TOPEKA, Kan. (AP) - Kansas legislators are planning to look into the health of the state fund paying benefits to unemployed workers.
The House Appropriations Committee was scheduled to take testimony Tuesday from state Labor Secretary Jim Garner.
The Department of Labor announced earlier this month that it might have to borrow money from the federal government to continue paying unemployment benefits.
The state's Unemployment Insurance Trust Fund started the year with a balance of $566 million and saw it slip below $350 million this month. Department of Labor officials worry the fund could run out of money by November.
An advisory council plans to meet Sept. 3 to discuss long-term plans for shoring up the fund, which could lead to higher unemployment taxes on businesses.
martes, 25 de agosto de 2009
Burger King 4Q profit rises despite sales drop
CHICAGO (AP) - Burger King Holdings Inc.'s fiscal fourth-quarter profit rose despite a drop in sales as costs fell in the United States, the company said Tuesday.
The nation's No. 2 hamburger chain earned $58.9 million, or 43 cents per share, in the three months that ended June 30. That compares with a profit of $50.6 million, or 37 cents per share, in the same period a year earlier.
The earnings beat Wall Street's estimate of 33 cents per share.
Revenue fell 2.4 percent to $629.9 million. Analysts had expected revenue of $632 million.
Same-store sales, or sales at locations open at least a year, slid 2.4 percent in the quarter.
The profit increase came even as sales at U.S. and Canadian restaurants open at least a year fell 4.5 percent, adjusted for currency fluctuations, because of the poor economy that's prompting more people to eat at home and promotions by competitors.
"Our financial fundamentals are solid and our cash flow continues to be strong," Chief Financial Officer Ben Wells said in a statement.
Miami-based Burger King said it added 115 net new restaurants during the period.
The company also said margins at its restaurants in the U.S. and Canada improved to 13.5 percent from 12.2 percent a year before.
For the year, Burger King's profit rose 6 percent to $200.1 million, or $1.46 per share, from $189.6 million, or $1.38 per share, in 2008. Adjusted 2009 profit of $1.48 per share beat analysts' forecast of $1.38 per share.
Annual revenue rose 3 percent to $2.54 billion from $2.45 billion, matching analyst estimates.
Burger King became a publicly traded company in 2006. The IPO, which at the time was one of the largest for the restaurant sector, raised nearly $400 million in net proceeds.
Since then, shares climbed to more than $30, up from the IPO price of $17, but then fell back to near their original offering price. Meanwhile, its No. 1 rival, McDonald's Corp., has seen its share price climb almost 62 percent in the same period while posting consistently strong results.
On Tuesday, Burger King shares climbed $1.67, or 9.5 percent, to $19.33 in morning trading.
The nation's No. 2 hamburger chain earned $58.9 million, or 43 cents per share, in the three months that ended June 30. That compares with a profit of $50.6 million, or 37 cents per share, in the same period a year earlier.
The earnings beat Wall Street's estimate of 33 cents per share.
Revenue fell 2.4 percent to $629.9 million. Analysts had expected revenue of $632 million.
Same-store sales, or sales at locations open at least a year, slid 2.4 percent in the quarter.
The profit increase came even as sales at U.S. and Canadian restaurants open at least a year fell 4.5 percent, adjusted for currency fluctuations, because of the poor economy that's prompting more people to eat at home and promotions by competitors.
"Our financial fundamentals are solid and our cash flow continues to be strong," Chief Financial Officer Ben Wells said in a statement.
Miami-based Burger King said it added 115 net new restaurants during the period.
The company also said margins at its restaurants in the U.S. and Canada improved to 13.5 percent from 12.2 percent a year before.
For the year, Burger King's profit rose 6 percent to $200.1 million, or $1.46 per share, from $189.6 million, or $1.38 per share, in 2008. Adjusted 2009 profit of $1.48 per share beat analysts' forecast of $1.38 per share.
Annual revenue rose 3 percent to $2.54 billion from $2.45 billion, matching analyst estimates.
Burger King became a publicly traded company in 2006. The IPO, which at the time was one of the largest for the restaurant sector, raised nearly $400 million in net proceeds.
Since then, shares climbed to more than $30, up from the IPO price of $17, but then fell back to near their original offering price. Meanwhile, its No. 1 rival, McDonald's Corp., has seen its share price climb almost 62 percent in the same period while posting consistently strong results.
On Tuesday, Burger King shares climbed $1.67, or 9.5 percent, to $19.33 in morning trading.
Pa. Senate panel OKs municipal pension reform plan
HARRISBURG, Pa. (AP) - A Senate panel has unanimously endorsed a bill to reform Pennsylvania's municipal pension laws and allow the state's largest city to increase taxes to help fix its ailing retirement system.
An amendment the Senate Finance Committee approved Monday night would overhaul the pension law, setting new financial standards for the thousands of municipal funds in the state and providing a combination of relief and regulatory intervention for those that run into trouble.
The amendment, which could go to the floor for a full Senate vote as early as Wednesday, also would allow Philadelphia to raise its sales tax to 8 percent from 7 percent for five years. The tax hike would raise an estimated $580 million that would be used to pay off pension contributions that the city has deferred.
The House has approved legislation that includes a different set of pension reforms as well as the Philadelphia tax authorization. Both chambers would have to approve identical legislation before any reforms could take effect.
Nutter, who has said the tax increase is necessary to avert the layoffs of thousands of Philadelphia city employees in a matter of weeks, attended Monday's committee meeting and was circumspect after the vote.
"This is one step closer" to passing the bill, Nutter said, noting that he had not reviewed the final version of the Senate amendment.
The worst-case scenario would be "an unending series of actions" by the two chambers, Nutter said.
Under the amendment, Philadelphia would have to freeze pension benefits for current employees and adopt revised benefits for new employees that cost no more than 75 percent of the existing plan.
Sen. Patrick Browne, the committee chairman and main sponsor of the amendment, said 40 percent of Philadelphia's payroll goes into pension contributions in contrast with 4 percent for state government.
"They're paying an enormous amount of the city resources to pay their pension costs, and we need to recognize that and do something about that," the Lehigh County Republican said.
The amendment also would allow the Pennsylvania Municipal Retirement System to take over municipal funds whose liabilities exceed their assets by more than 50 percent.
Pittsburgh is among the roughly three dozen municipalities in that category. The amendment also would dedicate 6.75 percent of the money Pittsburgh collects from parking to help pay the city's minimum pension obligation. It would allow the city to increase the tax if it sells or leases its parking garages.
The amendment also would bar elected officials from participating in plans that allow employees eligible to retire to pick a retirement date four years in the future, then amass pension payments at a 4.5 percent interest while continuing to work and collect their salaries.
An amendment the Senate Finance Committee approved Monday night would overhaul the pension law, setting new financial standards for the thousands of municipal funds in the state and providing a combination of relief and regulatory intervention for those that run into trouble.
The amendment, which could go to the floor for a full Senate vote as early as Wednesday, also would allow Philadelphia to raise its sales tax to 8 percent from 7 percent for five years. The tax hike would raise an estimated $580 million that would be used to pay off pension contributions that the city has deferred.
The House has approved legislation that includes a different set of pension reforms as well as the Philadelphia tax authorization. Both chambers would have to approve identical legislation before any reforms could take effect.
Nutter, who has said the tax increase is necessary to avert the layoffs of thousands of Philadelphia city employees in a matter of weeks, attended Monday's committee meeting and was circumspect after the vote.
"This is one step closer" to passing the bill, Nutter said, noting that he had not reviewed the final version of the Senate amendment.
The worst-case scenario would be "an unending series of actions" by the two chambers, Nutter said.
Under the amendment, Philadelphia would have to freeze pension benefits for current employees and adopt revised benefits for new employees that cost no more than 75 percent of the existing plan.
Sen. Patrick Browne, the committee chairman and main sponsor of the amendment, said 40 percent of Philadelphia's payroll goes into pension contributions in contrast with 4 percent for state government.
"They're paying an enormous amount of the city resources to pay their pension costs, and we need to recognize that and do something about that," the Lehigh County Republican said.
The amendment also would allow the Pennsylvania Municipal Retirement System to take over municipal funds whose liabilities exceed their assets by more than 50 percent.
Pittsburgh is among the roughly three dozen municipalities in that category. The amendment also would dedicate 6.75 percent of the money Pittsburgh collects from parking to help pay the city's minimum pension obligation. It would allow the city to increase the tax if it sells or leases its parking garages.
The amendment also would bar elected officials from participating in plans that allow employees eligible to retire to pick a retirement date four years in the future, then amass pension payments at a 4.5 percent interest while continuing to work and collect their salaries.
France seeks curbs on bankers' bonuses
French President Nicolas Sarkozy was meeting Tuesday with banking chiefs as he sought to curb the risk-taking bonus culture that fueled the global financial crisis.
The hot-button issue of bonuses, for years debated among French leftists, was rekindled three weeks ago by reports that BNP Paribas SA has set aside around euro1 billion ($1.43 billion) for bonuses in its investment banking division.
The government injected euro5.1 billion into France's largest bank to keep it lending during the crisis. French banks Societe Generale, Credit Agricole and the parent company of Natixis were also helped by the government's euro22 billion scheme.
French government spokesman Luc Chatel said Tuesday that banks "mustn't act as if nothing has happened," adding that the crisis has shown the banks must change the way they operate and become more transparent.
Sarkozy has argued since the crash for a stricter regulation of financial markets, and he wants world leaders to agree on global guidelines on bonuses at the G-20 summit of leading nations in Pittsburgh in September.
In an interview Tuesday with France-2 television, Chatel called on banks that received government help to grant loans to small businesses and individuals.
The debate echoes public outrage in the United States, where banks have been criticized for paying out big bonuses while accepting taxpayer money.
Citigroup, which is now one-third owned by the U.S. government as a result of the bailout, gave 738 of its employees bonuses of at least $1 million even after it lost $18.7 billion during the year.
In contrast, the outcry over 2009 bonus payments at BNP Paribas, which was profitable last year, came as it announced a net profit of euro1.6 billion ($2.3 billion) in the second quarter. The reported funds set aside for bonuses is about euro59,000 ($85,000) per employee, although payments will depend on the bank's performance over the rest of the year.
Jean-Claude Mailly, head of the Force Ouvriere workers union, called Tuesday for stricter rules over bonuses, according to the Le Figaro newspaper.
Meanwhile, Paris Europlace, an organization that promotes Paris as a financial center, sought to ensure France remains competitive.
"It is essential that the new measures which may be applied to French banks are also applicable simultaneously at the international level, otherwise Paris risks loosing competitiveness and seeing activities and jobs shift to competing financial centers," said Gerard Mestrallet, the GDF Suez CEO who is also president of Paris Europlace.
At the G-20 summit in April, world leaders agreed that banks should ensure that their "compensation structures are consistent with firms' long-term goals and prudent risk taking."
The hot-button issue of bonuses, for years debated among French leftists, was rekindled three weeks ago by reports that BNP Paribas SA has set aside around euro1 billion ($1.43 billion) for bonuses in its investment banking division.
The government injected euro5.1 billion into France's largest bank to keep it lending during the crisis. French banks Societe Generale, Credit Agricole and the parent company of Natixis were also helped by the government's euro22 billion scheme.
French government spokesman Luc Chatel said Tuesday that banks "mustn't act as if nothing has happened," adding that the crisis has shown the banks must change the way they operate and become more transparent.
Sarkozy has argued since the crash for a stricter regulation of financial markets, and he wants world leaders to agree on global guidelines on bonuses at the G-20 summit of leading nations in Pittsburgh in September.
In an interview Tuesday with France-2 television, Chatel called on banks that received government help to grant loans to small businesses and individuals.
The debate echoes public outrage in the United States, where banks have been criticized for paying out big bonuses while accepting taxpayer money.
Citigroup, which is now one-third owned by the U.S. government as a result of the bailout, gave 738 of its employees bonuses of at least $1 million even after it lost $18.7 billion during the year.
In contrast, the outcry over 2009 bonus payments at BNP Paribas, which was profitable last year, came as it announced a net profit of euro1.6 billion ($2.3 billion) in the second quarter. The reported funds set aside for bonuses is about euro59,000 ($85,000) per employee, although payments will depend on the bank's performance over the rest of the year.
Jean-Claude Mailly, head of the Force Ouvriere workers union, called Tuesday for stricter rules over bonuses, according to the Le Figaro newspaper.
Meanwhile, Paris Europlace, an organization that promotes Paris as a financial center, sought to ensure France remains competitive.
"It is essential that the new measures which may be applied to French banks are also applicable simultaneously at the international level, otherwise Paris risks loosing competitiveness and seeing activities and jobs shift to competing financial centers," said Gerard Mestrallet, the GDF Suez CEO who is also president of Paris Europlace.
At the G-20 summit in April, world leaders agreed that banks should ensure that their "compensation structures are consistent with firms' long-term goals and prudent risk taking."
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