Laundry Men smile as Natural gas prices continue to plummet

Not sure about you but we have enjoyed the thousands in savings this year on the Natural Gas bill!  Stay low!!

 

via The Financial Times

Natural gas prices fall on mild US winter

By Emiko Terazono in London

US natural gas prices suffered their biggest week drop in two-and-a-half years, falling 12.7 per cent, amid forecasts of continuing mild winter weather and booming US production.

Higher than normal temperatures in the east and Midwest of America have depressed US natural gas prices over the past few months, when consumption is supposed to be at its strongest. “There doesn’t seem to be a floor [to the price] right now,” said Laurent Key, natural gas analyst at Société Générale in New York.

Just over half of US households use natural gas for heat, and while January is supposed to be the coldest month of the year, stocks in storage could this month rise as high as 21 per cent more than normal, Mr Key noted.

The mild weather has come as US production has been growing rapidly on the back of the shale boom, caused prompted by the development of resources that were previously uncommercial. According to the US Department of Energy, natural gas output in October, the latest month for which data are available, marked a record high.

Nymex February natural gas futures traded at $2.66 per million British thermal units on Friday, the lowest level since September 2009.

While the downward trend in prices is eventually expected to make it unprofitable to produce natural gas, and lead to production cutbacks, many gas wells also produce higher-value liquids such as petroleum. For some producers, the cost of pumping natural gas is virtually “zero”, according to analysts.

With stocks expected to remain high even if temperatures suddenly turn colder than normal, many analysts expect prices to fall further. “The market fears a collapse in prices below $2 per mBtu, which cannot be ruled out,” noted Barclays Capital.

Amid such bearish sentiment, investor bets on further declines have been rising. The total number of Nymex natural gas futures contracts outstanding, known as open interest, rose to a record 1,115,469 lots on Thursday, up by a third in the past year and 10 per cent in the past week. The combination of rising open interest and falling prices generally indicates that traders and investors have added to their short positions.

However, Anthony Yuen, analyst at Citigroup, cautioned that “a bullish weather report could be a catalyst”, noting positive news could prompt a scramble for investors to cover their positions. The market could also eventually turn as producers cut the number of rigs, said Mr Yuen. The number of rigs deployed to drill for gas has fallen to 791 from a recent peak of 936 last October, according to Baker Hughes, and a continued decline could affect longer-term contracts.

More Signs we're going to a Rent First World

Whirlpool to cut 5,000 jobs to reduce costs

Associated Press

NEW YORK — Appliance maker Whirlpool Corp. plans to cut 5,000 jobs, about 10 percent of its workforce in North America and Europe, as it faces soft demand and higher costs for materials.
The world's biggest appliance maker also on Friday cut its 2011 earnings outlook drastically and reported third-quarter results that missed expectations, hurt by higher costs and a slowdown in emerging markets. Shares fell 12 percent in premarket trading.
The company, whose brands include Maytag and KitchenAid, has been squeezed by soft demand since the recession and rising costs for materials such as steel and copper. Due to its size, Whirlpool's performance provides a window on the economy because it indicates whether consumers are comfortable spending on big-ticket items.
Whirlpool has raised prices to combat higher costs, but demand for items like refrigerators and washing machines remains tight. Whirlpool is also facing discount pressure from competitors.
To offset slowing North American sales, Whirlpool has turned to emerging markets. But the company said Friday that sales have slowed there, too.
Steep costs and the dour global economy are affecting the entire appliance industry. Swedish appliance maker Electrolux said Wednesday that its third-quarter net income fell 39 percent and cut its forecast for demand in North American and Europe for the year
Whirlpool jobs to be cut are mostly in North America and Europe. They include 1,200 salaried positions and the closing of the company's Fort Smith, Ark., plant.
The Fort Smith plant shutdown will affect 884 hourly workers and 90 salaried employees. An additional 800 workers were on layoff from the factory and on a recall list.
Whirlpool will also relocate dishwasher production from Neunkirchen, Germany, to Poland in January 2012.
The company expects the moves will save $400 million by the end of 2013.
Benton Harbor, Mich.-based Whirlpool's third-quarter net income more than doubled to $177 million, or $2.27 per share, from $79 million, or $1.02 per share. Adjusted earnings of $2.35 per share fell short of analyst expectations for $2.73 per share.
Revenue rose 2 percent to $4.63 billion, short of expectations for $4.74 billion.
"Our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs," CEO Jeff Fettig said.
Unit shipments fell in all regions except Asia, where they rose 4 percent.
In North America, revenue fell 2 percent to $2.4 billion, and in Latin America, revenue rose 8 percent to $1.2 billion.
The company now expects 2011 net income will be $4.75 to $5.25 per share. Its prior guidance was net income would be at the low end of a range between $7.25 and $8.25 per share.
Whirlpool's stock fell $7.10, or 11.7 percent, to $53.37 in premarket trading. The stock has already sunk 32 percent this year.
—Copyright 2011 Associated Press

Hello Laundry Dudes

Been away for awhile, but that' why I got into the Laundry biz so I could eventually be completely away from computer screens! Ever notice when you're reading anything whether on the web or your phone the information rolls over your brain like water over river rocks as you skip from one article to the next - you create nothing, your output is zero. That's why we all need to get away and unplug.

Anyhow, it took me over an hour to go through all the recent comments. I answered any I could - keep interacting - it's fun.

Who knew the laundry biz was so sexy.

Swapping Dollar Coins For Bills Could Save $5.5 Billion, GAO Says

When Canada switched to dollar coins, or "loonies," its simply took the country's dollar notes out of circulation. The GAO says the U.S. needs a similar plan.

This switch could mean huge savings for the treasury. The public still has no appetite for coins but the slow switch will start.

Maybe the Government will go to Laundry Cards for everyone?

March is over and it's Boom Time in the Laundry Biz Again

Not sure what happened this year but people said "screw it let's wash everything we own, use the big machines and do it over and over again". For whatever reason, the smashing of 100 pounds of clothes into toploaders (like last year) has ended and we've been having the biggest weekends ever consistently.

Maybe a sign for the overall economy turning?

Laundry Thief or Sexual Predator: What Would You Do?

ABC always stirring sh!t up with their 'what would you do?' show. Most of the stuff they do is over the top (and never seen in the real world). The dramatics this time were played out at a laundromat. Let the good times and video roll... (On another note, have we been seeing a lot of commercials shot in laundromats lately?) Laundromats are becoming the new IT thing - Ha



http://abcnews.go.com/WhatWouldYouDo/laundry-thief-sexual-predator/story?id=13132990

Deep & Random Thoughts

Been out of commission for a few months. You won't believe it but I'll tell you anyhow. A customer at the Mat brought their Yorkshire terrier into the store (no, animals aren't allowed). One day while walking in the front door I didn't see him/her/it, tripped over it and broke my ankle. I've broken this ankle multiple times. Also hit my head which some people think may have helped me long-term. If you're wondering if the dog is OK - screw you. Anyhow, here are some Random Thoughts, because I know you've been waiting:

New Blog Background - The drops of water on the glass for the blog background reminds me of a washer glass door. It does look like that doesn't it? So when you see the background on this blog just think of a 60 pound washer that's just been done (and you've already been paid). Told you I hit my head.


Comments on this blog - I will get to good comments eventually - be patient. Just answered about 20 of them after some time out. Google has made it easier to screen the mountains of spam now so shouldn't take as long as it has. Thanks for them - keep em' coming.

Last year sucked in this biz - Let's face it, last year sucked. I don't need to rehash the fallout of the 2008 crash (people shoving 100 pounds of clothes into 2 machines) but let's face it: last year sucked. The good news...

This year has started off extraordinarily well - As if 1/1/11 started on Steroids, we've been through the roof. Not sure why, but maybe we've all realized the bottom was hit and we can't get worse so let's wash the Sh!t out of those clothes! Again, as predicted, some low-end stores have died off in the last year as well. Feeling good about this coming year.


You should buy the building - If you've been in the biz long enough and want to keep going or are someone just adding another store - buy the building if you can. http://laundrycapitalist.blogspot.com/2007/06/buy-building.html
The property values in the area of a good laundromat would be low enough that the rent you pay in 5 years would most likely buy the building! Random thought...

Stock your display case with Dollar Store Soap & Softener - You can fill your entire display case on the cheap and make back 5-6 times as much. Much more efficient than buying it from some big dealer who will charge you $50 for delivery alone.

Smile - It's good for business http://ezinearticles.com/?A-Business-Tool-With-Real-Power:-Your-Smile!&id=5587779 and you've just made it through the worst economy since the Great Depression. If you're still in business, celebrate it because you've done well.