Airline profits climbing
Packed planes should help the world’s airlines earn $12.7 billion this year, as travel demand accelerates faster than the airlines add seats, according to a new prediction from IATA, a trade group.
The estimate represents a 67 percent increase over the airlines’ $7.6 billion in profits last year.
Financial index adds Hawaiian Telcom
Hawaiian Telcom Holdco Inc. has been added to the MSCI US Small Cap 1750 Index.
The company, which has gone from phone company to integrated communications provider, was added at the close of the markets Friday as part of MSCI Inc.’s semiannual index review.
"We are excited to join the MSCI family of indices," said Eric K. Yeaman, Hawaiian Telcom’s president and CEO, in a statement.
"We believe that membership in the MSCI indices will increase our exposure to the broader institutional investment community, help further expand our shareholder base and contribute in our efforts to enhance shareholder value," he said.
Wal-Mart Stores Inc. to buy local produce
NEW YORK » Wal-Mart Stores Inc. announced Monday steps to improve the quality of its fresh fruits and vegetables.
The nation’s largest grocer and retailer said it is making more changes in its operations, training and sourcing as it looks to increase sales of bananas, lettuce and other produce and instill more confidence among shoppers looking for healthier choices.
Changes include delivering produce from farms to store shelves more quickly by purchasing fruits and vegetables directly from local growers. It’s also conducting independent weekly checks of the produce aisles at its more than 3,400 Supercenters, Neighborhood Markets and Express stores.
Zynga Inc. stock plunges on layoff news
SAN FRANCISCO » Zynga Inc., a maker of online games, said Monday that it is cutting 520 jobs, about 18 percent of its workforce, in a cost-saving move designed to help it adapt to consumers shifting their play from computers to mobile devices.
Zynga expects the move to save about $70 million to $80 million in annual costs. But the San Francisco-based company behind "FarmVille" and "Words with Friends" also now expects a worse loss in the second quarter than it previously anticipated, as well as weak bookings, which will weigh on future revenue.
Zynga’s stock plunged 12 percent to close at $2.99 on the Nasdaq stock market after trading was halted twice Monday. Its shares have traded below $4 since about July 2012, after debuting at $10 in its December 2011 initial public offering.
Less sheer Lululemon pants back in stores
NEW YORK » Lululemon is starting to get its Luon black yoga pants, which were pulled in March for being too sheer, back into its stores.
That bodes well for the company, analysts said Monday. And the see-through snag didn’t affect Lululemon’s brand too much, says Canaccord’s Camilo Lyon.
Lululemon Athletica Inc. had blamed the sheerness on a style change and production problems. It hired a new team to oversee the making of the pants, which retail for about $72 to $98. The company has said it expects to lose $57 million to $67 million in revenue because of the pants problem.
Manufacturing activity slipped in May
WASHINGTON » A measure of U.S. manufacturing fell in May to its lowest level since June 2009 as slumping overseas economies and weak business spending reduced new orders and production.
The Institute for Supply Management said Monday that its index of manufacturing activity fell to 49 last month from 50.7 in April. That’s the lowest level in nearly four years and the first time the index has dipped below 50 since November. A reading under 50 indicates contraction.
The ISM index had sunk during the recession to a low of 33.1 in December 2008.
Since the recession ended in June 2009, it peaked at 59.6 in February 2011.
Construction spending rose 0.4% in April
WASHINGTON » Spending on U.S. construction projects rose in April despite weakness in residential projects and government spending.
Construction spending rose 0.4 percent in April, compared with March, when spending fell a revised 0.8 percent, the Commerce Department reported Monday.
Construction activity has been volatile in recent months, falling by a record 4 percent in January but rising in February only to drop in March.
On the Move
Atlantis Adventures has appointed Jun Krook as sales manager. She will be responsible for the tour experiences offered by both Atlantis Submarines and Atlantis Navatek Cruises and will focus on increasing interest among Hawaii’s international visitors. Krook’s experience includes five years of managerial positions for Satura Cakes, highlighted by the opening of two new stores in California and three new stores in Hawaii.
Current Affairs has named Tiffany Richardson Tucker sales assistant. She will provide sales support by generating leads and assisting associates with event planning and production needs for clients. Previously, Tucker served as a surgical assistant at Pacific Maxillofacial Center.
Arancino Restaurants has appointed Aya Inamura vice president. She will be responsible for operations, financial management and marketing of the multimillion-dollar family business with two locations in Waikiki and a third to open at The Kahala Hotel & Resort on June 18.
