VIDEO: Japanese Earthquake Rattles American Car Industry

March 31, 2011 by · Comments Off 

By Bridget Bennett
brekow@smu.edu

VIDEO: Japan Impact from SMUDailyMustang.com on Vimeo.

The effects of the tsunami and earthquake in Japan are being felt throughout the American auto industry.

Toyota announced that it’s U.S. manufacturing plants are preparing for a possible shutdown. More than 70 percent of their vehicles are produced in the U.S.; however, small component parts made in Japan are needed to continue production.

Foreign-based auto companies are not alone in this crunch.

American auto producers Ford and General Motors depend on small component parts like paint pigments and computer chips that are manufactured in Japan.

The Daily Update: Thursday, March 24

March 24, 2011 by · Comments Off 

The disaster in Japan is already having an affect on car factories in the U.S., one of Hollywood’s most legendary stars is dead and the Mustangs take on the Santa Clara Broncos Friday as SMU hosts the Final Four this weekend. All this and more on today’s Daily Update.

The Daily Update: Thursday, March 24 from SMUDailyMustang.com on Vimeo.

Daily Update: Thursday, Oct. 21

October 21, 2010 by · Comments Off 

The Daily Update: Thursday, Oct. 21 from SMUDailyMustang.com on Vimeo.

Today’s Daily Update fills you in on why Troy Aikman was on the Katy Trail this week, which communications entrepreneurs are coming to campus on Friday and what to expect for Homecoming.

Belo Corporation Holds on Tight Through Advertising Slump

May 3, 2010 by · Comments Off 

By Taylor St. Eve
tsteve@smu.edu

The local Texas television company, the Belo Corporation, is slowly climbing back to the top after being hit hard by the recession.

The company posted a net profit of $5.6 million in the fourth quarter, up from a $33 million loss a year ago, even though revenues declined 19.5 percent in the fourth quarter.

Paul Fry, vice president of investor relations for Belo Corp, said the company has seen some downturn from the recession in regards to advertising spending.

“We’re looking ahead in the future to keep improving our growth,” says Fry.

The decline in revenues is in direct correlation with advertising sales being down in 2009. When companies are not spending money on advertising, Belo Corp is adversely affected.

About 90 percent of Belo Corp’s revenues come from advertising, and 40 percent of that is from automobile advertising. With GM and Chrysler regaining momentum and Toyota fixing its manufacturing hiccups, there’s substantial growth to go around.

In the fourth quarter, Belo’s auto advertising declined only nine percent, which was a significant improvement from the third quarter decline of 36 percent.

TV advertising revenue is considerably down across the U.S. In 2009, TV advertising hit $41 billion, compared to $52 billion in 2008. This is an estimated 21 percent decline over one year.

In 2010, TV advertising has been on the rise due to sporting event coverage. Advertising in January climbed nine percent, while February continued to improve with the coverage of the Olympics on NBC and the Super Bowl on CBS.

The recession has forced companies to cut costs and reduce expenses to make their businesses more efficient and profitable. Belo Corp has reduced its capital expenditures $15 million in order to preserve cash. The company has become more profitable since reducing expenses.

While managing through one of the weakest television advertising environments in recent history as a result of the recession, Belo Corp’s stock has risen 7.96 percent, or 88 percent compared to 2009. During the same period, the S&P 500 went from 832 to 1207, an increase of 45 percent.

Belo Corp is the eighth-largest operator of TV stations in the U.S. It owns and operates 20 TV stations in 15 markets, nine of which rank in the top 25. Those 20 stations reach roughly 14 percent of total U.S. households. Among the top station affiliates are ABC, CBS, NBC and FOX.

Dunia Shive, president and chief executive officer, said in the company’s recent fourth quarter earnings release that Belo has enjoyed strong performances throughout 2009 and is looking towards the future for more strength.

JP Morgan Chase analysts expect to see revenues increase 12 percent in 2010, an election year in which Belo should pick up political advertising revenues of $47 million. Analysts also expect auto advertising to rise 40 percent in the upcoming first quarter.

The Daily Update: Friday, April 9

April 9, 2010 by · Comments Off 

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The Daily Update: Wednesday, April 7

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The Daily Update: Tuesday, March 16

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