Business Briefing, Aug. 7

Rocky staff and wire reports

Published August 7, 2008 at 12:05 a.m.
Updated August 7, 2008 at 12:23 a.m.

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Jared Blank

Steve Putnam

NATIONAL

Housing lender Freddie Mac on Wednesday posted a second-quarter loss that was more than three times larger than Wall Street expected as a huge number of borrowers with good credit fell behind on their exotic and risky mortgages.

The losses were concentrated in a handful of states - notably California, Florida, Nevada and Arizona - where speculation was rampant, prices skyrocketed and buyers stretched to the financial limit to afford a home.

Freddie is reeling from loans - made in 2006 and 2007 as the market turned sour - to borrowers with solid credit but little proof of their income, or small or no down payments.

These loans make up 10 percent of Freddie's portfolio but accounted for more than half of the company's credit losses in the quarter.

BEER BOTTLE CAPS A Northern California brewer who tangled with federal regulators over the caps on his beer bottles said Tuesday that officials have given him permission to keep the message "Try Legal Weed."

The Alcohol and Tobacco Tax and Trade Bureau had ordered Vaune Dillmann to stop using the caps, which are a play on the name of the town where he brews his beer - Weed. The bureau said the message amounted to a reference to illegal drugs.

Dillmann appealed and received a registered letter this week saying he can continue using the bottle caps.

USED CAR SALES Used vehicle retailer CarMax Inc. said Wednesday that sales of used cars and trucks at its 98 stores fell 17 percent in June and July as high gas prices drove customers away from vehicle purchases.

BLIND-SPOT MIRROR Ford Motor Co. said Wednesday it will introduce its blind-spot mirror this fall on the 2009 Ford Edge crossover.

The automaker had planned to bring the mirror to market next year but moved up the date after getting so much positive feedback, the company said.

Ford also is in a race with General Motors Corp. to bring the technology to market. Blind- spot mirrors will be a standard feature on the 2009 Chevrolet Traverse crossover.

TIME WARNER Time Warner Inc.'s second-quarter earnings fell 26 percent on declining subscriber fees at its AOL online unit and lower ad revenue at the Time publishing business, the media conglomerate said Wednesday.

The New York-based media conglomerate said net income fell to $792 million, or 22 cents per share, from $1.07 billion, or 28 cents per share, a year ago.

Excluding one-time items, profit rose to 24 cents per share from 22 cents per share last year, when gains from the sale of assets bolstered earnings. The adjusted result was a penny better than analyst expectations, according to Thomson Financial.

Revenue rose 5 percent to $11.6 billion, passing Wall Street's $11.46 billion estimate.

DEAN FOODS PROFITS Dean Foods Co., the biggest U.S. producer of dairy products and owner of Broomfield-based White Wave and Horizon Organic, posted its first profit increase in five quarters after the company raised prices to pass along higher raw milk and energy costs.

Second-quarter net income climbed to $48.9 million, or 31 cents a share, from $28.4 million, or 21 cents, a year earlier. Sales climbed 9.1 percent to $3.1 billion.

LOCAL

Rentech opens diesel, jet fuel plant in Colorado

Energy supplier Rentech Inc. says it has opened a synthetic diesel and jet fuel plant in Colorado, the only one of its kind in the country.

The Los Angeles-based company said Wednesday its demonstration plant in Commerce City is designed to produce 420 gallons a day - a mere trickle compared with the needs of airlines and trucking companies.

Company officials said their natural gas-based fuel will be sold to the Department of Defense and private companies for further testing. That testing could lead to certifying the fuel for commercial use in the airline industry.

THIS JUST IN...

* Heartland Bank promoted Terry L. Halbrook to vice president, regional manager in the residential mortgage division of its Denver office.

* National Jewish Health appointed Susan Holt as vice president of development.

* TeamBTS hired Jeremiah Massey to work in its Web department.

* DatAvail added John Kaufling as Oracle applications director, Patrick Gates as director of Oracle database services, and Prakash Bhandari as senior technology director.

* Alan Ford Architects PC hired Jared Blank to work on its Staunton State Park and Spruce Street Place projects.

* Key Equipment Finance was selected as the leasing partner of Radio Holland Group.

* Marlene Hueske joined Quadna Inc. as production planner.

* Denver based Sharkey, Howes & Javer Inc. named Kim Spaulding as financial planner and Tammy Durnford as manager of client relations.

* Studley added Chris Cox to its Denver office.

* Richey May & CO LLP promoted Steve Putnam to tax partner.

* Parker-based Outskirts Press hired ProConnect Public Relations as its agency of record.

* Gelazzi Gelato Italiano Cafe will open its third Colorado store at 9579 S. University Blvd. in Highlands Ranch.

* Klipp principal Cornelius DuBois was elected to the board of directors of the National Architecture Accrediting Board.

* DiNapoli Capital Partners named Brian Gardner general manager of C Lazy U Ranch.

* National CineMedia LLC promoted Lauren Leff to senior vice president.

* The Colorado Chapter of the Business Marketing Association will host the Online Marketing Summit at the Denver Marriott City Center on Aug. 14. Information: bmacolorado.org.

* The Sixth Annual Judicial Excellence for Colorado Dinner will be held at the Denver Marriott City Center Hotel on Nov.18. Information: 303-766-7501.

* The South Metro Denver Small Business Development Center will host "Getting Started in QuickBooks" on Aug. 14 from 8:30 a.m.-12:30 p.m. at the Keller Graduate School of Management in Greenwood Village. On Aug. 18, it will host a free business start-up workshop from 6:30 -8:30 p.m. at Philip S. Miller Library in Castle Rock. Information: 303-548-5300.

* Karen Mathis, partner in Denver-based Mcelroy, Deutsch, Mulvaney & Carpenter LLP, will take leave of absence from the firm to serve as the chief operating officer/executive director of the CEELI Institute in the Czech Republic.

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