Circuit City, once the nation’s leading consumer electronics retailer, has reached an agreement with Wattles Capital Management in which three Wattles nominees will be added to the company’s slate of candidates for the board of directors. Also, one Wattles nominee will become a member of the board’s executive committee.

The deal avoids a potentially costly proxy fight between Circuit City and Wattles, which owns 11 million shares of its stock, 6.5 percent of outstanding shares.

In addition, Circuit City announced that it will allow potential suitor Blockbuster Inc. to look at its books and that it has retained New York investment bank Goldman Sachs “to assist the company in exploring strategic alternatives to enhance shareholder value.”

Blockbuster has made a $6 a share takeover offer for Circuit City, but the companies have fussed over access to Circuit City’s books and proof of Blockbuster’s ability to pay for the deal.

In response to a request from Circuit City, Blockbuster now has provided information about its ability to finance the takeover. Blockbuster’s response included a letter from investor Carl Icahn, a Blockbuster director, saying that he is prepared to buy Circuit should Blockbuster’s proposal fall short.

Philip J. Schoonover, the chairman, president and CEO of Circuit City, cautioned observers about reading too much into the company’s actions. The company’s board, he said, still believes in its current turnaround strategy.

“Let me be clear that our decision to allow Blockbuster and Carl Icahn to conduct due diligence should not be taken as an indication that the board has completed its review of the Blockbuster proposal, that the board has taken a position on the company’s value, or that it has settled upon a particular strategic course of action,” he said in a news release.

Jay Johnson of Dominion will take over for retiring Nicholas Chabraja on July 1, 2009.

Johnson retired as U.S. Navy admiral as chief of naval operations in 2000. He then joined Dominion, holding various roles before becoming CEO of Dominion Virginia Power in 2007. Johnson is already a member of General Dynamics’ board of directors. He will become vice chairman of the board on Sept. 2.

“His experience as a successful corporate executive at Dominion and Chief of Naval Operations of the U.S. Navy prepares him to be a successful and effective leader of General Dynamics,” Chabraja said in a statement.

Chabraja will remain on the board until 2010.

Workers arrested came from El Salvador, Guatemala, Honduras, Mexico, Nicaragua and Peru. They could not produce documents showing they could work legally in the U.S.

A spokesman from Turner Construction Co., parent company of the builder of the project, told the Times-Dispatch that the workers who were arrested were employed by subcontractors on the site, and none were employees of Turner.

In a letter to Gov. Timothy M. Kaine, 25 groups said they want an additional $1 billion spent each year on transportation construction and maintenance. The business groups said they would support an increase in the gasoline tax or an increase in the general sales tax of up to 1 percent, or a combination of the two. The state’s sales tax is currently 5 percent.

“We believe the commonwealth’s transportation infrastructure is a critical component of its economic success and the quality of life of all Virginians,” the letter stated.

The organizations said the money should be in addition to fixing the regional transportation plans that were stuck down by the Virginia Supreme Court this year. Those plans would have raised money for Hampton Roads and Northern Virginia through regional taxes.

The letter was signed by the Virginia Chamber of Commerce and organizations representing the construction, real estate and insurance industries. Many regional chambers of commerce also signed.

Kaine is supposed to introduce a transportation plan next week. He is expected to call the General Assembly for a special session to meet on transportation in June.

The company said under the proposal the average residential customer, who uses 1,000-kilowatt-hours per month, would see his or her bill increase $16.61 to $107.20.

Under law, money raised for the fuel costs would go directly to paying energy costs. Dominion would not profit.

“The market prices of fuel used to run our power stations — coal, natural gas, fuel oil and uranium — have risen by more than 200 percent in some cases since fuel rates were last fully aligned with market conditions in 2004,” David A. Heacock, president of Dominion Virginia Power, said in a statement.

Dominion would need approval from the SCC to raise its rates. It last raised them in 2004 by 4 percent because of increased fuel costs.

Dominion has proposed a number of options to mitigate the impact of increased rates on Dominion customers. The company has proposed deferring $697 million of fuel costs, which would be collected over three years starting in 2009.

Dominion has also proposed allowing small businesses and nonprofit organizations equalize payments throughout the year, an option similar to the Budget Billing offered to some residential customers. The company has also said it would make it easier to enroll in Budget Billing.

The company has also agreed to contribute an additional $5 million to its EnergyShare program, which provides emergency grants to residents who need help paying heating and cooling bills. It says it would also work with social services agencies to help promote energy efficiency for senior citizens and low-income customers.

Bernanke said in a speech Monday that the government-chartered companies should raise more capital to aid the housing market, according to Bloomberg News. Bernanke warned that the rising foreclosure rates continued to threaten the economy.

The companies are already the largest purchasers of mortgages in the U.S.

On Tuesday morning, Fannie Mae reported a $2.19 billion loss for the first quarter of 2008, attributing it mostly to loss in credit markets. The company announced it is raising capital by cutting its dividend and hopes to raise $6 billion through stock offerings.

McLean-based Freddie Mac is expected to post a loss as well when it reports its finances next week.

The coal company’s net income for the first quarter of 2008 was $25.5 million compared with $8.3 million during the same period last year. Revenues were also up 20 percent to $516 million.

International demand for coal has increased as coal supplies have been limited in Eastern Europe and Australia because of production and logistical issues, according to the company. In addition, because of the increased demand for steel worldwide, prices for metallurgical coal, which is used to make steel, have risen as well.

The new measures include giving each employee 25 shares of the company’s public stock. In addition, employees will not have to contribute to any premiums for health, dental and vision insurance.

The company also announced cash benefits for workers, including semi-annual bonuses for operating personnel and awards for mine rescuers and trainers.

The company noted in a statement that the average age of coal workers is 50, but increased demand for coal means an estimated 50,000 new miners will be needed around the world in the next 10 years.

The company announced yesterday that it will build a new manufacturing facility and renovate current facilities in Newport News, creating about 1,000 jobs there. It also will expand its IRT subsidiary facility in Gloucester, which recycles toner cartridges, a move expected to create additional jobs.

“We are excited about this tremendous opportunity to grow and expand our operations in Virginia,” Takayoshi Hanagata, president and CEO of Canon Virginia Inc. and Industrial Resource Technologies Inc., said in a statement.

Canon Virginia is part of Canon U.S.A. Inc., whose parent company is Japan-based Canon Inc.  It provides business-to-business imaging solutions.

Canon approved $1.5 million from the Governor’s Opportunity Fund to help Newport News support the project and also a $20 million Major Eligible Employer grant. These grants are given to existing Virginia companies that make at least a $100 million investment in the commonwealth that creates at least 1,000 jobs.

The Virginia Community College Systems and Thomas Nelson Community College will lead a training alliance to create 880 technicians and supervisors during the next three years for Canon’s expansion.

“A key driver of the expansion decision was the development of a work-force pipeline to recruit and train the many new employees, and the Virginia Community College System stepped up to the plate to provide a solution for Canon in the Hampton Roads region,” Gov. Timothy M. Kaine said in a statement.

But SCM has beaten the odds to become a top player in the aluminum extrusion market in less than five years of

operation. Extrusion is a manufacturing process in which aluminum is forced through a die to create a variety of

shapes such as bars, rods, tubes and pipes. In all, SCM can manufacture some 1,200 different shapes on demand, in large or small batches.

“We’re living proof that manufacturing in America is not dead,” says Chip Dollins, SCM’s vice president of

operations. He likens SCM to Southwest Airlines, a company that has prospered in a depressed industry. “It’s the

same with manufacturing, but manufacturing can work if you’ve got the right approach, and we think we’ve got the

right approach.”
SCM started production in July 2003 with an innovative idea: Target the service center market exclusively. The

service centers resell aluminum manufacturers’ extruded products to customers in machinery, electrical and

transportation industries.
When it started nearly five years ago, SCM was a new face in an industry that had undergone massive consolidation,

leaving service centers with few choices for suppliers. Aluminum companies that survived the changing market were

usually large conglomerates that often had outdated facilities and high overhead costs.
With its new plant in Prince George County and its service-center focus, SCM outmaneuvered older competitors and

turned a profit within seven months of beginning operation. “Our mission when we started was to really redefine

what an extrusion company can do for this market, and we really focus in three areas: quality, service and

operation efficiency,” says Scott Kelley, SCM’s president and CEO.
Less than three years after its founding, SCM doubled the size of its plant in Southpoint Business Park and added a

5,500-ton press, tripling the company’s capacity. The plant now employs 120 workers, who run three shifts, five to

six days a week.
To improve efficiency, SCM offers a lucrative incentive plan for employees, allowing them to essentially double

their standard wage each day if they meet certain production goals. As the company grows, so do the workers’

paychecks.  “It’s a good system, and it drives the right behavior. Everybody contributes, and everybody reaps the

rewards of the business,” says Dollins.
The company also has avoided corporate mainstays such as private offices and time clocks, creating a more relaxed

corporate culture. “We’re a real flat organization. Innovation has been key to making this company work and be

successful,” says Dollins. 
Last year, SCM produced 80 million pounds, accounting for about 20 percent of the extrusion market. “We service

practically every major service center in the nation with our biggest markets in the Midwest and Northeast,” says

Kelley. “We’ve been very successful, especially considering our market has been down 15 to 20 percent.”
Because of its rapid growth, company officials are discussing more expansion either in Prince George or at a

location in another state.
“We’re trying to make manufacturing fun again,” says Kelley. “We have a significant market share now in our

industry, and we feel like we’ve created the new benchmark in terms of service, quality and cost. The fact that

we’ve made a better model … we take a lot of pride in that.”