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Tenneco Inc said it will redeem on April eight all 2515400 outstanding shares of its 11 dlr cumulative preferred stock. The company said it would pay 102 dlrs a share for the preferred stock plus accrued and unpaid dividends of 24 cts a share. Tenneco said it will pay the regular quarterly dividend on the preferred on March 31 to shareholders of record February 27. Reuter | TENNECO <TGT> TO REDEEM PREFERRED STOCK |
Borden Inc called for redemption on March 23 of all its outstanding 8-1/2 pct sinking fund debentures due 2004. The company said the redemption price is at 104.55 pct of face value plus 40.61 dlrs accrued interest from October 1 1986 to the redemption date making for a total of 1086.11 dlrs for each 1000 dlrs face value. The trustee is Bank of America National Trust and Savings Association in San Francisco and the paying agent is Bankers Trust Co New York. Reuter | BORDEN INC <BN> TO REDEEM 8-1/2 PCT DEBENTURES |
Pennwalt Corp said it offered one mln shares of common stock at 63.25 dlrs a share. Pennwalt said it plans to use the net proceeds of the public offering which is managed by Goldman Sachs and Co to buy all the outstanding shares of its Third Series cumulative convertible preferred stock for about 140 mln dlrs. Goldman Sachs was granted an over-allotment option of 150000 shares the company added. Reuter | PENNWALT <PSM> OFFERS ONE MLN SHARES |
Shr four cts vs three cts Net 4505000 vs 4493000 Revs 23.3 mln vs 21.4 mln Reuter | <DEXLEIGH CORP> SIX MTHS DEC 31 NET |
Chicago Board of trade grain traders and analysts voiced a lot of interest in how farmers planned to handle their upcoming spring plantings prompting sales of new crop months of corn and oats and purchases in new crop soybeans in the futures markets. Professionals in the grains trade think that farmers will be more willing to stick with corn acres than soybeans because corn is protected by the acreage reduction program. That gives deficiency payments to farmers if corn prices stay low. Farmers can place soybeans under the loan program if they sign-up for reduced acreage but they have no price guarantees. With the price outlook for both commodities so dismal traders believe farmers will want to stick with a sure thing rather than gamble on soybeans even though the new crop soybean/corn ratio of 2.9/1 would make planting soybeans more attractive under normal circumstances. An announcement late Friday that the USDA will lift the limited cross-compliance requirement for the 1987 oats crop means farmers will be able plant an estimated two to three mln more oat acres this year than last without being penalized traders said. Here too acres some farmers may have been thinking of shifting to soybeans will now be planted with oats due to the more attractive deal from the government they added. Cotton prices are almost twice what they were just six months ago which should prompt many farmers in the South to put soybean land back into cotton. One of the reasons for the steady increase in soybean production in recent years has been a general shift of acres in traditional cotton producing regions of the South to soybeans which are easier to grow one commercial trader said. Reuter | CBT TRADERS LOOK AHEAD TO SPRING PLANTINGS |
The Senate Agriculture Committee is expected to take up a bill tomorrow that would exempt from government conservation regulations those farmers who have rotated alfalfa and other multiyear grasses and legumes with row crops committee staff said. Under current so-called sodbuster law farmers who planted alfalfa and other multiyear grasses and legumes on highly erodible land in the years 1981 through 1985 lose federal farm program benefits if they produce a row crop on that land in later years. Sen. Edward Zorinsky (D-Neb.) sponsor of the measure said recently that those crop rotating practices resulted in less erosion than the practices of many farmers who produced strictly row crops. Reuter | U.S. CONGRESS TO LOOK AT SOIL PROGRAM EXEMPTIONS |
The National Pork Board on Monday allocated 2.4 mln dlrs in discretionary funds collected from the 100 pct national checkoff program to three industry organizations. The National Pork Producers Council NPPC will receive almost 1.8 mln dlrs for use in the areas of food service consumer education and marketing. In addition the board allocated 375000 dlrs in use in Pork - The Other White Meat campaign according to a Pork Board spokesperson. The National Livestock and Meat Board will receive 644000 dlrs to continue work in educating health care officials. 120000 dlrs in matching funds will be provided to the meat board for use in the development of a better market for processed meats. The Meat Export Federation was awarded 50000 dlrs to increase the market for chilled and processed U.S. pork in Japan and Singapore. Retail stores in these two countries will be providing additional funding for the program. A total of 5000 dlrs for work in encouraging McDonalds to expand its McRib sandwich to Japan and Singapore was also awarded to the Meat export Federation. Reuter | NATIONAL PORK BOARD ALLOCATES 2.4 MLN DLRS |
Wall Street analysts said a share repurchase program announced by General Motors Corp is in part an attempt to placate shareholders angry over the recent repurchase of shares from Texan H. Ross Perot last year. He (Perot) was obviously the big trigger said analyst Joseph Phillippi of E.F. Hutton Co. There was a firestorm of criticism from people on the institutional side. Wall Street analysts said the GM buyback will boost the shares in the near term but some had reservations about the long term effects of the plan. Theyre trying to soothe irate shareholders irriated by the buyout of Ross Perot said analyst David Healy of Drexel Burnham Lambert Inc. Healy said General Motors chairman Roger Smith had been hinting at a buyback program in meetings with institutional investors. He said the plan which could cost more than five billion dlrs over four years was similar in size to Ford Motor Cos <F> repurchase program but smaller on a percentage basis than that of Chrysler Corp <C>. Healy said General Motors will have to borrow money to buy back stock on a large scale. The General Motors plan announced after a board of directors meeting in New York calls for repurchase of up to 20 pct of the common stock by the end of 1990. The GM board also authorized repurchase of up to five mln class E <GME> and class H <GMH> shares. GM shares closed at 75-5/8 up 7/8 in composite trading prior to the companys announcement. However subsequently Jefferies and Co which trades NYSE-listed issues outside regular hours said it was making a market in the shares at 77-1/2 to 78. The stock is obviously going to be strong tomorrow said Ronald Glantz analyst at Montgomery Securities. I dont know where the money (for the buyback) is coming from unless they borrow Glantz said. Their credit rating is going to fall. GM said it anticipates a decrease in automotive capital spending. Glantz believes GM could be inviting a strike this fall by going ahead with the buyback program at a time when it has 37000 employees on indefinite layoff and 11 plants marked for closing. After deciding against a profit sharing bonus for workers and buying out Perot for 743 mln dlrs this will be seen as rubbing salt into the wound Glantz said. GM must be challenging the union to make it the strike target. Glantz said he is not changing his buy recommendation on GM and expects the shares to rise. But he said he did not think the overall plan was prudent. Obviously were going to get at least an opening gap in the stock tomorrow Huttons Phillippi said. He says GM apparently believes as a result of a cost reduction program plus the falloff in capital spending levels they can handle a stock buyback of this magnitude within the confines of their cash flow. Phillippi who has been telling clients to hold GM shares mainly for income said on balance weve got to feel theyre doing something constructive. Reuter | GM <GM> BUYBACK SEEN CALMING SHAREHOLDERS |
GTX Corp said Nippon Steel Co of Japan in a move to diversify into high technology invested eight mln dlrs in GTX. Nippons move was the result of current exchange rates and the revaluation of the yen which have made the U.S. electronics industry an attractive investment opportunity for Japanese corporations according to a GTX statement. GTX noted that Nippon is expecting sales of 27 billion dlrs by 1995. Of that amount six billion dlrs is targeted for electronics. GTX located in Phoenix makes computerized systems that read drawings and transfer them into data bases. Reuter | NIPPON STEEL INVESTS 8 MLN DLRS IN GTX CORP |
Iraq said its troops repelled an overnight Iranian attack east of the southern port city of Basra scene of several Iranian Gulf war thrusts in the past two months. A high command communique said the attackers were met by heavy barrages of artillery tank and mortar fire with the support of helicopter gunship raids. Iran said it had made fresh gains in the attack southwest of the man-made Fish lake some 10 km (six miles) from Basra. Reuter | IRAQ REPORTS IRAN ATTACK REPULSED EAST OF BASRA |
FBI DIRECTOR WILLIAM WEBSTER NOMINATED TO HEAD CIA, WHITE HOUSE ANNOUNCES |
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C.T.C. Dealer Holdings Ltd said it extended its previously announced offer for 49 pct of <Canadian Tire Corp Ltd> to midnight on March 26. CTC a group of Canadian Tire dealers which already owns 17 pct of Canadian Tire is currently appealing in an Ontario court against a previously announced Ontario Securities Commission ruling blocking CTCs 272 mln dlr bid. The blocked bid did not include non-voting shareholders who hold 96 pct of Canadian Tire equity. Reuter | C.T.C. DEALER EXTENDS BID FOR CANADIAN TIRE |
President Reagan nominated Federal Bureau of Investigation Director William Webster to be director of the Central Intelligence Agency (CIA) in succession to ailing William Casey. The announcement came one day after Reagan withdrew the nomination of Deputy CIA Dirctor Robert Gates who faced opposition in the Senate because of the CIAs role in the Iran-contra scandal. Bill Webster will bring a remarkable depth and breadth of experience as well as a remarkable record of achievement to this position said Reagan in a statement read by White House spokesman Marlin Fitzwater. Reuter | REAGAN NOMINATES FBI DIRECTOR TO HEAD CIA |
Rockwell International Corp continues to expect significant improvement in 1987 results despite the somewhate disappointing performance of one of its business segments President Donald Beall told Reuters. Rockwell reported net earnings in its first quarter ended December 31 of 149.4 mln dlrs or 1.05 dlrs per share compared to 125.8 mln dlrs or 84 cts per share a year ago. Operating earnings however were off about four pct and analysts have attributed the decline to Rockwells Allen-Bradley unit which has suffered from weakness in the industrial automation market. It is in a soft market now but we are not concerned. It is moving forward with market development and is enhancing market share Beall said of Allen-Bradley unit. Beall who was in Los Angeles to address a Technology management conference said first quarter sales for the Allen-Bradley unit were flat as compared to a year earlier. He said the company does not break out operating earnings by unit on a quarterly basis. Beall said the recent trend toward cost sharing in the research and development phase of government contracts should not have a major impact on Rockwells near-term performance. He noted however the increasing focus on cost sharing could limit technological innovation. I worry that we are heading into a period of misuse of contracting approaches too early in the development stages of important military contracts Beall said adding long-term we have a very serious problem. In addition Beall told the conference the greatest competitive threat to defense contractors is in defense electronics due to the governments attempt to take advantage of competitively priced products made outside the U.S. Reuter | ROCKWELL <ROK> SEES IMPROVEMENT IN 1987 |
Intermark Inc said it plans to offer 40 mln dlrs in new debt to finance the repurchase of high-interest notes and that it agreed to sell two units. The company said it filed a registration statement with the Securities and Exchange Commission to sell 40 mln dlrs of convertible suborindated debentures due 2007. It said proceeds from the offering to be managed by Drexel Burnham Lambert Inc will be used to redeem all 20 mln dlrs face amount of its 11-7/8 pct senior subordinated debentures and to buy back some of its 13.20 pct senior notes. More | INTERMARK <IMI> PLANS REFINANCING |
President Reagan seeking to salvage his Central America policy from the Iran arms scandal said a major U.S. economic program for the region was working but needed 500 mln dlrs more than originally planned. In a report to Congress he called for immediate approval of 300 mln dlrs in new 1987 economic aid for four Central American democracies and eventual full-funding of a total economic program costing 8.9 billion dlrs through 1992. The report mandated by Congress explains how the administration intends to carry out the recommendations of the Reagan-appointed Kissinger Commission which in 1984 developed a blueprint for U.S. policy in the region that was meant to offset Reagans military aid program for Nicaraguan rebels. The commission headed by former Secretary of State Henry Kissinger had proposed a 8.4 billion dlr program through 1989. The Soviet Union and its allies have provided the Sandinista regime military hardware and sufficient economic aid to keep Nicaraguas failed economy afloat Reagan said. Assistant Secretary of State Elliott Abrams who briefed reporters said the administration will not try to link approval of military aid for the rebels known as contras with the vastly more popular economic package for the region as some Republican leaders in Congress have suggested. He also expressed optimism that despite the Iran-contra scandal Congress would approve this years final 40 mln dlr allotment in military aid for the rebels who are fighting Managuas leftist Sandinista government. Abrams admitted the administration would have its toughest fight in the Democratic-controlled House but said he believed a majority of the Senate -- led by Democrats for the first time in six years -- would back the military request. Reuter | REAGAN SEEKS MORE AID FOR CENTRAL AMERICA |
General Electric Co is raising 250 mln dlrs via an offering of notes due 1992 with a seven pct coupon and par pricing said lead manager Kidder Peabody and Co Inc. That is 30 basis points more than the yield of comparable Treasury securities. Non-callable for life the issue is rated a top-flight AAA by Moodys and Standard and Poors. Reuter | GENERAL ELECTRIC <GE> SELLS NOTES AT SEVEN PCT |
Memory Metals Inc said it received a contract from the National Aeronautics and Space Administration to research and develop joints and couplings using special alloys. The company said the two-year contract worth 500000 dlrs calls for Memory to study the joints and couplings for advanced composite materials which are strong and light but difficult to join reliably. It said the alloys are trained to remember and take on a predetermined shape and selected temperaturers. Reuter | MEMORY METALS INC <MRMT> GETS NASA CONTRACT |
Home and City Savings Bank said its board has approved formation of a holding company called Home and City Bancorp Inc subject to approval by shareholders at a special meeting expected to be held around June and to regulatory approvals. The company said shareholders will be ased to exchange their Home and City Savings sharesd for an equal number of shares in the holding company. Reuter | HOME AND CITY <HCSB> TO FORM HOLDING COMPANY |
Qtly div 1-1/2 cts vs 1-1/2 cts prior Pay March 31 Record March 13 Reuter | MICKELBERRY CORP <MBC> SETS QTLY PAYOUT |
The International Swap Dealers Association has developed the first standard form contract for use by arrangers of currency and interest rate swap transactions said Thomas Jasper the Associations co-chairman. The contract unveiled at a press conference is expected to make the 300 billion dlr a year swap market more efficient he said. The contracts wil accelerate the process and reduce the expense of swap documentation Japsper said. Privately eurobond traders estimate that about 80 pct of all new issues eventually become part of either an interest rate or currency swap. An interest rate swap occurs when two issuers usually acting through a bank middleman agree to accept each others interest payments on debt securities. Usually the issuer of a floating rate debt security swaps into fixed-rate debt and vice versa. But the obligation for repayment of the debt remains with the original borrower. Bank regulators have become concerned about the use of swaps because the middleman usually a bank takes on some portion of the risk but is not required to show it on the balance sheet as a liability and may not have sufficient capital to cushion it. Kenneth McCormick a co-chairman of the ISDA and president of Kleinwort Benson Cross Financing Inc said the Bank of England and the U.S. Federal Reserve Board were expected later today to announce joint proposals for setting minimum capital standards for counterparties in swaps. The standards are part of the recently announced convergence agreement between the two countries in which regulators have attempted to set similar capital requirements for institutions. McCormick told reporters the ISDA was concerned that a level playing field be maintained in the swaps market. He said if U.K. And U.S. Banks were required to hold more primary capital against swap transactions than is the current practice the additional costs would have to be passed on to issuers. The issuers might then choose to do business with lower-cost banks which are not subject to U.S. Or U.K. Banking rules. He said the ISDA had been working on a code of conduct for swap dealers as part of its self-regulatory effort. That code should be completed within the next few weeks he said. REUTER | SWAP DEALERS UNVEIL STANDARD CONTRACT |
Compugraphic Corp said it entered into an exclusive distribution and technology exchange pact with <Autographix Inc>. Compugraphic said the pact calls for it to distribute Autographix products to corporate and government markets in North America. It said Autographix will continue to sell its products to the commerical slide production market. The technology exchange includes joint development projects intergrating Compugraphics type and text technology with Autographix presentation graphics workstations. Reuter | COMPUGRAPHIC CORP <CPU> IN JOINT VENTURE |
USAir Group Inc said its February load factor rose to 62.2 pct from 56.9 pct a year ago. Revenue passenger miles grew 24.1 pct in February to 923.2 mln from 743.8 mln and 18.5 pct year to date to 1.80 billion from 1.52 billion the company said. Available seat miles rose 13.5 pct in February to 1.48 billion from 1.31 billion and 9.6 pct in the two months to 3.06 billion from 2.79 billion. The percentage of seats filled in the two months rose to 58.9 pct from 54.4 pct in the year-ago period it said. Reuter | USAIR <U> FEBRUARY LOAD FACTOR RISES |
The Hokkaido Bank Ltd is issuing a 30 mln dlr convertible eurobond due March 31 2002 with an indicated 2-1/4 pct coupon and priced at par lead manager Nomura International Ltd said. Terms will be fixed on March 10 involving a premium of about five pct above a six-day average. The conversion period will run from April 20 1987 to March 20 2002. The bonds will be sold in denominations of 5000 dlrs and will be listed in Luxembourg. Total fees of 2-1/2 pct include one pct for management and underwriting and 1-1/2 pct for selling including an 20 basis point praecipuum. Nomura said the bonds are callable from March 31 1990 at 104 declining by 1/2 pct per annum. There will be no calls before March 31 1992 unless the share price reaches at least 150 pct of the conversion price. REUTER | HOKKAIDO BANK ISSUES 30 MLN DLR CONVERTIBLE BOND |
Metropolitan Federal Savings and Loan Association said it has signed a letter of intent to acquire American Trust of Hendersonville Tenn. for an undisclosed amount of cash. American Trust had year-end assets of over 40 mln dlrs. Reuter | METROPOLITAN FEDERAL <MFTN> TO MAKE ACQUISITION |
Micom Systems Inc said it has doubled the data transmission range and speed of its Instalink460 voice/data multiplexor. The company said the unit now transmits data up to 23000 feet at up to 19200 bits per second and provides synchronous or asynchronous transmission in a single unit. Prices for terminal units begin at 195 dlrs and central units at 750 dlrs it added. Reuter | MICOM SYSTEMS <MICS> ENHANCES MULTIPLEXOR |
General Motors Corp said its Pontiac Division has established an interest rate support incentive program effective immediately as an alternative to its current option bonus program. The company said qualified buyers of Pontiacs may now select special finance rates of 3.9 pct on 24-month contracts 7.9 pct on 36-month contracts 8.9 pct on 48-mopnth contracts or 9.9 pct on 60-month contracts. The program is scheduled to expire April 30. Under the option bonus program which is also scheduled to expire April 30 buyers receive cash bonuses on the purchase of Pontiacs equipped with option group packages with the amount depending on the option level on each vehicle. The company said the special interst rate program applies to ann new 1986 and 1987 Pontiacs sold from dealer stock and delivered to customers during the program period. A customer may choose only one program it said. Reuter | GM'S <GM> PONTIAC HAS INTEREST RATE INCENTIVES |
Shr not given Oper loss 5900000 vs profit 9300000 Revs 105.3 mln vs 131.2 mln Year Shr not given Oper loss 21.7 mln vs profit 34.7 mln Revs 370.7 mln vs 515.1 mln Note: 67 pct owned by <British Columbia Resources Investment Corp> Note continued: 1986 qtr excludes extraordinary loss of 3.6 mln dlrs versus loss of 294.0 mln dlrs in prior year 1986 year excludes extraordinary loss of 79.1 mln dlrs versus loss 221.5 mln dlrs in prior year Reuter | <WESTAR MINING LTD> 4TH QTR LOSS |
Dow Chemical Co said it has agreed in principle to sell its industrial chemicals and plastics business interests in South Africa and related assets to a group of South African investors for undisclosed terms completing the sale of the companys South African assets Dow said it will continue to support its educational and health programs for South African blacks. Reuter | DOW CHEMICAL <DOW> TO SELL SOUTH AFRICAN UNIT |
Great Britains Austin Rover Group reported the sale of 1043 Sterling automobiles during the second half of February the first month in which the European luxury car was on sale. The company said the Sterling 825S sells for 19000 dlrs and the Sterling 825SL sells for 23900 dlrs and are aimed at the European luxury sedan market. The Sterling was designed in a joint venture with Honda Motor Corp <HMC>. The Rover Group was the former British Leland PLC company according to the company. Reuter | <AUSTIN ROVER GROUP> REPORTS SALES ON STERLINGS |
Pitney Bowes Credit Corp a unit of Pitney Bowes Inc is raising 100 mln dlrs through an offering of notes due 1992 with a 7-1/4 pct coupon and par pricing said lead manager Goldman Sachs and Co. That is 53 basis points more than the yield of comparable Treasury securities. Non-callable to maturity the issue is rated A-1 by Moodys and AA-minus by Standard and Poors. First Boston Corp co-managed the deal. Reuter | PITNEY BOWES <PBI> UNIT SELLS FIVE-YEAR NOTES |
SysteMed Inc said it has sold a Pharmacy Module to 998-bed Memorial Medical Center of Long Beach Calif. Pharmacy Module is a computerized drug information system. Value was not disclosed. Reuter | SYSTEMED <SYMD> INSTALLS PHARMACY SYSTEM |
Shr loss 6.97 dlrs vs profit 92 cts Net loss 240 mln vs profit 31.6 mln Revs 1.9 billion vs 2.5 billion NOTE: 1986 includes loss of 250 mln dlrs or 7.27 dlrs a share from discontinued operations and writedowns of holdings in Texasgulf Inc. 1985 restated. Reuter | WILLIAMS COS <WMB> YEAR LOSS |
Geonex Corp <GEOX> said BellSouth Corp <BLS> unit Southern Bell Telephone and Telegraph Cos decision to postpone the start up of new conversion assignments at Geonexs Chicago Aerial Survey unit could negatively affect its fiscal 1987 revenues. The company said it had expected higher revenues from the records conversion work but it now foresees revenues from Southern Bell work at about eight mln dlrs the same level as last fiscal year. Geonex said Southern Bell will let CAS continue work in progress and it expects to perform mechanized posting and records conversion for Southern Bell through 1989. But it added that the Southern Bell decision has forced it to pursue opportunities with other telephone companies and municipalities to replace the Southern Bell work. Reuter | GEONEX SEES SALES HURT BY PRODUCTION SHIFT |
NWA INC 4TH QTR SHR PROFIT 45 CTS VS LOSS NINE CTS |
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UK INTERVENTION BD SAYS EC SOLD 60,500 TONNES WHITE SUGAR AT REBATE 43.147 ECUS. |
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AMERICAN MOTORS AGREES TO RESUME WISCONSIN LABOR TALKS |
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Shr loss 2.03 dlrs vs loss 85 cts Net loss 10742113 vs loss 3700712 Revs 8027065 vs 8689008 Avg shrs 5.3 mln vs 4.4 mln Year Shr loss 2.45 dlrs vs loss 1.73 dlrs Net loss 11607104 vs loss 7442825 Revs 32.6 mln vs 33.2 mln Avg shrs 4.7 mln vs 4.3 mln NOTE: 1986 net loss includes a fourth quarter charge of 10.5 mln dlrs from writeoffs of certain assets. 1985 net loss includes a charge of about 2.3 mln dlrs from settlement of class action lawsuit. Reuter | (CRIME CONTROL INC) 4TH QTR NET LOSS |
European Community Farm Commissioner Frans Andriessen welcomed the agreement on details of dairy output cuts over two years and promised new measures to help farmers hurt by the drive to reduce EC surpluses. We are now in a favourable position to improve the situation in the dairy sector he told a news conference. The Commission will be able to proceed with a 3.2 billion European Currency Unit plan to dispose of over a mln tonnes of butter in EC stores as the deal should prevent major new stocks from accruing. A preliminary accord on the dairy package was reached in December but approval was held up by a row over Commission proposals that it be given power to suspend sales of surplus stocks into store. After 36 hours of negotiations ministers agreed detailed rules for such a suspension allowing it only when new public stocks of butter exceed 180000 tonnes and when market prices were sharply below those paid for sales into EC stores. Andriessen said the accord improves the atmosphere for what he said are bound to be tough discussions on his proposals for cuts in EC farm price cuts notably in cereals in the coming season. The ministers also approved a three-year 350 mln Ecu package of measures to help farmers in difficulty and pay compensation to those who opt for less intensive production methods. Andriessen said he regretted ministerial objections had forced him to withdraw sections of this package for which he had originally earmarked 1.3 billion Ecus over five years. He said he would revise and resubmit plans to allow older farmers to take early retirement either taking their land out of agricultural production or passing it to successors. The Commission is also working on proposals to enable the EC and member states to provide direct income supports to hard-pressed small farmers. Andriessen said he could not give full details but member state aid would be subject to strict criteria to avoid distortion of competition. Reuter | ANDRIESSEN HAILS EC MILK PACT, PROMISES FARM AID |
A total 60500 tonnes of current series white sugar received export rebates of a maximum 43.147 European Currency Units (Ecus) per 100 kilos at todays European Community (EC) tender the U.K. Intervention Board said. Out of this traders in the U.K. Received 43500 tonnes in the Netherlands 12000 in Denmark 4000 and in West Germany 1000 tonnes. Earlier today London and Paris traders said they expected the subsidy for the current season whites campaign for licences to end-July to be between 43.00 and 43.45 Ecus per 100 kilos. They had also forecast todays total authorised sugar tonnage export awards to be between 60000 and 80000 tonnes versus 103000 last week when the restitution was 43.699 Ecus. REUTER | U.K. INTERVENTION BOARD DETAILS EC SUGAR SALES |
Iran announced it had launched a new offensive against Iraq in the north-west area of the Gulf war front. Tehran radio monitored by the British Broadcasting Corporation said the attack was launched last night in the Haj Omran area of northern Iraq. It had already achieved considerable victories the radio said. REUTER | IRAN ANNOUNCES NEW OFFENSIVE IN GULF WAR |
Singapore Finance Minister Richard Hu in his budge speech introduced a tax package he said aims at consolidating economic recovery. He imposed higher taxes on tobacco and liquor but introduced tax incentives to promote population growth and offshore services. In order to further accelerate development of the capital market and fund management activities from the year of assessment 1988 income earned by Asian Currency Units and securities companies approved by the Monetary Authority of Singapore will be taxed at a concessionary rate of 10 pct. He said interest paid by Simex members to non-residents in respect of transactions in the deferred gold market will be exempt from withholding tax. This will make Singapore a more attractive place to carry out such transactions he added. Reuter | SINGAPORE TAX PACKAGE INTRODUCED TO AID ECONOMY |
The Italian treasury said it will issue 3000 billion lire of a new type of indexed government paper discount certificates (CTS) on March 18. Treasury Minister Giovanni Goria said at a news conference the new certificates will be heavily discounted and aimed at small investors rather than institutions. The Treasury said in a statement the annual yield of the seven-year certificates will be indexed to 50 pct of the annual yield of 12-month treasury bills. Effective annual yield after tax for the first CTS issue will be 9.66 pct. The launch of the new certificate has to be viewed in the framework of the management of the public debt as a step towards the return of a larger volume of fixed-rate issues the Treasury said. The Treasury said future CTS issues likely would be certificates longer than seven years. CTS automatically offers a portfolio diversification between fixed-rate and variable-rate investments. REUTER | ITALIAN TREASURY TO ISSUE NEW CERTIFICATES |
Shin-Etsu Chemical Co Ltd said it had developed an ultra thermal resistance rubber which can be used at 250 centigrade continuously without losing its properties. Shin-Etsu put potential demand for the product at two tonnes a month mainly for microwave ovens and as a sealant. But increasing use of the product in parts attached to car engines will raise demand and the company will boost output to 10 tonnes by March 1988 from two now he said. Reuter | JAPAN FIRM DEVELOPS ULTRA HEAT-RESISTING RUBBER |
Shr loss 76 cts vs loss 21 cts Net loss 31.9 mln vs loss 3288000 Revs 380.2 mln vs 311.5 mln Avg shrs 47.1 mln vs 41.2 mln Year Shr profit 56 cts vs profit 56 cts Net profit 43925000 vs profit 46433000 Rev 1.74 billion vs 1.60 billion Avg shares 43602000 vs 41014000 NOTE: Fourth quarter includes after tax loss from discontinued Flexi-Van operations of 33.9 mln dlrs. Primary earnings per share data calculated after deducting preferred dividend requirements. Reuter | CASTLE AND COOKE INC <CKE> 4TH QTR LOSS |
Shr loss 21 cts vs loss 14 cts Net loss 838069 vs loss 433875 Revs 1080068 vs 1793398 Avg shrs 4004826 vs 3172537 12 mths Shr loss 39 cts vs 11 cts Net loss 1387500 vs loss 334463 Revs 6456882 vs 5605680 Avg shrs 3542217 vs 3071456 Reuter | VOICEMAIL INTERNATIONAL INC 4TH QTR LOSS |
Jacobs Engineering group Inc said its shareholders approved reincorporation of the company in Delaware and certain indemnification agreements with officers and directors of the company. Jacobs is incorporated in California. Reuter | JACOBS ENGINEERING <JEC> TO REINCORPORATE |
Rhodes Inc said its February 1987 sales were 16775000 dlrs a 12.2 pct increase over Feb 1986 sales of 14954000 dlrs. Reuter | RHODES <RHD> FEBRUARY 1987 SALES INCREASE |
Oper shr loss 22 cts vs loss 13 cts Oper net loss 1712916 vs loss 769539 Revs 2292972 vs 2157895 Avg shrs 7961602 vs 6200293 Year Oper shr loss 53 cts vs loss 45 cts Oper net loss 3562151 vs 2543366 Revs 9117311 vs 8251136 Avg shrs 7169871 vs 618651 NOTE: Current year net both periods excludes charge 430649 dlrs from cumulative effect of accounting change for patents. 1986 net both periods includes charge of about 458000 dlrs from severance obligations. 1986 year net includes charge 156000 dlrs from writeoff of seed commitments. Reuter | MOLECULAR GENETICS INC <MOGN> 4TH QTR LOSS |
Lead underwriters Morgan Stanley Group Inc <MS> and Robertson Colman and Stephens said an offering of 4400000 shares of Cypress Semiconductor Corp is underway at 11.75 dlrs per share. Underwriters have been granted an option to buy up to 660000 more shares to cover overallotments. The company is selling 3080000 shares and shareholders the rest. Reuter | CYPRESS SEMICONDUCTOR <CYPR> SHARES OFFERED |
Par Pharmaceutical Inc said it has been cleared by New York Stock Exchange authorities to apply for NYSE listing and expected to be listed by April or May. The companys stock is now traded on the NASDAQ system. Reuter | PAR PHARMACEUTICAL <PARP> SEEKS NYSE LISTING |
Shr five cts vs 29 cts Net 92641 vs 466668 Sales 4448011 vs 4122301 Year Shr 34 cts vs 1.16 dlrs Net 553310 vs 1864417 Sales 16.3 mln vs 16.7 mln Reuter | MERRIMAC INDUSTRIES INC <MMAC> 4TH QTR NET |
Greece aims to reduce foreign borrowing to 1.6 or 1.7 billion dlrs this year from 2.6 billion in 1986 and will use some of the funds to make early debt servicing payments the Governor of the Bank of Greece Dimitris Halikias said. He told reporters this years borrowing forecast exceeded immediate needs but Greece wanted to take advantage of low international interest rates in order to make servicing payments at a lower cost. Greeces foreign debts totalled 16.8 billion dlrs at end-1986 up from 15.2 billion at end-1985 Halikias said. He said the extra funds available to Greece this year will go towards servicing debts falling due after 1990. He did not give figures. He said Greece was able to cut borrowing because a two-year austerity program it adopted in October 1985 cut its current account deficit to 1.75 billion dlrs last year from a record 3.3 billion in 1985. Halikias said he was fairly optimistic Greece would reach a current account deficit target of 1.25 billion dlrs this year. He said domestic demand has fallen reducing the need for imports while Greek exports are becoming more competitive. Economy Ministry figures show exports rose to 4.9 billion dlrs in the first 11 months of 1986 from 4.1 billion in the same. 1985 period while imports dipped to 10.2 billio dlrs from 11.4 billion. REUTER | GREECE PLANS TO REDUCE 1987 FOREIGN BORROWING |
U.S. JAN FACTORY ORDERS FELL 4.0 PCT, EXCLUDING DEFENCE ORDERS FELL 5.2 PCT |
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American Motors Corp said it is willing to resume negotiations with the United Auto Workers as requested by Wisconsin Governor Tommy Thompson. Negotiations began on January 21 on a contract for American Motors to build its new ZJ sports Jeep and to assemble Chrysler Corps <C> Omni and Horizon cars at its Wisconsin plant. The Chrysler cars are being phased out of production at the companys Belvidere Ill. plant to make room for another car line to be built there. While we are willing to follow the governors lead in making a final effort to reach an agreement it must be recognized that for the negotiations to be successful the local unions must honor their 1985 commitments American Motors president Joseph Cappy said. Reuter | AMERICAN MOTORS <AMO> TO RESUME LABOR TALKS |
<British Columbia Resources Investment Corp> earlier reporting higher full year operating losses said it reached agreement in principle with five lenders providing for a 360 mln dlr credit facility over a four year term. The company said the credit facility is extendable under certain circumstances with annual principal payments of five mln dlrs. The agreement is subject to certain lender approvals and completion of formal documentation. It earlier reported 1986 losses before extraordinary items rose to 26.4 mln dlrs from year-ago 7.2 mln dlrs. B.C. Resources also said dividends on its series 2 preferred shares and exchangeable preferred shares will remain suspended. However payment will be made on account of the quarterly dividend on the exchangeable preferred shares by the companys trustee from a deposit account B.C. Resources said. Sufficient funds should be available to pay full amount of the March 31 1987 dividend to exchangeable preferred shareholders with payment expected in early April to shareholders of record March 31 the company said. If future dividends are not declared after the April exchangeable preferred quarterly payout future payment will depend on the amount of dividends received from Westcoast Transmission Co <WTC> B.C. Resources said. The company said its increased fourth quarter and full year operating losses primarily resulted from lower oil prices and a four month labor shutdown at its Balmer coal mine in British Columbia. B.C. Resources also recorded a 99.9 mln dlr extraordinary loss which included losses on disposition of North Sea oil and gas interests by 67 pct owned <Westar Mining Ltd>. B.C. Resources 1986 extraordinary charge also included a writedown of its investment in Westar Petroleum. Gains on the sales of Westar Timbers Skeena and Celgar pulp mills and Terrace sawmill partially offset the extraordinary loss the company said. The company said the asset sales have eliminated B.C. Resources long term financing commitment in the North Sea and exposure to the fluctuating pulp market. It also said it cut long term debt in 1986 to 900 mln dlrs from 1.3 billion dlrs at year-end 1985 and management changes and staff cuts have significantly reduced costs. Reuter | B.C. RESOURCES HAS AGREEMENT ON CREDIT FACILITY |
The Bank of England said it had provided the money market with late assistance of around 85 mln stg. This brings the bank total help so far today to some 87 mln stg and compares with its latest forecast of a 250 mln stg shortage in the system today. REUTER | U.K. MONEY MARKET GIVEN 85 MLN STG LATE HELP |
NORTHROP CORP DEFENSE UNIT GETS 469.6 MLN DLRS AIR FORCE CONTRACT |
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New orders for manufactured goods fell 8.2 billion dlrs or 4.0 pct in January to a seasonally adjusted 194.5 billion dlrs the Commerce Department said. It was the largest one month decrease in orders since a 4.5 pct drop in May 1980 the department said. Excluding defense orders factory orders fell 5.2 pct in January after a 4.8 pct December rise. The department revised December factory orders upward to an increase of 1.6 pct from 1.2 pct. The new orders decline in January was concentrated in durable goods where orders fell 7.4 billion dlrs or 6.7 pct to 103 billion dlrs. The department had estimated on February 26 that January durable goods orders fell 7.5 pct. Orders for non-durables in January fell 700 mln dlrs or 0.8 pct to 91.5 billion dlrs. These figures compared with a December increase in durables orders of 1.5 pct and a 1.7 pct rise in non-durables. Defense orders rose 2.2 billion dlrs or 49.7 pct in January after falling 57.7 pct in December the department said. Orders for non-defense capital goods fell 17 pct in January after increasing by 5.7 pct in December. Within major industry categories orders declines were widespread the department said. Electrical machinery orders fell 19.8 pct or 3.6 billion dlrs after a 9.5 pct increase in December. Primary metals orders fell 17.7 pct or 1.9 billion dlrs following a 12.1 pct increase in December. Orders for transportation equipment were down 4.5 pct in January after falling 0.6 pct in December. Orders for non-electrical machinery were down 6.1 pct in January after falling by 7.1 pct in December. Manufacturers shipments fell 3.8 pct or 7.8 billion dlrs to a total 196.7 billion dlrs. The department said it was the largest one month fall in shipments since a 5.1 pct drop in December 1974. Unfilled orders fell 0.6 pct or 2.2 billion dlrs to a total 363 billion dlrs. Factory inventories in January rose 0.5 pct or 1.5 billion dlrs to 277.0 billion dlrs only the second rise since July and concentrated in finished goods. Reuter | U.S. FACTORY ORDERS FELL 4.0 PCT IN JANUARY |
Shr 72 cts vs 58 cts Net 4791000 vs 3803000 Sales 83.0 mln vs 72.0 mln Avg shrs 6668309 vs 6545722 1st half Shr 88 cts vs 70 cts Net 5872000 vs 4614000 Sales 141.6 mln vs 121.8 mln Avg shrs 6669488 vs 6525051 Reuter | CML GROUP INC <CMLI> 2ND QTR JAN 31 NET |
Shr 30 cts vs 21 cts Net 3358000 vs 2276000 Sales 43.3 mln vs 33.5 mln 1st half Shr 60 cts vs 42 cts Net 6654000 vs 4638000 Sales 86.6 mln vs 66.4 mln NOTE: Share adjusted for three-for-two stock split in May 1986. Reuter | DRESS BARN INC <DBRN> 2ND QTR JAN 24 NET |
TANDY CORP FEBRUARY SALES UP 12 PCT |
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Occidental Petroleum Corp said the size of its underwritten offering of common stock was increased to 33 mln shares from the proposed 30 mln. The company said the offering is being made at 30.50 dlrs a share. It was underwritten by Drexel Burnham Lambert Inc Kidder Peabody and Co and Salomon Inc. Occidental will use the proceeds to reduce its debt. The company had 165 mln shares outstanding prior to the offering. Reuter | OCCIDENTAL <OXY> SELLS 33 MLN COMMON SHARES |
<Canadian Home Shopping Network Ltd> said sales of 1149339 dlrs from the first six weeks of operation by its cable television shop at home service were above the companys expectations by a significant margin. The company said it signed up 14619 members during the period and the average purchase per member in February was 56.99 dlrs. Subscriber penetration rose to 1.7 mln households from 1.5 mln households it said. The company began broadcasting its service to more than 100 cablesystems across Canada on January 15. Reuter | CANADIAN HOME SHOPPING SALES ABOVE EXPECTATIONS |
Tenneco Inc said it will redeem all of its outstanding 11.00 dlr cumulative preference stock on April eight at 102.24 dlrs a share including accrued dividends. It said 2515400 shares of the stock will be redeemed. Reuter | TENNECO <TGT> TO REDEEM 11 DLR PREFERRED |
Williams Cos said a fourth quarter charge of 250 mln dlrs from discontinued operations and writedowns contributed to a 1986 net loss of 240 mln dlrs or 6.97 dlrs a share against earnings of 31.6 mln dlrs or 92 cts in 1985. The loss in the quarter was 232.3 mln dlrs or 6.75 dlrs against income of 10.7 mln dlrs or 31 cts a year ago. Revenues in the quarter fell to 521.1 mln dlrs from 716.9 mln and in the year fell to 1.9 billion dlrs from 2.5 billion in 1985. Williams also said the previously announced sale of its Agrico Chemical Co unit to Freeport-Mcmoran Resource Partners Ltd has cleared antitrust review and should close next week. The 1987 first quarter will include proceeds from the Agrico sale for 250 mln dlrs cash at closing plus deferred payments and proceeds of 320 mln dlrs from the sale of a stake in Peabody Holding Co completed in January. In the 1986 first quarter Williams reported net of 14.2 mln dlrs or 41 cts a share on sales of 796.4 mln dlrs. Williams said the charges in the current year were related to an ongoing restructuring. The company said the restructuring moves had improved its balance sheet and improved the outlook for future stability and growth in earnings. Operating profit at the companys Northwest Pipeline Corp unit fell 4.5 pct to 150 mln dlrs from lower sales. The Williams Natural Gas unit had operating profit of 50.5 mln dlrs compared to 90.9 mln dlrs on lower sales volumes. Profit at Williams Gas Marketing rose to 26 mln dlrs from about 22 mln and the William Pipe Line Co had operating profit of 49.4 mln dlrs versus 63.6 mln dlrs a year ago. Reuter | WILLIAMS <WMB> HAS 4TH QTR CHARGE |
Shr 13 cts vs 37 cts Net 1300000 vs 3700000 Sales 189 mln vs 163 mln Reuter | PERRY DRUG STORES INC <PDS> 1ST QTR JAN 31 NET |
Vneshtorgbank the Soviet foreign trade bank is seeking a 200 mln dlr eight-year multi-currency syndicated loan First Chicago Ltd said as arranger and sole mandated bank. The loan will pay 1/8 point over London Interbank Offered Rates (LIBOR) throughout the whole of its life. It will be repayable in semi-annual instalments starting after six years. No further details were immediately available. First Chicago later said that lead managers participating in the syndicated loan would receive a flat fee of 35 basis points. REUTER | VNESHTORGBANK SEEKS 200 MLN DLR LOAN |
Shr profit 45 cts vs loss nine cts Net profit 9.8 mln vs loss two mln Revs 1.15 billion vs 631.2 mln Year Shr profit 3.26 dlrs vs profit 3.18 dlrs Net profit 76.9 mln vs profit 73.1 mln Revs 3.59 billion vs 2.66 billion Reuter | NWA INC <NWA> 4TH QTR NET |
Eastern Co said it purchased the tooling equipment and inventory used to produce the Corbin Cabinet Lock product line from Emhart Corp for undisclosed terms. Reuter | EASTERN <EML> ACQUIRES EMHART <EMH> PRODUCT LINE |
Qtly div 11 cts vs 11 cts prior Pay April 14 Record March 17 Reuter | CAMCO INC <CAM> SETS QUARTERLY |
Venezuela plans to have a public sector foreign debt of 26.5 billion dlrs by early 1989 when the present government of President Jaime Lusinchi ends its term public finances director Jorge Marcano said. He said the target which compares with around 24.5 billion dlrs now and 29 billion at end 1983 is considered a manageable amount which will assist in development plans. The government last week reached agreement with its 13-bank advisory committee to reprogramme its 12-1/2 year rescheduling accord over 14 years with the interest margin lowered to 7/8 pct over London Interbank Offered Rate (Libor) from 1-1/8 pct. In an interview with El Universal newspaper Marcano said he thought U.S. Government pressure on banks had more to do with the unexpectedly speedy agreement than Brazils decision to suspend interest payments. I think what speeded an agreement was the attitude of the U.S. Government which urged several major banks to soften their position in various debt renegotiations. The Brazil announcement came later he said. Bankers noted Citibank had held up an agreement with Chile objecting to proposals for delayed interest payments. A pact with Chile with a one pct spread came a day before Venezuelas. Marcano said a telex sent to Venezuelas 450 creditors seeks support for the governments foreign borrowing plans which are aimed at aluminium steel and iron ore projects. We cannot rule out a trip to financial centres to explain the new agreement and present the financing programmes we have he said adding he hoped to restore credit ratings of the 1970s. Lusinchi said on Monday the government will limit foreign borrowing which would come from banks and multilateral agencies to 50 pct of interest and principal paid in the next two years. According to the restructured accord this would work out at around 2.5 billion dlrs. REUTER | VENEZUELA SETS FOREIGN DEBT TARGETS |
Pope and Talbot Inc is raising 40 mln dlrs via an offering of convertible subordinated debentures due 2012 with a six pct coupon and par pricing said sole manager Bear Stearns and Co. The debentures are convertible into the companys common stock at 51.875 dlrs per share representing a premium of 25 pct over the stock price when terms on the debt were set. Non-callable for two years the debentures are rated Ba-3 by Moodys and BB-minus by S and P. The issue was increased from an initial offering of 35 mln dlrs. Reuter | POPE AND TALBOT <POP> SELLS CONVERTIBLE DEBT |
DNC International Finance A/S is issuing a 19 billion yen zero coupon eurobond due March 17 1992 and priced at 80.9 pct lead manager Daiwa Europe Ltd said. The bond is guaranteed by Den norske Creditbank and is available in denominations of one mln yen. It will be listed in Luxembourg. Payment date is March 17. Fees comprise one pct selling concession with 55 basis points for management and underwriting combined. REUTER | DNC UNIT ISSUES 19 BILLION ZERO COUPON YEN BOND |
Hamburgische Landesbank Girozentrale is issuing a 50 mln Australian dlr eurobond due April 2 1991 paying 15 pct and priced at 101-1/2 pct lead manager Orion Royal Bank Ltd said. The non-callable bond is available in denominations of 1000 and 10000 Australian dlrs and will be listed in Luxembourg. The selling concession is 1-1/8 pct while management and underwriting combined pays 5/8 pct. The payment date is April 2. REUTER | HAMBURGISCHE L/B ISSUES AUSTRALIAN DLR EUROBOND |
West German engineering union IG Metall will hold nationwide warning strikes on March 9 to press demands for a 35-hour week and a five pct wage increase a union spokeswoman said. Further details of the time and place of the strikes will be given at a press conference on the same day she added. In mid-February IG Metall chairman Franz Steinkuehler called for the strikes after 35 unsuccessful rounds of talks. IG Metall shut down the entire auto industry for seven weeks in summer 1984 to press employers to cut the working week to 35 hours from 40. A compromise of 38.5 hours was agreed. REUTER | GERMAN ENGINEERS WILL HOLD WARNING STRIKES MARCH 9 |
Senate Banking Committee chairman William Proxmire called for curbs of hostile corporate takeovers and new restrictions on risk arbitrageurs. At the very least it is high time that we require all risk arbitrageurs to register seperately and specifically with the Securities and Exchange Commission and that we consider precluding brokerage firms and their employers from investing in or owning any securities issued by third party risk arbitrage operations Proxmire said at the start of a hearing on corporate takeovers. A burning issue must be whether there ought to be a complete seperation in the future of risk arbitrage and investment banking Proxmire said. He said he was concerned that hostile takeover attempts were hurting the economy a view shared by corporate executives who tesitified at the hearing. I believe that takeovers have become so abusive and so tilted in favor of the financial buccaneers that remedial action is required USX Corp chairman David Roderick said. For Congress to allow the takeover game to continue unchecked would be economic suicide Champion International Corp chairman Andrew Sigler added. Reuter | SENATE'S PROXMIRE URGES CURBS ON TAKEOVERS |
Spain unveils a 105 billion peseta plan this month aimed at boosting exports to reach European Community levels director-general of the INFE export institute Apolonio Ruiz Ligero said. The target is to raise exports to 20 pct of Gross Domestic Product over the next four years compared to 15 pct now he said. This is the minimum prevailing level in the EC and there is no reason why we should lag behind countries like Italy which have a similar productive structure he said. The plan calls for providing soft loans tax cuts and other fiscal benefits to exporters and raising Spains presence in international trade fairs. Consumer goods such as fashion and wine as well as traditional industrial exports will be promoted. Ruiz Ligero said INFE would double its annual budget to 20 billion pesetas to finance the four-year plan while the governments development aid fund (FAD) would provide a special 25 billion peseta grant. The plan calls for boosting exports by five to six pct in real terms this year after a 7.4 pct decline last year. Ruiz Ligero attributed this drop to a lack of demand in developing countries and a rally in domestic consumer demand which rose six pct last year after 1.9 pct in 1985. He added that 80 pct of Spains exports went to Organisation for Economic Cooperation and Development (OECD) countries. The EC accounts for 60 pct of the market and exports to the Community rose seven pct last year. The government plans to concentrate efforts on Western Europe and the U.S. The problem is convincing businessmen that exports are vital to survival in the context of EC competition he said. He said Spanish businessmen traditionally turned to the domestic market to satisfy rises in consumer demand while turning their backs on foreign markets. They have to realise their share of the home market is going to shrink with growing deregulation he said. Foreign companies are taking up positions in the domestic economy and it is it vital to secure a market share abroad. REUTER | SPAIN TO LAUNCH EXPORT DRIVE |
Morgan Keegan Inc said an offering of one common of its common shares is underway at 15.25 dlrs per share through underwriters led by First Boston Inc <FBC> A.G. Edwards and Sons Inc <AGE> and its own Morgan Keegan and Co Inc subsidiary. Underwriters have been granted an option to buy up to 150000 more shares to cover overallotments. Reuter | MORGAN KEEGAN <MOR> SHARE OFFER UNDERWAY |
French ski and tennis equipment maker <Skis Rossignol> said its 97.7-pct owned subsidiary <Skis Dynastar SA> agreed to buy Canadian ski stick and boot manufacturer <CFAS> from <Warrington Inc>. A Rossignol spokesman declined to give financial details but said turnover of CFAS was about 100 mln French francs doubling the Rossignol groups activities in the boot and stick sectors. Reuter | ROSSIGNOL UNIT BUYS CANADIAN SKI BOOT MAKER |
Volkswagen U.S. Inc a subsidiary of Volkswagen AG <VOWG.F> said car sales for the February 21 to 28 period fell 42.5 pct to 1572 from 2734 cars in the same period last year. There were seven selling days in each period. For the month of February Volkswagen said sales were off 35.2 pct to 3808 from 5873 cars in the same month last year. For the year-to-date U.S. cars sales dropped 45.7 pct to 6627 from 12194 cars in the comparable period of 1986 Volkswagen said. Reuter | VOLKSWAGEN LATE FEBRUARY U.S. SALES OFF 42.5 PCT |
The European Community is close to bankruptcy the ECs Executive Commission said in a report. In its bluntest ever warning about the state of EC finances it said The Community is at present faced with a budgetary situation which can only be characterised as being on the brink of bankruptcy. The report dated Saturday is meant to set the scene for a major change in the way the EC is financed which foreign ministers are due to start debating next month. The Commission blamed the ECs new cash crisis on the considerable reluctance of governments to pay for decisions they themselves have taken. Budgetary practices have emerged which fictitiously disguise the real impact of expenditure decisions it said. Adding that such practices were unacceptable. It put the ECs accumulated liabilities at the end of last year at 12.2 billion European Currency Units and estimated these would rise by a further five billion Ecus this year. REUTER | COMMISSION REPORT WARNS ON EC FINANCING |
Qtly div 62 cts vs 58 cts in the prior quarter Payable April 30 Record March 20 Reuter | USF AND G CORP <FG> RAISES QUARTERLY DIVIDEND |
Tandy Corp said February sales and operating revenues were up 12 pct to 244.4 mln dlrs from 218.1 mln dlrs a year before. It said sales and revenues of U.S. retail operations were up 15 pct to 210.7 mln dlrs from 183.6 mln dlrs a year before and sales of U.S. retail stores in existence for more than one year were up 13 pct. Reuter | TANDY <TAN> FEBRUARY SALES UP 12 PCT |
Ohio Mattress Co said it filed with the Securities and Exchange Commission registration statements covering a 75 mln dlr issue of convertible subordinated debentures due 2012 and an offering of four mln shares of common stock. Proceeds will be used to reduce floating-rate bank debt incurred in connection with the acquisition of 82 pct of Sealy Inc through the purchase of seven Sealy licensees in December 1986 for 262 mln dlrs in cash Ohio Mattress said. The company named Lazard Freres and Co as lead underwriter of the offerings. Reuter | OHIO MATTRESS <OMT> TO SELL CONVERTIBLE DEBT |
Moodys Investors Service Inc said it upgraded to Aaa from Aa-1 the insurance rating of General Electric Mortgage Insurance Co of Ohio a unit of General Electric Co. Moodys said this reflected the strengthening of terms in a revised net worth agreement between GEMICO and its immediate parent General Electric Credit Corp whose long-term unsecured debt is also a top-flight Aaa. However the rating agency said the agreement does not benefit other GEMICO affiliates in California Florida and North Carolina. Reuter | MOODY'S UPGRADES GE <GE> MORTGAGE INSURANCE UNIT |
U.K. One billion stg nine pct bond issue due 2002 exhausted - dealers |
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BRNF Liquidating Trust said trustees declared a 13th liquidating dividend of 1.10 dlrs per unit payable April One to holders of record of its Series A B and C certificates on March 18. The trust had paid a 12th liquidating distribution on January 15 amounting to 1.750 dlrs on Series A 1.815 dlrs on Series B and 1.765 dlrs on Series C certificates. Reuter | <BRNF LIQUIDATING TRUST> SETS DISTRIBUTIONS |
EA Engineering Science and Technology Inc said it was awarded a four-year task order contract by the U.S. Airfaorce to provide technical services under its Installation Restoration Program. The company said the contract has a potential value of 9.5 mln dlrs. EA will assess the feasibility of cleaning up hazardous waste sites at selected Air Force installations across the country and design remedial strategies for each site. Reuter | EA ENGINEERING <EACO> HAS AIR FORCE CONTRACT |
National HealthCorp LP said it has started adding 46 beds for its Greenwood Health Care Center in Greenwood S.C. and plans to add 10 beds to its Springfield Health Care Center in Springfield Tenn. The company said it has opened Colonial Hill Retirement Apartments adjacent to its Colonial Hill Health Care Center in Johnson City Tenn. and has completely remodeled National Health Care Center in Lawrenceburg Tenn. It said it is acquiring the title to that center which had been owned by Lawrence County Lions Club and called Lions Nursing Home. National said the projects will cost a total of about 3500000 dlrs. Reuter | NATRIONAL HEALTHCORP <NHC> EXPANDING CENTERS |
Digital Equipment said it is taking several initiatives designed to make it easier and more cost effecive for customers to purchase and use its products and services. The company also said it is introducing three new mid-range VAX systems. Digital stated the moves further strengthened its leadership position in the computer industry. The company said it also adjusted prices acrossall product lines to more accurately reflect performance and customer value. Digital said the new products -- the VAX 8250 VAX 8350 and VZX 8530 systems -- replace earlier models and provide up to 40 pct increased performance. It said the new systems reflect Digitals ability to sustain its present leadership in integrated networked systems. Effective today the company said it is adopting new business practices to remain responsive to the needs of customers and the rapidly changing marketplace specifically the trend towards distributed networked operations. Digital said it is instituting a discount structure based on total enterprise purchase of hardware and software. Purchases for resale are included within this simplified Discount structure. The company said it now has a one-year warranty on all hardware including VAX and PDP systems all options and peripherals. In addition customers can select to extend their hardware warranties up to three years at the time of purchase. Digital said its new software licensing policy simplifies the transfer of software within a company and includes rellicensing procedures for used equipment. Digital said it has instituted uniform quantity pricing on all product list prices with increases to reflect full system value on high functionality systems and software. Without providing any details it also said the are price reductions of up to 50 pct on selected memories and disks. Based on the analysis of product mix price adjustments will generally result in minimal net impact in costs in a typical user enterprise it added. Reuter | DIGITAL EQUIPMENT <DEC> SEEKS COST EFFECTIVENESS |
Shr 20 cts vs 15 cts Net 345970 vs 257252 Revs 14.0 mln vs 13.4 mln NOTE: Share adjusted for five pct stock dividend in December 1986. Reuter | STANLINE INC <STAN> 1ST QTR JAN 31 NET |
The Dow Chemical Co said its Engineering Thermoplastics Department will increase the selling prices of standard grades of MAGNUM ABS resins by three cts per pound. It also announced an increase of five cts per pound for performance grades of the resins. Both increases are effective April 1 1987. Reuter | DOW CHEMICAL CO <DOW> UNIT INCREASES PRICES |
Shr 12 cts vs eight cts Net 485866 vs 316193 Revs 1741508 vs 1440154 Year Shr 28 cts vs 20 cts Net 1108314 vs 778197 Revs 5073178 vs 3687160 Reuter | SWIFT ENERGY CO <SFY> 4TH QTR NET |
Northrop Corp said its defense systems division based here has been awarded production and development contracts totaling 469.6 mln dlrs to update the radar-jamming system on the U.S. Air Forces F-15 Eagle frontline tactical fighter. Work under a 333 mln dlrs production contract for a major system update of the AN/ALQ-135 internal countermeasure set is expected to be completed in April 1990 it said. A separate 136.6 mln dlrs contract for full scale development test equipment and program support for the AN/ALQ-135 receivers is included in the contract award Northrop said. Reuter | NORTHROP <NOC> GETS 469.6 MLN DLRS CONTRACT |
Qtly div 20 cts vs 20 cts prior Pay April 10 Record March 20 Reuter | BROWNING-FERRIS INDUSTRIES INC <BFI> IN PAYOUT |
Buffton Corp said it completed the purchase of B and D Industruments Inc for two mln dlrs cash and 400000 shares of common stock. It said B and D is a private company headquartered in Kansas and had sales of 4700000 dlrs in 1986. Buffton said the company designs and manufactures aviation computer display systems and engine instrumentation. Reuter | BUFFTON CORP <BUFF> BUYS B AND D INSTRUMENTS |
und Westbank AG <VHBG.F> plans to streamline its branch network to improve its distribution of financial services management board member Eberhard-Rainer Luckey said. He told a news conference on 1986 results that branches in Hamburg and Schleswig-Holstein would be merged or closed a branch in Frankfurt opened and that the bank was considering opening a branch in London. Luckey said the banks total operating profits rose nearly 29 pct in 1986. Parent bank net profit rose to 47.7 mln from 42.2 mln and the dividend remained unchanged at 12 marks. The group balance sheet including for the first time VereinWest Overseas Finance (Jersey) rose 9.2 pct to 17.9 billion marks Luckey said. The parent bank balance sheet rose 89 mln marks to 13.2 billion while business volume was almost unchanged at 14.8 billion. Credit volume eased to 9.1 billion from 9.2 billion while loans to companies rose seven pct. Foreign business and securities trading turnover also increased. Higher earnings from trading on the banks own account contributed to record operating profits. Net interest income rose on firmer interest margins by 16.1 mln marks to 381.6 mln. Net commission income rose 6.6 mln to 156.7 mln Luckey said. Foreign commercial business was influenced by a fall in West German foreign trade but earnings were still satisfactory. The banks exposure in Latin America was less than two pct of its total foreign credit and in Africa less than one pct. The bank continued to sell some of its exposure in 1986 and will also continue to stock up risk provisions he said. REUTER | VEREINS- UND WESTBANK TO REORGANIZE NETWORK |
Secretary of Commerce Malcolm Baldrige expressed concern about the continuing U.S. trade deficits with South Korea and Taiwan and said that without an adjustment in exchange rates there is little likelihood of improvement. Speaking to the Presidents Export Council an industry advisory group Baldrige said the trade deficit issue was under discussion with those countries. I feel that unless we see an exchange rate adjustment we probably wont be able to see much of a change in the large surplus that Taiwan in particular has with us he said. In a wide-ranging discussion on U.S. trade matters Baldrige also repeated U.S. concern about an attempted takeover by Japans Fujitsu company of Fairchild Computer. He said that the Japanese were resisting allowing U.S. companies into the giant computer business while at the same time attempting to acquire control of a U.S. company that does major computer business in the U.S. market. Lastly Baldrige said that the United States was hopeful that it could complete a free market agreement with Canada by the autumn but said major issues including acid rain remained unresolved. Reuter | BALDRIGE CONCERNED ABOUT KOREAN/TAIWAN DEFICITS |
Allwaste Inc said it has agreed in principle to acquire an air-moving and related industrial services company it did not identify for up to 1400000 dlrs in common stock. Reuter | ALLWASTE <ALWS> TO MAKE ACQUISITION |