Business news in brief

QUOTE OF THE DAY

“We expect Toyota to hold the No. 1 title in the industry until 2016 or 2017.”

Masatoshi Nishimoto, IHS automotive analyst Article, 1D

CEO at P.A.M. saw pay dip 18% in ’13

Daniel Cushman, chief executive officer at P.A.M.

Transport Services Inc., earned $720,034 in 2013, a drop of 18 percent from the previous year.

Cushman’s base salary increased to $447,000 from $437,000, but he earned nearly $150,000 less in stock options and other bonuses, according to the company’s annual proxy statement filed with the Securities and Exchange Commission.

Allen West, vice president of finance, earned $201,199 during 2013, his first year in the position. West had been with the company previously, but became a company executive in June after Lane K. Stewart left the company.

Stewart, whose resignation went into effect in September, was paid $308,571, a decrease from the $323,142 he earned the previous year.

Cushman earned $90,850 in stock awards and West had $22,713 in stock options.

The Tontitown-based trucking and transportation company reported $402.8 million in revenue for 2013 with operating income of $5.1 million.

Canada to phase out tank car in wreck

TORONTO - The Canadian government said Wednesday that it will require a three-year phaseout of the type of tank cars involved in the Quebec train derailment last summer that killed 47.

In July, an unattended oil train derailed and exploded in Lac-Megantic, Quebec. Forty-seven people were incinerated and 30 buildings destroyed.

A government official confirmed the phaseout of the DOT-111 tanker cars used to carry oil and other flammable liquids. The official spoke on condition of anonymity because that person was not authorized to speak publicly.

Canada’s transport minister announced the change in response to recommendations by Canada’s Transportation Safety Board in the aftermath of the tragedy.

The DOT-111 tank car is considered the workhorse of the North American fleet and makes up about 70 percent of all tankers on the rails.

London’s Heathrow touts new terminal

LONDON - The run-down, overcrowded Terminal 2 at London’s sprawling Heathrow Airport is long gone, about to be replaced by a spacious new building built to handle 20 million passengers each year.

The new terminal was shown to reporters Wednesday ahead of the June 4 opening.

Lead architect Luis Vidal said its extensive use of natural light and high quality acoustics should make it a calm space for travelers accustomed to dark, noisy airports.

“If you make it intuitive, pleasant, joyful, you can take away a completely different memory of the terminal,” he said. “You can never completely erase your memory of the former Terminal 2, because it was a dreadful experience. This will be completely the opposite. This will be a destination. People will want to come here.”

  • The Associated Press

Postal workers plan protests at Staples

WASHINGTON - Postal workers plan protests in 27 states today against the opening of postal counters in Staples stores that are staffed with Staples employees.

Last year, Staples office supply stores began providing postal services under a pilot program that now includes some 80 stores. The American Postal Workers Union objects, because the program replaces well-paid union workers with low-wage, nonunion workers.

The union says that could lead to layoffs and the closing of post offices. In a statement, the union said postal workers “have taken an oath to protect the sanctity of the mail,” unlike poorly trained retail workers. The union wants the counters staffed by uniformed postal workers.

The financially struggling U.S. Postal Service has been working to form partnerships with private companies as it tries to cut costs and boost revenue.

  • The Associated Press

Amazon, HBO reach deal on streaming

NEW YORK - Fans of classic HBO shows such as The Sopranos and The Wire will soon have access to those series and more through Amazon Prime in the first online streaming deal signed by the cable network.

Starting May 21, Amazon Prime members - who pay $99 a year for streaming entertainment, two-day shipping and other perks - will also have access to Six Feet Under and Big Love, as well as early seasons of Boardwalk Empire and True Blood. Past seasons of newer shows such as Girls, The Newsroom and Veep will also become available throughout the multiyear deal, about three years after airing on HBO.

Original movies including Too Big to Fail and Game Change will also become available, as will original comedy specials from Lewis Black, Louis C.K., Ellen DeGeneres and Bill Maher.

There was no mention of Game of Thrones, one of the most pirated shows in history. Other shows such as Sex and the City and Entourage were also left out of the deal.

The exclusive HBO deal is considered a big win for Amazon, which is competing with Netflix and Hulu for streaming viewers as more people cut the cord on cable services.

  • The Associated Press

U.S. Ovation guitar production to end

HARTFORD, Conn. - An Ovation guitar factory in the western Connecticut hills that produced instruments for music legends Glen Campbell, Paul Simon and Cat Stevens will be closing in June after 47 years and production of the Ovation line in the United States will stop, the manufacturer’s parent company told the shop’s 46 workers this week.

One former factory worker called it “the end of an iconic American brand.”

Fender Musical Instruments Corp., based in Scottsdale, Ariz., and maker of the Stratocaster electric guitar, said in an announcement Tuesday that it was ceasing domestic production of Ovation guitars and closing the New Hartford factory, citing “current market conditions and insufficient volume levels.” The company also said it is consolidating production of U.S.-made acoustic instruments.

Ovations will continue to be manufactured outside the U.S., Fender spokesman Jason Farrell said Wednesday. He said Fender also builds Ovations in China, South Korea and Indonesia.

The factory also has been making Fender and Guild guitars since Fender bought Ovation’s owner, Bloomfield, Conn.-based Kaman Music Corp., in 2007.

  • The Associated Press

Business, Pages 26 on 04/24/2014

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