By Roby Brock
Strong international growth boosted Wal-Mart Stores Inc. second-quarter results, but lackluster same-store sales in the U.S. could signal to investors and stock market watchers that the struggling U.S. economy is still slumping.
For the period ended July 31, the Bentonville retailer reported net income of $3.59 billion, or 97 cents per share, versus $3.47 billion, or 89 cents per share, in the same period a year ago. Net sales for the quarter grew to $103 billion, an increase of 2.8 percent from $100 billion in the second quarter last year.
Overall, Wal-Mart International remains the fastest-growing segment of the retail giant’s base, with net sales of $25.9 billion, an increase of 11.0 percent from last year’s second quarter. Wal-Mart U.S. net sales of $64.7 billion were flat for the second quarter compared to the prior year. Net sales for Sam’s Club, excluding fuel, increased to $11.4 billion, just above last year’s year results.
Car-Mart continues to dodge recession
Coming off its best year ever, recession-proof America’s Car-Mart Inc. easily beat Wall Street profit expectations on Thursday.
For the period ended July 31, the Bentonville-based car dealer reported net income of $8.0 million, or 70 cents per share, on revenue of $83.8 million. That compares with net income of $7.0 million, or 60 cents per share, on sales of $83.7 million a year ago.
“Once again, our financial performance was solid for the quarter and we certainly expect these positive trends to continue,” said William H. (“Hank”) Henderson, President and Chief Executive Officer of America’s Car-Mart.
Windstream to acquire Midwest assets in $782 million deal
Windstream Corp. continues its acquisition spree. The Little Rock-based landline and broadband provider announced that it has entered into a definitive agreement to acquire Q-Comm Corporation (Q-Comm), a privately held regional fiber transport and competitive local exchange carrier based in Overland Park, Kan., in a transaction valued at approximately $782 million.
The transaction includes Q-Comm’s wholly owned subsidiaries Kentucky Data Link, Inc., (KDL), a fiber services provider in 22 states, and Norlight, Inc. (Norlight), a competitive local exchange services company primarily serving the Midwest. Both KDL and Norlight are based in Evansville, Ind.
“This transaction builds on Windstream’s strategy to become a next-generation telecom provider focused on broadband and enterprise customers,” said Jeff Gardner, president and CEO of Windstream. “KDL’s extensive fiber network creates savings for us as well as opportunities to grow business revenues, particularly transport services for wireless carriers.”
Dillard’s starts new stock repurchase program
Dillard’s, Inc. announced that its board of directors has authorized the company to repurchase up to $250 million of its Class A Common Stock. The new open-ended authorization permits Dillard’s to repurchase its Class A Common Stock in the open market or through privately negotiated transactions.
During the second quarter of 2010, Dillard’s completed all share repurchase activity authorized under its previous $200 million plan, which was approved by the board of directors in November of 2007.
Additionally, the Dillard’s board of directors declared a cash dividend of 4 cents per share on the Class A and Class B Common Stock of the company payable November 1, 2010 to shareholders of record as of September 30, 2010.
Searcy announcement another energy feather in Arkansas cap
SN Tech Inc., a leading manufacturer of electronically commutated electric motors, has formed a partnership with ElectroCraft Arkansas Inc. to produce a “green” motor at ElectroCraft’s Searcy manufacturing facility. The companies will hire about 55 new employees combined, taking total employment in Searcy from 70 employees to about 125.
The initial products to be produced at ElectroCraft will be small horsepower motors for the residential market which will be available this fall. The company plans to roll out two- to five-horsepower motors for the commercial market in late 2011 or early 2012.
Many of the residential motors are used in air conditioning units and can double energy efficiency through a patented technology. More than 800 million electric motors are used in the U.S. each year. Sixty percent of all electricity generated in the United States is used by these electric motors.
UA system gets $102 million grant
The University of Arkansas System will receive a $102 million grant to expand broadband access in the state, the White House and the U.S. Department of Agriculture announced this week. The money will be used to enhance two existing broadband networks that serve Arkansas communities.
The University of Arkansas for Medical Sciences in Little Rock will use its funds to upgrade and expand Arkansas’s broadband networks by offering substantial broadband upgrades, broadband equipment and connectivity fiber for 474 community anchor institutions, including colleges and universities, public libraries and health care facilities.
The project will connect about 475 community institutions to broadband and could benefit as many as 1.32 million people and 61,000 businesses, according to government officials.
Whirlpool proceeds with job cuts as previously announced
In December 2009, officials with Benton Harbor, Mich.-based Whirlpool Corp. said the more than 400 jobs created with a second shift of refrigerator production would likely end at the end of summer 2010.
This week, officials confirmed the pending layoffs.
“Plant management has confirmed that they anticipate some layoffs to take place in October and November,” noted an Aug. 18 e-mail comment from Whirlpool spokeswoman Jill Saletta. “The October layoffs are due to the end of production of counter-depth refrigerators at the plant, which we announced to employees at the end of 2009. November layoffs are anticipated due to softening of demand, which is typical at this time of year.”
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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.
