REGIONAL BUSINESS
Union leader in flap
A local union president says he will not resign after what he calls a “misinterpretation” of a union policy. Edward Machingo, president of the United Steelworkers Local 1375 in Warren, told the Vindicator, a Youngstown newspaper, that overpayments to him of more than $5,000 came as a result of a misinterpreted union policy.
Machingo was found guilty by the union’s International Commission and has to repay $5,094.88 in overpayments from a six-month period dating to 2009.
That ruling was upheld by the International Executive Board Appeal Panel last month.
Machingo has six months to repay the overpayments; he said he already has reimbursed the local union roughly 50 percent of the total and expects to pay off the balance by the end of the month.
During a Severstal plant shutdown in 2009, remaining workers were to have been compensated at a second-grade pay rate, or about $17.55 an hour. Machingo was paid the third-grade rate of about $24 an hour. But because the plant was not completely shut down, Machingo said he didn’t believe a union policy, which stated that all remaining employees during a shutdown should be paid at the second-grade rate, applied.
Goodyear joins group
Goodyear Tire & Rubber Co. joined the Suppliers Partnership for the Environment, an organization made up of automakers, their suppliers and the Environmental Protection Agency.
The Washington, D.C.-based automobile industry supply chain group works to promote “sustainability” in the areas of chemicals, energy and water, materials efficiency and technology and networking.
Goodyear said the key issues it is interested in are materials optimization, operational efficiency and reducing energy use in its supply chain.
Goodyear will be represented by David Chapman, director, Global EHS Sustainability; David Woodyard, global manager, Environmental Sustainability and Product Stewardship; and Aiman Abdrabou, global manager, Energy & GHG.
EARNINGS
Coke beats estimates
Coca-Cola Co., the world’s largest soft-drink maker, reported fourth-quarter profit that topped analysts’ estimates as teas and juices boosted sales in Asia. Profit excluding some items was 79 cents a share, Atlanta-based Coca-Cola said. That exceeded the 77-cent average of 14 analysts’ estimates compiled by Bloomberg News.
Net income in the quarter fell to $1.65 billion, or 72 cents a share, from $5.77 billion, or $2.46, a year earlier, when the company posted a gain from an acquisition.
Coca-Cola shares climbed 6.4 percent last year, while competitor PepsiCo Inc. gained 1.6 percent.
Akron’s Coca-Cola distribution center has 258 employees and Twinsburg’s bottling plant has 120. Both are company-owned.
Disney profits up
Walt Disney Co., the largest U.S. entertainment company by market value, said first-quarter profit rose 12 percent on growth at ESPN and its U.S. resorts.
Net income grew 12 percent to $1.46 billion, or 80 cents a share, from $1.3 billion, or 68 cents, a year earlier, Burbank, Calif.-based Disney said. Profit beat the 71-cent average of 27 estimates compiled by Bloomberg News. Sales gained 0.6 percent to $10.8 billion in the period ended Dec. 31, missing estimates of $11.2 billion.
Fees from pay-TV operators and advertising sales drove profit growth at the cable channels led by ESPN, the most-watched sports network, the company said. The parks division benefited from strong attendance and higher prices. Together the two units accounted for 77 percent of Disney’s operating income last year and 60 percent of sales.
Disney shares rose 1.3 percent to $40.98 Tuesday. The stock has gained 9.3 percent this year.
ENERGY
Pa. counties can tax gas wells
Pennsylvania’s Senate approved a measure to let counties levy annual fees on natural gas wells, which the state estimates could generate revenue of about $211 million this year.
Proceeds of the 15-year fees, based on the average annual price of natural gas, would mostly be used to help communities affected by drilling in Marcellus Shale deposits. Some of the money would go to statewide environmental needs, according to the bill, which was approved in a 31-19 vote. The measure goes to the House of Representatives now.
The action in Harrisburg comes as several states consider measures to mitigate the effects of hydraulic fracturing, or fracking, to extract gas. In Ohio, lawmakers are weighing a fee on drillers that use the technique.
Compiled from staff and wire reports
