By Roby Brock
An analysis of second-quarter earnings among 16 of the largest Arkansas-based publicly traded firms shows promising signs of corporate health.
Fourteen of 16 firms headquartered in Arkansas — led by J.B. Hunt, Tyson Foods, Home Bancshares and Dillard’s — all posted improved second-quarter earnings versus one year ago.
Windstream Corp. posted a slight decline in profits, while Fort Smith trucker Arkansas Best posted a second-quarter net loss. AB’s loss was smaller than the previous year.
Three Arkansas cities at risk of recession relapse
Little Rock, Pine Bluff and Hot Springs are on a short list of U.S. metropolitan areas in danger of dipping back into a recession within three months, according to a recent report by a leading economic forecaster.
Moody’s Economy.com recently published a report that shows the three Central Arkansas cities among 22 U.S. cities at risk of plunging into a “double-dip” recession. Arkansas and Alabama were the only two states with more than one city on the list, three and two, respectively.
The report also listed Jonesboro, Fort Smith and Fayetteville among the U.S. metropolitan areas that are headed toward a full recovery.
Trucking ‘gone sideways,’ says national industry economist
A national trucking economist says the freight environment has “gone sideways,” but the industry should see gains in 2010 despite a slowing economy.
The American Trucking Associations’ seasonally adjusted For-Hire Truck Tonnage Index increased 1.5 percent in July. The latest improvement raised the SA index from 108.3 (2000=100) in June to 110 in July.
But the gains are not enough to alter the 2010 outlook from ATA Chief Economist Bob Costello.
“The economy is slowing and truck freight tonnage has essentially gone sideways since April 2010,” Costello noted in a statement, adding that 2010 should still prove better than 2009. “After accounting for the reduction in supply over the last few years, even small gains in tonnage will have a larger impact on the industry than in the past.”
Unemployment analysis: Experts weigh in
UALR economist Dr. Michael Pakko says there are “encouraging signs of continuing improvement in the Arkansas labor market” in the July unemployment report, which showed a drop in the jobless rate to 7.4 percent. He noted that the total number of unemployed Arkansans fell below 100,000 for the first time since May 2009. Pakko also contends that after seasonally adjusting raw data, payroll employment in Arkansas grew by 3,600 jobs during the month of July and it has grown by 16,000 jobs since the first of the year.
Billy Mountjoy, President of Bryant-based Employment Solutions, said he’s seen a 51 percent increase in job placement when comparing January-July 2010 data to the previous year’s period. He also says that smaller businesses have embarked on new hiring in 2010.
“This time last year they were either laying off or putting everything on hold,” said Mountjoy.
Judge makes ruling in GE-Mitsubishi case
A federal judge denied a motion by GE to dismiss a lawsuit filed by Mitsubishi Power Systems Americas. Mitsubishi and GE have been embroiled in a legal battle that could affect plans to build a $100 million wind turbine plant in Fort Smith that would employ 400 workers.
The case involves Mitsubishi’s allegations that GE is trying to corner the U.S. market for large, variable speed wind turbines. Mitsubishi says that GE’s actions have caused it to not sell “a single variable speed turbine in the United States” for nearly two years.
U.S. District Judge J. Leon Holmes ruled late Monday that Mitsubishi may proceed with its unfair trade practices lawsuit against GE. However, the ruling temporarily halted action on the case until a patent infringement case is resolved.
June home sales rise ever so slightly
On a day when reports showed that national home sales dropped by 27 percent in July, the Arkansas Realtors Association reported its June sales figures.
Home sales in Arkansas during June were up 0.56 percent compared to one year ago. Total valuations — the dollar value of the homes sold in the month — were down 0.3 percent statewide for the month. Average home prices declined by 0.85 percent.
Rockfish named to Inc. 500 list
Rogers-based Rockfish Interactive has been named to Inc. Magazine’s list of “500 Fastest Growing Companies.”
Rockfish is a digital and social media agency doing work for Walmart, Tyson Foods and other companies around the world.
The list ranks fast-growing, privately held companies that show stellar rates of revenue growth over a three-year average. Rockfish enters the list at #445 and has seen its revenue increase 673 percent on average from 2007-2009.
In addition to northwest Arkansas, Rockfish has offices in Dallas, Little Rock, San Francisco and plans to open a fifth office in Cincinnati, OH later this 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.
