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CBI SURVEY POINTS TO SURGE IN U.K. OUTPUT
| British manufacturers expect output to
grow rapidly in the four coming months, a Confederation of
British Industry (CBI) survey shows.
The CBI's monthly trends survey for March shows that 43 pct
of the 1,685 polled U.K. Firms expect to raise output in the
next four months. Only nine pct expect output to fall while 47
pct said production would likely remain unchanged.
The CBI said the positive balance between firms expecting
production to rise and those forecasting a fall, at 34 pct, was
the highest such figure recorded since 1977.
In the CBI's February survey, 37 pct of companies expected
a rise in output while 54 pct forecast production would remain
at present levels and eight pct expected production to drop.
The survey also showed that 23 pct of the polled companies
consider current order books to be above normal while 58 pct
view them as normal and only 19 pct regard them as below
normal.
This was the highest positive balance since the question
was first asked more than 10 years ago, the CBI said.
In February, the figures were 24 pct, 22 pct and 54 pct
respectively.
Companies also rated their export possibilities higher. Of
all polled companies, 23 pct rated their export order books to
be above normal and 53 pct described them as normal while only
23 pct believed export orders were below normal levels.
In February, 25 pct thought their export books were below
normal and 50 pct believed them to be about normal. At 23 pct,
the proportion of companies rating their export books above
normal was unchanged between February and March.
On prices, the survey showed that 62 pct of companies
expect average prices at which domestic orders are booked will
remain unchanged in the coming four months, up from 57 pct in
February.
| Corporate News |
YEUTTER SEES GATT CONSENSUS ON FARM TRADE REFORM
| U.S. Trade Representative
Clayton Yeutter said trade ministers meeting here have reached
a general consensus on agricultural trade reform under the
latest Uruguay round of the General Agreement on Tariffs and
Trade (GATT).
Yeutter gave no precise details of the understanding but
told journalists the consensus covers the principles involved
in agricultural trade reform and what needs to be done to
improve the global situation in agriculture.
Delegates from 22 countries are meeting informally to
discuss progress made since the latest GATT round was launched
in Punta del Este, Uruguay, last September.
Yeutter said "at least people seem to be going down the same
road...But how that translates ultimately into negotiations is
another matter entirely."
There seems to be an understanding of the need to deal with
the problem quickly and "a more common understanding of how we
are going to get from here to there," Yeutter said.
However, the hard work is still to come, with a couple of
years of tough negotiations ahead, he said.
"It is ludicrous for the nations of the world to plough
immense amounts of financial resources into the production of
items that nobody wants to buy," he said.
He said the long-term answer is to switch some of the
financial resources now committed to agriculture to other more
productive areas. This would help agriculture because some its
inefficient non-productive segments would stop operating, he
said.
Individual segments in many countries may lose in the
process, but it should result in a more rational system of
world-wide production within 10 or 15 years, he said.
It is important that the agriculture negotiations reach a
relatively early conclusion because the U.S. Is spending 26
billion dlrs a year and the European Community probably more
than that, which is an ineffective use of financial resources,
he said.
Asked about the prospect of a priority for agriculture in
the negotiations, he said "one has to be politically
realistic... If there is any chance of getting it (agricultural
trade reform) done in two to three years it's going to have to
be as part of a larger package."
| Commodities and Trade |
NAKASONE INTERVENES IN MICROCHIP DISPUTE
| Prime Minister Yasuhiro Nakasone
intervened to try to resolve Japan's escalating dispute with
the U.S. Over semiconductor trade, government officials said.
At today's Cabinet meeting, Nakasone told Trade and
Industry Minister Hajime Tamura to redouble his efforts to calm
U.S. Anger over what it sees as Japan's unfair trade practices
in semiconductors.
Nakasone intervened only two days before a scheduled
meeting of the Reagan administration's Economic Policy Council
to consider whether Japan is reneging on its microchip pact
with the U.S.
That pact, agreed last year after months of negotiations,
calls on Japan to stop selling cut-price chips in world markets
and to raise its imports of U.S. Semiconductors.
Senior U.S. Officials have accused Tokyo of failing to live
up to the accord and have threatened retaliatory action.
Yesterday, Tamura's Ministry of International Trade and
Industry (MITI) launched a last-ditch attempt to salvage the
pact by writing letters to U.S. Policy makers setting out
Japan's case and telling Japanese chip makers to cut output.
In his letter, the contents of which were released today,
Tamura said a MITI survey carried out at the beginning of March
showed Japanese producers were not selling at cut-rate prices
in Asian markets.
In a separate letter sent to senior U.S. Officials, MITI
vice minister for international affairs Makoto Kuroda suggested
the two countries could conduct a joint investigation into
allegations of Japanese chip dumping in such markets.
| Other |
DOUBTS ABOUT ACCORD SEEN WEAKENING DOLLAR FURTHER
| The dollar is expected to decline further
in coming days as scepticism mounts about the effectiveness of
last month's Paris accord to stabilise currency exchange rates,
senior foreign exchange dealers said.
Following its fall today to a record 148.40 yen, dealers
said they expect the dollar to establish a new trading range of
147 to 150 yen before the market again tries to push it down.
Behind the latest dollar fall lies the belief that last month's
accord was no longer enough to stop operators pushing the
dollar down, the dealers said.
"The recent remark by U.S. Treasury Secretary James Baker
that the Paris accord did not set any target ranges for major
currencies has cast a shadow on the agreement," said Koji
Kidokoro, general manager of Mitsui Bank Ltd's treasury
division.
He said the market interpreted this as indicating the U.S.
Would favour a weaker dollar and it had little intention of
intervening to support the currency.
"This eliminated the widespread market caution against
possible joint central bank intervention," Kidokoro said.
Dealers said the dollar had gathered renewed downward
momentum and that Bank of Japan intervention alone could hardly
contain a further slide in the currency.
They said the central bank bought between one to 1.5
billion dlrs today, including direct purchases through brokers,
and yesterday it might have bought a small amount of dollars
through the U.S. Central bank in New York.
Most dealers said they doubted the U.S. Federal Reserve
would intervene on its own account to support the dollar, but
some said this might occur if the dollar fell much below 148
yen.
"If the dollar drops to that low level, it could reduce the
flow of foreign capital into U.S. Securities, which the
Americans don't want," said Haruya Uehara, chief money market
manager of Mitsubishi Trust and Banking Corp.
He said the dollar may return to around 152 yen next month
when corporations reduce their dollar sales after they close
their books for the 1986/87 business year ending on March 31.
But dealers said the longer-term outlook for the dollar
remained bearish. This was due to the lacklustre performance of
the U.S. Economy, the continuing U.S. Trade deficit and
Japanese delays in announcing an economic stimulation package.
"The Americans are getting frustrated at Japan's inertia in
stimulating its economy," said Hirozumi Tanaka, assistant
general manager of Dai-Ichi Kangyo Bank Ltd's international
treasury division.
In the Paris currency accord Japan promised a package of
economic measures, after the fiscal 1987 budget was passed, to
boost domestic demand, increase imports, and thus reduce its
trade surplus. The package was expected in April, but debate on
the budget has been delayed by an opposition boycott of
parliamentary business over the proposed introduction of a
sales tax.
In the circumstances the government had only a slim chance
of producing a meaningful economic package in the near future,
Dai-Ichi Kangyo's Tanaka said.
Dealers said if steps are not taken to stimulate the
Japanese economy protectionist sentiment in the U.S. Congress
would grow and put more downward pressure on the dollar.
| Financial Reports |
Prudential Corp 1986 pretax profit 178.1 mln stg vs 110.1 mln
|
Prudential Corp 1986 pretax profit 178.1 mln stg vs 110.1 mln
| Commodities and Trade |
NIPPON LIFE, SHEARSON TIE-UP SEEN SETTING TREND
| Nippon Life Insurance Co's 538 mln dlr
purchase of a 13 pct stake in Shearson Lehman Brothers Inc
brokerage unit is a shrewd move that other Japanese insurers
are likely to follow, securities analysts said.
The investment in one of Wall Street's top brokerage houses
is likely to pay off in dollars and international market
position, they said. "It's part of a trend towards growing
capital participation by Japanese insurance firms in foreign
financial institutions," said Simon Smithson, an analyst with
Kleinwort Benson International Inc in Tokyo.
The investment in Shearson Lehman, a growing firm described
by some analysts as the top U.S. Retail brokerage, will give
Nippon Life a ringside seat and possibly lower commissions on
Wall Street, where it invests an increasing percentage of its
assets of 90.2 billion dlrs, they said.
Nippon Life staff will also acquire expertise in business
sectors which have not yet opened up in Japan, they added.
The agreement between the two companies calls for a 50-50
joint venture in London focussing on investment advisory asset
management, market research, and consulting on financing.
Nippon Life is Japan's largest insurance company and the
world's biggest institutional investor, analysts said.
The Japanese finance ministry is expected to approve the
deal in April, making Nippon Life the first Japanese life
insurance firm to take a stake in a U.S. Financial firm.
The limit on foreign assets as a proportion of Japanese
insurers' assets was increased to 25 pct from 10 pct last year.
Since then, they have stepped up purchases of foreign stocks
and sought to deepen their understandng of foreign markets and
instruments.
Last year, a Sumitomo Life Insurance Co official was
appointed to E.F. Hutton Group Inc unit E.F. Hutton and Co's
board and Sumitomo Bank Ltd spent 500 mln dlrs to become a
limited partner in Goldman, Sachs and Co.
Smithson said Japanese banks started buying smaller and
problem-plagued banks in 1984. "But now Japanese are going for
blue-chip organisations," he said.
"It's a reflection of what has happened in manufacturing
industries," said Brian Waterhouse at James Capel and Co. "With a
historically high yen, and historically low interest rates,
there's an increasing disincentive to invest in Japan."
Competition in fund management has grown along with greater
Japanese savings. The typical salaried employee has 7.33 mln
yen in savings, reflecting an annual average savings rate of 17
to 18 pct, he said.
To stay competitive, fund managers must invest overseas and
gain experience with financial instruments which are likely to
spread to Japan with further deregulation. "The high regulatory
environment has delayed (life insurance firms')
diversification. Now there's a growing number of new products
in an environment of increasing competition for performance on
fund management," Smithson said.
| Financial Reports |
CANADA OUTLINES GATT AGRICULTURAL REFORM PLAN
| Canadian Trade Minister Pat
Carney said that agricultural policies should not hurt world
international trade and should therefore become more price
responsive over time.
She told delegates at the informal meeting of trade
ministers that this was one of five principles Canada wanted
adopted in reforming agriculture in the General Agreement on
Tariffs and Trade (GATT). Secondly, support for agriculture
should avoid production incentives, and thirdly, countries
should freeze and seek to reduce government aid measures that
distorted world prices, Carney said.
Carney said the fourth principle was that countries should
not introduce new import barriers not mandated by existing
legislation and the fifth was that these basic principles must
be implemented collectively.
Carney later told Reuters the Canadian guidelines are
basically compatible with the seven point Australian proposals
announced in Davos, Switzerland, in January.
European trade sources said the conference welcomed the
Canadian initiative but some delegates, and not only the
European Community, voiced reservations about some of the
principles.
Carney said there was a lot of political will among the
ministers here to complete the Uruguay Round of GATT in under
four years and that there is also a realisation that it has to
be done in a balanced way.
"The consensus view was to proceed as fast as we can on a
broad front and see what areas emerge where we can get early
conclusion," she said.
However, the meeting did not identify what those areas are,
Carney said. She said Canada/U.S. Bilateral trade
negotiations, which must be concluded at least in draft form by
October, are progressing well.
| Financial Reports |
PRUDENTIAL CORP PLC <PRUL.L> 1986 YEAR
| Shr 34.5p vs 24.5p adjusted
Div 19p making 29p vs 24.8p adjusted
Pretax profit 178.1 mln vs 110.1 mln
Tax and minorities 60.5 mln vs 32.7 mln
Profit attributable 117.6 mln vs 77.4 mln
Pretax profit includes -
Long term business 145.5 mln vs 137.7 mln
General insurance business -
Underwriting loss 99.9 mln vs 131.6 mln
Investment income 94.8 mln vs 78.2 mln
Trading loss 5.1 mln vs 53.4 mln
Investment management, U.K. 6.4 mln vs 1.6 mln
Shareholders' other income 31.3 mln vs 24.2 mln
Pretax profit by division includes -
U.K. Individual division 97.1 mln vs 89.5 mln
U.K. Group pensions 10.5 mln vs 10.6 mln
International 13.4 mln vs 12.4 mln
Mercantile and General 24.5 mln vs 25.2 mln
Prudential Portfolio managers 6.4 mln vs 1.6 mln
Prudential Property Services 2.1 mln loss vs nil
| Financial Reports |
JAPAN UNEMPLOYMNENT RISES TO RECORD IN JANUARY
| Japan's seasonally adjusted unemployment
rate rose to a record 3.0 pct in January, the worst since the
Government started compiling unemployment statistics under its
current system in 1953, up from the previous record 2.9 pct in
December, the government's Management and Coordination Agency
said.
Unemployment was up from 2.8 pct a year earlier.
Unadjusted January unemployment totalled 1.82 mln people,
up from 1.61 mln in December and 1.65 mln a year earlier.
Male unemployment in January remained at 2.9 pct, equal to
the second-worst level set last December. Record male
unemployement of 3.1 pct was set in July 1986.
Female unemployment in January remained at 3.0 pct, equal
to the record level marked in April, August, September and
December last year.
January's record 3.0 pct unemployment rate mainly stemmed
from loss of jobs in manufacturing industries, particularly in
export-related firms, due to the yen's continuing appreciation
against the dollar, officials said.
Employment in manufacturing industries fell 380,000 from a
year earlier to 14.30 mln including 1.83 mln employed in the
textile industry, down 190,000 from a year earlier, and 1.06
mln in transport industries such as carmakers and shipbuilders,
down 170,000.
| Corporate News |
MAJOR NATIONS MUST ACT ON CURRENCIES - MIYAZAWA
| Finance Minister Kiichi Miyazawa said the
time has come for major industrialised nations to take action
on exchange rates in line with their agreement last month in
Paris.
In Paris, Britain, Canada, France, Japan, the U.S. And West
Germany agreed to coooperate to hold currency rates around
their then current levels.
Miyazawa would not say what specific measures major nations
would take, but told reporters the measures had been discussed
in Paris. The dollar fell to a record low against the yen this
morning, piercing the 150 yen barrier.
Asked if major nations were now negotiating on what
measures to take, Miyazawa said they were not as measures had
already been agreed in Paris.
| Financial Reports |
JAPAN ECONOMY MAY START BOTTOMING OUT SOON -AGENCY
| Japan's economy remains sluggish but is
beginning to show signs it may bottom out soon, the Economic
Planning Agency said in a monthly report submitted to Cabinet
ministers.
But a bottoming out of the economy depends largely on the
yen's exchange rate trend in the immediate future, Agency
officials said.
The officials told reporters industrial production, down
0.5 pct in January from December, is likely to turn positive in
February and to rise thereafter, raising hopes for a brighter
economic outlook.
The Agency predicted industrial production will grow 2.5
pct in the current January/March quarter after falling 0.7 pct
in the previous quarter.
A rise of this size would be the largest since the fourth
quarter of 1984 when industrial output rose 2.7 pct, the
officials said.
They also said an expected upturn in exports would be a
mixed blessing as it would contribute to economic growth but
would increase the chance of trade friction.
Japanese exports contracted five pct in February from
January but are likely to grow from March if the yen stabilizes
around current levels, the officials said.
They predicted exports will increase by 2.3 pct in the
January/March quarter from the October/December quarter.
"But the problem is imports are not expanding," said one
official. Imports fell by 9.4 pct in February from January.
| Financial Reports |
KUWAIT SAYS OPEC 2.4 MLN BPD BELOW CEILING
| Kuwaiti oil minister Sheikh Ali
al-Khalifa al-Sabah said OPEC was producing well below its oil
output ceiling and this would help prices move higher,
according to a Kuwaiti newspaper interview.
The al-Rai al-Aam newspaper quoted him as saying OPEC was
pumping 2.4 mln barrels per day (bpd) less than its 15.8 mln
bpd ceiling, while consumers were drawing down their petroleum
stocks at a rate of 4.5 mln bpd.
As long as OPEC maintains its output curbs, demand for its
oil will rise in April and May, Sheikh Ali said, adding that
Kuwait was strongly committed to its OPEC quota.
| Other |
Bundesbank allocates 6.5 billion marks in 28-day repurchase pact at 3.80 pct
|
Bundesbank allocates 6.5 billion marks in 28-day repurchase pact at 3.80 pct
| Financial Reports |
MIYAZAWA SAYS U.S. LIKELY TO INTERVENE
| Finance Minister Kiichi Miyazawa told
Parliament's Lower House Finance Committee that the U.S. Is
expected to intervene in the foreign exchange market to
stabilise exchange rates, political sources said.
Asked if the U.S. Federal Reserve Board agreed in Paris
last month to intervene to stabilise exchange rates, Miyazawa
said yes, the sources said.
Miyazawa was also quoted as saying that he is sceptical
about the effectiveness of currency reference ranges even if
major nations agree on such an idea as it is extremely
difficult to set such ranges.
| Corporate News |
U.S. OFFERS TO ESCORT KUWAITI TANKERS IN GULF
| The U.S. Has offered warships to
escort Kuwaiti tankers in the Gulf past Iranian anti-ship
missile batteries, Defence Department officials said.
The officials told Reuters yesterday the offer was made
last week by Navy Admiral William Crowe, chairman of the
Pentagon Joint Chiefs of Staff, during a Middle East visit.
Reagan administration officials said later that Washington
did not seek military confrontation with Tehran, but would not
let Iran use Chinese-made "Silkworm" anti-ship missiles, capable
of covering the narrow entrance to the Gulf, to choke oil
shipments to the West.
Defence officials said Kuwait had asked if protection for
up to a dozen vessels, most of them tankers, could be provided
by three U.S. Navy destroyers and two frigates now in the
southern Gulf and the Gulf of Oman.
In addition to a half dozen ships in the U.S. Navy's small
Mideast Task Force near the Straits of Hormuz, the Pentagon has
moved 18 warships, including the aircraft carrier Kitty Hawk,
into the northern Arabian Sea in the past month.
White House and defence officials said that massing the
fleet was routine and had nothing to do with the Iran-Iraq war
or Iran's stationing of missiles near the mouth of the Gulf.
The State Department said on Friday that Iran has been told
about U.S. Concern over the threat to oil shipments in the
Gulf. The communication was sent through Switzerland, which
represents U.S. Interests in Iran.
Iran denied as baseless reports that it intended to
threaten shipping in the Gulf and said any U.S. Interference in
the region would meet a strong response, Tehran Radio said on
Sunday.
Several hundred vessels have been confirmed hit in the Gulf
by Iran and Iraq since early 1984 in the so-called tanker war,
an offshoot of their 6-1/2-year-old ground conflict.
| Financial Reports |
YEUTTER SAYS U.S.-JAPAN TRADE DIFFICULTIES REMAIN
| U.S. Trade Representative
Clayton Yeutter said he was unsure whether some of the trade
issues straining U.S.-Japanese relations would be resolved
before the two countries open trade talks in late April.
"We are having high level discussions on them (the issues)
within the United States...The relationship on some of those is
very strained between us (Japan) at the moment and we need to
relieve those strains at the earliest possible date," he said.
"I am not sure we can wait until late April," he added.
Yeutter is in New Zealand for a two-day informal meeting of
trade ministers who are reviewing the Uruguay round of the
General Agreement on Trade and Tariffs (GATT).
He said he will meet the Japanese delegation over the next
few days but declined to discuss methods of relieving the
strain between the two countries.
Yeutter said earlier the three most contentious trade
issues were semiconductors, Japanese government unwillingness
to allow public entities to buy U.S. Super-computers and the
barring of U.S. Firms from the eight billion U.S. Dlr Kansai
airport project near Osaka.
The Japanese delegation to the GATT talks said in a
statement yesterday they are making major efforts to dismantle
trade barriers in their country.
"I am convinced that they are attempting to move their
policies in the right direction. The question is how far and
how fast," Yeutter said.
| Corporate News |
BUNDESBANK ALLOCATES 6.5 BILLION MARKS IN TENDER
| The Bundesbank accepted bids for 6.5
billion marks at today's tender for a 28-day securities
repurchase pact at a rate of 3.80 pct, a central bank spokesman
said.
Banks, which bid for a total 8.6 billion marks liquidity,
will be credited with the funds allocated tomorrow and must buy
back securities pledged on April 22.
The allocation was in line with market expectations the
Bundesbank would provide more than the 3.4 billion marks
draining from this week as an earlier facility expires.
Call money fell to 3.60/70 pct ahead of the allocation from
3.75/85 pct yesterday, dealers said.
The excess allocation compensates for public funds leaving
the system which the Bundesbank added last week via
government-owned banks.
However major tax payments by banks on behalf of customers
drew to a close this week, lessening the need for liquidity.
The call money declines surprised some dealers, who
speculated it was because the Bundesbank disbursed further
government funds today. However, most said this had not
occurred.
Banks were well stocked with liquidity, having 47.1 billion
marks in minimum reserves at the Bundesbank on Friday, up from
49.9 billion on Thursday. Average daily reserves over the first
20 days of the month fell to 52.6 billion from 53.1 billion.
For all of March, banks would be required to hold net daily
average reserves of 50.7 billion marks, dealers said.
| Financial Reports |
U.K. MONEY MARKET GIVEN 115 MLN STG ASSISTANCE
| The Bank of England said it had provided
the money market with 115 mln stg assistance in the morning
session. This compares with the Bank's forecast of a 300 mln
stg shortage in the system today.
The central bank bought bills outright in band two at
9-13/16 pct comprising 73 mln stg bank bills and 42 mln stg
local authority bills.
| Financial Reports |
FORD <F> EUROPE EARNINGS UP 71 PCT LAST YEAR
| Ford Europe's net earnings soared by 71
per cent last year to 559 mln dlrs, Kenneth Whipple, chairman
of Ford Europe, said.
Whipple, here to attend the Geneva Auto Show which opens on
Thursday, said that the Ford Motor Co unit had sold a record
1.5 million vehicles in Europe in 1986.
Net earnings were 326 mln dlrs in 1985.
Sales in 1986 represented 11.8 per cent of the European
market share, Whipple said. Ford will invest 1.2 billion
dollars in Europe in 1987, and a total of seven billion over
the next seven years, he added.
| Financial Reports |
FRENCH EMPLOYERS CHIEF SEES HOPE FOR GROWTH
| The 1992 deadline for abolishing economic
barriers within the European Community should help French
economic growth and create jobs, president of the French
employers' federation CNPF Francois Perigot said.
"Having a market at our disposal which is as homogeneous and
accessible as that of Europe is an incredible piece of luck," he
told Le Figaro in an interview.
He said that the majority of French business leaders were
enthusiastic about the abolition of barriers and saw it as an
opportunity rather than a danger for their companies.
"It can permit us to return to a growth rate which is much
better than we could achieve in isolation. We know that we have
to reestablish growth at three pct a year to solve the enormous
problems confronting us -- and I am referring mainly to
unemployment," Perigot added.
Finance Minister Edouard Balladur said yesterday that
French growth would be just two pct this year, the same as last
year and compared with the government's original 2.8 pct
target.
| Financial Reports |
SOVIET SUGAR IMPORTS HIGHER IN OCT/NOV
| Soviet sugar imports in October and
November were significantly higher than in the same period of
the year before, according to figures received by the
International Sugar Organization.
Imports in October totalled 23,803 tonnes, compared with
4,685 tonnes in the same month of 1985, while November imports
were up to 136,029 tonnes from 46,541.
For the first 11 months of 1986, Soviet imports totalled
5.12 mln tonnes, against 4.30 mln in the same period of 1985.
The October 1986 import figure consisted entirely of whites
from Cuba, while the November total was made up of 84,037
tonnes Cuban whites and 51,992 tonnes whites from Thailand. Of
the imports in the January/November period, those from Cuba
were up to 3.81 mln tonnes from 3.65 mln and from Thailand to
292,808 tonnes from 22,800.
Soviet exports also increased in 1986. The January/November
export total of 289,232 compares with 165,859 tonnes in the
first 11 months of 1985. Exports in October 1986 were 20,064,
down from 38,853 a year earlier, while November exports were up
from 32,796 to 50,855 tonnes.
| Financial Reports |
WEST GERMAN 1986 SUGAR OUTPUT RISES
| West German sugar production last year
rose 38,000 tonnes to an estimated 3.17 mln tonnes, the
Agricultural Ministry said.
It said the increase was exclusively due to higher beet
sugar content, which went up to 17.93 pct from 17.3 pct in
1985.
Last year's beet deliveries totalled 20.22 mln tonnes, down
554,000 tonnes from the previous year.
The ministry estimates West Germany's sugar
self-sufficiency during the current agricultural year
(July/June) unchanged at 137 pct.
| Financial Reports |
NORCROS REJECTS 542.2 MLN STG BID FROM WILLIAMS
| Norcros Plc <NCRO.L> the building
products and packaging group said its board had no hesitation
in unanimously rejecting this morning's 542.2 mln stg bid from
<Williams Holdings Plc>, the industrial holding firm.
The company said Williams' 432.7p per share offer was
unsolicited and unwelcome and significantly undervalues
Norcros. By 1228 gmt Norcros shares were quoted at 418p, up
from 397p at yesterday's close. Williams was 15p higher at 765.
The Norcros board's detailed views will be sent to
shareholders when the formal offer document has been issued by
Williams.
| Financial Reports |
NO PROOF OF MORE CHERNOBYL GRAIN DAMAGE-DIPLOMATS
| Western agricultural attaches in Moscow
said they had no evidence to substantiate rumours that last
April's Chernobyl nuclear disaster had a worse effect on Soviet
grain than first reported.
Current Soviet interest in chartering ships to carry grain
from the U.S. Helped prompt the rumours on world markets. But
the diplomats said they had seen no reports in the state press
and heard no comments from officials to substantiate them.
The official media was initially slow in reporting the
accident but, under Kremlin leader Mikhail Gorbachev's campaign
for openness, gradually gave more and more details.
Land around the nuclear plant was contaminated to varying
degrees. Some is now being used to grow industrial crops
instead of grain.
| Other |
IRAN SAID TO TEST FIRE SILKWORM MISSILE IN HORMUZ
| Iran has test-fired its newly acquired
Silkworm anti-shipping missile in the Strait of Hormuz and has
set up at least two land-based launching sites in the area, a
British naval source in the Gulf said.
The source, who declined to be identified, said Iran had
fired the Chinese-made missile at a hulk off its southern Gulf
naval port of Bandar Abbas and scored a hit.
"These missiles pack a fairly big punch," he told Reuters.
"There is no doubt they could be used to target (shipping)
across the Strait of Hormuz."
Tension in the Gulf has risen since U.S. Officials last
week broke the news that Iran had acquired the Silkworm
missiles.
The U.S. Has said it will not allow Iran to use the
missiles to choke off oil shipments and has offered its
warships to escort Kuwaiti tankers past the missile batteries.
But Tehran denied last Sunday it intended to threaten Gulf
shipping and warned the U.S. Any interference in the region
would meet a strong response.
The British naval source said the Silkworms were in place
at at least two sites around the Strait of Hormuz, but would
not give the exact location.
| Financial Reports |
MERRILL LYNCH <MER> IN TALKS ON CANADA PURCHASES
| Merrill Lynch and Co Inc is holding
talks on acquiring Canadian brokerage firms, a company
spokesman told Reuters.
He said one of the firms with which Merrill Lynch is
negotiating is <Burns Fry Corp> of Toronto, which has already
received an offer from Security Pacific Corp's <SPC> 83 pct
owned <Hoare Govett Ltd> London-based brokerage unit. The
Hoare Govett bid is valued at about 210.4 mln U.S. dlrs.
The spokesman said the talks are the result of a change in
Ontario securities laws that takes effect June 30.
Currently, companies outside the Canadian securities
industry are prohibited from owning more than 10 pct of a
Canadian broker. On June 30, 1987, foreign brokers will be
allowed to own up to 50 pct of Canadian brokers, and the
percentage will rise to 100 pct a year later.
| Corporate News |
MARK IV <IV> STARTS BID FOR CONRAC <CAX>
| Mark IV Industries Inc said it has
started the 25 dlr per share tender offer for all shares of
Conrac Corp that it announced yesterday afternoon.
In a newspaper advertisement, the company said the offer
and withdrawal rights expire April 20 unless extended. The
offer is not conditioned on receipt of any minimum number of
shares but is conditioned on the arrangement of financing.
Mark IV already owns about 9.9 pct of Conrac's 6.8 mln
shares outstanding.
| Financial Reports |
ECOLAB <ECL> STARTS BID FOR CHEMLAWN <CHEM>
| Ecolab Inc said it has started its
previously-announced tender offer for all shares of ChemLawn
Corp at 36.50 dlrs each.
In a newspaper advertisement, the company said the offer
and withdrawal rights expire April 20 unless extended. The
ChemLawn board has approved the tender and a merger at the same
price that is to follow.
Ecolab said the offer is conditioned on receipt of at least
5,325,000 shares. ChemLawn now has about 10.0 mln shares
outstanding.
Ecolab said ChemLawn has granted it a conditional option to
buy all authorized but unissued and unreseved ChemLawn shares
at 36.50 dlrs each. The option is exercisable in the event
that another party were to acquire 20 pct or more of ChemLawn
by means other than a tender offer for all shares at a higher
price than Ecolab is offering.
The company said if the merger agreement is terminated
under certain circumstasnces, it will be entitled to receive 20
mln dlrs in damages from ChemLawn.
Ecolab said officers and directors of ChemLawn have granted
it options to acquire an aggregate of 2,535,435 ChemLawn shares
or about 24.8 pct for the tender price, again unless a higher
tender were to be made by another party.
Waste Management Inc <WMX> had originally made a hostile
tender offer of 27 dlrs per share for ChemLawn which ChemLawn
rejected as inadequate. On Friday, Waste Management said it
would raise its bid to 35 dlrs per share.
| Other |
TAIWAN PROPOSES FURTHER TARIFF CUTS
| Taiwan said it plans another round of
tariff cuts, possibly within a month, to try to narrow its
trade surplus with the U.S.
Vice Finance Minister Ronald Ho said a high-level economic
committee recommended tariff cuts on 66 products requested by
Washington, including apples, chocolates and fruit juice.
Ho said the cuts may come into effect by the end of next
month.
Taiwan's trade surplus with the U.S. Widened in the first
two months of this year to 2.35 billion dlrs from 1.87 billion
dlrs in the same period last year.
| Corporate News |
PAKISTAN CONSUMER PRICE INDEX FALLS IN JANUARY
| Pakistan's consumer price index (base
1975/76) fell to 231.93 in January 1987 from 233.26 in December
1986, and compared with 223.66 a year ago, the federal Bureau
of Statistics said.
The wholesale price index (same base) rose to 229.83 in
January from 229.06 in December and compared with 217.97 in
January 1986.
| Corporate News |
IRAN SAID TO TEST FIRE SILKWORM MISSILE IN HORMUZ
| Iran has test-fired its newly acquired
Silkworm anti-shipping missile in the Strait of Hormuz and has
set up at least two land-based launching sites in the area, a
British naval source in the Gulf said.
The source, who declined to be identified, said Iran had
fired the Chinese-made missile at a hulk off its southern Gulf
naval port of Bandar Abbas and scored a hit.
"These missiles pack a fairly big punch," he told Reuters.
"There is no doubt they could be used to target (shipping)
across the Strait of Hormuz."
| Other |
TAIWAN PROPOSES FURTHER TARIFF CUTS
| Taiwan said it plans another round of
tariff cuts, possibly within a month, to try to narrow its
trade surplus with the U.S.
Vice Finance Minister Ronald Ho said a high-level economic
committee recommended tariff cuts on 66 products requested by
Washington, including apples, chocolates and fruit juice.
Ho said the cuts may come into effect by the end of next
month.
Taiwan's trade surplus with the U.S. Widened in the first
two months of this year to 2.35 billion dlrs from 1.87 billion
dlrs in the same period last year.
| Financial Reports |
BDM INTERNATIONAL <BDM> INCREASES QTRLY DIVS
| Annual div Class A 14 cts vs 12 cts prior
Annual div Class B 12.1 cts vs 10.4 cts prior
Payable April one
Record March 20
NOTE: full name is BDM International Inc.
| Financial Reports |
SOUTH KOREA'S LEADING INDICATORS FALL IN DECEMBER
| South Korea's index of leading indicators
fell 0.1 pct to 164.1 (base 1980) in December after a 0.1 pct
rise in November, representing a 16.1 pct year-on-year gain
from December 1985, Economic Planning Board provisional figures
show.
The index is based on 10 indicators which include export
values, letters of credit received, warehouse stocks, M-1 and
M-3 money supply figures and the composite stock exchange
index.
| Financial Reports |
U.S. FEB DURABLE GOODS ORDERS ROSE 6.0 PCT, NONDEFENSE DURABLES ROSE 3.8 PCT
|
U.S. FEB DURABLE GOODS ORDERS ROSE 6.0 PCT, NONDEFENSE DURABLES ROSE 3.8 PCT
| Financial Reports |
STANDARD CHARTERED PLC <STCH.L> 1986 YEAR
| Shr 97.0p vs 85.3p
Div 22.5p vs 20.0p making 35.0p vs 30.5p
Pretax profit 253.9 mln stg vs 267.9 mln
Tax 96.3 mln vs 125.6 mln
Operating income 1.15 billion vs 998.8 mln
Operating expenses 759.3 mln vs 692.7 mln
Trading profit before charge for bad and doubtful debts
394.4 mln stg vs 306.1 mln
Charge for bad and doubtful debts 184.2 mln vs 100.7 mln
Share of profits of associates 43.7 mln vs 62.5 mln
Minority interests 6.6 mln debit vs 9.6 mln debit
Extraordinary items 8.7 mln debit vs 15.7 mln credit
Operating income includes -
Interest income 2.49 billion vs 2.33 billion
Interest expenses 1.77 billion vs 1.64 billion
Other operating income 428.8 mln vs 313.2 mln
Operating expenses include -
Staff 405.9 mln vs 376.0 mln
Premises and equipment 197.0 mln vs 155.2 mln
Others 156.4 mln vs 161.5 mln
Pretax profit includes - North America 65.8 mln vs 49.6
mln
Asia Pacific 0.9 mln vs 31.8 mln
Middle East and south Asia 17.7 mln vs 2.3 mln
Tropical Africa 47.5 mln vs 44.7 mln
U.K. 107.6 mln vs 135.7 mln
South Africa 36.8 mln vs 35.6 mln
| Financial Reports |
KDI <KDI> TO BUY TRIANGLE MICROWAVE <TRMW>
| KDI Corp said it has agreed
in principle to acquire Triangle Microwave Inc for 6.50 dlrs
plus a contingent payment for each Triangle share.
It said holders of the contingent payment units will be
entitled to receive annual payments to the extent that the
predepreciation gross profits of Triangle Microwave in each of
the years 1987 through 1991 exceed threshholds ranging from
eight mln dlrs in 1987 to 14 mln dlrs in 1991.
The company said holders of Triangle Microwave options and
warrants will be entitled to receive the difference between
6.50 dlrs and their exercise price, plus contingent payments.
KDI said completion of the transaction is subject to
governmental approvals and the approval of Triangle Microwave
shareholders, and the transaction is valued at over 35 mln
dlrs.
It said shareholders of Triangle Microwave controlling
about 30 pct of the company's stock have agreed to vote in
favor of the deal and to give KDI an option to buy their shares
under certain components.
Triangle Microwave makes microwave components. KDI, a
diversified company, produces electronic components, technical
products and swimming pool equipment.
| Corporate News |
STORM BRINGS HEAVY SNOWS TO U.S. PLAINS
| The National Weather Service said a
powerful winter storm centered over north central Oklahoma was
spreading snow from western and central Kansas across much of
Nebraska to southern and eastern South Dakota.
Rain was reported across parts of Minnesota, Iowa, eastern
Kansas, Missouri and eastern Oklahoma, with showers and a few
thundershowers extending from Arkansas through the lower
Mississippi Valley to Alabama and northwest Florida.
Strong winds of 20 to 35 mph with some stronger gusts were
reported across much of the Plains, causing considerable
blowingand drifting snow. A blizzard warning continued this
morning across most of western Kansas. A winter storm warning
was issued this morning over central and northeast Nebraska.
Weather advisories were posted for this morning over
central Kansas and central and southeast sections of South
Dakota where two to five inches of snow could accumulate.
Locally heavy rains accompanied the storm over portions of
the central Plains. Flash flood watches were issued for this
morning across the eastern half of Kansas.
A flood warning continues today for eastern Nebraska.
Widespread lowland and small stream flooding is expected to
continue over most of eastern Nebraska through Wednesday.
Due to cold, damp and windy conditions, livestock
advisories were posted this morning across central and
southeast portions of South Dakota.
As the storm moves north across the central Plains, winter
storm watches were issued over south central South Dakota, late
tonight and Wednesday over west central Minnesota.
Elsewhere, a travelers advisory remains in effect this
morning over northeast New Mexico and the Oklahoma and Tecas
Panhandle for blowing snow and slick roadways and across the
mountains and deserts of southern California for strong gusty
winds of 25 to 40 mph. Gale warnings were issued for today
along the central California Coast.
Mostly clear skies extended from the Great Lakes and Ohio
Valley through the central Appalachians to the central Atlantic
Coast and New England.
| Financial Reports |
U.S. FEB DURABLE GOODS ROSE 6.0 PCT
| New orders for durable goods
received by U.S. manufacturers rose 5.7 billion dlrs, or 6.0
pct, in February to 101.2 billion dlrs, the Commerce Department
said.
Excluding defense, orders rose 3.8 pct, compared with a
revised January decline of 7.7 pct.
In January, durable goods fell a revised 9.9 pct instead of
the previously reported 7.5 pct. Durables excluding defense
were reported originally as having fallen 9.9 pct in January.
The Commerce Department on Monday revised orders statistics
for 1982 to 1986 to reflect more current inventory valuation
methods, and the February orders statistics are consistent with
the revisions, officials said.
The February order increase was led by transportation
equipment, up 11.1 pct after an 18.0 pct decline in January.
Orders for defense capital goods rose 48.9 pct to 6.9
billion dlrs, following a 38.8 pct decline in January.
Non-defense capital goods orders fell 1.6 pct in February
to 26.3 billion dlrs after falling 8.7 pct in January, the
department said.
Electrical machinery orders rose in February by 8.2 pct to
17.2 billion dlrs after falling 15.4 pct in January.
Primary metals orders were up 13.9 pct to 8.4 billion dlrs
after a 20 pct decline in January, the department said.
New orders for non-electrical machinery were up in February
by 3.9 pct to 16.6 billion dlrs after a three pct orders
decline in January.
| Other |
WOOLWORTH U.K. SAYS GROWTH PROSPECTS EXCITING
| Woolworth Holdings Plc <WLUK.L> which
earlier announced a 1986 pre-tax profits rise of 42 pct over
1985, said its prospects for growth were very exciting.
The profit figure of 115.3 mln stg exceeded a forecast by
some 10 pct made during the hostile bid by Dixons Group Plc
<DXNS.L> last year and the company said the results were a
major step towards the aim of making Woolworth the most
profitable retailing group in the U.K.
It aimed to produce growth from all its businesses and look
for opportunities to acquire specialist retail businesses.
Earlier this month the group said that tentative merger
talks with the high street pharmacist <Underwoods Plc> had been
called off and recently announced a 19.2 mln stg recommended
offer for <Charlie Browns Car Part Centres Plc>.
The B and Q Do it Yourself centres raised sales by 31 pct
and retail profit by 37 pct, with its pretax contribution of
45.5 mln making it the largest single component.
The company said that the improvement had been achieved by
substantial organic growth in existing stores as well as by the
opening of a further 29 new outlets and enhanced margins.
In other sectors, the Comet electrical chain raised retail
profits by 46 pct to 17.4 mln stg, while the Woolworth chain
reported a 120 pct improvement to 38.7 mln.
The company said its property operations would increase
substantially following the start of a joint venture deal with
developers <Rosehaugh Plc>.
The defence costs against the 1.9 billion stg bid from
Dixons resulted in a 16.0 mln stg extraordinary charge.
The results were 10 mln stg up on most analysts forecasts.
As a result, the group's shares rose strongly, peaking at 865p
from last night's 842p before easing to 860p at 1155 GMT.
| Financial Reports |
NATIONAL SEMICONDUCTOR CORP <NSM> 3RD QTR LOSS
| March Eight
Shr loss 31 cts vs loss 47 cts
Net loss 25.6 mln vs loss 39.4 mln
Sales 398.1 mln vs 322.3 mln
Avg shrs 91.6 mln vs 90.0 mln
Nine mths
Shr loss 44 cts vs loss one dlr
Net loss 32.7 mln vs loss 84.4 mln
Sales 1.36 billion vs 1.08 billion
Avg shrs 91.2 mln vs 89.6 mln
NOTE: Twelve and 40-week periods.
Prior year results restated for change in method of
recognizing revenue on distributor shipments. Quarter net loss
originally reported as 32.0 mln dlrs or 38 cts shr on sales of
328.9 mln dlrs and nine mth loss as 120.3 mln dlrs or 1.40 dlrs
shr on sales of 1.11 billion dlrs.
Prior nine mths net includes 51.2 mln dlr gain from
cumulative effect of accounting change.
Prior year net includes extraordinary credits of 1,100,000
dlrs in quarter and 3,300,000 dlrs in nine mths.
Current year net both periods includes 15.0 mln dlr pretax
charge from previously-announced restructuring of Datachecker
Systems and Semiconductor Group manufacturing operations.
| Financial Reports |
COMDATA NETWORK AGREES TO HIGHER OFFER FROM WELSH CARSON ANDERSON
|
COMDATA NETWORK AGREES TO HIGHER OFFER FROM WELSH CARSON ANDERSON
| Financial Reports |
SUMITA SAYS BANK WILL INTERVENE IF NECESSARY
| Bank of Japan Governor Satoshi Sumita
said in a statement the central bank will intervene in foreign
exchange markets to stabilise exchange rates if necessary in
close cooperation with other major industrial nations.
Sumita said the Bank will take adequate measures including
market intervention, if necessary, in line with the February 22
Paris agreement by six major industrial nations.
Canada, Britain, France, Japan, the U.S. And West Germany
agreed to cooperate in stabilising exchange rates around
current levels. Sumita's statement was issued after the dollar
slipped below 150 yen to hit a record low of 148.40.
"It is inevitable that exchange rates fluctuate under the
system of floating rates," Sumita said.
The fact the dollar plunged below 150 yen does not mean
anything significant under the floating system, he said.
The six nations agreed in Paris exchange rates prevailing
then were broadly consistent with underlying economic
fundamentals and further substantial rate shifts could damage
growth and adjustment prospects in their countries, the Paris
statement said.
| Other |
COMDATA <CDN> ACCEPTS NEW WELSH CARSON BID
| Comdata Network Inc said it
has entered into a definitive agreement to merge into a company
formed by <Welsh, Carson, Anderson and Stowe IV> for either
16.50 dlrs in cash or 10.00 dlrs in cash and a unit of
securities per Comdata share.
The company said each unit of securities would consist of
1.25 common shares in the new company and three dlrs principal
amount of the new company's 11 pct subordinated debentures due
1997.
It said the 16.50 dlr cash alternative is an improvement
over the 15.00 dlr per share price contemplated under an
agreement in principle with Welsh Carson announced on March
Five.
Comdata said the cash and securities alternaitcve is
subject to Welsh Carson-affiliated investors owning at least 60
pct of the stock of the new company.
The company said investment bankers <Drexel Burnham Lambert
Inc> and Alex. Brown and Sons Inc <ABSB> found the proposal to
be fair from a financial point of view.
It said the transaction is subject to approval by its
shareholders and to Welsh Carson obtaining up to 230 mln dlrs
in debt financing. Comdata said it may terminate the agreement
if financing is not arranged by April Three.
On Thursday, First Financial Management Corp <FFMC> offered
to acquire Comdata for 18.00 dlrs per share in stock and cash,
subject to approval by the Comdata board.
Under the First Financial proposal, Comdata holders would
receive no more than four dlrs per share in cash and could
receive all stock.
Comdata had originally planned a recapitalization under
which it would have repurchased up to six mln common shares at
14.50 dlrs each.
| Commodities and Trade |
IRELAND PUT ON COLORADO BEETLE ALERT
| The Irish Agriculture Department issued
a Colorado beetle alert today after three of the beetles were
found in a box of parsley imported from France.
Officials said a colony of the black and amber coloured
beetles can destroy a potato field in a day. The females lay up
to 2,500 eggs each.
Some of the 80 boxes in the parsley consignment had already
been distributed to markets and the department called on all
shopkeepers and the catering trade to be on the alert.
| Corporate News |
DOLLAR DROP SEEN AS TEST OF PARIS AGREEMENT
| The sharp drop in the value of the
dollar against the yen and the mark is the first serious test
of last month's Group of Five (G-5) plus Canada agreement to
stabilise currencies, dealers and bank economists said.
"The dollar will be pushed down until there is coordinated
central bank intervention," one dealer for a German bank said,
echoing widepread sentiment in the market.
But opinion was divided on whether the united front forged
in Paris still exists. Some dealers said there were growing
signs the United States wanted the dollar to fall further.
Despite repeated Bank of Japan intervention, the dollar
plunged to a post-war low in Tokyo today. It was quoted as low
as 148.40 yen in the Far East and dealers here said they
expected the U.S. Currency to decline further.
"The dollar is now firmly within a broad 140 to 150 yen
range," Chase Bank AG's senior dealer Eckhart Hager said.
Others said there were technical reasons for the sharp
dollar drop. "Window-dressing" operations by some Japanese
companies who were selling dollars and buying yen before the
end of the Japanese fiscal year on March 31 were undermining
the U.S. Currency.
Dealers said main reason for the sell-off was not
technical. U.S. Treasury Secretary James Baker's comment the
Paris accord did not have fixed dollar targets was seen as a
renewed attempt by the U.S. Administration to talk the dollar
down.
"Suddenly, support levels which had existed for fear of
central bank intervention disappeared," one dealer said.
The Bank of Japan was believed to have bought some 1.5
billion dlrs, and this with comments by Japanese officials
indicated Tokyo was unhappy about the plunge, dealers said.
Bank of Japan governor Satoshi Sumita threatened central bank
intervention if necessary.
Japanese Finance Minister Kiichi Miyazawa said today the
time had come for the six nations who agreed in Paris last
month to stabilise currencies - Japan, Britain, Canada, France,
the U.S. And West Germany - to take action in line with the
pact.
But the Bundesbank and other European central banks were
not detected in the open market during the European morning.
Opinion here was divided on when the Bundesbank would act.
While some said the West German central bank would support
the dollar once it fell below 1.80 marks, others said the
Bundesbank would only intervene after a fall below 1.75 marks
or if the decline accelerated.
The Bundesbank last intervened on January 27, when the
dollar threatened to fall below 1.81 marks.
"The Japanese seem to be on their own at the moment," one
dealer said. Others said cooperation between central banks and
governments was easier said than done.
Some said Baker's remarks and U.S. Trade Representative
Clayton Yeutter's warning that the U.S. And Japan were on the
verge of a serious trade conflict showed there was a rift.
"It's hard to tell whether the G-6 agreement still stands," a
dealer said. Another added, "If the Americans do not get what
they want, they will push the dollar down, regardless of G-6."
Citibank AG also cast doubt on the chances of success for
the Paris agreement in its latest investment letter.
"It is hard to see that Japan and Germany are willing or
able to loosen fiscal policy sufficiently to offset the
necessary U.S. Fiscal contraction," Citibank said.
It added, "Markets should therefore be aware that 1.80 marks
is not the lower limit for the dollar -- a rate of 1.70 marks
or even less is expected this year."
And London Broker Hoare Govett said in its March 1987
economic report, "We are looking for a further, more gradual,
fall, possibly to 1.60 marks by the end of the year."
But opinion about whether the Paris accord was still in
force was not universal. Some dealers said not too much should
be read into Baker's and Yeutter's comments.
"There is no reason to believe the Paris pact has broken
down," a senior dealer said.
| Financial Reports |
TRANSNATIONAL INDUSTRIES <TRSL> SEES LOSS
| Transnational Industries Inc said due
to continuing manufacturing difficulties at its AlloyTek Inc
jet engine component subsidiary, it expects to report a net
loss of about 300,000 dlrs or 12 cts per share for the fourth
quarter ended January 31.
It said revenues for the period were about 11.9 mln dlrs,
about even with those of a year earlier.
For the full fiscal year, the company said it earned about
775,000 dlrs or 34 cts per share, down from 1,402,000 dlrs or
76 cts per share a year before.
The company said an unexpectedly large volume of customer
inquiries at its Spitz Inc simulation products subsidiary has
caused higher than expected business development outlays.
The company said it expects significant contract awards to
Spitz later this year.
It said it has started implementing a plan to progressively
reduce manufacturing costs at AlloyTek over the next several
quarters. The company said it may move AlloyTek's plant from
Grandville, Mich., to a lower labor cost area.
The company said it discovered the extent of the AlloyTek
problems during a year-end review of subcontracts and related
work in progress for production of jet engine components for
General Electric Co <GE>.
It said it will release annual results around April 15.
| Financial Reports |
GREAT WESTERN <GWF> SELLS INSURANCE UNIT
| Great Western Financial
Corp said it agreed to sell its John Alden Life Insurance Co
and its affiliated operations for 280 mln dlrs to a
newly-formed company onwed by the John Alden Management Group.
General Electric Credit Corp delivered a commitment letter
arranged by the GECC Capital Markets Group Inc for the
financing.
Great Western said the pre-tax gain on the sale will be
approximately 65 mln dlrs, and after tax gain will be
approximately 15 mln.
| Corporate News |
JAPANESE ECONOMIST SEES STABLE YEN/DOLLAR RATES
| The yen should stabilize at around
152 to 153 to the U.S. Dollar for about a year, the Bank of
Tokyo's economic adviser Koei Narusawa said.
"Both sides are showing clear interest to secure stability
of the currencies. The major target of the Japanese government
is to maintain the yen at above 150, at least for the rest of
the year," he told reporters during a brief visit to Malaysia.
Narusawa said the U.S. Is unlikely to push the yen up
further because this might spark off inflation and depress the
U.S. Economy before the 1988 presidential election.
The yen is trading at around 153.70 to the dollar.
| Financial Reports |
STERIVET <STVTF> SETS THREE-FOR-ONE SHARE SPLIT
| Sterivet Laboratories Ltd said the
board authorized a three-for-one split of its outstanding
common shares, subject shareholder approval at the annual
meeting.
| Corporate News |
SPAIN RAISES CALL MONEY RATES ON HIGHER DEMAND
| The Bank of Spain raised overnight call
money rates by 1/4 to 14 pct on demand for 746 billion pesetas
in today's auction, which a bank spokesman termed "heavy."
Rates stood at 12.1 pct at the start of the year and have
been increased to drain liquidity on rising demands for funds,
the spokesman said.
He said in reply to Reuters inquiries that rates could rise
further if money supply growth rose above this year's eight pct
target for M-4, defined as liquid assets in public hands.
Money supply rose at an annualised rate of 16.7 pct last
month against 8.1 pct in January. Growth was 11.4 pct in 1986.
A leading Spanish broker said the central bank was applying
a more restrictive policy to keep the lid on inflation.
The consumer price index rose 8.3 pct last year.
"Money supply control is the government's chief weapon
against inflation," he said. "The problem is higher rates are
attracting liquidity from abroad."
He said this was why the central bank enacted specific
measures to control the inflow of foreign capital. The Bank of
Spain earlier this month imposed a 19 pct reserve requirement
on new convertible peseta funds held by banks to curb
short-term speculative capital from abroad.
| Corporate News |
CAMPBELL RED LAKE <CRK> SETS QUARTERLY DIVIDEND
| Qtly div 10 cts vs 10 cts prior
Pay May 25
Record April 20
Note: Canadian funds
| Financial Reports |
GATT ROUND MAY STOP GROWING TRADE PROBLEMS: U.S.
| A successful new GATT
(General Agreement on Tariffs and Trade) round is needed to
halt growing bilateral trade problems between major trading
partners, U.S. Trade Representative Clayton Yeutter said.
Yeutter, in New Zealand for informal GATT ministerial
talks, told Reuters bilateral trade disputes are increasing
because the multilateral system is inefficient.
"That is really a strong rationale why we need a new GATT
round," he said. "The very existence of all these bilateral
irritants clearly emphasises the need to develop multilateral
solutions to some of these problems."
The eighth GATT round of negotiations was launched at Punta
del Este in Uruguay in September 1986. Agriculture and services
were included in the negotiations for the first time.
The growing debt burden of Latin American and African
nations will also provide impetus for the GATT round to
succeed, he said. "Clearly those countries need to develop their
export endeavours and they need open markets for that to happen
and that's the basic objective of the new GATT round."
But he said the GATT round is a long term endeavour. It
will not give any short term relief for debt ridden countries,
but it will make a difference in 10 to 15 years.
"It's a worthwhile activity from their standpoint because
these debts are not going to go away in the next year or two,"
he said.
"They ought to be very strongly supported in the GATT round
as a mechanism for relieving their debt burdens or making
possible debt amortisation in the future," he said.
| Financial Reports |
BELGIAN MARCH CONSUMER PRICES RISE
| Belgian consumer prices rose 0.11 pct
in March from February to stand 1.27 pct above the level in
March 1986, the Economic Affairs Ministry said in a statement.
It said the consumer price index, base 1981, rose to 132.83
points from 132.69 in February and 131.17 in March 1985.
Year-on-year inflation stood at 1.00 pct in February and at
1.53 pct in March 1986.
| Financial Reports |
U.K. MONEY MARKET GIVEN FURTHER 104 MLN STG HELP
| The Bank of England said it provided the
money market with assistance of 104 mln stg in the afternoon
session.
This takes the bank's total help so far today to 219 mln
stg and compares with its estimate of a 300 mln stg shortage.
The central bank bought outright 104 mln stg in bank bills
in band two at 9-13/16 pct.
| Corporate News |
OPEC WITHIN OUTPUT CEILING, SUBROTO SAYS
| Opec remains within its agreed output
ceiling of 15.8 mln barrels a day, and had expected current
fluctuations in the spot market of one or two dlrs, Indonesian
Energy Minister Subroto said.
He told reporters after meeting with President Suharto that
present weakness in the spot oil market was the result of
warmer weather in the U.S. And Europe which reduced demand for
oil.
Prices had also been forced down because refineries were
using up old stock, he said.
He denied that Opec was exceeding its agreed production
ceiling. Asked what Opec's output level was now, he replied:
"Below 15.8 (mln barrels per day)." He did not elaborate.
He said there appeared to have been some attempts to
manipulate the market, but if all Opec members stick by the
cartel's December pricing agreement it would get through
present price difficulties.
He predicted that prices would recover again in the third
and fourth quarters of 1987.
He also reiterated that there was no need for an emergency
Opec meeting.
He said Opec had expected to see some fluctuations in the
spot price. "We hope the weak price will be overcome, and
predict the price will be better in the third and fourth
quarters."
Refiners, he said, appeared to have used up old stock
deliberately to cause slack demand in the market and the price
to fall. But Opec would get through this period if members
stuck together.
| Financial Reports |
PRINCEVILLE <PVDC> GETS LETTER OF CREDIT
| <Qintex Ltd> of Brisbane said <Westpac
Banking Corp> of Australia has issued a commitment letter to
provide Princeville Development Corp with the letter of credit
required under Qintex's proposed acquisition of Princeville.
The letter of credit would ensure payment of Princeville's
contingent subordinated notes to be distributed to shareholders
of record on the day immediately following completion of
Qintex's tender for 3,300,000 Princeville share. It said
issuance of the letter of credit is still subject to conditions
including appropriate documentation, but the letter is expected
to be issued around April Three.
Qintex said as a result it has extended its tender offer
for Princeville shares until April Three.
It said through yesterday it had received 7,424,292 shares
under the offer.
| Financial Reports |
ADVANCED COMPUTER TECHNIQUES <ACTP> YEAR NET
| Shr 41 cts vs 30 cts
Net 700,000 vs 526,000
Revs 15.2 mln vs 14.7 mln
| Financial Reports |
NEWS CORP <NWS> UNIT CORRECTS DIVIDEND RATE
| News Corp Ltd's Fox Television
Stations Inc subsidiary said it will pay an accrued dividend of
5.44 dlrs per share, not the 5.83 dlrs it reported earlier, in
connection with the April 15 redemption of 230,000 shares of
increasing rate exchangeable guaranteed preferred stock for
1,000 dlrs per share plus accrued dividends.
| Financial Reports |
MCRAE INDUSTRIES <MRI-A> INCREASES PAYOUT
| McCrae Industries Inc said it
raised its preferred dividend on its Class A common stock to 12
cts per share from 11 cts per share.
It said the dividend was payable April 20, 1987, to
shareholders of record April 6.
| Commodities and Trade |
COLUMBIA FIRST <CFFS> TAKES OVER BANK
| Columbia First Federal Savings and
Loan Association said it has acquired the insured deposits of
first Federal of Maryland, based in Hagerstown, from the
Federal Savings and Loan Insurance Corp and reopend First
Federal's six former offices as Columbia First branches.
The Federal Home Loan Bank Board had closed First Federal
on March 20 because it was insolvent. First Federal had assets
of 115.2 mln dlrs.
| Financial Reports |
N.Y. DEALERS BELIEVE FED INTERVENED TO BUY DLRS
| The Federal Reserve appears to have
intervened in the U.S. foreign exchange market to buy dollars
against yen this morning, currency dealers said.
They said the intervention occurred near the dollar's early
low of 148.50 yen and the U.S. currency subsequently firmed to
149.05/15. It closed at 150.00/05 on Monday.
Dealers were uncertain of the amount involved and whether
the Fed's purchases were for its own account or for a customer.
But there was speculation that it may have been done in
conjunction with the Bank of Japan. Tokyo dealers said the
Japanese central bank bought dollars in Tokyo earlier today.
| Corporate News |
CHARMING SHOPPES INC <CHRS> RAISES QUARTERLY
| Qtly div three cts vs 2-1/2 cts prior
Pay April 15
Record April Six
| Financial Reports |
ANGELICA CORP <AGL> 4TH QTR JAN 31 NET
| Shr 47 cts vs 40 cts
Net 4,399,000 vs 3,768,000
Sales 76.6 mln vs 68.0 mln
Year
Shr 1.79 dlrs vs 1.84 dlrs
Net 16,701,000 vs 17,159,000
Sales 291.7 mln vs 269.1 mln
NOTE: FiscaL 1987 year based on 53 weeks compared wqith 52
weeks a year earlier.
| Financial Reports |
OFFICIAL INQUIRY SET FOR AUSTRALIAN WHEAT INDUSTRY
| The government's industry aid and
protection review body, the Industries Assistance Commission
(IAC), will hold a 12-month inquiry into the Australian wheat
industry, Primary Industry Minister John Kerin said.
The IAC has been asked to report on the need for assistance
to the industry and the nature, duration and extent of any aid,
he said in a statement.
He said the inquiry will be the first step in setting
marketing arrangements to apply after June 30, 1989, when the
underwriting and pricing provisions of the 1984 Wheat Marketing
Act expire.
Kerin said the broad-ranging reference would allow a full
examination of all aspects of the wheat-marketing system.
"The inquiry will be required to take into account changes
which have taken place in the industry as a result of the
agricultural policies of major wheat producing countries and
the industry's capacity to adjust to any recommended changes,"
he said.
"The inquiry is at an important time for the wheat industry,
as the substantial fall in world prices is likely to trigger
underwriting support from the government for the first time," he
said.
Kerin was referring to the government's underwriting of the
guaranteed minimum price paid to wheatgrowers by the Australian
Wheat Board near the start of the season.
The IAC's report will be due at the same time as the
findings of the current Royal Commission into Grain Storage,
Handling and Transport, Kerin said.
He said the timing of the IAC inquiry would allow its
findings and those of the Royal Commission to be considered in
later negotiations on wheat-marketing arrangements between the
federal and state governments and the industry.
| Corporate News |
GULL INC <GLL> 3RD QTR FEB 28 NT
| Shr 22 cts vs 14 cts
Net 917,000 vs 553,000
Sales 16.1 mln vs 13.6 mln
Avg shrs 4,195,000 vs 4,090,000
Nine mths
Shr 70 cts vs 29 cts
Net 2,852,000 vs 1,086,000
Sales 49.2 mln vs 40.7 mln
NOTE: Prior nine mths net includes gain 250,000 dlrs from
insurance payment.
| Financial Reports |
AMERIANA SAVINGS BANK <ASBI> 4TH QTR NET
| Shr not given
Net 328,000 vs 99,000
Year
Shr not given
Net 1,694,000 vs 998,000
NOTE: Company went public in February 1987.
Net includes pretax loan loss recovery 41,000 dlrs vs
provision 50,000 dlrs in quarter and provisions 135,000 dlrs vs
50,000 dlrs in year.
| Financial Reports |
GRIFFIN TECHNOLOGY INC <GRIF> 4TH QTR NET
| Ended Jan 31
Shr loss one ct vs loss eight cts
Net loss 25,800 vs loss 157,100
Revs 2,323,500 vs 1,930,400
Year
Shr profit 19 cts vs profit four cts
Net profit 401,100 vs profit 93,100
Revs 10.3 mln vs 8,807,000
| Corporate News |
HONDURAS SEEKS PL480 VESSELS FOR TALLOW DELIVERY
| Honduras will tender March 26 under
PL480 for U.S. and non-U.S. flag vessels to import 1,500 tonnes
of tallow in bulk, an agent for the country said.
The agent said delivery includes laydays of April 5-15.
Offers are due by 1200 hrs EST, March 26, and will remain
valid until the close of business the following day, the agent
said.
| Corporate News |
PETRIE STORES CORP <PST> 4TH QTR JAN 31 NET
| Shr 90 cts vs 97 cts
Shr diluted 82 cts vs 88 cts
Net 42.1 mln vs 43.0
Revs 379.3 mln vs 352.7 mln
Avg shrs 46.8 mln vs 44.3 mln
Avg shrs diluted 52.6 mln vs 50.0 mln
Year
Shr 1.58 dlrs vs 1.81 dlrs
Shr diluted 1.50 dlrs vs 1.76 dlrs
Net 73.7 mln vs 77.9 mln
Revs 1.20 billion vs 1.16 billion
Avg shrs 46.8 mln vs 43.0 mln
Avg shrs diluted 52.6 mln vs 45.6 mln
| Commodities and Trade |
U.S. ECONOMY SHOWS PROMISING SIGNS OF GROWTH
| The U.S. economy is showing some
promising signs of accelerated expansion despite the
sluggishness of the fourth quarter last year, private
economists say.
Some of the slowness experienced in the October-December
period had been expected to spill over into the first quarter
this year, as the tax law changes that went into effect in
January slowed business and consumer spending.
But some of the latest economic data show signs of
surprising strength in the U.S. economy, although some
economists remain cautious about the outlook.
The Commerce Department reported today that new orders for
durable goods in February jumped by 5.7 billion dlrs, a six pct
rise, to 101.2 billion dlrs. Even excluding volatile defense
goods, durable goods orders rose a healthy 3.8 pct, the agency
said.
The February numbers surpassed the expectations of many
financial analysts, whose predictions ranged from flat to
increases of up to five pct.
The January/February employment statistics suggest the
Gross National Product will show a healthy rate of growth for
the first three months of this year, said Lyle Gramley, an
economist with the Mortgage Bankers Association.
The U.S. jobless rate in February and January was 6.7 pct,
the lowest rate since March 1980. The number of new non-farm
jobs rose by 337,000 in February after a 319,000 gain in
January and a 225,000 December increase, the government said.
The employment data suggests a GNP annual growth rate of
about three to 3.25 pct in the first quarter, said Gramley.
Much of that will be attributed to businesses rebuilding
their inventories and is not likely to be sustained in the
second quarter, Gramley said. He expects a slowdown in the
second quarter with smaller increases in personal consumption
and government spending. He also sees residential construction
declining mostly for multi-family housing units.
Fidelity Bank senior economist Mickey Levy said some of the
fourth quarter slowness will continue.
Levy predicts GNP will grow at a scant 1.5 pct rate in the
first quarter of 1987, accelerate during the second quarter and
show a brisk 4.5 pct annual rate in the third quarter.
The key to both forecasts is a marked improvement in the
U.S. trade balance which is expected because of the decline in
the dollar's value over the last year and half.
"The improvement will be gradual and long lasting," Levy
predicted. Most of it will be through import reduction, but at
least one-third will be due to a rise in product exports as the
prices of U.S. goods become more attractive overseas.
The Reagan administration has predicted the trade deficit,
which soared to record levels last year, will improve this year
and the U.S. economy will grow by a respectable 3.2 pct for the
year compared with a 2.5 pct rate last year.
As part of the effort to reduce the trade deficit, the U.S.
has been pressing West Germany and Japan to stimulate their
domestic demand for goods from the U.S. and others.
U.S. officials believe that would help take some of the
pressure off the United States whose five years of economic
growth has been the mainstay of developing countries.
The U.S. economy provided them with a giant market for
their goods giving them a way to earn income badly needed to
service their foreign debt.
The government last week said the U.S. economy grew at a
modest 1.1 pct annual rate during the fourth quarter.
There were indications of improvement in the huge imbalance
between the volume of goods imported to the United States and
those shipped abroad. The report showed a rising volume of
exports corresponding to a decline in imports despite the fact
that in current dollar terms, the U.S. trade deficit worsened
during the closing three months of 1986.
While fourth quarter economic growth was weak, corporate
profits jumped a healthy 6.1 pct during the period, the
government said. It also reported that inflation, as measured
by the GNP price deflator, remained in check, growing a
moderate 0.7 pct in the period, the lowest rise in 19 years.
The government also reported that consumer spending, a key
element of the five year economic recovery, jumped 1.7 pct in
February, after falling two pct in January.
The Federal Reserve Board also reported that the
manufacturing sector, which had been one of the weaker elements
of the U.S. economy, was showing signs of recovery.
In its latest report on current economic conditions, the
Fed said that economic activity in the various regions of the
country ranged from uneven or steady to improving.
Manufacturing activity showed signs of improvement in most
regions except Dallas where orders remained sluggish.
Chase Econometrics Chairman Lawrence Chimerine said the
pick up in the U.S. manufacturing sector is largely due to the
drop in the dollar's value. He said he does not foresee a major
pick up in economic activity, but does not believe the economy
will slip into recession either.
He said higher prices on imported products and wage cuts
that have helped the manufacturing sector will squeeze
consumers purchasing power.
"That pattern is starting and will continue for a number of
years," Chimerine said. He sees economic growth hovering around
a modest two pct level for the next few years.
| Other |
INDONESIA URGED TO DEREGULATE ITS ECONOMY
| World Bank President Barber Conable
linked increased borrowing by Indonesia, the Third World's
sixth largest debtor, to fresh measures to deregulate trade and
dismantle protectionist barriers.
"We would like to see the Indonesian government continue the
adjustment process ... To move towards increased deregulation
of the economy," Conable told a press conference at the end of a
three-day visit to Jakarta.
Conable directly linked further Bank help for Indonesia's
hard-pressed balance of payments to further measures by the
government to reduce protectionism and increase efficiency.
The World Bank last month granted Indonesia a 300 mln dlr
trade adjustment loan. He said further loans would depend on
the economic policies Indonesia adopted.
But he said that in meetings with both President Suharto
and leading Indonesian ministers he had not called for specific
policy changes.
"The initiative will have to rest with the Indonesian
government. We are not here to dictate to them," he stated.
Indonesia, the only Asian member of Opec, has been badly
hit by last year's slump in oil prices which cut its revenues
from crude exports in half.
Conable had what he termed a frank meeting this morning
with Suharto.
He voiced support for measures already taken, including
September's 31 pct devaluation of the rupiah, and efforts to
deregulate imports and stimulate exports.
"The government can rely on the support of the World Bank in
a continuing program of adjustment to the economic realities of
today's world," he said.
The Bank has loaned Indonesia 10.7 billion dlrs over the
past 20 years. Lending is now about one billion a year.
The World Bank would probably like to see further
dismantling of tarrif barriers and measures to reduce
Indonesia's protected monopolies in areas like steel, plastics
and cement, western bankers and diplomats said.
The government has already said it will announce further
deregulation measures, but has given no timetable. It is also
considering selling off loss-making state companies.
Conable said the Bank would try to help Indonesia find
funds to cover its share of development projects, which
otherwise would have to be scrapped or postponed. Japan's Ex-Im
bank announced a 900 mln dlr untied credit last month.
| Corporate News |
ARGYLL SELLS SUBSIDIARY'S ASSETS FOR 14 MLN STG
| Food and drink retailer Argyll Group Plc
<AYLL.L> said it has agreed to sell its U.K. Subsidiary <George
Morton Ltd> to <Seagram United Kingdom Ltd> for about 14 mln
stg in cash.
The consideration for Morton's fixed assets, stocks,
debtors and goodwill is payable on completion of the sale. The
disposal will bring Argyll an extraordinary credit of some 8.4
mln stg.
Argyll added the agreements also depend on an indication
from the U.K. Office of Fair Trading by June 23 that the sale
will not be referred to the Monopolies Commission. Argyll
shares were up 12p to 440, firming before the announcement.
| Corporate News |
IRAN WARNS U.S. NOT TO INTERVENE IN THE GULF
| The speaker of the Iranian Parliament,
Hojatoleslam Akbar Hashemi Rafsanjani, warned the U.S. Not to
intervene in the Gulf, a day after Washington said its warships
were available to escort Kuwaiti tankers through the waterway.
"If U.S. Intervention occurs, the entire world will become
insecure for the Americans and the events of Lebanon could be
repeated for the Americans everywhere," he said.
U.S. Defence officials disclosed in Washington yesterday
that the U.S. Navy, which has about 24 warships in or near the
Gulf, was prepared to escort Kuwaiti tankers, regular targets
for Iranian attacks in an offshoot of its war with Iraq.
Rafsanjani, in an interview reported by the Iranian news
agency IRNA, also commented on earlier U.S. Disclosures that
Iran had erected sites for new Chinese-made Silkworm
anti-shipping missiles at the Strait of Hormuz.
The agency, received in London, quoted him as saying that
Iran did not need missiles to close the strait, 24 miles wide
at its narrowest, because "we can close it with artillery only."
He added "We have the longest coasts and the highest
interest here and the small southern (Gulf) states have a
lesser interest compared with us and therefore it is natural
for us to protect the security of the Strait of Hormuz more
than others."
| Corporate News |
COFFEE TRADERS EXPECT SELLOFF AFTER ICO TALKS FAIL
| The failure of the International Coffee
Organization (ICO) to reach agreement on coffee export quotas
could trigger a massive selloff in London coffee futures of at
least 100 stg per tonne today, coffee trade sources said.
Prices could easily drop to as low as 1.00 dlr or even 80
cents a lb this year from around 1.25 dlrs now, they said.
A special meeting between importing and exporting countries
ended in a deadlock late yesterday after eight days of talks
over how to set the quotas. No further meeting to discuss
quotas was set, delegates said.
Quotas, the major device used to stabilize prices under the
International Coffee Agreement, were suspended a year ago after
prices soared following a damaging drought in Brazil.
With no propects for quotas in sight, heavy producer
selling initially and a price war among commercial coffee
roasting companies will ensue, the trade sources predicted.
Lower prices are sure to trickle down to the supermarket
shelf this spring, coffee dealers said.
The U.S. And Brazil, the largest coffee importer and
exporter respectively, each laid the blame on the other for the
breakdown of the talks.
Jon Rosenbaum, U.S. Assistant trade representative and
delegate to the talks, said in a statement after the council
adjourned, "A majority of producers, led by Brazil, were not
prepared to negotiate a new distribution based on objective
criteria.
"We want to insure that countries receive export quotas
based on their ability to supply the market, instead of their
political influence in the ICO."
Brazilian Coffee Institute (IBC) President Jorio Dauster
countered, "Negotiations failed because consumers tried to
dictate quotas, not negotiate them."
Previously, quotas were determined by historical amounts
exported, which gave Brazil a 30 pct share of a global market
of about 58 mln 60-kilo bags. A majority of producers wanted
quotas to continue under this basic scheme.
But most consumers and a maverick group of eight producers
proposed carving up the export market on the basis of
exportable production and stocks, which would reduce Brazil's
share to 28.8 pct.
Consumer delegates said this method would reflect changes
in many countries' export capabilities and make coffee more
readily available to consumers when they need it.
A last-minute attempt by Colombia, the second largest
exporter, to rescue the talks with a compromise interim
proposal could not bring the two sides together.
Delegates speculated Brazil's financial problems,
illustrated by its recent suspension of interest payments on
bank debt, have increased political pressure on the country to
protect its coffee export earnings.
Developing coffee-producing countries that depend heavily
on coffee earnings, particularly some African nations and
Colombia, are likely to be hurt the most by the ICO's failure
to agree quotas, analysts said.
The expected drop in prices could result in losses of as
much as three billion dlrs in a year, producer delegates
forecast.
The ICO executive board will meet March 31, but the full
council is not due to meet again until September, delegates
said.
| Corporate News |
VALLEN CORP <VALN> 3RD QTR FEB 28 NET
| Shr 24 cts vs 33 cts
Net 347,000 vs 469,000
Sales 16.5 mln vs 14.0 mln
Nine mths
Oper shr 93 cts vs 94 cts
Oper net 1,327,000 vs 1,342,000
Sales 48.8 mln vs 34.5 mln
NOTE: Current nine mths net excludes 756,000 dlr gain from
termination of pension plan.
| Corporate News |
SHELL TO DECLARE NORWAY'S DRAUGEN FIELD COMMERCIAL
| <A/S Norske Shell>, Royal
Dutch/Shell Group's <RD.AS> Norwegian subsidiary, said it has
nearly concluded a 10 billion crown development scheme for
Norway's Draugen oil field and will declare the field
commercial in the near future.
Pending government approval of the scheme, the field could
come on stream in 1992, making it Norway's northermost field
development and the first such project on the Haltenbanken
tract off central Norway.
Work on the project could begin as early as January 1988, a
Shell spokesman said.
Shell has not released projected output levels for the
field, where water depth is 240-270 meters.
The spokesman said the field's partners have agreed to
develop Draugen with a 300-meter, single-leg concrete
gravity-base platform.
The scheme also proposes using remote subsea production
wells to tap the field's reservoir, estimated to contain 375
mln barrels of oil, and an offshore buoy-loading system to
transport oil from the field by ship.
Partners on Draugen are Shell, the operator, with a 30 pct
stake, British Petroleum Co Plc <BP.L> unit <BP Petroleum
Development (Norway) Ltd> (20 pct) and state-owned Den Norske
Stats Oljeselskap A/S <STAT.OL> (Statoil) (50 pct).
| Financial Reports |
BOND CORP HAS NO COMMENT ON ALLIED SPECULATION
| Bond Corp Holdings Ltd <BONA.S> of
Australia said it had no comment on an article in a London
evening newspaper speculating on its plans for a bid approach
to U.K. dDrinks and food giant Allied Lyons Plc <ALLD.L>.
Tony Oates, Bond Corp's Executive Director for Finance and
Administration, said "The company does not comment on market
rumors or press conjecture." He added in all instances of this
kind problems are likely to arise whatever is said.
Allied's shares were 3p up at 401p, which values the
company at around 2.75 billion stg.
London stock market analysts specializing in brewery shares
viewed a bid from Bond, which they said has assets of around
two billion stg, as highly unlikely.
They added that rumours of a possible bid for Allied have
surfaced from time to time in the press and the London equity
market ever since last year's thwarted approach from Elders IXL
Ltd <ELXA.S> of Australia.
| Financial Reports |
S. AFRICA GOLD MINING INDUSTRY HAD RECORD YEAR
| The gold mining industry had
another "exceptional year" in 1986 with tonnage milled, revenues
and profits reaching high levels, the Chamber of Mines said.
Nearly 108 mln tons of ore was milled, three pct higher
than the prior year, while revenues rose 17 pct to 16.5 billion
rand and profits increased 6.5 pct to 8.31 billion rand, the
Chamber reported.
The profit rise was achieved despite substantial cost
increases and a 26.1 pct rise in capital expenditures to 2.42
billion rand, it said.
The chamber said that a "comparatively buoyant gold price
allowed mines to continue the practise of mining lower grade
ores which has characterised recent years."
It said the industry now mines to an average grade of 5.63
grams per ton compared with 6.09 grams per ton in 1985.
Gold output for the year declined five pct to 638 tons
compared with the previous year's 671 tons.
| Financial Reports |
CLAREMONT TELLS SEC IT SEEKS 15 PCT CHAMPION PRODUCTS STAKE, TWO BOARD SEATS
|
CLAREMONT TELLS SEC IT SEEKS 15 PCT CHAMPION PRODUCTS STAKE, TWO BOARD SEATS
| Commodities and Trade |
RICE, CORN LEAD 1987 U.S. FARM PAYMENTS - USDA
| Rice and corn farmers will receive
the largest payments from the U.S. government during 1987 if
the subsidies are calculated per planted acre, the U.S.
Agriculture Department said.
USDA said government outlays to rice farmers in 1987 are
expected to reach 403 dlrs per acre planted, followed by corn
at 135 dlrs per planted acre. Government outlays include mainly
deficiency payments and price support loans.
On a per acre basis, cotton payments will reach 73.24 dlrs
in 1987, wheat 60.30 dlrs, sorghum 54.38 dlrs, barley 27.41
dlrs and oats 2.31 dlrs, USDA said.
USDA estimates farm subsidies will reach 25.3 billion dlrs
in 1987. The figures were given by USDA officials at a Senate
Agriculture Appropriations hearing yesterday.
| Financial Reports |
U.K. MONEY MARKET GIVEN 10 MLN STG LATE ASSISTANCE
| The Bank of England said it provided the
money market with late help of about 10 mln stg.
This takes the bank's total help today to some 229 mln stg
and compares with its forecast of a 300 mln stg shortage.
| Financial Reports |
VOLVO GROUP COMPANY PROPOSES TWO-FOR-FIVE ISSUE
| <AB Catena>, in which AB Volvo
<VOLV.ST> has a 48 pct stake, said it was proposing a
two-for-five stock issue that will raise the company's equity
capital to 420 mln crowns from 300 mln.
Catena reported profits after financial income and costs up
to only 231 mln crowns from 207 mln in 1985, despite an
increase in sales to 8.54 billion crowns from 5.59 billion in
1985.
The company said that its 1986 performance was best
reflected by earnings after writeoffs, which rose to 310 mln
from 221 mln in 1985.
Catena's increase in sales was mainly due to the takeover
of Safveans AB in February 1986, which changed the business
profile of Catena. It had principally operated as a Volvo
dealer. With the Safveans acquisition it is now mainly a
trading and industrial company.
In December 1986 Catena sold its share in the stockbroking
firm Jacobson och Ponsbach Fondkommission AB. This yielded a
profit of 386.7 mln crowns and was reflected in Catena's
pre-tax earnings which rose to 724 mln crowns from 204 mln in
1985.
| Financial Reports |
U.S. ENERGY SECRETARY OPTIMISTIC ON INCENTIVES
| U.S. Department of Energy Secretary
John Herrington said he was "optimistic" about the chances of
providing a more generous depletion allowance for oil and gas
producers, but added that the plan faces strong opposition from
some members of the Reagan administration.
Herrington, speaking to Houston oil executives at a
breakfast meeting, said administration debate over his plan for
a 27.5 pct annual depletion allowance was "heavy and strong"
largely because of some fears that the U.S. oil industry could
eventually become as dependent on federal subsidies as the
agriculture industry.
Herrington's proposed tax incentives for the oil industry
were issued last week after the Department of Energy released a
comprehensive report finding U.S. national security could be
jeopardized by rising oil imports.
In response to a question from Mitchell Energy and
Development Corp <MND> chairman, George Mitchell, Herrington
said the report did not definitively rule out an oil import
tarrif. "We intend to keep that debate open," Herrington said.
However, following his speech, Herrington told Reuters that
the new report shows an oil import fee "is not economical."
Herrington said, for example, a 10 dlr per barrel tariff on
oil imports would cause the nation's gross national product to
drop by as much as 32 billion dlrs.
Herrington also said he believed President Reagan, who
requested the comprehensive national security study, was
committed to some action to help the ailing U.S. oil industry.
"I'm quite confident he understands the problems and is
prepared to do something about it," Herrington said.
| Corporate News |
COMMERCIAL METALS CO <CMC> 2ND QTR FEB 28 NET
| Shr 23 cts vs 34 cts
Net 2,091,000 vs 3,053,000
Revs 203.5 mln vs 215.7 mln
Avg shrs 8,967,719 vs 8,863,945
1st half
Shr 40 cts vs 69 cts
Net 3,616,000 vs 6,111,000
Revs 411.8 mln vs 418.1 mln
Avg shrs 8,958,100 vs 8,850,656
| Financial Reports |
GEO. A. HORMEL <HRL> VOTES TWO-FOR-ONE SPLIT
| Geo. A. Hormel and Co said its
directors voted a two-for-one split, payable June one, record
April 18.
| Commodities and Trade |
CLAREMONT TO BOOST CHAMPION PRODUCTS <CH> STAKE
| Claremont Group Ltd, a New York
investment banking firm, said it intends to boost its current
10 pct stake in Champion Products Inc to as much as 15 pct of
the total outstanding common stock.
Claremont added that it asked Champion to put two
representatives on its nine-member board of directors.
Claremont previously disclosed in December that it had
agreed to act in concert with Walsh, Greenwood and Co, an
affiliated investment firm, to acquire Champion Products.
Claremont said it made net purchases of 7,800 Champion
Products shares between Jan. 28 and March 18.
In a March 20 letter to Champion Chairman John Tanis,
Claremont and Walsh representatives Stephen Walsh and John
Cirigliano said they were pleased with the company's
performance but wanted to take an active management role.
"We believe that Champion Products has just begun to evolve
into the market leader it will eventually become," they said. "As
significant shareholders with mutual interests with the
company, we would like to actively participate in this process."
Claremont's intentions and the letter were made public in a
filing with the federal Securities and Exchange Commission.
| Commodities and Trade |
<SHELL U.K. LTD> YEAR 1986
| Sales proceeds 6.57 billion stg vs 8.81 billion
Duty and value added tax 1.84 billion vs 1.60 billion
Net proceeds 4.73 billion vs 7.21 billion
Net profit 757 mln vs 667 mln
Average capital employed 3.63 billion vs 3.71 billion
Capital and exploration expenditure 644 mln vs 618 mln
Cash surplus 423 mln vs 584 mln.
NOTE - Company is wholly owned subsidiary of Royal
Dutch/Shell Group <RD.AS>
| Industrial and Sector News |
CYCLOPS <CYL> SAYS DIXONS AGREEMENTS BINDING
| Cyclops Corp said that as it has
already stated, its agreements with <Dixons Group PLC> are
binding and Dixons will not rescind or waive any provisions of
the agreements.
The company said its agreement to merge into Dixons does
not permit it to provide nonpublic information to <CYACQ>,
which is making a competing offer for Cyclops, that had been
provided to Dixons.
It said other provisions Dixons will not waive include its
rights to recover breakup fees or expenses from Cyclops or buy
Cyclops common shares from Cyclops.
Cyclops noted that Dixons' waiver of rights to breakup fees
or the purchase of common stock directly from Cyclops and the
provision of nonpublic information to CYACQ are conditions to
CYACQ's increased 92.50 dlr per share offer to acquire Cyclops
shares.
Dixons is tendering for Cyclops shares at 90.25 dlrs a
share. Yesterday Citicorp <CCI>, with Audio/Video Affiliates
Inc <AVA> an owner of CYACQ, said it had offered to acquire
from Dixons after the merger of Cyclops into Dixons Cyclops'
industrial businesses for 12.8 mln dlrs more than Alleghany
Corp <Y> is currently scheduled to pay for them.
Citicorp said yesterday that its proposal would allow
Dixons to raise its tender price to 93.25 dlrs per share.
Citicorp said if Dixons accepted the proposal, CYACQ would
terminate its competing offer for Cyclops.
| Financial Reports |
<J.M. RESOURCES INC> IN MERGER AGREEMENT
| J.M. Resources Inc said it has acquired
a 90 pct interest in DEI Acquisition Corp from InterFirst
Venture Corp, Sam B. Myers, Neomar Resources Inc and Richard L.
Morgan, all of Dallas, for warrants to acquire 10.1 mln shares
of J.M. stock and three mln dlrs of notes.
The warrants are exercisable at par value, currently 10 cts
per share, until March 20, 1997. The company said if the
warrants were exercised in full, they would represent a 40.7
pct interest in J.M. common stock. It said amounts due under
the notes are payable soleley from proceeds of the sale of
securities by J.M. and non-oil and natural gas revenues of DEI.
J.M. said DEI provides specialty insulation installation
and asbestos removal services.
J.M. said all of its directors except Jack E. Manning Jr.
have resigned and Myers and Morgan were named to the board.
It said Manning has resigned as president in favor of Myers
and will service as vice president in charge of oil and natural
gas operations.
| Industrial and Sector News |
ASTROTECH <AIX> DIRECTOR BUYS COMPANY STOCK
| Astrotech International Corp said
its director S. Kent Rockwell, who controls Rockwell Venture
Capital Inc, will buy 27 pct of the company's cumulative
preferred stock.
It said will buy up to 302,300 shares of Astrotech's 1.80
dlrs cumulative preferred stock.
It said the shares are owned by W.F. Rockwell Jr, chairman
and chief executive officer of Astrotech and S. Kent Rockwell's
father.
| Financial Reports |
AMERICAN CYANAMID <ACY> CHANGES RECORD DATE
| American Cyanamid Co said subject
to approval by its board it has changed the record date for the
quarterly dividend it will pay on June 26 to May 8 from May 29
to coincide with the record date for a two-for-one stock split
that was declared at the same time.
The dividend on a post-split basis is 26-1/4 cts per share.
| Financial Reports |
PNEUMATIC SCALE CO <PNU> SETS QUARTERLY
| Qtly div 25 cts vs 25 cts prior
Pay May 4
Record April 20
| Corporate News |
CURTICE-BURNS FOODS INC <CBI> RAISES PAYOUT
| Qtly div 26 cts vs 24 cts prior
Pay April 30
Record April 15
| Corporate News |
CRA Ltd 1986 net profit 138.2 mln dlrs vs 87.8 mln
|
CRA Ltd 1986 net profit 138.2 mln dlrs vs 87.8 mln
| Corporate News |
HYDRAULIC <THC> SPLITS 3-FOR-2, HIKES DIVIDEND
| The Hydraulic Co said its
board approved a three-for-two stock split of its common stock
and increased its quarterly cash dividend.
It said the stock split will occur through a 50 pct stock
distribution on Hydraulic's common stock, payable April 30 to
stockholders of record on April 3.
The quarterly cash dividend, payable April 15 to
stockholders of record on April 3, is to be paid on Hydraulic's
pre-split shares that are currently outstanding, the company
said.
The dividend will be 54.75 cts per share, up from 52 cts
per share.It will represent a quarterly common stock cash
dividend of 36.50 cts per share on the share that will be
outstanding after the stock split, the company said.
| Commodities and Trade |
HUGHES SUPPLY INC <HUG> 4TH QTR NET
| Shr 52 cts vs 49 cts
Shr diluted 1.95 dlrs vs 1.99 dlrs
Net 1,751,609 vs 1,622,503
Sales 85.9 mln vs 85.1 mln
Year
Shr 2.10 dlrs vs 1.99 dlrs
Shr diluted 1.95 dlrs vs 1.99 dlrs
Net 6,822,493 vs 6,601,717
Sales 347.8 mln vs 324.6 mln
| Financial Reports |
PREWAY INC <PREW> 4TH QTR LOSS
| Shr loss 64 cts vs loss 1.29 dlrs
Net loss 5,732,000 vs loss 4,924,000
Sales 18.8 mln vs 23.6 mln
Avg shrs 9.0 mln vs 3.8 mln
Year
Shr loss 1.82 dlrs vs loss 3.65 dlrs
Net loss 12,267,000 vs loss 13,911,000
Sales 112.8 mln vs 129.3 mln
Avg shrs 6.7 mln vs 3.8 mln
| Corporate News |
MOORE-MCCORMACK <MMR> COMPLETES UNIT SALE
| Moore McCormack Resources Inc
said it has completed the previously-announced sale of its
Interlake Steamship Co and Moore McCormack Bulk Transport Inc
Great Lakes and ocean bulk shipping units to James R. Barker.
The company said president Paul Tregurtha has succeeded
Barker as chairman and chief executive officer of Moore
McCormack.
| Corporate News |
SUDAN REJECTS IMF DEMAND FOR DEVALUATION
| Sudan has rejected a demand by the
International Monetary Fund for a currency devaluation because
such a move would have a negative impact on its economy, the
official Sudan News Agency (SUNA) reported.
Finance Minister Beshir Omer, quoted by SUNA, said his
government also rejected an IMF demand to lift state subsidies
on basic consumer goods.
SUNA, monitored by the British Broadcasting Corporation,
said Omer made the remarks after a meeting in Khartoum
yesterday with IMF envoy Abdel-Shakour Shaalan.
Sudan, burdened by a foreign debt of 10.6 billion dlrs, is
some 500 mln dlrs in arrears to the IMF, which declared it
ineligible for fresh loans in February last year.
In February 1985, Sudan announced a 48 pct devaluation of
its pound against the dollar, adjusting the official exchange
rate to 2.5 pounds to the U.S. Currency.
Since then, it has resisted pressure from main creditors
for more currency adjustments, arguing that past devaluations
had failed to boost exports but raised local consumer prices.
Sudan also has an incentive rate of four pounds to the dollar
for foreign visitors and remittances by expatriate workers.
Dealers in Khartoum's thriving black market said the dollar
was sold at 5.5 pounds today.
With stringent import regulations and the government
increasingly short of foreign currency, black market dollars
are used to finance smuggled imports from neighbouring
countries, mainly Egypt, Kenya, Ethiopia and Zaire.
Western diplomats in Khartoum say the meetings between IMF
and Sudanese government officials do not amount to formal
talks, but rather an effort by the IMF to monitor Sudan's
economic performance.
The diplomats said Sudan hoped a planned four-year economic
recovery program would be acceptable to the IMF as a serious
attempt to tackle the country's economic troubles and persuade
its Gulf Arab creditors to pay the IMF arrears.
This, they said, could provide Sudan with a clean bill of
health from the IMF that it could take to Western government
creditors, grouped informally in the so-called Paris Club, to
reschedule debt payments.
Twenty-three pct of Sudan's total foreign debt is owed to
members of the Paris Club, the diplomats said.
Sudan's Finance Minister said last month the country's IMF
representative had told him the fund's executive board was "very
pleased with the 18.5 mln dlrs arrears we have paid in the past
couple of months."
The representative, Omer Said, said IMF Managing Director
Michel Camdessus said he would ask Saudi Arabia, to which Sudan
owes about 1.4 billion dlrs, to help Khartoum to pay more.
Sudan has an annual debt liability of nearly 900 mln dlrs
but set aside only some 200 mln dlrs to service debts in the
fiscal year ending next June 30.
| Industrial and Sector News |