News money 2008-05-10 Andanh.com

Thailand drops plan for rice cartel that would have fixed prices Tue, 06 May 2008 11:57 EDT
Thailand is dropping plans to create a Southeast Asian rice cartel that would have fixed the price of the skyrocketing commodity over food security concerns, the country's foreign minister said Tuesday.

The proposal to create an OPEC-like cartel was first floated last week by Prime Minister Samak Sundaravej to give rice producers greater control over rice prices, which have tripled since December. But the idea was heavily criticized by senators in the Philippines, a major importer, as well as some Thai rice exporters.

"We are not talking about setting up a rice cartel," Foreign Minister Noppadon Pattama said after a meeting with ambassadors from six rice exporting countries in Asia. "If Thailand sets up a rice cartel and fixes a price, that will make matters worse and worsen food security."

Instead, Noppadon said Thailand proposed holding a meeting on rice in the next month or two that would work with top Asian exporters including India, China, Vietnam, Myanmar, Cambodia and Pakistan to improve productivity. He also said exporting countries would discuss sharing of technology, market information and price information.

Noppadon denied that the about face on the cartel had anything to do with concerns about the impact on the Philippines.

Merger fizzle saps Yahoo's value Tue, 06 May 2008 02:03 EDT
Yahoo shares fell 15 percent Monday as hopes for the once-dominant Internet icon dimmed after Microsoft's withdrawal of a $47.5 billion takeover bid.

The sell-off wiped out nearly half the gain in Yahoo Inc.'s stock price since Microsoft Corp. made its initial offer Jan. 31 in an effort to challenge online advertising and search leader Google Inc. The downturn left Yahoo's market value about $14 billion below Microsoft's last offer.

Last-ditch talks between Yahoo and Microsoft were fruitless, leading Microsoft to walk away from a deal Saturday.

Yahoo shares shed $4.30 on Monday to close at $24.37, below Friday's close of $28.67, when investors were still hopeful about a deal.

Despite the backlash, analysts doubt Yahoo shares will fall back to their $19.18 pre-bid price, partly because some investors might still be holding out hope that the software maker will renew its takeover attempt if Yahoo continues to struggle.

Food inflation tied to higher feed prices Tue, 06 May 2008 02:03 EDT
Americans might be getting another helping of food inflation, and it seems likely to come from higher prices for chicken and pork, as the price of feed for livestock rises.

"American consumers are only just beginning to feel the impact of sharply higher food prices," said Pilgrim's Pride Corp. Chief Executive Clint Rivers. The nation's largest chicken producer posted a wider quarterly loss Monday as it paid more for feed and took a restructuring charge.

Tyson Foods Inc., the world's biggest meat producer, forecasts that its expenses will rise $1 billion this year, including $600 million for corn and soybean meal and $100 million on grain. The balance will come from higher prices for cooking oil, breading and fuel costs, the company said. Last week Tyson reported a $5 million second-quarter loss and withdrew its earnings outlook, saying feed prices were too volatile.

"I think food inflation has got to go up," said C. Larry Pope, president and chief executive of Smithfield Foods Inc., the world's largest pork producer, in a recent speech. "Everything that uses wheat, everything that uses corn, everything that uses corn syrup has got to go up."

The exception could be beef, as already high beef prices may not see the increases that chicken and pork could, said Jim Hilker, an agricultural economist at Michigan State University. "I'm not sure beef prices will go up a lot, but they won't come back down."

Big Brown's boost Tue, 06 May 2008 06:30 EDT
When Big Brown crossed the finish line Saturday to win the 134th Kentucky Derby, he carried United Parcel Service with him.

The UPS patch on the right leg of jockey Kent Desormeaux's riding pants revealed a special relationship between the horse and the company that claims brown as its official color.

UPS had sponsored a specific horse for the first time in its history and it hopes the payoff will come in the form of new business from racing fans worldwide, said Mike Mangeot, public relations manager for UPS Airlines in Louisville.

"We thought it was a real unique and great opportunity to have fun and promote the company," Mangeot said Monday.

The original sponsorship was just for the Derby, but "we are currently talking with the Big Brown people about the possibility of extending that," he said. No financial details were disclosed.

Oil nears $123 on $200 oil prediction, supply concerns Tue, 06 May 2008 20:57 EDT
Oil futures blasted to a new record near $123 a barrel Tuesday, gaining momentum as investors bought on a forecast of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to rise to new records of their own in coming weeks.

A new Goldman Sachs prediction that oil prices could rise to $150 to $200 within two years seemed to motivate much of Tuesday's buying, although a falling dollar and increasing concerns about declining crude production in Mexico and Russia contributed, analysts say.

The Energy Department raised its oil and gasoline price forecasts, but also predicted that high prices will cut demand more than previously thought.

Light, sweet crude for June delivery jumped to a new record of $122.73 a barrel before retreating to settle up $1.87 at a record $121.84 on the New York Mercantile Exchange.

Oil prices have nearly doubled from about $62 a barrel a year ago, which Goldman sees as a sign that the world is in the midst of a "super spike" in oil prices. Analyst Arjun Murti said in a research note released Monday that prices would ultimately force demand to fall sharply.

Stocks head for lower open with oil near $120 a barrel Tue, 06 May 2008 08:57 EDT
Wall Street headed for a modestly lower open Tuesday as investors awaited more first-quarter earnings reports and watched oil prices hit a new record near $121 a barrel.

With oil and other commodities prices at all-time highs, investors are worried that spending by U.S. consumers and companies may be crimped - even if other economic factors improve later in the year.

To investors' relief, however, companies outside the financial sector have fared better in the first quarter of the year than many analysts anticipated. Wall Street is hoping that Tuesday's earnings data brings more upbeat news.

Tuesday morning, homebuilder D.R. Horton Inc. and government-sponsored mortgage lender Fannie Mae release brings first-quarter results. Later Tuesday, after the market closes, investors will parse earnings from Walt Disney Co., one of the 30 companies that make up the Dow Jones industrial average, and Cisco Systems Inc., the computer networking equipment maker.

Dow futures fell 10, or 0.08 percent, to 12,957. Standard & Poor's 500 index futures fell 2.30, or 0.16 percent, to 1,406.00, and Nasdaq composite futures fell 3.50, or 0.18 percent, to 1,977.00.

$600 How will you spend it? Mon, 05 May 2008 02:03 EDT
The federal government's giving you money to burn -- if it's not already spent.

The much-discussed economic stimulus checks are hitting households nationwide. Some direct deposits have already been sent, and checks via snail mail will start rolling out May 9.

To see when yours will arrive, visit www.irs.gov and click on "Economic Stimulus Payments Start."

Eligible individuals will receive up to $600, while married couples get up to $1,200 plus $300 per kid.

So what's the best lighter fluid to help you torch your check?

PSC chairman reflects on his time with the agency Mon, 05 May 2008 02:03 EDT
Last month, state Public Service Commission Chairman Mark David Goss surprised many in announcing his departure from the agency that regulates utilities on issues including rates and construction.

His resignation comes three years before his second term as chairman would have expired. In his final days on the job last week, he sat down to discuss the reasons behind his resignation, Kentucky's critical energy issues, and offered his thoughts on improving the operation of the PSC. Goss declined to discuss pending cases, as well as certain past cases, including the controversial Kentucky American Water proceedings, saying it would be inappropriate.

On his decision to leave:

"In the course of those four-and-a-half years, I have maintained two households. I missed the last three years of my youngest daughter's high school years. I've driven back and forth to my hometown of Harlan at least once a week and sometimes two or three times a week. ... And quite frankly, I had just gotten a little bit tired of the travel. I feel like I have given my best to the commission and to the citizens of the state. I'm just ready to do something else. There's been no precipitating event. Nothing has happened. I just feel like it's time to go."

On what's next:

Pressure's on for Yahoo's CEO Yang Mon, 05 May 2008 02:02 EDT
Yahoo Inc. Chief Executive Jerry Yang has gotten what he wanted: a chance to prove his company is worth more than the $47.5 billion that Microsoft Corp. had offered to buy the Internet pioneer.

Faced with resistance from Yang and the rest of Yahoo's board, Microsoft withdrew its offer over the weekend.

Yang is facing a daunting challenge, as he will be pointedly reminded Monday, when investors are expected to show how little they think of Yahoo without a takeover bid on the table.

Yahoo's stock price had climbed nearly 50 percent since Microsoft's initial offer. Many analysts think the California-based company will surrender most or all of that gain, leaving its market value about $30 billion.

Disillusioned shareholders are bound to question whether the rejection of Microsoft's sweetened $33-per-share offer was driven more by emotion and ego than by sound business sense.

Profiting from soaring gas prices can be tricky Mon, 05 May 2008 02:03 EDT
Many investors like to buy what they know. Eat a lot of fast food, the logic goes, buy McDonald's Corp. Know a department store well -- snap up shares of Macy's Inc. It's trickier, though, when it comes to the energy market.

Trying to profit from soaring oil and gas prices can be tempting, but it's not without its pitfalls these days, with some observers blaming speculators for the stream of records set for these commodities since Jan. 1.

Most investors who want a piece of the action could invest in stocks of big oil companies, and many already do through investments such as pensions or 401(k) plans. But daring players might wade into the often frothy waters of the commodities markets themselves, investing in products that tap into futures contracts for crude oil, refined products and natural gas.

Bill Gerlach, portfolio manager for the Nationwide Natural Resources Fund, said that while he doesn't make recommendations on how people invest, he understands the inclination to try to seek some benefit from the higher costs of filling a gas tank.

"We are consumers, so it would make sense to actually own some personally," he said.

Business awards Mon, 05 May 2008 07:34 EDT
Virginia G. Carter, executive director of the Kentucky Humanities Council, has received an honorary doctorate of humanities from Union College. This honor is in recognition of years of dedicated service to the commonwealth in the area of the humanities. Each year, Kentucky Humanities Council programs like Kentucky Chautauqua, the New Books for New Readers program and the speakers' bureau reach each of the state's 120 counties.

The Web application e3.ky.gov, developed by staff of the Kentucky Education Cabinet, was named Best Application Serving the Public, it was announced at the Kentucky Digital Government Summit. The e3.ky.gov site, launched in 2007, is a self-service information portal for education, economic development and employment figures. Access to the site is free. The site currently averages more than 1 million hits a month.

Davis Marksbury, founder of Exstream Software by HP, and former chairman, president and CEO, has been selected for induction into the 2008 University of Kentucky College of Engineering Hall of Distinction. The Hall of Distinction inducts UK graduates who have made outstanding contributions to their profession, helping to confront and solve worldwide technological issues. Marksbury, a 1980 magna cum laude engineering graduate, has been an entrepreneur since age 26.

Meade Concrete Products of Lexington and Nicholasville has received the National Concrete Masonry Association Safety Award for the third consecutive year. Meade Concrete Products and its umbrella company, Meade Block and Stone, has a staff of 32 who have logged 66,000 work hours without injury. The company is at 2004 Catnip Hill Road in Nicholasville. For more information about the company, visit www. meadeconcreteproducts.com.

Twelve Kentucky businesses have become the first inductees in the Pacesetter Business Recognition Program, a new initiative designed to recognize small businesses that have made a significant impact in their community and region. The following businesses have been honored: Big Meadow Oil Co., Knob Lick; Custom Tool and Manufacturing Co., Lawrenceburg; Hitcents, Bowling Green; Interstate Natural Gas Co., Pikeville; Lawrence . LCM Co. , Lexington; Oscarware, Bonnieville; Pendleton Data Farm, Falmouth; SouthEast Telephone, Pikeville; The Gallaher Group, Ashland; Twin Rivers, Livermore; and Walbert Trucking, Glasgow.

Kentucky by the numbers: $106.59 Mon, 05 May 2008 07:34 EDT

The Kentucky Farm Bureau Federation Marketbasket Survey showed that for Kentucky the total cost of 40 basic grocery items in the first quarter of 2008 was $106.59, up about 7.5 percent, or $7.44, from six months ago. Of the items surveyed, 29 increased and 11 decreased in average price compared to the 2007 third-quarter survey. Overall, the cost for the marketbasket items showed an increase of about 12.5 percent, compared with one year ago. Kentucky Farm Bureau conducts its informal quarterly marketbasket survey as a tool to reflect retail food price trends. According to USDA statistics, Americans spend just under 10 percent of their disposable income on food annually, the lowest average of any country in the world. Compiled by News Researcher Linda Niemi

Patents Mon, 05 May 2008 07:34 EDT
The U.S. Patent Office issues patents weekly. These patents were issued Tuesday for inventors or assignees in the Lexington area:

Directionally dependent carrier isolator for an imaging apparatus. Inventors: Marc Alan Herwald, Michael Anthony Marra III and Brian Andrew Naro, all of Lexington. Patent No. 7,364,261 assigned to Lexmark International.

Nozzle members, compositions and methods for micro-fluid ejection heads. Inventors: Brian C. Hart of Georgetown; Gary A. Holt Jr., Melissa M. Waldeck and Gary R. Williams, all of Lexington; and Sean T. Weaver of Union. Patent No. 7,364,268 assigned to Lexmark.

Recombinant Stokesia epoxygenase gene. Inventors: David Hildebrand of Lexington and Tomoko Hatanaka of Hyogo, Japan. Patent No. 7,364,901 assigned to University of Kentucky Research Foundation.

Method of determining resonant frequency. Inventors: Craig Palmer Bush and Martin Christopher Klement, both of Lexington. Patent No. 7,365,613 assigned to Lexmark.

Microsoft drops effort to buy Yahoo Sun, 04 May 2008 02:03 EDT
Microsoft Corp. has withdrawn its $42.3 billion bid to buy Yahoo Inc., scrapping an attempt to snap up the tarnished Internet icon in hopes of toppling online search and advertising leader Google Inc.

The decision to walk away from the deal came Saturday after last-ditch efforts to negotiate a mutually acceptable sale price.

The talks reached a breaking point after Jerry Yang and David Filo, the co-founders of Yahoo, flew to Seattle from California in the morning to meet with Microsoft chief executive Steve Ballmer and Kevin Johnson, who runs the software maker's unprofitable online services division, according to someone familiar with the talks. The person was not authorized to speak publicly and asked not to be identified.

Clearly a deal is not to be," Ballmer wrote to Yang in a letter sent late Saturday.

Microsoft was willing to pay $47.5 billion, or $33 a share, up from the bid's current value of $29.40 a share, according to Ballmer's letter.

UBS reports 1Q net loss $11 billion Tue, 06 May 2008 18:13 EDT
Swiss bank UBS, hard hit by the U.S. subprime crisis, reported a first-quarter loss of $10.97 billion and said Tuesday it will slash almost 7 percent of its work force.

The 11.5 billion Swiss franc loss compares with a net profit of 3 billion francs in the same period last year. The company also said it would unload $15 billion in subprime and other mortgage-based securities from its portfolio.

UBS AG shares tumbled 4.5 percent to close at 35.22 francs ($33.41).

The bank warned investors last month to expect net losses of $11.42 billion from the first three months of the year after writing down about $19 billion on U.S. real estate and related credit positions.

Switzerland's largest bank said it will cut 2,600 jobs in its investment banking arm - which took the blame for most of UBS' record $37.4 billion in write-downs since last summer. Most of the job cuts will be in Britain and the U.S., the bank said.

Cisco 3Q profit beats subdued expectations Tue, 06 May 2008 19:32 EDT
Cisco Systems Inc.'s profit fell 5 percent in its fiscal third quarter but beat Wall Street's expectations, a sign the turbulent U.S. economy didn't rattle the world's largest networking equipment maker as hard as expected.

The San Jose-based company reported Tuesday it earned $1.77 billion, or 29 cents per share, during the three months ended April 26. That represents a drop of 5.4 percent from the $1.87 billion, or 30 cents per share, that Cisco earned during the same period a year ago.

Stripping out 9 cents per share in one-time charges for acquisition and employee stock-based compensation, Cisco earned 38 cents per share. That's 2 cents per share above the average estimate on the same basis from analysts polled by Thomson Financial.

Sales were also higher than analysts' subdued forecasts, coming in at $9.79 billion in the third quarter, a 10.4 percent jump over the year-ago period, when Cisco's sales were $8.87 billion. Analysts were expecting sales of $9.75 billion in the third quarter this year.

Wall Street wasn't expecting fireworks from Cisco in the third quarter because the technology bellwether lowered its sales-growth target in February. Cisco blamed weakness in the U.S. economy, which was causing big customers to delay or scuttle big purchases involving Internet infrastructure.

Housing picture worsens as Fannie sees price drop Tue, 06 May 2008 18:47 EDT
The outlook for the housing market darkened further Tuesday as the nation's largest buyer of home mortgages said it racked up more than $2 billion in quarterly losses and forecast a steeper drop in home prices this year.

If Fannie Mae's prediction proves true, the real estate woes could further shake the confidence of consumers already stung by rising food and fuel prices, and an anemic job market.

Home foreclosures are accelerating around the country, adding to the glut of unsold properties and further depressing prices. As a result, a growing number of homeowners are saddled with loans that outstrip the value of their houses.

"I think that right now we are in the belly of the cycle," Fannie Mae's president and CEO, Daniel Mudd, said during a conference call with analysts.

Mudd said home prices fell in the first quarter "faster than anyone anticipated" and that the company foresees a decline of 7 percent to 9 percent for the year, compared with earlier forecasts of a 5 percent to 7 percent drop.

Swiss bank UBS reports 1Q net loss of $11 billion Tue, 06 May 2008 02:57 EDT
Swiss bank UBS AG announced Tuesday it would cut 5,500 jobs and reported a net loss of 11.5 billion Swiss francs ($10.97 billion) for the first quarter of this year.

This compares with a net profit of 3 billion francs in the same period last year.

The losses translate to 5.63 francs ($5.35) per share, compared with earnings per share of 1.43 francs in the first quarter of 2007.

The bank warned investors last month to expect net losses of 12 billion Swiss francs ($11.42 billion) for the first three months of the year after writing down about $19 billion on U.S. real estate and related credit positions in the period.

Switzerland's largest bank said it will cut 2,600 jobs in its investment banking arm - blamed for the majority of failures that led to a record writedowns of $37.4 billion since last summer. A further 2,900 jobs will be slashed in other parts of the business, bringing the total number of job cuts by mid-2009 to 5,500.

And behind the door of house for sale? A new car! Mon, 05 May 2008 08:05 EDT
So you have a house that you want to sell for $899,900, but you quickly discover that there are lots of other houses available in that price range.

What are you going to do?

If your name is Rick Langley and you want to move to Kansas City to take over a business you just bought, you might turn to your Realtor and ask, "What can we offer as an incentive? Can I give somebody a car?"

His Realtor is his longtime friend Mike Wheatley , and Wheatley had to do some checking around before he could tell Langley that the car was a go.

"It is so unusual," Wheatley said.

Papa John's cooks up lunch-sales strategy Thu, 08 May 2008 00:55:00 EST
Three years after Papa John's International tried to tap into breakfast with a pizza omelet, the Louisville chain is looking to the lunch crowd as part of an effort to boost sales.

Horsemen face lower purses at Churchill Thu, 08 May 2008 00:55:00 EST
Churchill Downs Inc.'s chief executive expects purses to be cut at the Louisville racetrack next week because of a dispute with horsemen over account-wagering revenues.

Genscape still thrives after sale Wed, 07 May 2008 23:05:00 EST
Louisville-based Genscape, an energy-information provider that became one of the city's entrepreneurial success stories, continues to thrive following its sale to a British company in 2006, Chief Executive Sean O'Leary told the Venture Club of Louisville yesterday.

Fuel prices jump at pump Wed, 07 May 2008 23:05:00 EST
The price for a gallon of regular unleaded gasoline rose to $3.86 across much of the Louisville area yesterday, as crude oil on the New York Mercantile Exchange came precariously close to $124 a barrel.

ResCare's profit up 18% Wed, 07 May 2008 23:06:00 EST
ResCare, a Louisville-based provider of services to the elderly and people with disabilities, said yesterday that its profits increased 18 percent during the first three months of the year, compared to the same period last year.

WiMax network forming Wed, 07 May 2008 23:06:00 EST
Clearwire and Sprint Nextel have resurrected their plan to offer high-speed mobile Internet service with the help of some deep-pocketed supporters.

Q: Is there a way I can estimate the value of my home? Wed, 07 May 2008 23:07:00 EST
A: The best way is to compare it to similar houses that have sold recently in your area.

Eighmey, Kosair Children'spresident, plans to retire Wed, 07 May 2008 23:08:00 EST
Doug Eighmey, president of Kosair Children's Hospital, plans to retire from that post at the end of this year.

NLRB seeks order to force Massey to hire union workers Thu, 08 May 2008 08:53 EDT
The National Labor Relations Board is seeking a federal injunction to require coal operator Massey Energy to rehire 85 union members at a West Virginia mine.

An NLRB administrative law judge ruled last November that Massey violated federal labor laws by refusing to rehire the miners after acquiring the mine from Horizon in 2004.

On Thursday, the agency is scheduled to argue its contention that Massey and its Spartan Mining subsidiary will keep violating federal labor laws without an injunction.

Massey has tried to get the NLRB request dismissed. The company contends former employees weren't hired because better replacements were found. It also says it didn't have to bargain with the United Mine Workers because the subsidiary that acquired the mine wasn't a legal successor to Horizon.

Papa John's enjoying sweet taste of online success Thu, 08 May 2008 02:03 EDT
Sometimes during peak hours, the phones are silent in Andy Freitas' pizza restaurants, yet the cooks are busy keeping pace with hungry customers.

That's because orders are rolling in through the Internet.

"It's pretty amazing not to hear a phone ring on a busy night," said Freitas, an operating partner with the largest Papa John's franchisee in the Washington, D.C., market.

In the past seven years, Papa John's International Inc. has made a lot of dough from online ordering: more than $1 billion to be exact.

The nation's third-largest pizza operator trumpeted the $1 billion milestone Wednesday, noting that its U.S. online sales have been growing at an average clip of more than 50 percent a year. In 2001, the chain's online sales totaled $20.4 million. Last year, its online sales approached $400 million.

Toyota projects first full-year profit drop in 7 years Thu, 08 May 2008 09:28 EDT
Toyota said the strong yen and weaker U.S. sales took a bite out of January-March earnings and projected worse was to come - a 27 percent plunge in its full-year profit.

It would be the first drop in full-year profit in seven years for the automaker.

The results and outlook released Thursday highlight how the tough North American auto market is hammering profits. Meanwhile, unfavorable currency swings added to a growing list of problems for Toyota Motor Corp., including soaring material and energy costs and a stagnant auto market in its home market of Japan.

"There is no mistake that things are seriously tough - even for Toyota," said Tsuyoshi Mochimaru, auto analyst at Lehman Brothers in Tokyo.

Still, the company appeared to be faring better than its American rivals. GM lost $3.3 billion in the first quarter. Ford had a surprise profit of $100 million for the same period but expects to lose money this year as the U.S. auto market deteriorates.

More shoppers seeking shelter from economy in discounters Thu, 08 May 2008 19:17 EDT
Caught in the maelstrom of higher gas and food prices, Americans - even more affluent ones - are seeking shelter in wholesale clubs and discount apparel chains.

Low-price operators Costco Wholesale Corp., Wal-Mart Stores Inc. and TJX Cos. reported better-than-expected sales on Thursday, while traditional apparel chains J.C. Penney Co. and Limited Brands Inc. struggled.

"The smart shopper is in full bloom," said Craig R. Johnson, president of consultancy Customer Growth Partners. "They're looking to stretch their household budgets, and if you can get decent quality merchandise, why pay full price?"

"Smart shopping" is sweeping through all wage classes, analysts say, and it could spell trouble for retailers' profits and for the economy, too.

To lure customers, apparel chains are discounting more. First-quarter profits are slated to be down by 14.9 percent, according to Ken Perkins, president of RetailMetrics LLC, a research company in Swampscott, Mass. That compares to a projection in January of 5.3 percent profit growth.

Dollar mixed in Europe ahead of ECB rate call Thu, 08 May 2008 07:48 EDT
The dollar was mixed against the euro and pound on Thursday as markets awaited an interest rate decision from the European Central after the Bank and Bank of England left its rates steady.

The 15-nation euro bought $1.5337 in late morning European trading, down from the $1.5401 it purchased in New York late Wednesday. The British pound edged higher to $1.9571, from $1.9531 after the Bank of England left its rate unchanged at 5 percent.

The dollar fell to buy 104.10 Japanese yen from 105.26 yen in New York overnight.

Analysts said the dollar was holding onto its recent gains against the euro on sentiment that the U.S. Federal Reserve Bank was likely nearing the end to its volley of rate cuts, which have brought the interest rate down to 2 percent.

That's in contrast to the ECB, which has kept its rate unchanged at 4 percent and is expected to do so again later Thursday.

Wal-Mart same-store sales rise 3.2 percent in April Thu, 08 May 2008 07:43 EDT
Wal-Mart Stores Inc. says sales of groceries and items such as flat-screen TVs boosted its same-store sales in April above Wall Street expectations.

The world's largest retailer said same-store sales rose 3.2 percent, easily beating Wall Street's 2.1 percent growth forecast. Including fuel, same-store sales climbed 3.8 percent.

The sales figure, which counts only stores open at least one year, is considered a key measure of a retailer's fiscal health.

Same-store sales rose 2.6 percent at namesake Wal-Mart stores and 6.6 percent at Sam's Club, excluding fuel.

Total sales for the four weeks ended May 2 rose 10 percent to $29.18 billion.

Massey subsidiary cited for 3 violations in W.Va. mine fatal Wed, 07 May 2008 21:28 EDT
Coal operator Massey Energy Co. has been cited for safety violations that federal investigators say contributed to the death of a West Virginia miner late last year.

The U.S. Mine Safety and Health Administration found the violations while investigating a Dec. 4 accident at an underground Massey mine in Kanawha County. Miner David Neal fell about 39 feet when a conveyer belt he was repairing started unexpectedly. The 57-year-old died 10 days later.

MSHA noted a series of problems at the mine in a report released Wednesday. Among other things, MSHA cited Massey's Mammoth Coal Co. because the belt had inadequate startup alarms, including one that wasn't working, according to the report.

Inspectors also cited the mine after finding the power to the belt hadn't been turned off before Neal started work and the circuit breaker had a broken handle, making it inoperable.

Massey spokesman Jeff Gillenwater declined immediate comment on the report. However, he noted in an e-mail that the company has conducted additional training on procedures for locking and tagging equipment and using fall protection equipment.

Churchill Downs reports first-quarter profit Wed, 07 May 2008 14:23 EDT
Churchill Downs Inc. reported an $800,000 profit for its first quarter -- a time when the Louisville-based company usually posts a loss because of the lack of live racing at its tracks.

In announcing the earnings late Tuesday, president and chief executive Bob Evans attributed the gains to insurance recoveries from Hurricane Katrina, returns from online betting and higher-than-expected returns from slots operations in Louisiana.

Evans also said, however, that disputes with horsemen over how to divide revenue are hurting the company. In Florida, the opening of a slots site at Calder Race Course will be delayed, he said.

On Wednesday, in a conference call with investors, Evans announced cuts in purses at both Calder and Churchill Downs, also because of the lack of agreement with the trainers.

Horsemen are guaranteed part of the wagering revenue but must negotiate the percentages.

Toyota raising prices on some models Wed, 07 May 2008 12:56 EDT
Toyota Motor Corp., the world's second-biggest automaker by annual vehicle sales, is raising its prices on some U.S. models later this month amid increased worries about its profit growth in the American market.

The price increases, which will start in the middle of May, include a hike of $200 on the 2008 Yaris sedan, boosting the cost of the base model to $12,425, with higher prices for models with extra features. The 2009 Camry will go up $200, to $18,920 for a model without any extras, the automaker's U.S. unit said in a statement.

The base hybrid Camry, introduced as a 2007 model in late 2006, will cost $300 more, at $25,650, Toyota said.

Like other Japanese automakers, Toyota is enjoying sales growth while American automakers are struggling. Soaring gas prices have increased demand for smaller, fuel-efficient cars that Japanese automakers are reputed for.

Toyota faces a challenge in maintaining profits partly because of the recent decline in the dollar, which erodes the value of overseas earnings of Japanese exporters. Worries are also rising about how a U.S. economic slowdown may hurt sales.

Paper to offer employee buyouts Wed, 07 May 2008 02:07 EDT
The Lexington Herald-Leader Co. is offering voluntary buyout packages to selected employees to reduce its work force in the face of declining revenue from advertising and circulation.

An estimated 4 percent of the newspaper's 385 full-time employees and managers are expected to be accepted by the company for the program, Publisher Timothy M. Kelly told employees Tuesday.

The actual total could be higher or lower than 15, depending on who applies.

Employees in certain jobs, including advertising salespeople, will be ineligible for the program. Kelly declined to say how many employees would be offered the buyout.

Written details were distributed Tuesday. Benefits include up to 26 weeks' pay and extended health insurance coverage.

Extreme makeovers hit restaurant menus Wed, 07 May 2008 02:07 EDT
Struggling with soaring food costs and cash-strapped customers, restaurants across the country are swapping expensive ingredients for cheaper fare and adding new dishes that won't break their bottom line.

Call it a menu makeover: Steakhouses are adding buffalo meat alongside filet mignon, pizza joints are trying new cheese products and seafood spots are replacing pricier entrees with humbler dishes such as catfish.

The changes come as record oil prices and surging global demand for staples like rice, fish, poultry and wheat have pushed wholesale food prices up almost 8 percent in the last year, the biggest increase in three decades, according to the National Restaurant Association.

Food commodities prices have mostly come down from record highs reached earlier this year, but wholesale flour prices have doubled in the last year, egg prices have shot up 70 percent and cheese is up 25 percent.

"This is definitely an unprecedented period of wholesale food inflation. Operators must focus on cost, and one way is using different ingredients," said Hudson Riehle, senior vice president of research at the 380,000-member National Restaurant Association.

Speaker to women: Go public Wed, 07 May 2008 02:07 EDT
Diana Villiers Negroponte tries to encourage young women to enter public life, such as running for Congress or governor of their state.

And that's what she was doing Tuesday when she spoke to more than 350 women attending the ninth annual Women's Business & Leadership Conference at the Radisson Plaza Hotel.

"The routine can be grinding," and you must spend time away from your family, but the rewards are many, she said.

Negroponte knows the challenges and compensations of public life firsthand. She is senior fellow at the Brookings Institution, one of the oldest think tanks in Washington, D.C. For many years she has focused on international human rights issues.

Her husband, John D. Negroponte, is deputy secretary of state, the No. 2 position in the State Department. He is also a former U.S. ambassador to Iraq.

Check insurance policies for savings Wed, 07 May 2008 07:38 EDT
While insurance is a necessary expense in just about every budget, it is one worth examining in tight budget times.

You can get a break on car insurance for good behavior. Ask about discounts if you've gone a certain number of years without an accident or ticket, store your car in a garage or drive less than a certain number of miles each year.

If the kids have left for good, take them off the policy; if they are simply away at college, ask about a distant-student credit.

Look at raising deductibles on car and home insurance and switching from monthly payments of insurance premium to annual payments. Only you know if you are disciplined enough to save the lump you'll owe your insurer each year.

Also, see if you can get rid of private mortgage insurance. If you have 20 percent equity in your home, you could qualify to start saving that money.

Gas jumps nearly 3 cents to record; oil crosses $124 Thu, 08 May 2008 19:17 EDT
Gasoline and crude oil jumped to new records Thursday, with gas rising 3 cents to an average national price of nearly $3.65 a gallon and oil crossing $124 a barrel for the first time.

At the pump, the average price of a gallon of regular gas nationwide rose 2.7 cents to a record $3.645, according to a survey of stations by AAA and the Oil Price Information Service. Diesel prices also rose, adding 0.9 cent to match a record national average of $4.251 a gallon.

Gas prices tend to lag oil futures, and with crude rising to a new record near $124 a barrel Wednesday and likely headed higher, it's widely expected the average price of gas will soon rise as high as $4. Motorists in many areas, including parts of California and Hawaii, are already paying that much, or more.

"If oil prices go the way that pundits are expecting, there's no way we'll stay under $4 a gallon," said Fadel Gheit, an analyst at Oppenheimer & Co. in New York.

Meanwhile, light, sweet crude for June delivery rose 16 cents to reach a settlement record of $123.69 a barrel on the New York Mercantile Exchange Thursday after spending much of the day in negative territory. But in after-market electronic trading, prices shot to a new trading record of $124.61. Analysts said volume was quite low, making it easy for oil to keep pushing higher.

Stocks rise modestly even as oil extends record high run Thu, 08 May 2008 18:01 EDT
Wall Street closed a quiet session with a moderate advance Thursday, with energy and other commodities companies leading the market as oil prices extended their record-breaking run.

The price of crude oil swept past $124 a barrel in late New York Mercantile Exchange trading, while gasoline rose to a new record of its own at the pump, climbing to a national average of nearly $3.65 a gallon.

Although the rising price of oil ignited concerns about inflation on Wednesday, knocking the Dow Jones industrial average down more than 200 points, stocks managed to hold on to their gains even as oil rose Thursday. Some of the big gainers were the companies that would benefit the most from higher commodities prices - the oil companies and metals producers like Alcoa Inc. - and they helped lift the major indexes.

Stocks also rose after retailers issued April sales results that, while not strong overall, were less gloomy than expected. The data suggested that high energy costs are leading consumers to alter their spending, and Wal-Mart Stores Inc. was one of the beneficiaries of that trend. But some apparel stores - whose merchandise falls into the category of discretionary items - again saw depressed sales as consumers budgeted more for gasoline and food.

Financial stocks were the worst performers of the day. Philip S. Dow, managing director of equity strategy at RBC Dain Rauscher in Minneapolis, said investors likely are still jittery over the sector, with continued concern about whether the companies have problems on their books beyond subprime mortgages. "Our guess is that the worst is not over for the financials on a fundamentals basis," he said.

Will love of mom overcome economy worries on Mother's Day? Thu, 08 May 2008 16:06 EDT
It's a few days before Mother's Day and Robert Jenkins jumps every time the phone rings.

He's got about 220 reservations at his Cajun-style restaurant, Bayou, for brunch on Sunday. Last year, he had 300 reservations - but with the economy sagging, business is down.

Like many in the industry, he believes that love for Mom will trump fears about the economy. So when the phone rings this week, he's hoping it's someone booking a spot in his 115-seat dining room overlooking the Milwaukee River.

"You have high expectations and this is one of those markers that you have that you need to perform well on," said Jenkins, who owns the restaurant with his brother.

Mother's Day is the restaurant industry's busiest day of the year. If the holiday doesn't go well, profits could be affected for the rest of the year in what's already been a tough environment. Though Americans are projected to spend more than $1.5 billion each day this year at restaurants, many are pulling back in the wake of rising gas and food prices and shaky job markets.

Best Buy teams up with leading European cell phone retailer Thu, 08 May 2008 16:26 EDT
Consumer electronics chain Best Buy Co. Inc. is establishing a foothold in the European market with a $2.1 billion investment in the continent's largest cell phone retailer, allowing the American company to roll out its trademark big box stores in Europe, the companies said Thursday.

The London-based Carphone Warehouse Group PLC will put its 2,400 Carphone Warehouse and Phone House stores in Europe into the new joint venture.

In a conference call with analysts, the companies said they have been speaking for four years and have collaborated for two, developing the Best Buy Mobile concept for Best Buy stores in the U.S., and bringing Best Buy's Geek Squad, a 24-hour computer support task force, to Europe.

"We are partnering with an incredibly powerful and incredibly successful organization," said Charles Dunstone, chief executive of The Carphone Warehouse.

Executives from both companies declined to say how many Best Buy stores will open in Europe, or in which markets, because they didn't want to tip off the competition. However, they did say the stores will come in a range of sizes and will start opening next year.

Big Meadow sets pace
Betty Gentry and Sheila Pruitt’s joint business venture, Big Meadow Oil, certainly evolved beyond its founders’ original goal.

Library offers business book club
It is recommended that anyone working in business read at least one “business” book a month as a tool for staying on the cutting edge.

Tobacco getting harder to buy Fri, 09 May 2008 22:11:00 EST
Cigarettes are getting harder to find. More retail chains are dropping them, and for the first time, officials in a few states want to ban pharmacies from selling them.

Oil prices continue to climb Sat, 10 May 2008 02:06:00 EST
Oil rose above $126 a barrel for the first time yesterday in New York trading, bringing its advance this week to nearly $10, as investors questioned whether a possible confrontation between the U.S. and Venezuela could cut exports from the OPEC member.

FedEx trims its earnings outlook Fri, 09 May 2008 22:11:00 EST
FedEx cut its fiscal fourth-quarter earnings expectations yesterday, blaming continuing increases on fuel costs. The UPS competitor, based in Memphis, Tenn., said it expects profits of $1.45 to $1.50 per share for the three months ending May 31, down from the previous $1.60 to $1.80 range.

Are mortgage rates high or low right now? Fri, 09 May 2008 22:13:00 EST
A: Compared to a year ago, they're a little lower. Mortgage company Freddie Mac says the average in the Southeastern states this past week was 6.04 percent with a fee amounting to 0.3 percent of the loan, down from 6.10 percent a year ago with a 0.7 percent fee.

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