This Morning's Headlines / Wed, Oct. 28, 2009
News Alert: Orion Instruments plans BR expansion
A company that makes petrochemical tank-measuring instruments plans to move into a new, 45,000-square-foot complex north of Cortana Mall. Orion Instruments, whose owners are based out of the Chicago area, chose to stay local thanks partly to the Baton Rouge Area Chamber’s help in finding an expansion site, the chamber says. The move is expected to add 35 jobs averaging $40,000 salary to the company’s current 70 employees, BRAC says. Chad Cornett, BRAC’s director of business development, says Orion makes equipment typically produced in the Houston area and might have relocated out of state if not for local incentives. “The business growth was faster than they expected,” Cornett says of the company that opened its doors Sept. 11, 2001, yet grew into a $17.5 million revenue-maker for 2008. Orion is currently based out of an 18,000-square-foot facility south of Airline Highway and Siegen Lane. Among the incentives for Orion are a 10-year Louisiana Economic Development payroll rebate of 5% to 6% for directly created jobs and a low-interest, performance-based loan of $350,000 from LED. The parish will provide a 1.9% rebate and the state will provide a 4% rebate on sales and use taxes because the new location is in a Local Enterprise Zone, Cornett says. Construction should start on the new complex by early February.—Todd R. Brown
Britton & Koontz, MidSouth report earnings drop
Britton & Koontz and MidSouth Bank both posted significant drops in third-quarter earnings as the two community banks continued to deal with the recession. The parent company of Britton & Koontz bank reported third-quarter earnings were down 66% from last year, which it blames on a special FDIC assessment and higher provisions for loan losses. The Mississippi-based bank says it earned $324,195, or 15 cents per diluted share, in the third quarter, compared with $943,080, or 45 cents per diluted share, in the third quarter of 2008. Interest and non-interest income was down 8%, from $6.4 million in the third quarter of 2008 to $5.9 million.
The parent company of Lafayette-based MidSouth Bank posted a 23% decrease in third-quarter profit as businesses continued to hold off on borrowing money. For the three months ending Sept. 30, MidSouth earned $1.4 million, or 17 cents per share, compared with year-ago earnings in the third quarter, which were $1.86 million, or 28 cents per share. MidSouth blamed the earnings drop on customers being in a "wait-and-see" mode. It also says it had $15.5 million in non-performing loans during the quarter, with $12.6 million coming from two commercial loans in Baton Rouge. MidSouth saw a 6.2% drop in interest and non-interest income, which went from $17.6 million in the third quarter of 2008, to $16.5 million this year.
Regions' La. branches growing slower than other locations
Regions Bank says its overall deposits increased 8.7% for the year ending June 30. But its branches in three Louisiana metro areas lagged behind that growth pace. The bank reported its deposits in metro Baton Rouge went up 3.4%, to $1.7 billion and 6.2% in Shreveport, to $1.25 billion, according to FDIC data. Regions saw its New Orleans deposits drop by 5.7% over the year, to nearly $2.4 billion. New Orleans was the only one of 25 major markets in the South and Midwest where Regions saw deposits drop. Regions saw double-digit percentage growth in seven of its eight biggest markets, including its hometown of Birmingham, Ala.; Miami; Tampa, Fla.; and Memphis, Tenn.
B.R. foreclosures still low
U.S. foreclosures increased by 23% in the third quarter as the recession caused people to have trouble paying their house notes. One out of every 136 households received a foreclosure filing, according to RealtyTrac. Baton Rouge ranked 152nd out of 203 metro areas for foreclosures, with one filing per 375 homes. That's a 129% increase over the rate in the third quarter of 2008, but RealtyTrac notes the increase may not be as high because of improved collection data. Las Vegas continued to have the highest foreclosure rate, with one out of every 20 homes getting a notice during the quarter.
U.S. new-home sales fall
Sales of new homes dropped unexpectedly in September as the effects of a soon-to-expire tax credit for first-time buyers started to wane. The Commerce Department says sales fell 3.6% to a seasonally adjusted annual rate of 402,000 from a downwardly revised 417,000 in August. Economists surveyed by Thomson Reuters had expected a pace of 440,000. It was the first decline since March. Sales in September were down 7.8% from a year ago. The median sales price of $204,800 was off 9.1% from $225,200 a year earlier, but up 2.5% from August's level of $199,900.
Tech Park U accepting applications
The Louisiana Technology Park is looking for rising entrepreneurs to participate in its fourth class at Tech Park U. The nine-month program is designed for promising technology businesses. Applicants receive training on how to develop a business plan, along with a discount on space at the Tech Park and access to all of the office's resources. After the program is completed, the applicant with the best business plan will receive a $2,000 grant and possible acceptance into the park's business incubator. The deadline to apply for the classes is Nov. 22. Applications can be obtained at TechParkU.com.
Census: 'Brain gains' for high-tech cities
Many college graduates are passing up industrial centers and former hotspots in the Southwest, which have been hit hard by the recession, in favor of life in urban, high-tech meccas. Their moves are fueling a resurgence of brainiacs in parts of California, North Carolina and Texas. Census data covering 2006-2008 show that Austin, Texas; Portland, Ore.; Charlotte, N.C; Raleigh, N.C.; and Seattle saw large jumps in residents with at least a college degree. Each offers the promise of specialized tech jobs and hip lifestyles. San Francisco, with its burgeoning biotech industry, saw significant increases in residents with advanced-level graduate degrees. Houston, home to NASA and several medical centers, saw gains in more educated residents but also those with only a high-school degree. In contrast, metropolitan areas with high rates of foreclosures, less tech-based economies or increasing unemployment saw declines or slower rates of growth in residents with a college degree or higher. They included Los Angeles, Atlanta, Orlando, Fla., as well as New Orleans, Detroit and Cleveland.
Poll: Most haven't started Christmas shopping
Seventy percent of people who responded to a Daily Report poll say they haven’t started Christmas shopping yet. Thirty percent of people who participated in the survey say they have started buying gifts. Nearly 1,150 people participated in the survey.
Today's question: Do you agree with a new federal policy that will ban sales of Gulf oysters during the summer months, unless they are treated to destroy bacteria?
Local TV show premieres Sunday
The pilot episode for a locally made children's television program premieres at 2 p.m. Sunday at the Rave Motion Pictures Mall of Louisiana 15. Produced, directed and edited by Baton Rouge-native Aaron Williams and a team of local film industry veterans, JK's House stars Robin Givens and a host of young Louisiana talent. The show centers on a precocious little girl and her friends, and it blends family values and life lessons with musical numbers and dance sequences choreographed by Kris Cangelosi, artistic director of the Cangelosi Dance Project. "Each episode will have a theme," Williams says. "By the end of the pilot, JK has learned the value of thankfulness." Three episodes of JK's House were produced at Celtic Media Centre last summer. Williams is pursuing distribution and broadcast opportunities for the series.—Jeff Roedel
Are you the Fittest Exec in the Capital Region?
Think you are more fit than your peers? Business Report launches its second Fittest Execs competition, in which Capital Region business executives compete in four categories (men 44 and under, men 45 and over, women 44 and under and women 45 and over). The competition is open to executives (C-level, president, vice president, owner, partner, executive director or retired executives) and mid-level managers. In addition, companies with a minimum of five participants are eligible for a team competition. Fitness appraisals will take place at Bally Total Fitness Baton Rouge through Friday, Nov. 20, with the results to be announced in the Dec. 29 issue of Business Report. The deadline to enter is Monday, Nov. 16. Click here to register or for more information.
