Business Briefing, Aug 15

Business Briefing

Rocky staff and wire reports

Published August 14, 2008 at 9:05 p.m.

Text size

Greg Perczak

Cheryl Wallace

More More Business

More stories »

NATIONAL

Wal-Mart reports 17% increase in 2nd-quarter profits

Wal-Mart Stores Inc. posted a 17 percent increase in second- quarter profit Thursday and raised its full-year earnings forecast, helped by cost cuts and a renewed focus on low prices that is attracting financially squeezed shoppers around the world.

The Bentonville, Ark.-based retailer said it earned $3.45 billion, or 87 cents per share, in the quarter ended July 31, up from $2.95 billion, or 72 cents per share, a year earlier.

For the quarter, the discounter posted same-store sales growth of 4.5 percent, excluding fuel sales, compared to a 1.9 percent increase a year earlier.

Wal-Mart predicts same-store sales growth to slow to 1 percent to 2 percent for the third quarter, a sharp decline from the 4.5 percent that it saw in the second quarter.

REDESIGNED PRIUS Toyota Motor Corp., Asia's largest automaker, will unveil a redesigned Prius hybrid next year, a sales executive said.

Toyota will show its replacement for the best-selling gasoline-electric vehicle at the North American International Auto Show in Detroit in January, said Bob Carter, group vice president of Toyota's U.S. sales unit.

FAA SEEKS FINE The Federal Aviation Administration said Thursday it is seeking $7.1 million from American Airlines for continuing to fly airliners after safety problems were reported and for drug-testing violations.

The Texas-based airline delayed repairs on two MD-80s - a midsized airliner - after problems were reported with their autopilot systems and flew them 58 times in violations of federal regulations, the FAA said.

American released a statement calling the fine "excessive" and saying it intends to contest it.

"We do not agree with the FAA's findings and characterizations of American's action in these cases," the airline said.

CLOSE TO SETTLEMENT Wachovia Corp. is close to agreeing to buy back $8 billion of auction-rate securities and pay fines to settle charges it misled investors about the risks, according to a person close to the negotiations.

Earlier Thursday, JPMorgan Chase & Co. and Morgan Stanley agreed to buy back billions of dollars in auction-rate securities and pay fines to settle charges by regulators.

LOAN REPORT Banks borrowed slightly more over the past week from the Federal Reserve's emergency lending program while Wall Street firms did not draw any loans for a second straight week.

The Fed reported Thursday that commercial banks averaged $17.70 billion in daily borrowing over the past week. That compared with $17.37 billion in the previous week.

YAHOO BOARD Yahoo Inc. said Thursday it will add the former chief executives of Viacom and Nextel Partners to its board of directors as part of the company's deal to ward off a proxy fight with billionaire investor Carl Icahn.

The Sunnyvale, Calif.-based company selected Frank Biondi Jr. and John Chapple, former chief executives of Viacom Inc. and Nextel Partners, respectively, from a list of nine possible new board members submitted by Icahn.

LOCAL

Red Robin posts increased income for second quarter

Red Robin Gourmet Burgers, the Greenwood Village-based family dining restaurant, on Thursday announced second- quarter net income increased 61 percent, helped by higher prices.

Profit increased to $7.92 million, or 49 cents a share, from $4.93 million, or 29 cents, the year earlier. Restaurant revenue increased 16 percent to $202.9 million.

Red Robin followed several other dining chains and reduced its full-year sales and earnings forecasts on concern consumer spending will slow.

CLOSING DOORS Muttropolis in the 29th Street Mall in Boulder is closing on Aug. 24.

The store, which bills itself as "a utopia for pets and their parents," will still sell items on the Internet. The Solana Beach, Calif.-based retailer also has stores in California and Arizona.

CSU-PUEBLO TAPS HOTELS Colorado State University-Pueblo has booked 120 rooms at two hotels near the campus to provide a short-term solution to the housing crunch caused by what likely will be the largest freshmen class in the school's history.

The university has leased rooms at both the Clarion Motel, 4001 North Elizabeth, and Quality Inns and Suites, 3910 Outlook Blvd., for the upcoming academic year in anticipation of record enrollments this fall.

Overall enrollment is projected to rise 10 percent to 15 percent in the fall, while new freshmen numbers are up more than 60 percent compared to last year.

* Parker Adventist Hospital added Todd Mydler as its chief medical officer.

* Peter Nam joined Headwaters as a principal.

* Steve Hill was chosen as president-elect of the Society of Exploration Geophysicists.

* Worthgroup relocated its Denver office to 900 S. Broadway, Suite 150.

* ARCA biopharma Inc. appointed William R. Hiatt as director of clinical and regulatory strategy.

* Colorado Farm Bureau gave its 2008 Pinnacle Award to Sen. Jim Isgar, Sen. Josh Penry, Rep. Kathleen Curry and Rep. Marsha Looper.

* PhysIOM Inc. promoted Kristen Linderman to chief executive officer and Glenn Oremus to chief operating officer.

* Colorado Bright Beginnings appointed Kim Easton as executive director.

* The Boulder County Business Report announced the winners of its ninth annual Innovation Quotient Awards: Communications, Tendril Inc.; Internet/Software Business, HiveLive Inc.; Internet/Software Consumer, Socialthing!; Medical & Health, Tensegrity; Nonprofit Products & Services, Crayons to Calculators; Sports & Outdoor, Optibike LLC; Sustainable, Eco-Cycle; Business, Envysion Inc.; Computers, StillSecure; and Consumer, Quintess.

* Dann Burke joined Frederick Ross Company as an office leasing and sales specialist.

* Kandice Jones joined Liberty Savings Bank as sales manager for the Rock Creek Financial Center, and Paul Jerez joined as sales manager for the Northglenn Financial Center.

* Healing Light Naturopathic Clinic LLC opened at 7985 Vance Drive in Arvada under the direction of Dr. Colleen Gagliardi.

* Cheryl Wallace joined Bondi & Co. as senior accountant.

* Litigator Greg Perczak and associate Rebecca Ledges joined the Denver office of Fennemore Craig.

* Real Baby opened a store at 1505 Pearl St. in Boulder.

* Aspen Moving and Storage of Basalt was acquired by Brian Watson.

* Liquid Impression Inc. opened at 6732 W. Coal Mine Ave. in Littleton under the ownership of Duane Leveille.

* MEI Technologies Inc. named Bradley W. Butler to its board of advisers.

* Bellco Credit Union donated $24,000 to Denver's Mount Saint Vincent Home for children to support its newly launched Wellness Program.

* Wal-mart and Sam's Club will host a free Business to Business expo in Denver on Wednesday from 10 a.m. to 5 p.m. at the Crowne Plaza.

* Hook Flyfishing opened at 2030 E. County Line Road in Highlands Ranch.

Subscribe to the Rocky Mountain News

Post your comment

Registration is required. Click here to create your free user account, or login below.

Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.

Home › Business › More Business

Business Briefing, Aug 15