08/04/2010 (2:50 pm)

Community Bank of Fla. profits in Q2, restates 2009 as loss

Filed under: technology |

Community Bank of Florida moderately increased its earnings in the second quarter, but restated its 2009 results to change what it thought had been a profitable year into a loss.

The Homestead-based bank filed its amended 2009 results on June 4 with the Federal Financial Institutions Examination Council. Instead of the $229,000 gain it originally reported in February, the bank lost $3.8 million last year. The main difference was the bank’s revision of its expense to reserve for future loan losses, which it increased to $11.6 million, more than double the $5.1 million expense it originally reported.

Sometimes, when banks review their problem loans, they determine drops in the appraised values of the collateral properties, which cause them to go back and take additional reserves.

Things went better in the second quarter for Community Bank of Florida. It earned $629,000, up from $570,000 in the first quarter. Its expense to reserve for future loan losses declined to $288,000 from $408,000 in the first quarter.

However, the bank’s net interest income fell to $4.8 million in the second quarter from $5.1 million in the first quarter.

The bank’s battle with a higher-than-average level of problem assets continued. As of June 30, Community Bank of Florida had $47.9 million in noncurrent loans, representing 11.75 percent of its total loans. As of March 31, it had $49.7 million in noncurrent loans, representing 11.59 percent.

The bank achieved that reduction by completing foreclosures on $6.4 million in additional properties during the second quarter, ending the quarter with $7.7 million in repossessed properties. It also charged off $4.6 million in bad loans during that time.

Its $9.9 million reserve for future loan losses covered 21 percent of its noncurrent loans as of June 30. That’s well below the coverage ratio of most banks and could leave Community Bank of Florida vulnerable to additional losses should it need to charge off more loans, especially given that nearly half of its problem loans are in the hard-hit sectors of construction and land holdings.

Community Bank of Florida was the 19th-largest bank chartered in South Florida as of March 31, with $592 million in assets. By midyear, its assets declined slightly, to $591 million. While its deposits increased to $489 million from $487 million, the bank’s loans dropped to $397 million from $421 million over that period.

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07/28/2010 (11:39 pm)

Europe’s big banks pass stress tests

Filed under: legal |

Most of Europe’s biggest banks passed stress tests aimed at shoring up confidence in the region’s economy, officials said Friday.

Officials led by the European Central Bank tested 91 banks, and all the major lenders passed. One state-owned German real estate bank, one Greek bank and five smaller Spanish banks failed and will have to raise new funds.

The test showed Europe’s banks could suffer 566 billion euros ($730 billion) in asset writedowns and trading losses over the next two years should the region suffer a recession and an interest rate spike tied to national solvency fears.

But officials said most banks would emerge from a downturn in good shape, with the regionwide bank capital level slipping by a point to 9%. The minimum safe level for the sake of the exercise was 6%.

Supervisors also said they would "welcome" individual banks’ publication of further information on the results of their individual examinations, which could afford investors further insight into lenders’ condition.

Policymakers published the test results in hopes of restoring confidence to European funding markets, which have been wracked by fears that a sovereign debt default will lead to another slew of bank failures.

The design of the test raised some eyebrows in the markets. Supervisors said they discounted the value of sovereign bonds held by banks, but only for those bonds held in the banks’ trading accounts paydayloans. Bonds that the banks plan to hold to maturity weren’t discounted under the test.

This leaves open the possibility that a bank holding Greek government bonds, for instance, could pass the test — and still suffer crippling losses in the case of a Greek default.

That’s a major weakness of the test, and will feed skepticism about whether the exercise actually accomplished anything.

Even so, the tests are likely to have at least a modestly positive effect on sentiment in the banking sector in Europe.

Stress tests conducted in the United States faced similar skepticism last year, with many observers contending they weren’t tough enough to show how banks might perform in a deep downturn.

A year later, banks are still under intense criticism for their failure to extend more loans to small businesses at a time of high unemployment. But few observers worry now about whether the biggest U.S. banks could withstand another economic downturn, which shows the stress tests worked much as backers like Fed chief Ben Bernanke promised. 

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07/22/2010 (9:54 am)

Emergent boosts business outlook

Filed under: management |

Rockville-based Emergent BioSolutions Inc., which supplies the government with the only regulator-approved vaccine for Anthrax, boosted its full-year forecast for sales and earnings based on rising sales of that vaccine.

The company now forecasts full-year revenue of between $275 million and $300 million, up from a forecast in May of between $235 million and $255 million. It expects 2010 net income of between $40 million and $50 million, compared to its previous forecast of between $20 million and $30 million.

As much as $190 million in 2010 revenue will come in the second half of the year, it says, after a contract modification that increases the number of doses of BioThrax the government will buy for its stockpile this year.

“We are extremely pleased with the results of our continuous process improvement program for BioThrax and expect this program to drive the maintenance of positive production metrics going forward,” said Emergent BioSolutions (NYSE: EBS) Chief Operating Officer Daniel Abdun-Nabi.

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07/07/2010 (7:00 pm)

Venrock raises $350M fund

Filed under: technology |

Venrock has announced the closing of a $350 million diversified venture capital fund.

The fund will focus on investments in early-stage technology, health-care and energy companies.

With the close of Venrock VI, the firm has approximately $2.2 billion under management payday loan.

Venrock, which has an office in Palo Alto, was originally the venture capital arm of the Rockefeller family.

Source

06/27/2010 (2:27 am)

Trucking industry freight hits a pothole in May; remains up for year

Filed under: online |

The trucking industry took a step back in May, with tonnage slipping for the first time since February but still up from a year ago. The American Trucking Associations, a trade group, on Friday said its advance index of for-hire truck tonnage fell 0.6 percent in May, down from a revised 1 percent increase in April. The index is adjusted for seasonal variations. With the May decline, the index moved to 109.6. The base year of 2000 equals 100. ATA Chief Economist Bob Costello said that despite the dip, he saw industry trends continuing to improve. “There is no way that freight can increase every month, and we should expect periodic decreases,” he said in a release. “This doesn’t take away from the fact that freight volumes are quite good, especially considering the reduction in truck supply over the last couple of years.” Compared with May 2009, tonnage was up 7.2 percent, the sixth straight year-to-year improvement. For the first five months of the year, tonnage was 6.2 percent better than during the same period last year. Not seasonally adjusted, the ATA index fell 2.8 percent to 108.3 between April and May. Earlier this month, Overland Park-based trucking giant YRC Worldwide Inc. (Nasdaq: YRCW) said freight volumes continued to rise in June and it probably would report positive unadjusted earnings for the second quarter. http://kansascity.bizjournals.com/kansascity/stories/2010/06/14/daily1.html Trucking has been a leading indicator of the U.S. economy’s health, hauling 68 percent of tonnage carried by domestic modes of freight transportation.

Source

06/03/2010 (11:06 am)

Lambert airport ready for Phase II of renovation

Filed under: marketing |

It has been called the front door to St. Louis.

So in an effort to improve the first impressions of visitors who walk through that door, officials at Lambert-St. Louis International Airport announced a major makeover in early 2007.

But more than three years later, the biggest renovation in the airport’s history — at a cost of $105 million — remains a major piece of unfinished business. Turbulence in the airline industry forced the airport to break the Airport Experience project into bite-sized chunks.

The first phase of work focused on the most pressing upgrades and is being wrapped up right now at a cost of $20 million. Clunky baggage carousels were replaced on the ground floor of the Main Terminal. The dingy domed ceiling above the main ticket counters has been restored with a bright, white surface. And many of the directional road signs have been replaced.

"You have to have an airport that you can compete with both cosmetically and aesthetically," said Airport Director Rhonda Hamm-Niebruegge. "The airlines don’t want their customers, if their flight is delayed for five hours, to sit there and have nothing to do. The more your airport has to offer helps the airlines when they have off-schedule days."

Later this summer, the airport will embark on the next phase of work — a $50 million interior renovation of the aging main terminal, and the A and C concourses.

The work will include:

— Replacing the hodgepodge of counters and terrazzo floors in the main ticketing lobby.

— Updating restrooms with new tile and fixtures.

— Improving the C concourse security-screening checkpoint.

— Brightening the cavernous lower level by removing the dark ceiling slats and adding recessed lighting.

— Incorporating art displays and a lower-level performance stage.

Lambert officials said the work would not only make the terminal more inviting, but would provide a boost to the beleaguered area job scene. The second wave of renovation work is expected to take about two years to complete and support about 150 skilled construction workers.

The improvements can’t come soon enough for passengers who use the airport.

"It’s dark and depressing down here" on the baggage-claim level, said Julie Kujawa of Mount Vernon, Ill., who was picking up family members returning from Orlando, Fla. "And there’s not much down here. The walls are dark. The ceilings are low."

Amy and Don Palumbo of suburban Washington said they had flown into Lambert before and had always been struck by the low ceilings and the cramped feeling they induce on the lower level.

"Compared to other airports," Amy Palumbo added, "it’s kind of old."

Gone from the original Airport Experience plan are the canvas awnings reaching from the Main Terminal to the hourly parking garage across the street payday advances. However, Hamm-Niebruegge said some projects could be reconsidered, if needed, when the second phase of work was completed in the fall of 2012.

The project will be financed using bonds sold in June 2009, Hamm-Niebruegge said. "The bonds are long sold. So you have to move forward with the project. They were sold for that specific purpose. That decision is not a returnable decision."

Even if it were, she said, the airport would still move forward with it.

One reason is that there were as many airline seats in June from Lambert as there were one year ago, although there are fewer cities served by nonstop flights from Lambert. That is largely because most of the aircraft added to the Lambert mix are larger planes, and they are replacing mostly regional-jet flights that were axed by American.

Bonds will be repaid with airport revenue, said Hamm-Niebruegge.

The piecemeal approach reflects the gradual erosion in flights at Lambert.

Last month, American Airlines cut its daily flight schedule by more than half to 36 daily flights to nine cities. By comparison, there were 82 daily flights to 20 destinations in November.

Other airlines — most notably Southwest Airlines — have jumped in to fill part of the void. Southwest, which is now the dominant carrier in the St. Louis market, announced nine additional daily departures to six new nonstop destinations. Four of those cities that Southwest flies to — San Diego, Nashville, New Orleans and Raleigh-Durham, N.C. — would have been unreachable by nonstop flights after American’s cuts. The two other cities — Los Angeles and Seattle — also will be served by competitors.

United Airlines and Delta Air Lines also have added flights.

Local business leaders have been clamoring for airport improvements since American Airlines made its first deep cuts to St. Louis flights in 2003. Airport staff and outside consultants began working on plans to improve the Main Terminal — which is significantly older and darker than the East Terminal.

Richard Fleming, president and chief executive officer for the St. Louis Regional Chamber and Growth Association, said air service came up consistently when companies considered expansion or relocation to a community — and that included the perception and appearance of the airport itself.

"Obviously, in the environment of really tough times in the industry, the Lambert folks have had to be prudent in how they have modified the scope and timing of the improvements," Fleming said.

Source

05/22/2010 (1:03 am)

Consumer prices up 2.2% for the year

Filed under: money |

A key index of prices paid by consumers ticked lower in April but is still higher from a year earlier, the government said Wednesday.

The Consumer Price Index, the Labor Department’s key measure of inflation, has increased 2.2% over the last year. But that is the smallest 12-month increase since January 1966.

"Inflation continues to be a non-issue," said Anika Khan, Wells Fargo economist, in a research note.

On a monthly basis, CPI fell by 0.1% in April. Economists surveyed by Briefing.com expected a 0.1% jump. The decline was largely due to a 1.4% drop in the energy index, the report said.

Despite its April decline, the energy index has soared 18.5% over the last year.

The small overall CPI increases "should continue to allow the Fed to keep short-term interest rates low," Khan said.

Core CPI: The even more closely watched core CPI, which excludes volatile food and energy prices, rose 0.9% on an annual basis and was unchanged over the month.

Index-by-index: The food index jumped 0.5% on an annual basis. It rose 0.2% in April, the same increase as the previous month.

The indexes for recreation, new and used motor vehicles, and medical care also posted increases in April. Other sectors declined, including apparel and household furnishings.

CPI is based on prices of goods and services that people buy for day-to-day living. Prices are collected each month in 87 urban areas across the country, from about 4,000 residences and 25,000 stores. 

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05/15/2010 (6:00 am)

Alpin Haus to open Clifton Park store May 14

Filed under: legal |

Alpin Haus Pools & Ski Shop will celebrate the opening of its new store in Clifton Park, N.Y., on May 14.

The 6,000-square-foot store is located at Clifton Park Center at 22 Clifton Country Road.

Alpin Haus President Andy Heck will be joined by local officials at 2 p.m. to mark the store’s opening.

The store sells pools, patio furniture, spas, skis, snow boards and winter apparel. It also offers computerized water testing, weekly pool cleaning and service for all makes of pools.

Alpin Haus recently closed its former store in town on Sitterly Road along the Northway that sold recreational vehicles and pop-up trailers. That property is for sale.

Alpin Haus continues to sell RVs at its headquarters in Amsterdam and in Wilton. The company is the largest, independently-owned RV dealer in the Northeast.

Source

05/04/2010 (7:06 pm)

CPUC OK’s PG&E solar photovoltaic program

Filed under: marketing |

The California Public Utilities Commission Thursday authorized a five-year solar photovoltaic program to develop up to 500 megawatts of solar photovoltaic facilities in the range of 1 to 20 megawatts in Pacific Gas and Electric Co.’s service area.

The photovoltaic program allows for development of solar facilities owned by PG&E and also owned by third parties.

Under the utility-owned portion of the photovoltaic program, PG&E is authorized to install up to 250 megawatts of photovoltaic facilities from 1 to 20 megawatts in size in its service area at a rate of 50 megawatts per year.

Similarly, under the third-party owned portion of the program, PG&E can solicit energy from 250 megawatts of photovoltaic facilities from 1 to 20 megawatts in size located in its service area, also at a rate of 50 megawatts a year.

“This solar development program has many benefits and can help the state meet its aggressive renewable power goals,” said CPUC President Michael Peevey. “Smaller scale projects can avoid many of the pitfalls that have plagued larger renewable projects in California, including permitting and transmission challenges. Because of this, programs targeting these resources can serve as a valuable complement to the existing Renewables Portfolio Standard program.”

The CPUC authorized expenditures of up to $1.45 billion for the capital costs associated with the utility-owned portion of the photovoltaic program.

Source

04/05/2010 (1:18 pm)

Tempur-Pedic buys Canadian distributor

Filed under: online |

Mattress and pillow maker Tempur-Pedic International Inc. has purchased its Canadian distributor, Tempur Canada Inc.

Financial terms of the purchase, which closed April 1 but was not announced until Monday morning, were not disclosed.

Tempur Canada will continue to operate as a subsidiary of Lexington, Ky.-based Tempur-Pedic (NYSE: TPX), according to a news release.

Tempur-Pedic officials said they will update the company’s financial guidance when they announce first-quarter financial results on April 20.

In the release, Tempur-Pedic CEO Mark Sarvary said the Canadian market is large and Tempur-Pedic’s share is “relatively low.” Company officials hope they can gain market share by increasing the company’s investments in sales and advertising in the market.

The company has taken similar actions in Austria, Australia, China and New Zealand over the past four years, according to the release.

Tempur-Pedic makes mattresses and pillows using a proprietary pressure-relieving foam material. It sells its products in more than 80 countries under the Tempur and Tempur-Pedic brand names.

Source

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