Financial Freedom. Best business news.

CKE Restaurants Inc., parent company of St. Louis-based Hardee's Food Systems Inc., posted positive same-store sales for the fourth period and the first quarter of fiscal 2009, although same-store sales at its Hardee's units declined.

CKE reported Wednesday that Hardee's same-store sales decreased 1 percent for the four-week period ended May 19, referred to as period four by the company. That compares to a 0.6 percent increase in sales during the same period in fiscal 2008. Hardee's first-quarter same-store sales for the 16-week period ended May 19 were down 0.6 percent, compared to an increase of 1.8 percent in the first quarter of fiscal 2008.

Same-store sales are a key measure of retail health that highlight the comparative performance of stores open at least one year.

Same-store sales at CKE's Carl's Jr. restaurants were up 4.2 percent during period four, compared to a decrease of 0.9 percent in the same period the prior year. In the recent quarter, Carl's Jr. saw its same-store sales climb 3.9 percent, compared to flat sales in the first quarter of fiscal 2008.

Blended same-store sales for Hardee's and Carl's Jr. restaurants were up 1.8 percent in both period four and the first quarter of fiscal 2009. CKE's blended same-store sales fell 0.1 percent in last year's period four and rose 0.9 percent for the prior year's first quarter.

For the 16-week first quarter of fiscal 2009, revenue from company-operated Hardee's restaurants was about $162.9 million, and revenue at company-operated Carl's Jr. locations was about $195.3 million in the same period. Both figures exclude franchise-related revenue and royalties.

St. Louis-based Hardee's Food Systems Inc. operates 1,926 restaurants. It is a division of Carpinteria, Calif.-based CKE Restaurants Inc. (NYSE: CKR), which also operates Carl's Jr. restaurants.

Sourse

Japan's factory production probably fell in April for a second month as the U.S. slowdown crimped world demand and higher energy costs cut into corporate profits. Inflation stayed near a decade high, economists said.

Output declined 0.5 percent from March, when it slid 3.4 percent, the biggest drop in five years, according to the median estimate of 35 economists surveyed by Bloomberg News. The Trade Ministry will release the report on May 30 at 8:50 a.m. in Tokyo.

Record oil and commodity prices are squeezing businesses and consumers in Asia, where demand has helped Japanese exporters withstand the U.S. slump. Higher costs and fewer sales may cause profits to fall this year for the first time since 2001, prompting companies to pare spending and restrain wages.

“The global economy is slowing but commodity prices are still going up. It's really damaging,'' said Hiroshi Shiraishi, an economist at Lehman Brothers in Tokyo. “Japan's biggest market is Asia. They're big importers of commodities, so they're getting hit just like Japan.''

Analysts will look for clues about Japan's economic outlook in companies' forecasts for production in May and June. The Trade Ministry asks manufacturers about their production plans in the two months ahead. Companies said last month they expect May output to rise 3.4 percent.

“I think the projection is over-optimistic because the global environment is getting worse and worse,'' said Masamichi Adachi, senior economist at JPMorgan Chase & Co. in Tokyo.

BOJ's Shirakawa

Bank of Japan Governor Masaaki Shirakawa said yesterday that the outlook for the world's second-largest economy is “extremely uncertain'' because costlier oil and raw materials could squeeze companies and consumers as well as fan inflation.

Consumer-price inflation probably eased from the steepest rate in 10 years as the temporary expiry of a gasoline tax provided relief to consumers facing rising prices of bread, milk and beer.

Core prices, which exclude fresh fruit, fish and vegetables, climbed 1 percent in April from a year earlier, according to the median estimate of 35 economists surveyed. Prices rose 1.2 percent in March, the fastest pace since 1998. The statistics bureau will release the figures on May 30 at 8:30 a.m. in Tokyo.

The expiration of the gasoline tax lowered the average price of the fuel nationwide by about 17 percent in April, according to the Bank of Japan. The levy was reinstated this month, bringing regular gasoline prices to a record 160.1 yen a liter ($5.84 a gallon).

Oil Prices

“The gasoline tax temporarily dragged down core prices, but the effect of recent oil gains will defiantly appear in consumer-price data from May,'' said Mamoru Yamazaki, chief Japan economist at RBS Securities in Tokyo.

Crude oil exceeded $135 a barrel for the first time last week. Japanese companies' pretax profits will fall 5 percent in the year ending March 2009, ending seven years of growth, according to the Shinko Research Institute.

Higher commodity costs aren't all bad news for Japan's exporters. They're increasing the wealth of emerging and resource-producing countries, spurring demand for Japanese goods in those markets, Governor Shirakawa said. Export growth accelerated last month as demand in emerging markets made up for a slump in shipments to the U.S., Japan's largest market.

“We're not looking for a collapse in exports. We're basically expecting them to be held up by commodity-exporting countries,'' said Lehman's Shiraishi. “The economy's path is dependant on this balance between commodity prices and global growth. That balance isn't going in a favorable direction.''

Sourse

Hoping to blunt the potential effects of inflation and a slowing economy, Six Flags America has cut the cost of getting into the park in half.

The buy one, get one free offer is available for online ticket purchases. Regular adult admission is $49.99. The park is also cutting $10 off the price of a kid’s ticket, to $24.99 online.

Six Flags America, in Bowie, joins other Six Flags locations that have lowered admission prices through various promotions. With the price of gasoline around $4 a gallon, the company is hoping to appeal to people who have decided to stay close to home this summer.

"While families across America are feeling a strain on their wallets, they still want to have fun and spend time together this summer," said Chris Haenn, Six Flags America park president.

Attendance at Six Flags parks rose 19 percent last quarter from year-ago levels to 1.4 million visitors. First-quarter revenue was up 35 percent to $68.2 million. The company had a first-quarter net loss of $150 million, compared with a net loss of $170 million in the same quarter a year ago.

Six Flags Inc. (NYSE: SIX), controlled by Washington Redskins owner Dan Snyder, operates 21 theme parks across the country.

Barton Eckert contributed to this report.

Sourse

Hoping to blunt the potential effects of inflation and a slowing economy, Six Flags America has cut the cost of getting into the park in half.

The buy one, get one free offer is available for online ticket purchases. Regular adult admission is $49.99. The park is also cutting $10 off the price of a kid’s ticket, to $24.99 online.

Six Flags America, in Bowie, joins other Six Flags locations that have lowered admission prices through various promotions. With the price of gasoline around $4 a gallon, the company is hoping to appeal to people who have decided to stay close to home this summer.

"While families across America are feeling a strain on their wallets, they still want to have fun and spend time together this summer," said Chris Haenn, Six Flags America park president.

Attendance at Six Flags parks rose 19 percent last quarter from year-ago levels to 1.4 million visitors. First-quarter revenue was up 35 percent to $68.2 million. The company had a first-quarter net loss of $150 million, compared with a net loss of $170 million in the same quarter a year ago.

Six Flags Inc. (NYSE: SIX), controlled by Washington Redskins owner Dan Snyder, operates 21 theme parks across the country.

Barton Eckert contributed to this report.

Sourse

Producer prices in Spain accelerated more than economists expected in April to the fastest pace in 13 years as higher oil increased cost pressures for manufacturers.

The price of goods leaving Spain's factories, farms and mines rose 7.2 percent from the year earlier period after a 6.9 percent increase in March, the National Statistics Institute in Madrid said in an e-mailed statement today. That exceeded the 6.9 percent median forecast in a Bloomberg survey of four economists. Prices rose 0.8 percent on the month.

The price of crude has more than doubled in the past year and touched a record $135.09 a barrel in New York last week. Surging energy prices helped push euro-region consumer-price inflation to 3.3 percent in April, exceeding the European Central Bank's 2 percent ceiling for a eighth straight month.

“Energy prices saw the biggest increase,'' Jose Luis Martinez, a strategist at Citigroup Inc. in Madrid, said. There is a sense of “pessimism in looking at the economic data out of Spain.''

The price of gasoline leaving refineries in Spain increased 29 percent on the year while food prices were up 11 percent.

Spain's consumer price inflation, measured according to EU standards, rose 4.2 percent on the year in April.

Sourse

U.S. Federal Reserve and government steps taken to calm financial markets and ease the housing crisis are working, according to a Treasury Department official.

“Markets appear to be gaining confidence and the availability of credit has improved modestly,'' Clay Lowery, the Treasury's assistant secretary for international affairs, said in the text of a speech today in Tokyo. The Fed's interest-rate cuts and a government economic stimulus package have helped to ease market turmoil and support consumer spending, he said.

U.S. stocks last week dropped the most since February, partly on concern the housing recession will deepen. A May 23 report showed the supply of unsold U.S. homes reached a record in April. Defaults on subprime mortgages have prompted lenders to restrict credit, while falling property values have given buyers reason to delay purchases.

“Markets have calmed down since March, and we are on a gradual mending process,'' said David Cohen, director of Asian economic forecasting at Action Economics in Singapore. “But neither Lowery nor Secretary Paulson can dismiss the possibility of some more bumps in the road.''

Treasury Secretary Henry Paulson said last week that conditions have improved to the extent that economic forces rather than credit concerns will influence financial markets. The collapse of the U.S. subprime loan market has prompted global financial institutions to report writedowns and credit losses exceeding $370 billion since the beginning of 2007.

Market Forces

Lowery said the government has “sought to avoid overreacting with regulations or policy responses that would stifle innovation or distort the natural self-correcting forces of markets.'' Paulson opposes congressional efforts to use government funds to bail out homeowners at risk of foreclosure.

Separately, Lowery urged Japan to open itself to more foreign direct investment. “There are concerns among investors that Japan may not be fully committed to attracting FDI,'' the Treasury official said.

A panel advising Japan's Cabinet Office last week recommended that the government allow more investment from abroad by cutting corporate taxes and encouraging companies to improve governance. Between 1997 and 2006, Japan ranked last among major economies as a destination for FDI, according to the Organization for Economic Cooperation and Development.

“Urging Japan to open itself up to more foreign investment is a standard plea from U.S. officials, and it will likely remain a slow process,'' said Cohen at Action Economics. Still, the panel's proposal “suggests they might be prepared to open up a bit.''

Sourse

Officials of BAE Systems Plc have told a U.S. court that a shareholder lawsuit charging illegal bribes were paid to win a Saudi arms deal worth up to $80 billion should be heard by a British court, not the U.S. court.

In court papers filed late on Friday, the BAE defendants urged a U.S. federal judge to quash a suit by a U.S. pension fund with shares in BAE, Britain’s top arms company. The suit charged they breached their fiduciary duties by allowing more than $2 billion in illegal bribes to Saudi Prince Bandar bin Sultan and others in the 1980s.

A lawyer for Bandar, a former Saudi ambassador to the United States who now heads Saudi Arabia’s national security council, could not be reached for comment.

BAE and Bandar have strongly denied that wrongful payments were made to help secure the arms deal known as al-Yamamah, or “the Dove,” in which Tornado fighter jets and other military hardware were sold to Saudi Arabia in the 1980s.

Britain’s Serious Fraud Office dropped an investigation into the matter in December 2006. Then-Prime Minister Tony Blair said the investigation would damage national security.

In April, a British court ruled in favor of anti-arms trade campaigners that the investigation into allegations of bribery in arms deals with Saudi Arabia was ended unlawfully. The issue is on appeal to the House of Lords, Britain’s highest court.

Lawyers for the defendants, including BAE’s chief executive Mike Turner and board chairman Richard Olver, argued in the U.S. District Court that the British court’s ruling showed there “are live issues in England … properly addressed under English law.”

The shareholder suit was brought in September 2007 by a pension fund for employees of Harper Woods, Michigan. Defendants include all BAE board members plus several of the company’s current and former top executives. 

Read more

The Dublin San Ramon Services District will measure and publicly report its greenhouse gas emissions in an effort to identify ways to diminish its carbon footprint, it said Thursday.

To help, the water-treatment plant has joined The Climate Registry, a Washington, D.C., nonprofit that provides an emissions accounting infrastructure for its members.

"We are constantly looking for ways to reduce our carbon footprint, and participating in The Climate Registry is another step forward that will help us leave our world in better shape for the next generation," stated district operations manager Dan Gallagher.

The District is also installing two fuel cells to generate cleaner electricity to power its wastewater and recycled water-treatment plants. The fuel cells will be powered by methane gas from digesters — microbes that break down solid wastes.

Other measures the District has taken include running water pumps mostly at night, when demand is less, said community affairs specialist Sue Stephenson.

"We’re doing this because it’s the right thing to do," Stephenson said. "The people of the world who care are trying to get a handle on what’s going on."

Sourse

American Airlines' parent company is plotting major cuts including job cuts and additional fees.

At its annual meeting Wednesday, Fort Worth-based AMR Corp. officials said that high fuel costs will bring additional fees — including a $15 charge for travelers' first checked bag — thousands of layoffs, and retirement of more than 75 aircraft from its American Airlines fleet.

The new baggage fee is effective for tickets purchased on or after June 15.

The airline giant expects to shave 11 percent to 12 percent of its domestic flights in the fourth quarter. This will result in the grounding by year's end of approximately 40 to 45 American Airlines jets, 35 to 40 American Eagle regional jets, plus some number of Eagle turbo-props, says Gerard Arpey, chairman and chief executive.

AMR (NYSE: AMR) had already planned to retire some of its MD-80s, which are less fuel-efficient than others in its fleet, and replacing them with 34 new 737 aircraft next year, and an additional 36 in 2010.

The tightened flight schedule will result in job cuts at American and its subsidiary, American Eagle. Arpey said layoffs would be across the board and could number in the thousands.

The company reported that fuel prices have increased more than 10 percent since its first-quarter results five weeks ago when it lost $328 million. The company's fuel expenses were up more than $660 million in the first quarter.

"If $125-per-barrel oil is the new reality, preserving the progress we have made is going to require some significant and difficult changes," Arpey says.

American Airlines serves both Oakland International Airport and San Francisco International Airport.

Sourse

The Home Depot Inc.'s profit sank 66 percent in the first quarter, as the home improvement retailer continued to battle the slumping housing market and weakening economy and also took a $543 million charge to close stores.

Atlanta-based Home Depot (NYSE: HD) had net income of $356 million and earnings of 21 cents a share, compared with net income of $1 billion and earnings of 53 cents a share in the first quarter of 2007.

Sales for the first quarter dropped 3.4 percent to $17.9 billion due to negative comparable store sales of 6.5 percent, offset in part by sales from new stores.

The results for the first quarter of 2008 also included a $543 million charge related to closing 15 stores , cutting 1,300 jobs and removing 50 stores from future growth plans.

The average customer ticket in the first quarter dropped 2.8 percent to $57.36.

"The housing and home improvement markets remained difficult in the first quarter; in fact, conditions worsened in many areas of the country," said Frank Blake, chairman and CEO. "… We will continue to invest wisely in our core retail business to earn our customers' confidence and ensure the long-term health of our business. In addition, our decision to close stores and remove planned stores from our pipeline demonstrates our commitment to disciplined capital allocation."

At the end of the first quarter, Home Depot had 2,258 retail stores.

Rival Lowe's Cos. reported Monday its first-quarter profit fell nearly 18 percent to $607 million, or 41 cents a share.

Sourse