Tacoma-based Rainier Pacific Financial Group reported Friday afternoon that it is conducting “on-going monitoring and evaluation” of holdings in 15 pooled trust preferred securities. The evaluation has led to an accounting adjustment for earnings in the fourth quarter and for the full year 2008.

According to the announcement, the adjustments will result in additional pre-tax impairment charges of approximately $18.9 million which increase the company's net loss for the year to $14.6 million, or a loss of $2.44 per diluted share; compared to a net loss of $2.5 million, or a loss of $0.42 per diluted share, as previously reported.

For the fourth quarter, Rainier Pacific expects the adjustments to increase its previously reported net loss to $14.1 million, or a loss of $2.36 per share from a net loss of $2.0 million, or a loss of $0.34 per diluted share.

“This is an ongoing evaluation,” said John Hall, president and CEO.

The securities were purchased between 2003 and 2005, he said. The announcement does not signal default, he said, as the pooled securities are, in most cases, being repaid on schedule. These “collateralized debt obligations,” issued by other banks and insurance companies, may eventually retain their intended value.

Rainier Pacific also announced it has agreed to sell its VISA credit card portfolio balances to U.S. Bank National Association ND, dba Elan Financial Services. The sale will increase Rainier Pacific’s liquidity, and will not affect customer accounts.

A 32-year-old Coast Guard icebreaker, moored in Seattle for more than two years because of needed maintenance and upgrades, will be overhauled and returned to service.

The Coast Guard Friday awarded a $29 million contract to Seattle's Todd Shipyards for the retrofit of the icebreaker Polar Star built at Seattle's Lockheed Shipbuilding Corp. yard in 1976.

Washington Sen. Patty Murray, who helped obtain an appropriation to reactivate the ship, said the contract will support 250 jobs at the shipyard.

The Polar Star and its sister ship, the Polar Sea, are among three heavy icebreakers stationed in Seattle. The third is the more modern Healy.

The Polar Star was sidelined in 2006 because of maintenance needs. A crew of 34 has kept the ship in a caretaker status.

"This news couldn't have come at a better time," said Steve Welch, Todd chief executive. "There are a lot of folks struggling in this economy and ship repair work has an immediate impact on the economy – putting suppliers to work, as well as our own people."

The Coast Guard in recent years has campaigned for more icebreaking capability, but its requests were sidelined because of more urgent needs in Iraq and Afghanistan.

With global warming opening polar sea lanes to more traffic and oil exploration, the Coast Guard has said it needs more capability to operate in the icy sea lanes.

Building a new icebreaker would likely cost in excess of $1 billion and require four or five years of planning and construction.

The cost of groceries rose 1.5 percent in January from the cost in December. The cost of gasoline rose 10.8 percent – but is down 34.2 percent from the level recorded in January, 2008.

So said the Bureau of Labor Statistics today in its monthly Consumer Price Index report for the Tacoma-Bremerton-Seattle area.

The bureau said the increase in gasoline prices was the primary reason for a 4.8 percent rise in the special aggregate index for energy in January. The 12-month drop in gasoline prices strongly influenced the 20.8 percent fall in overall energy prices.

The household energy index decreased 0.7 percent from December to January, but was 2.3 percent higher than one year ago. Within the household energy index, electricity prices edged down 0.1 percent for the month and declined 0.2 percent for the year. The utility (piped) gas service index was unchanged from December to January, yet was 15.5 percent higher than in January a year ago, the bureau reported.

Shelter prices increased 0.7 percent in the area in January and were 5.0 percent higher over the year.

Compared to January 2008, grocery prices were 6.9 percent higher. The grocery index now stands at 236.85, which means that grocery shoppers in the Tacoma area spent $236.85 in January 2009 for a basket of food items that cost $100.00 in 1982-84.

There is good news out there. Really.

today, the governor’s office reported that the state’s exports set a record in 2008, rising to $66.8 billion, a $400 million increase over 2007.

The state also maintained its rank as the 4th largest exporter in the U.S. by total value, the office reported in a release. Agricultural exports were especially strong, led by a 90 percent increase in cereal exports over 2007. Give thanks in part to a weak U.S. dollar

Exports of aerospace products fell nearly 20 percent in 2008, what with a strike at Boeing, but growth in most other sectors, including industrial machinery, forest products, and high-tech equipment, made up for the shortfall.

The numbers were released today by the Washington State Department of Community, Trade and Economic Development and were compiled by the World Institute for Strategic and Economic Research.

“Washington’s strong export numbers illustrate how the diversity of our economy can help offset some of the impact of the current recession” said Gov. Gregoire. “Washington offers to our companies some of the best global trade connections and infrastructure in the world. That makes our economy stronger and more competitive.”

China, Japan and Canada remained the top export destinations, the release said, and exports to Asia made up more than half the state total. Exports to India and much of Europe, including the UK, France and Ireland, all declined from 2007 levels.

With the global economic downturn, the slump in U.S. exports that began in late 2008 is expected to continue into 2009. “Although we expect 2009 exports to be below the last two years as a result of a stronger U.S. dollar and the global recession, it’s important for companies to continue to consider exports a large part of their business strategy,” said Larry Williams, CTED Interim Director.

To see the complete WISER report on 2008 exports, visit www.cted.wa.gov/site/122/default.aspx.

Sea-Tac Airport Director Mark Reis will testify before Congress Tuesday about the airport's advanced efforts to protect planes from bird damage.

Reis, appearing before the House Subcommittee on Aviation, will speak about the airport's experimental avian radar, its wildlife management and bird relocation programs. Reis will represent Airports Council - North America.

The hearing is designed to give Congress a better insight into how aircraft can be better protected from bird damage.

Appearing at that same hearing will be the crew of US Airways Flight 1549, which ditched into the Hudson River after it struck a flock of birds on takeoff from New York's LaGuardia Airport. Those birds disabled both of the aircraft's engines.

All 155 passengers and crew of Flight 1549 survived.

In a move to augment traffic through its Salt Lake City hub, Delta Air Lines will added two daily flights from Seattle to the Utah capital.

The flights will be in place by June, the Atlanta-based carrier said.

The schedule additions are part of Delta's effort to funnel more traffic through Salt Lake City.

Delta is adding non-stop flights from eight additional cities to Salt Lake this year. Those cities are: Bismark, N.D.; Des Moines, Iowa; El Paso, Tex.; Fargo, N.D.; Indianapolis; Nashville, and Sioux Falls, S.D.

The airline is also adding additional frequencies to Salt Lake from Spokane and Portland.

Boeing rival Airbus says it will reduce its production rate of commercial aircraft this year as airlines cancel and postpone deliveries.

Airbus, once slatted to increase production this year, said it will slow its production of A320 twin jets to 34 a month from 36.

The company also will cancel its plans to increase production of its A330 and A340 jets. The European planemaker now is producing 8.5 of those wide-bodies aircraft a month.

"We reached record production rates in late 2008, but now we see a drop in air traffic in most regions," said Airbus chief executive Tom Enders.

"Many airlines are taking capacity out of the market. I do not exclude further production cuts if the need arises," he said.

Seven hundred Boeing Co. workers in the Puget Sound area will receive 60-day layoff notices today.

The notices tell them their jobs will end April 24. The layoffs are part of a Boeing plan to trim its workforce by 10,000 employees in 2009.

Company-wide, 400 more workers in other Boeing locations also are receiving layoff notices today.

The company plans to issue 60-day warning notices once monthly until it reaches its 10,000-terminations goal.

The company says a soft airline market is partly to blame for the reductions. As passenger traffic drops and profits disappear, airlines worldwide are cutting back on scheduled deliveries of new airliners.

Boeing expects to produce about 480 jetliners here in the Puget Sound area this year, but is likely to throttle back its production next year.

The company's cuts are likely to be deepest in its Shared Services Group, based here, that provides services for Boeing's main production divisions.