No inflation worries here
Posted on November 10, 2009 at 7:23 am
Dirk van Dijk breaks down the components of interest-rate policy and says the Fed is best off sitting tight for a good bit longer.
While it is true that the implied inflation has been climbing since it almost hit zero last year, it is not at levels that suggest inflation is going to skyrocket. This means that the Fed should be far more concerned about getting the economy moving again. Any move to tighten up monetary policy by raising interest rates would be a serious mistake.
Also: If you read to the end of van Dijk’s piece, you’ll see some thoughts about the price of gold and the idea that — gasp — supply and demand, not a bunch a wily speculators, may actually be driving the commodity’s price.
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Noranda buys back more debt
Posted on November 6, 2009 at 2:11 pmThird-quarter losses at Franklin-based Noranda Aluminum hit the middle of its previously projected range, coming in at $4.3 million. The company also bought back more than $80 million in debt during the quarter, pushing its year-to-date total in that deparment to almost $300 million.
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Noranda nursing smelter back to health
Posted on October 1, 2009 at 7:42 amAluminum producer Noranda is bringing back 38 workers to restart one of its lines at a Southeast Missouri plant that was all but knocked out by an ice storm early this year. The Franklin-based company also is getting $8 million in training and equipment incentives from Missouri officials.
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Area construction costs retreat a bit
Posted on September 15, 2009 at 7:31 am
Construction costs in the Nashville area fell by 0.6 percent in the third quarter, say the research folks at Connico and Rider Levett Bucknall. That’s an experience similar to many other cities and one that is expected to continue for a good while.
We anticipate that contractors will continue to put forward aggressive bids as long as there remains a concern about the amount of construction work available. Uncertainty related to when construction volumes may regain a stable footing will likely continue to keep the cost of construction competitive.
Recovery of the overall economy and a thawing of the credit markets could be the indicators that the construction industry may anticipate potential improvement in future construction volumes.
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Noranda cranks it up
Posted on September 3, 2009 at 6:57 am
Having acquired full ownership of a Jamaica bauxite mine and a Louisiana alumina refinery, Franklin-based Noranda Aluminum says it will increase production to feed its 44-acre Missouri plant, an aerial view of which is at left.
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Another sign of the bottom for LP
Posted on August 24, 2009 at 2:34 pmWord from the forests is that wood prices are stabilizing.
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Tortola into its first turnaround
Posted on August 12, 2009 at 7:27 am
Tortola Partners, the turnaround firm formed this spring by Steve Curnutte and Robert Gonzales, is getting to grips with its first portfolio company, an aluminum producer in Alexandria, Tenn. Gonzales, pictured here, is the company’s chief restructuring officer.
“As more and more aluminum processors have filed Chapter 11, or simply gone out of business, scrap dealers have become reluctant to extend trade credit, making it tough for otherwise healthy companies like TriStar,” said Mr. Gonzales. “Now that we’ve filed to reorganize, our trading partners can be confident that obligations going forward won’t get stuck as pre-petition debts.”
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Another reason LP’s rally is real
Posted on August 10, 2009 at 7:08 am
A Barron’s piece outlines the reasons why the price of timber — the main input cost for the Nashville-based construction materials supplier — is set to fall 50 percent in the coming years.
Timberland is a rarity because prices have risen steadily since the mid-1990s, with Southern timber properties more than doubling to around $1,700 an acre, even as the price of logs, lumber and other forest products scrapes multiyear lows. Last year, when almost all investment categories declined in value and the U.S. stock market fell about 35%, timberland prices rose 9%, atop a 17% gain in 2007.
SEE ALSO: More fuel for LP’s fire
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Memphis cotton giants mull merger
Posted on August 7, 2009 at 7:15 am
Allenberg and Dunavant, two of the biggest players in Memphis’ corporate scene, are in talks about combining their operations, a move that would create a company with more than $3 billion in sales and further shake up what has been a volatile sector of late.
At least three major merchants faced financial difficulties after the benchmark cotton price in New York jumped to a 12-year high in March 2008 and then plunged to the lowest since June 2002, according to Mike Stevens, a Swiss Financial Services analyst. The credit crisis and recession also worsened the situation as banks curbed lending, analysts said.
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Noranda to post Q2 loss
Posted on July 27, 2009 at 8:07 amFranklin-based aluminum maker Noranda says it expects to book a second-quarter loss of between $2 million and $23 million. The quarter included plenty of one-time charges — positive and negative — related to debt buybacks, hedging activities and asset writedowns.
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A break for holiday drivers
Posted on June 28, 2009 at 8:15 pmThe AAA says oil prices have peaked for now and should head in the opposite direction they usually do come Independence Day weekend.
With high oil inventories and weak demand, 21 of 38 analysts (55%) surveyed by Bloomberg each Thursday say they expect oil futures to decline in the week ahead. Only eight of 38 expect prices to increase. (Nine remain neutral.)
Additionally, falling wholesale prices point to further drops ahead for retail prices, according to Retail Fuel Watch, an oil industry weekly published by Oil Price Information Service.
“Last year at this time, we saw the national average price of gasoline increase from $4.07 to $4.10 on July 4. Fortunately, it’s a much different story this year. All the indicators reflect that the peak price is behind us and we can now expect retail gasoline prices to edge downward, even as we approach the Independence Day weekend,” said Gregg Laskoski, managing director of public relations, AAA Auto Club South.
Insurer’s check in the mail for Noranda
Posted on June 25, 2009 at 8:31 amAluminum producer Noranda will get $44 million to settle some of the claims stemming from a January ice storm that knocked out its large Missouri plant. In its most recent quarterly report, the Franklin-based company has $77 million of coverage. (Search for ‘January 26.’)
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Firestone unit laying off in Texas
Posted on June 19, 2009 at 7:16 amAt least two dozen workers at the Firestone Polymers plant in Orange, Texas, near the Louisiana state line, will be let go in the coming week. The plant was heavily damaged by Hurricane Ike last September.
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Ala. county prepares to sue local materials company
Posted on May 21, 2009 at 8:15 amLimestone County officials say that, despite the passage of several laws aimed at stopping its activities, the Rogers Group continues to run a rock quarry in the area.
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Investment pros hedge with the yellow stuff
Posted on May 20, 2009 at 8:16 amSeeing inflation on the horizon, several prominent hedge fund managers are piling their cash into gold and oil.
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