Written by Michael Harris on July 16, 2011.
“On the retail side, you can see the slowdown in the discretionary items,” Genuine Parts chairman, president and CEO Thomas C. Gallagher said in a conference call Friday. “The consumer is getting the absolute needed repairs, but they’re trying to defer as much as they can.”
The company saw record sales in the second quarter, but Gallagher said his expectations for the second half of the year are “tempered” by continued high unemployment and the “general fragility of the economic recovery.” Genuine Parts still anticipates increasing its revenue between 9 and 11 percent for the year.
The company, in addition to selling auto parts, has industrial, office product and electrical businesses. Sales were $3.2 billion across all four categories, up 12 percent over last year’s figures. Genuine Parts made $151.8 million for the quarter, up 22 percent from last year, and also a record.
Bill Selesky, a senior analyst for Argus Research, said the results were “fairly positive.” He said as more people defer new-car purchases and continue to service their aging vehicles, Genuine Parts will benefit.
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Written by Jeremy Martin on July 16, 2011.
A leading small business pressure group has called on the Government to consider implementing VAT cuts following a significant fall in the FSB’s quarterly index, which measures business confidence.
The ‘Voice of Small Business’ index shows that confidence is lower in the second quarter of the year than it was at the start of the year. Of the 18 sectors monitored, 13 currently show no signs of business confidence, and 5 sectors have slipped from a ‘positive’ to a ‘negative’ reading.
The FSB has called on the Government to follow the lead of other EU nations and slash VAT in the tourism and construction areas to 5% for a year to help boost the economy.
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Written by Michael Harris on July 16, 2011.
News Corp’s Australian shares fell more than 7 per cent to a two-year low today, as the UK phone hacking scandal fallout worsened, while investors worried that the local $1.9 billion bid for pay-tv firm Austar involving News Corp could be derailed by political intervention.
News Corp shares ended down 4.1 per cent at $14.16 after touching a low of $13.65. Shares have dived 16.5 per cent this month as the News of the World hacking scandal engulfed News Corp executives.
Investors dumped News Corp shares in heavy volumes rather than try to anticipate how investigations into the scandal may unfold.
“I think people would rather be cautious and mark it down rather than find a reason to defend it,” said Invesco senior investment manager Jackson Leung in Melbourne.
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Written by Michael Harris on July 16, 2011.
Stockbridge-based High Trust Bank and Atlanta-based One Georgia Bank were seized and sold to Ameris Bank of Moultrie. The banks will reopen under the new flag during normal business hours beginning Saturday, the Federal Deposit Insurance Corp. said.
Georgia leads the nation with 67 failures since mid-2008.
High Trust had total assets of $192.5 million and deposits of $189.5 million, and One Georgia had total assets of $186.3 million and deposits of $162.1 million, according to the latest FDIC data.
The FDIC said Ameris agreed to purchase the bulk of the two banks’ assets and all of their deposits in a loss-share transaction. The regulator estimates the failures will result in a $110.4 million combined loss to its insurance fund, which protects depositors.
Ameris, one of the largest banks in South Georgia, has been an active buyer of failed institutions in this state and in Florida. A
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Written by Michael Harris on July 15, 2011.
Victoria’s desalination plant has been plagued by bad weather. Photo: Reuters
LEIGHTON Holdings may have put its boardroom drama aside for now, but concerns of more profit downgrades have emerged before the embattled contracting company’s full-year results next month.
A string of delays and cost blowouts at some of its key projects, including Brisbane’s Airport Link and the Victorian desalination plant project, culminated in a $1.1 billion pre-tax write-down and a $757 million capital raising in April.
But analysts warn there remains significant risk of up to $400 million in further downgrades to come, casting doubt on the company’s net profit guidance of between $600 million and $650 million for this financial year.
An analyst at Goldman Sachs, Chris Savage, said the construction of the desalination plant has continued to be delayed by wet weather, which could lower earnings on the project by ”anywhere up to $200 million” – wiping out the wafer-thin $6 million profit the company currently expects.
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Written by Jeremy Martin on July 14, 2011.
Government departments are failing to use IT security services offered by GCHQ, a parliamentary committee has found.
The Intelligence and Security Committee said it is “disappointed” that departments have not invested in the services provided by GCHQ’s Communications-Electronics Security Group (CESG).
CESG offers IT security advice and assistance to the whole of government, the armed forces, other public sector bodies such as the NHS and the police, and private sector companies that support the UK’s national infrastructure. It operates on cost recovery basis, meaning that departments are supposed to pay for the services they consume.
However, an investigation by the Intelligence and Security Committee found that departments did use CESG’s services in the 2009/10 tax year to pay for its budget, leading to the £3.6 million shortfall.
Iain Lobban, the director of GCHQ, told the committee that he was very disappointed that CESG had been unable to get satisfactory funding from the rest of government over the past two years. “
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Written by Michael Harris on July 14, 2011.
The contest, with rules available on The UPS Store’s Facebook page, begins July 18 and runs through Aug. 31.
The Promotion Promotion, as it’s called, will also give away weekly prizes. The grand prize is an integrated marketing campaign.
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