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SOUTHERN NATIONAL CORP <SNAT> SETS STOCK SPLIT
| Southern National corp said its
board declared a three-for-two stock split, payable to
shareholders of record on May 22.
A company spokeswoman said the payable date for the split
has not yet been fixed but would be shortly after the record
date.
| Financial Reports |
NATIONAL SEMICONDUCTOR<NSM> CITES IMPROVED RESULTS
| National Semiconductor Corp
said improved results at its Semiconductor Group helped reduce
losses in the third quarter and nine months.
In the quarter ended March 8, the group had a modest sales
increase and major improvement in operating performance
compared to the year-ago quarter, the company said.
But results softened from the prior quarter because of low
bookings last fall for third quarter shipment and holiday
shutdowns, it said.
The semiconductor maker cut net losses to 25.6 mln dlrs or
31 cts a share from 39.4 mln dlrs or 47 cts in the quarter.
Losses in the nine months were reduced to 32.7 mln dlrs or
44 cts from 84.4 mln dlrs or one dlr. Sales grew 23.5 pct in
the quarter to 398.1 mln dlrs and 25.5 pct in the nine months
to 1.36 billion dlrs.
Bookings recovered in the latter part of the third quarter,
the company said. Despite the improvement in order rates and
operating results year-to-year, pricing continues to be
"aggressive for many products," it said.
Nevertheless, it expects the semiconductor business will
continue to improve this year. The Information Systems Group
will continue strong sales growth based on recent order trends
and new product introductions, it said.
| Corporate News |
N.Z. QUARTERLY CURRENT ACCOUNT DEFICIT NARROWS
| New Zealand's current account deficit
for the quarter ended December 31, 1986 narrowed to 567 mln
dlrs from 738 mln, revised down from 742 mln, for the September
quarter and from 733 mln a year earlier, the statistics
department said.
The deficit for the year ended December narrowed to 2.75
billion dlrs from 2.91 billion dlrs, revised down from 2.92
billion, for the year ended September. The deficit for calendar
1985 was 2.61 billion.
The December quarter showed a 182 mln dlr surplus for
merchandise trade, unchanged from the September quarter surplus
which was revised down from 271 mln dlrs. The 1985 December
quarter showed a 13 mln dlr deficit.
Imports for the December 1986 quarter were 2.655 billion
against 2.883 billion in the September quarter and 2.454 a year
earlier. Exports were 2.837 billion against 3.065 billion and
2.440 billion.
Imports for the year ended December 1986 were 10.74 billion
dlrs compared with 11.14 billion in 1985. Exports were 11.20
billion against 11.36 billion.
Government borrowing stood at 9.26 billion dlrs for
calendar 1986 against 3.15 billion for 1985. Borrowing in the
December quarter rose to 3.92 billion from 1.79 in the
September quarter and 611 mln a year earlier.
Repayments stood at 5.5 billion for the year, up from 3.1
billion in 1985. Repayments in the December quarter accounted
for 1.4 billion dlrs against 260 mln in the September quarter
and 334 mln a year earlier.
Official reserves totalled 7.205 billion dlrs at end
December compared with 4.723 billion at end September and 3.255
billion one year earlier.
| Financial Reports |
EC COLD AID FOOD SCHEME MAY BE MADE PERMANENT
| Emergency action to distribute
European Community (EC) food surpluses to the poor has proved
so successful that the EC executive Commission may propose a
permanent scheme, a Commission spokesman said.
Almost 60,000 tonnes of food was taken out of EC stores
between January 20, when Agriculture Ministers approved the
scheme, and March 13, according to latest commission figures.
The food, including 30,000 tonnes of cereals, 6,000 tonnes
of sugar, 4,000 tonnes of beef and 13,300 tonnes of butter, has
been distributed to the needy through charities.
The present scheme was approved as an emergency measure to
help poor people affected by this year's unusually cold winter
and will end on March 31.
But the spokesman said the commission will consider whether
to propose it be replaced by an all-year-round system.
The commission estimates that up to March 13 the temporary
scheme cost between 63 and 68 mln European currency units
(72/78 mln dlrs). This is above the 50 mln Ecu (57 mln dlr)
ceiling originally envisaged by the Ministers.
However, commission sources said the real cost was small if
account is taken of the expense of keeping food in store until
its quality and value deteriorates.
On the other hand, the impact of the temporary scheme on EC
food surpluses has been slight. EC surplus food stocks at
January 31 included 1.28 mln tonnes of butter, 520,000 tonnes
of beef and over 10 mln tonnes of cereals.
| Financial Reports |
FED MAY ADD RESERVES, ECONOMISTS SAY
| The Federal Reserve may intervene in
the government securities market to add reserves today, some
economists said, although others felt that the Fed was likely
to refrain from any action.
Those who believed the Fed will intervene said it would
probably add temporary reserves indirectly via 1.5 to two
billion dlrs of customer repurchase agreements.
But others noted the Fed's current add-need is not large.
They also expected the federal funds rate to edge lower.
Fed funds, which averaged 6.21 pct on Monday, opened at
6-1/8 pct and remained at that level in early trading.
| Corporate News |
BERLINER BANK OUTLINES LOSSES
| <Berliner Bank AG> has suffered
losses of between 25 mln and 30 mln marks on credits extended
by its Stuttgart branch by bank officials who exceeded their
powers, a bank spokesman said.
The spokesman, replying to queries about press reports,
said he could not rule out the possibility that the final loss
figure may be slightly above this range.
Late last week the bank said only that the losses from the
credits in Stuttgart would be in the "double-digit millions."
| Financial Reports |
HUGHES SUPPLY INC <HUG> SETS QUARTERLY
| Qtly div 10 cts vs 10 cts prior
Pay May 22
Record May 8
| Corporate News |
KLEINERT'S INC <KLRT> 1ST QTR ENDS FEB 28 NET
| Shr 24 cts vs 18 cts
Net 359,000 vs 297,000
Revs 5,724,000 vs 6,430,000
Avg shrs 1,475,0000 vs 1,668,000
NOTE: qtrs include tax gain of 147,000 vs 137,000.
Prior qtr ended March 1, 1986.
| Commodities and Trade |
U.S. SUPREME COURT ALLOWS OFFSHORE ALASKAN OIL AND GAS EXPLORATION
|
U.S. SUPREME COURT ALLOWS OFFSHORE ALASKAN OIL AND GAS EXPLORATION
| Corporate News |
MICRODYME CORP <MCDY> 1ST QTR FEB ONE LOSS
| Shr loss nine cts vs profit two cts
Net loss 397,000 vs profit 76,000
Revs 3,763,000 vs 6,467,000
| Financial Reports |
U.S. COURT ALLOWS OFFSHORE ALASKAN EXPLORATION
| A unanimous Supreme Court ruled that
oil and gas exploration can proceed on two tracts off the
Alaska coast which were leased by the federal government to
eight major oil companies.
The ruling was an important victory for the oil companies
and the Reagan administration's controversial off-shore leasing
program and a setback for two small Alaskan villages that
challenged the leases by claiming damage to the environment.
The administration said that the court-ordered halt in
drilling had created uncertainty over the 4.2 billion dlrs paid
for 621 leases off the shores of Alaska since December 1980.
A federal appeals court ordered the oil companies to halt
all exploration and remove all drilling rigs from two tracts in
the Bering Sea off Alaska because of possible harm to the
subsistence needs and culture of native Eskimos.
But the Supreme Court said the appeals court was wrong in
issuing an injunction halting exploration.
"Here, injury to subsistence resources from exploration was
not at all probable," Justice Byron White wrote for the court.
"And on the other side of the balance of harms was the fact
that the oil companies had committed approximately 70 mln dlrs
to exploration to be conducted during the summer of 1985 which
they would have lost without chance of recovery had exploration
been enjoined," he said.
The oil companies, Amoco Corp <AN>, ARCO, Exxon Corp <XON>,
Mobil Corp <MOB>, Sohio, Shell, Texaco Inc <TX> and Union Oil,
had said that voiding previously granted leases would result in
staggering financial losses.
The first lease sale in 1983 involved 2.4 mln acres and
generated 318 mln dlrs while the second lease sale in 1984
covered 37 mln acres and produced 516 mln dlrs.
Administration officials, saying the lease sales were
preceded by an intense environmental impact study, denied that
the oil and gas exploration would hurt subsistence resources.
The Alaskan villages of Gambell and Stebbins, along with an
organization of Eskimo natives on the Yukon Delta, argued that
the drilling would hurt native hunting and fishing.
| Financial Reports |
TRANSAMERICA SELLS OCCIDENTAL LIFE AUSTRALIA
| Equity investment company <Battery
Group Ltd> said it had agreed to buy <Occidental Life Insurance
Co of Australia Ltd> from TransAmerica Corp <TA> of the U.S.
For 105 mln Australian dlrs.
The acquisition has been made possible by the efforts of
its major shareholder, <Pratt and Co Financial Services Pty
Ltd>, Battery Group said in a statement.
The purchase will be partly funded by the issue of eight
mln shares at 4.50 dlrs each and four mln free options to the
Pratt Group, controlled by entrepreneur Dick Pratt, plus four
mln shares to professional investors at 4.50 each, it said.
The balance will be funded by debt, Battery Group said.
The acquisition is subject to the approval of its
shareholders.
On completion of the share placements, Pratt Group will
effectively have 51 pct of Battery's enlarged capital, assuming
exercise of all options, it said. Battery now has 22 mln shares
on issue.
Battery said Occidental Life is a major underwriter of
individual term life insurance and a recent but fast-growing
entrant in the individual account superannuation market.
It has some 200 mln dlrs in funds under management.
| Financial Reports |
LOWER TAX OFFSETS LOWER SHELL U.K. UPSTREAM PROFIT
| <Shell U.K. Ltd's> pre-tax profit on
exploration and production operations fell to 869 mln stg in
1986 from 2.12 billion in 1985 due to the fall in oil prices
last year, Shell U.K. Finance director Nigel Haslam said.
But he told a press conference that due to the high
marginal tax rate on North Sea operations, the main impact of
the drop in profit was absorbed by a fall in taxation to 330
mln stg from 1.45 billion in 1985.
The bulk of tax last year was Corporation Tax, with
Petroleum Revenue Tax (PRT) representing only 16 mln stg, he
said.
As a result, post-tax profit from the exploration and
production sector fell by only 126 mln stg to 539 mln.
Earlier, Shell U.K., a subsidiary of Royal Dutch/Shell
Group <RD.AS>, reported an overall net profit of 757 mln stg,
up from 667 mln in 1985, on sales of 6.57 billion stg against
8.81 mln.
Shell U.K. Chairman Bob Reid said the company's crude oil
output from the North Sea was at a record 373,000 bpd in 1986,
which would almost certainly prove to be a peak for the
company. Shell expects a fall in output of around 10 pct in the
current year to around 340,000 bpd, due mainly to the decline
in output from the major Brent field, he said.
Gas output of 5.9 billion cubic metres and natural gas
liquids output of around one mln tonnes in 1986 are expected to
be maintained in 1987, he said.
A final decision on development of the Kittiwake and Osprey
North Sea oil fields will be made in the next 12 to 18 months,
Reid said. The Kittiwake field, originally part of the 2.5
billion stg Gannet project abandoned last year when the oil
price fell, is now estimated to cost around 350 mln stg.
Economies on development costs for the Tern and Eider North
Sea fields, which were approved last year, have brought the
cost down to 30 to 35 pct below the original budget.
Day to day operating costs of the exploration and
production sector had been cut 10 pct last year, and the target
is to keep costs per barrel constant.
The company drilled 17 wells offshore, with 10 leading to
the discovery of hydrocarbons, although it is too early to
gauge the commercial viability of these discoveries, Reid said.
Restructuring of the downstream oil sector contributed to a
profit rise to 187 mln stg in 1986 from 91 mln stg in 1985.
Jaap Klootwijk, managing director of downstream unit <Shell
U.K. Oil>, said refining margins in the first quarter of 1987
were a "bit better than the very bad fourth quarter 1986."
In November and December in particular, refining operations
had shown negative margins following the fall in crude and oil
product prices, he said. He expected margins to continue
generally positive over the summer, although they could dip to
become negative from time to time, depending on price
movements.
A new catalytic cracker at Shell's Stanlow refinery will
now come on stream by the end of first quarter 1988, about five
months behind schedule, following a crane accident which
severely damaged the plant last year, he said.
Profits from the chemicals sector rose to 33 mln stg from
11 mln after the rationalisation of the Carrington chemical
site.
Haslam said the Budget announcement on PRT relief, by which
companies will be allowed to offset up to 10 pct of qualifying
development expenditure on certain future oil fields against
PRT, was "helpful," but rather less than had been hoped for.
Reid said his estimate of crude oil prices this year was in
the range of 15 to 18 dlrs. If prices went much above that, he
would expect some over-production above OPEC"s official 15.8 mln
bpd output ceiling which would tend to bring prices back down.
He said it looked as if the December OPEC pact to restrain
output was holding, bringing supply and demand into balance,
but the test will come in summer when demand for OPEC oil will
fall.
| Corporate News |
CALNY INC REJECTS PEPSICO INC ACQUISITION OFFER
|
CALNY INC REJECTS PEPSICO INC ACQUISITION OFFER
| Financial Reports |
DIXONS PLANS TO LET CYCLOPS <CYL> OFFER EXPIRE
| Dixons Group PLC said it does not plan
to extend the expiration date of its tender offer for any and
all common shares of Cyclops Corp beyond tonight.
Dixons said it would accept shares validly tendered and not
withdrawn by midnight tonight.
Dixons, which is offering 90.25 dlrs a share for Cyclops,
said last week it had about 54 pct of Cyclops common shares.
Its offer originally was scheduled to expire March 17 but was
extended for one week.
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 92.50 dlr offer for Cyclops.
Citicorp had suggested yesterday that Dixons extend its
tender until March 31 in connection with the price increase.
| Corporate News |
INTERNATIONAL CLINICAL LABORATORIES INC <ICLB>
| Shr nine cts vs seven cts
Net 676,000 vs 509,000
Revs 48.5 mln vs 39.9 mln
1st half
Shr 12 cts vs 17 cts
Net 923,000 vs 1,248,000
Revs 94.1 mln vs 79.5 mln
NOTE:Current half net includes charge 500,000 dlrs from
reversal of investment tax credits.
| Financial Reports |
NORWEGIAN CENTRAL BANK RESERVES FALL IN JANUARY
| Norway's Central Bank reserves totalled
91.06 billion crowns in January, against 93.07 billion in
December and 105.29 billion in January 1986, the central bank
said in its monthly balance sheet.
Foreign exchange reserves totalled 83.68 billion crowns,
compared with 85.52 billion in December and 99.19 billion
crowns a year ago. Gold reserves totalled 284.7 mln crowns,
unchanged from the previous month and the year-ago figure.
Central bank special drawing right holdings were 2.82
billion crowns, compared with 2.89 billion in December and 2.13
billion a year ago.
| Commodities and Trade |
CRA LTD <CRAA.S> 1986 NET
| Net 138.20 mln dlrs vs 87.80 mln.
Shr 24.8 cents vs 17.8
Final div to announced after July 1, vs final 10 cents
making 15.
Sales revenue 4.81 billion vs 4.69 billion
Investment income 116.93 mln vs 60.61 mln
Shrs 494.35 mln vs 494.22 mln.
NOTE - Net is after tax 171.03 mln dlrs vs 188.52 mln,
interest 337.39 mln vs 308.68 mln, depreciation 352.32 mln vs
333.05 mln but before net extraordinary loss 250.28 mln vs
profit 28.03 mln.
| Other |
GNB JOINS IN LEVERAGED BUYOUT OF FRENCH UNIT
| <GNB Inc> said it joined
with the management of the French company Compagnie Francaise
d'Electro-Chimie to purchase the company for an undisclosed
amount.
The French company, which produces lead-acid batteries, had
sales in 1986 of 75 mln dlrs, GNB said.
| Financial Reports |
OIL TAX BREAK RIDICULED BY U.S. HOUSE TAXWRITER
| A House taxwriter said Energy
Secretary James Herrington's "outrageous" plan to restore an old
tax break for oil companies was both bad tax and energy policy.
Rep. Pete Stark, a California Democrat and senior House
Ways and Means Committee member, said Herrington's plan for a
27.5 pct depletion allowance--which in effect is a special 27.5
pct tax deduction --would cost seven billion dlrs a year.
"He must have missed the last two years of federal tax
reform by sleeping as soundly as Rip Van Winkle," Stark said.
He said in a statement the oil industry already pays an
effective lower rate of U.S. tax on investment, 15 pct versus
aggregate corporate tax on all investment of 34 pct, according
to a recent Congressional Research Service study.
| Corporate News |
CALNY <CLNY> REJECTS PEPSICO ACQUISITION OFFER
| Calny Inc said its board
rejected as inadequate the unsolicited offer by PepsiCo Inc
<PEP> subsidiary Taco Bell Corp for all Calny's outstanding
common stock at 11.50 dlrs cash per share.
Taco Bell recently acquired 9.9 pct of Calny's outstanding
stock, Calny said.
Calny said it retained Oppenheimer and Co Inc to consider
various financial and strategic alternatives available to the
company.
| Other |
K MART CORP RAISES DIVIDEND 17.6 PCT, VOTES THREE-FOR-TWO STOCK SPLIT
|
K MART CORP RAISES DIVIDEND 17.6 PCT, VOTES THREE-FOR-TWO STOCK SPLIT
| Financial Reports |
MALAYSIA RE-IMPOSES EXPORT DUTIES ON RUBBER
| The Malaysian government said it
has re-imposed export duties on rubber at 3/8 cent per kilo
after the gazetted price moved above the threshold price of 210
cents per kilo.
The gazetted price, effective March 1, rose to 213-1/2
cents per kilo from February's 207.
The duty for research remains at 3.85 cents per kilo and
the replanting duty is also unchanged at 9.92 cents.
| Corporate News |
FED GOVERNOR SUPPORTS COMMODITY PRICE GUIDE
| Robert Heller, a member of the Board
of Governors of the Federal Reserve System, said commodity
prices could form a useful guide for setting domestic and
international monetary policy.
Speaking to the conservative Heritage Foundation, Heller
said, "A broadly based commodity price index may be worth
exploring" as a guide to monetary policy.
"In times of rising commodity prices, monetary policy might
be tightened and in times of falling commodity prices, monetary
policy might be eased," he said.
Commodities are also standardized to avoid measurement
problems and occur at the beginning of production so as to give
"early warning" signs of wholesale and retail changes.
"There is no need to react to every small fluctuation in
commodity prices or to do so on a daily basis," Heller said in a
prepared text.
"But if commodity prices exhibit a broad trend, a policy
action might be considered," he said.
Heller said using a broad-based commodity price index as an
indicator for monetary policy would also contribute to
stabilized currency exchange rates.
Commodity prices are generally uniform worldwide and prices
for them are more consistent than for other types of goods, he
said.
He said other beneficial effects would be to stabilize
export commodity prices for developing countries by using a
commodity basket as a guidepost for monetary policy.
| Corporate News |
K MART <KM> RAISES PAYOUT, VOTES SPLIT
| K mart Corp said its board approved
a 17.6 pct increase in the quarterly dividend and declared a
three-for-two stock split.
The company raised its dividend to 43.5 cts a presplit
share, up from the previous 37 cts a share. After the split,
the new quarterly dividend rate is equivalent to 29 cts a
share. It is payable June Eight, record May 21.
It said the additional shares will be distributed June
Five, record May 21.
| Corporate News |
SOUTHMARK <SM> SELLS NATIONAL HERITAGE STAKE
| National Heritage Inc, a unit of
Southmark Corp, said it began an initial public offering of two
mln shares of common stock at a price of 9.50 dlrs a share.
All the shares are being offered by National Heritage,
which will trade under symbol NHER on Nasdaq, through lead
underwriter Drexel Burnham Lambert Inc.
Proceeds will be used to increase working capital, complete
renovations at leased facilities and repay certain debts to
Southmark.
After the offer, Southmark will retain about 82 pct of the
11 mln outstanding common shares of National Heritage, which
operates 201 long-term nursing care facilities.
| Other |
MALAYSIA RAISES DUTY ON PROCESSED PALM OIL
| The government said it raised the
export duty on processed palm oil (PPO) to 64.06 ringgit per
tonne from 40.96 ringgit, effective from March 1.
Export duty on crude palm oil (CPO) was unchanged at 16.06
ringgit per tonne.
The gazetted price of PPO rose to 796.8604 ringgit per
tonne from 719.8286. That of CPO remained at 617.8238 ringgit.
The export duty and gazetted price of palm kernel were left
unchanged at 191.15 and 955.75 ringgit per tonne respectively.
| Other |
GHANA COCOA PURCHASES STILL AHEAD OF LAST YEAR
| The Ghana Cocoa Board said it purchased
456 tonnes of cocoa in the 23rd week, ended March 12, of the
1986/87 main crop season, compared with 684 tonnes the previous
week and 784 tonnes in the 23rd week ended March 20 of the
1985/86 season.
Cumulative purchases so far this season stand at 217,235
tonnes, ahead of the 203,884 tonnes purchased by the 23rd week
of last season, the board said.
| Corporate News |
OWENS-ILLINOIS <OI> ACQUISITION COMPLETED
| OII HoLdings Corp, a concern formed by
Kohlberg Kravis Roberts and Co, said it completed its
previously announced acquisition of Owens-Illinois Inc.
Under terms of the February 10 agreement, OII paid 60.50
dlrs per common share and 363 dlrs per 4.75 dlrs convertible
preferred share.
OII said each common share still outstanding at the time of
the merger has been converted into the right to receive 60.50
dlrs per share and all preference shares not converted will be
redeemd on April 22 at a redemption price of 100 dlrs per
preference share plus accrued and unpaid dividends.
OII said it has assumed Owen's 3-3/4 pct sinking fund
debentures due June 1, 1988, 9.35 pct sinking fund debentures
due November 1, 1999, and 7-5/8 pct debentures due April 1,
2001.
OII said the New York Stock Exchange said the securities
will be delisted as a result of the merger. OII said it is
anticipated that the securities will be traded in the over-the-
counter market.
The surviving company will be known as Owen-Illinois Inc,
it said.
| Corporate News |
HECLA <HL> TO BUY MINE STAKE FROM BP <BP> UNIT
| Hecla Mining Co said it
has agreed to purchase a 28 pct interest in the Greens Creek
Joint Venture from British Petroleum Co PLC's Amselco Minerals
Inc unit.
The venture expects to bring into production a
gold-silver-lead-zinc ore body on Admiralty Island, Alaska,
containing about 3,500,000 short tons of ore assaying about
0.18 ounce of gold, 24.0 ounces of silver, 9.7 pct zinc and 3.9
pct zinc per short ton, Hecla said. It said there is
significant potential for the discovery of additional ore.
Hecla said initial production from a trackless underground
mine is scheduled for late 1988 at a rate of about 1,000 tons
or ore per day. "At this rate, the Greens Creek mine will be
the largest domestic silver mine and is expected to be one of
the lowest cost producers."
The company said it estimates its total investment in the
project, including its share of preproduction costs, at about
45 mln dlrs, to be funded through internally generated cash and
existing lines of credit. It said Amselco will retain a
majority interest in the project. Other interest holders are
CSX Corp <CSX> and <Exaias Resources Corp>.
| Financial Reports |
CHRYSLER, LAMBORGHINI STILL IN JOINT VENTURE TALKS
| Joint venture talks that could
lead to Chrysler Corp <C> taking a stake in Italian car maker
<Automobili Lamborghini SpA> are continuing, a Lamborghini
spokesman said.
He told Reuters the two companies are discussing a number
of topics ranging from "a joint venture in the production area
to Chrysler becoming a shareholding partner" in the Italian
firm.
The spokesman declined to comment on whether Chrysler was
interested in acquiring control of Lamborghini or if the two
sides were close to an accord.
He said the two companies are discussing the possibility of
jointly developing a sports car aimed primarily at the U.S.
Market.
The spokesman said Chrysler officials in Detroit had
already visited Lamborghini's production plant in Bologna and
another visit may be scheduled.
Lamborghini, which is controlled by the Mimran Group of
Switzerland, broke even last year on sales of 29 billion lire,
he said.
Chrysler also holds a 15 pct interest in Italian sports car
producer <Alfieri Maserati Spa>.
| Financial Reports |
MOSCOW SUPPORTS FREE GULF NAVIGATION, ENVOY SAYS
| The Soviet Union supports the freedom
of navigation in the Gulf and does not support any act which
would cause the deterioration of the situation in the region,
its ambassador to Kuwait, Ernest Zverev, told the Kuwaiti news
agency KUNA.
"We support the freedom of navigation in the Arabian Gulf
and the Strait of Hormuz," the agency quoted Zverev as saying.
KUNA also said the envoy had discussed the deployment of
Iranian missiles near the Strait of Hormuz with Kuwaiti Foreign
Undersecretary Suliman Majed al-Shaheen.
A British naval source in the Gulf said today Iran had
test-fired its new Silkworm missiles and set up launching sites
in the area.
The tests had been successful and the missiles could be
used against shipping in the strait, the source added.
But Iranian Parliamentary Speaker Hojatoleslam Akbar
Hashemi Rafsanjani said Iran did not need missiles to close the
strait because "we can close it with artillery only."
The U.S. Has said it will not allow Iran to use missiles to
choke off oil shipments and offered its warships to escort
Kuwaiti tankers past the missile batteries in the strait.
| Financial Reports |
BELGIUM DETAILS PRICING PLAN FOR ECU GOLD COIN
| The 50 European Currency Unit gold
coins which go on sale tomorrow in Belgium will be priced at a
premium of seven pct to the value of the gold they contain, a
Finance Ministry spokesman said. The price will be calculated
daily, based on the daily gold fixing in London.
Belgium is minting an initial 50,000 gold coins to
celebrate the 30th anniversary of the European Community's
founding Treaty of Rome, but final production is expected to be
around 200,000. Each 17.27 gram coin will contain 55 grams of
fine metal.
Two mln silver coins, face value five Ecus, will be sold at
500 francs each.
| Financial Reports |
DATA ARCHITECTS INC <DRCH> 1ST QTR FEB 28 NET
| Shr 19 cts vs 14 cts
Net 487,000 vs 344,000
Revs 7,492,000 vs 5,883,000
| Corporate News |
PASSPORT TRAVEL INC <PPTI> 1ST QTR FEB 28 NET
| Shr two cts vs nil
Net 20,406 vs 2,348
Sales 6,191,000 vs 6,249,000
| Financial Reports |
comalco ltd 1986 net profit 57.1 mln dlrs vs loss 69.1 mln
|
comalco ltd 1986 net profit 57.1 mln dlrs vs loss 69.1 mln
| Financial Reports |
HI-SHEAR INDUSTRIES INC <HSI> 3RD QTR FEB 28 NET
| Oper shr 28 cts vs 33 cts
Oper net 1,647,000 vs 1,910,000
Revs 19.7 mln vs 17.5 mln
Nine mths
Oper shr 82 cts vs 84 cts
Oper net 4,787,000 vs 8,748,000
Revs 55.9 mln vs 53.0 mln
NOTE: Prior year net excludes tax credits of 29,000 dlrs in
quarter and 1,761,000 dlrs in nine mths.
Prior nine mths net includes gain from sale of real estate
of 3,820,000 dlrs.
| Financial Reports |
PRUDENTIAL RECORDS BEST RESULTS IN SIX YEARS
| <Prudential Corporation Plc>, which
earlier announced a 62 pct rise in 1986 pre-tax profits, said
it had recorded its best general insurance result for six years
but had not reached satisfactory levels of profit in other
areas.
Group Chief Executive Brian Corby told a news conference
that despite returning to trading profits, the International
division and the Mercantile and General division had not
reached satisfactory levels.
But he said he welcomed Mercantile and General trading
profits in 1986 and was optimistic about both that and the
International division.
The acquisition of the U.S. Life company <Jackson National>
had a small effect in 1986 but its full effect would be felt in
the 1987 results, Corby said.
The Group also intended to expand the number of its estate
agency firms bought last year, and hoped they will comprise
between 10 and 15 pct of total company profits in the future.
"We hope they will be very profitable very shortly. We are
looking for profits from the estate agencies themselves as well
as the insurance products associated with them," Corby said.
Prudential's pre-tax profits rose from 1985's 110.1 mln stg
to 178.1 mln stg in 1986.
| Other |
CRS SIRRINE <DA> TO TAKE WRITE-OFF
| CRS Sirrine Inc said it plans a major
restructuring of its balance sheet that will include a
write-off of between 39 mln and 43 mln dlrs, most of which
would be intangible goodwill from the company's past
acquisitions.
The company said the remainder of its write-off would
include a one-time expense for future costs related to early
retirement programs, office consolidations and an increase in
the general reserve for adjustments and contingencies.
Bruce Wilkinson, president of the company, said the charges
to the company's third quarter earnings, for the period ending
March 31, would "significantly impact" third quarter results
but would not affect the company's cash position.
"We expect to have the biggest operating backlog in the
company's history by June 30, 1987, the end of our fiscal
year," Wilkinson said. "We believe the action being proposed
will begin to contribute to improved earnings in the fourth
quarter of our fiscal 1987 and throughout fiscal 1988."
The company, which is one of the nation's largest
construction firms, also said termination of its defined
benefit retirement plan would produce a pre-tax benefit of
about 10 mln dlrs due to overfunding of the plan.
In its second quarter ended Dec. 31, CRSS had net earnings
of 800,000 dlrs on revenues of 82.5 mln dlrs.
| Financial Reports |
FLOWERS INDUSTRIES INC <FLO> 3RD QTR MARCH 7
| March 7 end
Shr 17 cts vs 23 cts
Net 3,998,000 vs 5,317,000
Sales 189.4 mln vs 159.6 mln
Nine mths
Shr 64 cts vs 68 cts
Net 14.9 ln vs 15.9 mln
Sales 540.9 mln vs 464.7 mln
NOTE: Twelve and 36-week periods.
| Financial Reports |
FLOWERS INDUSTRIES <FLO> SEES LOWER YEAR NET
| Flowers Industries Inc said it
expects lower earnings for the current year due to operating
losses incurred by recent acquisitions and possible
nonrecurring losses resulting from its restructuring efforts.
For the year ended June 28, Flowers earned 29.5 mln dlrs.
Today it reported nine month earnings of 14.9 mln dlrs, down
from 15.9 mln dlrs a year before.
Flowers said it expects fiscal 1988, however, to show the
best growth in profits in its history due to the growing
profitability of ongoing businesses, cost control efforts,
higher productvitiy and lower taxes.
Flowers said losses suffered in its West Texas operations
and in five plants acquired at the start of the third quarter
from <CFS Staley Continental> and <Wolf Baking Co> severely
hurt results.
It said the CFS and Wolf plants are expected to be
contributing to profit by the end of the fiscal year and it is
seeking to bring the West Texas operations to acceptable levels
of profitability by the end of the fourth quarter as well.
| Industrial and Sector News |
TECHNITROL INC <TNL> 4TH QTR
| Shr 54 cts vs 47 cts
Net 1.1 mln vs 941,000
REvs 8.9 mln vs 10.3 mln
Year
Shr 1.65 dlrs vs 1.64 dlrs
Net 3.3 mln vs 3.3 mln
Revs 37.4 mln vs 39.0 mln
| Corporate News |
COMALCO LTD <CMAC.S> 1986 NET
| Net profit 57.1 mln dlrs vs loss 69.1 mln.
Net is equity accounted
Pre-equity accounted net 39.90 mln dlrs vs loss 49.11 mln
Pre-equity shr profit 7.1 cents vs loss 8.7
Final div to be announced after July 1 vs first and final
1.0 cent.
Sales 1.88 billion vs 1.78 billion
Other income 52.75 mln vs 15.22 mln
Shrs 560.61 mln vs same.
NOTE - Net is after tax paid 46.85 mln dlrs vs credit 5.02
mln, interest 127.68 mln vs 117.19 mln, depreciation 109.29 mln
vs 100.73 mln and minorities 1.50 mln vs loss 331,000.
But net is before net extraordinary loss 140.5 mln vs nil.
Extraordinaries comprise exchange losses 102.9 mln, provision
for Goldendale smelter closure costs 27.3 mln and increase in
future tax provision 10.3 mln.
| Financial Reports |
ALCAN UPS ALUMINIUM INGOT AND BILLET PRICES
| Alcan Aluminium Ltd. in Montreal said
it increased yesterday its prices for unalloyed ingot and
extrusion billet by two cents a lb, effective with shipments
beginning May 1.
The new price for unalloyed ingot is 64.5 cents a lb while
the new price for extrusion billet is 72.5 cents a lb.
"We feel very confident about raising our prices because we
see demand over supply as being sustainable for some time,"
said Ian Rugeroni, Alcan's president of metal sales and
recycling - U.S.A.
Rugeroni said sheet and can bookings for Alcan aluminium
were up at a time when the company's total 1.1 mln tonne North
American smelter system had less than a week's supply.
"We're short and we're buying," he said.
Rugeroni added that Alcan expects the International Primary
Aluminum Institute to report a drop in total non-Socialist
stocks in February and March. He estimated supply in the latter
month will have fallen 100,000 to 150,000 tonnes, based in part
on current low inventories of aluminium in Japan and on the
London Metal Exchange.
| Other |
CORRECTED-HECLA <HL> TO BUY MINE STAKE FROM BP
| Hecla Minging Co said it
has agreed to purchase a 28 pct interest in the Greens Creek
Joint Venture from British Petroleum Co PLC's <BP> Amselco
Minerals Inc unit.
The venture expects to bring into production a
gold-silver-lead-zinc ore body on Admiralty Island, Alaska,
containing about 3,500,000 short tons of ore assaying about
0.18 ounce of gold, 24.0 ounces of silver, 9.7 pct zinc and 3.9
pct lead per short ton, Hecla said. It said there is
significant potential for the discovery of additional ore.
Corrects last assay result to lead from zinc.
| Financial Reports |
GENERAL NUTRITION INC <GNC> 4TH QTR NET
| Qtr ends Jan 31
Shr profit eight cts vs loss 38 cts
Net profit 2,466,000, vs loss 12,691,000
Revs 111.1 mln vs 106.8 mln
12 mths
Shr profit 20 cts vs loss 47 cts
Net profit 6,591,000 vs loss 15.5 mln
Revs 342.6 mln vs 370.4 mln
NOTE: includes provision for store closings of foreign
operations of 3,897,000 for 1986 qtr, and 1,403,000 for qtr
prior.
includes provision for store closing costs and unproductive
inventory of 1,000,000 for 1986 qtr, and 25.1 mln for qtr
prior.
| Other |
CP AIR, PACIFIC WESTERN AIRLINES SET NEW NAME
| <Pacific Western Airlines Corp>
said the airline resulting from the previously announced merger
of its Pacific Western Airlines Ltd unit and Canadian Pacific
Air Lines Ltd would be named Canadian Airlines International
Ltd, effective April 26.
Pacific Western said the two airlines' services and
schedules would also be integrated on April 26. It previously
appointed management for the new airline.
The new airline, Canada's second largest, will have 81
planes flying to 89 destinations in 13 countries.
Pacific Western recently acquired Canadian Pacific Airlines
for 300 mln dlrs from Canadian Pacific Ltd <CP>.
| Financial Reports |
DRAWDOWN SEEN IN U.S. DISTILLATE STOCKS
| Tonight's American Petroleum Institute
oil inventory report is expected to show another drawdown in
distillate stocks of between two and 7.5 mln barrels for the
week ending March 20, oil analysts and traders said.
They said they expect gasoline inventories to be depleted
by about one to four mln barrels.
Analysts were divided on the crude stocks. Some saw stocks
unchanged to as much as three mln barrels higher. Others said
stocks could be down one to five mln barrels. Crude throughput
volumes are expected to be unchanged to slightly higher or
lower than the week ended March 13, traders said.
The API recorded a 7.4 mln barrel stockdraw for U.S.
distillates in the week ended March 13. Analysts see another
draw reflecting historic seasonal trends.
For the week ended March 13, API reported gasoline stocks
down 2.9 mln barrels.
Those expecting a draw of as much as four mln barrels said
they are looking for fairly high consumption rates as the
spring and summer driving season gets underway this year,
because retail prices are still low compared to recent years.
U.S. crude oil stocks were reported down by 4.4 mln barrels
for the week ended March 13. Analysts are divided over the
outcome for last week because there is uncertainty about
whether throughput levels increased or decreased last week.
Some see crude stock levels unchanged to three mln barrels
higher, while others think inventories could be as much as five
mln barrels below the previous week.
The lower estimates are supported by the belief that crude
runs increased and imports fell.
The API reported crude runs 154,000 b/d higher for the week
ended March 13. Analysts are calling it unchanged to slightly
up or down for the week ended March 20.
Expectations for product stockdraws are already being
reflected in firmer prices, traders said. But if draws are at
the higher end of the estimated range, they added, the effect
will be bullish. Any stockbuild would be a negative factor,
they said.
Crude runs normally increase in March, and any decrease in
runs would be friendly to the market, said Peter Beutel of
Elders Energy Futures Inc.
| Financial Reports |
STERLING OUTLOOK CLOUDED BY TEST OF PARIS ACCORD
| The move by foreign exchange markets to
test the strength of the Paris currency accord has thrown into
question the near-term outlook for sterling, until recently one
of the main beneficiaries of the agreement, analysts said.
Since the six-nation accord last month, sterling has risen
sharply, adding almost five pct on its trade-weighted index.
While the accord effectively stifled dollar/yen and
dollar/mark movements, the markets turned their attention to
sterling as foreign investors rushed to take advantage of
relatively high U.K. Interest rates.
But analysts say the pound has been sidelined by the first
tentative test of the Paris accord seen yesterday.
The market now looks set sooner or later to push the dollar
down further in a test of the willingness of central banks to
intervene. Analysts say if the banks do not intervene
effectively, the Paris accord could collapse.
"On balance, sterling would be a net sufferer if G-6
collapses," Phillips and Drew analyst Stephen Lewis said.
He said sterling would lose out as markets turned their
attention to capital movements whereas previously they had been
restricted to looking only at the interest yield on currencies.
However, although most analysts and foreign exchange
dealers were forecasting a brief period of consolidation or
even retracement for sterling, none were expecting a very sharp
drop in the U.K. Currency.
Sterling remained supported by optimism on the U.K.
Political and economic outlook, firmer oil prices and
relatively high interest rates, they said.
Bullish sentiment on the U.K. Economic outlook has been
running especially high after last week's budget, seen as
popular both with the markets and with British voters.
Sterling was also supported by signs of a weakening in the
West German and Japanese economies, where growth for 1987 is
trailing behind the three pct forecast for the U.K.
Recent opinion polls showing Britain's ruling conservative
party ahead of opposition parties in popularity have also
supported the pound.
In addition, sterling has so far shrugged off two
half-point cuts in U.K. Bank base lending rates in less than
two weeks. A further half-point cut, widely expected in the
next week or so, has already been largely discounted.
U.K. Base rates, now running at 10 pct, are still
relatively high compared to other western countries, and
analysts said a further base rate cut to 9-1/2 pct was unlikely
to affect sterling.
Sterling today appeared resilient to the dollar's decline,
dropping only slightly on a cross-rate basis.
Worries about renewed turbulence in the foreign exchange
markets, however, were reflected in the U.K. Government bond
(gilt) market, where prices dropped by up to 5/16 point.
Until now foreign investor interest in the gilt market has
been one of the major reasons behind the rise in sterling.
Dealers said they expected the pound to hold quietly steady
for the next few days while the market awaits further
developments on the dollar and this Thursday's U.K. Current
account figures for February.
Market forecasts are for a deficit of around 250 mln stg
after January's small surplus.
| Financial Reports |
JAPAN'S UNEMPLOYMENT RATE SEEN RISING TO 3.5 PCT
| Japan's unemployment rate is expected to
continue to climb to about 3.5 pct within the next year from
January's three pct record, senior economists, including Susumu
Taketomi of Industrial Bank of Japan, said.
December's 2.9 pct was the previous worst level since the
government's Management and Coordination Agency began compiling
statistics under its current system in 1953.
"There is a general fear that we will become a country with
high unemployment," said Takashi Kiuchi, senior economist for
the Long-Term Credit Bank of Japan Ltd.
The government, which published the January unemployment
figures today, did not make any predictions.
"At present we do not have a forecast for the unemployment
rate this year, but it is difficult to foresee the situation
improving," a Labour Ministry official said.
Finance Minister Kiichi Miyazawa said the government had
expected the increase and had set aside money to help 300,000
people find jobs in fiscal 1987 beginning in April.
Prime Minister Yasuhiro Nakasone told a press conference
the record rate underlines the need to pass the 1987 budget
which has been held up by opposition to proposed tax reforms.
The yen's surge has caused layoffs in the mainstay steel
and shipbuilding industries. Other export-dependent industries,
such as cars and textiles, have laid off part-time employees
and ceased hiring, economists said.
Although the growing service industry sector has absorbed a
great number of workers the trend is starting to slow down,
said Koichi Tsukihara, Deputy General Manager of Sumitomo Bank
Ltd's economics department.
However, other economists disagreed, saying the service
sector would be able to hire workers no longer needed by the
manufacturing sector over the next five years.
The economists said the service sector should grow as the
government stimulates domestic demand under its program to
transform the economy away from exports.
Although Japanese unemployment rates appear lower than
those of other industrialised nations, methods for calculating
statistics make them difficult to compare, economists warned.
"The three pct figure could translate into a relatively
high figure if European methods were used," one economist said.
More than half of January's 170,000 increase in jobless from a
year earlier were those aged between 15 and 24, Sumitomo's
Tsukihara said.
| Commodities and Trade |
PLENUM PUBLISHING CORP <PLEN> 4TH QTR NET
| Shr 63 cts vs 45 cts
Net 3,623,067 vs 2,607,977
Gross income 10.1 mln vs 10.1 mln
Year
Shr 2.12 dlrs vs 1.74 dlrs
Net 12.2 mln vs 10.0 mln
Gross income 38.1 mln vs 36.8 mln
NOTE: Share adjusted for five-for-two stock split effective
yesterday.
Net includes gains on sale of securities pretax of
1,860,213 dlrs vs 392,975 dlrs in quarter 5,023,401 dlrs vs
3,223,008 dlrs in year.
| Financial Reports |
HONEYBEE INC <HBE> 4TH QTR NET
| Oper shr 11 cts vs five cts
Oper net 248,000 vs 122,000
Sales 7,269,000 vs 5,481,000
Year
Oper shr 55 cts vs 14 cts
Oper net 1,288,000 vs 333,000
Sales 26.2 mln vs 17.6 mln
NOTE: Net excludes discontinued operations nil vs gain
103,000 dlrs in quarter and losses 82,000 dlrs vs 50,000 dlrs
in year.
1986 year net excludes 133,000 dlr provision for loss on
disposal of discontinued operations.
| Commodities and Trade |
SCIENTIFIC MEASUREMENT SYSTEMS INC <SCMS> NET
| 2nd qtr Jan 31
Shr loss three cts vs loss seven cts
Net loss 352,000 vs loss 568,000
Revs 636,000 vs 640,000
Avg shrs 12.7 mln vs 8,377,000
1st half
Shr loss six cts vs loss 10 cts
Net loss 594,000 vs loss 865,000
Revs 1,245,000 vs 1,063,000
Avg shrs 10.5 mln vs 8,333,000
| Other |
EC MEMBER STATES COOL ON CEREAL PLANS
| European Community (EC) member states
have generally given a cool initial reaction to proposals by
the European Commission for cereal price changes and related
measures in the coming season, EC diplomats said.
They said that in meetings of the EC Special Committee on
Agriculture representatives of most member states had said the
changes, taken together, would have too harsh an impact on
farmers' incomes.
Only Britain and the Netherlands had shown willingness to
accept the commission's overall package, they said.
As well as cuts of over two pct in common prices for most
cereals, the commission proposes a limitation of intervention
to the February to March period and reduced monthly increments
in intervention prices.
EC Farm Ministers will have a first discussion of the
proposals at a meeting beginning next Monday.
| Industrial and Sector News |
PUBLIC SERVICE CO OF COLORADO <PSR> IN PAYOUT
| Qtly div 50 cts vs 50 cts prior
Pay May One
Record April 10
| Financial Reports |
CORRECTED - MANHATTAN NATIONAL CORP <MLC> 4TH
| Oper shr loss 20 cts vs loss 81 cts
Oper net loss 1,042,000 vs loss 4,077,000
Revs 38.5 mln vs 50.3 mln
12 mths
Oper shr loss six cts vs loss 43 cts
Oper net loss 336,000 vs loss 2,176,000
Revs 137.8 mln vs 209.1 mln
NOTE: In item moved March 23, company corrects its error to
show loss for current 12 mths and qtr, not profit.
| Financial Reports |
SYSTEMATICS INC <SYST> REGULAR PAYOUT
| Qtly div three cts vs three cts prior
Pay March 13
Record February 27
| Other |
SOUTH KOREAN TRADE SURPLUS NARROWS IN FEBRUARY
| South Korea's customs-cleared trade
surplus narrowed to 110 mln dlrs in February from 525 mln in
January, provisional trade ministry figures show.
In February 1986 there was a deficit of 264 mln dlrs.
February exports rose to 2.87 billion dlrs, fob, from 2.83
billion in January and 2.30 billion in February 1986. CIF
imports were 2.76 billion against 2.31 billion in January and
2.57 billion in February last year.
| Corporate News |
STANDARD CHARTERED BOOSTED BAD-DEBT PROVISIONS
| Standard Chartered Plc <STCH.L>, faced
with a recession in the key Singapore and Malaysian markets and
an ongoing depression in the shipping industry, boosted its
bad-debt provisions in 1986, chairman Lord Barber said.
Barber said in a statement on the bank's 1986 results that
bad and doubtful debt provisions, both general and specific,
stood at 545.6 mln stg against 416.6 mln at end-1985.
Bank figures showed the increase was almost exclusively in
the specific bad risk provision, which qualifies for U.K. Tax
breaks. New specific provisions rose by 111.5 mln stg while
71.2 mln stg were reallocated from the general risk provision.
In all, a 184.2 mln stg charge was made against profits for
1986, compared with a 100.7 mln stg charge in 1985. Total
pre-tax profits fell to 254 mln after 268 mln in 1985.
"The continuing serious recessionary conditions in Singapore
and Malaysia and the depressed condition of the shipping
industry made it necessary to provide heavily against bad and
doubtful debs arising from loans in the Asia Pacific region, on
top of the normal level of provisioning," Barber said.
He said, "the decision was also taken to build up loan loss
reeserves by making a sizeable increase in the charges for
general provisions for commercial and cross border risks."
Barber said due to bad-debt provisioning, the Asia Pacific
region made "a negligible contribution to pre-tax profits."
He said the profits contribution from the U.K. Businesses
was "well maintained, although the reported result was affected
by cross border debt provisioning," while Californian subsidiary
Union Bank "showed continued growth."
"Tropical Africa, Middle East and South Asia all turned in
excellent performances and the revival in Europe continued," he
said.
Barber said the group, which succesfully fought off a
takeover bid by Lloyds Bank <LLOY.L> last year, strengthened
its capital resources during that year to just over three
billion stg, while total assets increased to 32.2 billion.
Capital adequacy ratios remained strong, with the primary
capital ratio standing at 7.5 pct at end 1986, he said.
| Financial Reports |
COLOMBIA COFFEE REVENUE SHARPLY DOWN IN JAN/FEB
| Colombia's coffee export revenue dropped
97 mln dlrs to 233.6 mln dlrs for the first two months of the
year against 330.9 mln dlrs in the similar period of 1986,
central bank preliminary figures show.
Experts attributed the fall to lower world market prices
following the failure to re-introduce international coffee
export quotas, but they said Colombia could compensate the drop
with higher exports in calendar 1987.
Coffee export revenue for 1986 was 2.33 billion dlrs,
according to the bank.
Jorge Cardenas, manager of the National Coffee Growers'
Federation, last week estimated the recent drop of 30 cents a
lb in coffee prices would mean a net loss revenue of 457 mln
dlrs for Colombia.
But he stressed that Colombia, with stockpiles of 10 mln
(60-kg) bags, had the capacity to export more and would use a
recently-introduced more flexible marketing policy to do so.
| Corporate News |
STE FRANCAISE DES PETROLES BP <PBPF.PA> 1986 YEAR
| Net result breakeven (no profit or loss) vs breakeven
Operating loss 836 mln francs vs 654 mln
Net turnover 12.70 billion francs vs 24.34 billion
Sales of petroleum products 9.7 mln tonnes vs 10.6 mln
Note - Company said in a statement 1986 results were
affected by the sharp fall in crude oil prices. Net result
included an extraordinary recovery of 731 mln francs from
provisions for currency fluctuations and 361 mln francs in
depreciation of fixed assets. Company is a subsidiary of The
British Petroleum Co Plc <BP.L>.
| Financial Reports |
OLIVETTI DOES NOT EXCLUDE STAKE IN SGS-THOMSON
| Ing C Olivetti EC SpA <OLIV.M> does not
exclude the possibility of investing in a semiconductor venture
currently under discussion between Italy's <STET - Societa
Finanziaria Telefonica P.A.> and France's Thomson-CSF
<TCSF.PA>, an Olivetti spokesman said.
He said that if Olivetti were approached by the two
partners involved and the financial conditions of any proposal
were considered interesting, the company did not exclude the
possibility of investing in the venture. However, Olivetti had
made no decision on any such investment and did not have at its
disposal information to evaluate such a move.
Stet and Thomson said last Thursday they were negotiating
an accord involving their respective subsidiaries <SGS
Microelettronica SpA> and <Thomson Semiconducteurs> in the
civil semiconductor field.
They said the accord, once concluded, would be put for
approval to the French and Italian authorities.
The Olivetti spokesman was responding to a Reuters query
about Italian press reports today saying that Olivetti might
participate in the venture with a two pct stake.
| Financial Reports |
ENSERCH CORP <ENS> SETS QUARTERLY
| Qtly div 20 cts vs 20 cts prior
Pay June One
Record May 15
| Commodities and Trade |
NESTLE TO ACQUIRE NABISCO CANADA BUSINESSES
| Swiss-based <Nestle S.A.>'s Nestle
Enterprises Ltd unit said it signed a letter of intent to
acquire <Nabisco Brands Ltd>'s Club, Melrose, Dickson and Chase
and Sanborn businesses for undisclosed terms.
Nestle said the final agreement, subject to required
approvals, would be signed shortly.
The businesses involved in the deal provide products to
hotels, restaurants and other parts of the food and beverage
industry. Nabisco is 80 pct-owned by RJR Nabisco Inc <RJR>.
| Financial Reports |
FED'S HELLER SAYS HE WANTS TO SEE STRONGER JAPANESE DEMAND FOR AMERICAN GOODS
|
FED'S HELLER SAYS HE WANTS TO SEE STRONGER JAPANESE DEMAND FOR AMERICAN GOODS
| Financial Reports |
METROPOLITAN FINANCIAL CORP <MFC> VOTES PAYOUT
| Qtly div 11 cts vs 11 cts prior qtr
Pay 30 April
Record 15 April
| Financial Reports |
GOODYEAR <GT> UNIT TO START UP PIPELINE
| Goodyear Tire and Rubber Co said the All
American Pipeline of its Celeron Corp subsidiary will start
line fill activities on March 30 as it begins operating.
The company said about five mln barrels of oil will be
required to pack the completed segment of the line, which runs
1,225 miles from near Santa Barbara, Calif., to existing
pipeline connections in West Texas. Construction has also
staqrted this week on a 43-mile, 16-inch diameter gathering
line to deliver 75,000 to 100,000 barrels a day of oil from the
San Joaquin Valley in California. The 30-inch main underground
line can transport over 300,000 barrels daily.
| Financial Reports |
MICROSIZE INC <MSIZ> 2ND QTR ENDS FEB 28 NET
| Shr profit one cent vs loss 2.6 cts
Net profit 59,198 vs loss 132,702
Revs 634,616 vs 485,730
six mths
Shr profit one cent vs loss four cts
Net profit 49,669 vs loss 208,278
Revs 1,056,452 vs 944,330
| Corporate News |
<PAUL'S PLACE INC> CONTROL CHANGES
| Paul's Place Inc said chairman,
president and treasurer Paul D. Lambert has sold 240 mln common
shares to other board members, advisory board members Alan H.
Marcove and Gerald M. Marcove and an unaffiliated purchaser it
did not name.
Terms were not disclosed.
The company said Alan Marvoce has been named to replace
Lambert as chairman and chief executive officer and Michael T.
Fuller has been named president.
Fuller was formerly president of <Mr. Steak Inc>.
| Financial Reports |
CYACQ AMENDS CYCLOPS OFFER CONDITIONS, SAYS CITICORP EXPANDS FINANCING
|
CYACQ AMENDS CYCLOPS OFFER CONDITIONS, SAYS CITICORP EXPANDS FINANCING
| Financial Reports |
GORDON JEWELRY <GOR> COMPLETES SALE OF UNIT
| Gordon Jewelry Corp said it has
completed the previously-announced sale of the assets of its
catalog showroom stores to privately-held Carlisle Capital Corp
for an undisclosed amount of cash and notes in excess of book
value.
| Financial Reports |
FED'S HELLER URGES JAPANESE TO BUY U.S. GOODS
| A member of the Federal Reserve
Board, Robert Heller, said he wanted to see stronger Japanese
demand for American goods.
"What I was advocating here was more Japanese purchases of
American goods," Heller said in response to a question about the
dollar's weakness in currency markets.
He told a Heritage Foundation forum, "I'd be very happy to
see that."
In his formal remarks, Heller said he supported the idea of
using commodity prices as an indicator for monetary policy.
Asked if he would raise the issue at the next Federal Open
Market Committee meeting, he said, "Even at previous meetings
commodity prices were raised."
He added, "I would not expect future meetings to be
different from past meetings in that respect."
| Financial Reports |
TAJON RANCH CO <TRC> 4TH QTR NET
| Shr five cts vs nine cts
Net 560,000 vs 1,247,000
Revs 7,597,000 vs 4,619,000
Year
Shr ten cts vs 17 cts
Net 1,225,000 vs 2,161,000
Revs 26.5 mln vs 23.3 mln
| Corporate News |
CENTERIOR ENERGY CORP <CX> SETS QUARTERLY
| Qtly div 64 cts vs 64 cts prior
Pay May 15
Record April 16
| Financial Reports |
SUFFIELD FINANCIAL CORP <SFCP> RAISES QUARTERLY
| Qtly div five cts vs three cts prior
Pay April 10
Record March 31
| Corporate News |
CYACQ CUTS CONDITIONS ON CYCLOPS <CYL> BID
| Cyacq Corp, an investor group bidding
for Cyclops Corp, said it amended its outstanding 92.50 dlrs a
share tender offer for Cyclops to eliminate two conditions and
modify a third one.
The group, which includes Audio/Video Affiliates Inc and a
unit of Citicorp <CCI>, said it also obtained additional
financing commitments, including an increased commitment from
Citicorp Capital Investors Ltd.
The conditions that were eliminated are Cyacq's request for
non-public information about Cyclops that was previously
provided to Dixons Group PLC and Cyacq's being satisified that
the information provides an adequate basis for Cyclop's
published financial projections.
Cyclops has agreed to be acquired Dixons Group, which has a
90.25 dlrs a share tender offer for Cyclops outstanding. Dixons
said earlier it would allow the offer to expire tonight.
The condition that was modified, which required Cyacq to be
satisfied that break up fees or other obligations to Dixons
were rescinded or ineffective, now says Cyclops shall not have
paid any such fees or expenses to Dixons prior to the
consummation of Cyacq's offer.
Cyacq's amended offer expires midnight New York time on
April three, 1987, unless extended.
Manufacturers Hanover Trust Co and CIT Group/Business
Credit Inc increased its tender offer commitment to 197 mln
dlrs from 166 mln dlrs and its merger commitment to 275 mln
dlrs from 250 mln dlrs.
Additionally, the Citicorp unit and Audio/Video have
increased their commitments to Cyacq to 185 mln dlrs. Of the
new total, 150 mln dlrs has been committed by Citicorp.
Cyacq said it estimates that it needs 407.5 mln dlrs to buy
all Cyclops shares that may be tendered and pay related fees
and expenses.
It said it is seeking to arrange the balance of about 25.5
mln dlrs necessary to complete the offer.
All previously announced conditions regarding the lending
group led by Manufacturers Hanover remain in effect, except
that the loans are subject to the concurrent receipt by Cyacq
of equity contributions and other financing of not less than
210.5 mln dlrs for the tender offer facility and 213.5 mln dlrs
for the merger facility.
Cyacq also said the Citicorp unit had received no
indications of interest in an alternative offer it had made
from Dixons, Cyclops or Alleghany Corp <Y>, which has agreed to
acquire Cyclops' industrial group from Dixons.
Under the alternative offer, the Citicorp unit, with
Cyacq's approval, proposed to acquire the industrial group from
Dixons.
| Other |
TIN PACT EXTENSION LIKELY - ITC DELEGATES
| An extension of the sixth International
Tin Agreement, ITA, for one or two years beyond June 30 is
increasingly likely, International Tin Council, ITC, delegates
said following a special council session today.
A formal decision will be taken at the quarterly council
session on April 8-9 when decisions are needed on the budget
and activities for the year beginning July one, they stated.
Delegates said most countries now favour a continued legal
ITC presence to answer the still unresolved legal disputes over
the outstanding debts of its buffer stock with court hearings
likely to continue well after the June 30 expiry of the pact.
The ITC was informally told of the appeal made yesterday by
Amalgamated Metal Trading Ltd, AMT, against the January court
ruling against it in the legal bid it led on behalf of ITC
creditor brokers to have the ITC wound up.
In January the judge ruled that the U.K. Court had no
jurisdiction to wind up the tin council, the ITC was not an
association within the meaning of the U.K. Companies act, and
the winding-up petition was not a proceeding in respect in
respect of an arbitration award.
AMT is appealing on all points and has said it is important
for the court to accept that a winding-up petition is a move to
enforce an arbitration ruling.
| Other |
SIGMA RESEARCH ONC <SIGR> 2ND QTR DEC 31 LOSS
| Shr loss 27 cts vs profit one ct
Net loss 532,376 vs profit 15,584
Revs 1,899,719 vs 2,432,256
Six mths
Shr loss 78 cts vs profit two cts
Net loss 1,521,002 vs profit 30,145
Revs 3,235,907 vs 5,276,119
Note: year ago net includes gain from tax carryforwards of
5,000 dlrs in quarter and 9,000 dlrs in year.
| Other |
JAPAN MOVES TO TIGHTEN CHIP-EXPORT CURBS
| The Ministry of International Trade and
Industry (MITI) acted to tighten restrictions on microchip
exports to countries other than the U.S. To preserve a
U.S.-Japan pact on semiconductor trade, but major Japanese
chipmakers doubt its usefulness.
A MITI spokesman said his ministry had asked chipmakers to
issue certificates to specified trading houses stating they are
authorised exporters.
Trading houses applying for a MITI export licence will be
required to show such a certificate, but those without it will
not automatically be denied licences, he said.
But some industry officials predicted any government
measures were likely to have limited effect as long as the
world semiconductor market remained weak.
U.S. Government and industry officials have complained
repeatedly that Japanese chipmakers continue to sell at below
cost to third countries despite the July agreement.
Japanese firms and officials in turn argue the flow of
cheap chips to third countries is due to grey-market sales by
third-party brokers, who seek to profit from the gap between
low prices in Japan and higher prices based on production costs
and set for Japanese makers under the agreement.
The MITI spokesman said, "If the percentage of grey market
is increasing for one specific company, it suggests they are
distributing their products through their sales network knowing
they will be exported by some means. In that case we will ask
them what they are doing to reduce the figure."
MITI earlier asked makers to cut output of certain chips by
10 pct in first-quarter 1987, spokesmen for the firms said.
But they doubt the usefulness of the latest move. "As long
as there is a gap between prices set under the pact and market
prices, there will be people who want to exploit the gap to
make money," a Hitachi Ltd <HIT.T> spokesman said.
| Other |
KODAK <EK> TO CUT POLYESTER FIBER OPERATIONS
| Eastman Kodak Co said it will
reduce capacity and employment levels in two polyester fiber
operations of its Eastman Chemicals division.
A company spokesman said the company will take "some
writeoff" in connection with the action in the first quarter
and there will probably be a further "carryover" writeoff in
the second quarter. The writeoffs will cover the costs of
plants and equipment involved, as well as expenses connected
with the staff cuts.
Kodak said the division will discontinue production of
polyester partially-oriented filament yarn, or POY, at its
Carolina Eastman Co plant in Columbia, S.C., and will idle 100
mln pounds of older polyester staple fiber production capacity,
mostly in Columbia.
The company said about 350 jobs will be affected in
Columbia, most of which are now performed by contract workers,
and about 225 jobs at its Tennessee Eastman Co plant in
Kingsport, Tenn.
Kodak said part of the staff reduction will be achieved
through an enhanced voluntary separation and retirement plan
for employees of Carolina Eastman, Eastman Chemical Products
Inc and other Kodak units in Kingsport, except Holsten Defense
Corp. Most of the workforce reduction is expected to be
completed by April 30.
Kodak said depressed prices and poor financial performance
have led to the decision. It said about 50 mln pounds of POY
production will be shut down as a result of its exit from the
business. All Kodak POY production has been at Carolina Eastman
since last year.
The company said annual capacity for production of Kodel
polyester staple fiber will be reduced to 400 mln pounds from
500 mln due to lesser demand.
It said it will proceed with a previous decision to phase
in a new 100 mln pound staple fiber plant at Carolina Eastman.
Carolina Eastman employs about 1,350 and the Kingsport
units affected about 10,800.
The company spokesman later said the charges will be
insignificant and will have no impact on earnings estimates.
| Financial Reports |
HEAVY SIGNUP SEEN IN 1987 CORN PROGRAM - USDA
| With less than a week remaining to
enroll in the 1987 feedgrains program, Agriculture Department
officials said that final signup will probably exceed last
year's level of 85 pct.
Enrollment in USDA's basic acreage reduction program will
likely total close to 90 pct, Agricultural Stabilization and
Conservation Service, ASCS, officials said, with 50 to 70 pct
of the enrolling farmers also expected to sign up for the paid
land diversion program.
The signup period of the 1987 feedgrains program officially
ends at the close of the business day on March 30.
USDA will release its official signup report around April
15, an official said.
USDA personnel in the corn belt states of Iowa, Illinois,
and Indiana have been reporting heavy signup activity, an ASCS
official told Reuters.
A surge of acitivity is expected during this final week of
signup, the official said.
"A lot of farmers have been dragging their feet because
they were anticipating some changes in the program, but that
doesn't look very likely now," he said.
To enroll in the 1987 feedgrains program, farmers have to
set aside 20 pct of the program acreage base, and have the
option to idle an additional 15 pct under a paid land diversion
program.
| Financial Reports |
ILLINOIS CO-OP FUTURES DISSOLUTION VOTE SET
| The shareholders of Illinois
Cooperative Futures Co., the futures trading arm of many
Midwest farm cooperatives for more than 25 years, will vote
Wednesday on its possible dissolution.
The directors of the company called a special meeting and
recommended its dissolution last month, citing falling volume
and increasing costs.
Sources close to the organization told Reuters the pullout
of Growmark, Inc., which holds more than 70 pct of the capital
stock, led to the call for dissolution.
The possible demise of the cooperative has set clearing
houses scrambling for the trading business of the 85 regional
and local cooperatives that comprise its membership.
Ironically, it was Growmark, at that time a regional farm
cooperative with major river terminal elevators, that founded
Illinois Cooperative Futures on December 1, 1960.
But Growmark became affiliated last year with Archer
Daniels Midland of Decatur, Ill., and markets its grain through
a joint subsidiary of the two companies, ADM/Growmark.
With that relationship, Growmark no longer needs to trade
futures through the cooperative, said Tom Mulligan, president
of the co-op.
Membership in the company, which Mulligan termed a
cooperative of cooperatives, has declined from 99 in 1982. A
notable loss was AgriIndustries of Iowa, which became
affiliated with Cargill, Inc.
Illinois Co-op's other members include such regional
cooperatives as Indiana Grain, based in Indianapolis, Goldkist,
of Atlanta, Ga., Midstates in Toledo, Ohio, Farmland Industries
in Kansas City, Mo., Farmers Commodities, Des Moines, and
Harvest States in Minneapolis.
Some observors said the demise of Illinois Cooperative
Futures Co. is a serious blow to the cooperative system.
Instead of banding together, the individual cooperatives
are forced to go their own ways, said the floor manager of one
cash house at the Chicago Board of Trade.
Such a move would destroy the cohesiveness that gives farm
cooperatives an advantage in the market at a time that a few
major commercial companies are growing dominant, he said.
Don Hanes, vice president for communications with the
National Council of Farm Cooperatives, said 5,600 cooperatives
exist today, down from 6,700 five years ago.
"The period we've gone through in the past five years has
been quite a crunch," he said. "There's been a lot of
consolidation in the marketing co-ops."
One problem, he said, is the co-ops sell the grain to the
major commercials for export, rather than exporting it
themselves, losing potential profits.
But exporting grain requires heavy investments, and the
multi-million-dollar loss posted six years ago by Farmers
Export Co., a co-op set up to export grains, served "to make
folks gun-shy," Hanes said.
Mulligan said he believes the dissolution, if it is
approved, is a result of change in the futures industry rather
than a change in U.S. agricultural economics.
A grain dealer at one member co-op said the futures arm
"was a convenience, something that saved us a little bit of
money. (Its dissolution) will force us to change our way of
doing business."
"We're sorry to see the co-op go by the wayside," he said.
"But there are lot of people out there to do business with.
There are plenty of capable firms."
Steven W. Cavanaugh, vice president for grain marketing
with Indiana Grain, said he would prefer to trade futures
through a Chicago-based cooperative.
"In terms of clearing our business as a unit as opposed to
individuals, there would be economic savings," he said but
added, "The times change and with changing times, come
different opinions of what businesses ought to be around."
Cavanaugh said the possible demise of the futures arm had
nothing to do with its profitability. "I would guarantee you
that this company is not in trouble. It is a sound, healthy
organization."
In the year ended February 28, 1986, the Illinois
Cooperative reported income of 10.2 mln dlrs and members'
equity, or net worth, of 8.3 mln dlrs. The annual report for
the most recent year has not been filed.
Under the cooperative system, income from operations is
returned as "patronage refunds" to the members.
Income and refunds in the past five years have been
declining. In the year ended February 28, 1982, the co-op
reported income of 17.4 mln dlrs and patronage refunds of 17.0
mln dlrs. Patronage refunds in the year ended February 28,
1986, totalled 9.5 mln dlrs.
"You're dealing with substantially lower volume," Mulligan
said. "Lower volume translates into higher costs."
According to the company's 1986 annual report, Growmark
owns 90 pct of the preferred shares and four pct of the common
shares of Illinois Cooperative Futures Co.
Mulligan declined to speculate on how much of the capital
Growmark is entitled to. He said he could not determine the
figure unless the shareholders decide in favor of dissolution.
Equity is distributed according to each member's trading volume
and, as a result, changes from year to year.
However, Mulligan said the company could continue to meet
minimum capital requirements to trade futures even if Growmark
pulled out.
| Financial Reports |
CONRAC <CAX> SOARS FOLLOWING MARK IV <IV> BID
| Heavy buying by speculators boosted
Conrac Corp 7-7/8 to 29, higher than a 25-dlr-per-share cash
tender offer announced by Mark IV Industries Inc <IV>.
"It's a case of ChemLawn euphoria," said one arbitrageur,
referring to a recent hostile tender that began at 27 dlrs per
share and ended when ChemLawn Corp <CHEM> found a white knight
willing to bid 36.50 dlrs.
For Conrac, the arbitrageur said, 28 dlrs per share seemed
like an "appropriate price." Another said "it's too early to
project the outcome."
"The market is speaking for itself and saying the 25 dlr
offer is inadequate," the second arbitrageur said. But he added
it was hard to make a case for Conrac being worth much more
than the 29 dlrs where the shares traded today.
He noted the stock recently sold in the high teens and
there could be a downward risk of 10 dlrs or more if Conrac is
able to thwart Mark IV.
Conrac urged shareholders to take no action while its board
studies the offer and confers with advisers. Conrac said it
would make a recommendation by April 17.
A third arbitrageur noted Mark IV had been involved in
several takeovers previously and has proven itself to be a
determined bidder. "They're not beginners," he said.
Another said Conrac might have trouble if it tried to find
another buyer. "It's a hodge-podge of non-related businesses,"
he said. "There is only a small universe of people who would
want to own the company as it's presently structured."
Conrac is involved in video displays, computer software,
aircraft instruments, telephone answering machines, welding
equipment and other products.
"I'm telling retail clients to sell and leave the rest for
those who can take the risk," said Rudolph Hokanson, analyst at
Milwaukee Co.
He called the 25-dlr offer by Mark IV "fair value but on
the low side." "I don't think management was looking for a
buyer in any way before this offer," he said.
Hokanson said Conrac has conservative finances and has
developed a reputation for quality products that serve niche
markets. He said management has done a good job of turning
around the telephone answering machine business.
| Corporate News |
LASER PHOTONICS <LAZR> SELLS COMMON SHARES
| Laser Photonics Inc said it sold
615,385 shares of its common stock to investors for one mln
dlrs under a previously-announced agreement.
In connection with the investment, the company said it will
restructure its board. There will be eight members, three of
whom were designated by the new investors, the company said.
The group of investors include affiliates of <Radix
Organization Inc>, the company said.
Richard Gluch Jr resigned from the board. Joining the board
were Leonard Lichter, Pierre Schoenheimer and Roger Kirk, the
investors' designates, the company added.
Other members of the board are chairman Don Friedkin,
president and chief executive officer Mark Fukuhara, and Jay
Watnick, Ira Goldstein, Thurman Sasser and Michael Clinger.
| Other |
CROWLEY, MILNER AND CO<COM> 4TH QTR JAN 31 NET
| Shr 4.11 dlrs vs 3.51 dlrs
Net 2,091,000 vs 1,785,000
Sales 38.8 mln vs 34.3 mln
Year
Shr 3.42 dlrs vs 3.57 dlrs
Net 1,740,000 vs 1,815,000
Sales 113.0 mln vs 104.1 mln
Qtly div 25 cts vs 25 cts previously
Pay April 30
Record April 15
| Commodities and Trade |
CONRAC <CAX> URGES NO ACTION ON BID
| Conrac Corp said it is asking
shareholders to take no action on the 25-dlr-per-share tender
offer for all its shares launched this morning by Mark IV
Industries Inc <IV>.
The company said its board will study the offer with
financial and legal advisors and make a recommendation to
shareholders by April 17.
| Commodities and Trade |
<D'OR VAL MINES LTD> FINDS HIGH-GRADE ORDER
| D'Or Val Mines Ltd said a recent
drill hole from the surfrace has intersected high-grade ore in
a downdip extension of the Discovery Vein in its D'Or Val Mine
in northern Quebec.
The company said 42.3 feet of the hole graded 0.92 ounce
per short ton of gold, including a 17.5 foot section grading
2.17 ounces.
It said the zone is just below the projection of the
seventh level of the mine about 1,450 feet below the surface
and 820 feet west of the shaft.
D'Or Val said this find and other recent ones will make
substantial contributions to the mine's ore reserves and grade.
| Corporate News |
FINNISH UNEMPLOYMENT AT 6.7 PCT IN DECEMBER
| Finnish unemployment was 6.7 pct in
December last year compared with 6.8 pct in November and 6.1
pct in December 1985, the Central Statistical Office said.
It said 173,000 people were unemployed in December 1986,
174,000 in November and 157,000 in December 1985.
| Other |
BRAZILIAN SEAMEN SAY 14,000 NOW BACK AT WORK
| About 14,000 of Brazil's 40,000
seamen are now back at work after pay accords with 21 shipping
companies but the rest are still on strike, a spokesman at
strike headquarters said today.
The seamen began a national stoppage on February 27.
The spokesman, talking by telephone from Rio de Janeiro,
said 126 ships were strike-bound.
He added that because of resignations by many seamen there
were scarcely any crews left on 38 of these ships.
The seamen have settled in general for pay rises of 120 pct
with the 21 companies. Talks with the shipowners' association
Syndarma have been deadlocked over overtime.
While exports have been delayed by the strike, exporters
say the problems have been manageable.
"It hasn't been critical by any means," said a coffee trader
in Santos, who noted that coffee was still moving on foreign
ships.
Economic analysts added, however, that any delay to exports
served to aggravate Brazil's balance of payments crisis, which
last month prompted the government to suspend interest payments
on 68 billion dlrs of commercial debt.
| Financial Reports |
FED BUYS 500 MLN DLRS OF BILLS FOR CUSTOMER
| The Federal Reserve purchased about
500 mln dlrs of U.S. Treasury bills for a customer, a
spokeswoman said.
She said that the Fed bought bills maturing in June and
July, and on August 27 and September 10 for regular delivery
tomorrow.
Dealers said that Federal funds were trading at 6-1/8 pct
when the Fed announced the operation.
| Financial Reports |
PENN TRAFFIC CO <PNF> 4TH QTR JAN 31 NET
| Shr 33 cts vs 46 cts
Net 1,350,000 vs 1,886,000
Revs 150.1 mln vs 127.9 mln
Year
Shr 1.76 dlr vs 1.59 dlr
Net 7,300,000 vs 6,567,000
Revs 548 mln vs 510.5 mln
NOTE: First three quarters of 1986 have been restated to
reflect adoption in 4th qtr of new pension accounting procedure
which increased net income in first three qtrs 204,000 dlrs or
five cts per share. Procedure increased fourth qtr income
73,000 dlrs or two cts per share.
| Financial Reports |
CALUMET INDUSTRIES <CALI> SEES 2ND QTR LOSS
| Calumet Industries Inc said it expects
to report a loss from operations for its second quarter ending
March 31, despite a strong unit sales increase.
In the same year-ago period the company reported net income
of 366,953 dlrs, or 18 cts a share.
Chairman S. Mark Salvino said the expected loss is
primarily due to depressed product prices not recovering the
increasing cost of crude oil.
Salvino also said steadier crude prices and the reduced
rate of refinery production should increase product prices and
lead to a return to more normal profit margins.
He reported that the 23 mln dlr HydroCal II system under
construction at the company's refinery in Princeton, La., is on
schedule and production will begin early in fiscal 1988.
| Financial Reports |
BANKERS SEE SHARP RISE IN THAI FOREIGN RESERVES
| Thailand's improving economy will likely
cause foreign reserves to increase to at least five billion
dlrs by end-1987 from a record of nearly 4.2 billion at
end-February, private bankers said.
Bank of Thailand statistics show foreign reserves rose to
3.95 billion at end-January from 3.03 billion a year earlier.
Nimit Nonthapanthawat, chief economist at the <Bangkok Bank
Ltd>, said Thailand's strong export performance, its relatively
high interest rates, foreign participation in its stock market,
and growing foreign investment, especially from Japan,
contributed to the projected sharp rise.
Thai exports rose 19.4 pct in 1986 and are expected to
expand another 15 pct this year, bankers said.
A U.S. Embassy report said last month Thailand could
achieve five pct real gross domestic product growth in 1987, up
from a projection of 3.8 pct for 1986 and 3.7 pct in 1985.
Nonthapanthawat said if economic growth continues at its
current pace and oil prices and major currencies remain stable
the five billion 1987 reserves target can easily be reached.
Thailand calculates foreign reserves to include gold,
special drawing rights and convertible currencies. The target
is equivalent to five-and-a-half months' worth of imports.
| Commodities and Trade |
COCOA BUFFER STOCK ACCORD CLOSER, DELEGATES SAY
| The International Cocoa Organization
(ICCO) moved closer to an agreement on buffer stock rules, with
many delegates saying they expect to reach an accord by Friday.
"Everyone is convinced the buffer stock rules should be in
place by Friday so the buffer stock can be put into operation
Monday," a consumer delegate said. "The atmosphere is excellent."
Other delegates said the buffer stock might not be
operational by Monday but could be in place by around April 1,
if the rules are agreed by Friday.
A detailed package on how the buffer stock manager will buy
and sell cocoa was presented to a buffer stock working group
this afternoon -- a big step toward a "very interesting stage of
negotiations," delegates said.
The package, based on negotiating principles informally
agreed by delegates, has been forged bit by bit during
fortnight-long meetings by ICCO Executive Director Kobena
Erbynn and a small group of other delegates.
Producers, the European Community (EC) and consumers are
scheduled to consider the paper separately and then jointly
tomorrow.
Under the proposal, the buffer stock manager would buy
cocoa from origins or the second-hand market on an offer
system. He would alert the market via news agencies as to when
he wanted to buy cocoa and include shipment details and tonnage
desired, delegates said.
The manager would buy cocoa on a competitive basis, rather
than choosing the cheapest cocoa as before, giving preference
to ICCO member-country exporters. Standard price differentials
would be fixed for each origin, similar to golf handicaps, to
determine the relative competitiveness of offers of various
cocoas from different origins, they said.
The differentials could be reviewed at the request of a
member country or recommendation of the buffer stock manager,
the delegates said. Revision would be decided by a majority
vote of the ICCO council.
Buffer stock purchases from non-ICCO member countries would
not be allowed to exceed 10 pct of the total buffer stock, they
said.
The purchases would be limited to 5,000 tonnes of cocoa per
day and 20,000 tonnes per week, and could be bought in nearby,
intermediate and forward positions, they added.
One of the underlying ideas of the rules package is
"transparency," meaning virtually all the buffer stock manager's
market activities will be public and he will have as little
discretion as possible, delegates said.
After the tin market collapse in 1985, when the
International Tin Council buffer stock ran out of funds, cocoa
delegates are anxious to install safeguards in the cocoa market
mechanism, they said.
Earnest debate on the buffer stock proposal is expected to
begin late tomorrow, as delegations feel the pressure of the
approaching Friday deadline, when the ICCO meeting is due to
adjourn, delegates said.
The ICCO failed to agree buffer stock rules in January when
the new International Cocoa Agreement came into force. The
existing buffer stock of 100,000 tonnes of cocoa was frozen in
place with its bank balance of 250 mln dlrs -- both untouchable
until rules are agreed.
Though the current semi-annual council meeting is not the
last chance for delegates to cement buffer stock rules,
producers are keen to get the wheels of the market-stabilizing
mechanism turning to stem the decline in world prices,
delegates said.
| Corporate News |
FINANCIAL CORP <FIN> NOT HOLDING BUYOUT TALKS
| Financial Corp of America said
it is not holding discussions with anyone regarding a buyout of
the company.
But a spokeswoman pointed out that Financial Corp has said
publicly for nearly two years that in the company's view a
merger would be one method of increasing the company's capital.
"If an opportunity arises for us to strengthen our capital
position quickly we would be very open to it," the spokeswoman
said.
Financial Corp would need over one billion dlrs to bring
its regulatory net worth up to Federal Savings and Loan
Insurance Corp requirements, the spokeswoman said.
In addition, she said that the Federal Home Loan Bank
Board, in a letter dated January 26, 1987, stated that through
March 31, 1988 it will continue to support the company's
efforts to restructure its balance sheet, maintain profitable
operations and augment net worth.
| Commodities and Trade |
PDVSA INCOME ON OIL SALES FELL 45 PCT IN 1986
| The state oil company Petroeleos de
Venezuela ended 1986 with a decrease of 45 pct in income from
oil sales even though it surpassed its own export goal by
almost 100,000 barrels a day, Minister of Energy and Mines
Arturo Hernandez Grisanti said.
Speaking to a news conference following the PDVSA annual
assembly, Hernandez said PDVSA's income from oil sales had
dropped to 7.2 billion dlrs in 1986, down 45 pct from last
year's 13.3 billion.
Fiscal revenue from oil sales, which was estimated at 66
billion bolivares for 1986, totalled 43.5 billion, a drop of 34
pct which Hernandez said "had a very serious impact on
Venezuela."
PDVSA's export volume averaged 1.508 mln barrels a day, of
which 658,000 bpd were crude oil and 850,000 bpd refined
products.
The figure surpassed PDVSA's stated goal of 1.410 mln bpd
and the 1985 export volume of 1.371 mln bpd. But it was not
enough to cover the losses from a drop in the average price
from 25.88 dlrs per barrel in 1985 to 13.90 dlrs last year.
The 13.90 per barrel price for 1986 was 1.01 dlrs higher
than the figure originally announced by the Central Bank.
Hernandez said the increase had come from a new accounting
system which included the results of PDVSA's overseas refining
and marketing operations.
Consumption in Venezuela's internal market increased from
323,000 bpd in 1985 to 342,000 bpd last year. However,
Hernandez stressed that the government had managed to keep
gasoline sales almost constant at 164,000 bpd.
Exploration by PDVSA led to an increase of 675 mln barrels
in reserves of light and medium crudes, shifting the balance of
Venezuela's reserves away from heavy crude oil. The country's
production capacity at year-end 1986 was 2.562 mln bpd, of
which 1.420 mln are light and medium crudes, Hernandez said.
Venezuela's total proven reserves as of December 31, 1986
were 55.521 billion barrels, the fourth largest amount in the
world, Hernandez said.
| Financial Reports |
AMERICAN NETWORK INC <ANWI> DEC 31 YEAR NET
| Shr profit 16 cts vs loss 1.40 dlrs
Net profit 3,000,000 vs loss 6,570,000
Revs 91.7 mln vs 66.9 mln
Avg shrs 19,078,072 vs 4,708,896
Note: Current year net includes nine mln dlr net gain from
settlement of litigation.
| Corporate News |
SIGNET BANKING CORP REGULAR DIVIDEND
| Qtly div 31 cts vs 31 cts prior
Payable APril 22
Record April three
| Corporate News |
MOTT'S SUPER MARKETS INC <MSM> 4TH QTR JAN 3
| Shr loss 15 cts vs loss 1.12 dlrs
Net loss 414,331 vs loss 3.1 mln
Revs 73.8 mln vs 69.1 mln
Year
Shr loss 99 cts vs loss 1.69 dlr
Net loss 2.7 mln vs loss 4.7 mln
Revs 276.9 mln vs 290.1 mnln
| Financial Reports |
SWEDEN HAS CURRENT PAYMENTS SURPLUS IN 1986
| Sweden had a 1986 current balance of
payments surplus of 7.6 billion crowns compared with a deficit
of 10.1 billion the preceding year, according to preliminary
figures from the central bank.
The December current account had a 100 mln crowns deficit
against a yearago 200 mln deficit.December trade balance was
2.3 billion surplus against yearago two billion.
The trade balance showed a 1986 surplus of 33.2 billion
crowns compared with a 15.8 billion surplus in 1985, the bank
said .
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