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Tuesday, November 10, 2009
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BUSINESS TODAY
Business Today for November 03, 2009
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BRAC: General growth ahead for region
The greater Baton Rouge area should see growth in jobs and population through 2012, though with uncertainty in some sectors, such as state government revenue, according to a Baton Rouge Area Chamber forecast released today. For 2010, BRAC forecasts the region gaining 3,000 to 6,500 net jobs on a base of about 375,000 current employment. That’s a 1 percent to 2 percent gain. The region had averaged about 2.2 percent annual job growth the past five years, but that slowed to slightly more than one-half of 1 percent in 2008, as the recession set in. Most new jobs will come from health care, refining and chemical manufacturing expansions, digital media growth and a generally improving economy that grew 3.5 percent in the nation during the July-September quarter. “State government is a big unknown to us right now, but all indicators point to a decreasing (revenue picture),” said Adam Knapp, the chamber’s chief executive officer, who cited expected drops in federal matches for health-care programs. Knapp also said the Capital Region’s population should grow by about 5,200 people a year through 2012. In an online survey about the region’s economy, about 500 business leaders responded, with 55 percent expecting moderate growth in the region’s economy and 30 percent expecting no change. About 76 percent expect moderate growth in the regional economy from 2010 to 2012. “This is the clearest indicator, we think, of the optimism of the greater Baton Rouge metro region,” Knapp said. About 54 percent of business owners expect their own businesses to grow at 5 percent or more, he said.
LHC joins home health venture in Kentucky
Lafayette-based home health provider LHC Group Inc. has entered into a home health joint venture with Twin Lakes Regional Medical Center in Leitchfield, Ky., for an undisclosed sum. Kentucky is one of the states that require new home health agencies demonstrate their services are needed in order to get a license. The joint venture’s primary service area is one county with a population of 26,000, with around 3,900 over age 65. Net revenue for the agency during the most recent 12 months was roughly $640,000. LHC Group also announced today it has completed a deal to acquire Feliciana Home Health, a home nursing firm that serves Baton Rouge and the surrounding area. Net revenue for Feliciana Home Health during the most recent 12 months was approximately $12 million. Neither deal is expected to add materially to LHC Group’s 2009 earnings.
Rain slows La. crop harvest, hurting quality
Heavy rains over the past two months — the height of harvest season — have delayed harvests and hurt quality and production for many crops, according to LSU AgCenter officials. Only 29 percent of the cotton crop has been harvested so far, compared to the five-year average of 89 percent, AgCenter economist Kurt Guidry said. Only 46 percent of the sweet potato crop is harvested versus the average level of 69 percent; and 73 percent of the soybean crop is harvested as compared to the five-year average of 94 percent. Guidry said additional damage could occur with additional delays because of the large percentage of crops yet to be harvested.
Lafayette firm buys oil service group
RedHawk Energy Corp., the Lafayette-based oilfield service company, has bought Houston-based Xxtreme Group, for $66 million, RedHawk officials said today. RedHawk founder Darcy Klug said the acquisition fits the company’s strategy of investing in domestic oil and gas equipment manufacturing, leasing and service companies. The $66 million purchase represents cash, preferred stock and assumed debt. In the deal, RedHawk acquired Xxtreme Pipe Services LLC, Xxtreme Pipe Storage LLC, Xxtreme Tubular Processors LLC and Wolf Pack Rentals LLC, all part of the Xxtreme Group. With about 180 employees, Xxtreme Group posted $36 million in 2008 revenue and $11 million in net income. Through September, Xxtreme posted 2009 revenue of $20.5 million, down from $25 million in the first three quarters of 2008. Earnings for that period fell to $4.2 million this year from $7.3 million a year ago.
PetroQuest Energy’s profit drops 73 percent
LAFAYETTE (AP) — Independent petroleum producer PetroQuest Energy Inc. took a 73 percent hit on third-quarter earnings in the face of sharply lower energy prices from a year ago, the company said Tuesday. During the three months ending Sept. 30, PetroQuest earned $4.5 million, or 7 cents per share, on revenue of $50.3 million, compared with year-ago earnings in the third quarter of $16.8 million, or 32 cents per share, on revenue of $78.3 million. Analysts surveyed by Thomson Financial, on average, had forecast a per-share profit of 13 cents and revenue of $52.2 million for the latest quarter.
Gas storage facility planned for Lafourche
Bully Camp Gas Storage, a subsidiary of Houston-based BCR Holdings Inc., has begun taking bids for companies that want to store natural gas at a facility the company plans to build in Lafourche Parish. The storage facility is expected to begin operations during the fourth quarter of 2013. BCR intends to request permission from the Federal Energy Regulatory Commission later this year to build and operate the facility. As part of its FERC application, BCR will be requesting the necessary approvals to charge market-based rates for its proposed storage, parking and lending, and wheeling services.
Windstream acquiring NuVox for $463 million
Arkansas-based Windstream Corp. will buy NuVox Inc., a privately held local exchange carrier that serves businesses in Baton Rouge, Lafayette and New Orleans, for $463 million in cash and stock. Windstream will issue 18.7 million shares of stock valued at $183 million, based on Monday’s closing price, and pay $280 million in cash for Nuvox. Windstream will also assume $180 million in debt. NuVox has roughly 90,000 customers in 16 states in the Southeast and Midwest. Windstream provides phone, high-speed Internet and high-definition television services in 16 states. The company has $3.1 billion in annual revenue.
NATIONAL/INTERNATIONAL NEWS
EARNINGS REPORTS
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