Tuesday, May 6, 2008
New SBT column features 'Dispatches From China'
Today marks the debut of a new Small Business Times online column titled "Dispatches From China." The new column is written by Einar Tangen, a former Milwaukee business executive who now lives in Beijing, China, where he advises the Heilongjiang Province on its technology valuations and acquisitions. Tangen previously served as the chairman of Wisconsin's International Trade Council and is a former advisor to KOTRA (the Korean government's direct foreign investment recruitment agency. He also served as president of the Historic Third Ward Association in Milwaukee. Tangen's new column will provide insight for Wisconsin companies interested in doing business in China.
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AirTran adds more flights from Milwaukee to the coasts
AirTran Airways is ratcheting up its competition with Midwest Airlines for dominance of the Milwaukee market with several more additional nonstop flights to both coasts.
AirTran, a subsidiary of Orlando, Fla.-based AirTran Holdings Inc., today announced the additional flights from General Mitchell International Airport in Milwaukee. AirTran hired former Milwaukee Brewers slugger Gorman Thomas to throw out a ceremonial "first pitch" to officially kick off the new flights.
The flight expansion began May 3 with nonstop service from Milwaukee to Ronald Reagan Washington National Airport in Washington, D.C., and continues today with the start of nonstop seasonal flights to the following destinations: Los Angeles International Airport in Los Angeles, Calif.; Seattle-Tacoma International Airport in Seattle, Wash.; San Francisco International Airport in San Francisco, Calif.; and LaGuardia Airport in New York, N.Y.
The expansion line-up will continue May 21 with the start of nonstop service to: Logan International Airport in Boston, Mass.; San Diego International Airport in San Diego; and Las Vegas McCarran International Airport in Las Vegas, Nev.
With the addition of these new flights, AirTran Airways will provide 20 peak day departures to 13 nonstop destinations from Milwaukee. All routes will be served with AirTran's Boeing 737-700 and Boeing 717-200 aircraft.
AirTran Airways also announced a new partnership with the YMCA of Metropolitan Milwaukee to sponsor all of the organization's summer sports leagues.
"We're excited to provide southeast Wisconsin with these additional flights from coast to coast," said Tad Hutcheson, AirTran Airways vice president of marketing and sales. "Our airline offers Milwaukee residents both low fares and high quality customer service, including Business Class on every flight and complimentary XM Satellite Radio at every seat, so Brewers fans can listen to the game in the air. With the addition of our new nonstop flights, AirTran Airways will not only increase the options available to local residents, but will help bring more visitors to the City of Festivals this summer."
For additional information about the flights, visit www.airtran.com.
Pewaukee company wins Fittest Execs Corporate Wellness Award
The workout routines used by the winners of the 2008 Small Business Times Fittest Execs competition run the gamut, ranging from spinning, weightlifting, walking, power-walking, swimming, biking, skiing, Pilates, aerobics, running, jogging, ballroom dancing, stretching, tennis, yoga, martial arts, volleyball, calisthenics, boxing, kickboxing and stair climbing to basketball.
The winners were announced at the conclusion of the BizTech Expo at Wisconsin State Fair Park last week.
The Fittest Execs Corporate Wellness Award was created this year to salute a local company that devotes the most resources to developing fitness and wellness among its employees. The winner of the award this year was Outsource Inc. of Pewaukee. OutSource Inc. built a compete workout for its 65 employees. The room includes weights, a recumbent bicycle, a treadmill, an elliptical machine, an incline weight bench and a shower facility.
Since May 2006, the company has offered daily classes that range from an abdominal-oriented workout to Zumba, a Latin-influenced aerobics workout. Employees can also get a half-hour personal training sessions with the fitness trainer for just $10 per session. A nutritionist meets with employees regularly. OutSource also offers a company-paid smoking cessation program.
In addition, the company offers contests that challenge workers to lose weight or eliminate fast food for one month. The physical results are measurable, as the average employee has lost 8 pounds and 4.4 percent body fat.
The award was accepted by Lori Zindl, chief executive officer of Outsource Inc.
The Fittest Execs program also saluted several individual winners who finished at the top of their categories, as evaluated by the scores of their fitness and wellness tests conducted by Wisconsin Athletic Club and Medical Associates Health Centers.
The winner of the Most Improved category was Chris Olson, president of T-Lon Products Inc. in Hartland. Olson's fitness routine includes playing basketball while training for the summer triathlon and biathlon season. Most of his workouts happen over the noon hour.
The winner of the Female Under 50 category is Brigette Breitenbach, principal at Breitenbach Weiss Inc. in Milwaukee. Breitenbach's routine includes cardio and weight training. She is in the gym early in the morning six or seven days a week. Breitenbach says she believes employers should offer flexible work schedules to allow their staff to get physically fit.
The winner of the Female Over 50 category is Kathleen Pritchard, president of the Village of Whitefish Bay. Pritchard's fitness routine includes spinning, strength training, walking and outdoor cycling. She gets up for her spinning class at 6 a.m. three or four days a week. She says fitness gives her better focus and concentration on the job and gives her more energy at work and at home.
The winner of the Male Under 50 category Stephen Ring, market manager of Unum in Elm Grove. Ring's fitness routine includes stationary biking, elliptical, weights and a workout video. In the past 18 months, he has lost 50 pounds.
The winner of Male Over 50 category is John Zinzow, vice president and owner of Benefit Concepts Inc. in Whitewater. Zinzow's fitness routine includes cross country skiing, running, biking and weightlifting.
More than 100 people competed in the Fittest Execs program. To view their profiles and read more about exercise routines, visit www.biztimes.com/fit.
Harley plans July opening for museum
The Harley-Davidson Museum will open its doors to the public in Milwaukee on Saturday, July 12.
Grand Opening festivities will kick off with a "Harley-Davidson-style" ceremony at 10 a.m. and will continue throughout the weekend.
The 130,000-square-foot museum in Milwaukee's Menomonee River Valley will add a new dimension to the Harley-Davidson experience. Exhibits will tell the stories of the people, culture, products and history of Harley-Davidson.
The museum, which will feature 20-acre park-like grounds, the Museum Restaurant and Café and a retail store, will be open 24 hours a day.
Tickets for the museum's grand opening weekend and other dates go on sale online at www.h-dmuseum.com/tickets on Tuesday, May 20.
Marcus to replace Eastgate Cinema with new theater in Madison
Marcus Theatres today announced that it plans to build a new theatre in the area known as "The Crossing" at U.S. Highway 151 and Nelson Road on the east side of Madison.
The 26-acre site will accommodate the new theatre and any future expansion, as well as a variety of synergistic mixed-uses on the balance of the land. The company also has signed an agreement to sell the nearby Eastgate Cinema property, located at 5202 High Crossing Road, to a Madison-based real estate company. The theatre will be razed and the site redeveloped for other use.
"Marcus Theatres plans to build an entirely new state-of-the-art theatre and entertainment complex on the east side of Madison to replace the Eastgate," said Bruce Olson, president of Marcus Theatres. "Expansion at the current site was possible, but after carefully evaluating all of our options, relocating and building a new theatre that includes other exciting entertainment and dining options made the most sense. We are currently in the process of due diligence and planning. The opening of our new location will coincide with the closing of the Eastgate, which could be sometime in late 2008 or early 2009. Following approvals with city planning, we expect construction could begin in 2008."
The new 2,900-seat theater will feature stadium-seating auditoriums with digital sound and plush, adjustable back memory foam seats. To enhance the moviegoing experience even further, one of the auditoriums will include our signature 72-foot-wide UltraScreen, and another auditorium will feature Digital 3D technology, allowing moviegoers to experience the vibrant quality and lifelike clarity of 3D images, Olson added.
"This new complex will truly be an entertainment destination. Not only will we show the best Hollywood films, but among other features currently under consideration are in-theatre dining, a family entertainment center, a movie-themed sports restaurant and bar and outdoor patio," Olson said.
Olson said Marcus Theatres also plans to eventually develop another theater complex in the Tradewinds Center, just off Highway 151 at Stoughton Road.
Marcus Theatres is a division of Milwaukee-based Marcus Corp.
Hartlund will lead Brewers Enterprises
Jason Hartlund was promoted today from his corporate marketing position with the Milwaukee Brewers to the new position of vice president of Brewers Enterprises.
Created in 2006, Brewers Enterprises develops sales and marketing strategies to attract a broad mix of events in and around Miller Park.
Hartlund, 35, will lead Brewers Enterprises and will oversee the use of Miller Park for non-game day activities. Brewers Enterprises can accommodate groups ranging in size from 15 to over 40,000 persons through any of its five meeting rooms, Gehl Club, Metavante Club, various party suites and the ballpark itself.
The announcement of Hartlund's promotion was made today by Rick Schlesinger, Milwaukee Brewers executive vice president of business operations.
"Jason has done tremendous work for our corporate marketing department in developing relationships with new partners," Schlesinger said. "This is a great opportunity for Jason to lead the organization in our efforts to utilize Miller Park for events beyond Brewers Baseball."
"I have enjoyed my time with the Brewers, and I look forward to my new role within the organization," Hartlund said. "Miller Park is a venue that has the potential to be a destination for hosting various special events, concerts and sporting events."
Great Wolf CEO to resign as pressure mounts
As the losses continue to pile up for Great Wolf Resorts Inc., the Madison-based developer of indoor waterpark resorts, the company announced today that John Emery will resign as chief executive officer and a director of the firm.
The announcement was made near the bottom of a press release about the company's quarterly earnings. Great Wolf lost $2.3 million in the first quarter.
Emery will resign rather than face a contested board election at Great Wolf's annual meeting on Wednesday, May 28. The company is facing increasing pressure from Hovde Capital Advisors LLC, which controls a 5.6-percent stake in Great Wolf.
Emery said he is leaving the company to pursue an opportunity in the private equity sector that will allow him to spend the majority of his time at his home in Virginia after more than four years of weekly commuting between Virginia and Great Wolf's headquarters in Madison.
"With the company’s continued strong operating results and the recent successful resort openings, I am comfortable choosing this time to make my transition," Emery said. "We have a strong management team in place, headed up by Kim Schaefer, our chief operating officer; Jim Calder, our chief financial officer; and Hernan Martinez, our president of development."
Great Wolf said its board will appoint Randy Churchey, a director of the company, as interim CEO.
Great Wolf board chairman Joe Vittoria said, "We thank John for his more than four years of leadership and service to the company and wish him the best of luck in all his future endeavors. Randy has been a director of the company since our IPO in 2004 and has extensive public company experience, formerly serving as president and chief executive officer of RFS Hotel Investors Inc. We believe Randy will provide solid leadership on an interim basis as we begin our search for a permanent chief executive officer.”
BizTimes Money: Wisconsin Entrepreneurs' Conference
"All Good Things Start Small" will be the theme of this year's Wisconsin Entrepreneurs' Conference, to be held June 9-10 in Milwaukee. Read more in the latest edition of the BizTimes Money weekly bulletin.
CNH Capital expands into Puerto Rico
As part of a strategic growth initiative aimed at developing new markets for its products and services, CNH Capital, the financial services business of Racine-based CNH Global N.V., today announced that it is now serving equipment dealerships and their customers in Puerto Rico.
CNH Global manufactures agricultural and construction equipment. CNH Capital's equipment financing products will be sold through the agricultural and construction equipment dealerships that represent the CNH family of brands in Puerto Rico, including New Holland, New Holland Construction and Case Construction.
"Equipment is a major investment for dealers and their customers," said Brett Davis, senior director of CNH Capital Ag Financial Solutions. "By establishing a presence in Puerto Rico, we can now offer equipment financing that makes investing in our equipment brands both easy and affordable."
CNH Capital's initial product offering in Puerto Rico includes wholesale and retail equipment financing.
CNH Global is a majority-owned subsidiary of Fiat Group.
Joy Global says charges will affect earnings
Joy Global Inc., a Milwaukee mining equipment manufacturer, today updated its fiscal 2008 guidance to reflect higher purchase accounting charges related to the acquisition of Continental Global Inc. and charges associated with the expected early termination of a maintenance and repair contract.
The charges will adversely affect the company's earnings per share guidance for full-year fiscal 2008.
Preliminary asset valuations associated with the purchase accounting of Continental Global, Inc. are higher than previously estimated. The additional charges resulting from these higher valuations are expected to reduce earnings per share by 5 to 6 cents for the full year, with the majority coming in the second fiscal quarter.
The maintenance and repair contract costs are expected to adversely impact earnings per share by 14 to 17 cents per share for the fiscal year.
Mike Sutherlin, president and chief executive officer of Joy Global, said, "The maintenance and repair contract is unique since it is associated with the first sale of a new product, and its resolution will enhance our earnings in future years. The increased purchase accounting charges for Continental will impact reported earnings but do not affect the underlying earnings ability of this business."
New television show to celebrate Wisconsin's culinary delights
"Wisconsin Foodie," a new television show devoted to profiling local food treasures and unique travel destinations, will debut on Saturday, May 10, at noon on WISN-TV - Channel 12.
"The goal of our show is to be a leading voice for our state's greatest asset - food," said Arthur Ircink, executive producer of the show. "No other local show will enhance and promote the food and restaurant industry like 'Wisconsin Foodie.'"
Each week, "Wisconsin Foodie" will travel across Wisconsin, featuring those with the same passion for food as the show has – from local purveyors to small-town diners and upscale restaurants.
"We plan to show you where your food comes from and how it gets from 'out there' to on your plate," said Kyle Cherek, host of the show. "My passion for the food culture in Wisconsin is never-ending, and I plan to bring that energy and enthusiasm to the show each and every week for our viewers to experience."
Kohler acquires upscale Mark David brand
Kohler Co. has acquired Mark David, a High Point, N.C.-based provider of sourced case goods and upholstered seating to the hospitality industry.
Mark David joins the Kohler Interiors Group, which is comprised of the Baker and McGuire brands of fine furnishings, Ann Sacks tile and stone, and Kallista, a luxury plumbing brand.
Mark David started in 1990 as a privately held, family-owned company, and has become a well-recognized supplier of case goods and seating to many of the four- and five-star hospitality properties throughout the United States. The company provides its hospitality customers a mix of classic, modern, casual, transitional and outdoor options for both guest rooms and public areas.
"Mark David provides a strong complement to our existing portfolio of premier home fashion brands. We intend to leverage Mark David's expertise in the hospitality segment, as well as the brand's focus on product value and processes that support outstanding customer response," said Rachel Kohler, president of the Kohler Interiors Group. "All brands in the Kohler Interiors Group will be enhanced as we combine our existing depth of design and product resources with Mark David's ability to serve a highly demanding
hospitality clientele."
Mark Norcross, the founder of Mark David, will serve as president for the brand, reporting to Rachel Kohler.
"We're excited to be joining forces with Kohler," Norcross said. "The collective strength of the KOHLER brands in design, furniture, plumbing and tile that Kohler offers the hospitality industry on a global scale is impressive. We're all poised to be flexible and responsive to our hospitality customers."
State headlines: GM didn't live up to promises to state
General Motors Corp.'s Janesville plant employs far fewer workers than the 3,300 hourly jobs that the company promised three years ago when accepting state training grants totaling $10.1 million. And, with last week's announcement that GM will cut one shift of production in Janesville and eliminate at least 750 hourly jobs, there's little likelihood that the local plant will have 3,300 on its payroll anytime soon, if ever again. Meanwhile, another Janesville GM supplier is planning layoffs. Lear Corp. in Janesville is expected to lay off more than 275 people in Janesville because of the production cuts at GM. The move will eliminate more than a third of Lear's hourly workforce of 670. Logistic Services Inc., another GM supplier in Janesville, previously announced that it will lay off 132 employees. Read more in SBT's daily roundup of headlines from newspapers across the state at www.biztimes.com/#news.
Milwaukee Biz Blog: County has mass transit crisis
Milwaukee needs to take action now to address its mass transit crisis, according to Milwaukee County Board Chairman Lee Holloway. Read more in today's Milwaukee Biz Blog.
Stock market falls as oil prices soar to new peak
Local stocks sank with the broader market today on the news that crude oil prices soared to an all-time high of $122 per barrel. The largest local decliners this morning were Bucyrus International Inc. (down $1.86 to $133.18), Joy Global Inc. (down $1.84 to $76.80) and Manpower Inc. (down $1.53 to $66.80). The largest local advancers this morning were Harley-Davidson Inc. (up 28 cents to $38.97) and Marcus Corp. (up 28 cents to $17.43). The BizTimes Stock Index was created by Small Business Times and is monitored by North Shore Bank. The index, which measures the stock values of publicly held companies based in southeastern Wisconsin, is updated daily and can be viewed at www.biztimes.com.
Knetter among candidates for UW chancellor job
Economist Michael Knetter, Ph.D., who speaks annually at the Northern Trust Economic Trends Breakfast presented by Small Business Times, is among at least four internal candidates who have been nominated to apply to be the next chancellor at the University of Wisconsin in Madison.
Knetter has been the dean of UW School of Business and a professor of finance, investment and banking since July 2002.
Sources told SBT this week that Knetter was interviewed last week for the position. The other internal UW candidates for the position include: Patrick Farrell, Ph.D., provost and vice chancellor for academic affairs; Richard Moss, Ph.D., professor and chair of the Department of Physiology; and Gary Sandefur, Ph.D., dean of the College of Letters and Science.
The UW search committee will announce the five finalists for the chancellor's job on Wednesday, sources told SBT.
The 23-member committee was formed in January to conduct a national search for candidates to succeed John Wiley, who announced he will retire as UW chancellor in September. The committee includes a diverse collection of faculty, community members, alumni and students.
Knetter drew national attention earlier this year when he convinced a small group of prominent alumni to donate a total of $85 million to preserve the UW School of Business name for at least 20 years. During that time, the school will not be named for a single donor or entity.
The unprecedented naming partnership was the first of its kind received by a major U.S. business school. Conventional business school naming gifts adopt the name of a single donor in perpetuity. By preserving the Wisconsin name for 20 years, this gift leaves open the option of future naming gifts.
Knetter provides a macroeconomic outlook each January at the Northern Trust Economic Trends Breakfast in Milwaukee. To view a webcast of his presentation earlier this year, click here.
UW System president Kevin Reilly said a Special Regent Committee plans to conduct interviews of the finalists later this month, and the full UW Board of Regents is expected to choose a new chancellor at its meeting on Friday, June 6.



