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Local employment numbers show improvement
The three-county Longview metro area added about 400 jobs from September to October as the area’s unemployment rate dropped to 8 percent, according to Texas Workforce Commission figures released Friday.
The unemployment rate slipped from 8.2 percent in September and represented the first monthly decline in several months, officials said. State figures showed that 102,500 people were on the job in Gregg, Rusk and Upshur counties in October, up from 102,100 in September.
While representing a drop in the unemployment rate from the prior month, the Longview Metropolitan Statistical Area’s rate remains considerably higher than a year ago. In October 2008, the local unemployment rate stood at 4.3 percent.
The Longview area unemployment rate in October was slightly better than the statewide average of 8.1 percent but bettered the national unemployment rate of 9.5 percent considerably. Texas Workforce Commission officials said.
total nonagricultural employment in Texas increased by 41,700 positions in October. The state reported significant increases in the professional and business services and education and health services sectors of the economy. In the Longview area government employment added 500 jobs from September while the health and education services area added another 100 jobs.
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Southside declares special dividend
The Board of Directors of Southside Bancshares parent company of Southside Bank declared a special cash dividend of 20 cents per common share in addition to declaring a regular quarterly cash dividend of 14 cents per share.
“This special cash dividend was approved by the Board of Directors as a tangible method for shareholders to share in Southside’s positive results reported during the first nine months of 2009,” said B. G. Hartley, chairman of the board and CEO. The combined 34 cent per share cash dividend is payable to common stock shareholders of record Nov. 25. The cash dividend is scheduled for payment on Dec. 10.
Hartley said during the nine months ended Sept. 30 the company’s board feels fortunate to have achieved significant earnings benchmarks.
“Due to the significant increase in our earnings, largely driven by favorable capital markets, the board believes it is appropriate to share a portion of this success in the form of a special cash dividend,” he said. Cash dividends paid for 2009, including the cash dividends declared today, will total 75 cents per share, a 25 percent increase over the cash dividends paid during 2008.”
Southside Bancshares, Inc. is a Tyler-based bank holding company with approximately $2.9 billion in assets that owns 100 percent of Southside Bank. Southside Bank currently has 44 banking centers in Texas.
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Eastman chief upbeat on company, recovery
Eastman Chemical Co. President and CEO Jim Rogers expects the company to return about a 20 percent annual earnings per share for 2009.
Rogers is making a presentation at the company’s annual investor day on Tuesday. He will outline earnings expectations and outline the company’s strategy for growth.
During the presentation, Rogers will say that Eastman expects 2009 earnings per share of approximately $3.50 excluding the asset impairments and restructuring charges for the first nine months detailed in the company’s third quarter sales and earnings disclosures.
In addition, Rogers and Eastman’s senior executives are expected to outline the company’s strategy for building on its solid core businesses and strong financial position to deliver 20 percent annual earnings per share growth from 2009 through the recovery.
Eastman will host its 2009 Investor Day at 8 a.m. Tuesday. A web replay and the accompanying slides will be available at www.investors.eastman.com.
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Mid South Fabrication acquires ProEdge Powder Coating
Mid South Fabrication & Coating of White Oak on Monday announced acquisition of ProEdge Powder Coating of Longview.
ProEdge specializes in industrial and decorative powder coating. Joe Harpold, president of ProEdge, has been named manager of the industrial coating division at Mid South. Pro Edge will merge its equipment and customer base into Mid South Fabrication & Coating’s 6-acre, 45,000-square-foot facility located at 1301 Cherokee Trace, White Oak.
“I am excited about being able to offer our customers both powder coating and wet paint processes, bringing Joe on board with his more than 25 years coating and production experience will help take this division to the next level,” said Mid South CEO, Greg Hulett.
Mid South Fabrication & Coating is a division of Mid South Engine & Machine, which was founded in 1986, Mid South provides industrial engine sales, service, steel fabrication, parts manufacturing and industrial coatings to the oil and gas, power generation, transportation and construction industries.
Mid South operates offices in White Oak and Fort Worth. For more information visit www.midsouthfab.com.
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Sitel announces 270 local layoffs
Longview’s Sitel telecommunications call center located in Triple Creek Center on Judson Road has filed papers indicating the company plans to layoff 270 local employees, according to John Stroud, executive director of Longview Economic Development Corp.
Stroud said he received word Tuesday the company filed a legally required WARN letter with Texas Workforce Commission officials letting them know of the layoffs. He said East Texas Workforce Solutions will likely be deployed to the Sitel location to consult with affected workers and help them in finding new jobs or getting retrained.
Click here for the entire story.
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Kilgore firm announces deal to acquire Arkansas lubricants processing assets
Kilgore-based Martin Midstream Partners on Wednesday announced that it has signed a definitive agreement to acquire certain specialty lubricants processing assets from Cross Oil Refining & Marketing for $45 million.
Cross is a wholly-owned subsidiary of Martin Resource Management Corp., the owner of Martin Midstream’s general partner. In consideration for the Cross assets, Martin Midstream Limited Partners will issue 804,721 common units and 894,134 subordinated units to the management corporation at a price of $27.96 and $25.16 per limited partner unit, respectively.
“We are excited to announce that we have entered into a definitive contribution agreement with MRMC (Martin Resource Management Corp.) and its wholly-owned subsidiary, Cross, whereby the partnership will receive certain specialty lubricant processing assets in exchange for $45.0 million in common and subordinated partnership units,” said Ruben Martin, president and chief executive officer of Martin Midstram GP, the general partner of Martin Midstream Partners, in a prepared statement.
Martin said the agreement positions the partnership’s terminalling and storage segment to become its largest and most stable cash flow contributor.
“We are also pleased to announce that MRMC will make a direct $20 million equity investment into the partnership in exchange for common units,” he said. “This equity injection will positively impact the partnership’s balance sheet in advance of our planned credit facility refinancing.
“This investment further reiterates the general partner’s publicly conveyed support and long-standing commitment to the partnership,” Martin said.
The Cross assets consist primarily of a 7,500 barrel per day naphthenic lubricant refinery located in Smackover, Ark., with more than 475,000 barrels of related storage capacity. Under the terms of the transaction, Martin Resources Management will continue to own all other Cross assets and working capital associated with the retained Cross business, including all crude oil, raw material, in-process and finished product inventories
In connection with the deal the two business entities have agreed to enter into a long-term, fee-for-services-based tolling agreement whereby Martin Resources agrees to pay Martin MIdstream Partners for the processing of its crude oil into finished products, including naphthenic lubricants, distillates, asphalt and other intermediate cuts.
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Martin Midstream reports quarterly results
Martin Midstream Partners of Kilgore on Wednesday reported net income for the third quarter of 2009 of $4.5 million, or 26 cents per limited partner unit.
This compared to net income for the third quarter of 2008 of $13.8 million, or 88 cents per limited partner unit. Revenues for the third quarter of 2009 were $151.4 million compared to $364.4 million for the third quarter of 2008.
Revenues were significantly impacted by decreased commodity prices during the period compared to the same period in 2008.
Ruben Martin, president and chief executive officer of Martin Midstream GP LLC, the general partner of Martin Midstream Partners L.P., said partnership executives were were pleased with the third quarter operating results and financial performance.
“The partnership again demonstrated the benefit of the diverse nature of our operating segments and cash flow contributions,” Martin said. “For example, we saw significant improvement in our marine transportation segment which more than offset the seasonal weakness we experienced in sulfur services due to reduced fertilizer application.”
In similar fashion, improved natural gas services performance offset slightly weaker terminalling and storage results as we saw specialty product through-put, namely sulfuric acid decline during the quarter.
“Looking ahead to the remainder of 2009, we expect the overall operating environment of the partnership to continue to improve,” Martin said. “Specifically, we anticipate slightly improved sulfur pricing in the fourth quarter.”
Officials also anticipate that sulfuric acid volumes will increase in the partnership’s specialty terminals and a continued recovery in natural gas / NGL prices could also contribute positively.
Martin Midstream reported net income for the nine months ended Sept. 30, of $17.3 million, or $1.02 per limited partner unit. This compared to net income for the nine months ended Sept. 30, 2008 of $26.1 million, or $1.64 per limited partner unit.
Revenues for the nine months ended Sept. 30, were $436.5 million compared to $985.6 million for the nine months ended Sept. 30, 2008. Revenues were significantly impacted by decreased commodity prices during the period compared to the same period in 2008.
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LeTourneau’s after-market division on track for record year
LeTourneau Technologies combined after-market parts and service business is on track to set a record sales year in 2009, officials with the company’s parent firm, Houston-based Rowan Cos., reported Tuesday.
William H. Wells, Rowan’s vice president finance and chief financial officer, said during the company’s quarterly earning call with market analysts LeTourneau’s after-market parts and sales business typically averages profit margins in the low-to-mid 40 percent range. For the quarter ending Sept. 30, that part of LeTourneau’s after-market business provided $30 million or 22 percent of the company’s external revenues.
That was compared to $31 million and 19 percent in the second quarter, according to a transcript provided by Seeking Alpha.
The full transcript is available at: http://seekingalpha.com/article/171002-rowan-companies-inc-3q09-qtr-end-9-30-09-earnings-call-transcript?source=yahoo
LeTourneau Technologies, Rowan’s manufacturing division, saw third quarter revenues total $219 million including $84 million of sales to Rowan’s own drilling division. External revenues were $135 million, a decrease of 16 percent from the last quarter and 21 percent from the prior year.
The company’s drilling products and systems segment contributed $178 million or 81 percent of the total revenues including sales to the company’s drilling division. External revenues were $93 million and included $65 million from rig projects and another $12 million from drilling equipment.
LeTourneau’s mining, forestry and steel products’ revenues totaled $42 million for the quarter ending Sept. 30., including $15 million from shipments of mining and forestry equipment and $6 million from steel plate. LeTourneau’s manufacturing margin was 13 percent of revenues during the third quarter up from 12 percent in the prior year and 9 percent last quarter, Wells reported.
“In the last two quarters our manufacturing margins have been adversely impacted by poor results on land rig sales which have also contributed the larger share revenues,” he said. Land rig sales totaled $36 million, or 27 percent of external revenues in the third quarter compared to $41 million and 26 percent in the second quarter.
In addition LeTourneau’s offshore kits, which typically yield a low 30 percent gross margin, provided $29 million or 21 percent of external revenues during the third quarter compared to $26 million and 16 percent in the second quarter.
The company’s end of quarter manufacturing backlog was $781 million and was down by about 17 percent over the past three months. The external backlog of $440 million, included $247 million related to offshore rig projects, $107 million related to land rig projects, $21 million to mining and forestry equipment, $29 million of ad-hoc drilling equipment with the remainder of primary parts and other components.
Wells reported LeTourneau received orders for three mining loaders during the quarter two of which were the L2350 model, the world’s largest. Another five loaders were booked in October for delivery in 2010 including one L2350 and three L1850;s.
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Aaon sales fall but beat expectations
Air-conditioning and heating equipment maker Aaon Inc. posted a better-than-expected quarterly profit, helped mainly by lower operating expenses, but expects its business to continue to be hit by the downturn for the foreseeable future.
For the third quarter, net income was $7.7 million or 45 cents a share, compared with $8.4 million or 47 cents a share a year ago. Aaon is based in Tulsa, Okla. and has a 258,000-square-foot manufacturing plant on Gum Springs Road in Longview. Sales at the company, which serves the construction market, fell 26 percent to $58.5 million.
Analysts on average were expecting earnings of 38 cents a share, before special items, on revenue of $68.9 million according to wire reports.
Although the economy is showing signs of recovery, commercial construction still lags the general trend, partly hurt by the retail slowdown.
The third-quarter income reflected a reduction in cost of sales resulting from hedging of copper, lower material costs and reduced manufacturing related expenses, Chief Executive Norman Asbjornson said in a statement. Shares of the company are traded on Nasdaq.
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LeTourneau parent shows signs of improvement
Rowan Companies Inc., the parent of Longview-based LeTourneau Technologies, on Tuesday reported better-than-expected quarterly profit helped by contract backlog, and the contract driller said demand for rigs and its LeTourneau mining equipment has been improving.
“While excess rig supply has, and will likely continue to, put pressure on day rates, we believe global demand for jack-ups and land rigs bottomed during the third quarter,” Chief Executive Officer Matt Ralls said in a statement. Net income for the quarter was $78.4 million, or 69 cents a share, compared with $114.1 million, or $1.00 a share, in the year ago quarter.
Rowan’s LeTourneau manufacturing operations generated external revenues of $135.0 million in the third quarter of 2009, down by 21 percent from the prior-year quarter and by 16 percent from the second quarter of 2009.
In our manufacturing operations, a recent improvement in demand for our innovative mining equipment has been a positive development on top of our success in adding three new rig kit packages earlier this year,” Ralls said.
Income from manufacturing operations was $6 million in the third quarter of 2009, up by 13 percent from the prior-year quarter and by 122 percent from the second quarter of 2009.
Rowan Companies, Inc. is a worldwide provider of contract drilling services and also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. For more information on Rowan, visit www.rowancompanies.com.
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Southside reports record earnings
Tyler-based Southside Bancshares reported record net income of $10.5 million for the three months ended Sept. 30, an increase of $4.2 million, or 68 percent compared to $6.3 million for the same period in 2008.
Net income for the nine months ended Sept. 30 increased $13.7 million, or 67.4 percent to a record $34.0 million from $20.3 million, for the same period in 2008.
Diluted earnings per share increased 28 cents, or 66.7 percent to 70 cents for the three months ended Sept. 30, when compared to 42 cents for the same period in 2008. Diluted earnings per share increased 91, or 66.9 percent to $2.27 for the nine months ended Sept. 30, compared to $1.36 for the same period in 2008.
“During 2009, we feel fortunate to have achieved significant earnings benchmarks,” B.G. Hartley, chairman and CEO of Southside. “We continue to manage the bank with attractive net interest margins,”
He said the firm’s asset quality continues to be at relatively sound levels, especially in light of the macro-economic climate.
“The threat of an economic free-fall that persisted over the last 18 months has been replaced by questions related to the strength and tenacity of the eventual economic recovery,” he said.”Having navigated successfully through these volatile times, Southside is in a position to take advantage of strategic opportunities as economic visibility continues to improve.”
For the three months ended Sept. 30, total loans decreased slightly, $1.2 million, or 0.1 percent compared to June 30. For the nine months loans decreased $6.8 million, or 0.7 percent, compared to Dec. 31, 2008.
When comparing Sept. 30 to Sept. 30, 2008, total loans increased by $28.3 million, or 2.9 percent. The increase occurred primarily in three categories, other real estate loans, municipal loans and loans to individuals.
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Longview Regional parent reports jump in revenue, net income
The parent company of Longview Regional Medical Center, Community Health Systems, announced net operating revenues for the three months ended Sept. 30, were $3.087 billion, a 12.1 percent increase compared with $2.755 billion for the same period in 2008.
Income from continuing operations for the Tennessee-based company increased to $75.4 million, or 65 cents per share for the three months ended Sept. 30, compared with $59.1 million, or 52 cents per share for the same period in 2008.
Net income increased 18.5 percent to $59.7 million, or 65 cents per share for the three months ended Sept. 30, compared with $50.4 million, or 53 cents per share for the same period in 2008.
Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems said officials were pleased with the company’s solid financial and operating performance.
“We continued to benefit from a consistent performance at the hospital level, as evidenced by favorable revenue trends and same-store margin expansion,” Smith said. “These results confirm that the fundamentals of our business are strong and our centralized operating strategy is working across all of our markets.
“We believe our proven ability to enhance essential health care services and recruit and retain qualified physicians in our markets will help support our continued growth,” he said. “Our conservative operating strategy has served us well, and we are mindful of the critical need to manage our costs and drive margins.”
Net operating revenues for the nine months ended Sept. 30 totaled $9.016 billion, a 10.8 percent increase compared with $8.138 billion for the same period in 2008.
Income from continuing operations increased to $220.7 million, or $1.94 per share for the nine months ended Sept. 30
The consolidated financial results for the nine months reflect a 3.5 percent increase in total admissions compared with the nine months ended Sept. 30, 2008. This increase was due primarily to acquisitions during the past 12 months. On a same-store basis, admissions decreased 1.9 percent and adjusted admissions increased 0.4 percent, compared with the same period in 2008.
Smith said the company fees there are considerable opportunities to leverage its assets and realize additional operating improvements at its more recently acquired hospitals.
“We are pleased with the trends in our business and we look forward to continued progress for the remainder of 2009 and into 2010,” Smith said.
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Trinity Industries reports 74 percent earnings drop
Trinity Industries reported net income of $23.2 million for the quarter ending Sept. 30.
That was down by $66.4 million, or 74.1 percent, from the $89.6 million in net income the company reported for the same period in 2008.
With Longview area operations, Dallas-based Trinity early this year shuttered local plants and laid off hundreds of Longview area employees at its rail car plants.
“We continued to improve our liquidity position and strengthen our balance sheet during the third quarter,” said Timothy R. Wallace, Trinity’s chairman, CEO, and president said in a prepared statement. “Our businesses remained highly focused on obtaining orders that extend their production lines and reducing costs as they right-sized their capacity.”
For the nine month period ended Sept. 30, the company reported a net loss of $152.3 million, or $2 per common diluted share. The results include an after tax charge of $243.3 million in the second quarter for the impairment of goodwill related to its rail businesses.
Net income was $91.0 million, or $1.15 per common diluted share, excluding the charge for the impairment of goodwill. Net income for the same period in 2008 was $237.6 million, or $2.90 per common diluted share.
Revenues for the third quarter of 2009 were $557.4 million compared with revenues of $1,154.6 million for the same quarter of 2008. Revenues for the nine months ended September 30, 2009 were $2.1 billion as compared to $3.0 billion in the same period of 2008.
During the third quarter of 2009, TrinityRail shipped approximately 1,630 railcars and received orders for approximately 1,000 railcars. As of Sept. 30, TrinityRail’s order backlog totaled approximately $264 million, representing approximately 3,160 railcars.
Operating profit for the Inland Barge Group in the third quarter of 2009 was $26.7 million, as compared to $29.8 million in the same quarter of 2008. Revenues were $113.8 million in the third quarter of 2009, as compared to $160.6 million in the third quarter of 2008.
The Energy Equipment Group recorded revenues of $132.7 million in the third quarter of 2009, as compared to $184.5 million in the same quarter of 2008. The Group produced operating profit of $16.2 million in the third quarter of 2009, as compared to $32.5 million in the same quarter of 2008. The order backlog for structural wind towers as of September 30, 2009 totaled approximately $1.1 billion.
Revenues in the Construction Products Group totaled $146.3 million in the third quarter of 2009, a decline of 27 percent from the same quarter in 2008. These businesses recorded an operating profit of $13.1 million in the third quarter of 2009, compared to $17.2 million in the third quarter of 2008.
The Company estimates earnings of between 8 cents and 13 cents per common diluted share for the fourth quarter of 2009.
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SWEPCO parent earnings jump 18 percent
Power company American Electric Power said Thursday that its third quarter earnings rose 18 percent as rate increases throughout its service area and cost cutting offset continued weak demand for electricity from industrial customers.
AEP is the parent company of Southwestern Electric Power, a subsidiary that serves Longview and other East Texas cities. SWEPCO also operates several power generation plants in East Texas.
The Columbus-based AEP said that even with electricity sales to industrial customers down 17 percent in the quarter that is a slight improvement from the second quarter when sales to industrial customers were down 20 percent. The company also said sales of several large metal customers increased from the second to third quarter.
“We hope that’s a sign of better things to come, but we don’t see it as a cause for celebration yet,” Mike Morris, AEP’s chairman and CEO, said in a statement.
The economy has ravaged demand for electricity across the country. AEP’s service area spreads south from Ohio, Indiana and Michigan to Oklahoma and Texas and is more industrialized and export oriented than other parts of the country so the global recession was more severe on those states than other parts of the U.S., he said.
“The economy will improve, but it’s going to take some time,” Morris said. “Fortunately, the export market may recover more rapidly. Until then, we will continue to keep tight control on our spending.”
AEP said it made $443 million, or 93 cents a share, for the quarter ended Sept. 30 compared with $374 million, or 93 cents a share in the year ago quarter. The company had more shares outstanding in the third quarter than it did a year ago.
The increase in profit came even as revenue fell to $3.5 billion for the quarter from $4.2 billion.
Demand also was hurt by the mild summer. AEP said the it was the coolest summer in 30 years for the Eastern states it serves and the fourth coolest in 30 years for its customers in Oklahoma, Arkansas, Louisiana and northeast Texas.
Residential demand for electricity was flat during the quarter while commercial demand was down slightly. Sales into wholesale markets were off 37 percent because of weak demand from the economy along with mild weather in the East.
Operation and maintenance expense decreased $52 million to $796 million for the quarter, primarily because of lower storm restoration and plant expenses from a year ago. Remnants of Hurricane Ike barreled through the Midwest in September 2008, knocking out power to millions of customers in the Midwest.
AEP is one of the nation’s largest power companies, serving 5.2 million customers in 11 states.
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Stemco parent reports 21 percent sales decline
The parent company of Longview-based Stemco on Thursday reported a 21 percent drop in sales compared to the same period a year ago.
EnPro Industries on Thursday reported net income of $1.8 million, or 9 cents a share, for the third quarter of 2009, compared with net income of $12.4 million, or 59 cents a share, in the third quarter of 2008.
In the third quarter of 2009, the Charlotte, N.C.-based company reported a pre-tax loss of $1.0 million and a tax benefit of $2.8 million.
Before asbestos-related expenses and other selected items, the company earned $10.6 million, or 52 cents a share, compared with $20.9 million, or 99 cents a share in the third quarter of 2008.
Sales in the third quarter decreased to $219.7 million, a 21 percent decline from the third quarter of 2008 when they were $278.6 million. Excluding the effect of foreign exchange, sales declined 19 percent from the third quarter of 2008.
The decline in sales reflects the continued weak conditions of the worldwide markets served by EnPro’s Sealing Products and Engineered Products segments, the company reported.
“We are pleased with our performance in the third quarter, given the state of most of our markets,” said Steve Macadam, president and chief executive officer of EnPro Industries. “Our results exceeded our expectations from earlier in the year, despite weak demand and the seasonality that typically affects our sealing products and engineered products segments.”
Macadam said sales in these segments were about the same as in the second quarter and their profits and margins increased over the second quarter, while Enpro’s engine products and services segment continued to perform well.
“Our performance in the third quarter reflects the effectiveness of the cost reductions we began last year as well as the important benefits of other programs we have initiated to establish high standards of excellence, company-wide,” Macadam said.
For the first nine months of 2009, EnPro reported a net loss of $100.7 million, or $5.05 a share, compared with net income of $45.3 million, or $2.12 a share, in the first nine months of 2008.
The loss in the first nine months of 2009 includes a non-cash goodwill impairment charge of $96.1 million, or $4.81 a share, after tax. Before asbestos-related expenses and other selected items, the company earned $26.2 million, or $1.29 a share, in the first nine months of 2009 compared with $71.9 million, $3.37 a share, in 2008.
Sales in the first nine months of the year were $671.4 million, 24 percent below the first nine months of 2008 when they were $878.5 million. Before the negative effect of foreign exchange and a small benefit from acquisitions, sales were 20 percent below the first nine months of last year.
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Eastman offers $250 million in notes
Kingsport, Tenn.-based Eastman Chemical Co. on Thursday announced the public offering of $250 million 10-year notes due 2019 with a coupon of 5.5 percent.
Citigroup Global Markets Inc. and J. P. Morgan Securities Inc. are serving as joint book-running managers for the offering.
Closing of the offering of notes is expected to occur on Monday. Eastman intends to use the net proceeds from the sale of the notes for general corporate purposes, which may include funding of pension plan obligations and repayment of outstanding borrowings from time to time, the company said in a prepared statement.
Eastman has a Longview plant where about 1,500 people are employed.
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Martin Midstream declares quarterly distribution
Martin Midstream Partners L.P., based in Kilgore, announced Tuesday that is has declared a quarterly cash distribution of 75 cents per unit for the quarter ended Sept. 30.
This quarterly distribution remains unchanged from the distribution paid in the prior quarter and the same quarter of 2008. The distribution is payable on Nov. 13, to common and subordinated unit holders of record as of the close of business on Nov. 6.
The November distribution is based on the current operating performance of, and the current general economic, industry and market conditions impacting Martin Midstream Partners and reflects an annualized distribution rate of $3.00 per unit.
Those units closed at $27.95 in Tuesday trading. The distribution represents a return of about 10.9 percent. Units have traded between a low of $13 and a high of $28.85 over the past year.
Martin Midstream Partners is a publicly traded limited partnership with operations focused primarily in the United States Gulf Coast region.
The partnership’s primary business lines include: terminalling and storage services for petroleum products and by-products; natural gas gathering and processing and NGL distribution services; marine transportation services for petroleum products and by-products; and sulfur and sulfur-based products processing, manufacturing, marketing and distribution.
Additional information concerning Martin Midstream is available on its Web site at www.martinmidstream.com.
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U.S. Steel posts $412 million quarterly loss
United States Steel Corp. said Tuesday it lost money for a third straight quarter as the global economic downturn continued to dampen demand for the metal.
The company, with East Texas operations in Lone Star, said its production and shipments rose significantly from the previous quarter, and that it expects a narrower loss in the October-December period as North American automakers order more steel for vehicles.
U.S. Steel’s products include sheet steel used in a wide range of consumer goods, from cars to office furniture. Its tin is used in items such as food cans, while its tubular steel, or pipe, is used in oil and gas drilling. The Lone Star plant produces tubular products.
U.S. Steel’s tubular division posted a quarterly loss of $21 million for the quarter ending Sept. 30. A year ago the division posted income of $420 million. In the quarter ending June 30, the tubular division recorded a loss of $88 million.
Its shares rose 29 cents to $40.87 in premarket trading.
The loss highlights an industrywide slump in demand that began when the world economy faltered late last year. That undermined key customers in the construction, auto and industrial equipment industries. Steel makers like U.S. Steel, based in Pittsburgh, responded by winding down production and laying off thousands of workers.
Although prices and production rose during the quarter as steel distributors scrambled to fill orders after depleting their stockpiles, the market for the metal remained far weaker than it had been a year earlier, when U.S. Steel notched record profits.
CEO John Surma said the company remains cautious about its outlook as order rates have dropped in recent weeks, partly due to seasonal slowdowns at factories.
“Despite these concerns and uncertainties, we believe that the U.S. and global economies are in the early stages of a gradual recovery, which has been aided by global stimulus policies and may be supported by continued improvement in credit markets and inventory restocking,” he said in a statement.
In April, U.S. Steel posted its first quarterly loss in more than five years. After reporting a second quarterly loss in July, the company said it expected all of its businesses to post operating losses for the July-September period.
The largest U.S. steel maker said it lost $303 million, or $2.11 per share, for the three months ended Sept. 30. That compares with a profit of $919 million, or $7.79 per share, in year-earlier period.
U.S. Steel said its operating loss amounted to $412 million, down from a profit of $1.33 billion a year earlier.
Revenue tumbled 61 percent to $2.82 billion from $7.31 billion.
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Chesapeake’s Haynesville production tops 500 million cubic feet per day
Oklahoma City-based-natural gas company Chesapeake Energy said Thursday that production from its four shale plays has hit record levels, including production that recently topped 1 billion cubic feet of gas per day in the Barnett shale in north-central Texas, according to the Associated Press.
Chesapeake also said production in the Haynesville shale in East Texas and Northeastern Louisiana recently exceeded 500 million cubic feet per day and that production in the Fayetteville shale in Arkansas recently topped 400 million cubic feet. Production in the Marcellus shale in northern Appalachia recently reached 100 million cubic feet.
Shale is a kind of layered, sedimentary rock that exists in formations throughout the world. The gas, tightly locked in rock formations, had been extraordinarily expensive to extract until the past few years when producers developed new techniques such as horizontal drilling, where the drill is turned in a right angle to bore into a gas reservoir horizontally.
Discoveries of gas in shale formations has led to giant growth in reserves in the U.S. Producers say there is enough gas to meet demand in the U.S. for more than a century, and that more reliance on gas could cut dependence on foreign oil and reduce greenhouse gas emissions.
Chesapeake said production in the Barnett shale comes from 1,500 wells. Chesapeake made its first investment there in 2004.
Plains Exploration and Production Co. is a 20 percent partner with Chesapeake in the Haynesville shale while BP America is a 25 percent partner in the Fayetteville shale and Norwegian oil company StatoilHydro is a 32.5 percent partner in the Marcellus shale.
Chesapeake announced the production levels after the stock market closed Thursday. It Friday trading shares were down about 4.5 percent from Thursday’s close.
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Pilgrim’s reports profitable quarter
Bankrupt U.S. chicken producer Pilgrim’s Pride Corp. reported a $56.71 million profit for the fiscal fourth quarter ended Sept. 26 and said upon exiting bankruptcy, it will be a “stronger, leaner company,” according to wire reports.
The financial report was filed late on Tuesday as required by the bankruptcy court. It is not comparable with quarterly earnings reports filed with the U.S. Securities and Exchange Commission because the data may be incomplete, according to reports. But it does give an indication of the company’s financial health.
Revenue for the quarter was $1.63 billion.
Pilgrim’s Pride entered bankruptcy in December 2008 and at that time it had forecast a fourth quarter loss of $802 million on sales of $2.17 billion. An earlier wire report relayed in this space that the company did not file a fiscal 2008 fourth quarter earnings report was inaccurate. Pilgrim’s Pride did provide the information on its 10-K form filed last December with the Securities Exchange Commission, according to Ray Atkinson, director of corporate communications.
It filed a reorganization plan in September and expects to exit bankruptcy by the end of this year.
As part of its reorganization plan, Pilgrim’s Pride agreed in September to sell a majority stake to Brazilian meat company JBS SA. Earlier this month, U.S. regulators approved that deal, but bankruptcy court approval is still needed.
While under bankruptcy protection, Pilgrim’s Pride has closed and sold plants and reduced production.
“Our financial position has improved significantly this year,” Pilgrim’s Pride spokesman Gary Rhodes said in an email on Wednesday. “We have returned to profitability, the quality of our asset base has improved significantly and we are gaining additional business.”
Pilgrim’s Pride and other chicken companies lost money in 2008 because of high feed costs and low chicken prices. Since then, feed costs have come down and producers have cut output, according to wire reports.
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Proposal questioned, but study approved
Two board members of the Longview Economic Development Corp. on Tuesday questioned how proposal has moved forward to potentially merge the corporation and the Longview Partnership’s operations.
“This completely blind sided me when I read it in the newspaper,” said LEDCO board member Dan Droege.
He and board member Gaylon Butler questioned why a committee established several months ago to consider a study of the groups’ operations was not involved along the way.
After a lengthy discussion, the board approved a proposal and contract for an outside consulting firm, Market Street, to analyze how the organization and the Longview Partnership can most efficiently operate. Butler said he would have liked the opportunity to review other proposals and questioned the timing of doing the study during what he said were the busy months of November and December.
“It seems like the Partnership has spent a great deal of time discussing the issue. We’ve hardly had any,” Butler said.
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My fat fanny they let employees transfer to other jobs. They brought in employees from the Russellville plant to Athens ALabama to train on machines they can’t even run. If you are a union member they sure in hell didn’t offer you a job.
... read the full comment by Alex | Comment on Pilgrim's to close Alabama plant Read Pilgrim's to close Alabama plant
When will this be opening? I’ve eaten at the one and Tyler and it is wonderful!! I recommend the #7!!!
... read the full comment by Stephanie | Comment on Longview getting new taqueria Read Longview getting new taqueria
Maybe the “little guys” would have faired better in Old Bo’s restructuring plan if the Company’s CEO and other administrators didn’t make such an excessive salary. The “little guys” are always the ones who suffer,
... read the full comment by Alex Houston | Comment on Pilgrim's Pride confirms Brazilian stock deal Read Pilgrim's Pride confirms Brazilian stock deal
That is just what we need,another foriegn company taking over in East Texas.
... read the full comment by Buck | Comment on Pilgrim's Pride confirms Brazilian stock deal Read Pilgrim's Pride confirms Brazilian stock deal