Radio Shack loses $8M and stock hits 30-year low
NEW YORK >> RadioShack lost money in the first quarter as sales dropped, particularly in U.S. stores, and shares in the electronics retailer tumbled to their lowest point in more than 30 years Tuesday. RadioShack lost $8 million, or 8 cents a share, compared with a profit of $35.1 million, or 33 cents a share, a year earlier. The chain’s troubles are symbolic of wider problems in the brick-and-mortar electronics industry. RadioShack and Best Buy Co. have struggled as buying habits increasingly move away from devices like computers and cameras to tablets and smartphones, which are less profitable for the retailer. Circuit City has already failed.
Radio Shack’s shares fell 63 cents, or 10.6 percent, to $5.34.
Target begins Kapolei store remodeling
The Target store in Kapolei is undergoing remodeling to add fresh food to its merchandise selection.
Target Corp. announced in March that its Honolulu and Kona locations would be part an initial round of remodelings this year that add fresh produce, meat and prepackaged baked goods to roughly 10,000-square-foot grocery areas. The retailer also is updating its home, beauty, electronics and shoe departments.
Work on the initial round of 100 stores is complete. Work on the Kapolei store is slated to be finished by June 24.
The Kapolei store is among 90 Target stores in the second of three remodeling rounds. Target expects to remodel about 230 stores this year. Previously, about 900 stores featured the fresh-food layouts. Target has 1,765 U.S. stores, including three in Hawaii. A fourth Hawaii store is planned for Kailua.
HPD, HECO are Freedom Award semifinalists
The Honolulu Police Department and Hawaiian Electric Co. were selected as semifinalists for the 2012 Secretary of Defense Employer Support Freedom Award.
The award is the highest recognition given by the Department of Defense to employers for their support of the National Guard and Reserve. There were 133 semifinalists selected nationwide out of 3,236 nominees.
Employers chosen as semifinalists support their Guard and Reserve employees through a variety of formal and informal initiatives, including developing internal military support networks, providing full benefits to employees fulfilling their military obligations, caring for the families of deployed employees and granting additional leave to Guard and Reserve employees preparing to leave for or return from deployments, according to a DOD news release.
The 15 award recipients will be announced early this summer and honored in Washington, D.C., at the 17th annual Secretary of Defense Employer Support Freedom Award Ceremony on Sept. 20.
Americans remain confident in April
NEW YORK » Americans’ confidence in the economy has been resilient in April despite rising job cuts and falling home prices. The Conference Board, a private research group, said Tuesday that its Consumer Confidence Index is at 69.2, down slightly from a revised 69.5 in March. Economists were expecting a reading of 70, according to a FactSet poll. The current level is below February’s 71.6, which is the highest the index has been in about a year.
Consumer confidence is widely watched because consumer spending accounts for 70 percent of economic activity, including major items like health care.
Monthly smartphone bills down at AT&T
NEW YORK » Hidden in AT&T Inc.’s financial statements is a story that runs counter to its optimistic profit projections: The company is making less and less from each new smartphone subscriber.
Calculations by The Associated Press, based on AT&T’s public statements, indicate the average monthly bill for its smartphone subscribers has fallen to $80 from $88 in a year. That number should be of concern to Dallas-based AT&T because it is struggling with a slowdown in new subscribers — as most big phone companies are. Nearly all adults — and many kids — in the U.S. already have cellphones.
AT&T’s executives have been touting smartphones as the way to grow, since the devices require consumers to pay for data use in addition to voice calls and those services bring more revenue. So moving customers from regular phones to smartphones will keep revenue rising.
But AT&T’s own figures show that smartphone bills have shrunk by 9 percent over the past year.
Fitch puts Ford credit at investment grade
DETROIT » The Fitch Ratings agency lifted Ford’s credit rating from junk status to investment grade Tuesday, a sign that the company’s recovery from near collapse is almost complete. But Ford Motor Co. needs another agency, either Standard & Poor’s or Moody’s, to make the same upgrade before it can get its blue oval logo, factories and other assets out of hock.
Ford lost its investment-grade status in 2005 when it was racking up billions in losses as the SUV and truck boom went bust. The company mortgaged most of its assets, including its highly recognized logo, to borrow $23.5 billion the following year. That allowed Ford to revamp its cars and trucks and — unlike rivals GM and Chrysler — avoid bankruptcy protection.
Investment grade means a company’s debt has a low risk of default, while junk status is considered poor credit quality. Companies with investment-grade credit ratings generally pay lower interest on debt.
ON THE MOVE
Hagadone has announced that Jonelle Rezantes, vice president of sales, is leaving the company and has accepted a position with Hawaii Energy Connection. She joined Hagadone as a publications accounts coordinator 19 years ago when the company’s name was Tongg Publishing. Her last day at Hagadone will be May 4.
Finance Factors has promoted Eric Hodnefield to senior vice president, sales manager, from vice president, sales manager. He joined the company as a management trainee and held positions such as loan officer, telemarketing manager, branch manager and vice president, regional manager.
Pyramid Hotel Group has appointed Angelina Preza as the new director of sales and marketing at Sheraton Keauhou Bay Resort & Spa on Hawaii island. Her experience includes serving as senior director of sales for the Big Island Visitors Bureau as well as director positions with Aqua Hotels & Resorts, Sunterra Resorts, Marc Resorts Hawaii and the Lodge at Koele and Manele Bay hotels.
