Chicago is My Home

23
Jul

Former McDonald’s Executive Russ Smyth Named New CEO at H&R Block

Author: Adam Fendelman, Category: Business

KANSAS CITY, Mo. – The tax services company H&R Block announced on Tuesday its board of directors has appointed former McDonald’s Corp. executive Russ Smyth as president and CEO. Smyth, who will take over on Aug. 1, 2008, replaces interim CEO Alan Bennett. Bennett has been heading the company since former CEO Mark Ernst left in Nov. 2007.

A 21-year veteran of McDonald’s, Smyth spent his first 13 years with the company in its finance department working in financial accounting and controller positions. He later held several international executive roles including president of McDonald’s European operations. Smyth left McDonald’s in 2005 and has since worked with private equity firms and private companies.

“Russ has excellent experience working with a powerful brand and delivering consistently high-quality performance across a vast retail network,” said H&R Block Chairman Richard Breeden in a Tuesday statement. “He also has extensive experience with finance and accounting and appreciates the critical importance of improving returns on capital.”

By Megan O’Neil

23
Jul

Capital Markets Unit of Harris Bankcorp Cuts 50 Investment Bankers, Lenders

Author: Adam Fendelman, Category: Business

CHICAGO – BMO Financial recently laid of roughly 50 Chicago-based employees within the capital markets unit of subsidiary Harris Bankcorp, according to a Wednesday report by Crain’s Chicago Business.

Those let go included investment bankers, lenders and other personnel serving large corporations. The cuts represented 8 percent of the financial institution’s 650-person Chicago staff. The Chicago layoffs were part of a larger reduction at Canada-based BMO Capital Markets.

“Over the last few weeks, we have been refocusing some low-potential business to better align with our strategy of focusing on core clients,” a Harris spokeswoman said in a Wednesday statement.

By Megan O’Neil

23
Jul

AT&T Posed to Roll Out Web-Based Television Service Throughout Chicago

Author: Adam Fendelman, Category: Telecom

CHICAGO – Telecom giant AT&T has laid the groundwork to begin providing television service. Last week, the company notified the city of Chicago that it may begin offering an Internet-based, high-definition TV network in parts of Chicago within 10 days.

AT&T will be competing with cable companies Comcast Corp. and RCN Corp. Both have existing contracts with the city that determine the terms of service. AT&T television service, however, will utilize the provisions of a new state law.

AT&T’s service will operate through the Internet rather than via cable or satellite. Customers will be able to package the Internet television service with their telephone service.

By Megan O’Neil

22
Jul

United’s UAL Corp. to Slash 5,500 More Jobs, Bolster Available Cash Flow

Author: Adam Fendelman, Category: Travel

CHICAGO – United Airlines parent company UAL Corp. announced on Tuesday steps to bolster its cash strength and cut its staff following $2.73 billion in second-quarter losses.

UAL attributed the losses, which were lower than predicted by some analysts, to non-cash accounting charges and high fuel prices. UAL says it has reached an agreement to extend its contract with Chase, which is United’s co-branded bank-card partner, that will give the airline access to a $1.2 billion cash flow.

The company also announced on Tuesday plans to further reduce its staff by 5,500 in the next 18 months. During the second quarter, UAL said it would cut 1,500 salaried and management jobs. UAL shares rose more than 50 percent on Tuesday following the company’s announcement.

By Megan O’Neil

22
Jul

AT&T Illinois to Forgo $5.5 Million in Rate Hikes to Compensate Customers

Author: Adam Fendelman, Category: Telecom

CHICAGO – AT&T Illinois will forgo $5.5 million in future rate hikes through 2011 as part of an agreement to correct billing errors on certain rate packages, Illinois Atty. Gen. Lisa Madigan said in a Monday statement.

The concession is an addition to the $1.59 million in refunds the company has already paid out to erroneously charged customers. The refunds were mandated in late 2007 after the attorney general’s office detected that AT&T overcharged for some of its products.

“AT&T has made refunds and reduced the rates as originally agreed and has further agreed to defer future increases that the Illinois Commerce Commission (ICC) had authorized,” Madigan said on Monday.

The concessions announced this week include two parts. AT&T will forgo the last of three per-call rate increases scheduled to take effect on Jan. 1, 2009. This freezes the rate at 4 cents per local call for 18 months. Further, the company will retain low-priced packages through Nov. 2011.

The settlement also includes changes to the AT&T Web site that enable consumers to research and utilize lower-priced services via the Internet.

By Megan O’Neil

16
Jul

Deerfield, Ill.-Based Walgreen Co. Plans to Slow Down Growth of New Stores

Author: Adam Fendelman, Category: Business

CHICAGO – Walgreen Co. in Deerfield, Ill. has recently announced that it will slow down its decade-long push to open new drugstores by cutting new-store growth from the current rate of 9 percent to 5 percent a year by fiscal 2011. The company anticipates that the slowdown will save $500 million over the next three years.

Walgreen Co. is planning to put more resources into developing health care businesses such as on-site health clinics.

Forceful store openings have been a key component to the success of Walgreen Co., which is one of the largest U.S. drugstore chain operators, while it competes with other operators such as CVS. According to Walgreen Co. spokesman Michael Polzin, the company has increased its store count by more than 8 percent a year since 1998 and reached its peak growth of 12.2 percent by fiscal 2000.

In recent years, however, Walgreen Co. and its competitors have branched out into other areas to take advantage of the fast-rising spending on health care as Americans age. In addition to allowing Walgreen Co. to focus on expanding in the above-mentioned areas, the company says the cutback in store openings will also provide financial flexibility for potential acquisitions.

Walgreen Co. currently operates 6,297 stores. The company says it’s still on track to have more than 7,000 by 2010.

By Jenna Zizzo

09
Jul

Cargill in Minneapolis to Build New Soy Foam Plant on Chicago’s South Side

Author: Adam Fendelman, Category: Business

CHICAGO – Cargill, which is a Minneapolis food-ingredients producer, said on Tuesday it broke ground on a $22-million plant on an 80-acre site on South Torrence Aveneue on Chicago’s far south side. The plant will use soybeans instead of petroleum products to make an ingredient used in plastic foam for automotive, furniture and bedding products.

The south side location, which already houses Cargill’s existing operations, will make Cargill’s BIOH-branded and soybean-based polyols, which is used to make urethane products. Cargill wants to expand its production of environmentally friendly chemicals derived from renewable sources such as plants.

The company also stated in a Chicago Tribune article on Tuesday that Chicago is an “ideal site” for this type of a facility and the Chicago polyols factory “will be the first world-scale, bio-based polyols plant ever built”.

By Megan O’Neil

08
Jul

O’Hare Airport Ranks Last For On-Time Departures For Five Months in 2008

Author: Adam Fendelman, Category: Travel

CHICAGO – Are you catching a flight from Chicago’s O’Hare International Airport any time soon? Plan on a delayed departure.

Just 63.2 percent of flights out of O’Hare got off the runway on time between January and May in 2008, according to the U.S. Department of Transportation’s monthly Air Travel Consumer Report. Out of 32 metropolitan airports, O’Hare ranked last for on-time departure and No. 30 for on-time arrivals.

Particularly untimely were the months of January, February and March as an unusually snowy winter disrupted air traffic in the Midwest. Out of 19 carriers, UAL Corp’s United Airlines finished second to last for on-time performance with 72.4 percent of its flights arriving on time.

Chicago’s other airport fared slightly better.

Midway International Airport finished No. 5 for on-time departures for the first five months of the year but No. 27 for departures. Flights in and out of O’Hare have actually been reduced in recent weeks as the airport’s major carriers – United Airlines and American Airlines – make deep cuts in their flight itineraries.

By Megan O’Neil

08
Jul

Tribune Co. Sets July 18 as Deadline For Bids For Chicago Cubs, Wrigley Field

Author: Adam Fendelman, Category: Business

CHICAGO – The Tribune Co. in Chicago has set July 18, 2008 as the date for the first round of bids for the Chicago Cubs baseball team, according to a Tuesday report by Crain’s Chicago Business.

Any sale must meet the approval of Major League Baseball (MLB) and bidders have been approved in advance by the league. The Tribune Co. said earlier in 2008 it would put the baseball team and its storied Wrigley Field up for sale in an effort to raise money and pay off the company’s hundreds of millions of dollars in debt.

Tribune Co. CEO Sam Zell has explored options to sell the Cubs and Wrigley Field separately. Analysts estimate that the two assets – together with its stake in sports cable television – could bring in close to $1 billion.

By Megan O’Neil

07
Jul

Fresenius to Acquire APP Pharmaceuticals in Schaumburg, Ill. For $3.7 Billion

Author: Adam Fendelman, Category: Business

SCHAUMBURG, Ill. – German health services company Fresenius announced on Monday it will acquire APP Pharmaceuticals in a $3.7 billion buyout.

Schaumburg, Ill.-based APP specializes in manufacturing and marketing injectable pharmaceutical products. The firm employs some 1,400 people in the United States, Canada and Puerto Rico. If completed, the deal would give Fresenius (which is already operating across Europe) a strong presence in the world’s largest drug market.

Under the terms of the deal, Fresenius will pay $23 in cash per share for outstanding APP common stock. An additional $6 per share could be added depending on company performance in 2008.

“The combined company will allow for the rapid globalization of APP’s portfolio with the same high levels of quality and patient commitment for which we have become known,” APP founder Patrick Soon-Shiong said in a Monday statement.

By Megan O’Neil