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House Ways and Means Committee Chairman Dan Rostenkowski said Congress must avoid a temptation to pass a protectionist trade bill this year. In remarks prepared for delivery before the National Press Club Rostenkowski D-Ill. predicted major trade legislation will be sent to President Reagan by the end of this year. But he warned that his conciliatory message on the trade bill did not mean he would oppose a proposal that would warn other countries their access to the American market would be curtailed unless they opened their markets to U.S. goods. Complaints about (foreign trade) restraints are not a smoke screen for protectionism they a plea for fairness Rostenkowski said. It is only reasonable to ask the nations that have denied us access to open up in return for continued freedom in the American market he added. However he said there would likely be changes in the market access proposal from the plan which cleared the House last year. That plan would have set a specific time table for foreign countries to ease import restraints or they would face a 25 pct cut in exports to the United States. Reuter | ROSTENKOWSKI OPPOSES PROTECTIONIST TRADE BILL |
General Motors hopes to sell between 7000 and 8000 North American-made vehicles in Europe this year a five-fold rise over the year before James Fry vice- president of GM Overseas Distribution Corporation said. The low dollar makes our prices very attractive he told a news briefing before the opening of the Geneva Motor Show. We would like to sell between 7000 and 8000 units in Europe for the year to August 1987 he told Reuters later. Officials said GM sold 1500 North American-made vehicles in the 1986 model year. More | CORRECTED - GM SEES RISE IN EUROPEAN SALES |
Imtec Inc said some shareholders of Computer Identics Inc <CIDN> have proposed a merger of the two companies. The company said the shareholders had previously expressed dissatisfaction with Computer Identics management and had informed Computer Identics that the present board no longer had the support of a majority of shares held. It said the shareholders had called for the resignation of all but one of Computer Identics directors and suggested that a new board pursue merger talks with Imtec. But Imtec said no merger talks havew yet taken place. Reuter | IMTEC <IMTC> GETS MERGER OFFER |
 CORRECTED - GM SEES Fry said at an average price of 13000 dollars his projected sales figure for North American-made GM cars in Europe would mean turnover of between 91 million and 104 million dollars. GM sales in Europe of North American-made cars in the 1985 model year totalled 500 vehicles due largely to uncompetitive prices because of the then strong dollar Fry said. The North American-made GM vehicles sold in Europe are manufactured in the United States and Canada he said with most sales in Switzerland followed by Sweden and West Germany. -- inserting dropped words to make clear story refers only to North American-made GM cars. Reuter  | |
Shr 1.62 dlrs vs 1.33 dlrs Net 10.3 mln vs 8459000 Revs 127.5 mln vs 95.7 mln Year Shr 1.52 dlrs vs 1.20 dlrs Net 9669000 vs 7481000 Revs 278.1 mln vs 232.00 mln Reuter | KAY JEWELERS INC <KJI> 4TH QTR NET |
ROSTENKOWSKI CALLS FOR U.S. DEFICIT CUT NEAR 36 BILLION DLRS |
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The prospects of the International Coffee Organization (ICO) reaching an agreement on coffee export quotas before September appear dim Alberto Hesse former president of the European Coffee Federation said. There is no real goodwill in certain delegations to go to quotas Hesse who advises the Italian Foreign Affairs Ministry on coffee issues told Reuters. He declined to name the delegations. A special meeting between importing and exporting countries ended in a deadlock late yesterday after eight days of talks over how to set quotas. The ICO executive board will meet from March 30 to April 1 but the full council is not due to meet again until September. I am not optimistic about an agreement soon Hesse said. Reuter | ICO PACT UNLIKELY BY AUTUMN - ITALIAN ADVISER |
Anacomp Inc one of the most actively traded NYSE issues rose today as at least one analyst expected earnings to be boosted by its planned acquisition of a micrographics company. Anacomp rose 1/2 to 6-3/4 on volume of 950000 shares after trading as high as seven earlier. Howard Harlow analyst at Whale Securities Corp said Anacomps earnings for fiscal 1987 ending September 31 could be doubled to 80 cts a share from the 40 cts a share he had forecast before Anacomp agreed to buy DatagraphiX a micrographics firm from General Dynamics Corp <GD>. The company can earn 80 cts a share in fiscal 1987 maybe as much as a dlr a share because of DatagraphiX Harlow said. Most of the benefit will be in the fourth qtr because it will integrate the company in the second half. Anacomps earnings will be less if it has problems integrating DatagraphiX Harlow said. A spokesman at Anacomp said the company expects to complete its deal for DatagraphiX later this month. She would not say how much it will pay for DatagraphiX but noted that DatagraphiX contributed 10 mln dlrs in earnings to General Dynamics on revenues of 239 mln dlrs in 1986. Harlow said a fellow analyst at Whale Securities estimates that Anacomp will pay between 100 mln dlrs to 150 mln dlrs for DatagraphiX. The estimates on the street narrow it down to between 110 mln dlrs and 130 mln dlrs Harlow added. Anacomp reported net of 2.8 mln dlrs or nine cts a share in its first qtr ended December 31 up from 301000 dlrs or one ct a share. In Anacomps fiscal 1986 it earned 4073000 dlrs or 13 cts a share. Whale Securities recommends buying the stock Harlow said. Reuter | WALL STREET STOCKS/ANACOMP INC <AAC> |
Lifetime Corp said it agreed to buy five mln shares or 16 pct of <Nippon Lace Co Ltd> for 3.28 dlrs a share or 16.5 mln dlrs. It said it plans to enter the health care business in Japan. In addition it said <Koba Electronics Co Ltd> an affiliate of Nippon will buy four mln unissued shares or a 12 pct stake of Lifetime for 20 mln dlrs or five dlrs a share. - Corrects to show Nippons affiliate Koba buying stake in Lifetime. Reuter | CORRECTED - LIFETIME<LFT> TO BUY NIPPON LACE SAHRES |
Export Credits Guarantee Department has named Malcolm Stephens director of export finance at Barclays Bank Plc and a former career civil servant at ECGD for 17 years to the post of executive director a department spokesman said. Stephens replaces Jack Gill who is retiring early aged 57. A drop in the ECGDs business volume and a rise in its debt to the Exchequer have led to criticism in Parliament in recent years. Stephens said the fall in business volume was a top convern adding that the department may have to compete more aggressively with private insurance firms providing similar services. The departments annual report for the year ended March 31 1986 showed exports insured by the department fell to 15.7 billion stg from 17.4 billion the year before while its debt to the Exchequer almost doubled to 756 mln stg. Stephens said he had no specific list of changes. But among his chief concerns was the weakened condition of lesser developed countries and their ability to pay for their imports. The agency will have to review its policies on insuring export credits to lesser credits on a country by country basis he said. Large lump political risk insurance is the sort of thing we want to take a look at. You have to try to look forward to see if you are simply in a peak and trough situation or it is a more long term thing Stephens said in response to a qustion about whether ECGD will strike more countries from its list of political risk insurance recipients. He noted that certain countries have already been removed from the list. REUTER | U.K. EXPORTS BODY GETS NEW EXECUTIVE DIRECTOR |
Visible stocks of 17 oils and fats are probably peaking now and are likely to fall sharply by October 1 this year the Oil World newsletter said. Oil World forecast that stocks of oils and fats may be cut to only 9.8 mln tonnes at the end of this season compared with 10.6 mln a year earlier. Its survey covered 13 oils -- soy cotton groundnut sun rape sesame corn olive coconut palmkernel palm lin and castor -- and four animal oils and fats -- butter fish oil lard and tallow/greases. Oil Worlds analysis predicted only a slight production increase of 0.5 mln tonnes in the year to end-September 1987 compared with increases of 3.6 mln and 4.0 mln tonnes in the previous two seasons. It said world consumption was continuing to rise. Unusually low prices prevailing since early 1986 had stimulated demand for both food and non-food purposes it said. World consumption could increase by a record 2.8 mln tonnes to 71.8 mln tonnes this season and would be even higher if the Indian government did not artificially curb domestic demand. Oil World said it did not expect the European Community (EC) to introduce a vegetable oils tax but if such a tax were introduced it would have a negative impact on EC consumption. Reuter | OILS/FATS STOCKS SEEN FALLING SHARPLY IN 1986/87 |
Coffee producing countries must quickly map out a fresh common strategy following the failure of the International Coffee Organization ICO to reach agreement on export quotas Gilberto Arango president of Colombias private coffee exporters association said. Arango told Reuters that the most intelligent thing now would be to seek a unifying stand from producers including Brazil in order to map out a strategy to defend prices. An ICO special meeting ended last night in London with exporting and consuming nations failing to agree on a resumption of export quotas suspended one year ago after prices soared following a prolonged drought in Brazil. Arango said there would be no imminent catastrophe but predicted that over the short term prices would undoubtedly plummet. However he said the market should also take into account evident factors such as Brazils low stocks and the sale of the near totality of the Central American crop. Trade sources said Colombias coffee was today quoted at 1.14 dlrs a lb in New York its second lowest price in the past 10 years. Cardenas said these countries apparently fail to understand the true impact of such a failure for coffee producing nations as well as for industrialized countries. It is difficult to believe that while efforts are made to solve the problem of the developing worlds external debt decisions are being taken which cut earnings used for repaying those debts he said. In Colombias case we watch with consternation that while we try to effectively combat drug trafficking countries which support us in this fight seek to cut our jugular vein Cardenas said. Reuter | COLOMBIA TRADERS SAY NEW COFFEE STRATEGY VITAL |
Tender Loving Care Health Care Services Inc said it and Staff Buildiers Inc have extended the term of their merger agreement until May 31. Tender Loving Care also said <Norrell Corp> agreed not to acquire any additional Staff Builders shares until September 30 adding Norrell was paid 750000 dlrs for the standstill arrangement. Tender Loving Care said it agreed to buy the 610000 Staff Builders common held by Norrell about 19.1 pct of those outstanding for 6950000 dlrs immediately prior to the consummation of the merger. Tender Loving Care said the extended merger agreement continues to provide for the exchange of 1.6 of its shares for each Staff Builders share outstanding. As announced February 26 the Staff Builders shareholders meeting to vote on the merger originally convened and adjourned December 23 will be reconvened on April 22. Tender Loving Care said its payment to Norrell will include 1950000 dlrs in cash and five mln dlrs of a new series of eight pct Tender Loving Care convertible preferred. Tender Loving Care said it and Staff Builders have filed a revised registration and proxy statement with the Securities and Exchange Commission. Upon clearance of the revised proxy statement by the commission and its distribution to Staff Builders shareholders that companys management will continue to solicit proxies for approval of the merger. Tender Loving Care said it will have the power to vote about 15.8 pct of Staff Builders shares at the adjourned meeting with a spokesman explaining that this represents the proxies held by Norrell which started buying the stock after the record date for the meeting. In addition Staff Builders officers and directors own about 13.8 pct of its stock and have agreed to vote in favor of the merger. Accordingly the vote of an additional 37.1 pct of the outstanding shares will be required to approve the merger Tender Loving Care said. Reuter | TENDER LOVING <TLCI>, STAFF <STAF> EXTEND PACT |
The 1987 outlook for U.S. auto sales is clouded by a decidedly mixed sales forecast and analysts who follow the industry say it is also true for companies that sell parts and equipment to the major car and truck manufacturers. But while there are only four major U.S.-based automakers whose shares are traded on stock exchanges there are thousands of big and small suppliers who sell a flood of original and replacement parts. Analysts who follow the parts industry say there are many opportunities for investors brought on by the auto industrys intensified competition and the large volume of production in North America planned by Japanese automakers. But assessing the supplier arena is far more complicated than for investors considering the stocks of the Detroit Big Three - General Motors Corp <GM> Ford Motor Co <F> and Chrysler Corp <C>. Despite widespread predictions that U.S. vehicle sales will decline about 10 pct from the record 1987 levels Wall Street financial experts are still generally bullish on Ford and somewhat less so on Chrysler. And analysts remain largely neutral to bearish on GM the industry giant whose earnings have been dropping along with its sales as it struggles to reorganize and shed its unprofitable parts-making businesses. more | TALKING POINT/AUTO SUPPLIER STOCKS |
Soviet imports of soymeal may reach or exceed one mln tonnes between January and September this year the Oil World newsletter said. Oil World said it was likely the Soviet Union would reduce soybean imports and step up significantly its imports of meal. At least 500000 tonnes of soymeal may be shipped from the European Community and South America in the January/March quarter with additional large quantities likely to be imported in the April and July quarters from Argentina and Brazil it said. No figures were given for imports in the corresponding periods of 1986. The change made sense in view of the recent purchases of probably 250000 tonnes of West European and Polish rapeseed and large scale butter imports that were expected from March onward it said. Oil World said substantial losses of Soviet winter grain area due to recent severe frosts were probably behind the recent pick-up in Soviet purchases of U.S. Corn. It noted that an additional one mln tonnes of U.S. Corn had been bought recently by the Soviet Union. Reuter | SOVIET SOYMEAL IMPORTS SEEN RISING IN 1987 |
Colombia is holding a snap selling tender tonight for one cargo of world market raw sugar traders said. The sugar is for March 15/April 15 shipment and bids are being sought based on the New York May delivery futures contract they added. Reuter | COLOMBIA TO SELL SUGAR, LONDON TRADERS SAY |
Varian Associates Inc said it is holding discussions with Philips Electronics regarding the purchase of Philips broadcast transmission unit in the United Kingdom Pye TVT Limited. Pye TVT designs and manufactures broadcast transmission equimpment specializing in television frequencies. Reuter | VARIAN <VAR> IN TALKS WITH PHILIPS ELECTRONICS |
Jaguar PLCs Jaguar Cars Inc U.S. subsidiary said February sales were 1466 down from 1673 a year before. The company said it expects a resumption of U.S. sales growth towards the latter half of 1987. Jaguar said year-to-date U.S. sales were 2523 down from 2684 a year before. Reuter | JAGUAR <JAGRY> FEBRUARY U.S. SALES FALL |
Fruit of the Loom Inc said it is offering 60 mln dlrs of 6-3/4 pct convertible subordinated debentures due March 2002 and 250 mln dlrs of 10-3/4 pct senior subordinated notes due July 1995. Both issues are priced at par. The convertible debentures may be exchanged for class A common stock at the holders option at 11.25 dlrs. Drexel Burnham Lambert Inc is lead manager for both offerings. The convertible debentures are rated B-3 by Moodys Investors Service Inc and CCC-plus by Standard and Poors Corp. The notes are rates B-2 by Moodys and CCC-plus by S/P. Reuter | FRUIT OF THE LOOM OFFERS DEBENTURES, NOTES |
Butler Manufacturing Co said it agreed in principal to sell part of its controls division to Enercon Data Corp of Minneapolis. Terms of the sale were not disclosed. The transaction expected to be closed in March involves the controls divisions energy management and power line carrier product lines. Butler said costs associated with the sale were included in its restructuring charge taken in last years fourth quarter and will have no effect on its 1987 earnings. Reuter | BUTLER <BTLR> TO SELL PART OF UNIT |
Commonwealth Realty Trust said it has transferred its ownership of six buildings at the Valley Forge Executive Mall in Valley Forge Pa. to an equally-owned joint venture with Pennsylvania Public School Employees Retirement System as part of a refinancing. The trust said it received five mln dlrs for its half interest in the buildings. It said it also received a 32 to 33 mln dlr eight-year 9.375 pct mortgage loan on the buildings with the entire principal payable at the end of the term. After associated costs it said it realized net proceeds of about 20 mln dlrs in cash on the transactions 100 mln dlrs of which it will use to repay debt under its credit lines. Reuter | COMMONWEALTH REALTY <CRTYZ> IN REFINANCING DEAL |
Dynamics Research Corp said it has received a two-year 9995000 dlr U.S. Navy contract to supply a number of accelerometer test stations and spares for Trident submarine guidance systems. Reuter | DYNAMICS RESEARCH <DRCO> GETS NAVY CONTRACT |
KMW Systems Corp said cofounder Fred R. Klingensmith has resigned as a voting director and become an advisory or non-voting director. The company said Klingensmith is founder and president and KRL Systems Inc which plans to develop customized systems based in part on products bought from KMW. It said he left the board to avoid a conflict of interests but remains a major KMW shareholder. Reuter | KMW <KMWS> COFOUNDR RESIGNS FROM BOARD |
A World Bank team led by senior economist Katrine Saito arrived in Uganda for talks on an economic recovery program projected to cost one billion dlrs over three years. The four-member mission is expected to stay two to three weeks. An International Monetary Fund (IMF) team is due here over the same period a World Bank offical said. Finance Minister Chrispus Kiyonga said last month that most of the one billion dlrs would go towards rehabilitating industries repairing and maintaining roads and buying tractors and other agricultural needs. He did not say where the money would come from. Diplomats expect the government to ask the World Bank and other foreign donors to provide most of the foreign exchange portion. Reuter | WORLD BANK TEAM ARRIVES IN UGANDA |
Periods ended December 31 Shr loss 10 cts vs loss seven cts Net loss 316289 vs loss 189140 Revs 61762 vs 8934 Reuter | FERTILITY AND GENETICS RESEARCH <BABY> 1ST QTR |
House Ways and Means Committee Chairman Dan Rostenkowski said he would be reluctant to back the tax increase if it did not have President Reagans support. He told a National Press Club luncheon there would be a number of tax proposals that could be debated if Reagan sought a tax increase to help balance the budget. However he said he would prefer to leave the tax rates enacted in last years tax reform bill unchanged. There have been calls in Congress to hold the rates at the 1987 level rather than allow them to fall next year. Reagan proposed 22 billion dlrs in revenue as part of his 1988 budget proposal but it did not include general tax increases. On trade issues Rostenkowski said he did not expect the major trade bill this year would single out any U.S. industry for special protection. To go after individual items in a trade bill is suicide he said. This apparently ruled out congressional approval of another textile trade bill to limit quotas on textile imports as was proposed again this year. Reuter | ROSTENKOWSKI RELUCTANT TO BACK TAX HIKE |
The deal AMR Corp cut to buy 40 new planes is a plus for the company because it clearly puts the financial burden on aircraft manufacturers Boeing Co <BA> and <Airbus Industrie> a European consortium analysts said. The terms put most of the risk on the shoulders of the manufacturers said analyst Kevin Murphy of Morgan Stanley and Co. Theyre called walkaway leases. AMR agreed to buy 15 planes from Boeing and 25 from Airbus but said its American Airlines unit will lease the aircraft which essentially will be owned by the manufacturers. AMR declined to value the deal which analysts estimated at roughly 2.4 billion dlrs. American Airlines will use the planes scheduled for delivery in 1988 and 1989 to expand its service in the Caribbean and to Europe. But AMR will not lay out cash deposits to pay for the planes nor will it take on new debt to finance the purchases. The carrier has 20-year leases on the aircraft with four-year extension options and may cancel the leases with 30 days notice by paying a small penalty according to AMR chairman Robert Crandall. Were getting the aircraft on very favorable terms Crandall told a press briefing here. He called the deals off balance sheet limited obligation leases under which the financing is provided by the manufacturers. A spokesman for Airbus confirmed those terms. We will own the aircraft and they will be leasing them from us he said. Airbus is providing American Airlines with 25 of its twin-jet long-range A300-600 planes. A spokesman for Boeing Commercial Airplane Co the unit of Boeing that makes the long-range 767-300 planes that are part of the deal declined to comment on financing arrangements. Analysts said walkaway lease deals have been used before by airlines buying aircraft particularly new generations of planes but not to this extent. Julius Maldutis of Salomon Brothers Inc said the deal will give AMR financial stability as it grows. AMR is using the manufacturers balance sheets to finance these airplanes and consequently its debt to equity ratio will remain stable into the early 1990s he said. The deal reflects a fundamental trend where airlines will increasingly become operators of assets rather than owners to reduce their exposure to risk he added. Reuter | AMR <AMR> AIRCRAFT FINANCING SEEN POSITIVELY |
Magellan Corp said it has entered into a letter of intent to acquire Balzac Investments Inc in a transaction that will result in former Balzac shareholders owning about 83 pct of the combined company. The company said on completion of the merger the combined company wopuld be known as Power-Cell Inc and be engaged in the development of Balzac technology related to its Quick Charge product for charging auto batteries. The transaction is subject to approval by shareholders of both companies. Reuter | <MAGELLAN CORP> SETS MERGER WITH BALZAC |
Shr 68 cts vs 78 cts Net 2432179 vs 2236471 Revs 50.8 mln vs 35.1 mln Avg shrs 3600000 vs 2850000 Year Shr 2.82 dlrs vs 3.35 dlrs Net 10.0 mln vs 9554658 Revs 177.5 mln vs 138.1 mln Avg shrs 3567123 vs 2850000 Reuter | UNITED COS FINANCIAL CORP <UNCF> 4TH QTR NET |
The International Monetary Fund said it approved 125.9 mln SDRs to assist development in Jamaica. Of this total 85 mln SDRs can be drawn over the next 15 months under a standby arrangement in support of the governments economic and financial program. Another 40.9 mln is available immediately under the compensatory financing facility the IMFs pool of funds to assist countries hit by export shortfalls. The IMF said that Jamaica had a shortfall in the year ended September 1986 due to reduced sales of Bauxite alummina and travel expenditures. After some deterioration the situation and prospects for Jamaica improved substantially in 1986 and early 1987 mainly as a result of a decline in energy prices and interest rates and a strong recovery in the tourist sector the IMF said. The program that the new funding supports is designed to continue the adjustment and restructuring effort so as to achieve sustained growth a lower rate of inflation and a balance of payments viability in the medium term. Reuter | IMF APPROVES 125.9 MLN SDR'S FOR JAMAICA |
General Motors Corp said it will cease production at its Norwood Ohio car assembly plant effective August 26 to reduce output of the sporty CHevrolet Camaro and Pontiac Firebird models built there. After careful review and analysis of our capacitry requirements it has become necessary for us to close Norwood at the end of the 1987 model year GM vice-president and group executive Robert Schultz said. GM previously said it would close the plant in a capacity reduction but did not specify a precise date. The cars will still be built at GMs Van Nuys Calif. plant. Reuter | GM <GM> TO CLOSE NORWOOD PLANT IN AUGUST |
Fertility and Genetics Research Inc said it will not establish further free-standing ovum transfer centers and is exploring the establishment of general fertility centers and alternative businesses. The company said this followed its evaluation of unpublished technical information regarding some competing technology which if substantiated and replicated could adversely affect the companys operations. Fertility and Genetics said the non-surgical ovum transfer procedure will continue to remain a viable option for infertile couples to consider among the several alternative procedures available in advanced reproductive medicine. In particular it is medically and psychologically superior to surrogate motherhood because the fertilized egg is transferred prior to the gestation process rather than after maternal bonding with the child has taken place the company explained without further reference to the unpublished technical information. Reuter | FERTILITY/GENETICS <BABY> STUDIES ALTERNATIVES |
Executive Telecommunications Inc said the recently announced joint board of directors meeting with <First Equipment Leasing Co> to negotiate the details of the First Equipment reverse takeover offer has been changed from March 12 to March 16. XTEL said the move was made to accommodate several of the directors with conflicting schedules. First Equipment recently offered to buy XTEL in a reverse takeover deal in which the new company would retain the XTEL name. Reuter | EXECUTIVE TELECOM <XTEL> CHANGES MEETING DATE |
Qtly div 70 cts vs 70 cts prior Pay May One Record April Three Reuter | BRISTOL-MYERS CO <BMY> SETS QUARTERLY |
Perini Investment Properties Inc said it has purchased three industrial/warehouse properties in Boca Raton Fla. and one in Pompano Beach Fla. for an undisclosed amount. The company said the purchases increase its industrial/warehouse inventory by about 252000 square feet. Reuter | PERINI INVESTMENT <PNV> BUYS FLORIDA PROPERTIES |
FBI Director William Webster refused all comment on whether he has been approached to head the Central Intelligence Agency. After testifying before a Senate Judiciary Committee Webster answered repeatedly with no comment when asked by reporters if he has been approached. Webster has been mentioned as a possible top choice to head the spy agency following President Reagans forced withdrawal of the nomination of acting director Robert Gates to succeed ailing ex-CIA chief William Casey. Reuter | FBI CHIEF WEBSTER REFUSES COMMENT ON CIA POST |
American Adventure Inc said a U.S. Bankruptcy Court confirmed its reorganization plan. The plan calls for the sale of substantially all the assets of the company to a new company that will retain the same name but be incorporated in Delaware. The comany said the transaction is expected to close later this month. Shareholders will receive one share of stock in the new company for every 10 shares they hold currently. Reuter | AMERICAN ADVENTURE <GOAA> SETS BANKRUPTCY PLAN |
<American Aircraft Corp> said it has acquired a 51 pct interest in privately-held <Hunter Helicopter of Nevada Inc>. The purchase was made for an undisclosed amount of American Aircraft stock the company said. It said the acquisition will increase shareholder equity in American Aircraft to 45 cts per share from 18 cts per share. Hunter Helicopter builds two-passenger helicopters that retail for about 50000 dlrs. Reuter | AMERICAN AIRCRAFT CORP BUYS PRIVATE FIRM |
Qtly div nine cts vs eight cts in prior qtr Payable March 31 Record March 13 Reuter | AID CORP <AIDC> RAISES QUARTERLY DIVIDEND |
American Network Inc said it has reduced its long distance telephone service rates by two to 15 pct. The reductions apply to the companys subsidiaries STARNET International Inc and American Telephone Exchange. Reuter | AMERICAN NETWORK <ANWI> REDUCES CUSTOMER RATES |
National Data Corp said it signed a multi-year contract with US Sprint to provide the long distance telephone company with around the clock operator services. National Data said it was the first step in establishing a Center Services Divisioin. The company said it will provide 24-hour 7-day-a week services to the long distance network and expects the agreement to generate in excess of eight million dlrs in revenue during the current fiscal year which ends May 31 1987. The new services will allow subscribers to make collect person-to-person and station-to-station calls and to receive call assistance services anywhere in the U.S. the company said. Reuter | NATIONAL DATA <NDTA> SIGNS PACT WITH US SPRINT |
Hewlett Packard Co said it unveiled the HP LaserJet Series II printer the next generation of its laser printer line. The company said the HP LaserJet II offers more capabilities than earlier models but at 2495 dlrs costs 500 dlrs less than previous machines. The LaserJet II prints eight pages a minute and can be used for desktop publishing word processing and spreadsheet and graphics printing. It also said it introduced a larger laser printer to accommodate numerous workstations and a machine used to scan documents. The company also said it introduced the HP LaserJet 2000 its first printer designed to be used with personal computer networks departmental systems and minicomputers. It can print 20 pages a minute and has an entry price of 19995 dlrs. It also unveiled the SP ScanJet a flatbed desktop device that scans printed images of text. The scanner works like a photocopier storing the copied images on a hard disk the company said. It costs 1495 dlrs. Hewlett Packard also said it brought out a new family of plotter machines the HP Draftmasters I and II. The new models replace the HP 758X series of drafting-plotter line machines used for computer aided design. The Draftmaster costs 9900 dlrs and the Draftsmaster II 11900 dlrs. A smaller plotter called the DraftPro was priced at 5400 dlrs. It is designed for use with a personal computer. Reuter | HEWLETT-PACKARD <HWP> UNVEILS NEW PRODUCTS |
International Technology Corp said it has purchased <Western Emergency Services Inc> in a pooling-of-interests transaction. International Technology a hazardous materials management company said it purchased Western Emergency an environmental services firm to offer a broader range of environmental services to the Gulf Coast area. Reuter | INTERNATIONAL TECHNOLOGY <ITX> MAKES ACQUISITION |
Semi-annual 30 cts vs 25 cts prior Pay June 30 Record June 15 Reuter | <D.H. HOWDEN AND CO LTD> INCREASES DIVIDEND |
Oper shr 25 cts vs 25 cts Oper net 6322000 vs 4660000 Revs 189.1 mln vs 174.7 mln Avg shrs 23.5 mn vs 17.1 mln Year Oper shr 1.04 dlrs vs 14 cts Oper net 21929000 vs 3629000 Revs 760.2 mln vs 674.8 mln Avg shrs 20.5 mln vs 17.1 mln Note: Qtr shr and net exclude tax gain of 4573000 dlrs or 17 cts share versus gain of 17259000 dlrs or 1.02 dlrs share Year shr and net exclude tax gain of 15992000 dlrs or 78 cts share versus gain of 18042000 dlrs or 1.06 dlrs share Reuter | <CO-STEEL INC> 4TH QTR NET |
Recent heavy rains have not affected the Peru coffee crop and producers are looking forward to a record harvest the president of one of Perus four coffee cooperative groups said. Justo Marin Ludena president of the Cafe Peru group of cooperatives which accounts for about 20 pct of Perus exports told Reuters a harvest of up to 1800000 quintales (46 kilos) was expected this year. He said Peru exported 1616101 quintales in the year to September 1986. A spokesman for the Villa Rica cooperative said flood waters last month had not reached coffee plantations and the crop was unaffected. Floods in early February caused extensive damage in Villa Rica whose coffee cooperative exported 59960 quintales last year according to the state-controlled coffee organisation. Marin said the rains would only affect the coffee crop if they continued through to next month when harvesting starts. He said Peruvian producers were hoping for an increase this year in the 1.3 pct export quota about 913000 quintales assigned to them by the International Coffee Organisation ICO. He said Peru exported 1381009 quintales to ICO members last year with a value of around 230 mln dlrs and another 235092 quintales valued at around 35 mln dlrs to non-ICO members. Reuter | PERU COFFEE CROP UNAFFECTED BY RAINS |
WHITE HOUSE SAYS REAGAN TO MAKE 1530 EST/2030 GMT ANNOUNCEMENT, TOPIC UNDISCLOSED |
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Brazilian Finance Minister Dilson Funaro on the third leg of a trip to explain his countrys stance on debt to European governments met West German Finance Minister Gerhard Stoltenberg for talks this evening and the two men were continuing their discussions over dinner Brazilian delegation sources said. They said the Funaro and Stoltenberg discussed Third World debt in general and Brazils debt position in particular but declined to give further details. Funaro was scheduled to travel to Switzerland tomorrow they added. Reuter | BRAZILIAN FINANCE MINISTER MEETS STOLTENBERG |
The Federal Savings and Loan Insurance Corp is facing a deficit because of its potential liability from insolvent savings associations the General Accounting Office told a House Banking hearing. We have preliminarily determined that FSLIC needs to establish a contingent liability in the range of eight billion dlrs to handle cases that will require action in the near future Frederick Wolf of the GAO said. When that amount is deducted from FSLICs reserves FSLIC would have a deficit of over three billion dlrs as of the end of 1986. Clearly FSLIC needs additional funds to resolve the large backlog of insolvent and unprofiable savings associations that continue to operate Wolf said. He urged the committee to support the Treasury Departments plan to raise 25 billion dlrs over five years to recapitalize FSLIC. Wolf said as of Septmember 1986 about 85 pct of FSLIC insured savings associations were solvent while 15 pct were insolvent. He said 80 pct of savings associations were profitable earning a total of 6.9 billion dlrs during the first three quarters of the year while the other 20 pct of associations lost a total of five billion dlrs in the same period. The GAO is the investigating agency of Congress. Roy Green president of the Federal Home Loan Bank of Dallas estimated his district would need five billion to eight billion dlrs over the next five years to close 12 Texas savings associations and 14 associations in nearby states which he said are considered hopelessly insolvent. Reuter | GAO SAYS FSLIC SHOWS DEFICIT, NEEDS FUNDS |
The White House said President Reagan would make an announcement at 1530 EST/2030 gmt but the topic was undisclosed. A spokesman said officials would brief reporters on details of the announcement afterwards. Athough Reagans topic was not disclosed speculation centered on the possible naming of a nominee to to head the CIA or a response to the Soviet Unions offer to negotiate a separate arms control agreement on medium range missiles in Europe. Reuter | REAGAN TO MAKE ANNOUNCEMENT |
Oper shr 42 cts vs 41 cts Oper net 2322000 vs 1785000 Sales 72.3 mln vs 59.8 mln Avg shrs 5527000 vs 4355000 Year Oper shr 1.48 dlrs vs 1.40 dlrs Oper net 7637000 vs 5973000 Sales 261.7 mln vs 224.7 mln Avg shrs 5165000 vs 4277000 NOTE: 1985 operating net excludes gains of 1523000 dlrs or 35 cts a share in quarter and 5090000 dlrs or 1.19 dlrs a share in year from tax carryforwards Reuter | WILLCOX AND GIBBS INC <WG> 4TH QTR NET |
One of General Electric Cos biggest businesses aircraft engines will ride a wave of increasing profits into 1991 because of a new contract worth 650 mln dlrs Wall Street analysts said. Previously it was expected the business would peak and decline at some point in the next five years. The improved outlook results from AMR Corps <AMR> decision to order 40 new planes powered by CF6-80C2 GE engines. Creative financial footwork helped GE get the order said Nicholas Heymann analyst at Drexel Burnham Lambert Inc. AMR declined to go into detail on financing arrangements for its order of 15 Boeing Co <BA> and 25 <Airbus Industrie> twinjet long distance aircraft. But AMR said it was using rent-a-plane leases that allow it to operate the aircraft without adding to its debt structure. AMR also has the right to decline delivery of the planes or return them on short notice. The arrangement protects AMR in the case of an unexpected development such as a severe downturn in the economy. From GEs point of view the package looks like a good deal for several reasons Heymann said. GE will be able to record revenue as a sale at the time of delivery Heymann noted. And if for some reason AMR decides not to take the planes GEs financial arm General Electric Financial Services Inc would have little trouble rounding up another airline that wanted the fuel efficient planes. On the whole the deal appears to pose little risk for GE Heymann said. GEs stock declined 1/4 to 103-1/2 on 625000 shares by midafternoon. H.P. Smith analyst at Smith Barney Harris Upham and Co said for a 40 billion dlr (revenue) company no one order will have much of an effect on the stock. Russell Leavitt analyst at Salomon Brothers Inc said the order will help to maintain a good level of production and profitability in the aircraft engine business for GE. Heymann sees operating profits from GEs jet engine business rising from 870 mln dlrs last year to 1.3 billion dlrs by 1991. Revenue from jet engines was close to six billion dlrs last year with well over half of the business in the military sector according to analysts estimates. The rosy outlook for GEs jet engine business coincides with an upbeat performance in other segments. Heymann expects GE to earn 1.39 dlrs per share in the first quarter of 1987. Saying many will be suprised by the results he believes GE has shown through its acquisition of RCA Corp that it has a unique ability to buy a major business and reshape it pruning some parts and recombining parts with other elements of its 14 business areas. Smith sees GE earning 1.35 dlrs per share in the current quarter. He credits good results at RCA in turn aided by the NBC broadcasting operation and lower interest rates. Leavitt sees 1.40 dlrs for the current quarter in part crediting significant benefits from the RCA acquisition. Reuter | GE <GE> PROFIT OUTLOOK AIDED BY ENGINE ORDER |
TREASURY'S MULFORD SEES MAJOR NEW LENDING FOR BRAZIL, OTHER DEBTORS, IN 1987 |
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Eastman Kodak Co best known for its cameras and film products took several steps today to boost its image as a diversified information systems company. The Rochester N.Y.-based company unwrapped a series of new electronic data and image storage systems that can create vast computerized libraries of documents and pictures. Analysts said Kodak made a good start in the emerging market for such systems sales of which are expected to reach five billion dlrs by 1990. But they warned several years may pass before the new systems contribute to its bottom line. Kodak also launched a 50 mln dlr advertising campaign to promote its new image. We want to be to the imaging market what IBM is to the data processing market said Edgar J. Greco vice president and general manager of Kodaks business imaging systems division. While more than 45 pct of Kodaks 11.55 billion dlrs in sales for 1986 came from photography products Kodak said sales of copiers electronic storage systems and other business products will exceed four billion dlrs this year. Were launching a major attack on these new markets Greco said. Kodak perceives that these new businesses will be its bread and butter said Wertheim and Co analyst Michael Ellman. But Richard Schwarz who follows Kodak for E.F. Hutton and Co said the company will find the profit margins much slimmer on sophisticated imaging systems than on its consumer photography products. The critical problem will be turning a profit he said. Kodak also announced the first commerically available 14-inch optical disk. Kodak said the disk can store the equivalent of the contents of 110 file cabinet drawers. Reuter | KODAK <EK> CONTINUES DRIVE INTO NEW MARKETS |
The International Monetary Fund IMF said it approved 125.9 mln sdrs to assist development in Jamaica. Over the next 15 months 85 mln sdrs can be drawn under a standby arrangement in support of the governments economic and financial program. Another 40.9 mln is available immediately following an export shortfall for Jamaica in the year ended September 1986 due to reduced income from bauxite alumina and tourism the IMF said. Reuter | IMF APPROVES DEVELOPMENT AID FOR JAMAICA |
MOBIL CORP FILES FOR OFFER OF ONE BILLION DLRS OF DEBT SECURITIES |
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French exporters estimated that around 600000 tonnes of French soft wheat has been sold to China for delivery in the 1986/87 (July/June) year. Around 300000 tonnes were exported to China between July 1986 and February this year. Another 100000 to 150000 tonnes will be shipped during this month and around the same amount in April they said. France sold around 250000 tonnes of soft wheat to China in 1985/86 according to customs figures. However certain exporters fear China may renounce part of its contract with France after being offered one mln tonnes of U.S. soft wheat under the Export Enhancement Program in January and making some purchases under the initiative. Reuter | FRENCH EXPORTERS SEE HIGHER WHEAT SALES TO CHINA |
Oper shr loss 1.24 dlrs vs profit 19 cts Oper net loss 1965000 vs profit 646000 Revs 10.5 mln vs 11.6 mln Avg shrs 1741000 vs 3581000 12 mths Oper shr loss 1.55 dlrs vs profit 42 cts Oper net loss vs profit 2051000 vs 1492000 Revs 42.9 mln vs 45.5 mln Avg shrs 1816000 vs 3581000 NOTE: prior qtr excludes loss 229000 or seven cts per share for discontinued operations. 1986 qtr excludes 159000 extraodinary loss. Excludes loss 293000 or 16 cts per share for 1986 and gain 651000 or 18 cts per share for 1985 for discontinued operations. Excludes loss 256000 for 1986 net for extraordinary item. Reuter | BUCKHORN INC <BKN> 4TH QTR LOSS |
Assistant Treasury Secretary David Mulford said rapid progress was being made in talks with commercial banks for loans to Argentina the Philippines and Brazil. This should result in substantial new lending for the major debtors in 1987 he said in prepared testimony for the Subcommittee on International Development Institutions of the U.S. House of Representatives. Until recently commercial banks were slow to conclude new financing packages pending completion of a Mexican package Mulford said. We are concerned about the backlog of other financial packages and would like to see these move ahead soon he said There is some evidence that this is already happening. Chile signed an agreement with banks last week and there was also an agreement with Venezuela on rescheduling principal payments on previously renegotiated debt. We look for rapid progress in commercial bank discussions with Argentina the Philippines and ultimately Brazil he said. Reuter | TREASURY'S MULFORD SEES BRAZIL LENDING PROGRESS |
Buckhorn Inc said itd nine million dlr backlog for orders and a less expensive operating environment should yield significant levels of operating profits for 1987. Buckhorn a manufacturer of reusable plastic shipping and storage containers recorded 2051000 or 1.55 dlrs per share operating net loss for 1986. Buckhorn said the years results included a 4250000 non-recurring expense incurred to complete major restructuring efforts and to defend against the hostile tender offer from Ropak Corporation. Reuter | BUCKHORN INC <BKN> SEES HIGHER PROFITS IN 1987 |
Mobil Corp filed with the Securities and Exchange Commission for a shelf offering of up to one billion dlrs of debt securities on terms to be determined at the time of the sale. Proceeds from the sale will be used for general corporate purposes the company said. Mobil did not name any underwriters for the offering. Reuter | MOBIL <MOB> FILES FOR ONE BILLION DLR DEBT OFFER |
<CIIT Inc> said it filed a final prospectus for a 15 mln dlr rights offering to subscribe for 1.1 mln common shares at 13.85 dlrs each. Under the terms of the offering each common share holder will receive 1-1/2 rights for each common share held on March 13 and each right will entitle the holder to subscribe for one common share at 13.85 dlrs each by April 13 the company said. Reuter | CIIT PLANS RIGHTS OFFERING |
Alcan Aluminium Ltd said it joined with Carrozzeria Bertone S.P.A. to exhibit Alcans technology in aluminum structured vehicles at Genevas international auto salon. Alcan said it and Bertone have built several Bertone X1/9 sports cars with structures of adhesively bonded sheet aluminum. It said the bodies were made on presses used for Bertones steel-structured sports cars. Alcan said two of the cars are currently being tested in Britain by the Motor Industry Research Association. Alcan said it has developed and tested the aluminum structure technology so that it is suitable for modern auto making methods and plants. Alcan said the technology which reduces the weight of a cars basic structure by up to 50 pct can improve handling and performance and reduce fuel consumption for any size car. It said the structures also provide long life without the need for rust protection. The structure provides the same stiffness and safety as present materials while continuously bonded seams allow a 65 pct reduction in spot welds Alcan said. Reuter | ALCAN, BERTONE MAKE ALUMINUM STRUCTURE CAR |
Shr 2-1/5 cts vs nil Net 156726 vs 11989 Sales 1157883 vs 890138 Reuter | CCR VIDEO 1ST QTR NOV 30 NET |
Shr eight cts vs 16 cts Net 188000 vs 354000 Revs 538000 vs 594000 Year Shr 31 cts vs 28 cts Net 692000 vs 617000 Revs 2640000 vs 906000 (Del E. Webb Investment Properties Inc) Reuter | DEL E. WEBB INVESTMENT <DWPA> 4TH QTR NET |
AID Corp said its stockholders will be asked to change the companys name to ALLIED Group Inc to more closely reflect the corporate logo adopted last year. It said stockholders of record March 31 will be eligible to vote at the meeting. The company said its board has approved an amendment to the pooling agreement effective January one whereby <AMCO Insurance Co> will increase its participation by assuming 33 pct of ALLIED Groups combined written premiums. AMCO had previously assumed 30 pct of the combined written premiums. With this amendment AID said its subsidiaries now assume 41 pct of the total combined written premiums. Reuter | AID <AIDC> PROPOSES NAME CHANGE |
Moodys Investors Service Inc said it downgraded to Baa-2 from A-3 the rating on Loral Corps 7-1/4 pct convertible subordinated debentures of 2010 and on 10-3/4 pct subordinated sinking fund debentures due 1997. Moodys said it took the action which affects approximately 117 mln dlrs of debt after examining Lorals acquisition of Goodyear Aerospace Corp. It said the downgrade reflects the substantial increase in the companys debt in order to finance the acquisition and the risks of assimilating such a relatively large acquisition. Reuter | MOODY'S DOWNGRADES LORAL <LOR> DEBT |
U.S. EXPORTERS REPORT 104,000 TONNES OF CORN SOLD TO UNKNOWN DESTINATIONS FOR 1986/87 |
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The specialty retailing area continues to pay off for F.W. Woolworth Co once known only as a five and dime store chain which said its 1986 income rose 21 pct. It was the fourth consecutive year of profit increases for the New York-based retailer which was founded over 100 years ago. Woolworths 1986 income rose to 214 mln dlrs or 3.25 dlrs per share compared with 1985s profit of 177 mln or 2.75 dlrs per share. Revenues for the year rose to 6.50 billion compared with the prior years 5.96 billion. For the fourth quarter the company reported profits rose 10 pct to 117 mln dlrs or 1.78 dlrs per share compared with 1985 fourth quarter results of 106 mln or 1.64 dlrs per share. Revenues rose to 2.02 billion from 1.85 billion dlrs. Roy Garofalo Woolworth vice president told Reuters that income generated by the companys specialty store operations accounted for 52 pct of the parent companys 1986 profits. He said the company now has 4700 specialty stores operating under 30 different names. Woolworth plans to open 650 more specialty stores in 1987. At this time last year it operated 4100 specialty stores Garofalo said. Garofalo said the largest specialty chain operated by Woolworth is Kinney Shoe Stores followed by the Richman apparel unit. Among other units are Little Folk Shop a chain of discount childrens apparel stores; The Rx Place a discount drug health and beauty aid operation; and Face Fantasies which sells cosmetics. There are currently about 1700 Woolworth general merchandise stores operating worldwide of which 1200 are in the United States. Harold Sells chairman and chief executive of Woolworth said in a statement These results are especially gratifying as they are an improvement over last years record earnings. Sells that it was the fourth successive year earnings in each quarter improved over the corresponding year-earlier period. Woolworths variety store operations were hard hit in the 1970s and early 1980s by the quickly growing discount store industry. In an attempt to compete in the 1970s Woolworth opened a discount general store chain Woolco and J. Brannam a discount apparel chain. Both were failures in the United States although Woolco still operates in Canada. In 1985 however Woolworth changed its strategy and announced that it would operate specialty stores. At that time the company said it would create 14 new groups of such stores. Specialty stores generally have higher sales per square foot than general merchandise stores. Reuter | F.W. WOOLWORTH'S <Z> 1986 PROFITS RISE 21 PCT |
Assistant Treasury Secretary David Mulford said he prefers debt conversion plans to help heavily indebted countries over quick-fix political plans to help ease their debt burden. In my view debt conversions or swaps into either equity or local debt claims provide a preferable route to debt relief for the debtor nations particularly if combined with measures to encourage new equity investment and the repatriation of flight capital he told the House Subcommittee on International Development Institutions. Mulford criticized what he called large-scale solutions to the debt problems effecting many developing countries ranging from debt forgiveness to creating new multilateral institutions for lending. While such approaches may have some political appeal they are impractical and ultimately counterproductive he said. He said debt conversions or swaps are more effective because they eliminate the interest service on converted debt create new jobs and open up investment opportunities that can help indebted countries overcome their own problems. Reuter | TREASURY'S MULFORD BACKS DEBT CONVERSIONS |
Shr loss 72 cts vs loss 1.48 dlrs Net loss 4466006 vs loss 9091688 Revs 608181 vs 1280727 Six Mths Shr loss 77 cts vs loss 1.51 dlrs Net loss 4752455 vs loss 9265457 Revs 1444149 vs 2791188 Reuter | ROYAL RESOURCES CORP <RRCO> 2ND QTR DEC 31 LOSS |
Canadian economic growth is expected to slow further in 1987 but an improved the trade picture should keep the country from recession economists said. The economy is ready for about a 2.0 pct rate of growth over the course of 1987 said Carl Beigie Chief Economist at Dominion Securities Pitfield Ltd. Statistics Canada reported that gross domestic product grew 3.1 pct in 1986 the fourth year of continuous expansion but down from 1985s four pct. In the final quarter GDP in 1981 prices and at annualized rates rose a slight 0.2 pct after expanding 0.8 pct in the third quarter. Essentially it is a flat performance said Warren Jestin deputy chief economist at the Bank of Nova Scotia. Economist Wendy Smith Cork of the brokerage Nesbitt Thomson Bongard Inc said it shows the economy is not moving along very steadily its not a very promising number. We werent surprised we expected to see one bad quarter in Canada but we dont think there will be a recession she added. The rise in GDP was below the 3.3 pct increase forecast by Federal Finance Minister Michael Wilson in his budget last month. He also projected the economy would expand 2.8 pct this year. Many economists are less optimistic predicting growth will likely be in the 2.0 to 2.2 pct range. Statistics Canada also reported the countrys trade performance deteriorated sharply last year as the deficit in the current account rose to a record 8.8 billion Canadian dlrs from the previous years shortfall of 584 mln dlrs. The sharp increase in the deficit originated from merchandise trade transactions where imports continued to advance strongly whereas exports were virtually unchanged the federal agency said in a statement. The merchandise trade surplus was pared to 10.13 billion dlrs in 1986 from 17.48 billion dlrs in 1985. But economist Cork said the expected upturn in the U.S. economy will lead to increased demand for Canadian goods and help fuel the countrys modest expansion. Nearly 80 pct of Canadas exports are shipped to the U.S. each year. Reuter | CANADA ECONOMY EXPECTED TO GROW MODERATELY |
The U.S. Agriculture Department said private U.S. exporters reported sales of 104000 tonnes of corn to unknown destinations for shipment in the 1986/87 marketing year. The marketing year for corn began September 1 it said. Reuter | USDA REPORTS CORN SOLD SOLD TO UNKNOWN |
PRESIDENT REAGAN SAYS U.S. TO SUBMIT DRAFT TREATY ON INTERMEDIATE MISSILES REDUCTION |
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The Bank of England proposed that banks in Britain for the first time will have to seek authorization to be lead underwriters of new issues in the euromarkets. In addition the Bank has proposed limits on the amount of credit risk that firms can take on with each new issue they lead manage. The proposed rules were outlined today in a consultative paper on large credit exposures taken by recognized banks and deposit takers and may be modified the Bank said. The rules could affect billions of dollars of eurobond securities issued each year. In 1986 about 183 billion dlrs of new eurobonds were offered according to figures compiled by Euromoney magazine. Up until now there have been no restrictions on lead managing eurobond issues. However eurobond market participants believe the Bank of England is concerned about intense competition for market share which may have caused some firms to expose themselves to imprudent credit risk. Competition for market share has been a boon to issuers as banks compete to offer the best terms. But the new rules suggest that some constraints may be placed on competition as regulators attempt to ensure that no bank takes on more risk than it can handle. Banking sources said that while the Bank of England is reluctant to inhibit competition it is willing to accept some constraints in order to ensure that underwriters act prudently. The Banks assessment of the appropriateness of a banks lead underwriting activity will depend primarily upon the skill and experience of the lead underwriter in the particular market concerned... the Banks proposal said. Once a firm has received permission to act as lead underwriter the exposure will be valued at one-sixth of the face amount of the securities. Nominal exposure exceeding 60 pct of capital must be reported to the Bank of England and it must be notified in advance for exposure of over 150 pct of capital. The exposure will be determined to exist for a maximum of 28 days following a binding commitment to underwrite. After that any remaining exposure from unsold securities will be assessed at their full face value. The rules would not apply to syndicated loan facilities revolving credits or commercial paper the Bank said. The Bank also amended other aspects of plans to strengthen its supervisory powers over banks in the paper which called for comments from professionals by March 31 to allow their possible inclusion in the Banking Bill in time for its planned final discussion in Parliament scheduled before summer. The new Banking Bill updating the 1979 Banking Act is the third leg of the Conservative governments legislation for the supervision of financial institutions. It is to feature alongside the Financial Services Act aimed to bolster investor protection and the Building Societies Act which put these institutions on an equal footing with banks. The proposed legislation would abolish distinctions between recognised banks and licensed deposit-takers and tighten legal controls making it a criminal offence to mislead supervisors. Proposals to require banks to inform the Bank of England in advance of planned exposures in excess of 25 pct of their capital and to have the Bank supervise exposures between 10 and 25 pct of capital were not under debate the paper showed. However preliminary consultations with bank representatives had shown some of the initial proposals to be flawed it said. Most proposed changes involved evaluating exposures on a case-by-case basis rather than along general lines. Amendments involved the Banks proposed treatment of exposures by financial institutions acting as banker to other units of their own group of companies the paper showed. They also regarded the treatment of credit exposure to local governments and other public sector entities and of exposures undertaken by banks that are subsidiaries of banks. Proposals on how to value securities given by a debtor as collateral to a credit were slightly changed the paper showed. Exposures taken on by banks acting as creditor within their own group of companies would usually be looked into on a case-by-case basis under new proposals it said. The paper said exposures to state-owned industries and other public sector authorities in the U.K. and abroad should be given the more lenient treatment of credits to governments provided a government gives unconditional repayment guarantees. It cautioned that exposures to U.K. local authorities and those guaranteed by the British Export Credit Guarantee Department would probably not qualify for such treatment. On credits granted by banks which are a subsidiary of another bank an earlier-proposed 100 pct of capital ceiling could be exceeded in individual cases. But the parent bank would have to give a formal undertaking to take over the exposure if problems were to occur and state in writing that the exposure was retained in the subsidiarys balance sheet to meet precise group objectives the paper said. On collateral security it said this should normally only be taken into account when considering the acceptability of a banks exposure up to 25 pct of its capital base. The presence of security taken on its own will be considered by the Bank as an acceptable reason for an exposure in excess of 25 pct but only in the most exceptional circumstances and even then to a very limited extent it said. Reuter | BANK OF ENGLAND PROPOSES LIMITS ON UNDERWRITERS |
<American Aircraft Corp> said it has acquired a 51 pct interest in privately-owned <Hunter Helicopter of Nevada Inc> for an undisclosed amount of stock. An American Aircraft official said the company has an option to acquire the remaining 49 pct. Hunter Helicopter is in the business of building a two passenger helicopter retailing for about 50000 dlrs each which is certified by the Federal Aviation Administration. The helicopters will be manufactured in American Aircrafts Uvalde Texas plant it added. Reuter | AMERICAN AIRCRAFT BUYS INTO HELICOPTER BUILDER |
Qtly div 11 cts vs 11 cts in prior qtr Payable April 10 Record March 23 Reuter | PREMIER INDUSTRIAL CORP <PRE> REGULAR DIVIDEND |
Premier Industrial Corp said it named Robert Warren to the new post of vice chairman and William Hamilton president succeeding Warren. Morton Mandel continues as chairman and chief executive officer and Warren continues as chief operating officer the company said. Hamilton formerly senior vice president will have the companys three business segments -- maintenance products distribution of electronic components and manufacture of fire-fighting accessories -- reporting to him. Additionally Philip Sims and Bruce Johnson were named executive vice presidents responsible for finance and the electronics group respectively. Sims continues as treasurer and chief financial officer Premier said. Reuter | PREMIER INDUSTRIAL <PRE> NAMES EXECUTIVES |
The American Stock Exchange said it sold an options principal membership for a record 305000 dlrs 56000 dlrs more than the previous seat sold on January 19 1987 and 35000 dlrs above the previous record high in 1983. The Exchange said the current bid is 280000 dlrs and the current offer is 315000 dlrs. Reuter | AMEX HAS RECORD SEAT SALE |
International Technology Corp said it has purchased privately-held Western Emergency Service Inc in a stock transaction. Western Emergency an environmental services firm has annual sales of between one and two mln dlrs compared to International Technologys roughly 240-mln-dlr annual sales a spokesman for International Technology said. Reuter | INTERNATIONAL TECHNOLOGY <ITX> BUYS FIRM |
AST Research Inc said it nominated Richard Goeglein president and chief operating officer for Holiday Corp and Phillip Matthews chairman and chief executive officer for Echelon Sports Corp for election to its board at the May 19 meeting. Two members of the board Michael Child and Henry McCance will retired at the meeting the company said. AST Research supplies high performance IBM compatible personal computers and workstations. Reuter | AST RESEARCH INC <ASTA> NOMINATES BOARD MEMBERS |
Norfolk Southern Corp said it entered into a joint venture with Sovran Financial Corp <SOVN> to build the Sovran III Building which will be renamed Norfolk Southern Tower. Norfolk Southern said it will locate its headquarters in the tower and occupy the 17th through 21st floors. It did not disclose the financial terms of the venture. The company said construction of the building adjacent to the Royster Building in downtown Norfolk begain in October 1986. Another story has been added to the original plans making a 21-story tower. Reuter | NORFOLK SOUTHERN <NSC> IN BUILDING VENTURE |
Shr 20 cts vs 21 cts Net 783564 vs 806278 Year Shr 89 cts vs 86 cts Net 3443392 vs 3242588 Note:Full company name is Continental General Insurance Co Net includes profit from sale of securities of 155410 dlrs or four cts a share and 192896 dlrs or five cts a share respectively in 1986 qtr and year and of 12879 dlrs or nil per share in 1985 qtr. Net for 1985 year includes loss from sale of securities of 315763 dlrs or eight cts a share. Reuter | CONTINENTAL GENERAL INSURANCE <CGIC> 4TH QTR NET |
Shr loss 1.60 dlrs vs loss 45 cts Net loss 9883000 vs loss 2744000 Revs 1309000 vs 3289000 Nine mths Shr loss 2.29 dlrs vs loss 98 cts Net loss 14.1 mln vs loss 6008000 Revs 4577000 vs 11.9 mln NOTE: Current periods include loss of 7.5 mln dlrs from discontinued operations. Reuter | MARGAUX CONTROLS INC <MARGX> 3RD QTR LOSS |
Oper shr profit 21 cts vs loss 2.13 dlrs Oper net profit 456000 vs loss 2454000 Revs 16.3 mln vs 13.1 mln Year Oper shr 1.39 dlrs vs loss 2.41 dlrs Oper net profit 1815000 vs loss 2779000 Revs 58.0 mln vs 43.8 mln NOTE: 1986 4th qtr and yr oper net exclude realized investment gains of 279000 dlrs and 1013000 dlrs respectively which includes provision for income taxes of 238000 dlrs and 863000 dlrs for the periods respectively. 1986 4th qtr and yr oper net exclude 606000 dlrs or 38 cts per share and 2323000 dlrs or 1.86 dlrs per share for net operating loss carryovers. 1985 4th qtr and yr oper net exclude realized investment gains of 439000 dlrs and 666000 dlrs respectively. Reuter | MERCHANTS GROUP INC <MRCH> 4TH QTR OPER NET |
The Hitech Engineering Co and <Qume Corp> said that Hitech has agreed to design and certify certain Qume desktop laser printers for the industrial and government TEMPEST market. The TEMPEST program is a set of standards for government information processing equipment designed to minimize electromagnetic eavesdropping. The companies said that the total TEMPEST market is estimated to be around two billion dlrs. Reuter | HITECH <THEX> AND QUME IN PACT |
Continental General Insurance Co said its board of directors declared a 10 pct stock dividend on common shares payable April one to shareholders of record March 16. The company yesterday paid a quarterly cash dividend of 2-1/2 cts a share unchanged from the previous quarter to shareholders of record February 20. Reuter | CONTINENTAL GENERAL <CGIC> SETS STOCK DIVIDEND |
Shr loss 1.60 dlrs vs loss 45 cts Net loss 9883000 vs loss 2744000 Revs 1309000 vs 3289000 Nine mths Shr loss 2.29 dlrs vs loss 98 cts Net loss 14.1 mln vs loss 6008000 Revs 4577000 vs 11.9 mln Note: 1986 net losses inlcude 7507000-dlr charge from discontinued operations of building management system sold to Cetek System Inc on Jan 30 1987. Reuter | MARGAUX CONTROLS INC <MARGX> 3RD QTR DEC 28 LOSS |
American Adventure Inc said its reorganization plan was approved by the United States Bankruptcy Court for the Western District of the State of Washington. The company said the plan calls for the sale of substantially all of the assets of the company to a new company which will retain the name American Adventure Inc and be incorporated in Delaware. The transaction is scheduled for later this month when shareholders of the old company will receive one share of stock in the new company for every 10 shares they hold in the old company according to American Adventure. Reuter | AMERICAN ADVENTURE <GOAA> PLAN GET APPROVAL |
President Reagan said the United States would offer a draft treaty on medium-range missile reductions at talks with the Soviet Union in Geneva tomorrow. Reagan also said in a brief televised appearance in the White House briefing room that he was summoning Ambassador Max Kampelman and the other top U.S. arms negotiators home for consultations later this week. He said they will then return to Geneva for detailed negotiations on the arms pact. Welcoming Soviet leader Mikhail Gorbachevs offer Saturday to proceed with a treaty on Intermediate Range Nuclear forces (INF) separate from strategic and space weapons Reagan said: This removes a serious obstacle to progress towards INF reductions. To seize this new opportunity I have instructed our negotiators to begin presentation of our draft INF treaty text at Geneva tomoorrow Reagan said. He said he wanted to stress that of the issues remaining to be resolved in the negotiations on medium-range U.S. and Soviet missiles none is more important than verification ... Any agreement must be effectively verifiable. The United States has been working closely with allies and friends in Europe and Asia to develop a proposed treaty on reducing these weapons with an eye to their eventual elimination the president said. He said the treaty draft followed the formula he agreed upon with Gorbachev at their summit meeting last October in Reykjavik Iceland which was shelved when the Soviet leader insisted on linking approval of such a pact to agreement on long-range strategic missiles and anti-missile defense. I remain firmly committed to these objectives he said. He said Gorbachevs new offer Saturday ending the linkage of the three areas of negotiations removed a major barrier to agreement and was consistent with the Soviet position at the earlier Reagan-Gorbachev summit in Geneva in November 1985. Reuter | REAGAN SAYS U.S. TO OFFER MISSILE TREATY |
Harris Associates L.P. a Chicago investment advisory limited partnership said it lowered its stake in Bell Industries Inc to 1015800 shares or 18.7 pct of the total outstanding from 1083800 shares or 20.0 pct. In a filing with the Securities and Exchange Commission Harris said it sold 68000 Bell common shares between Dec 18 and Feb 20 at prices ranging from 20.25 to 25.24 dlrs each. Harris said its dealings in Bell stock are on behalf of its advisory clients. Reuter | HARRIS CUTS STAKE IN BELL INDUSTRIES <BI> |
The chairman of Goodyear Tire and Rubber Co a concern that survived a recent hostile takeover bid charged that terrorists in three-piece suits are undermining the nations industrial base. In a speech to a meeting of south Florida business executives Goodyear Chairman Robert Mercer lashed out at corporate raiders and takeover specialists accusing them of causing serious harm to the companies they target. Their interest is not in preserving and strengthening Americas industrial and providing jobs he said. Their product is simply deals and that is not a product which a country ... can base a future on. Last year Mercer fought off a takeover attempt by British industrialist Sir James Goldsmith. But Goodyears independence was preserved at a high price Mercer said. The company bought back Goldsmiths stock for 620 mln dlrs giving him a 93 mln dlr profit. Goodyear also paid him 37 mln dlrs for expenses and bought about 41 mln other shares for over two billion dlrs. In an effort to trim its new debt Goodyear closed down three plants Mercer believes otherwise could have been saved sold its motor wheel and aerospace units and reduced its payroll by 10 pct he said. Mercer who plans to testify tomorrow at a Senate hearing on a proposed bill to control corporate raiders said hostile takeovers have also hurt workers. Reuter | GOODYEAR <GT> CHAIRMAN CRITICIZES CORPORATE RAIDS |
Shr six cts vs five cts Net 459131 vs 289433 Revs 1808832 vs 1680240 Reuter | <TIVERTON PETROLEUMS LTD> NINE MTHS DEC 31 NET |
Carling OKeefe Ltd said the board decided to retain ownership of its Toronto Argonaut Football Club after considering offers to acquire the team. The company said it received a number of expressions of interest in buying the club of which two became formal offers to purchase. Neither offer met the companys unspecified requirements for selling the football club Carling said. The Toronto Argonauts are a member of the Canadian Football League. Reuter | CARLING O'KEEFE <CKB> TO RETAIN FOOTBALL CLUB |
The Commodity Credit Corporation has approved an additional 45.0 mln dlrs under its interemdiate export credit guarantee program GSM-103 for sales of U.S. wheat to Morocco the U.S. Agriculture Department said. The action increases Moroccos cumulative fiscal year 1987 program for wheat under GSM-103 to 75.0 mln dlrs. The credit terms extended for exports under the program must be in excess of three years but no more than seven years to eligible for credit coverage. All sales under this line must be registered and exported by September 30 1987. The department also said the guarantee line for sales of U.S. wheat under the Export Credit Guarantee Program GSM-102 has been decreased 45.0 mln dlrs to 60.0 mln. Reuter | MORE INTERMEDIATE U.S. WHEAT CREDITS FOR MOROCCO |
Equitable Life Leasing Corp said it named Lawrence Johnes president and chief operating officer effective April one. Johnes joined the company in November 1984 as executive vice president and chief financial officer. Edward Horman will continue as chairman and chief executive officer the company said. Reuter | EQUITABLE LIFE LEASING NAMES PRESIDENT |
Royal Resources Inc said it is calling a special shareholder meeting for April 21 seeking approval of a name change and an increase in its authorized common shares. Stockholders will be asked to change the companys name to Royal Gold Inc to better reflect the companys goal to become a gold company. Royal defines a gold company as one having more than 100000 ounces of gold production a year. In other action shareholders will be asked to approve an increase in authorized common stock to 20 mln from 15 mln shares. The shares are expected to be used for future acquisition of gold properties it said. Previously Royal said it agreed to sell its oil and gas properties to Victoria Exploration N.L. of Perth Australia for 3.65 mln dlrs. The companys holders also will be asked to approve the transaction. Reuter | ROYAL <RRCO> SEEKS NAME CHANGE, SHARE BOOST |
Qtrly div 17 cts vs 17 cts prior Pay April 13 Record March 25 Reuter | MCA INC <MCA> SETS REGULAR QTRLY PAYOUT |
Soviet winter grains could be off to a faulty start this spring after enduring an usually dry fall and cold winter weather and crop analysts said. Prospects for another near-record grain harvest in the Soviet Union appear dim at this point but it is premature to forecast any major crop problems analysts said. But the situation bears careful watching over the next six weeks and will ultimately impact the Soviet grain supply and future buying plans analysts of the Soviet Union said. From a weather standpoint you can say with certainty that the Soviets are not getting off to a good start and will have a lower crop (than last year) Gail Martell chief meteorologist for E.F. Hutton said. The next six weeks in the USSRs grain growing areas will be the crucial period that will determine the final outcome of the winter crops Martell and other analysts said. Where the crop is really made or broken is still ahead of us an Agriculture Department authority on the USSR said. The Soviet Union recently reported that nine mln hectares of winter grain will have to be reseeded due to winterkill. This would be equal to about 25 pct of the total winter crop and would be the second highest winterkill in ten years the USDA analyst said. With a timely spring Soviet farmers would probably be able to reseed the damaged acreage with spring crops but analysts noted that spring crops normally yield lower than winter crops -- sometimes as much as 30-35 pct lower. Normally winterkill is caused by inadequate snowcover combined with cold temperatures. This winter however snowcover in Soviet grain areas has generally been excellent so the bulk of winterkill analysts speculate likely has been due to a very dry fall and subsequent poor crop germination. Fall dryness may be a problem. Theres a good correlation between mediocre crops and fall dryness Martell said. Precipitation last fall was as little as 25 pct of normal in southern and northern Ukraine and below normal over the entire winter crop area she said. Recent cold temperatures in grain areas in which the snowcover has been gradually melting could also have caused problems of ice-crusting and winterkill Jim Candor senior forecaster for Accu Weather said. Livestock feed needs have probably increased because of the fall and winter analysts said. The dry fall damaged pastures the cold winter raised feed demands and a late spring would require longer off-pasture feeding they said. The Soviets are not in a desperate situation ... they dont have to buy (grains) now a USDA official said. But if the Soviets are worried about their winter crops and if they feel that last years huge crop of 210 mln tonnes was a one-time fluke brought on by perfect conditions more Soviet buying might occur to insure crop supplies he said. Bad weather during the next six weeks could push the Soviets back into the market weather analysts said. A lot of winterkill could occur during the next month and a half Martell said. Reuter | SOVIET GRAINS SEEN ENTERING SPRING ON SHAKY NOTE |
(Alcan Aluminium Ltd) is closing its aluminum smelter in Ludwigshafen West Germany this June due to high operating costs an Alcan spokesman said. The smelter near Frankfurt had annual capacity of about 44000 metric tons but was operating at about half that in January spokesman Fernand Leclerc said. Leclerc said Alcan decided it would cost too much to modernize the plant. He said there is a possibility the company will sell the smelter which currently employs 320 people before its scheduled closing. Reuter | ALCAN (AL) TO CLOSE WEST GERMAN SMELTER |