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Hayes-Albion Corp said it has delayed the special meeting at which shareholders will vote on its merger into Harvard Industries Inc <HAVA> until March 24 from March 17 due to a delay in Securities and Exchange Commission clearance of proxy materials. Reuter | HAYES-ALBION <HAY> DELAYS SPECIAL MEETING |
Oper shr loss nine cts vs profit 12 cts Oper net loss 1791000 vs profit 2336000 Sales 242.9 mln vs 225.8 mln Year Oper shr profit 15 cts vs loss 17 cts Oper net profit 2925000 vs loss 3324000 Sales 1.01 billion vs 875.6 mln NOTE: Net includes discontinued operations gain 2437000 dlrs vs loss 190.0 mln dlrs in quarter and losses 75.6 mln dlrs vs 227.7 mln dlrs in year. Net includes loss 294000 dlrs vs nil in quarter and gain 224.8 mln dlrs vs loss 1750000 dlrs in year from settlement of liabilities under plan of reorganization from Chapter 11 bankruptcy. 1986 quarter net includes 2300000 dlr provision for loss on future store closings offset by reduction in pension liabilities. Reuter | GROSSMAN'S INC <GROS> 4TH QTR LOSS |
Eastman Kodak Co said it filed a shelf registration with the Securities and Exchange commission for debt securities totaling 900 mln dlrs. The company which has 576000 dlrs remaining from a shelf registration of 450 mln dlrs last June said the borrowing is intended for general corporate purposes including the refinancing of existing indebtedness additions to working capital capital expenditures and acquisitions. Kodak said there is no specific need at this time. Reuter | EASTMAN KODAK <EK> FILES FOR DEBT OFFERING |
Centerior Energy Corps Cleveland Electric Illuminating Co subsidiary sdaid it will redeem on April Three all 75 mln dlrs of its 16-5/8 pct first mortgage bonds due 2012 at 1120 dlrs per 1000 dlrs principal amount plus accrued interest of 14.78 dlrs. It said funds for the redemption came from the sale of 300 mln dlrs of 9-3/8 pct first mortgage bonds due 2017 in February. Reuter | CENTERIOR ENERGY CORP <CX> REDEEMING BONDS |
The Department of Transportation said that an administrative law judge had recommended that small package service between the United States and Tokyo be granted to Federal Express Corp <FDX>. A final decision by the department is expected within 90 days. In addition the department said the law judge recommended that backup service be granted to <Orion Air Inc>. The order if finally approved would be for five years in the case of Federal and one year in the case of Orion. Reuter | FEDERAL EXPRESS TENTATIVELY GETS US/TOKYO ROUTE |
Comdata Network Inc said it is in active talks with other parties on a possible acquisition or recapitalization of Comdata in an effort to maximize shareholder values. Comdata said <Rosewood Financial Inc> together with <Cypress Partners LP> and <Driftwood Ltd> have acquired over five pct of Comdata stock and Rosewood intends to acquire over 15 pct of Comdata. Comdata said it has not yet reached a definitive agreement with <Mason Best Co> for the previously-announced recapitalization and self-tender offer. Reuter | COMDATA NETWORK <CDN> IN NEW ACQUISITION TALKS |
Northgate Exploration Ltd said year-end 1986 ore reserves at its two Chibougamau mines in Quebec fell to 8141150 short tons grading 0.077 ounce gold a ton and 1.63 pct copper from year-earlier 8462000 tons grading 0.077 ounce gold ton and 1.67 pct copper. The company said it launched a 700000 dlr exploration program at the mines to increase production and ensure the operations continued long life. Ore production totaled 650653 tons last year it said estimating year-end reserves contained about 627000 ounces of gold and 265 mln pounds of copper. Reuter | NORTHGATE <NGX> QUEBEC ORE RESERVES DECLINE |
Shr loss 51 cts vs loss 44 cts Net loss 1.8 mln vs loss 1.5 mln Revs 3.1 vs 5.4 mln Nine months Shr loss 1.16 dlrs vs loss 1.33 dlrs Net loss 4.0 mln vs loss 4.6 mln Revs 9.9 mln vs 12.3 mln Reuter | WEBCOR ELECTRONICS INC <WER> 3RD QTR DEC 31 |
Porsche Cars North America said it sold 1815 cars during February down from 2129 cars during February of 1986. The company said sales since the beginning of the year totaled 3469 down from 3862 a year earlier. Reuter | PORSCHE CARS NORTH AMERICA REPORTS LOWER SALES |
Shr 12 cts vs 10 cts Net 613986 vs 534093 Revs 9494570 vs 7591564 Year Shr 41 cts vs 59 cts Net 2151130 vs 3111317 Revs 35.9 mln vs 33.7 mln NOTE: 1986 net includes gains from discontinued operations equal to three cts compared with nine cts in 1985. Reuter | COMMUNICATIONS SYSTEMS INC <CSII> 4TH QTR NET |
Turkey expects a 1986 balance of payments deficit of 1.5 billion dlrs well over target but is taking steps to improve its performance in this and other fields Ali Tigrel director of economic planning at the State Planning Organisation said. He told Reuters the shortfall was a direct consequence of economic growth of nearly eight pct up from 5.1 pct in 1985 which he said resulted mostly from a surge in domestic demand. Tigrel acknowledged a need to cut inflation further after a drop of more than 12 points to 24.6 pct in the Treasury wholesale index last year. This years target of 20 pct might be attainable but the economic management will have to be careful he said. Tigrel whose department produces the annual programme which is central to the governments economic planning said Turkeys creditworthiness was at risk over the current account shortfall originally targeted at 695 mln dlrs. We must alleviate the current account substantially to sustain the creditworthiness that we have managed to secure over the last five years he added. His comment echoed last Octobers Organisation for Economic Cooperation and Development report on Turkey which said Ankaras case for more medium-term financing on better terms would look better if inflation were lower and the current account deficit cut or turned into a surplus. In 1987 we must reduce the rate of growth in public sector investments we must reduce the public sector deficit as a percentage of GNP and we must achieve a very visible improvement in the current account deficit he said. Tigrel said a surge in public sector spending last year was also to blame for the high deficits. Appropriations to government departments had been cut by eight pct since the budget was passed in December and foreign borrowing by municipalities had been restrained. We are trying make sure that public bodies stick to the investment programme and do not exceed their appropriations he said. It was hoped to bring the public sector borrowing requirement down to five pct of GNP in 1987 from an estimated 5.6 pct in 1986. More modest GNP growth of five pct for 1987 was also targeted Tigrel said. Measures were being taken to encourage exports and production incentives were being considered. We must try to make sure that more capacity is injected into the Turkish economy in the coming years. The promotion policy is geared to make sure that both foreign investment and local private capital come more into play as far as manufacturing capacity is concerned Tigrel said. He said the process of structural adjustment of the Turkish economy to free market policies begun in 1980 was still under way. Trade had been liberalised and a freer exchange rate policy applied but he acknowledged there was more to be done in a country where the state still dominates industry and the currency is only partially convertible. REUTER | TURKEY SEES 1.5 BILLION DLR DEFICIT IN 1986 |
GENERAL MOTORS LATE FEBRUARY CAR SALES OFF 8.6 PCT |
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AMERICAN MOTORS LATE FEBRUARY U.S. CAR SALES OFF 65 PCT |
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United Auto Workers vice president Marc Stepp said he will meet with reporters this afternoon on the unions negotiations with American Motors Corp. A union spokesman was not immediately available to discuss the content of the press conference set to begin at 1530 EST. Both the union and American Motors this week have voiced willingness to return to the negotiating table to try to hammer out a contract for UAW workers at the automakers Kenosha Wis. facility after talks broke down last weekend. An American Motors spokesman said no time or place has yet been set to resume the talks. Reuter | UAW TO MEET WITH PRESS ON AMERICAN MOTORS <AMO> |
FORD CANADA FEBRUARY CAR SALES FALL TO 13,734 UNITS FROM YEAR-AGO 14,589 |
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Drilling for oil in California is likely to continue at last years sharply reduced levels despite recent gains in crude oil prices industry analysts said. Because much of the crude oil in California fields is thick heavy and expensive to extract oil prices would have to increase to near 1985s levels before any significant recovery is seen in drilling they said. Companies will probably only drill their best prospects said John Curti an analyst with Birr Wilson Securities Inc. Few new wells now are being drilled. Only 33 rigs about one-quarter of the total available were drilling for oil onshore in California last week compared to about 70 last year said Bill Bolster of Munger Oil Information Services which tracks California drilling activity. Its in the dregs right now said Bolster of the states drilling activity. Current prices are not enough to justify increased drilling said Ed Malmgreen of the California Independent Producers Association. While an Organization of Petroleum Exporting Countries pact to curb production boosted oil prices early this year prices eventually fell. Prices for Californias marker grade Line 63 blend have slumped about 20 pct in the last month to 14 dlrs from a high of about 17 dlrs. More than half of Californias oil comes from stripper wells those producing less than 10 barrels a day and that much of that oil costs between 18 and 25 dlrs a barrel to extract Malmgreen said. Its not unusual for a stripper well to cost 18 dlrs Malmgreen said. Many stripper wells along the southern California coast produce eight times as much water as crude oil and inland wells frequently require the use of steam injection to spur extraction of the thick heavy oil he said. The outlook for future production in California is clouded by a lack of exploratory drilling now analysts said. In the heart of Californias oil patch Kern County which produces about two-thirds of the states oil exploratory drilling has slowed to a crawl. Only 55 exploratory wells were drilled in Kern County in 1986 compared to 137 in 1985 according to David Mitchell of the state energy commission. So far this year only five exploratory wells have been drilled. I dont think theyll even get to what they did last year Mitchell said. No pickup in exploratory drilling is likely for the rest of the decade Mitchell said. Along with the fall in drilling has come a decrease in the number of producing wells and overall production. Between February and October of 1986 the number of producing oil wells in California fell 14 pct to 43521 from more than 50000 said Bill Guerard of the California Energy Commission. In line with that decrease Californias crude oil output fell about 10 pct last year due to low oil prices and is expected to remain at that lower level analysts said. Between February and October 1986 Californias crude oil production slipped from an all-time high of 1.185 mln barrels per day to 1.066 mln bpd Guerard said. Total estimated crude oil production in California for 1986 was 408 mln bbls compared with 424 mln bbls in 1985 and 405 mln bbl in 1983 according to the California Department of Conservation. Production in 1987 will probably hold around 1986 levels Guerard said. Reuter | ENERGY/CALIFORNIA OIL PRODUCTION |
President Reagan angrily denounced press reports that his wife Nancy is running the government as despicable fiction. He said the reports had touched a nerve. Reagan made the comments at a photo session with William Webster his nominee as head of the Central Intelligence Agency. The president and Mrs Reagan celebrate their 35th wedding anniversary today as Reagan prepares to make an address to the nation on the Iran-contra scandal tonight. When a reporter asked about Mrs Reagans role in government Reagan replied: I think this is being bandied by the press. That is fiction and I think it is despicable fiction. And a lot of people ought to be ashamed of themselves. Pressed for further comment Reagan said The idea that she is involved in governmental decisions and so forth... and being a kind of a dragon lady there is nothing to that. Reagan flatly denied that that his wife had had a role in the departure from the White House last Friday of Reagans chief of staff Donald Regan as has been widely reported. Regans successor former senator Howard Baker was in the room as Reagan made his comments. Reuter | REAGAN DENOUNCES REPORTS OF WIFE'S ROLE |
General Motors Corp said car sales for February 21 through 28 were off 8.6 pct to 98036 from 107207 a year before. The company said truck sales for the period were up 10.9 pct to 42593 from 38402 a year before. It said for the full month car sales were off 20.7 pct to 286771 from 361785 a year before and truck sales were off 4.9 pct to 118245 from 124336. GM said year-to-date car sales were off 29.3 pct to 529206 from 748119 a year before and truck sales were off 13.3 pct to 207241 from 238955. GM said February sales showed improvement from the low point reached in January and it expects the improvement to continue in coming months. It said economic factors including positive consumer attitudes about buying new vehicles remain favorable. GM noted that its divisions are offering a variety of car and truck incentive programs this year. Reuter | GM <GM> LATE FEBRUARY CAR SALES OFF 8.6 PCT |
Standard Oil Co said the Friendswood Development Number One well in the Fostoria or Deep Wilcox Field of Montgomery County Texas flowed 4500000 cubic feet of natural gas per day from depths of 14252 to 14486 feet through a 14/64 inch choke. It said it has contracted for Perry Gas Cos Inc to purchase natural gas from the well and Perry will build a four-inch gathering pipeline to connect to Natural Gas Pipeline Cos transmission line. Reuter | STANDARD OIL <SRD> IN TEXAS NATURAL GAS FIND |
Webcor Electronics Inc said it remains in technical and payment default under its revolving credit agreement and in technical default under certain other obligations to its lender. Although its lender has not enforced its right to demand payment of the debt in full it continues to reserve its right to do so at any time it said. Earlier Webcor reported a third quarter net loss of 1.8 mln dlrs and nine months net loss of 4.0 mln dlrs. Reuter | WEBCOR ELECTRONICS <WER> IN TECHNICAL DEFAULT |
General Motors Corp said it will offer a special finance rate support program on some Oldsmobile cars. General Motors said that as an alternative to its ongoing rate option sale program buyers can opt for a special finance rate. Buyers may select 3.9 pct financing on 24 month contracts a 7.9 pct interest rate on 36 month contracts 8.9 pct on 48 month term loans or 9.9 pct on 60 month loans. The new incentive program which ends April 30 applies to deliveries of eligible models from stock. Models covered by the program include Calais Cutless Ciera and Cutless Supreme Custom Cruiser Delta 88 and Firenza. Reuter | GM'S <GM> OLDSMOBILE SETS INCENTIVE PROGRAM |
First Savings Bank of Florida said it expects a special shareholder meeting to be held around May 21 to consider the proposed merger into Gibraltar Financial Corp <GFC>. It said the annual meeting will be held April 30 to elect two directors and ratify the appointment of auditors. Reuter | FIRST SAVINGS BANK FLORIDA <FSBF> SETS MEETING |
The government daily Izvestia said a considerable amount of Soviet winter crops need to be reseeded and the state 1987 grain harvest target of 232 mln tonnes will not be easy to fulfil. Without giving figures the newspaper said: A considerable part of the winter crops must be reseeded but that creates extra effort in the fields in spring. The Soviet Union has previously said nine mln hectares of winter grain will have to be reseeded because of winterkill. A U.S. Department of Agriculture analyst in Washington has said the figure of nine mln hectares would equal about 25 pct of the total winter crop and would be the second highest winterkill in 10 years. The planned task of bringing in no less than 232 mln tonnes of grain is not simple Izvestia said. This weeks sudden fall in temperatures has affected large parts of the country and has caused fieldwork to stop in the Ukraine it said adding that temperatures fell to as low as minus 30 centigrade in Byelorussia. Reuter | IZVESTIA SAYS SOVIET WINTER CROPS NEED RESEEDING |
<Morrison Petroleums Ltd> said it will have a net gain after taxes of 1580000 dlrs or 29 cts a share from the 2750000 dlr sale of 200 acres of real estate in Oshawa Ontario. Proceeds increased working capital to 12.0 mln dlrs and were invested in short term deposits the company said. Reuter | MORRISON PETROLEUMS HAS GAIN FROM PROPERTY SALE |
Central Bank director Daniel Marx said Argentinas creditor banks were divided on the countrys request for rescheduling its foreign debt. There are difficulties (among the banks) to reach an agreement and find a unanimous decision Marx told a local radio station in a telephone interview from New York. Argentinas great efforts to comply with obligations on its 50 billion dlr foreign debt should be met by a reduction in interest rates on the part of the creditor banks he said. Marx is in New York with Argentinas debt negotiating team holding talks with the creditor banks steering committee. Marx said the talks should not drag on. If Venezuela and Mexico have concluded their negotiations we want to end (ours) in a reasonable manner and as soon as possible he said. Economy ministry sources said the steering committee was expected today to make a counter-proposal not unlike that made by Treasury Secretary Mario Brodersohn at the start of the talks between the two parties. Argentina is seeking a 2.15 billion dlr loan to meet four pct growth targets in 1987. It also wants lower interest rates on its foreign debt. The United States said last week it would support a 500 mln dlr bridging loan for Argentina. REUTER | ARGENTINA'S CREDITORS SAID DIVIDED OVER DEBT ISSUE |
Safeway Stores Inc said it agreed to sell the assets and operations of its Salt Lake City Division to Bormans Inc under undisclosed terms. The division includes 60 operating supermarkets in five states most of which are in Utah Idaho and Wyoming together with distribution and manufacturing facilities Safeway said. It said sales for the division for the year ended January three were about 350 mln dlrs. Safeway also said the transaction is subject to Bormans ability to obtain financing and to successfully negotiate new labor agreements with the various unions involved. Reuter | BORMAN'S <BRF> TO BUY SAFEWAY'S UTAH DIVISION |
Ford Motor Co of Canada 90 pct-owned by Ford Motor Co <F> said February car sales fell six pct to 13734 units from year-earlier 14589 units. Year-to-date car sales fell one pct to 25534 units from 25851 units the previous year it said. Reuter | FORD CANADA <FC> FEBRUARY CAR SALES OFF SIX PCT |
Fisher Foods Inc said <American Financial Corp> has sold its 1500000 Fishers shares a 44 pct interest to a group consisting of <American Seaway Foods Inc> <Rini Supermarkets Inc> and <Rego Supermarkets Inc>. The company said in connection with the transaction all five American Financial representatives have resigned from its board. Reuter | FISHER FOODS <FHR> SAYS STAKE IN FIRM SOLD |
American Motors Corp said its U.S. car sales for the February 21 to 28 period dropped 65 pct to 926 cars from 2672 cars in the same period a year ago. There were seven selling days in both periods. Domestic sales for the month were off 61 pct to 2501 cars from 6472 cars in February last year American Motors said. Year-to-date U.S. car sales declined 62 pct to 4922 from 12861 cars in the comparable period of 1986 the automaker said. American Motors is controlled by Renault of France. Reuter | AMERICAN MOTORS <AMO> LATE FEBRUARY SALES OFF |
Home Intensive Care Inc said it extended by 11 days the period of time during which its callable March cumulative convertible preferred stock may be converted at the current conversion ratio of 2.2 shares of common stock for every preferred share. The conversion ratio is now in effect until the close of business on March 16 after which the ratio drops to two shares of common stock for every preferred share until March 5 1988. Reuter | HOME INTENSIVE <KDNY> EXTENDS CONVERSION RIGHTS |
The U.S. Senate Agriculture Committee approved a measure that would exempt farmers who planted alfalfa or other multiyear grasses and legumes between 1981 and 1985 from a federal conservation requirement. Sen. Edward Zorinsky D-Neb. said his bill would restore equity under federal sodbuster rules which currently deny farm program benefits to farmers who between 1981 and 1985 planted alfalfa and other multiyear grasses and legumes without interrupting the plantings with a row crop. An official from a leading conservation group who asked not to be identified said the panels move was an unfortunate first action because it could lead to the exemption of potentially millions of acres from the sod buster regulations established under the 1985 farm bill. Reuter | U.S. SENATE PANEL MAKES CONSERVATION EXEMPTION |
AVX Corp said it has entered a two mln dlr settlement with the U.S. government and the Commonwealth of Massachusetts to pay for damage claims against the company for contaminating the New Bedford Mass. harbor with polychloride biphenyls (PCBs). As part of the agreement AVX said the government and Massachusetts have agreed to release it from further liabilities for polluting the harbor. AVX said it has fully provided for the settlements cost in its 1986 financial statements. AVX a multilayer ceramic capacitor producer said the government had estimated damages to the harbor at about 50 mln dlrs. But it added the government the state and the Environmental Protection Agency are still awaiting the completion of studies to determine whether they will recommend a cleanup and what it will cost. The studies will be completed next year AVX added. AVX said it is one of five defendents involved in the pollution litigation. AVX said it is also engaged in litigation with its insurers to determine the applicability and the amount of coverage available to indemnify the company for payment of the the two mln dlr settlement or its share of the cleanup if any. Reuter | AVX <AVX> REACHES POLLUTION SETTLEMENT |
Shr profit three cts vs loss nine cts Net profit 103664 vs loss 326675 Revs 7.6 mln vs 6.9 mln Six months Shr loss two cts vs loss 15 cts Net loss 78246 vs loss 522868 Revs 14.7 mln vs 12.9 mln NOTE:1986 net includes gain of 43185 or one cts in 2nd qtr and six months for discount on early long-term debt repayment. Reuter | PICO PRODUCTS INC <PPI> 2ND QTR JAN 31 |
Wall Street traders said the stock of Outboard Marine Corp was rising on a rumor over a cable television program that Outboard is a likely takeover target of Sun Chemical Corp <SNL>. Outboard was up 3-1/8 to 34-5/8. On Tuesday it rose 1-3/8 to 31-1/2 Tuesday. A report on Cable News Network today said Sun Chemical has 4.9 pct of Outboard and is conducting a study on whether to go for control of the whole company. An Outboard Marine spokesman would not comment on the rumor. The cable program said a buyout of Outboard would be for up to 40 dlrs a share or for a total of 680 mln dlrs. A spokesman for Sun Chemical was not immediately available. Outboard Marine last June adopted a shareholder rights plan that will be triggered when a person or group acquires beneficial ownership of 20 pct or more of its common or begins a tender offer that would result in 30 pct ownership. Wayne Jones vice president at Outboard for strategic planning said management wants to stay independent. We are not trying to sell the company. We are proceeding with our strategic plans he said. That plan includes integrating five boat companies that Outboard Marine has bought since the middle of December. Jones said all five will cost between 100 mln dlrs to 120 mln dlrs. An analyst who wanted anonymity said 40 dlrs a share is a decent price for outboard. A bdding war to 50 or 60 dlrs a share is stretching it. Maybe 45 dlrs a share tops he said. Outboard which has 17 mln shares outstanding is in registration for a two mln common share offering with Morgan Stanley Inc. It makes sense the analyst said for Sun Chemical to strike before the offering is underway. Reuter | OUTBOARD MARINE <OM> RISING ON TAKEOVER RUMOR |
Cadema Corp said it entered a letter of intent with a national underwriting firm for an offering of five mln dlrs worth of convertible preferred stock. Cadema said it will file a registration statement with the Securities and Exchange Commission later this month for the offering. Proceeds will be used to fund clinical trials for the companys treatments for rheumatoid arthritis and metastatic bone cancer. It also said it increased the size of its board to six from five members. Reuter | CADEMA <CDMA> PLANS PREFERRED OFFERING |
Audiotronics Corp said it registered with the Securities and Exchange Commission to offer five mln dlrs of convertible subordinated debentures due 2002. H.J. Meyers and Co Inc will manage the underwriting of the offer. The company said proceeds will be used to repay bank debt and for working capital. Reuter | AUDIOTRONICS CORP <ADO> TO OFFER DEBT |
General Motors Corp said car sales for February 21 through 28 were off 8.6 pct to 98036 from 107207 a year before. The company said truck sales for the period were up 10.9 pct to 42593 from 38402 a year before. It said for the full month car sales were off 20.7 pct to 286771 from 361785 a year before and truck sales were off 4.9 pct to 118245 from 124336. GM said year-to-date car sales were off 29.3 pct to 529206 from 748119 a year before and truck sales were off 13.3 pct to 207241 from 238955. GM said February sales showed improvement from the low point reached in January and it expects the improvement to continue in coming months. Reuter | GM LATE FEBRUARY CAR SALES OFF 8.6 PCT |
Oper shr 36 cts vs 39 cts Oper net 1391000 vs 1485000 Revs 61.6 mln vs 58.5 mln YEAR Oper shr 70 cts vs 1.16 dlrs Oper net 2677000 vs 4410000 Revs 207.6 mln vs 200.2 mln Note: 1986 net excludes extraordinary loss of 297000 dlrs or eight cts shr vs yr-ago gain of 514000 dlrs or 13 cts shr. Reuter | <ALGOMA CENTRAL RAILWAY> 4TH QTR NET |
Oper shr profit four cts vs loss four cts Oper net profit 151448 vs loss 170709 Sales 11.5 mln vs 9581406 NOTE: Prior year net includes 123650 dlr tax credit but excludes 52409 dlr gain on early debt retirement. Reuter | GENOVA INC <GNVA> 1ST QTR DEC 27 NET |
French soft wheat exports to other European Community countries fell 18 pct to 4.13 mln tonnes in the first seven months of the 1986/87 season to January compared with 5.04 mln in the same 1985/86 period the French Cereals Intervention Office (ONIC) said. According to latest ONIC statistics the main buyers were Italy with 1.89 mln against 1.63 mln in the same 1985/86 period West Germany 480450 tonnes against 717689 the Netherlands 462048 (532299) and Belgium 417887 tonnes (919337). British and Greek imports of French soft wheat during this period were below year-ago levels. Between July 1 last year and January 31 Britain bought 274665 tonnes against 642800 tonnes ONIC figures showed. But Spanish purchases were up sharply at 258507 tonnes against 2751 tonnes in the same 1985/86 period and Portugal bought 37599 tonnes compared with zero. ONIC said the drop in French exports to other Community countries was due to British competition. Reuter | FRENCH WHEAT EXPORTS TO EC FALL |
American Motors Corp said its U.S. car sales for the February 21 to 28 period dropped 65 pct to 926 cars from 2672 cars in the same period a year ago. There were seven selling days in both periods. Domestic sales for the month were off 61 pct to 2501 cars from 6472 cars in February last year American Motors said. Year-to-date U.S. car sales declined 62 pct to 4922 from 12861 cars in the comparable period of 1986 the automaker said. American Motors is controlled by Renault of France. Reuter | AMERICAN MOTORS LATE FEBRUARY SALES OFF |
Shr 61 cts vs 18 cts Net 670000 vs 194000 Revs 10.7 mln vs 10.4 mln Six months Shr 73 cts vs 35 cts Net 798000 vs 377000 Revs 19.5 mln vs 19.8 mln NOTE:1987 net includes gain of 362000 dlrs in 2nd qtr and 431000 dlrs in six months from tax loss carryforward. Reuter | SUPREME EQUIPMENT/SYSTEMS CORP <SEQP> 2ND QTR |
Oper shr loss five cts vs loss 24 cts Oper net loss 165000 vs loss 802000 Revs 4988000 vs 3101000 Year Oper shr loss 13 cts vs loss 1.33 dlrs Oper net loss 454000 vs loss 4407000 Revs 23.1 mln vs 8937000 NOTE: Results restated for discontinued operations. 1986 net both periods excludes 143000 dlr tax credit. Net excludes gains from discontinued pipelines and terminals operations of 216000 dlrs vs 99000 dlrs in quarter and 527000 dlrs vs 296000 dlrs in year. Reuter | GULF APPLIED TECHNOLOGIES INC <GATS> 4TH QTR |
Shr 55 cts vs 80 cts Net 2517443 vs 3633217 Revs 79.1 mln vs 76.3 mln 12 mths Shr 2.57 dlrs vs 3.41 dlrs Net 11.7 mln vs 15.4 mln Revs 305.1 mln vs 314.3 mln Reuter | VAN DORN CO <VDC> 4TH QTR NET |
Gulf Applied Technologies Inc said it will report a gain of 2900000 dlrs or 89 cts per share on the previously-announced sale of its pipelines and terminals segment in first quarter results. Reuter | GULF APPLIED <GATS> TO HAVE GAIN FROM SALE |
Ford Motor Co of Canada 90 pct-owned by Ford Motor Co said February car sales fell six pct to 13734 units from year-earlier 14589 units. Year-to-date car sales fell one pct to 25534 units from 25851 units the previous year it said. Reuter | FORD CANADA FEBRUARY CAR SALES OFF SIX PCT |
HCC Industries said its board has authorized the purchase from time to time of up to 150000 shares of the companys common stock. Currently HCC has about 1775000 shares outstanding. The company said although the purchases will reduce working capital it believes its liquidity will not be impaired. Reuter | HHC INDUSTRIES <HCCI> TO REPURCHASE STOCK |
Qtly div 17 cts vs 17 cts prior Pay March 31 Record March 17 Reuter | FIELDCREST CANNON INC <FLD> SETS QUARTERLY |
Varian Associates Inc said it acquired all the outstanding stock of closely-held Analytichem International Inc for an undisclosed amount of cash. Analytichem based in Harbor City Calif. is a supplier of bonded phase preparation products used to prepare chemical samples for analysis Varian said. Reuter | VARIAN <VAR> BUYS ANALYTICHEM INTERNATIONAL |
Oper shr loss 1.05 dlrs vs profit nine cts Oper net loss 30.5 mln vs profit 3930000 Revs 23.9 mln vs 45.6 mln 12 mths Oper shr loss 5.30 dlrs vs profit 34 cts Oper net loss 155.8 mln vs profit 16.0 mln Revs 113.7 mln vs 178.8 mln Note: Oper excludes loss from discontinued operations of 9127000 dlrs vs 12.4 mln dlrs for qtr and 28.4 mln dlrs vs 960000 dlrs for 12 mths. Note: Oper includes writedown of offshore drilling equipment of 5070000 dlrs for qtr and 27.9 mln dlrs for 12 mths. Also includes writedowns of oil and gas assets and tubular goods inventory of 82.2 mln dlrs and 4246000 dlrs respectively for 12 mths. Reuter | KANEB SERVICES INC <KAB> 4TH QTR LOSS |
Shr 33 cts vs 60 cts Net 1.1 mln vs 1.7 mln Revs 11.7 mln vs 10.6 mln NOTE:Full name is Suspensions and Parts Industries Ltd. Reuter | SUSPENSIONS/PARTS INDUSTRIES LTD <SPILF> YEAR |
The size of French 1986/87 carryover barley stocks estimated at 1.72 mln tonnes compared with 700000 tonnes in 1985/86 is worrying French Cereals Intervention Office (ONIC) Director Bernard Vieux said. He told journalists these estimates were unchanged at the end of February from the previous month while export forecasts were lowered to 4.5 mln tonnes from 5.76 mln in 1985/86. Vieux called on the EC Commission to help by awarding a larger volume of export certificates and said if no outlets are opened for French barley a large amount could be put into intervention. A small amount of French barley has already been put into intervention Vieux said without detailing the amount. The outlook for French maize is better with 1986/87 exports to non-EC countries now put at 700000 tonnes against 200000 tonnes at the end of January and against 155000 tonnes in 1985/86. The higher estimate is due to the EC Commissions decision to hold special export tenders for French maize he said. Reuter | ESTIMATED FRENCH BARLEY STOCKS WORRYING - ONIC |
Qtly div six cts vs six cts prior Pay April Two Record March 18 Reuter | MITCHELL ENERGY AND DEVELOPMENT CORP <MND>PAYOUT |
Hyundai Motor America said February sales of its Excel subcompact car totaled 18656. Hyundai began selling the car in the U.S. on February 20 1986. Sales that month totaled 588. The company said sales in the first 12 months totaled 201328. Reuter | HYUNDAI MOTOR AMERICA SAYS CAR SALES STRONG |
Shr profit 12 cts vs loss two cts Net profit 182173 vs loss 28977 Revs 4483047 vs 3994808 1st half Shr profit 14 cts vs loss eight cts Net profit 221376 vs loss 120435 Revs 8270947 vs 7150265 Reuter | FROST AND SULLIVAN INC <FRSL> 2ND QTR JAN 31 |
South Koreas record 7.1 billion dlrs trade surplus with the U.S. is bound to diminish as the country switches purchases from Japan in favor of U.S. companies Trade Minister Woong-Bae Rha said. He rejected suggestions the Korean Won is undervalued and denied any plans for a drastic and sudden revaluation. Rha is heading a trade mission to 37 U.S. cities. Last year South Korea ran a 4.3 billion dlr trade surplus including a record 7.1 billion surplus with the U.S. and a 5.5 billion dlr deficit with Japan. Rha told Reuters in an interview the current trade mission is looking for 2.0 billion dlrs in purchases from U.S. companies about a quarter of which represents transferred purchases from Japanese sources. Rha said the items being sought by the current mission are mainly chemicals machinery and parts. He said South Korea is the fourth largest importer of U.S. agricultural products. The current mission is not involved in that area but there are plans to buy substantial amounts of cotton from the U.S. He noted his country is clearly not as open as the American market. Nor is it reasonable to expect that it should be considering South Korea has a 40 billion dlr foreign debt and spends six pct of its gross national product on defense. Reuter | S. KOREAN TRADE SURPLUS WITH U.S. SEEN FALLING |
CRI Insured Mortgage Investments Inc said its advisor will recommend a special distribution of 50 cts per share due to the sale of a federally insured first mortgage on Park Meadows I in Madison Wis. for 4267871 dlrs. It said it received a 3695465 dlr return of capital and 572406 dlrs in income on the sale and the 50 ct distribution would represent a 43.294 ct return of principal and a 6.706 ct capital gain and would be payable June 30 to holders of record May 31. Reuter | CRI INSURED <CII> TO SET SPECIAL DISTRIBUTION |
Unit loss one ct Net loss 186000 Revs 10.7 mln 11 mths Unit loss 7.26 dlrs Net loss 121.4 mln Revs 46.9 mln Note: Partnership formed in February 1986. Net includes writedown of oil and gas assets of 124.8 mln dlrs for 11 mths to comply with full-cost accounting methods. Reuter | KANEB ENERGY PARTNERS LTD <KEP> 4TH QTR LOSS |
Digicon Inc said it has completed the previously-announced disposition of its computer systems division to an investment group led by <Rotan Mosle Incs> Rotan Mosle Technology Partners Ltd affiliate. Reuter | DIGICON <DGC> COMPLETES SALE OF UNIT |
Texas Eastern Corp said it has completed the purchase of an idle petroleum products terminal near Norris City Ill. from <Growmark Inc> for undisclosed terms and will reopen it in September after remodeling. The company said the terminal will handle leaded and unleaded regular gasolines number two fuel oil ethanol and natural gasoline. Reuter | TEXAS EASTERN <TET> BUYS PETROLEUM TERMINAL |
<Sterling Investment Group> said it successfully drilled and completed a significant development well 65 miles southwest of Houston Texas. The well has a choke of 11/64 of an inch and is 10097 feet deep. The well initially tested at a maximum daily flow rate of two mln cubic feet of gas and 304 barrels of condensate. Participants in the new well along with Sterling are Trafalgar House Ltd of the U.K. and <Texstar NOrth America Inc.> Reuter | STERLING IN TEXAS GAS AND OIL DISCOVERY |
Range Rover of North America Inc a subsidiary of the British Land Rover Group said it would begin selling the luxury utility vehicles in the United States March 16 at a suggested retail price of 30825 dlrs. Range Rover executives told Reuters after a press conference they expect to generate 80 mln dlrs in revenues this year but that the U.S. venture is not expected to become profitable until 1989. The executives said they expect to sell 3000 of the vehicles this year from an initial network of 37 dealers which will be gradually expanded to 65 within a year. Range Rovers project aimed at buyers with household incomes above 100000 dlrs annually is the culmination of a four-year effort by Land Rover Group to introduce the British-build vehicle in the U.S. market. The executives said the only option to be offered with the vehicles will be a leather upholstery package priced at 1025 dlrs. Reuter | <RANGE ROVER> TO SELL VEHICLES IN U.S. |
GE Information Services Co a unit of General Electric Co said it is making avialable this week an on-line stock market analysis database called VESTOR on GEnie the General Electric Network for Information Exchange. GE said Investment Technologies Inc <IVES> developed the database that evaluates more than 6000 securities and advises users on stock market decisions based on their portfolio needs and criteria. GE said GEnie has about 45000 on-line subscribers. Reuter | GENERAL ELECTRIC<GE> UNVEILS NEW STOCK DATABASE |
Blinder International Enterprises Inc said its common stock will continue to be quoted on the National Association of Securities Dealers NASDAQ system due to an exception pending the resolution of a dispute between the NASD and Blinder on Blinders qualifications for continued NASDAQ quotation. The company said the NASD has alleged that Blinder no longer meets listing criteria but Blinder said it feels it can resolve the issues in dispute. It said if it cannot resolve the issues by April 27 or if it fails to meet conditions imposed by the NASD it will be delisted. Reuter | BLINDER INTERNATIONAL <BINLC> HAS NASD EXCEPTION |
Computer Horizons Corp said it purchased ComputerKnowledge Inc a software training education company headquartered in Dallas. Terms were not disclosed. Reuter | COMPUTER HORIZONS <CHRZ> IN ACQUISITION |
Policy Management Systems Corp said it has acquired the majority of the assets and business of Allied Research Inc of Salem Ore. and Consolidated Insurance Services Inc of Springfield Va. for undisclosed terms. It said the two companies which had combined 1986 revenues of about two mln dlrs provide underwriting information services to property and casualty insurers. Reuter | POLICY MANAGEMENT <PMSC> MAKES ACQUISITION |
Unicorp Canada Corp told the Securities and Exchange Commission it cut its stake in Purolator Courier Corp to 286500 shares or 3.7 pct of the total outstanding from 962400 shares or 12.4 pct. Unicorp a management and investment holding company controlled by its chairman George Mann said it sold 675900 Purolator common shares on March 2 and 3 at 34.782 and 34.750 dlrs a share. Purolator agreed this past weekend to be acquired by managers of its U.S. courier business and E.F. Hutton LBO Inc in a leveraged buyout valued at 265 mln dlrs. Reuter | UNICORP CANADA<UNI.A> CUTS PUROLATOR<PCC> STAKE |
American Telephone and Telegraph Co said it is offering its USA Direct service in Denmark. The service allows callers in Denmark to reach an ATT operator in the United States by dialing a single telephone number 0430-0010 ATT said. USA Direct is now available in 26 countries including the United Kingdom France and Australia the company added. Reuter | ATT <T> OFFERS USA DIRECT SERVICE IN DENMARK |
Atlantic Research Corp said it has received a U.S. Navy contract to test Navy ships and their electronic systems installations to isolate and correct deficiencies caused by electromagnetic interference. It said the first year of the contract is worth 1500000 dlrs and with two option years the total value is 4800000 dlrs. Work will be performed at Norfolk and Virginia Beach Va. Reuter | ATLANTIC RESEARCH <ATRC> GETS NAVY CONTRACT |
Moodys Investors Service Inc said it upgraded the ratings on NRM Energy Cos senior cumulative preferred depository units to B-3 from CAA. The rating agency also assigned a B-3 rating to the partnerships proposed issue of cumulative convertible acquisition preferred units Series A. Moodys actions affect 188 mln dlrs of securities. The rating agency said these moves reflect the potential benefits to be derived from the exchange of NRM common and preferred units for certain properties of Mesa Limited Partnership which make Mesa NRMs biggest unitholder. Reuter | NRM ENERGY <NRM> SECURITIES RAISED BY MOODY'S |
Toyota Motor Sales U.S.A. Inc said its February car sales totaled 36811 down from 40012 last February. The company said February truck sales totaled 20437 down from 28519 a year earlier. Toyota said sales of its domestically produced Corolla models totaled 2098 units during the month. Reuter | TOYOTA MOTOR U.S.A. FEBRUARY CAR SALES DOWN |
Trans Lux Corp said it will repurchase up to 350000 shares common and/or class B stock over an indefinite period in the open market. It also declared a five pct stock dividend payable April nine to holders of record march 20 and a regular quarterly dividend of two cts per share payable APril nine to holders of record March 16. Reuter | TRANS LUX <TLX> IN STOCK REPURCHASE |
<Nusource Investments Inc> a publicly held shell company said it acquired American Nutrition Works Inc through a transaction in which American Nutrition shareholders received 28 mln shares of Nusource stock in exchange for their shares. American Nutrition operates a chain of stores sellings vitamins and health products. Nusource said shareholders elected a new board consisting of Richard A. Trydahl Samuel Mineo and Charles E. Flink and voted to change the name of the company to ANW Inc. Reuter | FIRM ACQUIRES <AMERICAN NUTRITION WORKS INC> |
The Canadian Wheat Board has advised the federal government to sharply cut initial prices paid to farmers for their wheat oats and barley in the crop year beginning August 1 a board spokesman said. The spokesman declined to give the size of the recommended price drops but said it would not be good news for western Canadian grain growers. Theyre all lower he said. This is really getting pretty serious. Were talking nuts and bolts economic survival and whether its worthwhile for farmers to put in a crop. Farm leaders and economists have estimated the board will recommend cuts of around 20 pct in the initial prices. Farmers receive the initial payment when the grain is delivered to the elevators used by the wheat board. If the wheat board which markets most of Canadas grain obtains higher than expected prices on world markets the farmers receive a final payment at the end of the crop year. If prices are lower the federal treasury makes up the difference. The final decision on the initial prices usually made in April rests with Wheat Board Minister Charles Mayer and the federal cabinet. Last year Mayer cut the initial prices between 19 and 27 pct but last fall the government announced a one billion Canadian dlr aid program to compensate for the price cuts. But federal agricultural officials have already warned farmers not to depend on additional government aid this year. Reuter | CANADA WHEAT BOARD ADVISES CUT IN GRAIN PRICES |
The ruling GATT Council deferred a decision on whether to set up a dispute panel on the basis of a European Community complaint against the U.S.- Japanese agreement on exports of computer semiconductors. David Woods spokesman of the General Agreement on Tariffs and Trade (GATT) told a news briefing that the main parties would continue bilateral talks. This was in the hope of resolving the row before the next Council meeting on April 15. The five-year accord signed in July 1986 aims to protect the U.S. Market from dumping of low-price Japanese microchips officially known as semiconductors. The E.C. Complained the accord breached GATT trade rules by allowing Tokyo to monitor prices allowing it to set minimum prices for Japanese chips sold in third countries. The 12-nation Community also charged the agreement gave U.S. Producers preferential access to the Japanese market. Woods said many nations -- Hong Kong Canada Switzerland Singapore Sweden Malaysia and Nigeria -- had supported the EC complaint during the heated Council debate. Japans delegate Minoru Endo and U.S. Ambassador Michael Samuels replied in the debate that the E.C. Charges were unfounded but they were willing to continue bilateral talks. Reuter | GATT COUNCIL DEFERS DECISION ON SEMICONDUCTORS |
First Southern Federal Savings and Loan Association said it has agreed in principle to acquire Horizon Financial Corp and Horizon Funding corp from <Victor Federal Savings and Loan Association> of Muskogee Okla. for undisclosed terms. The company said the purchase is subject to approval of the boards of First Southern and Victor and regulatory agencies. Horizon Financial services mortgage loans and Horizon Funding is a wholesale loan purchasing operation. Horizon services 3.2 billion dlrs in mortgage loans. Reuter | FIRST SOUTHERN <FSFA> TO MAKE ACQUISITION |
Shr 71 cts vs 43 cts Net 7274000 vs 4447000 Rev 161.6 mln vs 77.6 mln Year Shr 1.51 dlrs vs 1.32 dlrs Net 15401000 vs 13525000 Rev 454.0 mln vs 304.9 mln Reuter | DANAHER CORP <DHR> 4TH QTR NET |
<Chatsworth Enterprises Inc> a publicly held shell corporation said it signed a letter of intent to merger with <Lotoquik International Ltd> a Nassau Bahamas-based maker of video lottery machines. Under terms of the merger agreement Chatsworth said Lotoquik shareholders would own a majority of the surviving company. Reuter | FIRM AGREES TO MERGE WITH LOTOQUIK INT'L |
<Asbestec Industries Inc> said it signed a letter of intent to buy asbestos abatement contractor <P.W. Stephens> for three mln dlrs in cash stock and notes. The transaction is expected to be completed early in the third quarter of its fiscal year ending September 30 1987. Asbestec also said it expects to sign March six a 900000 dlr contract to remove asbestos from a major apartment complex in Washington D.C. The project is scheduled to begin on March nine. Reuter | ASBESTEC TO BUY CONTRACTOR, RECEIVES CONTRACT |
The ruling GATT Council set up a formal dispute panel to examine a U.S. Complaint that a Canadian law prohibiting export of unprocessed herring and salmon was discriminatory. David Wood official spokesman of the General Agreement on Tariffs and Trade (GATT) told a news briefing the decision was taken after bilateral consultations failed to resolve the row. U.S. Ambassador Michael Samuels charged during the Council debate that Canada was trying to preserve domestic jobs by insisting that herring and salmon be processed at home. Robert White Canadas deputy chief of delegation replied the law was in line with GATT rules and was for conservations reasons. But he agreed to setting up the dispute panel. Reuter | GATT SETS UP DISPUTE PANEL ON CANADIAN HERRING |
colombias cost of living index rose 2.03 pct in february after a 3.27 pct increase in january and a 3.15 pct rise in february 1986 the government statistics institute said. The rise brought year-on-year inflation to 19.77 pct compared with 23.72 pct at end-february 1986 and 21.66 pct for the year ending january 1987. The government has predicted that inflation this year would be lower than in 1986 when it reached 20.9 pct. Reuter | COLOMBIAN INFLATION RISES 2.03 PCT IN FEBRUARY |
General Motors Corp staged an explosive rally on Wall Street after a share buyback program announced yesterday but analysts said GMs future remains clouded by stiff competition and erosion of market share. GM shares rose 3-1/2 to 79-1/8 in active trading. Analysts agreed that investors liked the repurchase program but they differed sharply over the carmakers long term prospects. Im very positive on GM said Jack Kirnan of Kidder Peabody and Co. Theyre clearly committed to enhancing shareholder value. However some analysts worry about how GM will pay for the buyback and whether new models will enable the carmaker to recapture lost market share. After the market had closed yesterday GM said it would buy back 20 pct of its common stock by the end of 1990. The announcement sent investors today scrambling for GM shares with more than 3.2 mln shares changing hands by mid-day. The buyback plan caused several analysts bullish on the stock to reiterate buy recommendations this morning and at least one increased his earnings estimates for GM based on a good performance expected from new car models. But David Healy of Drexel Burnham Lambert Inc said the repurchase program is not a positive. The buyback doesnt really change the earnings outlook and puts more stress on the balance sheet he said since GM will have to borrow money to pay for the stock purchases. The stock should settle back down to around 76 he added. Healy projects GM will earn five dlrs a share in 1987 and 5.50 dlrs in 1988 compared to 1986 earnings of 8.21 dlrs. Healys numbers are near the low end of Wall Street estimates which range from five dlrs to 7.80 dlrs in 1987 and from four dlrs to 10.80 dlrs in 1988. Like other analysts Healy sees GMs share of the domestic car and truck market falling in 1987. On balance GM cars are not selling as well as their competitors he said. In late February GM car sales fell 8.6 pct from the year-ago period while competitors Ford Motor Co <F> and Chrysler Corp <C> both posted increases. But GM said February sales showed improvement over January adding that it expects improvement in coming months. Overall GMs share of U.S. car and truck sales should fall to around 38 or 39 pct in 1987 from 41 pct at the end of 1986 analysts said. The numbers include imports. Kidder Peabodys Kirnan said cost reductions and product improvements this year should lead to positive cash flow by the fourth quarter which will help GM finance the buyback. GM (stock) has been a real laggard and now its rolling up its sleeves and getting serious. I think theres a major earnings surprise in the winds he said. Kirnan raised his earnings estimates slightly today in part in reaction to the announced buyback and sees GM earning 5.65 dlrs this year and 9.75 dlrs in 1988. The company is more concerned than ever about improving their relative valuation with respect to Ford and Chrysler he said. Another positive for the stock is GMs dividend currently five dlrs a share annually which gives it a higher yield than its competitors Kirnan said. And GM will raise the cash dividend 25 to 50 cts a share next year he predicted. But analyst Michael Lucky of Shearson Lehman Brothers Inc said U.S. car sales will weaken and GMs new products if successful will only slow but not halt the erosion of its market share. I believe their new cars will be successful but that will only curtail losses in market share which will fall to around 35 pct by 1990 Lucky said. Philip Fricke of Goldman Sachs and Co falls in the middle of the bulls and bears. While he is recommending GM stock he said results will not improve until 1988. Im not looking for improvement this year. This is a transition year for GM he said. Fricke who estimates 1987 earnings at 7.80 dlrs and 1988 at 10.80 dlrs said cost cutting and new car models will not affect 1987 results. But the key thing isnt so much what they earn this year. Its the momentum beyond this year thats important. Reuter | TALKING POINT/GENERAL MOTORS <GM> |
EMS Systems Ltd said it has signed an agreement for <Teleco USA Inc> to sell EMS Six-Party Conference Bridge for telecommunications through the Teleco network of 150 dealers nationwide. Reuter | EMS SYSTEMS <EMSIF> IN MARKETING DEAL |
Parsow Partnership Ltd a Nevada investment partnership said it lowered its stake in ERC International Inc to 343500 shares or 8.3 pct of the total outstanding common stock from 386300 shares or 9.3 pct. In a filing with the Securities and Exchange Commission Parsow said it sold 42800 ERC common shares between Jan 9 and March 2 at prices ranging from 12.125 to 14.50 dlrs each. The partnership said its dealings in ERC stock are for investment purposes and it has no intention of seeking control of the company. Reuter | PARTNERSHIP CUTS STAKE IN ERC INTERNATIONAL<ERC> |
Healthy growth in corporate profits and in consumer spending the two pillars on which Japan rests its hopes of sustained economic growth both look rotten at the core economists polled by Reuters said. Profits and domestic consumption are meant to replace exports as the engine of growth. But close ties between corporate performance and wages mean that the alternative economic model promises little but slower growth they said. Falling profits may lead to falling incomes which in turn will cut sales and further reduce profits. The Bank of Japan said in its latest outlook that improved terms of trade linked to the strong yen would help domestic demand grow steadily. However this would happen only if household spending increased in line with the value of real financial assets due to stable prices and/or if corporate investment recovered as profits from domestic sales improved compared with those from exports. No clear sign of such developments has so far been evidenced the central bank said. Poor business prospects are the reason why economic growth will be slow even though Japans terms of trade have improved sharply due to the strong yen. Economist David Pike of Phillips and Drew estimates that in 1986 unit cost prices fell 30 pct while output prices fell only eight pct giving a large price margin advantage in the domestic market -- as long as companies did not pass that advantage on to the consumer. Last years gap of almost 10 percentage points between the fall in the wholesale price index and the slight drop in consumer prices shows that gains from the improved terms of trade have been kept as profits by producers and distributors. The economists however believe this layer of fat will protect companies for only a short while. As more firms seek more profits at home instead of abroad already fierce domestic competition will increase fueled by lower-priced imports. Retail prices will fall. Profit margins will suffer. A December survey by top business organisation Keidanren confirms this dim view is taken by the firms themselves. Of companies polled in the key manufacturing sector almost 80 pct thought the high yen would create a drop in production volume and 60 pct predicted a drop in corporate performance said Keidanren economist Kazuyuki Kinbara. Main counter-measures cited by the firms include cutting unprofitable operations reducing work to sub-contractors (which employ significant numbers of workers) holding down wages and reducing bonuses. The government has said it fears unemployment could soon double from three pct now. Unemployment and slow wage growth will obviously hurt sales. But reduced bonuses and worries about individual financial security could be even more damaging. Twice a year bonuses provide wage earners with what amounts to an enforced lump sum in savings encouraging them to buy large consumer products and sparking a sales bonanza. To save funds some big firms have begun a form of tied bonus forcing employees to spend it on the firms own goods. Economists also predict Japanese will not save less than the average 16 pct of salary they do now. On the contrary a poor outlook and lower disposable income could strengthen the resolve to put money aside for old age and illness education and housing -- the main drains on the working mans salary. The last government survey of public opinion said over 80 pct of citizens will continue to economise. Japan has a rapidly ageing population and minimal social security and its workers fear poverty in their old age. Faced with such a vicious circle the governments reflationary strategies are severely limited. The commitment by the ruling Liberal Democratic Party and Finance Ministry to cut the state debt has resulted in small supplementary budgets and attempts to provide fiscal incentive without reducing revenue. Independent economists have been less than excited at the results. Provision for monetary stimulus is similarly limited. The 2.5 pct discount rate is so low it is politically impossible to cut it further with the basic bank savings rate at only 0.25 pct Bank of Tokyo economist Haruo Muto said. Almost 60 pct of Japanese still hold their savings in some kind of deposit official figures show. Moves to directly inject liquidity are unproductive while firms are planning cuts in capital investment. The central bank is well aware that soaring stock and land prices are the only current results of high liquidity. Fear of inflation also limits policy options. Political analysts ascribe Prime Minister Yasuhiro Nakasones 1986 big election victory largely to a long period of almost zero price inflation. And he found this year that attempts to impose a sales tax to offset tax cuts arouses fierce voter opposition. REUTER | ECONOMIC SPOTLIGHT - JAPAN LOW GROWTH MODEL |
Iranian Oil Minister Gholamreza Aqazadeh is expected here on Friday for talks with his Algerian counterpart Belkacem Nabi the official Algerian news agency APS said today. Aqazadeh who will be accompanied by a large delegation will have talks on bilateral relations in the field of energy and exchange views with Algerian officials on the current world energy situation it said. Reuter | IRANIAN OIL MINISTER DUE IN ALGERIA ON FRIDAY |
Northern Telecom Ltd said it signed a contract with the Peking Telecommunications Administration and the Peking Foreign Trade Corp to supply an SL-1 automatic call distributor system for Pekings central telephone office. Financial terms were undisclosed. It said Pekings telephone company would use the system to receive and distribute incoming information requests more effectively among operators. The company said it and Pekings telephone administration were discussing cooperation on other telecommunications systems. Reuter | NORTHERN TELECOM <NT> IN PHONE PACT WITH CHINA |
Net 52.9 mln vs 21.9 mln NOTE: Company is mutual savings bank. Reuter | <GOLDOME FSB> YEAR NET |
Oper shr 18 cts vs 28 cts Oper net 1076000 vs 1441000 Sales 22.6 mln vs 21.2 mln Avg shrs 5970000 vs 5080000 Year Oper shr 55 cts vs 49 cts Oper net 3007000 vs 2521000 Sales 82.9 mln vs 73.7 mln Avg shrs 5429000 vs 4484000 Note: Full company name is Bear Automotive Service Equipment Co Oper shr excludes extraordinary profit from utilization of tax loss carryforward of 231000 dlrs or four cts a share and 1.2 mln dlrs or 22 cts a share respectively in 1986 qtr and year and of 441000 dlrs or nine cts a share and 1.1 mln dlrs or 23 cts a share respectively in 1985 qtr and year. 1985 year oper net excludes loss from cumulative effect of change in accounting principle of 67000 dlrs or one ct a share. Reuter | BEAR AUTOMOTIVE SERVICE <BEAR> 4TH QTR OPER NET |
Environmental Power Corp said its subsidiary Environmental Protection Resources Inc of Houston has been hired to build a 20 mln dlr resource recovery plant for Lubbock Texas. Environmental said its subsidiary also will own and operate the plant which will convert solid waste into electricity. The plant is scheduled for operation by early 1989 the company said. Reuter | ENVIRONMENTAL POWER <POWR> UNIT GETS CONTRACT |
Softech Inc said it was awarded a 1035767 mln dlr contract by the U.S. Air Force Aeronautical Systems Division at Wright-Patterson Air Force base. Under the seven-month contract which carries four one-year renewal options Softech said it will continue to operate the Defense Departments Ada Validation Facility and JOVIAL Language Control Facility. Total value of the contract if renewal options are exercised is 6526253 dlrs the company said. Reuter | SOFTECH <SOFT> GETS AIR FORCE CONTRACT |
The U.K. Offshore oil industry has suffered from last years collapse in oil prices but should not sustain any permament damage Minister of State for Energy Alick Buchanan-Smith said. The drilling diving and supply vessels sectors had been most affected Buchanan Snith told the House of Commons energy committee. He noted however that oil companies were still spending six mln stg a day to maintain North Sea production. He added that a report by the manpower services committee which said 14000 jobs were lost in the industry in 1986 should be seen in the context of a total workforce of 300000. Prices of North Sea Brent-grade crude dipped to a low of 8.50 dlrs a barrel last July from a peak of over 30 dlrs the previous November. They recovered to around 18 dlrs a barrel after last Decembers OPEC meeting and Brent traded today around 17.15 dlrs. Buchanan-Smith said the U.K. Has no intention of adopting OPEC style quotas noting that Britian is an oil-consuming as well as an oil-producing nation. Reuter | U.K. OIL INDUSTRY SAID NOT PERMANENTLY DAMAGED |
<Chase Manhattan Bank N.A.> is considering expanding its operations in Italy particularly in the consumer banking sector a Chase Manhattan official said. Robert D. Hunter Chase Manhattan area executive for Europe Africa and the Middle East said at a news conference that plans to broaden the banks activities on the Italian market have not been finalised however. Asked if Chase Manhattan would consider an acquisition in Italy Hunter said: We will look at any opportunity but the prices of Italian banks have been quite high. Chase Manhattan has branches in Milan and Rome. Reuter | CHASE MANHATTAN STUDYING ITALIAN EXPANSION |
International H.R.S. Industries Inc said it would reduce its stake in Hal Roach Studios Inc to 22 pct from 52 pct in return for 6.3 mln U.S. dlrs from Qintex Incs Qintex America (Media) Ltd unit. H.R.S. said that under the deals first stage closng March 22 it would sell Qintex 900000 Hal Roach shares at seven U.S. dlrs a share each for a total of 6.3 mln dlrs and Roach will repay H.R.S. 3.3 mln U.S. dlrs of advances. Qintex will also complete the 16.8 mln U.S. dlr buy of 2.4 mln Roach treasury shares at seven dlrs each and provide Roach with 50 mln U.S. dlrs of financing for expansion H.R.S. said. H.R.S. said that the agreement also provided for a second stage over one year in which it had a put option exercisable one year from closing to sell Qintex all or part of its two mln Roach shares for 8.50 U.S. dlrs a share. It said Qintex had a 30-day call option exerciseable nine months from closing to buy from H.R.S. all or part of one mln Roach shares at the greater of 8.50 dlrs each or the average Roach share price for three months before exercise date. Qintex will also acquire another 2.4 mln Roach treasury shares at seven dlrs a share 12 months after closng for another 16.8 mln dlrs H.R.S. said. Reuter | HRS <IHIRF> REDUCING STAKE IN HAL ROACH <HRSI> |
The National Labor Relations Board said it issued an unfair Labor practice complaint against First Union Management a unit of First Union Real Estate Investments <FUR> for discouraging membership in a labor organization. The NLRB said the complaint asserts First Union Management hired a cleaning contractor <Systems Management> to clean the 300 Sixth Avenue Building in Pittsburgh on the condition that Systems not deal with the Service Employees International Union (SEIU) Local 29. Jack Yoedt executive director of SEIU the janitors union said that damages could amount to more than 200000 dlrs in back pay for janitors and that other damages may be forthcoming. Reuter | FIRST UNION REAL ESTATE UNIT HIT WITH LABOR SUIT |
French oil group Total Cie Francaise des Petroles <TPN.PA> is still expecting a 1.5 billion franc consolidated net loss including minority interests for 1986 after taking account of stock losses of 7.5 billion francs the company said in a communique after a board meeting here. In late January group president Francois-Xavier Ortoli told journalists that the slump in oil prices and the weak dollar had caused the stock depreciation turning a consolidated net profit before losses on stocks of six billion francs into a consolidated net loss of 1.5 billion francs. Earlier today Armand Guilbaud president of Totals refining and distribution subsidiary Cie de Raffinage-Distribution (CRD) Total France <RAFF.PA> told journalists that 1986 had marked a return to profit for the subsidiary before stock depreciation. CRD made a net profit before stock depreciation and currency factors of 1.95 billion francs last year after a 1.16 billion loss in 1985. But its net loss last year taking account of that depreciation as well as currency fluctuations was 1.16 billion francs after a 1.05 billion loss in 1985. In 1986 CRDs sales fell 5.7 pct to 19.7 mln tonnes from 20.9 mln due to the growth in imports by independent distributors following a relaxation of regulations Guilbaud said. The subsidiary is expecting to cut its workforce to 6000 this year and 5000 in 1988 from 6800 last year under a job reduction scheme which will eventually save the group 600 mln francs he said. Concerning business in 1987 he said that January was a good month but the situation deteriorated in February. Reuter | TOTAL STILL EXPECTS 1.5 BILLION FRANC 1986 LOSS |
A consortium of electrics industry firms to challenge Japans presence in the global semiconductor market was announced by the Semiconductor Industry Association. The initiative will be funded by U.S. manufacturers to develop the most advanced semiconductor manufacturing technologies the association said at a news conference. Government participation and financial support will also be sought for the consortium called SEMATECH for semiconductor manufacturing technology. We can continue to sit back and watch the Japanese target and assualt yet another critical U.S. industry. Or we can get in gear and do what is necessary to repell this attack said Irwin Federman chief executive officer of Monolithic Memories Inc. He said the objective of SEMATECH a non profit corporation was to maintain leadership in an industry that was vital to the U.S. economy and national security. The plan was for SEMATECH to establish a facility at various manufacturers and equipment suppliers to pioneer advanced manufacturing techniques for semiconductors. REUTER... | U.S. SEMICONDUCTOR INDUSTRY FORM CONSORTIUM |
GENERAL MOTORS CANADA FEBRUARY CAR SALES FALL TO 25,779 UNITS FROM YEAR-AGO 31,361 |
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CHRYSLER TO SPEND 367 MLN DLRS ON MODEL CHANGEOVER AT ILLINOIS PLANT |
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American Ventures Inc said it and joint venture partner <Sagamore Corp> have executed an engagement letter for <Donaldson Lufkin and Jenrette Securities Corp> to assist in arranging the financing for the 80 megawatt Mon Valley coal-fired fluidized bed cogeneration project in Greene County Pa. The company said the electric output from the previously-announced project is expected to be sold to Allegheny Power System Inc <AYP> under a 30-year contract now being negotiated. It said Donaldson would also provide aid for two other cogeneration projects being developed. Reuter | <AMERICAN VENTURES INC> HAS COGENERATION FUNDING |