Business news in brief

QUOTE OF THE DAY “I would like to get this settled and move on with selling beer.” Tom Schlafly, chairman of the Saint Louis Brewery Inc. board of directors Article, 1D

Proposal puts electronic logs in trucks

A proposed rule that would require interstate truck and bus drivers to equip their vehicles with electronic logging devices was published Thursday by the Federal Motor Carrier Safety Administration.

Electronic logging devices would replace paper logbooks as a means for drivers to record their time on the road. Proponents of the rule say electronic logs would more accurately measure a driver’s hours-of-service, eliminate paperwork required of businesses and ease record-keeping burdens on drivers. The rule is also expected to yield safety and efficiency improvements.

Data collected by the devices would remain in the possession of motor carriers and drivers and made available to law enforcement officers during roadside inspections, compliance reviews and investigations involving crashes. Motor carriers that encourage hours-of-service violations or ask fatigued drivers to operate a vehicle can be fined up to $11,000.

“Obviously the rule is lengthy, but looking at the high points the agency appears to have done a good job with issues that have been raised,” said Lane Kidd, managing director of the Trucking Alliance, a national safety organization. “Considering this is a congressional mandate, I hope Congress is firm in making sure this rule is quickly implemented.

“This is a great next step for safety.”

Members of the Trucking Alliance include Arkansas-based firms J.B. Hunt, Fikes Truck Line and Maverick Transportation.

Grants aim to inspire manufacturing jobs

To help return manufacturing jobs to the United States from overseas, Wal-Mart Stores Inc., the Wal-Mart Foundation and the U.S. Conference of Mayors released guidelines Thursday for distributing $10 million in grants to nonprofit organizations with innovative ideas for expanding manufacturing in America.

The Walmart U.S. Manufacturing Innovation Fund, announced at the mayors’ conference in Washington in January, is taking applications from eligible groups for grants of $100,000 or more.

A release from Wal-Mart said the first year of the initiative will focus on innovation in textile manufacturing and common manufacturing processes that apply to a broad range of consumer goods, including small-motor manufacturing and tooling for injection molding.

The innovation funding is part of Wal-Mart’s commitment to buy an additional $250 billion in American-made products in the next 10 years. The Boston Consulting Group estimates that the initiative will add 1 million jobs in the country. Applications are due April 22. More information can be found at usmanufacturingfund.com.

Thomason to lead Tyson’s Mexico unit

Rick Thomason, vice president of accounting for Tyson Foods Inc.’s international businesses, was named Thursday as president and general manager of Tyson de Mexico where he will oversee day-to-day operations.

Thomason has been with the Springdale-based company since 1991 and has held varying positions within financial and accounting departments.

Tyson de Mexico employs an estimated 5,400 workers and processes more than 2.7 million chickens per week at its three locations.

30-year mortgage increases to 4.37%

WASHINGTON - Average U.S. rates on fixed mortgages rose last week but remained close to historically low levels.

Mortgage buyer Freddie Mac said Thursday that the average rate for the 30-year loan increased to 4.37 percent from 4.28 percent last week. The average for the 15-year mortgage rose to 3.38 percent from 3.32 percent.

Mortgage rates have risen about a full percentage point since hitting record lows roughly a year ago.

Mortgage rates tend to follow the yield on the 10-year Treasury note. The 10-year note traded at 2.73 percent Wednesday, up from 2.71 percent a week earlier.

To calculate average mortgage rates, Freddie Mac, the Federal Home Loan Mortgage Corp., surveys lenders across the country between Monday and Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage declined to 0.6 point from 0.7 point last week. The fee for a 15-year loan was unchanged at 0.6 point.

Apollo said to study Dave & Buster’s bid

Apollo Global Management LLC, which acquired Chuck E. Cheese last month, is considering a bid for another chain that mixes food and entertainment, Dave & Buster’s Inc., two people with knowledge of the matter said.

Dave & Buster’s owner Oak Hill Capital Partners is seeking about $1 billion for the company, which posted sales of $608 million in its most recent fiscal year, said the people, who asked not to be identified because the information is private. Jefferies Group LLC and Goldman Sachs Group Inc. are running the auction, one person said.

For Apollo, the move would mean doubling down on the industry after its takeover of Chuck E. Cheese, a child-oriented purveyor of pizza, arcade entertainment and animatronic robots. The private-equity firm gained almost 600 restaurants and arcades when it acquired the chain’s owner, CEC Entertainment Inc., in a deal valued at $1.3 billion. Dave & Buster’s also runs a chain of entertainment complexes, though it caters more to adults - with a focus on billiards, sports and beer.

Raphael Gross, a spokesman for Dave & Buster’s at ICR Inc., declined to comment as did Charles Zehren, spokesman for Apollo at Rubenstein Associates.

Ireland GDP shrinks 2.3% in 4th quarter

Ireland’s output unexpectedly shrank in the fourth quarter, setting back Prime Minister Enda Kenny’s aim of reviving the economy.

Gross domestic product fell 2.3 percent from the previous three months, when it grew a revised 2.1 percent, the Central Statistics Office said in a report published Thursday in Dublin.

Economists had predicted a 1 percent expansion, according to the median of eight estimates in a Bloomberg News survey.

GDP shrank 0.7 percent in the fourth quarter from a year earlier, and the economy contracted 0.3 percent last year.

“Significant improvement will be required to meet the government’s target of growth of 2 percent this year,” said Ronan Dunphy, an analyst at Dublin-based fixed-income firm Glas Securities, who described the numbers as “disappointing.”

Ireland exited an international bailout plan in December, the first euro-area country to emerge from a rescue, burnishing the nation’s image as poster child for austerity.

  • Bloomberg News

Business, Pages 30 on 03/14/2014

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