Perdue Signs Two Bills To Boost Business

Businesses in Georgia could be in line for substantial tax breaks, following a pair of bills signed into law by the Governor.

One piece of legislation changes how tax credits are earned by companies doing business in the state—allowing bigger breaks for more higher-paying jobs added. The other bill would end the tax on business inventories—this however needs a constitutional amendment through a voter referendum.

Both measures moved through the Legislative session with little resistance.

Thomas Smith, assistant professor with Emory University’s Goizueta School of Business, says even with state budget shortfalls, direct help for companies is good:

"I think we’ve got to worry about first thing’s first, and worry about the state budget second. And the first things we’ve got to worry about are--are the businesses able to do business? And if they can’t, then, who cares about the state budget."

Still waiting to be signed by Governor Perdue--legislation to give tax credits to businesses that hire unemployed Georgians for a certain length of time, and to reduce long-term capital gains which would be subject to federal taxes.

Businesses Opening in Columbus, Norcross

Two digital imaging companies have announced plans to bring several hundred jobs to Georgia over the next few years.

YesVideo is hiring 300 people for a regional plant set to open in Norcross in Gwinnett County next month.

The Santa Clara, California-based firm converts home movies and videos to DVDs and other digital formats.

Steven Bush is the city's economic development manager. He says the jobs are quality positions:

"They are going to be a lot of tech jobs; a lot of jobs that require some training.”

Bush says salaries will be in the mid-40's. He also notes that the conversion service is available at 30,000 retail locations, including Walgreens, CVS and Costco.

The firm is the second high-tech company to open its doors in Norcross recently: Solar powercell maker Suneva opened a $75 million dollar plant in Norcross late last year.

Meanwhile, in west Georgia, Kodak is adding on a third production line at their Columbus plant.

A Kodak spokesperson says they'll add another 50 spots to the current 250 jobs over the next three years.

The plant makes digital printing plates for the packaging and printing industry.

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Delta to trim future US, international capacity

(AP Photo/Al Behrman, File)

Delta Air Lines says in a new regulatory filing that it plans to reduce its planned carrying capacity because demand for seats has slowed down.

Spokeswoman Betsy Talton said Delta still plans to add the 15 new international routes it announced Nov. 12, but the company will continue to monitor performance.

It's unclear if future capacity reductions mean a net reduction in international capacity next year or simply smaller growth. When the new overseas routes were announced, a Delta executive told reporters that overall international capacity in 2009 would be slightly larger than in 2008, while overall domestic capacity would be slightly smaller.

Delta officials say they will give more details about the airline's outlook in early December.

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(AP)

Home Depot earnings take sharp dive

The world’s largest home improvement retailer says its third-quarter profits took a beating at the hands of a dismal U.S. economy.

The Home Depot reports profits were down 31-percent for the most recent three month period. But despite the fall, the 45 cents earnings-per-share beat analysts’ expectations by seven cents a share.

The retailer reported sales at stores open for at least a year were down over eight-percent.

The Atlanta-based chain joins North Carolina-based rival Lowe’s in reporting big earnings drop-offs for the most recent quarter.

Home Depot chief executive officer Frank Blake says he expects the housing and home improvement market to remain challenging going forward. The chain has recently been focusing efforts on improving service across its 2,000 store chain.

Credit crisis hammers Aflac, Synovus 3Q numbers

Columbus-based Aflac Insurance and Synovus Financial Services are both reeling from the nationwide economic crisis.

Just-released third-quarter statements by both firms showed massive losses in investments and income from the same period last year.

Synovus's net income nosedived 85-percent to $66 million dollars over loan losses and defaulted mortgages.

Similarly, Aflac's net income tumbled 76-percent to $100 million dollars.

The insurer had close to 400 million dollars in shares in Lehman Brothers, Washington Mutual and Ford Motor Company, among others.

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Delta shareholders okay NWA merger

Delta Air Lines shareholders give the go-ahead to the company's purchase of Northwest Airlines by approving the issuance of new stock as part of the transaction.

Thursday's vote came at a meeting near Atlanta. Earlier in the day, Northwest shareholders approved the combination during a meeting in New York.

The deal still requires Justice Department approval.

Meanwhile, A top official of the machinists' union said Thursday that customers, employees and shareholders of Northwest and Delta will be hurt if the two airlines complete their deal to create the world's largest carrier.

Robert Roach Jr. says the two airlines have different corporate cultures and mismatched aircraft fleets.

Shareholders of both airlines voted Thursday to approve the combination.

Roach says combining the two work forces would require solving issues including workers' union representation, job security, pensions and seniority at the combined company.

He says mergers won't help troubled airlines -- most U.S. carriers lost money in the first half of this year as they battled high fuel costs -- and he called for more government regulation of the industry.

(The Associated Press)

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Georgia, Michigan tussle over 'Priceline' callcenter

(Courtesy)

Columbus, Georgia and Wyoming, Michigan are in competition for a new call-center for Priceline, an Internet-based travel site.

A Columbus Chamber of Commerce official confirmed the report, but was unable to provide further details, saying that the negotiations were still in progress.

Columbus is reportedly offering an $11 million incentive package to the Norwalk, Conn.-based company, according to the Grand Rapids Press. The Chamber of Commerce says the amount offered in the package was lower, but could not confirm the sum.

Officials say such a center, which would handle online flight, hotel and car-rental bookings would create upwards of 400 jobs, although the Chamber of Commerce would not confirm that number.

The Michigan Economic Growth Authority on Tuesday approved a state tax credit worth up to $3.9 million over seven years to encourage the Norwalk, Conn., company to open a call center in Wyoming.

The Grand Rapids suburb is proposing an additional seven-year property tax abatement worth $1.1 million. The Michigan Economic Development Corp. has offered up to $200,000 in job training assistance. according to the Michigan newspaper.

The Chamber of Commerce and Priceline spokesman Brian Ek say a final decision is expected early this summer.

Click here for more GPB News coverage of economic development issues in Georgia.

(With The Associated Press)

Aflac shareholders vote Amos over $12M package

Shareholders of health and disability insurer Aflac have approved more than $12 million in compensation for Chairman and Chief Executive Dan Amos in the first stockholder vote on executive pay by a major U.S. company.

Aflac, which sells insurance in the USA and Japan, says about 93% of the votes approved the 2007 compensation package of the company's top five executives. About 2.5% were against it.

The "say on pay" announcement came Monday before a crowd of about 200 attending the annual shareholder meeting at the Columbus Museum.

The Associated Press reported two months ago that Amos received nearly $12 million in compensation last year, when the company's stock climbed to all-time highs. Aflac spokeswoman Laura Kane said Monday's vote included retirement benefits not included in the AP's calculation, bringing the total to $14.83 million.

Dan Amos (Courtesy Aflac)

Aflac, whose quacking duck television commercials have made it practically a household name, was founded in 1955 by Amos' father, Paul Amos, and Paul's brothers John and Bill. Dan Amos became CEO in 1990.

The Aflac board voted in February 2007 to give shareholders an advisory "say on pay" vote.
The insurer is one of several companies, including Verizon and Blockbuster, that have agreed to give shareholders a say in determining executive compensation.

"We were the first to agree to the vote and the first to actually hold it," Kane said.

Addressing the shareholders at the meeting, Amos said:

"With only two-and-a-half percent voting no, I am pleased that we are in the confidence and trust of the overwhelming majority of our shareholders.

"I want to assure you that our goal at Aflac has always been to be responsive to shareholders and to bring you value, and I thank you for your support," he said.

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(The Associated Press)