Jindal announces pilot program to reduce dropouts

Gov. Bobby Jindal announced plans for a pilot program that will target 550 students who are in danger of dropping out of school. Jindal made the comments during a speech at the Louisiana Association of Business & Industry's annual meeting this morning. The program, which is scheduled to begin in the spring, will determine the best long-term plan for dropout prevention. It will be funded by money from the U.S. Department of Education and require no new state spending. Jindal did not say which districts or schools would participate in the program. Jindal also announced other priorities he will push for this year, including performance-based funding for higher education, tougher laws to prevent children from "predators" and health care reform in the form of Louisiana Health First.—David Jacobs

Shaw posts first-quarter loss

The Shaw Group posted a loss Thursday for its first quarter as the Japanese yen strengthened against the U.S. dollar, eroding the engineering and construction company's returns on its stake in nuclear power plant builder Westinghouse. Excluding the Westinghouse results, however, Shaw's adjusted profit beat analyst estimates. For the three months ending Nov. 30, Shaw lost $39.9 million, or 48 cents per share, on revenue of $1.9 billion, compared with a year-ago profit in the first quarter of $2.2 million, or 3 cents per share, on revenue of $1.71 billion. The company took a noncash loss of $161.2 million because of appreciation of the Japanese yen against the U.S. dollar. That loss amounted to $57.2 million in the year-ago first quarter. Without the Westinghouse nuclear segment, of which Shaw owns 20%, the company earned $62.8 million, or 75 cents per share, compared with the year-ago figure of $37.7 million, or 45 cents per share. Analysts surveyed by Thomson Reuters had forecast per-share earnings of 66 cents on revenue of $1.91 billion for the latest quarter. Shaw says its 11% revenue increase was driven by a contract for a power plant contract. The company's backlog of pending orders rose to $14.8 billion from $14 billion a year ago, with about $6 billion expected to bring in revenue over the next 12 months, Shaw says. That backlog does not contain amounts related to the company's recently announced deals to build six nuclear reactors in Florida, Georgia and South Carolina. Shares of Shaw were trading at over $26.25 as of 11 a.m. today, a jump of more than $4, or 18.5%.

Chamber lays out 2009 priorities

The Baton Rouge Area Chamber's 2009 agenda is out. Geared for Innovation, BRAC's to-do list for the coming year, identifies priorities it believes are most essential to the Capital Region's long-term prosperity. Those are:

—Execute an aggressive regional business recruitment, retention and expansion program to secure 800 jobs at competitive wages;

—Support key public education reforms to increase student achievement;

—Pursue further development of the digital media strategy;

—Encourage the establishment of local and regional business incentives;

—Support and promote LSU’s development of the next phase of its national flagship agenda;

—Pursue opportunities to support the institutional advancement of Southern University as an economic driver;

—Champion a state and regional innovation strategy;

—Pursue regional transportation solutions to increase mobility;

—Nurture and develop regional workforce solutions;

—Advocate for targeted tax and incentive reforms that spur growth, remove unorthodox business taxes and provide small business relief.

Adam Knapp, BRAC's president and CEO, says the fact that the Baton Rouge region is less impacted than by the national recession than other parts of the country offers the opportunity to bolster regional competitiveness in 2009. "In a global economy increasingly driven by knowledge and innovation, our 2009 agenda reflects those priorities that have the greatest potential to advance our vision of the Baton Rouge area as the creative capital of the South," he says. See BRAC's complete 2009 agenda here.—Steve Clark

Pennington groundbreaking slated for Wednesday

A groundbreaking ceremony for Pennington Biomedical Research Center's clinical research building will be held at 10 a.m. Wednesday. Gov. Bobby Jindal and Mayor Kip Holden are expected to attend the event to mark construction of the $18.2 million, four-story, 90,000-square-foot building. Bob McNeese, Pennington’s assistant executive director of facilities, says contractor Milton Womack was given notice to proceed this week and is scheduled to finish the project in July 2010. McNeese says Pennington has outgrown the current 40,000-square-foot facility, requiring the use of five temporary office trailers. The new building will be connected to the old one, which Pennington plans to renovate. The project was never threatened by the state’s $341 million deficit since the construction money had already been appropriated in last year’s special session, McNeese says. Jindal says Pennington’s operating costs will be spared from the current round of budget cuts.—David Jacobs

Nicholson developers wrap up $1.3 million in sales

The mixed-use project planned for a section of Nicholson Drive between downtown and LSU continues to grow. According to real estate filings, Nicholson Estates, a partnership between Lafayette oilman Mike Moreno and White Sands Development Group of Leesburg, Fla., wrapped up three deals last month with a total value of $1.3 million. Plans are for the development to encompass about 20 acres. The project is expected to be a mix of residential, commercial and civic spaces.

Albemarle signs deal to improve gas yields

Albemarle Corp. has signed a collaboration agreement with OptiFuel Technology Group to commercialize a new additive designed to improve gasoline and diesel fuel yields from refineries. OptiFuel is a proprietary technology that works with any refinery in order to increase the amount of fuel that can be produced from crude oil. Details of the agreement with Illinois-based OptiFuel were not released.

Engineering firm gets $6 million coastal restoration contract

The Louisiana Department of Natural Resources has awarded a $6 million contract to Arcadis to provide design services for the Violet Freshwater Diversion Project, one of the state's top coastal restoration priorities. Arcadis' Baton Rouge office will handle the work, which will determine the cost effectiveness and environmental impacts of diverting the Mississippi River at Violet into the Biloxi Marshes and Mississippi Sound. Officials with Arcadis say the project will rebuild the storm surge buffer around metro New Orleans and improve water quality in the Mississippi Sound.

This story has been updated since it was first published

One more week left for Chamber survey

The Baton Rouge Area Chamber and Business Report are conducting a brief survey of local business executives and industry experts to asses the economic outlook of the Capital Region for 2009 and beyond. The survey, which closes Jan. 16, should take about 5 to 7 minutes to complete. A summary of responses will be made public in a joint news release in late January and in the pages of Business Report. Chamber officials would like to get about 500 responses in order to provide as accurate an outlook as possible. To participate in the survey, click here.

National Lampoon picks up 'Dirty Politics'

Comedy producer and distributor National Lampoon Inc. has agreed to distribute the movie Dirty Politics, filmed in Baton Rouge last year, to theaters across the nation some time in the spring. “We’re really excited. I just wanted this movie to have a chance,” says writer-director Steven Esteb, a Los Angeles native who now lives in Eunice. “I knew if we got it in a theater, we’d have a shot.” National Lampoon also agreed to distribute Esteb’s next three films in theaters. Those movies will be shot in south Louisiana. Read the full version of the story here.—Rebecca Breeden

Jindal profiled by British news magazine

Gov. Bobby Jindal has been tagged as "The savior of the Republicans" in a profile in the The New Statesman, a British current affairs magazine. The magazine notes how Jindal appeals equally to the GOP's fiscally conservative and socially conservative bases, along with bringing some diversity to the party. While Jindal has been called the Republican version of President-elect Barack Obama, because of his youth, intelligence and ethnicity, the magazine notes the differences between the two men: Obama has embraced his African heritage, while Jindal has downplayed his Indian background. Read the profile here.

Wildlife commission undergoes changes

Bobby Samanie was named chairman of the Louisiana Wildlife and Fisheries Commission today. Samanie, a lifelong resident of Terrebonne Parish, was chosen as the commission’s new chairman at its monthly meeting, replacing Opelousas attorney Patrick C. Morrow. Samanie was appointed by former Gov. Kathleen Blanco and represents commercial fishing interests on the commission. He is a past president of the American Shrimp Processors Association and the Dulac Bassmasters Club. It’s the first time in several years that a commercial fishing representative has ascended to the board’s top spot. The commission also welcomed a new member, Ann Taylor of Luling, who is one of the first representatives from the journalism field in recent memory. She is the owner and editor of Louisiana Sportsman Magazine, a periodical about outdoor life. Taylor is also editor of the St. Charles Herald-Guide. She will serve as an at-large member, representing interests of the state as a whole. The panel, made up of gubernatorial appointees, is charged with enforcing laws and promulgating rules pertaining to commercial and recreational hunting, fishing and trapping. It also handles some conservation issues.—Jeremy Alford

Poll: Most carrying little debt

Most Daily Report readers say they are carrying less than $1,000 in credit card debt. Fifty-three percent of the people who responded to an online survey say they have less than $1,000 in debt, while 18% say they have more than $10,000 on their credit cards. Eighteen percent of respondents say they have between $1,001 and $5,000 in debt, while 11% have between $5,001 and $10,000. Nearly 1,250 people participated in the survey. The average American owes more than $8,000 on their credit cards.

Today's question: What should be the Baton Rouge Area Chamber's top priority for 2009?

Retail roundup: Macy’s to close 11 stores in nine states … Women's clothing chain plans to close stores … Retailers report dismal December sales

More than 900 employees affected: Department-store operator Macy's Inc. said today it will close 11 underperforming stores in nine states—affecting 960 employees—and lowered its forecast for the fourth quarter after one of the weakest holiday seasons in years. The stores are located in Los Angeles; Colorado Springs, Colo.; Westminster, Colo.; West Palm Beach, Fla.; Hawaii; Indianapolis; Brooklyn Center, Minn.; St. Louis; Natrona Heights, Pa.; West Mifflin, Pa.; and Nashville, Tenn. Cincinnati-based Macy's Inc. says the closures will cost about $65 million, most of which will be booked in the 2008 fourth quarter. Clearance sales at the stores begin next week.

No New York: New York & Company, a women's clothing chain, says it plans to close between 40 and 50 underperforming stores over the next five years. The company, which has about 600 locations in U.S. malls, also plans to cut more than 300 managerial positions. The chain has been a victim of the national recession, as shoppers cut back spending in the face of a housing slump and mounting job losses. New York & Company has nine stores in Louisiana, including locations in the Mall of Louisiana and the Mall at Cortana.

Even Wal-Mart affected: Retailers reported dismal sales figures for December today as even Wal-Mart Stores Inc., one of the bright spots in the industry, finally buckled under the pressures of the deteriorating economy. Among the many retailers that reported steep sales declines were Sears Holdings Corp., which operates Kmart (1.1% decrease) and Sears (7.3%) stores, luxury retailers Saks Inc. (19.8%) and Neiman Marcus Group (27.5%), and apparel retailers Limited Brands Inc. (10.0%), Gap Inc. (14.0%), Wet Seal Inc. (12.5%) and Abercrombie and Fitch (24.0%). But the biggest surprise came from Wal-Mart, the world's largest retailer, which posted a smaller sales gain (1.2%) than what Wall Street expected and cut its fourth-quarter earnings outlook.

News roundup: Bad economic times lead to more traffic tickets … World auto execs anticipate significant drop in market share for Big Three … Continuing jobless claims rise more than expected

Another reason to hate a recession: An assistant vice president with the St. Louis Federal Reserve found that traffic tickets go up significantly when local government revenue falls, the St. Louis Post-Dispatch reports. Thomas A. Garrett and economist Gary A. Wagner are set to publish a study in next month's Journal of Law and Economics that shows a 1% drop in local government revenues leads to a .32% increase in the number of traffic tickets. "Local governments behave, in part, as though traffic tickets are a revenue tool to help offset periods of fiscal distress," the report says. For more information, click here.

Not a good outlook: A survey of global automotive executives found that most expect U.S. automakers to see a significant drop in their share of the market, but that restructuring efforts will make the American manufacturers more efficient and competitive. The report, released by KPMG and based on interviews with more than 200 senior executives worldwide, found that Toyota, Honda, Hyundai and Volkswagen are expected to gain market share in the next five years, while expectations are lower for General Motors, Ford and Chrysler. Half of the executives expect restructuring plans will succeed for American automakers, and 57% say the process will be finished by 2011.

Unemployment remains high: The Labor Department reported today that initial applications for unemployment insurance dropped by 24,000 to a seasonally adjusted 467,000 for the week ending Jan. 3. Wall Street economists expected initial claims to increase, but analysts said the new figure reflects the difficulty the government has in making seasonal adjustments over the holiday period. The four-week average of initial claims, which smoothes out fluctuations but also includes the shortened holiday weeks, fell by 27,000 to 525,750. The number of people continuing to claim jobless benefits jumped unexpectedly by 101,000 to 4.61 million. That was above analysts' expectations of 4.5 million and the highest level since November 1982, when the nation was emerging from a steep recession, though the labor force has grown by about half since then. Unemployment figures due out Friday are expected to show that the U.S. lost a net total of 500,000 jobs in December. If accurate, that would bring total job losses last year to 2.4 million, the first annual job loss since 2001 and the highest since 1945, though the number of jobs has more than tripled since then.