By Roby Brock
The state’s unemployment rate remained unchanged at 7.1 percent in September. One year ago, Arkansas’ unemployment rate stood nearly two percentage points lower at 5.2 percent.
The U.S. jobless rate rose one-tenth of a percentage point, from 9.7 percent in August to 9.8 percent in September.
Government job growth was the largest sector gainer during the month with 12,400 employees re-entering the workforce through public school hirings. Seasonal downturns affected multiple industry sectors, including construction, which lost 2,600 jobs in September.
Arkansas Best announces CEO change, admits quarterly loss
Arkansas Best Corp. disclosed a third-quarter loss and reported that it will replace its CEO by year’s end.
The Fort Smith-based trucking firm said that CEO Bob Davidson, 62, would step down at the end of this year and be succeeded by CFO Judy McReynolds, 47. Davidson has served as CEO since February 2006.
The leadership news overshadowed Arkansas Best’s third-quarter net loss of $5.6 million. One year ago, Arkansas Best recorded net income of $15.4 million.
“We are now entering the fourth year of a severe freight decline that is unprecedented in our company’s history. It is unclear when business levels will benefit from a significant improvement in our nation’s economy,” Davidson said.
J.B. Hunt net income falls 34 percent
J.B. Hunt Transport Services announced third-quarter net income of $40 million, down nearly 34 percent from one year ago when the Lowell-based transportation firm reported profits of $60.3 million.
Revenue for the quarter tumbled 16 percent to $834 million. J.B. Hunt officials attributed the decline to lower fuel surcharge revenues. Declines in intermodal and truckload pricing also contributed to the lower revenue, the company said.
USA Truck swings to quarterly loss
USA Truck swung to a third-quarter loss as the Van Buren-based trucking firm saw its revenues tumble. USA Truck reported a $1.6 million loss on revenue of $82.3 million, a 20 percent fall-off from one year ago. One year ago, the trucking firm posted net income of $2.4 million in the third quarter.
CEO Clif Beckham said that truckload industry conditions remain challenging. “Businesses continue to operate at reduced inventory levels, which has made the recession seem much worse than the actual macroeconomic contraction would suggest,” Beckham said.
Wal-Mart’s Duke outlines priorities to investors
Wal-Mart CEO Mike Duke told investors that aggressive global growth, expense control and improving operations were his three key areas for moving the retail giant forward.
At a Wal-Mart investors’ conference, Duke said, “There is no retail competitor — here in the United States or anywhere in the world — that can deliver the kind of growth that Wal-Mart can over the next several years.”
Supreme court to hear Turk plant case
The Arkansas Supreme Court will review a case concerning the Turk Power Plant currently under construction by Southwestern Electric Power Co. in Southwest Arkansas. The controversial $1.6 billion coal-fired power plant has been the subject of litigation and regulatory wrangling for most of the year.
The timetable for the case before the state’s highest court has not been determined. The court may elect to accept additional briefs or oral arguments, but the court has not announced how it will proceed with the case, according to SWEPCO officials.
Budget revision planned
Gov. Mike Beebe accepted a recommendation by the Arkansas Department of Finance and Administration to cut the state budget by $100 million for the current fiscal year. The revised budget forecast comes after revenues fell below those predicted for the first three months of the fiscal year.
“Just like any family or business, state government must live within its means,” Beebe said. “Despite our conservative budgeting, it appears that our recovery from the recession has been slower than anticipated. There are still positive signs in the revenue numbers, and we maintain hope that the recovery will accelerate.”
For the current fiscal year, Arkansas’ net available general revenues have topped $1.16 billion. That’s 3.3 percent below last year’s levels and 7.1 percent below forecast. September was a particularly gloomy month as sales and income tax collections lagged below expectations.
Former Farm Bureau president weighing GOP Senate run
Political columnist David Sanders reported this week that Stanley Reed, former Arkansas Farm Bureau president, is strongly considering a U.S. Senate candidacy for the Republican nomination to challenge incumbent Democrat Blanche Lincoln.
Reed, a Marianna farmer, said Lincoln was being “pulled down by the Democratic agenda.” He said he expects to make a final decision in about a month. “I thought she was the best we could do,” he said of Lincoln. “If I do run, I’ll be running for America and not against Blanche.”
The consideration is significant in that Reed has strong ties to the agriculture community, a key constituency to Lincoln’s political base.
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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.
