The News Tribune Business Team will keep you updated on what's happening in the South Sound and beyond. Check here for news about economic development, aerospace, shopping and much more.
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Contributors
Marce Edwards is the business editor. She has been at The News Tribune for seven years and has written about technology and big businesses in the South Sound including Weyerhaeuser and Russell. Before moving to Tacoma, she worked at The Idaho Statesman in Boise. She is a Northwest native who likes to garden and refuses to use an umbrella. She lives in Tacoma with her husband and two kids.
C.R. Roberts is a Tacoma native. Before joining The News Tribune, he worked as a freelance writer and part-time cowhand on a cattle ranch in Northern Idaho. He writes about small business, personal finance and other business issues.
John Gillie writes about the aerospace and airline industries, commercial development and consumer issues. During his 30-year-tenure at The News Tribune he has covered issues as diverse as the Native American fishing rights disputes, crime and the courts, the wood products industry and energy. He lived in Tacoma with his family for 25 years, but now lives in Kent because his wife heads a five-state non-profit foundation headquartered in Ballard, and it only seemed a sensible compromise to make considering their workplaces are 40 miles apart.
Kelly Kearsley has been a business reporter at The News Tribune since 2005. She covers the Port of Tacoma and international trade. Being born and raised in Spokane she’s used to living in cities with inferiority complexes and, in fact, prefers it. Prior to working at The News Tribune, she spent three years as a reporter for The Bulletin in Bend, Oregon and another year working stints for The Associated Press and Seattle Times. She graduated from Pacific Lutheran University. She lives in Tacoma with her husband and miniature schnauzer.
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Shares in Bellevue-based Paccar Inc., the nation's third largest truck maker, fell 10.51 percent today after the company announced earnings below Wall Street's expectations.
The company's stock closed at $26.82 a share, down $3.15 from Monday's close. That's a 10.51 percent decrease.
Paccar announced earnings of $299.0 million, or $0.82 per diluted share, for the third quarter. That compares to $302.3 million, or $0.81 per diluted share, earned in the third quarter of 2007.
Revenues bumped up to $3.68 billion from $3.45 billion a year-ago.
Wall Street had expected earnings of of 87 cents per share on revenues of $3.85 billion.
The company predicted slower times ahead until the economy revives.
"Commercial vehicles generate steady aftermarket revenues and many of them also contribute financial services income, which partially offset reduced truck build rates worldwide. In these turbulent times, PACCAR is experiencing lower truck demand in Europe, Mexico and Australia, and continued softness in the U.S. and Canada, which will reduce financial results in the fourth quarter of 2008 and into 2009," said PACCAR Chief Executive Mark Piggot.
How big a toll a 45-day Machinists Union strike has taken in Boeing earnings will be revealed Wednesday when the aerospace company releases its third-quarter earnings.
Wall Street analysts have been reducing their earnings predictions as the strike by 27,000 union members rolls into its seventh week.
Third quarter commercial aircraft deliveries were down 23 percent to 84 planes in the quarter than ended Sept. 30 after machinists struck the company Sept. 6. That strike shut down production lines throughout Puget Sound.
Wall Street analysts on average are predicting earnings at Boeing of 99 cents a share and revenue of $14.66 billion.
The strike has also delayed the first flight of Boeing's new 787 Dreamliner, an ultra-efficient plane is already 15 months behind schedule when the strike started.
The company and the union begin a new round of settlement talks Thursday in Washington, D.C.
Passenger traffic at Sea-Tac Airport advanced again in September in the face of business downturns and airline flight reductions nationwide.
New figures from the Port of Seattle, which owns Sea-Tac, show 36,304 more passengers used the airport in September this year than in the same month last year. That amounts to a 1.37 percent increase.
For 2008's first nine months, the figures are better. The port's figures show a gain of 1,270,946 passengers through September over the same stretch in 2007. That's a 5.36 percent increase.
SeaTac's Alaska Airlines kept its position as busiest airline at the airport in 2008 with a 33.88 percent market share and 8,460,611 passengers through Sept. 30. That's 1.32 percent more than last year.
United Airlines, which has pared back its flight schedule nationwide, was the biggest traffic loser at the airport with 210,131 fewer passengers at Sea-Tac than last year. That's a decrease of 10.19 percent.
New airlines at the airport have stolen market share from established carriers. Virgin America, for instance, carried 249,073 since it started service to Sea-Tac this spring. The airline flies from Sea-Tac to San Francisco and Los Angeles, two of United's primary destinations from Seattle.
What, you ask, should you drink with your Thanksgiving dinner?
Starbucks has an answer. The coffee company has a new Thanksgiving blend created in partnership with chef Tom Douglas.
The blend arrives in stores on Nov. 4. Here's how the company describes it: "A flavorful combination of full-bodied beans from Sumatra, with hints of fine herbs, and beans from Guatemala, which add subtle spice, notes of cocoa and a pleasant sparkle."
The partnership described: The relationship between Starbucks and Chef Tom Douglas spans across three decades with Starbucks as the exclusive coffee in all of Douglas’ restaurants, but Starbucks Thanksgiving Blend marks their first coffee blend collaboration. To create the perfect addition to the Thanksgiving table, the coffee quality and blending team of Starbucks collaborated with Chef Douglas and his team of culinary experts to explore a variety of coffees from around the world.
Thanksgiving Blend will be available hot, or even iced, in 12 oz, 16 oz, and 20 oz sizes. It will also be sold in 1 lb. bags for $10.95 at Starbucks locations throughout the U.S. that sell whole bean coffee, according to the company.
Washington's September unemployment rate, 5.8 percent, remains below the national average of 6.1 percent, but rose nearly 30 percent over the rate in September 2007.
Those figures from the Washington State Employment Security Department were announced today.
"Those figures indicate that Washington State is still doing somewhat better than the national economy," said Greg Weeks, the department's director of labor market and economic analysis.
While the unemployment rate is up over last year, it remains significantly below historic highs. During a recession in the '80s, unemployment rate in Washington State surpassed 12 percent, and after the 2001 terrorist attacks it approached 8 percent statewide and 9 percent in Pierce County in June 2003.
Those same figures show unemployment in the state declining by .2 of a percent from August when the unemployment rate was 6.0 percent.
