Business Briefing, June 19

Rocky staff and wire reports

Published June 18, 2008 at 8:05 p.m.

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Richard Slack

Cathy Thompson

NATIONAL

FedEx Corp. posts fourth-quarter loss as revenue rises

FedEx Corp. posted a loss for the just-ended fourth quarter of 78 cents a share, or $241 million, compared with a profit of $610 million, or $1.96 per share, for the same quarter last year.

Excluding one-time charges, FedEx earned $1.45 a share for the fourth quarter. Revenue rose 8 percent to $9.87 billion from $9.15 billion a year earlier.

Analysts expected $1.47 a share on revenue of $9.6 billion.

MORGAN STANLEY Morgan Stanley on Wednesday reported second-quarter profit plunged 61 percent as the credit crisis continued to take its toll on trading and investment banking.

The nation's second-largest investment bank reported profit fell to $1.01 billion, or 95 cents a share, from $2.57 billion, or $2.45 a share, a year earlier. Revenue dropped to $6.51 billion from $10.52 billion last year.

Analysts had expected a profit of 92 cents a share on revenue of $7.05 billion.

INDIAN CASINO REVENUES Federal regulators report that revenue at the nation's Indian casinos grew 5 percent in 2007. That's slower than in years past but still enough to outpace the 1.8 percent growth rate at Nevada casinos amid a sluggish economy.

Figures from the National Indian Gaming Commission show that Indian casinos took in $26 billion in gambling revenue in 2007, up from $25.1 billion in 2006. Nevada casinos took in $12.85 billion last year.

LOCAL

SEC names Hoerl acting director for Denver office

The Securities and Exchange Commission named Donald M. Hoerl acting regional director of the SEC's Denver Regional Office. The position became vacant when George Curtis was appointed to a deputy director position in the SEC's Division of Enforcement in Washington.

Hoerl has been associate regional director for enforcement in the Denver office since 1997. Hoerl began his career with the SEC in 1982 in the Denver office as a trial counsel. He also served as district administrator of the SEC's Philadelphia office for four years and as district administrator of the SEC's Salt Lake office for six years. Before joining the SEC, Hoerl was an assistant U.S. attorney in Denver for more than five years. He received his bachelor's degree from the University of California at Los Angeles and his law degree from the University of Colorado School of Law.

XCEL CEO ELECTED Richard Kelly, chairman, president and CEO of Xcel Energy, has been elected second vice chairman of the Edison Electric Institute. The institute is an industry association of shareholder-owned electric companies, international affiliates and industry associates worldwide.

SOLERA, COUNTRYWIDE Solera National Bank will offer Countrywide Home Loans Inc. residential mortgage products and services in its Lakewood office, the two companies said Wednesday.

Solera said in a release that it formed the partnership with Countrywide to continue improving its service to the Hispanic community by aligning itself with prominent financial services firms.

IHS REVENUE Arapahoe County-based information company IHS said revenue for its quarter ended May 31 was $207.2 million, a 34 percent increase over second-quarter 2007 revenue of $154.9 million. Net income increased $4.7 million to $23.3 million, or 37 cents per share, compared with $18.6 million, or 32 cents per share, in the prior-year period.

THIS JUST IN...

* Coors Brewing Co. will donate a matching gift for the first $25,000 in individual donations through the Campaign to Erase Hate for the Matthew Shepard Foundation.

* Developing Minds Software won the $10,000 first-place prize at the University of Colorado at Denver Bard Center's seventh annual Business Plan Competition.

* Massage Envy's national headquarters named Eric Kenealy, operator of its Cherry Creek, Tiffany Plaza and Thornton locations, as the Franchisee of the Year.

* The Rocky Mountain Inventors Association will host its June meeting on June 26 at the Belmar Library in Lakewood. Information: 970-222-5460

* WellPoint Systems Inc. appointed Richard D. Slack as chief operating officer.

* The Sheraton Denver selected Mike Ehmann to lead its management team, John Cassell as hotel manager, Garin Bethel as director of finance, Maria Maxwell as director of sales and marketing, and Renata Voss as director of revenue management.

* Wells Fargo promoted Robin Van Bergen to regional president of its retail banking operations in Denver.

* Benjamin West promoted Jennifer Root to strategic account manager.

* The U.S. Bank Food & Agribusiness Group named Michael Ryno as vice president of its risk management department.

* Denver-based Amelie Co. was selected as an official honoree at the 12th annual Webby Awards.

* The National Association of Clinical Nurse Specialists selected Cathy J. Thompson, associate professor at the University of Colorado Denver College of Nursing, as the recipient of the 2007 Clinical Nurse Specialist Educator of the Year Award.

* The Downtown Denver Chapter of the SCI Network appointed Jim Tarbell as 2008-2009 advisory board president and Bryan Wright, Andrea Wieland, Beate Hybinette, Ray Clapper and Karl Becker to the board of directors.

* Chambers USA recognized Rothgerber Johnson & Lyons attorneys Frederick J. Baumann, Charles Goldberg, Gregory B. Kanan, James M. Lyons and Michael J. Sullivan as Leaders in their Field.

* Debra Honey, vice president of clinical operations for Catholic Health Initiatives, was selected as a 2008 Robert Wood Johnson Executive Nurse Fellow.

* The Colorado Women's Bar Association appointed Martha Fitzgerald Bauer of Brownstein Hyatt Farber Schreck to its board of directors.

* Elevations Credit Union opened a Longmont branch at the corner of 21st Avenue and Main Street.

ECONOMY

CEOs anticipate slower economic growth

Confidence among U.S. chief executive officers declined in the second quarter as more predicted cutbacks in payrolls, according to a private survey.

The Business Roundtable's economic outlook index was at 74.5, the lowest level since the third quarter of 2003, down from 79.5 in the previous two quarters, the Washington- based group said Wednesday. Readings greater than 50 signal optimism.

Fewer than three of every 10 executives expect to increase their U.S. employment in the next six months, while 68 percent forecast a rise in sales. Company leaders said they expect their investment plans and sales forecasts to remain relatively unchanged.

One-third of executives surveyed by the Business Roundtable expect to increase capital spending in the next six months, down from 35 percent in the first quarter.

The survey, taken from May 22 to June 9, reflects responses from 110 of the Roundtable's 160 member companies. Member firms have $4.5 trillion in total annual sales and employ almost 10 million workers.

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