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LOWER INTEREST RATES SEEN FOLLOWING IRISH BUDGET
| Financial markets welcomed public
spending cuts announced by Ireland's new minority government in
its budget, saying the move would lead to lower interest rates.
Finance Minister Ray MacSharry, making cuts across the
board, reduced the Exchequer Borrowing Requirement to 1.85
billion punts, 10.7 pct of GNP, compared with 2.15 billion
punts or 13 pct of GNP last year.
Allied Irish Banks foreign exchange dealer John Kearney
commented: "I would see interest rates coming down by two to 2.5
pct in the next three months."
| Corporate News |
SUN ALLIANCE reports sharp profit rise
| Year 1986
Shr 64.2p vs 14p
Div 16p making 23.5p vs 17.5p
Pretax profit 180.4 mln stg vs 37.7 mln
Net after tax 137.1 mln vs 34.9 mln
Minorities 10.5 mln vs 7.2 mln
General premium income 1.99 billion stg vs 1.78 billion
Long term premium income 704.5 mln vs 576.6 mln
General insurance underwritng loss 78.3 mln vs 183.4 mln
Long term insurance profits 27.3 mln vs 20.9 mln
Investment and other income 231.4 mln vs 200.2 mln.
Company's full name is Sun Alliance and London Insurance
Plc <SUNL.L>.
| Corporate News |
BOLIDEN SAYS IT NOW LEADER IN MINING GEAR
| Swedish mining and metals group
Boliden AB <BLDS.ST> said the takeover of the U.S.
Allis-Chalmers Corp's <AH.O> mining machinery division made it
the world's leading maker of such equipment.
President Kjell Nilsson, announcing the 600 mln crown deal,
told a news conference Boliden would now become a truly
international concern with operations in Brazil, Chile and
other big minerals-producing nations.
He said the Allis-Chalmers' division, accounting for some
50 pct of the U.S. Group's sales, would fit in well into
Boliden.
| Industrial and Sector News |
U.S. CREDIT MARKET OUTLOOK - PRIME RATE
| The prospect that other banks will
follow industry leaders Citibank and Chase Manhattan in raising
their prime rate is likely to cast a pall over the credit
markets today, economists said.
Bond prices had been making a smart recovery from two days
of heavy selling when Citibank surprised the market by
announcing a quarter-point increase in its prime rate to 7-3/4
pct. Chase Manhattan quickly followed.
Prices quickly fell by a full point, even though the dollar
- the market's overriding concern of late - rose sharply on the
news.
Citibank cited the higher cost of money, especially in the
Euromarket, as the reason for raising its prime rate.
Part of this rise in market rates has been caused by fears
of a tighter Federal Reserve policy to defend the dollar, but
economists said it is too early to tell whether the Fed, whose
policy-making federal open market committee, FOMC, meets this
week, is already tightening its grip on credit.
"The Fed seems to have been a bit slow in meeting the
banking system's reserve needs this statement period, but I
wouldn't conclude anything until I've seen the Fed data," said
Jeffrey Leeds of Chemical Bank.
REUTER^M
| Corporate News |
CEREALS MCAS TO BE UNCHANGED NEXT WEEK
| Monetary compensatory amounts, MCA's,
will be unchanged for the week starting April 6, EC Commission
officials said.
Cereals MCA's are plus 2.4 points for West Germany and the
Netherlands, minus two points for Denmark, minus eight points
for France, minus nine for Ireland, minus 5.7 for Italy, minus
25.7 for Britain, minus 44.1 for Greece and minus 10.5 for
Spain.
| Financial Reports |
U.S. SUPREME COURT ALLOWS DELTA-WESTERN MERGER
| U.S. Supreme Court Justice Sandra Day
O'Connor early this morning lifted an Appeals Court injunction
blocking the planned merger of Delta <DAL> Airlines
Inc and Western Airlines <WAL>, the Court said.
O'Connor's action came hours after a three-judge panel of
the 9th U.S. Circuit Court of Appeals in San Francisco had
blocked the merger until a dispute over union representation
had been settled by arbitration.
A Supreme Court spokesman said O'Connor granted a stay of
the injuction, allowing the merger, worth nearly 860 mln dlrs,
to go through as planned later today.
The Supreme Court spokesman provided no other details. Each
of the nine Supreme Court justices has jurisdiction over a
particular regional Appellate circuit and has the power to
provisionally overturn its rulings without comment.
The Appeals Court ruling surprised officials of
Atlanta-based Delta, which had been preparing for the merger
for months and had already painted Delta logos on airplanes
belonging to Western, which has headquartera in Los Angeles.
"Our plans were to finalize the merger at midnight tonight,"
Delta spokesman Bill Berry told the Atlanta Constitution late
last night. "There was really very little that remained to be
done."
The ruling in San Francisco came in a lawsuit that had been
filed in a Los Angeles federal court in which the Air Transport
Employees union sought to force Western's management to fulfill
a promise that it would honor union contracts if a merger took
place.
The airlines argued that Western's promise could not be
enforced in a takeover by a larger company.
After learning of the appeals court ruling, Delta officials
last night spread the word by telephone that Western employees
should report for work today in their old uniforms, not in new
Delta outfits.
Delta announced last September that it was purchasing
Western. The merger took place in December, and Western has
been operated as a Delta subsidiary since then. The Western
name was to have disappeared at midnight last night.
At issue is whether the Western unions would continue to
represent Western employees after the integration of the two
airlines.
While all but eight pct of Western's 11,000 employees are
unionized, only Delta's pilots are union members.
Delta had maintained that the three unions having contracts
with Western -- The Association of Flight Attendants and the
Teamsters, as well as the Air Transport Employees -- would be
"extinguished" after today.
| Financial Reports |
U.K. MONEY MARKET DEFICIT REVISED DOWNWARDS
| The Bank of England said it has revised
its estimate of today's shortfall to around 1.25 billion stg
from 1.3 billion before taking account of 775 mln stg morning
assistance.
| Financial Reports |
ICO COFFEE PRODUCERS TO DISCUSS MARKET SITUATION
| International Coffee Organization, ICO,
producers will meet at 1500 GMT (0900 est) for a general
discussion of the market situation, producer spokesman
Lindenberg Sette said.
The Brazilian delegate said several producers requested the
meeting but Brazil was not among them. The ICO executive
board's regular session this week has so far been confined to
routine matters, with no attempt by producers or consumers to
revive export quota negotiations, delegates said.
Talks to restore quotas collapsed early last month when
producers and consumers failed to resolve differences on how
quotas should be allocated.
Producer delegates said there was no sense of urgency among
producers to reopen quota talks with consumers, with most
countries now prepared to wait for the ICO's annual September
council session to restart negotiations.
Members of the Inter-African Coffee Organization called for
today's producer meeting to exchange views on the market
situation, the producer delegates said.
The lack of a new debate on export quotas here this week
was cited as the reason for renewed weakness in coffee prices
in London and New York futures, traders said.
Near May in London hit a five-year low this morning at
1,220 stg, about 50 stg below last night's close, they said.
The executive board session looks set to end today,
following a final session at 1600 GMT (1000 est) when a
consultancy report of the operation of the ICO will be
presented to producers and consumers, delegates added.
| Market and Economy |
CITADEL <CDL> SETTLES WITH GREAT WESTERN <GWF>
| Citadel Holding Corp said it
has settled its litigation with Great Western Financial corp.
The company said under the terms, Great Western has agreed
not to acquire or seek to acquire any voting securities of
Citadel or propose a merger with Citadel for five years, and
Citadel has paid Great Western six mln dlrs.
Citadel said it is continuing to pursue its claims against
Salomon Inc <SB>, which represented it in connection with the
disputed proposed merger with Great Western that was the
subject of the litigation.
| Financial Reports |
SOSNOFF ENDS DEAL WITH PRATT, SOUTHMARK ON POSSIBLE
| VENTURE FOR CAESARS BID
SOSNOFF ENDS DEAL WITH PRATT, SOUTHMARK ON POSSIBLE
VENTURE FOR CAESARS BID
| Financial Reports |
BP <BP> STARTS BID FOR STANDARD OIL <SRD> SHARES
| British Petroleum Co PLC said it has
started its previously announced 7.4 billion dlr offer to
purchase the 45 pct interest in Standard Oil Co that it does
not already own for 70 dlrs per share.
In a newspaper advertisement, the company said the offer,
which is not conditioned on receipt of any minimum number of
shares, and associated withdrawal rights will expire April 28
unless extended.
BP said it is asking Standard Oil for the use of its
shareholder list in disseminating the offer, on which the
Standard board has not yet taken a position.
| Financial Reports |
VISUAL TECHNOLOGY <VSALC> CONTROL CHANGES
| Visual Technology Inc said a group
led by <Hambrecht and Quist Group> has acquired majority
ownership of Visual for 9,250,000 dlrs in equity financing.
The company said Hambrecht and Quist president William R.
Hambrecht and three other Hambrecht and Quist representatives
have been named to the Visual board, with Robert M. Morrill,
managing partner of the Boston office of Hambrecht's Hambrecht
and Quist Venture Partners unit named chairman. Clifford G.
Zimmer Jr. remains president and chief executive officer.
Visual also said about nine mln dlrs of its debt has been
converted to equity.
| Financial Reports |
CPC INTERNATIONAL TO SELL STAKES IN ASIAN UNITS FOR 340
| MLN DLRS TO AJINOMOTO
CPC INTERNATIONAL TO SELL STAKES IN ASIAN UNITS FOR 340
MLN DLRS TO AJINOMOTO
| Financial Reports |
CAREPLUS INC <CPLS> 4TH QTR NET
| Shr loss nil vs profit nil
Net loss 17,000 vs profit 31,000
Revs 5,429,000 up 27 pct
Year
Shr profit four cts vs profit five cts
Net profit 523,000 vs profit 421,000
Revs 18.3 mln vs 11.6 mln
Avg shrs 15.2 mln vs 8,941,000
NOTE: Year net includes tax credits of 131,000 dlrs vs
194,000 dlrs.
1986 net both periods includes charge 264,000 dlrs from
settlement of overtime wage dispute and addition to provision
for uncollectible accounts.
| Corporate News |
JOHN ADAMS LIFE CORP <JALC> 4TH QTR LOSS
| Oper shr loss 24 cts vs profit 24 cts
Oper net loss 716,000 vs profit 729,000
Revs 3,673,000 vs 7,826,000
Avg shrs 2,930,000 vs 2,930,000
Year
Oper shr profit nil vs profit 1.31 dlrs
Oper net profit 10,000 vs profit 3,200,000
Revs 12.9 mln vs 26.3 mln
Avg shrs 2,930,000 vs 2,454,521
NOTE: Net excludes realized investment gains of 2,000 dlrs
vs 13,000 dlrs quarter and 104,000 dlrs vs 6,000 dlrs year.
1985 net both periods excludes 57,000 dlr extraordinary
gain.
| Financial Reports |
TEMPO ENTERPRISES INC <TPO> YEAR NET
| Shr 40 cts vs 36 cts
Net 2,309,000 vs 2,076,000
Revs 28.2 mln vs 30.4 mln
| Financial Reports |
UNITED HEALTHCARE CORP <UNIH> 4TH QTR NET
| Shr 10 cts vs 13 cts
Net 1,553,000 vs 1,541,000
Revs 73.1 mln vs 32.1 mln
Avg shrs 15,474,000 vs 12,316,000
Year
Shr 47 cts vs 24 cts
Net 7,241,000 vs 2,835,000
Revs 216.2 mln vs 101.2 mln
Avg shrs 15,492,000 vs 11,921,000
Note: Net income includes extraordinary profit from
recognition of tax loss carryforward of 920,000 dlrs, or six
cts a share, in 1986 year, and of 785,000 dlrs, or seven cts a
share, in both 1985 periods.
| Financial Reports |
SWEDEN RAISES FUEL TAXES TO FUND DEFENCE SPENDING
| Sweden announced tax increases on
petrol and heating oil from July 1, 1987 to help finance a 1.7
pct rise in defence spending over the next five years.
A Finance Ministry statement said the increase should boost
the price of petrol by 0.13 crowns to an average of 4.21 crowns
per litre while light-grade heating oil would go up by 30
crowns per cubic metre to an average of 1,665 crowns.
It said oil companies should absorb part of the tax rise
internally and not pass it on to consumers as compensation for
a reduction in the stocks that the industry is required to keep
for Sweden's national petroleum reserve.
| Financial Reports |
KENYAN MINISTER FORECASTS ECONOMIC EXPANSION
| Kenya's economy will continue to expand
this year and the government will do more to encourage
investment by foreign firms and the local private sector,
Planning Minister Robert Ouko said.
He told a news conference that the government would soon
create a special bureau to expedite processing of investment
applications by local and foreign investors.
Praising the role of multinational companies and local
entrepreneurs in Kenya's economy, the minister promised to
maintain a close working contact with the private sector.
The economy grew by 5.3 pct last year, up from 4.1 pct in
1985, Ouko said.
This was owing to high prices for the country's coffee
exports, low oil prices, low inflation and rising real incomes,
he added.
"Despite rising petroleum prices and falling coffee prices,
Kenya's economy is still expected to improve in 1987," the
planning minister said.
"High aggregate demand arising from low inflation, trade
liberalisation and disciplined financial management are
expected to increase output in the manufacturing sector," he
said.
Agriculture would expand significantly if favourable
weather continued and farmers responded to producer price rises
announced in February, the minister added.
Kenyan farmers are anxiously awaiting the arrival of the
long rainy season, which is due to start about now.
Ouko said the production of Kenya's main cash crops
increased during the second half of last year.
Coffee deliveries to the state-run Coffee Board of Kenya
rose 17 pct and tea deliveries rose four pct during the period,
he said.
Ouko paid tribute to the private sector for its
contribution to the economy and promised to improve government
cooperation with businessmen by maintaining regular contact
with them.
"I wish to pay tribute to the private sector for its
contribution to the economy in 1986 and challenge it to
maintain the same spirit this year ... The manufacturing sector
grew by an estimated 5.8 pct in 1986, in line with the same
period the previous year," he said.
Ouko said the "one stop" bureau was intended to stimulate
investment and cut the time and bureacracy currently involved
in processing applications.
The planning minister presented a review of the Kenyan
economy during the second half of 1986 which showed inflation
falling to 4.3 pct from 10.2 a year earlier.
This was owing to higher agricultural production and the
Kenyan shilling's relative strength against other major
currencies, the report said.
The average exchange rate was 16.23 shillings per U.S. Dlr
last year, a fall of only 1.2 pct from 16.432 in 1985. The half
yearly report said exports increased about 30 pct in
July-December 1986, while imports rose by only six pct during
the period.
This gave Kenya an overall balance of payments surplus of
780 mln Kenya shillings (48 mln dlrs) during the period,
compared with a 1.4 billion shilling (87 mln dlr) deficit in
the second half of 1985, it said.
| Market and Economy |
PEOPLES BAN CORP <PEOP> SEES 1ST QUARTER NET UP
| Peoples Ban Corp said it expects to
report first quarter earnings of over six mln dlrs, including a
gain of 1,600,000 dlrs from the settlement of a dispute with
the Internal Revenue Service and the sale of four banking
offices in Vancouver, Wash.
The company said it expects to report "normal" earnings for
the rest ofd the year of 4,500,000 to five mln dlrs per
quarter.
Peoples earned 105,000 dlrs in last year's first quarter
and in all of 1986 lost 1,768,000 dlrs.
| Financial Reports |
MAXXAM GROUP INC <MXM> 4TH QTR LOSS
| Shr loss 1.61 dlrs vs loss 47 cts
Net loss 19.2 mln vs loss 5,716,000
Revs 46.4 mln vs 11.0 mln
Year
Shr loss 2.01 dlrs vs loss 29 cts
Net loss 24.5 mln vs loss 3,548,000
Revs 150.2 mln vs 24.4 mln
NOTE: 1985 net includes tax credits of 7,336,000 dlrs in
quarter and 10.2 mln dlrs in year.
Results include 64.7 pct stake in Pacific Lumber Co from
December 1985 through February 1987 and 100 pct thereafter.
| Corporate News |
FRENCH CEREAL EXPORTS THROUGH ROUEN UP IN MARCH
| French cereals exports through Rouen port
rose to 751,563 tonnes between March 1 and March 25 from
603,413 tonnes in the same 1986 period, freight sources said.
The Soviet Union took 263,051 tonnes of wheat and barley,
Saudi Arabia 90,944 tonnes barley, China 87,259 wheat, Algeria
64,896 wheat, Bangladesh 30,000 wheat, Morocco 27,500 maize,
Greece 26,700 wheat and barley, Spain 25,124 wheat, Poland
24,683 wheat, Brazil 24,082 wheat, Italy 21,659 wheat, Cyprus
20,700 wheat and maize, Israel 16,500 maize and the U.K. 8,797
tonnes wheat.
Six ships are loading 120,000 tonnes of wheat, the sources
said. They include 30,000 tonnes for China, 31,000 for the
Soviet Union, 25,000 for Turkey, and 35,000 for Italy. Another
ship is loading 17,000 tonnes of colza for the Soviet Union.
Another 12 ships should arrive to load 344,000 tonnes of
cereals by the end of the week. Six are to load 186,000 tonnes
of wheat for the Soviet Union. Two will load 60,000 tonnes of
barley for Saudi Arabia, one 28,000 tonnes of wheat for China,
two 25,000 tonnes of wheat each for Algeria and Turkey and one
20,000 tonnes of wheat for Italy. Another is expected to load
20,000 tonnes of colza for the Soviet Union.
Flour exports through Rouen rose to 23,457 tonnes in the 25
day period from 5,500 in the equivalent 1986 period, the
sources said.
Sudan took 19,327 tonnes and west coast Africa 4,130.
Four ships are currently loading 32,000 tonnes, including
24,000 for Egypt, 6,000 for Tanzania and 2,000 for Mauritania.
A ship is expected later this week to load 12,000 tonnes
for China.
| Financial Reports |
FAO APPROVES EMERGENCY FOOD AID FOR ETHIOPIA
| The United Nations Food and Agriculture
Organization, FAO, said it approved emergency food aid worth
more than 14.3 mln dlrs for drought victims in Ethiopia.
The aid will include 30,000 tonnes of wheat and 1,200
tonnes of vegetable oil for farmers in the Wollo and Illubabor
regions.
FAO said it has also approved more than 1.4 mln dlrs of
food aid for 8,000 families in Sri Lanka. In addition, 583,225
dlrs of aid will be made available to Malawi to feed 96,700
people displaced from Mozambique and a further 340,200 dlrs for
cyclone victims in Vanuatu in the South Pacific.
| Financial Reports |
SOSNOFF ENDS PRATT <PRAT>/SOUTHMARK <SM> DEAL
| Investor Martin T. Sosnoff said
Southmark Corp and affiliate Pratt Hotels Corp have ended talks
with his MTS Acquisition Corp on a possible joint venture for
the acquisition of Caesars World Inc.
Sosnoff said the talks had not been actively pursued since
they were announced March 20, but it had been agreed that
unless the discussions were formally terminated, Pratt and
Southmark would not initiate a competing tender offer for
Caesars World or take any other action that would hamper
Sosnoff's current offer to acquire all Caesars shares he does
not now own for 28 dlrs each.
Sosnoff said his 28 dlr per share bid for Caesars, which is
scheduled to expire May 15, still stands, and he remains
receptive to negotiating a transaction to buy Caesars on
friendly terms.
Pratt recently made an apparently unsuccessful bid to
acquire control of Resorts International Inc <RTB>, seeming to
lose out to Donald Trump.
| Market and Economy |
CPC INTERNATIONAL <CPC> TO SELL ASIAN STAKES
| CPC International Inc
said said it has agreed in principle to sell interests in its
grocery products operations in Hong Kong, Malaysia, the
Philippines, Singapore, Taiwan and Thailand to <Ajinomoto Co
Inc> of Japan for 340 mln dlrs.
The company said the move will reduce Asian overhead and a
substantial part of the proceeds will be used to reduce debt.
It said as part of the agreement, its current direct
investment in its existing non-consolidated joint venture with
Ajinomoto will be converted into a cooperative arrangement for
the long-term utilization of technology and trademarks.
The company said the change in the Japanese arrangement
will give Ajinomoto full equity ownership while leaving CPC a
continuing earnings stream and cash flow.
The transactions are subject to definitive agreements and
government approvals.
CPC said not included in the 340 mln dlr consideration are
proceeds from the sale of some smaller Asian investments,
including a 51 pct equity interest in an oat-based food venture
to an Australian partner.
The company said the actions being taken under its
restructuring program, including the sale of its European corn
wet milling business and other assets, overhead reductions and
other expense items and the Asian transactions, will have a
one-time positive effect on 1987 earnings.
CPC said "Although the extent cannot yet be determined, the
company expects that 1987 earnings per share will increase by
substantially more than the previously estimated 20 pct
increase over 1986." In 1986 CPC earned 2.30 dlrs per share.
| Corporate News |
ENERGY DEVELOPMENT <EDP> COMPLETES MAY <MEP> BUY
| Energy Development Partners Ltd said
it has completed the acquisition of May Energy Partners Ltd for
1,817,697 depositary units following approval yesterday by May
Energy unitholders.
Energy Development said May Petroleum Inc <MAYP>, general
partner of May Energy, will distribute about 35 Energy
Development units for each 100 May Energy Partners units to
holders of 100 May Energy Partnners units or more and cash to
others.
Energy Development said the transaction increases its units
outstanding to 12.6 mln and raises total proved reserves as of
the end of 1986 27 pct. Angeles Corp <ANG> is general partner
of Energy Development.
| Financial Reports |
U.K. INTERVENTION BOARD DETAILS EC SUGAR SALES
| A total 102,350 tonnes of current series
white sugar received export rebates of a maximum 46.864
European Currency Units (Ecus) per 100 kilos at today's
European Community (EC) tender, the U.K. Intervention Board
said.
Out of this, traders in France received 31,000 tonnes, in
West Germany 21,000, in Belgium 19,050, in the U.K. 15,800, in
Denmark 8,500, in the Netherlands 6,000 and in Spain 1,000
tonnes, it added.
Earlier today, London traders had expected the subsidy for
the current season whites campaign for licences to end-Sep to
be around 46.80 Ecus per 100 kilos while French traders had put
the rebate at around 46.40 Ecus.
Traders here had also forecast today's total authorised
sugar tonnage export awards up to 100,000 tonnes versus 59,000
last week when the restitution was 45.678 Ecus.
Total export authorisations for the 1985/86 campaign (42
weeks) now stand at 2,076,620 tonnes.
| Commodities and Trade |
TURKISH INFLATION INCREASES IN MARCH
| Inflation in Turkey was 3.7 pct in March
compared with 1.7 pct in February and 1.3 pct in March 1986,
the State Statistics Institute said.
The annual rate rose to 34.7 pct in March compared with
31.7 pct in February and 34.2 pct in March 1986. The
government's target is to reduce inflation this year to an
annual 20 pct.
The consumer price index, base 1978/79, was 1,957.3
compared with 1,886.8 in February and 1,452.7 in March, 1986.
| Financial Reports |
SCHERING-PLOUGH <SGP> MULLS DR. SCHOLL'S SALE
| Schering-Plough corp said it is
considering the sale of its Dr. Scholl's businesses in Europe,
Latin America and the Far East, which had sales of about 150
mln dlrs in 1986.
The company said the transaction is not expected to have a
material impact on earnings. It said it has engaged Merrill
Lynch and Co Inc <MER> to assist in the sale process.
Schering said it will retain Dr. Scholl's businesses in the
U.S., Canada and Puerto Rico, which had sales of about 135 mln
dlrs last year.
| Other |
FAMILY DOLLAR STORES INC <FDO> 2ND QTR FEB 28
| Shr 28 cts vs 31 cts
Net 8,117,095 vs 8,954,904
Sales 146.7 mln vs 133.0 mln
Avg shares 29.0 mln vs 28.9 mln
First half
Shr 48 cts vs 53 cts
Net 13.8 mln vs 15.2 mln
Sales 273.0 mln vs 242.1 mln
Avg shrs 29.0 mln vs 28.9 mln
| Corporate News |
MCO HOLDINGS INC <MCO> 4TH QTR LOSS
| Oper shr loss 2.27 dlrs vs loss 1.62 dlrs
Oper net loss 12.7 mln vs loss 12.1 mln
Revs 60.0 mln vs 26.2 mln
Year
Oper shr loss 5.16 dlrs vs loss 1.56 dlrs
dOper net loss 29.0 mln vs loss 12.4 mln
Revs 139.3 mln vs 110.0 mln
NOTE: 1985 operating losses exclude profits of 19.5 mln
dlrs, or 2.64 dlrs a share, in quarter and 20.6 mln dlrs, or
2.74 dlrs a share, in year from discontinued operations
1985 loss in both periods includes pre-tax charge of 16.9
mln dlrs on write down of oil properties.
1986 year loss includes pre-tax charge of 23.0 mln dlrs for
write down of oil and gas properties.
| Corporate News |
BUNDESBANK WILL NOT HOLD PRESS CONFERENCE TOMORROW
| The Bundesbank will not hold a press
conference after its regular fortnightly council meeting
tomorrow, a spokesman said in answer to enquiries.
Bundesbank vice-president Helmut Schlesinger will chair the
meeting, as president Karl Otto Poehl has a private engagement.
The next meeting is scheduled for April 16.
| Corporate News |
MANUFACTURERS HANOVER RAISES PRIME RATE TO 7-3/4 PCT FROM
| 7-1/2, EFFECTIVE TODAY
MANUFACTURERS HANOVER RAISES PRIME RATE TO 7-3/4 PCT FROM
7-1/2, EFFECTIVE TODAY
| Financial Reports |
RANSBURG CORP <RBG> 1ST QTR FEB 28 LOSS
| Oper shr loss 19 cts vs profit one ct
Oper net loss 1,495,000 vs profit 50,000
Revs 52.3 mln vs 48.9 mln
NOTE: Earnings exclude gains from utilization of tax loss
carryforwards of 82,000 dlrs, or one ct a share vs 300,000
dlrs, or three cts a share
| Financial Reports |
CONRAC CORP REJECTS MARK IV INDUSTRIES TENDER OFFER,
| EXPLORES ALTERNATIVES
CONRAC CORP REJECTS MARK IV INDUSTRIES TENDER OFFER,
EXPLORES ALTERNATIVES
| Financial Reports |
MANUFACTURERS HANOVER <MHC> RAISES PRIME RATE
| Manufacturers Hanover Trust Co became
the third major U.S. bank to increase its prime rate to 7-3/4
pct from 7-1/2, matching a move initiated yesterday by Citibank
and Chase Manhattan.
The bank, the main subsidiary of Manufacturers Hanover
Corp, said the new rate is effective today.
| Commodities and Trade |
SNYDER OIL PARTNERS LP <SOI> SETS QUARTERLY
| Qtly div 30 cts vs 30 cts prior
Pay April 30
Record April 15
| Commodities and Trade |
MEDAR <MDXR> ACQUIRES OWENS-ILLINOIS <OI> UNIT
| Medar Inc said it
acquired Automatic Inspection Devices Inc, a subsidiary of
Owens-Illinois Inc, Toledo, Ohio, through an exchange of stock
for 80 pct of the company.
Automatic Designs and manufactures a line of machine vision
systems for the packaging, pharmaceutical, electronics and
consumer goods industries.
| Financial Reports |
RAYTECH CORP <RAY> 4TH QTR DEC 28 NET
| Shr profit 78 cts vs loss 1.05 dlrs
Net profit 2,336,000 vs loss 3,002,000
Revs 26.0 mln vs 26.7 mln
Year
Shr profit 1.59 dlrs vs loss 6.35 dlrs
Net profit 4,688,000 vs loss 18.2 mln
Revs 113.5 mln vs 112.4 mln
NOTE: 1986 4th qtr and yr includes loss carryfoward of
534,000 dlrs and 1,662,000 dlrs, respectively.
| Financial Reports |
ALLIS-CHALMERS <AH> ESTIMATES PROCEEDS OF SALE
| Allis-Chalmers Corp said it
expects cash proceeds from the proposed sale of its solids
processing equipment and minerals systems businesses to exceed
90 mln dlrs, with no material gain or loss anticipated from the
planned sale.
Closing of the sale to Boliden AB of Sweden would be part
of the overall restructure of Allis-Chalmers, which was
announced on March Four, the company said.
Allis-Chalmers said the business entities included in the
transaction had total sales of about 250 mln dlrs in 1986, with
total employment of about 4,300.
The solids processing equipment business involves
manufacture of crushing and related equipment for mining. It
consists of operations in Sweden, Australia, Brazil, France,
Great Britain, Spain and Appleton, Wis.
The minerals systems business has operations in West Allis,
Wis., and Lachine, Quebec, Canada.
| Other |
ARGENTINE GRAIN SHIPPING SITUATION
| One grain vessel was awaiting berth
at Bahia Blanca, four at Buenos Aires and five at Rosario, on
March 31, National Grain Board figures show.
The situation at these ports was as follows, giving the
number of ships loading, awaiting berth and expected
respectively.
Bahia Blanca - 4, 1, 1
Buenos Aires - 1, 4, 9
Rosario - 6, 5, 7
The tonnage of grain and oilseeds to be loaded onto ships
loading, awaiting berth and expected at each port was as
follows.
Bahia Blanca - Wheat 161,360.
Buenos Aires - Maize 104,304, Wheat 14,330.
Rosario - Wheat 50,400, maize 157,040, subproducts 50,100,
sunflowerseed 1,000 and millet 3,100.
| Other |
IRVING TRUST <V> RAISES PRIME RATE
| Irving Trust Co said it is raising its
prime rate to 7-3/4 pct from 7-1/2, effective immediately.
It becomes the fourth U.S. bank to raise the rate,
following Citibank, Chase Manhattan and Manufacturers Hanover
Trust.
| Financial Reports |
HOG REPORT SHOWS MORE HOGS ON FARMS
| The USDA quarterly hogs and pig report
yesterday showed more hogs on U.S. farms compared to last year
as profitability resulting from low grain prices encouraged
producers to step up production, analysts said.
Most analysts seemed to agree with Chicago Mercantile
Exchange floor traders that the report will be viewed as
bearish to pork futures and futures prices may open sharply
lower today. Some traders and analysts expect limit declines in
nearby contracts, with spillover selling likely in cattle.
University of Missouri agronomist Glen Grimes said,"The
report shows that hog producers have responded to a very
desirable feeding ratio that they enjoyed for the past 10
months."
Shearson Lehman analyst Chuck Levitt said hog futures
prices are above producers' break even points. Even if futures
fell the daily limit of 1.50 cents today, producers could still
lock in a profit, which increases the likelihood of heavy
selling pressure today.
"We have not had a period of profitability of this
magnitude since last summer," Levitt said. "In fact, hog
operations on many mixed livestock/grain enterprises have been
so profitable that it actually enabled some farmers to get back
on their feet and refinance their loans just based on the hog
operation alone."
Levitt said the weight breakdown in the report also was
negative, in that some lead time was anticipated before the
slaughter increased from the previous year.
We expected farmers to increase hog operations, but we
didn't expect this degree of expansion to show up in a 10-state
spring report, Levitt added.
High hog corn ratios (the number of bushels of corn that
could be bought for 100 lbs of hog) and the resulting increased
profits, encouraged farmers and confinement operations to
increase production starting late last year.
Analysts also noted that part of the increase in the hog
herd resulted from a revision of the December report and
without the revision, the March report might have been very
close to average expectations.
Robin Fuller of Agri Analysis said the USDA made a major
upward revision of 105,000 head in the size of the breeding
herd in the December 1 report. So the December report was more
bearish than initially indicated.
But Fuller, as well as other analysts, expected the report
to be less negative on deferred futures contracts. Distant
contracts are already at a sharp discount to cash because
traders anticipated high farrowing intentions, she noted.
Discounts in the October and December contracts take into
consideration a six to seven pct increase in March/May
farrowing intentions, which was borne out in the March 1
report, Fuller said.
Grimes said, "As far as the distant months are concerned,
if our first quarter pig crop is up only six pct and under 60
lb inventories actually up only five pct, it would take a
tremendous discount in price for each percent increase for us
to push down to the prices that the current futures show for
the July and August period."
Jerry Abbenhaus, analyst for AGE Clearing noted that
distant futures prices are already 15 to 20 dlrs lower than
they were last summer.
"If cash hogs at the 7-markets last year averaged 61 dlrs
during July, that doesn't mean hogs have to be 15 dlrs cheaper
this year because we have six pct more numbers," he said.
| Financial Reports |
CONRAC <CAX> REJECTS MARK IV <IV> OFFER
| Conrac Corp said its board has
rejected MArk IV Industries Inc's tender offer for all Conract
shares at 25 dlrs each, and no Conract director of officer
plans to tender any shares.
The company said financial advisor <Goldman, Sachs and Co>
determined the price to be inadequate.
It said its board has instructed management to explore and
develop with financial and legal advisors alternative courses
of action to maximize shareholder values.
| Other |
TAFT <TFB> HAD NOT COMPLETED TV STATION SALE
| Taft Broadcasting Co said the
sale of its independent television stations to TVX Broadcast
Group, which had been set for yesterday, did not occur.
TVX and its investment bankers, Salomon Inc's <SB> Salomon
Brothers, advised Taft the closing would not be consumated as
scheduled, the company said.
TVX and Salomon also advised Taft they hope to be able to
close in near future, the company said, adding it is prepared
to close at any time.
A Taft spokeswoman referred all questions to TVX and
Salomon.
Taft agreed in November to sell the stations in
Philadelphia, Washington, Miami, Fort Worth-Dallas and Houston
TVX Broadcast for 240 mln dlrs.
At the time, Taft said the transaction would result in an
after tax charge of 45 to 50 mln dlrs.
| Financial Reports |
THYSSEN SEES UP TO 20 PCT LOWER SALES IN 1986/87
| Thyssen AG <THYH.F> expects a fall of
between 15 and 20 pct in consolidated turnover in 1986/87,
chief executive Dieter Spethmann said.
He told journalists the exact decline would depend on
dollar developments. The Thyssen group did over 50 pct of its
business outside West Germany.
Spethmann made no comment on 1986/87 group earnings. World
group net profit fell to 370.1 mln marks in the year ended
September 1986 from 472.4 mln a year earlier on group sales
which fell to 40.00 billion marks from a previous 44.32
billion.
Last week Spethmann told the annual meeting Thyssen
expected to post a good profit in 1986/87 despite expected
losses in the mass steel-making operations this year.
Spethmann said engineering turnover would not be lower this
year, but lower steel prices would result in a drop in steel
turnover and sales volume. This would also affect Thyssen's
trading operations, he said.
Spethmann also categorically denied a magazine article
published this week which spoke of a dispute between him and
Heinz Kriwet, management board chairman of Thyssen Stahl AG,
over planned job cuts in steel plants in the Ruhr area.
| Financial Reports |
DATAMAG INC <DMAG> 1ST QTR DEC 31 LOSS
| Net loss 92,623 vs profit 11,209
Sales 93,483 vs 189,388
Note: per share data not available, as company went public
in January, 1987.
| Financial Reports |
CYCLOPS <CYL> NAMES DIXONS OFFICIALS TO BOARD
| Cyclops corp said it has
reconstituted its board to include three <Dixons Group PLC>
executives following Dixons' acquisition of 83 pct of Cyclops'
4,061,000 shares in a 95 dlr per share tender offer.
Cyclops said remaining on the six-member board are chairman
and chief executive W.H. Knoell, president and chief operating
officer James F. Will and senior vice president William D.
Dickey.
| Financial Reports |
SOUTHMARK <SM> COMPLETES ACQUISITION
| Southmark Corp said it has completed the
purchase of Georgia International Life Insurance Co from
Capital Holding Corp <CPH> for cash and Southmark securities
worth over 85 mln dlrs.
| Market and Economy |
VALHI <VHI> REPORTS PRO-FORMA EARNINGS
| Valhi Inc, formed by the March 10 merger
of Amalgamated Sugar Co into LLC Corp, said it had unaudited
pro-forma earnings of 72 mln dlrs, or 61 cts a share, for the
six months ended December 31.
Valhi said these results were prepared as if the merger had
occurred July 1, 1986, and on substantially the same basis as
the pro-forma financial information in LLC's and Amalgamated's
joint proxy statement dated February 10.
Valhi said it has about 117 mln common shares outstanding
with about 85 pct held by <Contran Corp>.
| Financial Reports |
ROYAL BANK SEES IMPROVED RESULTS
| <Royal Bank of Canada>, in reporting a
19 pct drop in first quarter earnings, said it expects to
report improved results in future earnings periods.
"Healthy consumer credit growth, record fee-based income,
highly profitable securities and foreign exchange trading, and
a solid capital position...combined with the restraint of
non-interest expenses, should lead to improved results in the
periods ahead," chairman Allan Taylor said in a statement.
The bank earlier reported profit for the first quarter
ended January 31 fell to 114 mln dlrs from 140 mln dlrs a year
ago.
Taylor said loans to the energy sector continue to
substantially hurt earnings while profitability of the bank's
international operations remains weak, reflecting
resource-related difficulties of private and public sector
borrowers and unsatisfactory results from capital market
activities.
The bank said earnings from domestic operations rose to 103
mln dlrs in the first quarter from 98 mln dlrs a year ago while
earnings from international operations plunged to 11 mln dlrs
from 42 mln dlrs last year.
Royal Bank said first quarter international net interest
income declined from last year, reflecting reduced revenues
from international investment banking as well as a significant
loss on disposal of its affiliate in Trinidad and Tobago.
Other income rose to 251 mln dlrs from 220 mln dlrs last
year. The rise was due to higher commercial banking and retail
deposit service fees, and higher foreign exchange revenue but
lower securities commissions from international investment bank
operations partly offset the gains, Royal Bank said.
The bank said a two billion dlr increase in total assets to
98.7 billion dlrs was due mainly to continued growth in
consumer lending, particularly residential mortgages.
| Corporate News |
ACME-CLEVELAND CORP <AMT> SETS QUARTERLY
| Qtly div 10 cts vs 10 cts prior
Pay May 13
Record April 29
| Financial Reports |
U.S. OIL/LARD STATISTICS
| U.S. Census Bureau figures released
here showed factory and warehouse stocks on Feb 28 included the
following, with comparisons, in mln lbs --
02/28/87 01/31/87 02/28/86
Soybean Oils --
Crude 1,663.3-x 1,542.6 893.7
Refined 300.5-x 294.7-r 287.4
Total 1,963.8-x 1,837.3-r 1,181.1
Cotton Oils --
Crude 65.7 55.8-r 64.5
Refined 122.3 109.6-r 119.6
Total 188.0 165.4-r 184.1
X-Revised from preliminary data released in the bureau's
oilseeds report of March 23. R-Revised.
Factory and Warehouse Stocks, continued -
02/28/87 01/31/87 02/28/86
Corn Oils --
Crude 32.5 32.3-r 44.2
Refined 65.8 54.4-r 39.9
Total 98.3 86.7-r 84.1
Lard 31.4 31.5-r 36.4
R-Revised.
| Corporate News |
VMS STRATEGIC LAND TRUST <VLANS> SETS PAYOUT
| VMS Strategic Land Trust declared an
initial dividend of 30 cts a share payable May 15 to
shareholders of record April 20.
The dividend represents a 12 pct annual return based on the
company's original offering price in December of 10 dlrs a
share. The return is guaranteed through December 31, 1988, the
company said.
The trust invests in short term junior preconstruction
mortgage loans and has total principal amount of investments of
approximately 105.7 mln dlrs.
| Commodities and Trade |
CHEMICAL <CHL> RAISES PRIME RATE TO 7-3/4 PCT
| Chemical Bank, the main bank subsidiary
of Chemical New York Corp, said it is raising its prime lending
rate to 7-3/4 pct from 7-1/2 pct, effective immediately.
| Market and Economy |
<COMINCO LTD> LOWERS PRICE OF LEAD METAL
| Cominco Ltd said its
Cominco metals division lowered the price for lead metal sold
in Canada by 1/2 Canadian cts per pound to 34 Canadian cts per
pound.
| Corporate News |
MIDWEST CASH GRAIN - SLOW COUNTRY MOVEMENT
| Cash grain dealers reported slow country
movement of corn and soybeans across the Midwest, with even
corn sales from PIK-and-roll activity seen earlier this week
drying up.
Some dealers said the USDA may further adjust the posted
county price at the Gulf to take into account high barge
freight rates as a way to keep corn sales flowing, but added
the current plan probably will be given a few weeks to see if
it will work as hoped.
Corn and soybean basis values continued to drop on the
Illinois and MidMississippi River due to the strong barge
freight rates. Toledo and Chicago elevators were finishing
loading the first corn boats of the new shipping season,
supporting spot basis values at those terminal points.
CORN SOYBEANS
TOLEDO 5 UND MAY UNC 1 UND MAY UNC
CINCINNATI 1 UND MAY UNC 1 OVR MAY UP 2
NEW HAVEN 12 UND MAY UNC 2 UND MAY DN 1
N.E. INDIANA 10 UND MAY UNC 2 OVR MAY DN 1
CHICAGO 1/2 OVR MAY UNC 5 UND MAY UNC
SENECA 51/2 UND MAY DN 1 7 UND MAY UNC
DAVENPORT 61/2UND MAY DN61/2 61/2UND MAY DN11/2
CLINTON 5 UND MAY DN 3 UA
CEDAR RAPIDS 11 UND MAY DN 3 13 UND MAY DN 2
HRW WHEAT
TOLEDO 58 LB 35 OVR MAY UP 1
CHICAGO 57 LB 25 OVR MAY UNC
CINCINNATI DP 10 OVR MAY UNC
NE INDIANA DP 8 OVR MAY UNC
PIK CERTIFICATES - 103/104 PCT - UNC/ DN 2
NC - NO COMPARISON UA - UNAVAILABLE
UNC - UNCHANGED DP - DELAYED PRICING
| Other |
FED BUYING ONE BILLION DLRS OF BILLS FOR CUSTOMER
| ACCOUNT, FED SAYS
FED BUYING ONE BILLION DLRS OF BILLS FOR CUSTOMER
ACCOUNT, FED SAYS
| Financial Reports |
MIDWEST CASH GRAIN - SLOW COUNTRY MOVEMENT
| Cash grain dealers reported slow country
movement of corn and soybeans across the Midwest, with even
corn sales from PIK-and-roll activity seen earlier this week
drying up.
Some dealers said the USDA may further adjust the posted
county price at the Gulf to take into account high barge
freight rates as a way to keep corn sales flowing, but added
the current plan probably will be given a few weeks to see if
it will work as hoped.
Corn and soybean basis values continued to drop on the
Illinois and MidMississippi River due to the strong barge
freight rates. Toledo and Chicago elevators were finishing
loading the first corn boats of the new shipping season,
supporting spot basis values at those terminal points.
| Commodities and Trade |
MARINE MIDLAND <MMB> RAISES PRIME RATE
| Marine Midland Banks Inc said it is
raising its prime lending rate to 7-3/4 pct from 7-1/2 pct,
effective immediately.
| Financial Reports |
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES
| The Federal Home Loan Bank Board
adjusted the rates on its short-term discount notes as follows:
MATURITY NEW RATE OLD RATE MATURITY
30-69 days 5.00 pct 5.00 pct 30-124 days
70-88 days 5.92 pct 5.90 pct 125-150 days
89-123 days 5.00 pct 5.00 pct 151-173 days
124-150 days 5.93 pct 5.92 pct 174-182 days
151-349 days 5.00 pct 5.00 pct 183-349 days
350-360 days 5.98 pct 5.94 pct 350-360 days
| Financial Reports |
TURKISH CENTRAL BANK SETS LIRA/DOLLAR, DM RATES
| The Turkish Central Bank set a
lira/dollar rate for April 2 of 780.00/783.90 to the dollar,
down from the previous 777.00/780.89. The Bank also set a
lira/mark rate of 429.15/431.30 to the mark, up from the
previous 430.50/432.65.
| Financial Reports |
ASARCO LOWERS COPPER PRICE 1.50 CTS TO 67 CTS
| Asarco Inc said it is decreasing its
domestic delivered copper cathode price by 1.50 cents to 67.0
cents a lb, effective immediately.
| Corporate News |
FED BUYS ONE BILLION DLRS OF BILLS FOR CUSTOMER
| The Federal Reserve is buying one
billion dlrs of Treasury bills for customer account for
delivery today, a spokesman for the bank said.
Fed funds were trading at 6-3/16 pct at the time of the
purchase, which came several hours before the Fed normally
transacts business for its customers.
Economists said the purchase was almost certainly related
to the investment of proceeds from recent central bank
intervention in the foreign exchanges.
The Bank of Japan alone is estimated to have bought about
six billion dlrs in March in a bid to prop up the dollar.
| Financial Reports |
GEORGIA-PACIFIC TO HAVE 60 MLN DLR PRETAX GAIN FROM SALE
| OF GEORGIA GULF STAKE
GEORGIA-PACIFIC TO HAVE 60 MLN DLR PRETAX GAIN FROM SALE
OF GEORGIA GULF STAKE
| Commodities and Trade |
KENYAN MINISTER FORECASTS ECONOMIC EXPANSION
| Kenya's economy will continue to expand
this year and the government will do more to encourage
investment by foreign firms and the local private sector,
Planning Minister Robert Ouko said.
He told a news conference that the government would soon
create a special bureau to expedite processing of investment
applications by local and foreign investors.
Praising the role of multinational companies and local
entrepreneurs in Kenya's economy, the minister promised to
maintain a close working contact with the private sector.
The economy grew by 5.3 pct last year, up from 4.1 pct in
1985, Ouko said. This was owing to high prices for the
country's coffee exports, low oil prices, low inflation and
rising real incomes, he added.
"Despite rising petroleum prices and falling coffee prices,
Kenya's economy is still expected to improve in 1987," the
planning minister said.
Agriculture would expand significantly if favourable
weather continued and farmers responded to producer price rises
announced in February, the minister added.
Kenyan farmers are anxiously awaiting the arrival of the
long rainy season, which is due to start about now.
Ouko said the production of Kenya's main cash crops
increased during the second half of last year.
Coffee deliveries to the state-run Coffee Board of Kenya
rose 17 pct and tea deliveries rose four pct during the period,
he said.
| Financial Reports |
U.S. VEGETABLE OIL PRODUCTS OUTPUT IN FEBRUARY
| U.S. factories used 1,053.0 mln lbs
of various vegetable oils in the production of edible products
during February, the Census Bureau reported.
That compared with a revised usage of 1,075.0 mln lbs in
January and 1,084.2 mln lbs in February, 1986.
February production of selected products included the
following, with comparisons, in mln lbs --
Feb 87 Jan 87 Feb 86
Baking or
Frying Fats -- 355.5 387.6-r 427.4
Soybean Salad and
Cooking Oil -- 388.1 373.3-r 351.7
R-Revised.
Production, continued (in mln lbs --)
Feb 87 Jan 87 Feb 86
Other Salad and
Cooking Oils 111.2 111.4-r 114.3
Margarine 218.8 216.9-r 214.4
Glycerine --
Crude 21.5 25.9 31.3
Refined 23.5 23.6-r 25.4
Fatty Acids 102.9 112.5-r 113.1
Meat/Meal
Tankage 410.2 458.2-r 446.2
R-Revised.
REUTER^M
| Financial Reports |
BEECHAM GROUP <BHAMY> TO SELL UNIT
| Privately-held investment firm
<Dubin Clark and Co> said it has signed a definitive agreement
for an investment group it heads to acquire Roberts
Consolidated Industries from <Beecham Group PLC> for 45 mln
dlrs.
Roberts makes and distributes accessories, adhesives and
tools used in carpet installation.
Dubin Clark said its group includes Roberts management and
London investment company <J. Rothschild Holdings PLC>. It
said Ronald J. Dubin will become vice chairman of Roberts and
J. Thomas Clark chairman.
REUTER^M
| Market and Economy |
U.S. TALLOW PRODUCTION AND STOCKS
| U.S. factory production of inedible
tallow and grease amounted to 421.5 mln lbs in February, vs a
revised 471.5 mln lbs the previous month and 419.2 mln lbs in
the year-ago period, the Census Bureau said.
The bureau placed February factory production of edible
tallow at 96.9 mln lbs, vs a revised 111.4 mln lbs the previous
month and 122.7 mln lbs in February a year earlier.
It estimated factory and warehouse stocks of inedible
tallow on February 28 at 410.7 mln lbs, vs a revised 351.6 mln
the previous month and 361.9 mln in February, 1986.
End-Feb stocks of edible tallow amounted to 41.9 mln lbs,
vs a revised 40.1 mln lbs and 48.6 mln lbs in their respective
periods.
Factory consumption of inedible tallow and grease in
February was assessed at 238.3 mln lbs, vs a revised 250.4 mln
lbs a month earlier and 220.5 mln lbs in the year-ago period.
During February, factories used 65.3 mln lbs of edible
tallow, vs a revised 71.8 mln and 84.6 mln, respectively.
Total factory production and consumption of tallow in the
1987 marketing season, which began Jan 1, vs the 1986 season,
were as follows, in mln lbs --
Production -- 1987 1986
Inedible 893.0 920.1
Edible 208.3 274.7
Consumption --
Inedible 488.7 473.7
Edible 137.1 176.4
| Market and Economy |
COMINCO LTD CUTS LEAD PRICE IN CANADA
| Cominco Ltd said its
Cominco metals division lowered the price for lead metal sold
in Canada by 1/2 Canadian cts per pound to 34 Canadian cts per
pound.
| Corporate News |
MERCANTILE BANK N.A. <MTRC> RAISES PRIME RATE
| Mercantile Bancorp said its Mercantile
Bank N.A. raised its prime rate to 7-3/4 pct from 7-1/2 pct,
effective immediately.
| Other |
U.S. LARD CONSUMPTION IN FEBRUARY
| U.S. factory usage of lard in the
production of both edible and inedible products during February
totaled 22.0 mln lbs, vs a revised 20.2 mln lbs in January,
according to Census Bureau figures.
In the year-earlier period, usage, which includes
hydrogenated vegetable and animal fats and other oils in
process, amounted to 31.4 mln lbs.
Usage in February comprised 16.6 mln lbs of edible products
and 5.4 mln lbs of inedible products.
Total lard usage in the 1986/87 marketing season, which
began October 1, amounted to 125.2 mln lbs, vs 185.6 mln lbs in
the year-ago period.
| Commodities and Trade |
AUTOSPA <LUBE> TO BUY CONTROL OF CARDIS <CDS>
| Autospa Corp said it has signed an
agreement to purchase 2,400,000 shares of eight pct convertible
preferred stock of Cardis Corp -- representing voting control
-- for 15 mln dlrs.
The company said the preferred purchase will be financed by
an investment group led by Autospa.
It said it will also receive from Cardis five-year options
to buy 2,400,000 Cardis common shares at 6.25 to seven dlrs
each, depending on the time of exercise, and warrants to
purchase about 3,200,000 shares at 6.60 to 7.60 dlrs each.
The company said the exercise of all options and warrants
by Autospa would result in a tital investment of 50 to 55 mln
dlrs. Execution of a definitive agreement is expected by April
22, it said, subject to the completion of financing
arrangements, and closing is expected by May 15.
| Corporate News |
FRENCH FARMERS PLAN TO CUT MAIZE PLANTINGS
| French farmers are planning to cut their
maize sowings by between 100,000 and 150,000 hectares this year
from the 1.87 mln ha harvested in 1986, the French Maize
Producers' Association, AGPM, said.
It said its first estimate of planting intentions indicated
cuts of 15 to 20 pct in plantings in the northern region of
Picardy and the Paris Basin, which harvested 192,000 ha last
year.
In the centre-west region of Poitou-Charentes, plantings
were estimated four to seven pct up on last year's harvested
244,000 ha.
Planting intentions in the south-east ranged between nine
pct less and two pct more than last year's 125,000 ha. In the
south-west the AGPM said producers intended to plant a similar
area to last year's 671,100 harvested hectares, provided water
supplies are adequate in the Midi-Pyrenees region after the
last two years of drought.
Meanwhile, the oilseed plant breeding association, AMSOL,
said sunflower plantings in France this year are indicated at
between 900,000 and 950,000 ha against 829,000 harvested last
year, while soya plantings are indicated at 80,000 ha against
last year's harvested 48,000.
| Commodities and Trade |
WEATHERFORD INTERNATIONAL INC <WII> 4TH QTR LOSS
| Shr loss 40 cts vs loss 1.30 dlrs
Net loss 3,619,000 vs loss 11.3 mln
Revs 24.1 mln vs 34.1 mln
Year
Shr loss 4.36 dlrs vs loss 2.09 dlrs
Net loss 38.7 mln vs loss 16.8 mln
Revs 104.6 mln vs 133.9 mln
| Financial Reports |
PROGRESSIVE SAVINGS <PRSL> 4TH QTR LOSS
| Shr loss 1.05 dlrs vs profit three cts
Net loss 4,477,000 vs profit 107,818
Revs 10.9 mln vs 13.8 mln
Year
Shr loss 79 cts vs profit three cts
Net loss 3,364,058 vs profit 123,880
Revs 50.9 mln vs 57.2 mln
Note: Full name Progressive Savings and Loan Association.
Current year figures include 5.1 mln dlr incrase to
reserves for estimated real estate and loan losses.
| Financial Reports |
ALLIED SUPERMARKETS <ASU> FILES PROPOSED MERGER
| Allied Supermarkets Inc said it filed a
registration statement with the Securities and Exchange
Commission for a proposed merger with <The Vons Companies>, a
supermarket, combination store operator.
Allied said the statement covers 140 mln dlrs of senior
subordinated discount debentures and 100 mln dlrs of
subordinated debentures, principal amounts, with a proposed
aggregate offering price of about 100 mln dlrs for each issue.
Drexel Burnham Lambert Inc and Donaldson, Lufkin and
Jenrette Securities Inc are co-underwriters of both issues,
which Allied expects to offer in early June, Allied said.
| Financial Reports |
BELGIAN SAYS EC WOULD REACT TO TEXTILE BILL
| Belgian Foreign Trade Minister Herman
De Croo said if Congress passed legislation curbing world
textile imports the only way the European Community (EC) could
react was to retaliate.
De Croo said at a news conference "if you limit textile
imports, you will re-orient textiles to Europe."
And that he said would trigger EC taxes on U.S. goods.
Congress passed a textile bill two years ago, but it was
vetoed by President Reagan on grounds that curbing imports to
protect the domestic textile industry would trigger retaliation
U.S. trading partners.
A similar bill has been introducted this year, in a
Congress with a bigger Democratic majority and with a President
weakened by the Iran scandal.
De Croo, here for talks with Administration officials and
Congressmen, said if a textile bill passed, "the only way we
could react would be retaliation, and it would cause more
retaliation, which is not a good way to deal with problems."
He said if a textile bill was enacted, "we will impose taxes
on a lot of American products." He said "it would be stupid. We
have to avoid that."
He said Congressmen seem upset mosty with Japan, because of
its massive trade suprlus with the United States, and not with
EC nations, but EC nations will be hurt by the diverted
shipments of Asian textiles.
De Croo also criticized the way U.S. officials try to solve
EC trade issues, saying "each time we come in contact, it a
conflict contact. The clouts are coming fom the West."
He said it then is a crisis atmosphere with officials cross
the Atlantic and dramatized with headlines.
"This is not the way to work in a serious way between two
big powers," De Croo said.
| Corporate News |
CERTIFICATED COTTON STOCKS
| Certificated cotton stocks deliverable
on the New York Cotton Exchange No 2 cotton futures contract as
of March 31 were reported at 36,659 bales, unchanged from the
previous day's figure. There were no bales awaiting review and
985 bales awaiting decertification.
| Market and Economy |
FINLAND REVISES CURRENCY BASKET
| The Bank of Finland said it has revised
the weightings in its currency basket with effect from today.
Weightings match the respective country's share in Finland's
foreign trade.
Weights in percentages compared with former weights.
Dollar 9.0 (8.8)
Sterling 14.3 (13.8)
Swedish crown 20.4 (20.6)
Norwegian crown 5.2 (5.2)
Danish crown 5.2 (5.3)
German mark 19.3 (19.6)
REUTER^M
| Market and Economy |
JOHN O. BUTLER CO <BUTC> 2ND QTR FEB 28 NET
| Shr 19 cts vs 18 cts
Net 1,230,041 vs 1,153,280
Sales 10,909,729 vs 9,675,355
Six mths
Shr 31 cts vs 29 cts
Net 2,019,930 vs 1,857,357
Sales 21.0 mln vs 17.8 mln
| Commodities and Trade |
<GUILLEVIN INTERNATIONAL INC> YEAR JAN 31 NET
| Shr 51 cts vs 36 cts
Net 2,543,285 vs 1,686,559
Sales 153.2 mln vs 120.7 mln
| Market and Economy |
COSMO COMMUNICATIONS CORP <CSMO> YEAR LOSS
| Shr loss one ct vs loss 2.16 dlrs
Net loss 30,000 vs loss 12.4 mln
Revs 27.4 mln vs 38.3 mln
| Corporate News |
LINEAR <LNER> SEES LOWER COMPARABLE 4TH QTR NET
| Linear Films Inc said its fourth
quarter earnings for the period ended March 31, will be lower
than the 1,235,000 dlrs or 19 cts a share reported in the
year-ago quarter on sales of 11.8 mln dlrs.
The company attributed the lower earnings to narrowing
profit margins on stretch film.
Linear also said it is increasing its stretch film prices
by six pct effective April 15.
| Financial Reports |
KAY CORP <KAY> 4TH QTR NET
| Oper shr 25 cts vs 1.21 dlrs
Oper net 1,366,000 vs 6,287,000
Revs 251.3 mln vs 107.1 mln
Year
Oper shr 1.10 dlrs vs 1.06 dlrs
Oper net 5,552,000 vs 4,982,000
Revs 827.5 mln vs 434.4 mln
NOTE: Oper net excludes results of Kay Jewelers Inc, a
former subsidiary. On Dec 31, 1986 company distributed
remaining 80.4 pct interest in subsidiary to Kay Corp holders.
1985 amts restated in connection with company's
distribution of investment in Kay Jewelers Inc.
1986 4th qtr and yr oper net excludes 8,308,000 dlrs or
1.52 dlrs per share, and 7,774,000 dlrs or 1.54 dlrs per share,
respectively, for equity in net income of spun-off unit. 1985
4th qtr and yr oper net excludes 6,806,000 dlrs or 1.28 dlrs
per share and 5,770,000 dlrs or 1.09 dlrs per share,
respectively, for equity in net earnings of spun-off unit.
1985 oper net also excludes 2,778,000 or 52 cts per share
for adoption of new pension accounting rules and ine cts per
share for gain from assets sales.
| Corporate News |
STAODYNAMICS INC <SDYN> 4TH QTR NET
| Shr three cts vs six cts
Net 54,965 vs 106,147
Revs 2,124,983 vs 1,915,928
Avg shrs 2,206,017 vs 1,878,438
Year
Shr 14 cts vs eight cts
Net 302,388 vs 157,690
Revs 7,952,360 vs 7,495,936
Avg shrs 2,139,991 vs 2,051,178
| Corporate News |
1ST SOURCE <SRCE> COMPLETES MERGER
| 1st Source Bank said it
completed its merger with <Community State Bank> of North
Liberty, Ind.
The bank said Community State Bank's shareholders approved
the merger at a meeting last Saturday, while Monday the
directors of 1st Source also approved the move.
The merger would add Community Bank's 20 mln dlrs in assets
to 1st Source's more than one billion dlrs in assets, 1st
Source said.
| Corporate News |
FIRST NATIONAL BANK CORP TO BUY BRANCH
| First National Bank Corp,
the newly formed parent of First National Bank in Mount
Clemens, Mich., and Bankers Fund Life Insurance Co, said it
reached an agreement to buy a branch in Clinton Township from a
nonrelated financial institution.
It said the acquisition brings to 10 the number of bank
branches in Macomb County. Terms were not disclosed.
Separately, the newly formed holding company also said it
named Arie Guldemond as chairman and Harold Allmacher as
president and chief executive officer.
| Financial Reports |
GEORGIA PACIFIC <GP> SEES GAIN FROM SALE
| Georgia-Pacific Corp said its second
quarter results will include a gain of 60 mln dlrs pre-tax, or
34 cts per share after-tax, from the sale of its interest in
<Georgia Gulf Corp>.
The company said it is selling warrants for about 1.8 mln
shares of Georgia Gulf common stock to Goldman Sachs and Co in
connection with the 4.8 mln share offering of Georgia Gulf.
It said it received the warrants when it agreed to sell its
commmodity chemical operations to Georgia Gulf in 1984.
| Financial Reports |
U.S., ARGENTINA SETTLE SOYPRODUCT CASE - YEUTTER
| U.S. Trade Representative Clayton
Yeutter said the United States and Argentina have settled a
case brought by the U.S. soybean crushing industry alleging
unfair subsidies to Argentina's crushing industry.
Speaking to an Agribusiness Education forum here late
yesterday, Yeutter said the case was resolved at a meeting with
Argentine Agriculture Secretary Ernesto Figuerras during a
trade ministers' meeting in New Zealand last week.
Under a verbal understanding between the two ministers,
Argentina will soon abolish export taxes on soybeans and
products, U.S. and Argentine officials said.
The U.S. case brought by the U.S. National Soybean
Processors Association alleged Argentina, through differential
export taxes, implicitly subsidized domestic soybean crushers.
The U.S. crushing industry, in its complaint under Section
301 of trade law, said higher Argentine export taxes on
soybeans than on products encourage the export of products and
represented an unfair trade practice.
Yeutter told Figuerras that all agencies of the U.S.
government supported the U.S. complaint and unless Argentina
took steps to eliminate the taxes, the United States would
consider taking further action in the case, U.S. and Argentine
officials said.
An Argentine official here said no timetable was given for
removal of the Argentine export taxes.
| Other |
CONTINENTAL ILLINOIS <CIL> RAISES PRIME RATE
| Continental Illinois Corp said it has
raised its prime rate to 7-3/4 from 7-1/2.
| Financial Reports |
THOUSAND TRAILS INC <TRLS> YEAR LOSS
| Shr loss 4.87 dlrs vs profit 16 cts
Net loss 50,422,000 vs profit 1,788,000
Revs 113.4 mln vs 173.7 mln
Note: Current year figures include 33.3 mln dlr after-tax
writedown of land and improvements, a 5.6 mln dlr increase in
allowance for doubtful accounts and after-tax gain of three mln
dlrs on debt retirement.
| Financial Reports |
VISTA ORGANIZATION LTD <VISA> YEAR NET
| Shr profit one ct vs loss nine cts
Net profit 177,061 vs loss 1,364,878
Revs 5,913,334 vs 487,121
Avg shrs 18.6 mln vs 15.9 mln
| Financial Reports |
TCA CABLE TV INC <TCAT> SETS QUARTERLY
| Qtly div six cts vs six cts prior
Pay April 23
Record April Nine
| Financial Reports |
MONSANTO <MTC> INVESTS IN BIOTECHNOLOGY <BIOD>
| Biotechnology Development Corp
said its Medicontrol Corp subsidiary received a 500,000 dlr
investment by Monsanto Co's G.D. Searle and Co subsidiary.
The company said the investment was made pursuant to an
option Searle held, and increases Searle's stake in Medicontrol
to 19.8 pct with a total investment of one mln dlrs.
| Financial Reports |
CHASE <CMB> BUYS BORG-WARNER <BOR> UNIT
| Chase Manhattan Corp said Chase
Trans-Info, a subsidiary of its Chase Manhattan Bank N.A. unit,
has bought Borg-Warner Corp's Traffic Services business,
including an Illinois processing center, for an undisclosed
sum.
Borg Warner Traffic Services provides freight bill
pre-audit, payment and information services to industry through
Borg-Warner Acceptance Corp.
Chase Trans-Info, which offers similar services, is now the
largest provider of information services for the transportation
industry.
| Corporate News |
MOUNTAIN STATES <MTSR> ADDES TWO PROPERTIES
| Mountain States Resources Corp
said it acquired two properties to its strategic minerals
holdings.
The acquisitions bring to its land position a total of
5,100 acres of titanium, zirconium and rare earth resources,
the company said.
Both properties, located in southern Utah, consist of
approximately 1,430 acres of unpatented mining claims and one
state lease, it said.
The company also announced the formation of Rare Tech
Minerals Inc, a wholly-owned subsidiary.
| Financial Reports |
OHIO MATTRESS <OMT> MAY HAVE LOWER 1ST QTR NET
| Ohio Mattress Co said its first
quarter, ending February 28, profits may be below the 2.4 mln
dlrs, or 15 cts a share, earned in the first quarter of fiscal
1986.
The company said any decline would be due to expenses
related to the acquisitions in the middle of the current
quarter of seven licensees of Sealy Inc, as well as 82 pct of
the outstanding capital stock of Sealy.
Because of these acquisitions, it said, first quarter sales
will be substantially higher than last year's 67.1 mln dlrs.
Noting that it typically reports first quarter results in
late march, said the report is likely to be issued in early
April this year.
It said the delay is due to administrative considerations,
including conducting appraisals, in connection with the
acquisitions.
| Financial Reports |
PANTASOTE INC <PNT> 4TH QTR LOSS
| Oper shr loss four cts vs loss 33 cts
Oper net loss 154,000 vs loss 1,301,000
Sales 30.0 mln vs 27.0 mln
Year
Oper shr profit 60 cts vs loss 16 cts
Oper net profit 2,364,000 vs loss 608,000
Sales 113.5 mln vs 132.8 mln
NOTE: Net excludes extraordinary charges from provision for
roofing products warranties and costs from sale of
printing/laminate division of 320,000 dlrs vs 10.3 mln dlrs in
quarter and 4,3200,000 dlrs vs 12.7 mln dlrs in year.
Net excludes tax credits of 62,000 dlrs vs 41,000 dlrs in
quarter and 127,000 dlrs vs 88,000 dlrs in year.
| Other |
REPUBLIC SAVINGS AND LOAN <RSLA> SETS DIVIDEND
| Qtly div 30 cts vs 30 cts prior
Pay April 27
Record April 13
NOTE: Company's full name is Republic Savings and Loan
Association of Wisconsin.
| Financial Reports |