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HomeMy WebLinkAboutHDC2015-024 Newspaper Article 03/14/2015AIl''ICansas amocrart-p(gazette 213 • SATURDAY, MARCH 14, 2015 • • Business news in brief QUOTE OF THE DAY "Inflation is very much controlled in this environment." Robert Brusca, Fact & Opinion Economics president Article, 1D Exvindsiream CEO earned $6.8M in'14 Jeff Gardner, former president and chief executive of- ficer of Windstream Holdings Inc., earned about $6.8 million in 2014, the Little Rock -based telecommunications company reported Friday in its proxy statement. Gardner was paid $1 million in salary, $378,000 in in- centive plan compensation, about $5.3 million in stock awards and $79,581 in other compensation. Anthony Thomas, president and chief executive officer, was paid about $3.3 million; Robert Gunderman, chief financial officer and treasurer, earned about $1.2 million; and John Fletcher, executive vice president and general counsel, was paid about $2.1 million. Windstream will hold its annual shareholders meeting May 14 at 10 a.m. This year's meeting will be a "virtual meeting;' via webcast at wwwvirtualshareholdermeeting. Com/WINI5. The company said shareholders will not be able to attend the meeting in person. — Jessica Seaman Ozarks Bank director sells 82,400 shares Ross Whipple, a director for Bank of the Ozarks, sold 82,400 of his shares in the Little Rock -based company this week, according to a federal filing. The shares were valued at $3,067,134. Since September, Whipple, the former chairman of Summit Bank of Arkadelphia, has sold more than $23 mil- lion of his Bank of the Ozarks stock. Whipple sold Summit Bank to Bank of the Ozarks last year for about $216 million, about 80 percent of which was in Bank of the Ozarks stock. After this week's sale, Whip- ple still owns more than 1.4 million shares of Bank of the Ozarks, valued at more than $53 million based on Friday's share price of $37.15. — David Smith Harley shares slide after layoffs report Shares of Harley-Davidson Inc. fell the most in six weeks Friday after a report that the motorcycle -maker is laying off 169 workers at a Kansas City, Mo, factory. The company notified Missouri officials that the reduc- tions will take effect May U and continue through Sept. 30, the Milwaukee Journal Sentinel reported Thursday evening. The move was the result of production needs and other changes, the newspaper said, citing a company statement. Kristen Cunningham, a spokesman for Milwaukee -based Harley, confirmed the layoffs Friday and said she couldn't immediately comment beyond that. The share decline is an "overreaction" to the layoffs, which are part of a restructuring plan in which Harley "is outsourcing materials management to a third parry," Joseph Spak, an RBC Capital Markets analyst in New York, said in a note. RBC rates the stock to outperform the market. Harley shares fell $2.05, or 3.4 percent, to close Friday at $58.80. — Bloomberg News Egypt seeks investors for canal projects SHARM EL -SHEIKH, Egypt — The head of Egypt's Suez Canal Authority said Friday that the government will offer investors 18 projects worth around $40 billion to create a new industrial and logistical zone along the strategic water- way. The creation of the zone is the second leg of a program to develop the canal. Egypt is already rushing to deepen the waterway and build a second branch to allow two-way traf- fic, an expansion officials say will be finished by August. Mohab Mameesh, the head of the authority, said that the aim is to increase the role of the waterway in international trade and increase its benefits to the country's damaged economy. The projects will be promoted to potential inves- tors at an international conference that opened in the Sinai resort of Sharon el -Sheikh on Friday. — The Associated Press Stocks end a third week with thud KEN SWEET THE ASSOCIATED PRESS NEW yORK — The stock market was hit hard Friday, capping a third week of de- clines, as investors reacted to a steep drop in oil prices and a Jump in the value of the dollar. The Dow Jones industrial average fell 145.91 points, or 0.8 percent, to 17,749.31. The Standard & Poor's 500 index fell 12.55 points, or 0.6 percent, to 2,053.40, and the Nasdaq composite fell 21.53 points, or OA percent, to 4,871.76. Utilities, companies that make basic materials like steel and major exporters had the biggest declines. The sell-off came at the end of a volatile week and sets the stage for reaction to a Federal Reserve policy meet- ing next week. Investors will be watching closely for clues about the central bank's views on the economy and interest rates. "This week has really been about investors' outlooks ad- justing in the face of higher interest rates later this year;' said Gabriela Santos, a global market strategist at JPMorgan Funds. Oil dropped sharply af- ter the International Energy Agency said prices had fur- ther to fall because supplies were continuing to rise. Benchmark U.S. crude fell $2.21 to close at $44.84 a bar- rel in New York. Oil is now within 40 cents of its low for the year, as well as its low- est level in six years, after a drop of 10 percent this week. Brent crude, a benchmark Kia recalls 209,000 SWs over gas pedal DETROIT — Kia is recalling nearly 209,000 Soul small SUVs because the gas pedals can bend or break The recall covers certain Soul and Soul electric vehicles from the 2014 and 2015 model years. If the gas pedal bends or breaks, it can be hard to acceler- ate the SUVs, increasing the risk of a crash Kia Motors America said in documents filed with the gov- ernment that an unsupported section of the pedal can bend if a driver stomps on it too hard when the vehicle isn't moving. The problem was discovered through warranty claims. Kia says no crashes or injuries have been reported. Dealers will add rubber supports beneath the pedal stop- per at no cost to owners. The recall is expected to start March 24. — The Associated Press EU states want Persian Gulf airlines plan BRUSSELS — France and Germany are leading a call for the European Union to ensure fair competition between EU airlines and those from the Persian Gulf region that are ac- cused of receiving major state backing. The French and German transport ministers said in a statement Friday that they want their European Union part- ners and the executive European Commission "to adopt a common strategy to bring an end to these practices." Com- panies from the Persian Gulf such as Emirates, Etihad and Qatar Airways have surged while many European Union airlines have struggled. Austria, Belgium, the Netherlands and Sweden have backed the Franco-German call, the statement said. The countries said landing rights in Europe should only be granted to airlines in exchange for fair trade controls on the way companies operate. — The Associated Press Traders gather Friday at a post on the floor of the New York Stock Exchange, where stocks drifted lower. for international oils used by many U.S. refineries, fell $2.41 past month. The dollar's advance can erpillar and Deere fell more than the rest of the market. to close at $54.67 a barrel in be tied to two factors, strate- say. The U.S. economy is U.S. Steel, whose products competes with cheap foreign London. Several energy stocks fol- lower. gists getting better, as seen by the jobs report last week, imports, fell nearly 4 percent after the company announced lowed the price of oil Transocean, an offshore oil rig strong and the Federal Reserve is it would idle part of its opera - tions and lay off workers. U.S. company, fell 67 cents, or 4.7 percent, to $13.60, and Den- poised to raise interest rates sooner rather than later. In Steel fell 83 cents to $21.80. 'A bury Resources fell 29 cents, or3.8percent, to$7.31. comparison, the European Central Bank is trying to rise in the dollar over a long period of time is fine, but The U.S. dollar continued drive down interest rates by this very rapid appreciation its advance against other ma- jor currencies. The euro de- buying government bonds, a tactic the Fed used until last can directly impact compa- nies' profits," Santos said. clined 1.3 percent to $1.0486. The U.S. dollar index, which fall. The European bank's pro- gram has been driving down Stocks that pay higher dividends, such as utilities, measures the dollar against the value of the euro. A higher dollar makes also had big losses. The Dow Jones utility index fell 1 per - a group of other currencies, increased 0.8 percent Friday U.S. exports more expensive Cat- cent. That index is down 7.4 so far this year. and is up 6A percent over the abroad. General Electric, percent GM settles suit on 29-year-old's death Apartment BLOOMBERG NEWS General Motors Co. has settled a lawsuit over the death of a 29-year-old wom- an that helped trigger the re- call of 2.59 million cars with faulty ignition switches. GM is the target of inves- tigations by state and federal agencies related to the igni- tion faults. The defect resulted in 64 deaths and 108 other injury claims eligible for compensa- tion, according to Kenneth Feinberg, administrator of the fund the automaker cre- ated to pay victims. Another 156 death claims are under review, according to the fund. Anton Valukas, a law- yer paid by GM, reported last year that the company failed for at least a decade to promptly resolve complaints from consumers, dealers Firm says U.S. oil, gas rigs drop to 19125 HOUSTON — Oil -field services company Baker Hughes Inc. said the number of rigs exploring for oil and natural gas in the U.S. fell by 67 this week to 1,125 amid depressed oil prices. Houston -based Baker Hughes said Friday that 866 rigs were seeking oil and 257 exploring for natural gas. Two were listed as miscellaneous. The count is down from 1,809 rigs active a year ago. Among major oil- and gas -producing states, Texas lost 37 rigs, Louisiana declined by seven, Oklahoma was down five, North Dakota and Ohio four each, New Mexico and Wyoming three apiece, Colorado two, and Alaska, Kansas and Utah by one each. West Virginia gained one rig. Arkansas, California and Pennsylvania were unchanged. The U.S. rig count peaked at 4,530 in 1981 and bot- tomed at 488 in 1999. —The Associated Press Ward • Continued from Page 1 D ernor's choice was unclear Friday. Under the state law that created the Arkansas Ag- riculture Department, Act 1978 of 2005, the Agriculture Board selects the secretary, whose "name shall be sub- mitted to the Governor for confirmation." The secre- tary serves at the pleasure of the governor. Telephone messages left with board Chairman Au - bra Anthony of El Dorado and Vice Chairman David Feilke of Stuttgart weren't returned Friday. On Feb. 4, the board nominated two people — Chastain and the Agricul- ture Department's current deputy secretary, Cynthia Edwards — to replace Cal- houn. However, Edwards withdrew her name from consideration later in the day. At the time, Anthony said the agriculture secre- tary needs a broad range of experience in the industry and that it is important for the department to have a secretary in place as early as possible to represent the interests of the state's agri- culture industry while the Legislature is in session. In an email response to questions Friday, Chastain, who serves as Boozman's agricultural liaison to the board, declined to commen about Hutchinson's choice. Ward is in line to become the state's third agricultur secretary, a post create by the Legislature in 200 when it reorganized severa agriculture -related agencie into a single department. The first, Richard "Dick' Bell, served from 2005 unti his retirement in June 2012 Before becoming agricul ture secretary, Bell serve and others about abnormal crashes in the Chevrolet Co- balt and Saturn Ion. Valukas also reported that GM later replaced the faulty ignition switch without alerting the public or changing the part number as required. Brooke Melton, 29, died in a March 2010 crash when the ignition switch in her 2005 Cobalt failed, causing her to lose control of the car. Her parents settled an initial lawsuit for $5 million, then asked GM to rescind the agreement and filed a second lawsuit last year alleging the automaker concealed the de- fects in the Cobalt and with- held evidence before the ac- cord was reached. Jim Cain, a GM spokes- man, confirmed the settle- ment and declined to com- ment further. as the president and chief executive officer of Rice- land Foods Inc. in Stuttgart t from 1981 to 2004. Calhoun, who was director of the state Department of Rural Services before his appoint- ment, was the choice of for- mer Gov. Mike Beebe, who recommended him to the Agriculture Board. Calhoun left the post Dec. 31. Ward, who unsuccessful- ly ran for Craighead County judge in 2014, spent four years on active duty with the Marine Corps, according to his campaign website. Upon his return, he attended ASU and University of Arkansas law school in Fayetteville. He also worked as a field coordinator in 2013 for U.S. Rep. Rick Crawford, R-Ark., doing agricultural -related work. Randy Veach, president of the Arkansas Farm Bu- reau, said in a statement that Ward's background will help him in the role of agricul- ture secretary in monitoring the state's agriculture indus- try, which generates more than $20 billion in economic activity annually. "We appreciate Gov. Hutchinson's diligence in finding the right person for this position and we will do everything we can to help Wes continue the positive work of Dick Bell and Butch Calhoun, his predecessors as Arkansas' secretary of ag- riculture," Veach said. Calhoun made $101,913 annually as agriculture sec- retary. The Agriculture Depart- ment oversees the state d Plant Board, the Forestry Commission, the Livestock 1 and Poultry Commission, the Aquaculture Division and the land surveyor, as well as programs that bene- 1 fit agriculture, such as dairy stabilization, farmers mar- kets, and other promotion d and marketing programs. t e 5 s continued from Page 1 D MacArthur Commons on ist Capitol Avenue is in the iver Market District, and the -w project — loosely dubbed -gion Lofts — is in the MacAr- ur Park Historic District. East apitol divides the two areas. lacArthur Commons is sub- antially larger with 59 apart- ients. Moses said the firm has of yet settled on a permanent ame for the complex, but the wners want to somehow in- orporate the word "legion" ecause of its close proximity ) the American Legion post at 15 E. Capitol Ave., Moses said. Moses Tucker will overhaul he Legion building for com- aercial reuse with three more partments in back, according o its application with the Little lock Historic District Com- nission. The existing post has offices and also serves as a bar/ dance hall and entertainment center for veterans. A call to he post commander went un- answered Friday. In contrast to contemporary MacArthur Commons, Legion Lofts would be of traditional design. "We wanted to be in harmo- ny with the surrounding historic district;' Barksdale said. It's be- ing pitched as two three-story houses connected by a three- story breezeway. A rendering Of the project makes it appear as one continuous structure sur- rounded by a security gate. MacArthur Commons i about halfway complete with an antici ated opening dal P Prices of June or July. The Legion property is expected to close in June with construction start- ing in July. The apartments — 12 two -bedroom units and 24 one -bedroom units — could be available in the summer of 2016, Moses said. The Legion currently owns what Moses Tucker is buying. The Legion apartments will be smaller — 650 to 950 square feet — and therefore at a lower rental rate than MacArthur Commons, though prices have yet to be determined. "We're trying to have price points, as much as we can, for every;' Barksdale said. 17 nk they'll fill a niche that's market rate but not at the very top of the market;' Mo- ses added. "That's what we're shooting for." The apartment building would face Rock Street with parking to the west and be- hind the building. The block also is home to a small, blond brick apartment building bear- ing the name "Whitlov,0' and to the Downtown Deli & Grocery facing Sixth Street. The new apartment build- ings are planned for what is now a paid parking lot. Though the project will do away with the 45-space lot, parking will be added back to accommodate upward of 35 tenant vehicles. Gating the area is necessary for security. "Currently, there is consid- erable foot traffic, loitering and the like in the alley that is not conducive to the development of a quality, historic neighbor- s hood," Moses Tucker said in h its application to the historic e commission. • Continued from Page 1 D with the nationwide average for a gallon of regular grade now at $2A5, up from $2.23 a month ago. Paul Ashworth, chief U.S. economist at Capital Econom- ics, said that about one-third of the drop in overall prices in Feb- ruary stemmed from a decline in profit margins at service sta- tions. Those margins had risen for a time last year as gas sta- tions took advantage of falling fuel costs to increase profits. But in February, the margins re- turned to more normal levels as gas prices rose. Ashworth said nothing in the report changed his view that the Federal Reserve next week will stop using the word "patient" to describe how long it is prepared to wait before starting to raise a key interest rate from its record low level Ashworth said he ex- pects the first Fed rate increase to occur in June. Robust hiring in the past 12 months and lower gasoline pric- es lifted consumer confidence in January and February to its highest levels since the reces- sion. But those trends have yet to improve consumer spending this year, a key driver of eco- nomic activity. The government reported that retail sales fell for a third month in a row in Feb- ruary as harsh winter weather depressed shopping. But many analysts look for those declines to reverse in the coming months. The economy is expected to turn in its stron- gest growth this year in a decade while overall inflation stays modest. The producer price gauge is one of three monthly inflation reports released by the Labor Department, which also produc- es the consumer price index and the import cost measure. Information for this article was contributed by Victoria Stilwell of Bloomberg News. Arkansas democrat ° rOAzette Business For story ideas and news tips: businesstips@arkansasonline.com Business Editor Rachel O'NealChaney(501) 378-3499 rchaney@arkansasonline.com Assistant Business Editor Jim Kordsmeier (501) 399-3655 ikordsmeier@arkansasonline.com Mail Arkansas Democrat -Gazette P.O. Box 2221 Little Rock, Ark. 72203 Fax (501)399-3672