What does one learn from reading today's Business Today section? That it's good to be the bank. Or the aerospace electronics firm. Or the outfit that makes glass for flat-panel displays for TVs, cell phones, etc. Not so good, at least for one company, to be in the oil-refining game.
- Rebound continues at parent of Evans Bank- Jonathan D. Epstein/The Buffalo News Evans Bancorp swung back to a profit in the second quarter, as the Southtowns banking company earned more from lending and set aside much less for loan and lease losses.
- Corning profits surge - AP Corning Inc. posted a sharp increase in its second-quarter net income Wednesday thanks to strong sales of its glass for flat-panel televisions, computers and mobile devices. [So, at Corning, when they say sales are flat, that's a good thing?]
As is often the case, Business Today might also be called Med/Tech Today:
- Switching to electronic medical records - Matt Glynn/The Buffalo News The shift toward electronic medical records is taking root, a change that should benefit doctors and patients alike. That was the message from members of a panel discussion hosted Wednesday by Infotech Niagara, an information technology group. Electronic medical records bring together a patient's health history from different sources. The goal is to increase efficiency, give doctors more information to work with and spot potential risks, like prescription drugs that could cause an adverse reaction if allowed to interact. ... HEALTHeLINK is helping physicians make the transition to electronic medical records. The clinical information exchange is supported by BlueCross BlueShield, Independent Health and Univera Healthcare. It recently received a $16.1 million federal stimulus grant to advance its work in health information technology.
- Greatbatch sees profits jump 19 percent - David Robinson/The Buffalo News Greatbatch Inc.’s second-quarter profits jumped by 19 percent as the Clarence battery and medical device maker’s sales grew while its customers began rebuilding their inventories.
From Business Today, one entrepreneur shows us where the beef is, while an allegedly nasty bill collector pays up. Or, put another way, Au jus vs. Aw, jeez!
- Former engineer opens roast beef stand - Samantha Maziarz Christmann /The Buffalo News Working as a software engineer downtown, Merl Rabb wondered why the only food cart choices outside his office building were hot dogs, hot dogs and more hot dogs. He planned that, when he retired, he would hit the streets with something different. But after being laid off twice -- first in 2008 and again in 2009 -- then working a series of short-term consulting gigs, he decided there was no time like the present to make the plunge. Enter Riley's Roast Beef, the gleaming silver food cart he mans himself at the corner of Main and Court streets. Wearing an immaculate white coat, he serves freshly made roast beef sandwiches on kimmelweck or hard roll with au jus and a pickle for $5.50 apiece. It's a higher price point than the $1.50 hot dog mainstays, but it's also a different product aimed at a different clientele. Rabb partnered with well-loved companies to offer fresh, local ingredients -- rolls from DiCamillo Bakery in Niagara Falls, Red Osier beef from Rochester and fresh ground Famous horseradish from the Broadway Market.
- Hamburg debt collector fined $125,000 by Cuomo - Jonathan D. Epstein /The Buffalo News A Hamburg-based debt collector agreed to pay $125,000 in fines and costs, and to reform its business practices, in a settlement announced Tuesday by state Attorney General Andrew M. Cuomo. In a press release and court documents, Cuomo accused Lewis Hastie Receivables, of 56 Main St. in Hamburg, of violating state and federal debt collection laws. Cuomo said the firm, known as LHR, "repeatedly harassed and intimidated consumers, including some who did not even owe the debt in question." ... "It is unacceptable for debt collection companies to use illegal tactics for their own profit and we will continue to put a stop to the practice," he said. LHR president Wayne Lewis said in an emailed statement that the firm has been "fully cooperating" with Cuomo's office during the state investigation over the past year, and reached a settlement to "resolve this matter" but "does not admit to any wrongdoing." He also noted that the "locally owned and operated company" provides "good-paying jobs to hundreds of individuals throughout Western New York" and is "a good corporate citizen that gives back to the community." The firm was named as 2007 Business of the Year by the Town of Hamburg, according to its website. Related: A.G.'s website NY Dept Help.
- Financial Institutions posts $5.2 million quarterly profit - Jonathan D. Epstein/The Buffalo News The parent of Five Star Bank said Monday that second-quarter profits doubled from a year ago, as both loan and fee revenues grew, the bank cut expenses and losses fell. Warsaw-based Financial Institutions reported profits of $5.2 million, or 39 cents per share, up from $2.6 million, or 16 cents per share, a year ago. “The strong second-quarter earnings reflect our ongoing efforts to unlock our full potential,” said President and CEO Peter G. Humphrey. “We have sustained the positive earnings momentum of the previous two quarters. We continue to execute on our plan, and our performance is indicative of the strength of our franchise and results-focused culture.”
- Northwest Bancshares profits more than double - Jonathan D. Epstein/The Buffalo News Northwest Bancshares said second-quarter profits more than doubled from a year ago, as loans and deposits grew, its profit margin increased and credit quality remained stable. The Warren, Pa.-based parent of Northwest Savings Bank reported profits of $16.1 million, or 15 cents per share, up from $7.3 million, or 7 cents per share, a year ago. "Our most recent quarter was one of significant achievement," said CEO William J. Wagner. "Our earnings increased significantly."
- Export innovation called competitive key - Matt Glynn/The Buffalo News Great Lakes metro areas such as the Buffalo Niagara region are effectively using exports to bolster their economies, but their manufacturers need to become more innovative to make the most of foreign sales and create jobs, a new study says. The report, prepared by the Metropolitan Policy Program at the Brookings Institution in Washington, D.C., also found that Buffalo Niagara performs well in exporting services, a category expected to grow. ... While exporting holds the promise of additional job growth, the study warned that Great Lakes metro areas should not take anything for granted. "A legacy of success in exports does not guarantee further dominance, a lesson that Great Lakes metros should have learned through rough experience," the study says.
- Tops looks to add more gas pumps - Samantha Maziarz Christmann/The Buffalo News Tops Friendly Markets wants to expand its gasoline business, and in some cases is looking to off-site locations to make that happen. The 126-store chain has kiosk gas stations at 35 locations. Frank Curci, chief executive officer of Tops, said the company would eventually like to offer gas pumps at all of its stores but right now is looking for ways to introduce them at or near an additional 20 to 30 Tops sites. Most of the gas stations would end up in the parking lots of existing stores, but where that’s not possible, Tops would look to take over — not build — existing gas stations in close proximity or directly adjacent to Tops locations. ... “It’s a big part of what makes us different,” he said. “Stores with gas stations continue to outperform stores without them. And when we put a gas station in a store for the first time, that store’s sales go up.”
- Electric car charging stations urged - AP/Buffalo News The auto industry calls it range anxiety: Drivers want electric cars but worry they won’t have enough juice to make long trips. After all, what good is going green if you get stranded with a dead battery? It’s a fear that automakers must overcome as they push to sell more battery-powered cars. So government and business are taking steps to reassure drivers by building up the nation’s network of electric charging stations. The hope is Americans will become more comfortable buying cars such as Nissan’s all-electric Leaf [right], due out late this year, which can travel just 100 miles on a single charge. That’s fine for a commute but potentially stressful for longer road trips. [Don't forget the Chevy Volt.] Related: - Obama pours energy into electric-car batteries, but will it jump-start industry? - Washington Post - Electric car industry seeks help - The Detroit News - Washington state creating electric-car charging network - USA Today - Electric Drive Components Made in Vermont - Council on Environmental Quality [U.S. government]
Business Today looks at the auto industry, and sees a little Back to the Future going on.
- Ford hopes revamped Explorer will revive sales- Matt Glynn/The Buffalo News Ford Motor Co. is set to launch a revamped Explorer, hoping to rejuvenate sales of a vehicle identified with the boom years of SUVs. Ford will reveal the new vehicle Monday on Facebook and hold events in several cities that same day to promote the launch, a departure from an unveiling at an auto show. Buffalo won’t host of one of those debut events, but Ford representatives were in the city Thursday at a downtown exhibit on Main Street to meet with dealers and to showcase the automaker’s safety technology, such as a “park assist” [demonstrated at right] feature that guides a vehicle into a parallel parking space without the driver touching the steering wheel. ... Ford has kept the new Explorer mostly under wraps, posting glimpses on Facebook to build interest, although some “spy shots” taken by auto publications are circulating. Related: - The Ford Explorer: A Retrospective - Jeffrey Jablansky/Automobile magazine - Ford Explorer exiting the shadows - Brent Snavely/Detroit Free Press - 2011 Ford Explorer Hits 30K Fans - Nelson Ireson/The Car Connection
- GM to purchase financing company - AP/Buffalo News DETROIT -- General Motors Co. will acquire AmeriCredit Corp. for $3.5 billion, a deal that allows the automaker to expand loans to customers with poor credit and offer more leases, key areas where GM must grow to accelerate its car sales. But the acquisition of the independent auto financing company also means that GM, which is 61 percent owned by the U.S. government, is getting back into the business of making risky loans. GM said it advised the U.S. Treasury Department of the acquisition, although government approval was not required. GM executives have said for months that they were missing sales opportunities because of lack of credit for lease deals and financing for subprime buyers, those with credit scores below 620 on a 300-to-850-point scale. About 40 percent of U.S. customers have below prime credit scores, said Chris Liddell, GM's chief financial officer. Related: - GM Draws Washington Scrutiny Over Purchase of Subprime Lender - Bloomberg News - Grassley seeks details of GM purchase of AmeriCredit Corp - U.S. Sen. Charles Grassley, R-Iowa “If GM has $3.5 billion in cash to buy a financial institution, it seems like it should have paid back taxpayers first. After GM’s experience with GMAC, which left GM seeking a taxpayer bailout, you have to think the company and, in turn, the taxpayers would be better off if GM focused on making cars that people want to buy and stayed clear of repeating its effort to make high-risk car loans.”
- First Niagara earnings soar - Jonathan D. Epstein/The Buffalo News First Niagara Financial Group reported record operating earnings for the second-quarter today, driven by its two Pennsylvania acquisitions, strong commercial loan and core deposit growth in all areas and stable credit quality. The Buffalo-based parent of First Niagara Bank said it earned $44.9 million from operations, or 22 cents per share, up 76 percent from $25.5 million, or 18 cents per share, in the same quarter a year ago.
- Earnings increase by 271% at M&T - Jonathan D. Epstein/The Buffalo News M&T Bank Corp. reported Wednesday that second-quarter profits more than tripled, driven largely by a “significant rise” in income from lending and a smaller amount of money set aside for loan losses. The Buffalo-based banking company reported earnings of $189 million, up 271 percent from $51 million a year ago and 25.2 percent higher than the $151 million in this year’s first quarter.
- Major airlines post high profits - AP/Buffalo News US Airways joined Delta and United in posting a big second-quarter profit. American Airlines missed the party. Alone so far among the nation's biggest airlines, American reported Wednesday that it lost money this spring, although far less than it did a year ago. American blames its troubles on high fuel and labor costs and a competitive handicap on international flights. Overall the second quarter is shaping up as the airline industry's best in three years.
It's just not moving everywhere.
- Fed admits recovery fragile - Jeannine Aversa /AP/Buffalo News Federal Reserve Chairman Ben Bernanke told Congress on Wednesday that even though the economic recovery has weakened, the Fed plans no new steps for now to try to bolster it.
So:
- Long-sought extension of jobless benefits clears House for Obama's signature - AP/Buffalo News The 272-152 House vote Thursday will send the measure to President Barack Obama, who has promised to quickly sign it. The House vote came less than 24 hours after a mostly party-line Senate vote Wednesday on the measure, which is just one piece of a larger Democratic jobs agenda that has otherwise mostly collapsed after months of battles with Republicans.
- Restoring traffic to Main Street gets state funding to advance - Jonathan D. Epstein /The Buffalo News The effort to restore car traffic to Main Street in downtown Buffalo can move forward once again. ... State officials signed the federal funding agreement that the City of Buffalo needed before it could move the design contract forward for the next stage, Buffalo Place Planning Manager Debra L. Chernoff told the group’s board. ... The “Cars Sharing Main Street” project is designed to restore auto traffic to the pedestrian mall south of Tupper Street, after years of criticism that businesses there have suffered. The effort has already seen cars return to the 700 block, and plans call for proceeding one block at a time down the street to minimize disruption. The current portion, only the second since the initiative began, involves the 600 block of Main Street which includes the Theatre District.
- HSBC considering building new facility in downtown Buffalo - Jonathan D. Epstein /The Buffalo News HSBC Bank USA is considering building an enlarged campus-like downtown office facility behind its existing Atrium building next to the HSBC Arena, as one of about a half-dozen options under review, real estate sources said. According to several sources familiar with the bank's thinking, the U.S. subsidiary of HSBC Holdings Plc of London may build a sprawling new complex behind the Atrium, in the Cobblestone District. ... A major corporate presence in downtown Buffalo, HSBC is evaluating its property needs as the lease on its space in the HSBC Center tower will expire in October 2013. The bank employs 4,000 in downtown Buffalo in the 38-story tower and in the smaller HSBC Atrium.
- Bass Pro given 14 days to sign lease - Mark Sommer/The Buffalo News Buffalo has kept its end of the bargain with Bass Pro Shops, and after nine years, the fishing and hunting chain needs to either fish or cut bait in the next 14 days, Rep. Brian Higgins says. Higgins said Buffalo was "well positioned" to develop the waterfront without Bass Pro if necessary. "There are many other opportunities to encourage investment in Canal Side," he said. "I'm just very confident where we're going with waterfront development, and people have every reason to be very, very optimistic that we will finally have the waterfront people have wanted for decades. And I expect to be held accountable." - Official sees Bass Pro at Canal Side - Mark Sommer/The Buffalo News
- Buffalo Niagara gets major boost in jobs - Stephen T. Watson/The Buffalo News For a region used to losing jobs like we lose Super Bowls and free-agent hockey players, Tuesday brought a trophy-worthy dose of good economic news. Four companies announced plans to hire more than 650 people in separate projects in an area still struggling to recover from the recent recession. This comes as some rare good news for job seekers in a region where plant closings and job cuts remain all too common. "It's very serendipitous that a bunch of very different companies is announcing these job increases at the same time," said Andrew J. Rudnick, president and chief executive officer of the Buffalo Niagara Partnership. "There isn't a common reason for them, but each of them is a precious asset." Walmart, the publisher of the Talking Phone Book and a reborn fire truck maker all said they are seeking workers. And a fast-growing pharmaceutical business announced plans to move to the Buffalo Niagara Medical Campus and start hiring, the latest boost to a life-sciences sector that carries the high hopes of local officials.
Related: - Walmart hiring 350-400 for new store in Lancaster - Matt Glynn/The Buffalo News Increasing its local footprint, Walmart has started hiring 350 to 400 people to staff its new Town of Lancaster store. The store, at 4975 Transit Road, north of William Street, is set to open Sept. 15. The majority of the new hires will start working there next month. [Hiring website here] - Call center in Amherst to boost jobs - Dino Grandoni/The Buffalo News Amherst’s status as a call center hub got a boost Tuesday when the White Directory Publishers announced plans for a telephone sales center that will employ 150 by the end of the year. The company — which publishes LocalEdge, formerly known as the Talking Phone Book — said it will continue hiring for telephone sales positions at its Amherst-based office. [Hiring website here] - New center coming to medical campus - Samantha Maziarz Christmann/The Buffalo News Chalk up another addition to the Buffalo Niagara Medical Campus. OncoMed Pharmaceuticals of Great Neck will occupy 4,500 square feet at the Campus’ Innovation Center come September, and it will bring new jobs with it. The company provides bio-oncology pharmaceutical care management and pharmacy services. [Hiring website here]
