The Jones Center is an energy cow eating up almost $570,000 in annual utility costs. The lights alone burn through $30,000 per month. But that’s about to change with help from the Walton Family Foundation as the center undergoes an energy makeover expected to shave $150,000 in annual utility costs.

Mike Gilbert, chief operating officer for the Jones Center, said working with Walmart and the Walton Family Foundations on this project has proved invaluable because Walmart understands the importance of efficient and sustainable operations.

“Our energy conservation measures are key to our sustainability as utilities are 50% of our operating budget,” Gilbert said.
 
Using a $3 million grant for the Walton Family Foundation initiated in November 2012, the Jones Center is in the midst of converting from a steam boiler system to a hot water boiler system for heating the 220,000 square foot building. Gilbert said steam is very expensive to produce and the center runs two large boilers which requires around the clock maintenance personnel. The conversion will trim an estimated 2,500 hours in personnel costs and include substantial utility savings as well.

He said the center is also implementing new building controls, which will allow them to more narrowly isolate lighting and utility costs according to use. 

“It’s like each room has its own air conditioner, we have a chill plant that circulates the cold water throughout the building. There are air handling units scattered throughout the building that generate and circulate cold air the duct system. Each room has a temperature sensor that re-tempers the air to that individual room. When the lights come on the system kicks in gear, so we are not heating and cooling areas that an in not use,” Gilbert said.


He said they are finalizing the building control design now and expect bids on power capacitors by Friday (Jan. 31) with a contract awarded the first week of February.

Gilbert said steam boiler conversion will take place over the summer so that the energy savings will be seen in the fall of this year.

“The long term effects of these savings will mean more services to the local community. For example, being able to offer $4 per-square-foot rent at the Center for NonProfits, or helping to keep our corporate lease and growing membership rates low and competitive in this market place,” said CEO Ed Clifford.

PAST SUCCESS
Gilbert said when the Center for NonProfits in Rogers was acquired by the Jones Trust in 2008, it was Walmart and the Walton Family Foundation who provided $2.5 million of the $3.56 million spent toward an energy makeover. The city of Rogers also provided $200,000 for energy conservation measures at the former St. Mary’s Hospital site.

Gilbert said the energy updates at the Center for Nonprofits were completed in 2009 and the building operates at the lowest cost per square foot of all the buildings in the Jones Trust, approximately 17% more efficient than the others.

In July 2013, Gilbert said they implemented energy improvements and building controls at the JTL Shops facility and the health education building of approximately $500,000, with an anticipated savings of $46,000 per year.

“Our work at the Center for Nonprofits was accomplished with Clear Energy of Fayetteville. Clear Energy was referred to us by Wal-Mart as they have done a great deal of energy work with Wal-Mart over the years,” Gilbert said.

Kevin Thornton, senior communications specialist for the Walton Family Foundation, said the Jones Center leadership brought them a solid plan to improve operational efficiencies to ensure longevity and the foundation felt compelled to help, as did the Endeavor Foundation and others.

“Our foundation mission is to help enhance the quality of life in the community. The Jones Center is an asset with a critical connection in this community,” Thornton said.

Little Rock-based Bank of the Ozarks announced Thursday that it has entered into a definitive agreement and plan of merger with Summit Bancorp, Inc. and its wholly-owned bank subsidiary Summit Bank.

Bank of the Ozarks will acquire the Arkadelphia-based bank for $216 million.

Summit Bank operates 23 banking offices and one loan production office in nine Arkansas counties. At December 31, 2013, Summit Bank had approximately $1.2 billion of total assets, $778 million of loans and $994 million of deposits.

The move will push Bank of the Ozarks to nearly $6 billion in total assets.

Summit Bank originated from a charter granted in 1996 to Horizon Bank of Columbia County, Ark. In February 2000, its name was changed to Summit Bank and expansion began throughout southwest and central Arkansas.

“I’m proud of the organization we’ve built over the past fourteen years at Summit Bank and equally proud to join forces with Bank of the Ozarks. We are very pleased to partner with one of the nation’s most respected banking organizations,” said Summit Bank Chairman and CEO Ross Whipple.

“Today, two premier Arkansas banking organizations, who share very similar philosophies and cultures, are joining to create an even more powerful banking franchise for our customers, employees and shareholders,” said George Gleason, Chairman and CEO of Bank of the Ozarks. “Bank of the Ozarks has built its Arkansas presence primarily in the northern and central parts of the state, while Summit Bank has built a strong presence primarily in southwest and central Arkansas. The synergies created by combining these two complementary, high performing community banks are significant.”

“Given the similarities in our cultures and business models, this combination should be very positive and a smooth transaction for our combined customers and employees. Our customers will undoubtedly benefit from our expanded offices and product offerings,” Gleason added.

DETAILS FOR SHAREHOLDERS
Both bank’s boards have approved the deal.

Under the terms of the agreement, each outstanding share of common stock of Summit will be converted, at the election of each Summit shareholder, into the right to receive shares of the Bank of the Ozark’s common stock, plus cash in lieu of any fractional share, or the right to receive cash, all subject to certain conditions and potential adjustments, provided that at least 80% of the merger consideration paid to Summit shareholders will consist of shares of the company’s common stock.

The number of company shares to be issued will be determined based on Summit shareholder elections and the company’s ten day average closing stock price as of the fifth business day prior to the closing date, ranging between $43.58 per share and $72.63 per share.

Upon the closing of the transaction, Summit will merge into Bank of the Ozarks. Completion of the transaction is subject to certain closing conditions, including customary regulatory approvals and the approval of the shareholders of Summit. The transaction is expected to close by the end of the second quarter of 2014.

Following closing of the transaction, Ross Whipple is expected to serve on the board of directors for Bank of the Ozarks bank and holding company.

Bank of the Ozarks said this is the company’s 11th acquisition since March 2010 and the largest in its history.

Bank of the Ozarks acquisition of Summit Bank adds another dimension to consolidations in Arkansas’ banking sector. Last year, Home Bancshares closed on a $286 million acquisition of Liberty Bancshares. Simmons First National Bank acquired Metropolitan National Bank for $53.6 million.

Bank of the Ozarks shares (NASDAQ: OZRK) were priced around $62.30 in late afternoon trading, up more than 7%. During the past 52 weeks, the share price has ranged from a $64.75 high to a $36.17 low.

Ben McLintock has joined Arvest Asset Management as the regional investment officer in the Springdale market in the branch at 3858 South Thompson Ave.

Arvest Bank in Springdale President Lisa Ray made the announcement on today, (Jan. 30).

McLintock most recently worked at Economic Opportunity Agency as director of development for the company’s EOA Children’s House division and in a private office as a law clerk.

His job duties with Arvest Asset Management include developing new and strengthening ongoing customer relationships and assisting customers with reaching their estate planning and investment goals.

“Ben brings a great deal of local knowledge and community connections to the Arvest team along with his specialized education and legal skills,” Ray said. “He is a great addition and we are excited to welcome him to Arvest.”

McLintock received his bachelor’s degree from San Francisco State University in 1999 and his Juris Doctor with an emphasis in tax, transactional and business law in 2013 from the University of Arkansas School of Law.

He is a licensed attorney in Arkansas and holds a Certified Fund Raising Executive credential in recognition of his heightened knowledge, understanding and execution of tax-exempt, tax deferred and tax deductible financial transactions.

McLintock is pursuing his Legum Magister in Taxation Law from the University of Alabama School of Law. He and wife, Kelly Kemp McLintock, have three children and live in Springdale.

With reappointments by Gov. Mike Beebe (D) of Chester Koprovic and Lee Webb, the Fort Smith region will continue to be home to two of the 16 members of the high-profile Arkansas Economic Development Commission.

Koprovic, who is the board chairman of Boyd Metals, B&C of Fort Smith and Kopco, was first appointed to the commission by Gov. Mike Huckabee (R) in 2001 following the death of Fort Smith businessman Tom Barr. When his fourth full term expires in January 2018, Koprovic will have served almost 17 years as a commissioner.

Boyd Metals is a metal service company with offices and operations in Arkansas, Missouri and Oklahoma. B&C and Kopco are metal fabrication and welding operations in Fort Smith. (Koprovic also has an ownership interest in The City Wire.)

FOCUS SHIFT
The focus of the commission and agency has shifted during his time.

“When I first when on, most of the emphasis was to create jobs, to bring in new jobs,” Koprovic said. “Now we work a  lot on retaining the jobs we have ... and trying to grow those companies.”

Koprovic said incentives offered by the AEDC have improved thanks to support from the Arkansas Legislature and leadership from Beebe’s office. He’s supported Beebe’s focus on connecting education and economic development, but said the state needs to do more with its education efforts.

“Coming out of high school, a high school graduate needs to be prepared to step into a job, and right now I don’t think they are prepared to step into a job,” Koprovic said.

Webb, a member of the Sebastian County Election Commission and co-owner of Economy Trailer in Fort Smith, was first appointed in 2010. This will be his second term on the commission. He said his first surprise as a commissioner was learning that the group “is actually a working commission and not just a ‘show up’ commission.” He also shared Koprovic’s assessment that the agency has been more focused in recent years on the retention and expansion of existing operations.

“Job retention has been a pretty big issue the last few years. I think we’ve been pretty successful with that, and we’ve also been successful in getting some other companies to move here,” Webb said.

‘LAST MINUTE’ FRUSTRATION'
He said a top frustration of serving on the commission is how tough it is to recruit new operations.

“I’m sure we have from 30 to 50 active files, with the staff working to get new jobs to Arkansas. ... I’ll tell you that a frustration for me is when Arkansas may have the best site and the best deal and the (AEDC) staff has really pulled together a great deal, but at the last minute some political thing comes in that we really had no control over,” Webb explained.

While he wouldn’t label it a frustration, Koprovic said he still hopes to see the state land an auto manufacturer.

“I would like to see Arkansas get an automobile plant. We’ve tried to get one almost the entire time I’ve been on the commission. We’re one of the few southern states to not have a plant like that,” Koprovic said, adding that he believes “there will be more auto plants built in America.”

DEVELOPMENT OPTIMISM
It may not be a large auto plant, but Webb is optimistic the agency will announce new jobs or job expansions in the next year. He said the effort by Wal-Mart Stores to return manufacturing to the U.S. has helped generate more prospects for new jobs and expansion in Arkansas.

“We want to create more jobs, and I think we are on the right track for that. They (AEDC staff) are working with a lot of projects right now. I think you’re going to see some good announcements come up in the next year. ... And you also have that initiative from Wal-Mart to bring those (manufacturing) jobs back and that is really helping a lot right now,” Webb said.

Koprovic said his time on the commission has provided him an education on economic activity in Arkansas.

“It’s been one of the most interesting things I’ve ever done. We go to different cities each month, and we get to meet people we’d never get to meet ... and see products we didn’t know were being made in the state,” Koprovic said.

Thoughts on the soon-to-be new top boss at Wal-Mart Stores, the political fight over the federal farm bill, Northwest Arkansas tax collections and Costco wages are part of the Northwest Arkansas Friday Wire for Jan. 31.

NOTES & ANALYSIS
• All eyes on Doug
When 47-year-old Doug McMillon becomes the new Wal-Mart Stores CEO on Feb. 1, he’ll sit in a chair responsible for more than 2.2 million employees and be expected to provide direction for a company under competitive attacks from all fronts and under a legal cloud related to allegations of corruption in foreign markets.

No pressure, right?

McMillon has been described as a “cool character” and a “very appealing leader.” He’ll need those qualities, and a truckload full of luck. To say Wal-Mart faces a unique set of challenges is to ignore the history of a global retail company that has emerged stronger and larger through a long list of challenges that the media often claimed were insurmountable.

What we don’t know about McMillon is if he has an eye for talent. Sam’s success was largely driven by putting the right people in the right place at the right time. That’s a part of the job often overlooked by the Wall Street wizards. It’s the challenge that remains no matter the changes in technology, politics, world markets and the fickle nature of consumers.

Good luck, Doug.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...
• Political fight to continue on ‘far from a perfect’ federal farm bill
Democrats and U.S. Sen. Mark Pryor, D-Ark., will do all they can to make political hay with U.S. Rep. Tom Cotton’s vote Wednesday (Jan. 29) against the federal farm bill. And while Cotton, a Republican from Dardanelle, was the only member of Arkansas’ U.S. House delegation to post a ‘No’ vote, and while the bill was supported by the politically powerful Arkansas Farm Bureau, the political lines of the farm legislation are not as clear or as straight as the rows of a freshly planted soybean field.

• Impressive job gains
Northwest Arkansas’ nonfarm job growth percentage ranked No. 11 in the nation last year out of 372 metro areas, according to figures posted Tuesday (Jan. 28) by the U.S. Bureau of Labor Statistics. The Jonesboro region wasn’t far behind with a rank of 14.

• The Supply Side: Hispanic market share
In the highly competitive retail climate suppliers and retailers that reach out to Latina shoppers stand to reap huge rewards among this growing demographic, according to Enedina Vega, publisher of Meredith Hispanic Media.

NUMBERS ON THE WIRE
• 7.4%: The Arkansas unemployment rate as of December 2013, the most recent month data was available. The rate is an increase from 7.1% in December 2012, making Arkansas only one of six states to post a year-over-year jobless rate increase.

• 5.6%: Collective increase in sales tax collections in Bentonville, Fayetteville, Rogers and Springdale in the January tax report from the respective cities.

• 133 million: Estimated population of Hispanics in the U.S. by 2050. The number will account for about 30% of the total U.S. population.

OUTSIDE THE WIRE
• The President and Costco
President Obama chose a Costco warehouse store in Maryland on Wednesday to push for a hike in the federal minimum wage, choosing Costco, the White House says, because it is "acting on its own to pay its workers a fair wage."

• Officials discuss Texas-Mexico high-speed rail line
A high-speed rail line connecting San Antonio and Monterrey, Mexico, could be less than a decade away from welcoming its first passengers, according to federal and Texas officials who met with Mexican officials in Washington, D.C., on Thursday to discuss the project.

• More on Hillary and 2016
Former U.S. Secretary of State Hillary Clinton remained vague on Monday about whether she would run for president in 2016 and said the militant attack in Benghazi, Libya, was the biggest regret of her four years as the top U.S. diplomat.

WORD ON THE WIRE
“All of our employment sectors are showing year-over-year growth. That kind of positive environment means that new and existing companies have enormous opportunities to thrive because of a strong regional customer base and increasing incomes.”
– Kathy Deck, director of the Center for Business and Economic Research in the Sam M. Walton College of Business at the University of Arkansas, about job growth in Northwest Arkansas during 2013

“I want to know how I get a Jones Center in my community.”
– Ben & Jerry's Chairman Jeff Furman said as he took the stage Tuesday (Jan. 28) as part of the Serve2perform.com speaker series, hosted at the Jones Center

“Wal-Mart and Sam’s Club are making substantial investments in their online operations and continue to hire people as they should. I wouldn’t be surprised if there is some downsizing of other departments as a result.”
– Ron Loveless, former Wal-Mart executive, about the potential for large job cuts at Wal-Mart corporate headquarters in Bentonville

Changes to the Whirlpool pollution plan, the success of Krutsch, the political fight over the federal farm bill, and State of the Union disappointment are part of the Jan. 31 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• Positive and perspective with jobs numbers
The Fort Smith region saw its non-farm job numbers rise from 116,900 in December 2012 to 120,300 in December 2013. That’s a 2.91% gain, and it was enough to see the region rank 34 out of 372 metro areas in terms of percentage growth. The region ranked 327 in 2012, so the move was significant.

Also, the Fort Smith metro jobless rate fell to 6.9% in November and brought to an end 55 consecutive months in which the regional jobless rate was at or above 7%.

And while we should celebrate such numbers, we should also be mindful of how much more improvement is needed just to get the region back to the economic normals of just a few years ago.

The size of the Fort Smith regional workforce during November was 132,163, down from the 132,867 during October, and below the 132,392 during November 2012. The labor force reached a revised high of 140,253 in October 2007. Having more than 8,000 out of the labor force count is not a good thing.

Also, the number of employed was 122,993 in November. And while that is an improvement compared to November 2012, it’s almost 10,000 fewer than the 132,779 employed in 2007.

Things are better in the region, but there is a lot of ground to be made up.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...
• Political fight to continue on ‘far from a perfect’ federal farm bill
Democrats and U.S. Sen. Mark Pryor, D-Ark., will do all they can to make political hay with U.S. Rep. Tom Cotton’s vote Wednesday (Jan. 29) against the federal farm bill. And while Cotton, a Republican from Dardanelle, was the only member of Arkansas’ U.S. House delegation to post a ‘No’ vote, and while the bill was supported by the politically powerful Arkansas Farm Bureau, the political lines of the farm legislation are not as clear or as straight as the rows of a freshly planted soybean field.

• Convention Center revenue rise
The Fort Smith Convention Center saw a drop in the number of events it hosted in 2013, but that did not stop the event center from having one of its best revenue years since opening.

• Ross and ‘raw politics’
A long pause ensued after Democratic gubernatorial candidate and former Arkansas Congressman Mike Ross was asked his thoughts about President Obama’s State of the Union address. Ross rolled a cough drop around in his mouth and stared ahead for a few seconds before replying: “I think that, you know, it needed more substance.”

NUMBERS ON THE WIRE
• $15.8 million: Full year 2013 net income for Fort Smith-based Arkansas Best Corp., a big improvement over the $7.7 million loss in 2012.

• 7.4%: The Arkansas unemployment rate as of December 2013, the most recent month data was available. The rate is an increase from 7.1% in December 2012, making Arkansas only one of six states to post a year-over-year jobless rate increase.

• 2016: The anticipated year chemical oxidation treatments will begin in and around the former Whirlpool facility in Fort Smith. The treatments are now mandated by the Arkansas Department of Environmental Quality to treatment a spill of toxic trichloroethylene (TCE), a cancer-causing chemical whose plume has migrated to a neighborhood north of the Whirlpool facility.

OUTSIDE THE WIRE
• The President and Costco
President Obama chose a Costco warehouse store in Maryland on Wednesday to push for a hike in the federal minimum wage, choosing Costco, the White House says, because it is "acting on its own to pay its workers a fair wage."

• Officials discuss Texas-Mexico high-speed rail line
A high-speed rail line connecting San Antonio and Monterrey, Mexico, could be less than a decade away from welcoming its first passengers, according to federal and Texas officials who met with Mexican officials in Washington, D.C., on Thursday to discuss the project.

• More on Hillary and 2016
Former U.S. Secretary of State Hillary Clinton remained vague on Monday about whether she would run for president in 2016 and said the militant attack in Benghazi, Libya, was the biggest regret of her four years as the top U.S. diplomat.

WORD ON THE WIRE
"She is the first to  send the success of anything we do to someone other than herself. She will tell you that any Chamber success is due to the volunteers and staff we have, but I will tell you that without her committed leadership it would not be the strong and vibrant organization that it is today."
– Janie Simmons, executive assistant at the Van Buren Chamber of Commerce, speaking about Jackie Krutsch, executive director of the Chamber

"A lot of this is in our alcohol sales. It took us a while to come up with the right procedures, the right equipment. We did have to make purchase of cash registers, a portable safe ... things of that nature. So we also had to get our procedures down. But you can see that we're picking up steam here."
– Executive Director Claude Legris of the Fort Smith Advertising and Promotion Commission discussing the rise in revenue at the Fort Smith Convention Center during a Jan. 28 Fort Smith Board of Directors study session

"Overall, I’m disappointed with the President’s State of the Union address because he was heavy on rhetoric, but light on specifics about how we can move our country forward. I’ve always said that I’ll work with the President when I think he’s right, but oppose him when I think he’s wrong. That’s why I’ve opposed his policies on gun control, the Keystone Pipeline, military action in Syria, regulatory overreach on our farms — to name a few — and why I’ll continue to oppose his agenda when it’s bad for Arkansas and our country.”
– U.S. Sen. Mark Pryor, D-Ark., in his response to President Barack Obama’s State of the Union address

Fiscal first quarter net income for Springdale-based Tyson Foods was $254 million, well ahead of the $173 million in the first quarter of 2013 and outpacing the consensus Wall Street estimate by $28 million.


Total revenue in the quarter was a record $8.761 billion, better than the $8.366 billion in the first quarter of 2013, the company announced in an earnings statement issued early Friday (Jan. 31).
 The per share earnings of 72 cents was much better than the consensus Wall Street estimate of 64 cents per share.


"I'm very pleased with our strong first quarter results, and I'm confident in my expectations for the full year," Donnie Smith, president and CEO of Tyson Foods, said in the earnings statement. "We're growing sales and earnings and executing our strategy - including making our third prepared foods acquisition in less than a year - while reinvesting in our existing businesses and buying back shares.”


Despite sales being higher in all four primary segments of the company, and sales volume up 4.1% in the beef segment and up 3.6% in the chicken segment, overall the company slightly missed top line revenue projections.


BIG CHICKEN

Chicken continues to be the protein of choice among more consumers helping Tyson Foods grow its sales and overall profits. Operating income for the chicken segment rose to $225 million, more than double the $111 million in the same quarter of fiscal year 2013.


The company’s chicken operating margin rose to 7.5%, returning to normalized ranges as lower grain costs helped Tyson save $170 million. Easing grain costs helped to offset some price volatility relating to excess supplies losses of some $28 million from Tyson’s international poultry operations.


China was the largest source of the negative international returns. There has been a change in the market dynamics in China over the past year, demand has not recovered there relating economic slowing and continued concerns of avian influenza.


“We have decided to slow our pace of expansion inside China for now to allow for demand to catch up with supplies,” Smith said. “We’ve taken our foot off of the gas in China, but we are still on the road.”

He said by the end of this year, the two plants in China will be running one shift with company controlled birds, but they will not be buying open market bird in the interim.
 Tyson said it is also handling shorter term challenges related to the "polar vortex" weather event and subsequent propane shortages.
 Smith said the company has made propane purchases from down in the Houston area and has transported that to growers that faced short supplies.

“I am not aware of any Tyson grower that is experiencing propane shortages for their houses. We will continue to work with our growers on pay issues related to these higher costs,” Smith said, during the call.


Tyson expects domestic chicken production to increase around 3% this fiscal year. The company said it expects to save $600 million on grain costs for feed ingredients, compared to last year’s spending. There will be some lag time in these savings being realized.


“We think chicken will be the winner going forward,” Smith said during the earnings call on Friday. “Chicken will see a halo effect because of the higher prices of beef.”


BETTER BEEF

Tyson’s beef segment continues to outperform the packer industry as a whole, reporting better-than-expected operating income of $58 million in the recent quarter, an improvement of $46 million reported a year ago.


Beef sales volumes rose thanks to better demand, despite higher sales prices. Tyson expects to see a reduction in fed cattle supplies between 2% to 3% from last year, but said it generally has adequate supplies in the regions where it operates. 


For the full year, Tyson expects to its operating margins challenged because of higher overall cattle costs. In the recent quarter Tyson beef operated with a 1.9% margin, well below the historical levels — 2.5% to 4.5%.


“Consumers will likely see higher beef prices and fewer grocer promotions this year,” said Jim Lochner, chief operating officer.


LEANER PORK
Tyson’s pork segment was a little leaner in the recent quarter generating $121 million in operating income, down from $125 million in the year-ago period.

Sales volumes in pork decreased as a result of balancing supply with customer demand and reduced exports. Pork sales totaled $1.424 billion, up 6.7% in price, but down 2.1% in total volume. Lochner said the metrics and margins in the pork business have recently improved. He expects industry hog supplies to decrease around 3% in fiscal 2014 compared to fiscal 2013, offset by increased average live weights.

For fiscal 2014, Lochner expects the pork segment will be in its normalized range of 6% to 8%.

Lochner said this will be his last earnings call as he will relocating back to Dakota Dunes, S.D., in anticipation of his retirement in September.

PREPARED FOODS
Tyson views its prepared foods segment as a growth vehicle and continues to invest and tweak these diverse operations to better serve changing consumer demands.

The prepared foods segment posted sales of $907 million, up 3.5% in volume and 4.2% in price, from a year ago.

Operating income fell to $16 million, as a result of $40 million in higher costs of raw materials and investments in the company’s lunch meat business and other growth platforms. Smith said the investments made in this segment, with three recent acquisitions will start to pay dividends toward the back half of this year. He said this category is one that will work to be nimble enough to give consumers the products they want.

He said the company will continue to look for other acquisitions that fit the company’s long term growth goals.

ROSY OUTLOOK
Company officials said they expect fiscal year 2014 revenue to reach $36 billion by “accelerating growth in domestic value-added chicken sales, prepared food sales and international chicken production.” Revenue in 2013 was $34.374 billion.

The rosy outlook provided by Tyson execs was welcome news to Wall Street investors looking for a safe haven play on Friday. Shares of Tyson Foods (NYSE:TSN) rallied more than 5% to $36.23 in heavy early trading, amid a broader market sell off with a 1.31% dip in the Dow Jones Industries and a 0.86% decline in the Nasdaq.

This uptick in Tyson shares set a new 52-week high, intraday. During the past 52 weeks the share price had ranged from a $35.74 high to a $21.79 low.

The earnings report to be issued on Doug McMillon’s 20th day on the job as the new Wal-Mart CEO may not be pretty.

Wal-Mart Stores Chief Financial Officer Charles Holley announced Friday that bad weather, a worse than expected hit from reduced food stamp payments and one-time charges related to international operations will reduce the earnings per share number by 26 cents – that’s almost triple the 10 cents per share negative impact announced Nov. 14.

A 26 cent per share hit is about $842.4 million. The company is set to release full year and fourth quarter earnings on Feb. 20. Doug McMillon, now the CEO of Walmart International, is set to succeed Mike Duke as Wal-Mart Stores CEO on Feb. 1.

The Bentonville-based global retailer said full year earnings per share is likely to hit at or below the previous guidance of $5.11 cents and $5.21. For the fiscal fourth quarter, the earnings per share will hit at or below the range of $1.60 to $1.70.

Also, the company said its comp store sales – a closely watched metric in the retail industry – for Walmart and Sam’s Club will be less than previously expected. Prior to Friday, the comp sales were expected to be flat for Walmart U.S. and between flat and 2% for Sam’s Club.

“Despite a holiday season that delivered positive comps, two factors contributed to lower comp sales performance for the 14-week period for Walmart U.S.,” Holley said in the statement. “First, the sales impact from the reduction in SNAP (the U.S. government Supplemental Nutrition Assistance Program) benefits that went into effect Nov. 1 is greater than we expected. And, second, eight named winter storms resulted in store closures that impacted traffic throughout the quarter.”

SNAP is roughly 10% of the total U.S. grocery business, but benefits go to one in seven Americans, or some 48 million consumers. All of them will see their monthly benefits reduced on Nov. 1. For example, a family of four has been getting $588 per month in SNAP benefits since 2009, but that will be reduced by $36, or 5% after Oct. 31. Arkansas will lose about $52 million in SNAP support from Nov. 1, through September 2014, according to the Center on Budget and Policy Priorities, Washington D.C., a nonpartisan research and policy institute.

Grocery is a $151 billion annual business at Wal-Mart driving 55% of the company’s total U.S. revenue last year. Wal-Mart controls about 25% of nation’s grocery marketshare, according to Michele Simon’s June 2012 report from Eat, Drink, Politics.

Jack Sinclair, executive vice president of grocery for Walmart U.S., said in October that Walmart has an 18% share of the SNAP payments, or about $13.2 billion a year.

The SNAP cuts are essentially a return to the payment formula prior to 2009. Congress approved in 2009 a $45.2 billion stimulus into the program as part of the American Recovery and Reinvestment Act, which bumped up SNAP benefits through October 2013. 

SNAP recipients have seen a 4% dip in their spending, according to shopper metrics, greater than 1% predicted impact.

"Wal-Mart caters to lower-income consumers which have been hit disproportionately hard relative to higher-income consumers," Morningstar analyst Ken Perkins told Reuters.

About 20% of the company's shoppers are food stamp users, analysts have estimated.

CNBC analyst Jim Cramer said Wal-Mart is also not default bell weather it once was, as more and more consumers are chasing lower prices anywhere they can find them — online with Amazon, dollar stores, etc.

Lowered earnings guidance from Wal-Mart coincided with a federal report showing declines in personal income and disposable income in 2013 compared to 2012.

According to Friday’s report by the U.S. Bureau of Economic Analysis, personal income was up by $2.3 billion in December, up less than 0.1%, and disposable personal income for the month was down less than 0.1%,

For the full year, the BEA reported that personal income was up 2.8% compared to a 4.2% gain in 2012. Disposable personal income fell 1.9% compared to a gain of 3.9% in 2012.

Wal-Mart shares (NYSE: WMT) were trading down slightly at $74.41 in the morning session.. During the past 52 weeks the share price has ranged from an $81.37 high to a $68.13 low.

In typical, non-ceremonial fashion Tyson Foods shareholders held their 51st annual meeting in Springdale on Friday morning (Jan.31). The investors had plenty to celebrate with a new record stock price, rallying more than 9.4% to $37.74 and twice the normal shares traded in the morning session.

That said, the entire event lasted just under 23 minutes, and it included the executives taking time to bid farewell to two of its senior leaders.

Chief Operating Officer Jim Lochner is relocating back to South Dakota prior to his retirement in September, and Buddy Wray, a former CEO and special assistant, is retiring a second time in February after coming back into the business in 2008. The retirements were announced in November, but this is the last shareholder meeting they plan to attend as company execs.

Tyson Chairman John Tyson thanked Lochner for his leadership and service throughout the years crediting him as one of the “best” in the industry who learned through experience. He referred to Lochner as a “master professor” saying that he it doesn’t matter what you know if you can’t teach it to others. CEO Donnie Smith also thanked Lochner for the way he has prepared the company’s future leadership and credited him with much of the financial success the company has seen in recent years.

Lochner will continue serve the company in a consultant role through 2017. John Tyson noted this will allow more time for Lochner’s big game hunting out West.

Tyson said Buddy Wray helped raise him, and his expertise has proved invaluable for 50 years, including designing the company’s iconic logo. Wray retired from as president in 2000, but was called back into business by his long-time friend and company pioneer Don Tyson in 2008.

“He has been a trusted advisor to me during a phenomenal period in our company's history," Smith said. "His wisdom and guidance helped us deliver outstanding results and his nearly six decades of experience have been a wonderful gift."

Smith told shareholders that 2014 is off to a great start as the stock set another record high in active trading on the heels of a stellar first quarter performance.

“If you’ve checked your phone in the past few minutes like I have, you can see the share price continues to rally,” he said.

Smith assured shareholders the game always has its challenges, but he’s confident that he has the right people on his team, making the right plays to ensure Tyson Foods wins.

BUSINESS MEETING
Tyson shareholders (95.23%) approved the following directors for a one-year term:
• John Tyson, 60, chairman of the board
• Kathleen M. Bader, 63 president and CEO of NatureWorks LLC
• Gaurdie E. Banister Jr., 56, CEO of Aera Energy
• Jim Kever, 61, founding partner of Voyent Partners

• Kevin M. McNamara, 57, founding principal of McNamara Family Ventures
• Brad T. Sauer, 54, EVP at 3M Industrial Business Group
• Robert Thurber, 66, retired exec from Sysco
• Barbara A. Tyson, 64, former company consultant and VP
• Albert C. Zapanta, 72, CEO of the U.S. Mexico Chamber of Commerce

Tyson shareholders (99.74%) approved the ratification of PricewaterhouseCoopers LLP to serve as the company's independent registered public accounting firm for the fiscal year ending Sept. 27.

Sam’s Club confirmed last week it was restructuring its in-club operations, trimming 2,300 middle management and hourly job across its U.S. operations.

Wal-Mart Stores Inc. said today (Jan. 31) the costs associated with the Sam’s Club restructure will shave about 1 cent per share from corporate earnings reported Feb. 20. In addition, Sam’s said it will shutter its Mas Club located in Houston on Feb. 7. Mas Club opened as a pilot in 2009 to cater to the merchandising needs of the Hispanic community.

“Since opening Mas Club, we’ve gained insights on the best ways to serve the Hispanic community and have implemented what we’ve learned in our 18 locations in the Houston area and more than 100 other Sam’s Club locations in areas with a predominately Hispanic population throughout the U.S.,” said Carrie Foster, Sam’s Club spokeswoman.

She said all Mas Club members will receive a complimentary membership at Sam’s Club valid for 12 months beyond the expiration of their Mas Club card, while Mas Club members who are already Sam’s Club members will receive a $30 gift card or a full membership refund, whichever they chose.

Retail experts recently interviewed by The City WIre indicated that Sam's Club needed to purge some of the operational bloat that was created during more profitable times.

Sam's Club execs have consistently reported that many of it members – small businesses – continue to struggle, which has compromised comparable sales growth for several quarters. The holiday was apparently no better as Wal-Mart gave lower guidance for itself and Sam's Club today (Jan. 31) partly related to weather.

Analysts continue to point to Costco's ability to outperform other big box retailers and note that they all face similar consumer headwinds on a regular basis.

Carol Spieckerman, CEO of New Market Builders, said Costco has evolved as a brand under the longtime leadership of founder Jim Sinegal who has built a loyal customer base. At the same time, she said Sam's Club is s store.

That said, Spieckerman applauded the recent alliance between Sam's Club and the Walmart.com leadership saying this can give them a competitive advantage over Costco which is still mostly a brick and mortar retailer. She said if Sam's Club can figure out a way to leverage Wal-Mart's physical scale with its online service the possibilities are huge.

"Imagine ordering a bundle of products online at Sam's Club but being able to pick it up at local Walmart Neighborhood Market," Spieckerman said.

Sam's Club operates about 600 clubs, a fraction compared to the more than 4,000 Wal-Mart locations across the U.S.

Not that Tyson Foods needs the help, but the meat giant could see some benefit from the packing plant closure announced by National Beef on Friday, (Jan. 31).

The Kansas City-based National Beef said it will shutter production in its Brawley, Calif., beef plant on April 4, because of declining supply of fed cattle in the region.

Cattle supplies across the country continue to shrink from prolonged periods of drought that forced excess slaughter resulting in the smallest herd in more than 40 years.

The Brawley plant employs 1,300 workers, who will be offered assistance finding work in other National Beef facilities, all of which are located in the Midwest region, with the exceptions of one plant in Georgia and one in Pennsylvania.

“This was a very difficult decision for us to make because of the impact on our employees and suppliers,” CEO Tim Klein said. “We are optimistic about the long-term prospects for U.S. beef demand, and we will continue to focus on expanding our position as the industry leader in value-added beef products.”

Tyson Foods operates one beef plant in Pasco, Wash., that could benefit after the Brawley plant closes, according to Steve Kay, publisher of Cattle Buyers Weekly.

He said Tyson has the oldest brand recognition in the region and should be in position to pick up some market share in the Southern California market.

Tyson’s Pasco plant has been operating a four-day week since late last year because of the Country of Origin Labeling rule changes which curtailed the company’s sourcing live cattle from Canada.

Jim Lochner, chief operating officer for Tyson Foods, said Friday (Jan. 31) that Tyson is not having a great deal of trouble sourcing live cattle near its packing facilities, all of which are located throughout the Midwest except Pacso, Wash.

The Brawley closure follows on last year’s closure of Cargill’s Plainview, Texas, plant, which employed 2,000 people; San Angelo Packing’s San Angelo, Texas, beef plant; and Martin’s Abattoir and Wholesale Meats’ Godwin, N.C., beef plant.

America's Car-Mart announced the opening of its 130th dealership on Friday, (Jan. 31).

The dealership is located in Altus, Okla., and will be managed by Jonathan Bottoms.

The Atlus location marks the company’s 23rd dealership in Oklahoma and the sixth new lot opening for fiscal year 2014. 

Car-Mart shares (NASDAQ:CRMT) closed Friday at 38.55, down 63 cents on the day.

For the past 52 weeks the share price has ranged from a $38.38 low to a $50.59 high.

Arvest Bank announced Christy Queary was promoted to vice president / consumer loan manager for the Springdale market. She will report to Kent Williamson, executive vice president / loan department manager.


Queary has worked for Arvest Bank since April 2000; she has been the manager of loan assistants since 2008. She is replacing Janet Erwin, who has been promoted to the position of centralized underwriting manager for the Northwest Arkansas region.

 “What has impressed me most about Christy over her 14 years is her outstanding leadership and tremendous customer service skills. She has become a real ‘go to’ person for our lenders,” said Williamson. “Christy will continue to manage the loan assistants while she takes on this new role.”

Queary graduated from Springdale High School in 1991 and Northwest Technical Institute in 1995. She has four sons, ages 22, 19, 18 and 5; and two grandchildren, ages 3 and 3 months. She lives in Lowell.

Lowell-based J.B. Hunt Transport Services Inc. is raising its dividend for shareholders by 33% to 20 cents per share.

The increased dividend payment will be made Feb. 27 to shareholders of record as of Feb. 13. The previous dividend was 15 cents.

The board “concluded the consistent earnings and cash-flow growth generated in recent years warranted a higher dividend,” according to the release. “This larger-than-historical increase represents a commitment to returning capital to shareholders on a consistent basis at a more reasonable yield relative to JBHT’s share price.”

In 2013, the company improved net income 10% to $342.4 million, which was the third highest in the industry after UPS Inc. and FedEx Corp.

Shares of J.B.Hunt (NASDAQ: JBHT) traded down 1.65% on Monday morning (Feb. 3) at $73.81. For the past 52 weeks the share price has ranged from a $79.89 high to a $65.53 low.

Johnelle Hunt, co-founder of the company is the largest individual shareholder controlling more than 18.452 million shares registered to J.B. Hunt LLC as of Nov. 5.

Computers and the internet are not just for buying items from Amazon or Overstock.com. Starting in March, utility companies connected to the Integrated Marketplace will be able to buy and sell electricity electronically, simplifying a system that has been around for many years.

According to Keith Sugg, director of market implementation at the Arkansas Electric Cooperative Corporation, the ability to buy and sell electricity allows regional utilities to be able to meet demand at all times as part of the new smart grid technology that has been rolling out to various utilities in various forms.

Sugg said while power utilities have traditionally operated their own power plans, supplying the desired level of load needed to supply power to customers, the growing interconnectedness of power utilities have allowed the traditional business model to change over time, with various utilities being connected on the grid, able to negotiate over the phone several buys and sells each day between companies so one utility can unload excess supply while another is able to fulfill its needs.

"You commit these units, bring them online and have them running," he said. "And then you've got another utility that's a neighbor. Maybe one of the utilities is Oklahoma. The next one (could be) in Kansas. You maybe have two utilities in Arkansas. But each of these guys are doing their own thing. What we're moving to is a regional market that handles that."

The regional market will be a computerized system known as a real-time balancing market (RTBM) that sets pricing, monitors supply levels and draws any excess inventory automatically from a utility, attempting settlements every five minutes according to Southwest Power Pool in Little Rock.

Not only will SWPP be managing the RTBM, but the organization will also be helping member utilities plan output through its Integrated Marketplace.

"The Integrated Marketplace will determine which generating units should run the next day for maximum cost-effectiveness, provide participants with greater access to reserve electricity, improve regional balancing of supply and demand, and facilitate the integration of renewable resources," the organization said on its website.

Currently, the marketplace is in a testing phase with a go-live date scheduled for March 1. A component of the marketplace, the Transmission Congestion Rights (TCR) Market, went live Oct. 18, 2013, according to a press release.

The TCR Market, according to the release, allows utilities to "hedge" against the market.

"The TCE Market is integral to the Day Ahead Market, which will ensure the next-day's generation within SPP's footprint will be used economically and efficiently," the release said. "TCRs are used as a financial hedge against congestion, allowing market participants to reduce their potential exposure to market-price fluctuations."

The release goes on to say that the TCR Market went live last year "so that participants can hold TCRs before congestion costs are incurred."

Sugg said AECC was unique among Arkansas utilities, as it is a member of not only SWPP's marketplace, but also the Midcontinent Independent System Operator (MISO), a regional transmission organization for which AECC was integrated in December 2012.

He said in the long term, being a member of both markets would be a benefit not just for the AECC, but also for its owners — all cooperative users across the state.

"If you can centralize that process (of buying and selling excess electricity) in one entity that has a much larger (footprint), then you can save significant dollars. So this centralized market is a way to achieve that and it does it through economics."

Retailers often mention weather as a reason for lackluster sales. It was too warm during the holiday season of 2012 which weighed down sales of winter coats, sweaters and other warm apparel.

But the holiday season of 2013 and the blustery "Polar Vortex" is far worse, at times crippling air travel to the tune of $1.7 billion in January, with an early economic cost estimate of $5 billion, according to Planalytics, a weather intelligence company based in Philadelphia.

Retailers from Amazon to Wal-Mart have said extreme winter weather is partly responsible for weaker earnings through the holiday season and month of January. And with three winter storms expected the first week of February there doesn’t seem to be any relief in sight.


“Middle income consumers are facing higher heating costs just to stay warm at home, which is bound to mean there is less money for discretionary spending. Their food spending is even compromised. They have been conditioned to shop with coupons, seeking bargains and that behavior is not likely to change, even if the economy does improve,” said Rich Yamarone, chief economist with Bloomberg Brief.

Marc Henning of Bella Vista, said his electric bill was $340 this month. Up just shy of $100 from last month.

“Our bill usually runs in the $140 range most the year. We're going to have to adjust our budget or to compensate for this recent bill,” he said.

Jami Dennis, of Powell, Mo., said she has shopped less frequently because of the inclement weather. That said, when Dennis does shop, she tends to stock up for longer periods of time.

“I have spent a little more online to ward off cabin fever, but with propane prices rising above $4 per gallon this past week I will need to tighten other spending to ensure I can stay warm until spring arrives,” Dennis said.

While consumers have spent more time inside this year, it’s understandable that store traffic would also have been lighter, Yamarone said. But a there’s another problem also impacting retail sales and that’s competitive pressure eroding operating margins. He said when retailers are sitting on unsold inventory they are forced to reduce prices to try and lure people into their stores, and lower prices mean tighter margins with less room to absorb the shocks being seen this winter.

“Middle class and lower income consumers are having a tough time, paying higher taxes this year and Mother Nature isn’t doing anyone any favors. Budgets are tighter and there is less fuel in the tank to move this economy forward,” Yarmarone said.

Jack Kleinhenz, chief economist for the National Retail Federation, said it’s tough to quantify the direct impact to the retail sector from the eight named winter storms already in the books, when there’s still six more weeks of winter expected for much of the country. He said it’s important to remember that this winter weather is transitory in nature and it will eventually pass. Kleinhenz expects some retailers will make up some of the losses when spring does arrive.

In the meantime, the demand for electric blankets, heaters, boots and ice melt are up year-over-year, according to Planalytics.

On another positive note, Kleinhenz said some of the ski areas are having great seasons, after suffering heavy losses the past two years.

Plans to drastically alter the appearance and business model of the Fianna Hills Country Club are continuing to move forward, with plans for a $20 million investment in the property.

Lancy Beaty, a partner with Dr. Stephen Nelson in Fort Smith-based FSM Redevelopment Partners, said one of the biggest hurdles in moving forward with the project so far as been finding a way to zone the revamped country club, which is zoned by the city of Fort Smith as R-2SF, or a residential zoning that permits country clubs.

"Under that definition, a country club is permitted, but it's a conditional use," Beaty said. "There's an existing conditional use as an existing country club, but if you combine the attributes that we are combing there — including the guest suites — there's no definition in the zoning code that defines that particular group of attributes together."

As a result, Beaty is working with the city on the creation of a planned zoning district (PZD) for the country club, which he described as "hybrid zones." It’s only the third time the city has worked with a developer through a PZD process.

The new zone would allow FSM Redevelopment Partners to continue with plans to build an expanded Fianna Hills Country Club on the property's existing footprint while adding features including guest suites, which Beaty said would only be available to members and their guests, not to the general public. The policy will keep the facility from being a bustling hotel open to the general public, and instead will continue serving the needs of club members through the expanded amenities.

NEW LOOK, NEW SERVICES
The overall look of the structure will change with the planned expansion of the facility, Beaty said, with the facility having a "modern rustic" look, which would appear to mimic a lodge. Renovation will including stripping the facility down to steel and concrete and then rebuilding.

The addition of guest suites and a change in appearance are not only meant to modernize the club, it is meant to revolutionize its business model as it expands offerings beyond a golf-focused venue.

Among the offerings at the facility will be an updated menu at the club's restaurant, the addition of an airport concierge service as well as the addition of concierge medical offerings for those who choose that level of membership.

"We have the airport concierge service. Those folks that travel a lot are able to just come to the club and they can leave their car there and we'll be able to carry them to the airport and pick them back up," he said. "That's in our elite membership package, along with the concierge medical that's in the elite package. …It's more wellness management. You know, the ability to have somebody that knows you and can address your concerns with medications or prescription refills."

Beaty is quick to note that the club will not host a full acute care clinic, but he said prescriptions can be delivered to an individual's home while other medical-related issues can be addressed quickly for elite members, a group that will be limited to only 100 individuals.

DIFFERENT FEE STRUCTURE
The changes Beaty and his partners have detailed for current members of Fianna Hills Country Club will result in a more expensive club membership, but he was quick to mention the changes members will get.

"It's more expensive in that it's structured differently. In most clubs, there's that fee-base (for membership), and that's what you pay plus any ancillary costs plus food and beverage. You know, you pay your membership — you know, your key to the door — then whatever you consume."

In the case of the revamped Fianna Hills Country Club, Beaty said there would be "a capital piece that is $30,000 and that capital piece is paid up front. You can write a check for it, or we made arrangements for people to finance that capital piece over various terms, whatever fits their budget."

"So they pay the capital piece to the financial institution and they pay the maintenance fee to us, which will be kind of like your monthly dues. So long story short, if you take that scenario and you blend it through their current costs now versus the new costs, it will cost them about $125 more a month if they financed the $30,000 piece."

The difference? A brand new country club, a vastly improved golf course managed by Scottsdale, Ariz.-based Troon Golf — a world-renowned golf course management company operating golf courses in 32 states and 27 countries — and amenities that set the revamped Fianna Hills Country Club apart from anything offered in the region.

COMMUNITY COMMITMENT
For FSM Redevelopment Partners to feel comfortable moving forward on expanding the facility from 27,000 square feet to its planned 85,000 square feet, Beaty said his would need the commitment of about 500 individuals. Those individuals would place $1,000 deposits on the project, with the deposit sitting in escrow until the company closes its planned purchase of the facility following approval by the city of Fort Smith's planning commission and Board of Directors. The committed members would only pay up once the building is complete and there is a certificate of occupancy hanging in the building. It is a deal that Beaty has assured current and prospective members included no risk to them.

"People are committing that if we build it they're in," he said. "And we're committing that if you're in, we'll build it. It's a reciprocal commitment and we don't get anything until it's a done deal."

While Beaty said about 500 commitments are needed for his company to move forward with the project, he said membership would be limited so that the club’s overall customer base is no more than 2,500 people.

In a statement FSM Redevelopment Partners sent to the media on Monday (Feb. 3), Beaty commented on community reaction to the planned changes at Fianna Hills Country Club: “The proposed changes to the club were met with mixed reactions from the Legacy Members, and there was a bit of sticker shock with the capital investment required. However, I was very pleased with the number of membership reservations that were received and those funds have been placed in escrow at Guaranty Abstract and Title Company in Fort Smith pending the completion the project. We’ve received a positive reaction to our redevelopment plan, especially among area corporations and companies who see the benefit of our innovative approach toward a country club.”

The PZD consideration for Fianna Hills Country Club is scheduled for a hearing before the Fort Smith planning commission in March, with a hearing and vote before the Fort Smith Board of Directors at a later date.

Wal-Mart has plenty of fans and critics when it comes to the retailer’s sustainability initiatives. When former CEO Lee Scott boldly announced the retailer’s sustainability platform eight years ago, there were doubters that Wal-Mart would stay the course.

While the journey to a Green Wal-Mart is a long one, there is some progress being made. In fiscal 2013, the retailer said its bottom line benefited $150 million from sustainability initiatives, such as solar and wind energy projects, fuel cell installations and its zero waste program. This was on top of $231 million it saved in 2012 from waste reduction and recycling.

Katie Ware, spokeswoman for the Environmental Defense Fund’s corporate partnership program, said there is a direct correlation between sustainable spending projects helping to boost bottom lines profits over time.

“We have had a partnership with Wal-Mart for the past seven years, and have worked directly with the retailer on multiple projects: developing the sustainability index that it now uses with its suppliers; reducing harmful chemicals in products sold; and optimizing fertilizer use among the agricultural farms that supply produce and other food items,” Ware said in a phone interview.

Wal-Mart is an active member of the Green Power Partnership with with the Environmental Protection Agency. Each year the EPA ranks its Green Power partners on sustainability impact — reducing electricity usage, while also developing new renewable energy capacity generation.

Among Fortune 500 company’s Wal-Mart ranks No. 5 in terms of renewable energy used, according the list released last month. No. 1 Intel Corp. used 3.1 billion kilowatt hours, 100% of its total electricity usage. No. 2 Microsoft used 1.935 billion kilowatt hours, 80% of its total electricity usage. No. 3 Kohl’s Department Store used 1.536 billion kilowatt hours, 105% of its total electricity usage. No. 4 Whole Foods used 800.2 million kilowatt hours, 107% of its total electricity usage.

No. 5 Wal-Mart Stores used 751.4 million kilowatt hours, 4% of its total  electricity usage.

Stacy Mitchell, environmental expert with the Institute for Local Self-Reliance, said there is one glaring difference between the other top four companies and Wal-Mart.

“Just 4% of Wal-Mart’s energy used is renewable. They are quite willing to purchase renewable energy in markets where other electricity rates are already high, but don’t want to discuss core aspects of their business model that are far from efficient, such as their sprawl, land use and construction design,” Mitchell said in a phone interview.

She said another way to evaluate Wal-Mart’s professed leadership on climate is to look at its greenhouse gas emissions intensity — the volume of pollution it produces per $1 million in sales. Wal-Mart’s emissions intensity – 45 metric tons of CO2e per $1 million in sales – is higher than that of competing chains, including Costco (16 metric tons) and Target (42 metric tons), according to the Mitchell.

Costco’s emissions intensity is only about one-third of Wal-Mart’s, in part because Costco’s high-wage workforce generates more sales per square foot and therefore uses less energy to produce the same revenue.

Mitchell said Wal-Mart has received loads of media attention for sustainability efforts when it’s the suppliers doing most of the heavy lifting. But not everyone sees it that way.

EXPONENTIAL EFFECT
Ware said one of the reasons EDF has made it a point to work with Wal-Mart on sustainability goals is because of the exponential effect which can be realized with the the Wal-Mart lever is applied.

“They are huge in terms of scale and when their suppliers – 100,000 strong – all get onboard on issues like reducing harmful chemicals throughout the supply chain, that can be a game changer,” Ware said.

Last fall Wal-Mart announced a new policy on sustainable chemistry in consumables. This was sorely needed across the industry given that some 40% of the products tested by the EDF were found to contain chemical of “concern,” Ware said.

Beginning in January 2015, Wal-Mart will require suppliers to provide online public ingredient disclosure for consumable products sold at Wal-Mart. Consumable products include commonly used items like baby lotion, cosmetics, shampoo, spray cleaners and air fresheners.

The retailer also prioritized a list of 10 chemical ingredients as its initial list of high priority chemicals that are targeted for continuous reduction, restriction, and elimination, using informed substitution principles. Wal-Mart said it would regularly review if additional chemicals should be prioritized. Also, Wal-Mart will begin to label its private brand cleaning products according to EPA safer product labeling program.

Ware said harnessing the massive scale of Wal-Mart's business to move hazardous chemicals out of the supply chain and off store shelves will have ripple effects across the entire industry.

No one argues that consumers today demand safer products and they are reading the labels. EDF said it pushed hard for this policy, which sets a new standard for the retail industry and sends a strong signal to suppliers that it’s time to get serious about phasing out hazardous chemicals in products. Wal-Mart’s largest supplier, Proctor & Gamble, was already onboard making a similar announcement the prior week before the retail giant.


Another area where EDF believes Wal-Mart can move the needle is working with suppliers to reduce nitrogen based fertilizers, which is responsible for nearly half of Wal-Mart’s carbon footprint in its supply chain.



Ware said the EDF has spent several years working with farmers to optimize fertilizer use on farms. Wal-Mart recently announced commitments from 15 suppliers to encourage better fertilizer use in their supply chain. These changes will touch more than 30% of the food and sales in the North America.

“That’s huge,” Ware said.

EDF estimated this agricultural initiative would save seven million metric tons of greenhouse gases, in addition to protecting water and soil quality.

The World Health Organization and Chinese authorities are investigating how three members of one family contracted the H7N9 avian influenza virus. 

There have been 192 confirmed human cases of the virus, including 59 deaths reported by China since April 2013, according to the U.S. Centers for Disease Control.

WHO officials still believe the infection is not spreading from human to human. Chinese officials have closed live poultry markets in Zhejiang province, where H7N9 infections have spiked to 49 infections, including 12 deaths.

The escalating bird flu concerns were cited as one of the reasons Tyson Foods has opted to slow down the pace of its poultry processing in China.

Tyson Foods CEO Donnie Smith said, the company is still committed to vertically integrating its operations there and at this time the two plants are running one shift with company controlled birds. 

Smith said they had hoped to double that production by year end, using only company controlled birds. In the mean time the company had been purchasing birds for slaughter. But on Friday (Jan. 31), Smith said given a slower economic pace and tepid consumer demand because of the heightened flu fears the company would not be purchasing birds for slaughter and production.

He said it will take longer that originally thought to get the two plants fully operational, multiple shifts with solely company controlled birds, but that is the still the plan.

The board of directors of Tyson Foods declared a quarterly dividend of 7.5 cents per share on Class A common stock and 6.75 cents per share on restricted Class B shares.

The cash dividend is payable on June 13, to shareholders of record on May 30.

Shares of Tyson Foods fell more than 3.6% in heavy trading on Monday, (Feb. 3) after rising 9% on record first quarter earnings reported Friday, (Jan. 31).

The stock closed Monday at $36.02, but then rose to $36,87 in extended market trading . For the past 52 weeks, the share price has ranged from a $21.79 low to a $38.25 high.