Fort Wayne Observed

Allen County "Fiscal Summit" Planned By Auditor Lisa Blosser

County Clerk Therese Brown, speaking for County Auditor Lisa Blosser, has announced that there will be a local government "Fiscal Summit" on July 21st. Auditor Blosser has organized the meeting with the object of having all local government taxing units meet together to discuss the overall tax burden on Allen County citizens.

The head of Indiana's Department of Local Governmental Finance will be present to meet with the loca unitsm representatives. =

Parent of Fort Wayne Pepsi Bottler Subject of Buy-out Offer from Pepsi

PepsiCo has launched what it terms a friendly offer to buy its two largest bottlers - PepsiAmericas and Pepsi Bottling Group.

PepsiAmericas is the second largest Pepsi bottler worldwide.  It is the parent of the Fort Wayne Pepsi bottler on North Harrison just north of the St. Marys River.  The Fort Wayne bottler was established originally as Wm. Scheele & Sons.

The Wall Street Journal's Betsy McKay, Dennis Berman and Valerie Bauerlein write today:

A decade ago, Pepsi sought to separate itself from its bottlers, figuring it would help the company focus on soft-drink growth while keeping bottling assets off its balance sheet. In an interview, Pepsi Chairman and Chief Executive Indra Nooyi said business conditions had changed significantly since then. Consumers are abandoning soft drinks for water, juice and other noncarbonated beverages.

Owning the two big bottlers would give Pepsi control over how it distributes its beverages, allowing it to revamp production and distribution and squeeze out costs. "We can accelerate revenue growth and be more agile and flexible," she said of the offer. "When you have a flat-to-shrinking profit pool, slicing it 20 ways to Sunday is not the answer."

Combining Pepsi with its two main bottlers would give Pepsi control of about 80% of its North America beverage distribution volume. The company also said it expects to save $200 million through synergies, and expects to boost annual earnings by 15 cents a share once those synergies are fully realized.

BF Goodrich Announces Tire Plant Closing ... in Alabama

Michelin North America has announced the permanent closing of a BF Goodrich tire plant which will cost the jobs of 1,000 workers.  It is not the Woodburn facility, however,  but the company's plant in Opelika Alabama.  The Woodburn plant in Allen County, which employs approximately 1,500 people, should actually see somewhat increased protection - and job security - with the shutdown of the Alabama plant at the end of October.

The plant has made tires since 1963.  The company cited decreasing demand for replacement tires as the cause.

Jenny Munro of Greenville [SC] Online:

"Business decisions that directly impact the lives of our employees are extraordinarily difficult," said [Dick Wilkerson, Michelin NA CEO]. "It isn’t any fun."

The Opelika decision "is necessary, however, for the long-term health and competitiveness of Michelin North America. In this crisis, there is no more business as usual."

Opelika employees received the news at 2 p.m. today. Michelin will work with government agencies, communities and the United Steel Workers union to help employee transitions as smooth as possible. The company will provide a severance package, including separation pay and other benefits.

More: Montgomery, Alabama, Advertiser story

Tincaps Likely to Have a Winning April at Home Field

If research on major league teams is any guide, the Fort Wayne Tincaps are likely to have a winning April at home.

Tim Marchman writes in the Wall Street Journal that teams which opened new ball parks since 2003 have "posted a collective .603 winning percentage through the end of April."

The new ballpark effect tends to wear off, though, after May 1.

Mr. Marchman writes, "If there's an April advantage for teams with new ballparks, it probably has its roots in pitching and defense.  Maybe the home team's advance knowledge of the quirks of the yard - and how to exploit them - give them a palpable edge in the earlygoing."

2009 New Haven Canal Days and the Economy

There has been some communication that the New Haven Canal Days celebration may be somewhat scaled back for 2009 or even postponed until 2010.  It is one of the earliest events in the area kicking off the summer festival season.

A postponement or even a downsizing may disappoint some who look forward to the annual festival but the economy means sponsor dollars for many activities have become tighter this year.  Organizers of the New Haven event have set a certain standard of size and complexity to the event and a postponement until 2010 may allow the Canal Days to ensure that the festival returns to not only entertain the visitors and participants but also meets its other goal - raising funds for a variety of community improvements.

You may view the range and size of those contributions on the Canal Days website here.

Some of the events normally associated with Canal Days are still likely to occur during the traditional time of Canal Days even in the event of postponement.  It is expected the Canal Days 5K will still take place on Saturday, June 6th.

The organizing committee will be meeting later this week.

The Messiah

The performance of The Messiah Easter drama by the Abundant Life Tabernacle is a striking presentation of The Gospels in two hours of rousing music, sweeping staging, and vivid colors. 

There is one additional performance tonight at 7:30 PM at the church - located at 3301 Coliseum Boulevard between Hobson Road and Vance Avenue.

Photo credit: Fort Wayne Observed | Mitch Harper

WSJ: "Lincoln Faces Liquidity Crunch"

The Wall Street Journal's Scott Patterson reports in today's edition that Lincoln Financial is facing a "liquidity crunch" as obligations come due.

Mr. Patterson writes:

Monday, Lincoln will have to pay down $500 million in debt. The company has said it will pay its obligation in full with internal cash. But it's due to pay off another $375 million in commercial paper debt due in May. Thanks to a string of credit-rating-agency downgrades, Lincoln isn't eligible for the Treasury Department's commercial-paper funding program.

Lincoln says it has planned for tough times by shoring up cash through dividend cuts and staff reductions, among other things. "We have readied internal resources to handle near-term debt maturity but also any potential disruption in the commercial-paper market," said Lincoln Chief Financial Officer Fred Crawford.

Analysts harbor concerns. [ ... ] Citigroup analyst Colin Devine [ ... ] cut his rating on Lincoln to "sell" from "buy" last week. Mr. Devine expects Lincoln to report a loss of $5.17 a share when it releases its first-quarter results next month. That would be the biggest quarter loss in its history.

[ ... ]

For now, state regulators say they aren't on high alert.  [ ... ]

Lincoln's shares have fallen 91% from their all-time high of about $75 reached in May 2007, and are down 63% this year, though they gained 6% on Friday. The cost of protection against default of Lincoln's debt, as seen in prices of derivatives known as credit-default swaps, has soared in recent weeks. That indicates credit investors are worried about the company's ability to pay its debt.

The woes mark a big change for one of the nation's largest insurers.  [ ... ]

[A]s it competed with other life insurers in a race to provide more tempting annuity guarantees to consumers, it put itself in a vulnerable position. When the stock market plunged, the gap between what it had promised consumers and the value of the stocks it held widened sharply.

[ ... ]

If the market stabilizes, Lincoln and other insures' woes may subside. The industry is also waiting to see whether it will be eligible for funds from the government's Troubled Asset Relief Program. In November, Lincoln purchased an Indiana savings and loan to qualify for funds.

Souder Announces VA to Stay; Enhance Services

US Representative Mark E. Souder declared "victory" today in the fight for US military veterans to receive VA medical care in Fort Wayne.

Representative Souder mde the announcement at a 2:30,PM press conference at the VA Medical Center on Lake Avenue. The VA will build a new and much larger oupatient facility on the grounds of the current VA Center.

In-patient services will be contracted in Fort Wayne for veteran in-service procedures including medical services which are not currently provided in Fort Wayne. =

Motorist Bites Off Part of Bicyclist's Ear in Scuffle

This news is out of New Castle but it highlights the sometimes irrational tensions that exist when "Share the Road" isn't practiced.

From the Muncie Star Press:

Jeffrey H. Guffey, 31, told city police he was riding a bicycle when he shouted at the driver of a sport utility vehicle that passed him and told the driver to slow down. The vehicle stopped, and Guffey began scuffling with the driver, police

During the fight, the man bit off a portion of Guffey's ear, police said. Guffey said the man then got up and spit his ear out at him before he drove away, a police report said.

Contents of a Geocache

 

Hiking or running the trails in early Spring may reveal things that are later obscured by the growth of underbrush and the tree canopy. 

The photograph above is of the contents of a geocache hidden in the woods.  The last entry on the log was dated April 19 - presumably of the year 2008.  The contents of the geocache were placed back in the container following the photograph and the container was placed back in the spot it was found.

Photo credit: Fort Wayne Observed