkansas campus.
The funds will be used to renovate the first floor of the former Washington Regional Medical Center hospital building, which will house the satellite campus. In addition to the private support, UAMS is expected to receive $3 million for its northwest Arkansas campus from a tax increase on cigarettes and other tobacco products that took effect March 1.
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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.
