PBT Transcript (5/08/2008)

MIKE ARMSTRONG: Coming up, more red ink for Donald Trump’s casinos. Competition from nearby states continues to hurt their business. Executives voluntarily taking a pay cut? We’ll tell you about the local firm asking its bosses to do just that. An early Easter, humdrum fashions, high gas prices—retailers have complained about them all. So how do you think their sales were for April? We’ve got the results. Philadelphia Business Today starts now.

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MIKE ARMSTRONG: Trump Entertainment Resorts is reporting lower revenue and higher losses for its first quarter. The Atlantic City operator cites increased competition from gambling operations in Pennsylvania and New York, as the big reason for the decline in revenues. But three years out of bankruptcy, Trump Entertainment is still unprofitable. It lost nearly $19 million in the first quarter. High debt has pushed the Trump Taj Mahal and the two other Trump casinos into bankruptcy twice over the last 15 years. Trump and Atlantic City certainly aren’t alone in their troubles. Gambling and hotel occupancy is off in Las Vegas, too. MGM Mirage’s earnings were down 30%. Wynn Resorts and Las Vegas Sands also had disappointing earnings.

Bad news for a small Plymouth Meeting biotech firm. Genaera says it will cut its workforce by 34% and trim spending. The company only had 24 employees at the end of 2007. It’s trying to conserve cash to focus on compounds to treat diabetes and asthma. It had about $17 million in cash as of March 31, and the company says that’s enough to get it through the end of June, 2009. In a welcome sign, executives are being asked to share the pain. The company wants them to voluntarily give up 10% of their base compensation as of June 1^st. And Genaera wants them to forfeit all salary increases and bonuses for 2008.

Better than expected. That’s the word from local retailer about April sales. Trendy Urban Outfitters said same-store sales rose 10% for its first quarter. Maternity wear chain Mothers Work saw a 2.3% rise in April sales. Bon-Ton Stores, based in York, said sales for its department stores fell about 1%. Is this a sign that retail is bouncing back? Too soon to tell. The sector has been suffering for over a year, and one month, however positive, doesn’t make a trend. The real question is, as Americans get their economic stimulus checks, will they go shopping?

That’s it for today. At the Inquirer, I’m Mike Armstrong for Philadelphia Business Today.

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