BizTimes Daily

Friday, June 13, 2008

Exclusives in this week's SBT

Jerry Jendusa founded Emteq Inc. in the basement of his home 12 years ago. Today, New Berlin-based Emteq is a global company with projected revenues of $70 million for 2008, and the firm shows no signs of slowing down. Read more about this aerospace parts supplier's ascension in the cover story of the print edition of this week's Small Business Times. Other highlights of this week's issue include Dispatches From China, the Commercial Real Estate Spotlight and some insights for developing effective web sites and electronic newsletters. This week's SBT also includes profiles of the winners of the Waukesha County Chamber of Commerce Top Ten Small Businesses of the Year.

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Midwest Airlines hires consultant to create restructuring plan

Facing record prices for jet fuel and increasingly stiff competition, Midwest Air Partners LLC, the parent company of Midwest Airlines, has hired a consultant to work on a comprehensive corporate restructuring plan for the Oak Creek-based company.
Midwest has hired Seabury APG, a Vienna, Va.-based aviation consulting company, to analyze its predicament and make recommendations for its future, Midwest spokesman Michael Brophy confirmed today.
Midwest chairman and chief executive officer Timothy Hoeksema acknowledged the hiring of Seabury APG in a memo to employees.
Brophy said the analysis will take several weeks.
"Just like every airline in the country, we have to take a look at everything," Brophy said. "The price of fuel has been just so staggering on our business."
Brophy said the decision to seek a restructuring plan was "self-initiated" by Hoeksema and the company's leadership team and was not imposed by investors at Fort Worth-based TPG Capital, which owns a majority share of Midwest.
In April, Midwest said it will eliminate 109 jobs, or 3.5-percent of its workforce.
In addition to soaring fuel costs, Midwest is dealing with low-fare competition from AirTran Airlines, which is dramatically increasing its numbers of direct flights to and from Milwaukee.
AirTran had tried unsuccessfully to acquire Midwest last year.
Small Business Times executive Steve Jagler had written about the increasing turbulence Midwest is facing in a Milwaukee Biz Blog last week.

Yount launches brand of lemonade for charities

Former Milwaukee Brewers star and baseball hall of famer Robin Yount is launching his own brand of lemonade - Robinade Old School Lemonade - to be sold throughout Wisconsin and raise funds for children's charities.
The chilled lemonade is produced and bottled at Citrus Systems in Madison from all-natural ingredients.
A percentage of the profits will go directly to Wisconsin children's charities, including the MACC Fund (Midwest Athletes Against Childhood Cancer).
"Throughout his baseball career, Robin has been a strong supporter of our organization," said Jon McGlocklin, president of the MACC Fund. "We are deeply honored, inspired and appreciative of his generous spirit, which continues today and will benefit so many children and their families long into the future."
"My goal is to present the MACC Fund with a significantly large amount of money every year," Yount said. "Robinade is as all-American as baseball and will benefit kids all over Wisconsin. I'm thrilled that old and new fans can share in a refreshing experience this summer with Robinade."
Robinade is available in 16-ounce and half-gallon containers and is sold at Pick 'n Save, Sentry Foods, Woodman's and participating convenience stores. It is also available at participating George Webb restaurants.
For additional information, visit www.robinade.org.

Marcus to upgrade to 3D technology in theaters

Marcus Theatres, a division of The Marcus Corp., today announced that moviegoers will soon be able to experience digital 3D movies at 14 Marcus Theatres locations throughout the Midwest.
The company already operates two digital 3D systems in New Berlin and Madison and plans to install 12 new digital 3D systems in time for the July 11 opening of New Line Cinema's 3D feature film, "Journey to the Center of the Earth."
The other Wisconsin cinemas to be updated with the 3D systems will be the Bay Park Cinema in Green Bay, the Marcus Cinema at the Renaissance in Sturtevant, the Marcus Majestic Cinema in Brookfield and the Menomonee Falls Cinema in Menomonee Falls.
"Digital 3D is a new way that audiences can engage their senses to experience movies as they have never been able to before. The power of this new entertainment can be seen in the incredible success of 'Hannah Montana/Miley Cyrus: Best of Both Worlds Concert' and films such as 'Nightmare Before Christmas' and 'Beowulf' in 3D," said Bruce Olson, president of Milwaukee-based Marcus Theatres. "As a result of this success and the unique experience it offers guests, studios have geared up to bring moviegoers an increasing number of 3D features. Upcoming titles include 'Ice Age 3: Dawn of the Dinosaurs,' 'Toy Story 3' and 'Avatar,' James Cameron's first feature since 'Titanic.' DreamWorks Animation also recently announced that all their new films, including 'Shrek Goes Fourth,' will be released in 3D."
"Digital 3D technology is light years ahead of traditional 35mm film 3D processes. Digital 3D uses a digital cinema projector to very rapidly switch images and color schemes between the right and left eyes to create an incredibly realistic 3D image. That just is not possible with film. This technology is truly amazing," said Mark Collins, director of projection technologies for Marcus Theatres.
"At all 14 of our digital 3D locations, audiences will be able to enjoy the vibrant quality and lifelike clarity of 3D images using the newest technology available. Marcus Theatres is always looking for opportunities to create the best entertainment experience for our guests, and we are excited to bring this incredible 3D technology to moviegoers throughout the Midwest," Olson said.
Ballantyne of Omaha, Inc. and XpanD of Pasadena, Calif. will provide equipment and glasses and Dolby will provide the digital cinema servers for the new 3D systems.

Wausau Paper to upgrade Wisconsin mill

Wausau Paper announced that its board of directors has approved a $15 million capital investment that will optimize fiber handling and stock blending systems at its mill in Brokaw, Wis.
An automated pulp bale handling system is expected to be operational by the end of 2008, with the balance of the system scheduled for startup in the second quarter of 2009.
"We are pleased to announce the next step of our Printing & Writing segment's three part profit recovery plan initially outlined in the fourth quarter of last year. The first phase of our recovery plan, system capacity reduction, is complete while the second phase of our plan, initiatives to drive growth in higher margin markets, is well underway," said Thomas Howatt, president and chief executive officer of Mosinee-based Wausau Paper. "Today's announcement represents the first of several potential investments intended to significantly improve the cost structure of the business. Project economics significantly exceed our target 17 percent internal rate of return and will substantially improve the capabilities and cost competitiveness of our Brokaw mill."
"This capital investment, which is part of the third phase of our profit recovery plan, will significantly improve stock preparation and blending at our Brokaw facility," said Daniel Trettin, Wausau Paper's senior vice president of printing and writing. "The technology we plan to use with this project is proven and will significantly improve the operational stability of our paper machines and reduce labor costs. The operating performance improvement to be achieved from this investment is critical to returning this facility and our Printing & Writing business to acceptable levels of profitability."

Another law firm files class-action suit against MGIC

New York-based Stull, Stull & Brody has filed a class-action lawsuit against Milwaukee-based MGIC Investment Corp., the third law firm to do so in recent weeks.
The lawsuit was filed on behalf of purchasers of MGIC stock between Oct. 12, 2006, and Feb. 12, 2008.
The lawsuit alleges that MGIC issued false and misleading statements regarding the company's business and financial results. As a result, MGIC stock traded at artificially inflated prices, the lawsuit alleges.
New York-based Brualdi Law Firm P.C., filed a class-action lawsuit against MGIC late last week, Ademi & O'Reilly LLP, based in Cudahy, filed the first class-action suit against MGIC in May.

Magnetek settles patent legal dispute

Menomonee Falls-based Magnetek Inc. has entered into a legal settlement over a patent infringement claim by Ole K. Nilssen and Geo Foundation Ltd.
Under the terms of the agreement, Magnetek has agreed to pay $18.75 million to the plaintiffs. Magnetek had appealed an April U.S. District Court award in the case.
Nilssen and Geo asked the court to award them an additional $5.9 million in interest.
"While we were disappointed with the ruling in this case, we felt it was in Magnetek's best interests to put this issue behind us," said Magnetek president and chief executive officer David Reiland. "Although the settlement amount is not insignificant, after making the payment, we remain debt-free with over $12 million in cash available to fund our growth initiatives and ongoing operations."

Some state residents may not get flood coverage

Dozens of Wisconsin communities, including the flood-damaged villages of Lake Delton and La Valle, have dropped out of the federal flood insurance program, leaving residents at risk of millions of dollars in losses, state and federal officials said Thursday. Even if those communities are declared federal disaster areas, residents would not be eligible for federal disaster assistance. However, the roughly 50 Wisconsin communities that dropped out of the program - including those hit by this week's flooding - can petition to get back into the program and the benefits would be retroactive. Read more in SBT's daily roundup of headlines from newspapers across the state at www.biztimes.com/#news.

Weekend preview

Busy readers of the BizTimes Daily can get a jumpstart on the warm weekend ahead by reading the OnMilwaukee.com Weekend Preview. Onmilwaukee.com is a media partner of Small Business Times.

Local stocks soar into weekend

The BizTimes Stock Index recovered 1.68 points to close at 149.94 Thursday, and local stocks rallied again in early morning trading today. The largest local gainers this morning were Joy Global Inc. (up $3.45 to $85.53), Bucyrus International Inc. (up $2.54 to $75.44) and Rockwell Automation Inc. (up $1.44 to $53.87). The largest local decliners this morning were Brady Corp. (down 27 cents to $38.05) and Bank Mutual Corp. (down 14 cents to $10.91). 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.

Milwaukee Biz Blog: The truth about Wisconsin's business climate

Much has been said in recent weeks about Wisconsin's business climate. Wisconsin Technology Council president Tom Still sets the record straight with the facts in today's Milwaukee Biz Blog.

Barrett says Milwaukee's water supply is safe

Milwaukee drinking water has been unaffected by the stormy weather and is safe to drink, Mayor Tom Barrett affirmed today.
Barrett said he called a press conference today to dispel rumors circulating the Internet that cryptosporidium, the bacteria that caused 100 deaths in 1993, has re-contaminated Milwaukee's drinking water due to the flooding caused by the recent weather.
"Let me be completely clear, (the rumors) are false. Milwaukee drinking water is safe," Barrett said. "I am assuring the public that Milwaukee water is continually tested and there is no indication of any public health risk."
The Milwaukee Water Works tests Lake Michigan water entering its two treatment plants, tests is treatment process effectiveness and tests the finished water quality on a continuous basis, Barrett said.
The most recent tests have found Milwaukee's drinking water to be safe and pure, he said.
Carrie Lewis, superintendent of Milwaukee Water Works, added that both the water entering and leaving the two water treatment plants that serve more than 860,000 people in greater Milwaukee have "remained absolutely excellent throughout the stormy weather."
The multiple-step treatment process removes illness-causing microorganisms and contaminants, Barrett said. The water is disinfected with ozone, a highly reactive gas that destroys microorganisms, controls taste and odor and reduces byproducts from chlorine disinfection, he said.
For more information about Milwaukee water, visit www.water.mpw.net.

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