Leaders serve hot dogs to show appreciation

Lawrence economic development officials fed several hundred employees of businesses Friday at the East Hills Business Park as part of Kansas Business Appreciation Month.

Above, from left, Alicia Janesko, Lawrence Chamber of Commerce marketing manager of economic development; Jean Milstead, Lawrence-Douglas County Economic Development board member; and Cathy Lewis, director of chamber programs, serve a hot dog lunch to Cathy Fenton, an employee with API Foils.

Economic development officials will serve a similar lunch June 21 to employees who work in the northwest Lawrence industrial area, which includes Reuter Organ Company, PackerWare and Lawrence Paper Company.

First quarter: Bankrupt retailer Kmart reports $1.45 billion loss

Kmart Corp. lost $1.45 billion in the first quarter as sales fell more than 8 percent and the discount retailer absorbed heavy costs in its first full quarter since filing for bankruptcy protection.

The heavy losses include reorganization costs such as store closings.

For Kmart, it is the second straight quarter of billion-dollar-plus losses.

The quarterly loss amounted to $2.88 a share for the 13-week period that ended May 1, in contrast to a loss of $233 million, or 48 cents a share, a year ago.

Kmart filed for Chapter 11 bankruptcy protection Jan. 22.

James B. Adamson, Kmart chairman and chief executive, said the losses were significant, but said the company is making progress, particularly in addressing in-stock levels and customer service.

Kmart operates both a store and a distribution center in Lawrence.

Labor: Auto parts workers end strike

Parts maker Johnson Controls Inc. and the United Auto Workers reached tentative settlements on contracts Friday, ending walkouts that began earlier this week.

The contracts involve plants in Earth City, Mo., Oklahoma City and Shreveport, La. Workers at a nonunion plant in Northwood, Ohio, also ended their walkout, UAW spokesman Paul Krell said.

General Motors Corp. and DaimlerChrysler AG shut two assembly plants each Wednesday because of a lack of parts and components produced by Johnson Controls. Both expected full production to resume by Monday.

About 700 workers at the four Johnson plants were affected by the walkouts, according to the UAW.

Contract terms were not immediately disclosed.

Utility: SEC seeks Aquila data

Aquila Inc. said it may modify its dividend policy to address credit-rating concerns, and said it received an informal request for information from the Securities and Exchange Commission about potential “round-trip” trading, in which two companies sell power to each other simply to raise revenue.

Aquila intends to cooperate fully with the SEC’s request to voluntarily submit documents regarding trading activity for the period from January 2000 through the present.

Aquila, which said May 31 that it planned to maintain its annual dividend rate of $1.20, said Thursday that it began a review of its dividend payout “in light of changes in the current business environment.”