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ALEXANDER'S <ALX> 2ND QTR FEB 7
| Shr 57 cts vs 72 cts
Net 2.7 mln vs 3.3 mln
Six months
Shr 45 cts vs 84 cts
Net 2.1 mln vs 3.8 mln
NOTE:1987 six months includes 790,000 dlr charge. 1986 six
months includes 679,000 net gain.
| Corporate News |
IMPERIAL OIL <IMO.A> TO FOCUS ON HIGHER PROFIT
| Imperial Oil Ltd, 70 pct owned by Exxon
Corp <XON>, will focus on maintaining its financial strength
and improving near-term earnings performance through operating
expense reductions and selective capital spending, the company
said in the annual report.
Imperial Oil said it expects to spend about 750 mln dlrs on
capital and exploration expenditures in 1987, compared to 648
mln dlrs in 1986 and 1.16 billion dlrs in 1985.
Imperial previously reported 1986 operating net profit fell
to 440 mln dlrs or 2.69 dlrs share from 694 mln dlrs or 4.27
dlrs share in the prior year.
Imperial Oil said the attention to earnings results from
the desire to pursue longer term growth opportunities should
the investment climate improve and the belief that low or
volatile crude oil prices could continue during the next
several years.
The company also said actions initiated during 1986 to
restructure and improve efficiency should continue to show
benefits in 1987.
During 1986, the company cut operating, administrative and
marketing expenses by 91 mln dlrs and reduced the number of
workers by 16 pct to 12,500.
Imperial chairman Arden Haynes said in the annual report
that it is too early to determine whether the recent upward
movement in international oil prices will be sustained.
"It is still a time for prudence and caution, and the
company's actions will continue to be based on the fundamentals
of market supply and demand," he said.
Haynes said prospects for the company's petroleum products
division are more promising than before, but are still
uncertain. Imperial's 1986 petroleum earnings rose to 174 mln
dlrs from 102 mln dlrs in 1985.
Haynes said more satisfactory product margins on its
petroleum products could result if demand recovers as it has in
the United States.
The company's chemicals business outlook is mixed, Haynes
said. Prospects for growth in petrochemical sales is good as
long as economic growth continues, but future large grain
surpluses could dampen fertilizer demand and maintain pressure
on prices.
Imperial's chemical business earned 17 mln dlrs in 1986,
compared to three mln dlrs in 1985.
| Financial Reports |
NORTHEAST UTILITIES <NU> YEAR
| Shr 2.78 dlrs vs 2.55 dlr
NEt 302.0 mln vs 271.6 mln
REvs 2.0 billion vs 2.1 billion
| Financial Reports |
CPC <CPC> TO SELL EUROPEAN BUSINESS
| CPC International Inc said it reached
an agreement in principle to sell its European corn wet milling
business to Agricola Finanziaria SpA, a member of the Ferruzzi
Group, for a price in excess of 600 mln dlrs.
The transaction is expected to be completed by September
30.
CPC said it expects no material gain or loss this year from
the transaction. But the effect of the deal on 1987 earnings
can be evaluated in full only when the definitive pacts are
completed, it said.
The long-term effect of the transaction on CPC's earnings
should be positive, it added, as it will allow capital
expenditures to be cut back and will reduce corporate and
divisional overheads as well as operating expenses in the
European business.
The sale is an important part of a restructuring announced
in November, CPC said.
Proceeds of the sale will be used to reduce debt incurred
in the purchase of the Arnold Foods and Old London specialty
baking businesses and the stock repurchase program that was
part of the restructuring.
As of December 31, CPC had bought about 15 mln of its
common shares, adjusted for a 2-for-1 split in January, for a
total cost of 621.8 mln dlrs, according to its 1986 annual
report.
In December, CPC acquired Arnold Foods and Old London for a
total of about 170 mln dlrs.
CPC had previously said it wanted to sell the European corn
wet milling business and use the proceeds to help reduce debt,
including that incurred under the share buyback.
In total, CPC has bought back about 16 mln shares of common
stock, adjusted for the split, it said today. In November it
authorized a buyback of 20 mln shares, adjusted for the split.
The buyback and the restructuring were triggered in
November, after companies controlled by Ronald Perelman,
chairman of Revlon Group Inc <REV>, acquired about 7.6 pct of
CPC's then outstanding stock.
In 1986, the European corn wet milling business had sales
of 914.1 mln dlrs, operating income before overheads of 68.8
mln dlrs and associated headquarters overhead costs of 19.7 mln
dlrs, according to CPC's 1986 annual report.
The businesses' assets were 645.7 mln dlrs in 1986, the
report said.
| Financial Reports |
MOBEX COMPLETES GRANT INDUSTRIES <GTX> TENDER
| Mobex Corp, a private building
product concern, said as of late yesterday it had accepted
about 2.3 mln shares or 98 pct of Grant Industries Inc under a
tender offer.
The 7.75 dlrs a share cash offer expired at 2000 EST
yesterday. Mobex said its Mobex Acquisition Corp unit accepted
2,316,940 shares of Grant common, or about 98 pct of the
2,369,799 shares presently outstanding, at the tender price.
| Commodities and Trade |
LEUCADIA NATIONAL CORP <LUK> 4TH QTR NET
| Shr 3.28 dlrs vs 22 cts
Shr diluted 2.99 dlrs vs 22 cts
Net 46.0 mln vs 3,328,000
Avg shrs 14.0 mln vs 15.2 mln
Year
Shr 5.41 dlrs vs 1.56 dlrs
Shr diluted 4.94 dlrs vs 1.50 dlrs
Net 78.2 mln vs 25.9 mln
Avg shrs 14.5 mln vs 15.1 mln
NOTE: earnings per share reflect the two-for-one split
effective January 6, 1987.
per share amounts are calculated after preferred stock
dividends.
Loss continuing operations for the qtr 1986, includes gains
of sale of investments in Enron Corp of 14 mln dlrs, and
associated companies of 4,189,000, less writedowns of
investments in National Intergroup Inc of 11.8 mln and BRAE
Corp of 15.6 mln.
| Corporate News |
TELECOM <TELE> COMPLETES SALE
| Telecom Plus INternational Inc
said it completed the sale of its 65 pct interest in Tel Plus
Communications Inc to Siemens Information Systems INc for about
173 mln dlrs.
Telecom received 107 mln dlrs at closing with the balance
to be paid in installments. Siemen said it will dispute various
matters in the financial statement issues and other matters, it
said.
| Other |
HAITI, CZECHOSLOVAKIA JOIN COCOA ORGANIZATION
| Haiti and Czechoslovakia have joined the
International Cocoa Organization (ICCO), bringing membership in
the United Nations charter body to 18 importing countries and
17 exporters, ICCO officials said.
Haiti has provisionally applied to the ICCO as an exporting
member, and accounts for 0.92 pct of world cocoa exports, they
said. Czechoslovakia joined as an importer.
| Financial Reports |
INTEGRATED RESOURCES INC <IRE> 4TH QTR NET
| Oper primary shr 1.03 dlr vs 2.55 dlrs
Oper diluted shr 94 cts vs 1.76 dlrs
Oper net 15.2 mln vs 23.4 mln
Revs 272.0 mln vs 232 mln
Avg shrs primary 7,625,000 vs 5,534,000
Avg shrs diluted 12.3 mln vs 10.3 mln
Year
Oper shr 1.06 dlr vs 3.17 dlrs
Oper net 39 mln vs 56.1 mln
Revs 830.2 mln vs 657.9 mln
Avg shrs 7,490,000 vs 5,557,000
NOTE: 1986 oper net excludes 10.4 mln dlrs for discontinued
operations.
1985 4th qtr excludes a loss of 4,570,000 dlrs and
6,330,000 dlrs, respectively, for discontinued operations.
1986 oper net excludes a 10.5 mln dlr or 1.40 dlr per shr
loss from early extinquishment of notes.
1986 and 1985 oper per share amounts are reported after
paying 31.0 mln dlrs and 38.5 mln dlrs, respectively, for
preferred stock dividends.
1986 and 1985 4th qtr per share amounts are reported after
paying 7,292,000 dlrs and 9,333,000 dlrs, respectively, for
preferred stock dividends.
1985's discontinued operations are restated.
| Financial Reports |
WEAN UNITED INC <WID> 4TH QTR
| Shr loss one dlr vs profit seven cts
Net loss 3.0 mln vs profit 349,000
Revs 35.6 mln vs 49.3 mln
Year
Shr loss 2.87 dlrs vs loss 2.71 dlrs
Net loss 8.4 mln vs loss 7.9 mln
Revs 140.3 mln vs 169.2 mln
NOTE:earnings reflect preferred dividend requirements, 1986
year includes one-time gain of 1.2 mln dlrs
| Commodities and Trade |
U.S. HOUSE PANEL EASES SOVIET EXPORT CONTROLS
| The U.S. House Foreign Affairs
Committee voted to ease restrictions on exports that are now
kept from shipment to Soviet-bloc countries but are no longer a
threat to U.S. national security.
The Democratic-controlled committee said the
administration's export control policies, which restrict
shipment of thousands of products, contributed to last year's
record 169 billion dlr U.S. trade deficit.
The committee said the legislation will cut government red
tape and make it easier for U.S. companies to compete with
foreign producers since many of the goods are readily available
from other countries.
Rep. Don Bonker, chairman of the International Economic
Policy subcommittee, said the unnecessary restrictions had cost
the U.S. 17 billion dlrs in exports a year.
"This is Congress' number one opportunity to attack the
trade deficit in a positive way by exporting more," the
Washington Democrat said.
The legislation would order the Commerce Department to lift
controls on 40 pct of goods on the restricted export list over
the next three years unless other countries agree to comparable
controls.
Most of these are of the least sophisticated type of
technology such as medical instruments.
It would also give the Commerce Department primary
authority to decide which exports will be permitted and limit
the Defense Department to an advisory role in reviewing
requests to export highly-sensitive technology.
| Corporate News |
U.S. EXPORTERS REPORT 200,000 TONNES CORN SWITCHED FROM UNKNOWN TO USSR FOR 1986/87
|
U.S. EXPORTERS REPORT 200,000 TONNES CORN SWITCHED FROM UNKNOWN TO USSR FOR 1986/87
| Industrial and Sector News |
BALDRIGE SAYS CHANGES NEEDED IN EXCHANGE RATES OF CURRENCIES PEGGED TO DOLLAR
|
BALDRIGE SAYS CHANGES NEEDED IN EXCHANGE RATES OF CURRENCIES PEGGED TO DOLLAR
| Commodities and Trade |
CHARTER CO 4TH QTR NET PROFIT 118.8 MLN DLRS VS LOSS 13 MLN DLRS
|
CHARTER CO 4TH QTR NET PROFIT 118.8 MLN DLRS VS LOSS 13 MLN DLRS
| Corporate News |
ALEXANDER'S <ALX> 2ND QTR ENDS FEB 27 NET
| Shr 57 cts vs 72 cts
Shr diluted 57 cts vs 66 cts
Net 2,699,000 vs 3,250,000
Revs 190.8 mln vs 195.9 mln
Six mths
Shr 45 cts vs 84 cts
Shr diluted 45 cts vs 79 cts
Net 2,092,000 vs 3,784,000
Revs 304.2 mln vs 304.6 mln
NOTE: includes a change in accounting for investment tax
credit of 1,408,000, or 31 cts per share, in six mths prior.
first qtr 1987 includes non-recurring charge of 1,488,000
for company's abandoning of its plan to convert to a limited
partnership.
| Other |
STANADYNE <STNA>, UNITED TECHNOLOGIES END TALKS
| Stanadyne Inc said it terminated
discussions about its proposed purchase of United Technologies
Corp's Diesel Systems <UTX> unit.
The reason was not disclosed.
| Other |
FISONS PLC <FISN.L> YEAR TO END-1986
| Shr 27.5p vs 24.3p
Div 3.95p vs 3.34p making 6.5p vs 5.5p
Pre-tax profit 85.1 mln stg vs 72.3 mln
Turnover 702.6 mln vs 646.7 mln
Tax 18.4 mln vs 15.2 mln
Finance charges 4.1 mln vs 5.4 mln
Minority interest 0.1 mln vs 0.5 mln
Extraordinary debit, being closure and restructuring costs
4.9 mln vs 3.7 mln
Operating profit includes -
Pharmaceutical 49.8 mln vs 39.0 mln
Scientific equipment 23.2 mln vs 19.2 mln
Horticulture 8.0 mln vs 8.7 mln
Note - company said it plans one-for-one capitalisation
| Corporate News |
CITICORP <CCI> RULES OUT CREDIT CARD PRICE WAR
| American Express Co's <AXP> recent
launch of a new "OPTIMA" credit card, with relatively low
interest rates and fees, will increase competition with bank
credit-card issuers but will not lead to a pricing war, a
senior Citicorp offical said.
"Over the next two to three years, a very interesting
marketing battle will be fought ... competition will not be on
price but on product features," Pei-yuan Chia, head of the U.S.
card products group, told a banking analysts meeting.
Citicorp is the leading U.S. bank credit-card issuer, with
some 10 mln accounts and an 11 pct market share.
Chia said that Citicorp would focus its credit card
marketing efforts on acceptance, noting that Visa and
Mastercard currently enjoy a two-to-one advantage over American
Express in terms of worldwide acceptance.
He also doubted the popularity of American Express' plan to
link interest charges on the new OPTIMA card to the bank prime
lending rate. "The consumer likes to have a fixed rate
instrument," he said.
Richard Braddock, head of the whole individual banking
division, added that when there is increased competition, "it
is not the big people who get crunched but the small ones."
| Financial Reports |
NEW PROCESS CO <NOZ> SETS QTLY PAYOUT
| New Process Co said it declared a
quarterly dividend of 12-1/2 cts, the regular dividend it pays
during the first three quarters of the year.
The dividend is payable May 1 to shareholders of record
April 10.
Last year, New Process paid an annual dividend of 1.18 dlrs
by paying 12-1/2 cts a share in each of the first three
quarters and a fourth quarter dividend of 80-1/2 cts.
| Financial Reports |
USDA REPORTS CORN SWITCHED TO USSR
| The U.S. Agriculture Department said
private U.S. exporters reported 200,000 tonnes of corn
previously to unknown destinations have been switched to the
Soviet Union.
The corn is for delivery during the 1986/87 marketing year
and under the fourth year of the U.S.-USSR Long Term Grain
Supply Agreement.
The marketing year for began September 1.
Sales of corn to the USSR for delivery during the fourth
year of the agreement -- which began October 1, 1986 -- now
total 2,600,000 tonnes, it said.
In the third agreement year sales totaled 6,960,700 tonnes
-- 152,600 tonnes of wheat and 6,808,100 tonnes of corn.
| Financial Reports |
PETROLEUM EQUIPMENT TOOLS CO <PTCO> 4TH QTR
| Shr loss 57 cts vs loss 30 cts
Net loss 5.9 mln vs loss 3.2 mln
Revs 5.6 mln vs 16.3 mln
Year
Shr loss 2.11 dlrs vs loss 95 cts
Net loss 22.0 mln vs loss 9.9 mln
Revs 29.3 mln vs 66.3 mln
| Financial Reports |
SUNDOR GROUP BUYS DWG <DWG> UNIT'S ASSETS
| <Sundor Group Inc> said it
purchased DWG Corp's Texun Inc's line of regional juice
products.
The purchase terms were not disclosed, the company said.
| Corporate News |
QUICK AND REILLY GROUP <BQR> 4TH QTR FEB 28
| Shr 72 cts vs 57 cts
Net 4.5 mln vs 3.6 mln
Revs 25.1 mln vs 21.9 mln
Year
Shr 2.47 dlrs vs 1.87 dlr
Net 15.6 mln vs 11.8 mln
Revs 89.1 mln vs 73.3 mln
| Financial Reports |
HAYES-ALBION <HAY> COMPLETES GOING PRIVATE DEAL
| Hayes-Albion Corp said its shareholders
approved a plan to merge with and become a wholly onwed
subsidiary of privately held Harvard Industries Inc.
St. Louis-based Harvard Industries, a manufacturer and
distributor of automobile supplies, held 80 pct of Hayes
following completion of a 13 dlrs a share cash tender offer in
December.
Under the merger agreement, remaining shareholders of
Hayes, a Jackson, Mich.-based maker of auto supplies, will
receive 13 dlrs cash for their shares.
Trading in Hayes common will cease at the close of business
today, the company said.
| Corporate News |
CHARTER CO <QCHR> 4TH QTR OPER LOSS
| Oper shr loss one ct vs loss four cts
Oper net loss 336,000 vs profit 2,631,000
Revs 237.2 mln vs 382.3 mln
Avg shrs 47.4 mln vs 16.5 mln
Year
Oper shr profit 21 cts vs profit 12 cts
Oper profit 9,922,000 vs profit 15.1 mln
Revs 1.1 billion vs 1.6 billion
Avg shrs 47.4 mln vs 16.5 mln
NOTE: 1986 4th qtr and year oper net excludes a gain of
28.6 mln dlrs and 28.5 mln dlrs or 60 cts per share,
respectively, for discontinued operations.
1986 4th qtr and year oper net excludes a gain of 90.5 mln
dlrs or 1.91 dlr per share and 114.8 mln dlrs or 2.42 dlrs per
share, respectively, mainly for settlement of dioxin-related
claims in reorganization proceedings.
1985 4th qtr and year oper net excludes a loss of 41.2 mln
dlrs or 2.51 dlrs per share and a loss of 36.3 mln dlrs or 2.21
dlrs per share, respectively, for discontinued operations.
1985 4th qtr and year oper net excludes a gain of 25.6 mln
dlrs or 1.56 dlr per share and 29.4 mln dlrs or 1.79 dlrs per
share for settlement of claims and utilization of tax loss
carryforward.
1985 year oper net also excludes a loss of seven mln dlrs
for change in inventory evaluation method.
| Financial Reports |
CHAMPION PRODUCTS <CH> APPROVES STOCK SPLIT
| Champion Products Inc said its
board of directors approved a two-for-one stock split of its
common shares for shareholders of record as of April 1, 1987.
The company also said its board voted to recommend to
shareholders at the annual meeting April 23 an increase in the
authorized capital stock from five mln to 25 mln shares.
| Financial Reports |
MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO THREE PCT - CREDIT SUISSE
|
MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO THREE PCT - CREDIT SUISSE
| Corporate News |
NUMEREX CORP <NMRX> 2ND QTR JAN 31 LOSS
| Shr loss seven cts vs profit five cts
Net loss 149,421 vs profit 103,120
Sales 1,698,345 vs 1,920,010
Six Mths
Shr loss five cts vs profit nine cts
Net loss 100,472 vs profit 191,614
Sales 3,836,794 vs 3,650,322
| Corporate News |
BALDRIGE SUPPORTS NIC TALKS ON CURRENCIES
| Commerce Secretary Malcolm Baldrige
said he supported efforts to persuade newly-industrialized
countries (NICS) to revalue currencies that are tied to the
dollar in order to help the United States cut its massive trade
deficit.
"We do need to do something with those currencies or we
will be substituting Japanese products for Taiwanese products,"
or those of other nations with currencies tied to the dollar,
Baldrige told a House banking subcommittee.
The U.S. dollar has declined in value against the Yen and
European currencies, but has changed very little against the
currencies of some developing countries such as South Korea and
Taiwan because they are linked to the value of the dollar.
As a result, efforts to reduce the value of the dollar over
the past year and a half have done little to improve the trade
deficits with those countries.
Baldrige told a House Banking subcommittee that the
Treasury Department was attempting to persuade those countries
to reach agreement with the United States on exchange rates.
| Financial Reports |
CORRECTED - MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO 3-1/4 PCT - CREDIT SUISSE
|
CORRECTED - MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO 3-1/4 PCT - CREDIT SUISSE
| Financial Reports |
EASTMAN KODAK CO TO SELL HOLDINGS IN ICN PHARMACEUTICALS AND VIRATEK INC
|
EASTMAN KODAK CO TO SELL HOLDINGS IN ICN PHARMACEUTICALS AND VIRATEK INC
| Commodities and Trade |
TREASURY BALANCES AT FED ROSE ON MARCH 23
| Treasury balances at the Federal
Reserve rose on March 23 to 3.332 billion dlrs from 3.062
billion dlrs on the previous business day, the Treasury said in
its latest budget statement.
Balances in tax and loan note accounts fell to 15.513
billion dlrs from 17.257 billion dlrs on the same respective
days.
The Treasury's operating cash balance totaled 18.845
billion dlrs on March 23 compared with 20.318 billion dlrs on
March 20.
| Financial Reports |
USX <X> USS UNIT RAISES PRICES
| USX Corp's USS subsidiary said
that effective with shipments beginning July 1 prices for all
leaded grades and 1200-series grades of hot rolled bar and
semi-finished products from its Lorain, Ohio, facility will be
increased by 15 dlrs a ton over the prices in effect June 1.
It said the increase is being made to reflect current
market conditions.
| Market and Economy |
UNIONIST URGES RETALIATION AGAINST JAPAN
| William Bywater, president of the
International Union of Electronic Workers, called on President
Reagan to retaliate against Japan for unfair practices in
semiconductor trade.
He said in a statement a crash program was needed in the
semiconductor industry to prevent the United States from
becoming "one of the world's industrial lightweights."
Bywater's remarks came as the White House Economic Policy
Council prepared for a Thursday meeting to decide what
sanctions if any should be taken against Japan for alleged
violations of a U.S.-Japanese semiconductors agreement.
The pact, agreed to last July, called for Tokyo to end
selling semiconductors at below cost and to open its home
market to U.S. goods. In return, Washington agreed to forego
antidumping duties on Japanese semiconductors.
But U.S. officials have said that while Japan has stopped
dumping in the U.S. market, it has not ended third country
dumping; nor has it opened its market to U.S. semiconductors.
Japan yesterday, in an effort to ward off U.S. action,
ordered a cutback in semiconductors production as a way to
force prices up and end the dumping.
Bywater, in his statement, said he backed a Defense Science
Board task force proposal to set up a consortium to develop new
electronic products and manufacturing processes and make the
U.S. industory more competitive.
But he added the industry could not wait for legislation to
pass and that action was required now to help the depressed
electronic industry.
Bywater said, "I urge the Reagan Administration to take full
and severe action immediately against Japan by invoking the
retaliatory steps that are permitted under U.S. law and GATT
(General Agreement on Tariffs and Trade)."
| Other |
ZAIRE AUTHORIZED TO BUY PL 480 RICE - USDA
| Zaire has been authorized to
purchase about 30,000 tonnes of U.S. rice under an existing PL
480 agreement, the U.S. Agriculture Department said.
It may buy the rice, valued at 5.5 mln dlrs, between March
31 and August 31, 1987, and ship it from U.S. ports by
September 30, the department said.
The purchase authorization covers the entire quantity of
rice provided under the agreement.
| Other |
MIDIVEST ACQUIRES ASSETS OF BUSINESS AVIATION
| <Midivest Inc> said it acquired
all the assets of <Business Aviation Inc> of Sioux Falls, S.D.,
for an undisclosed amount of stock.
Midivest said it expects to sell 10 to 20 of the renovated
Beechcraft planes next year. It said management will also lease
these airborne intensive care units to hospitals and government
subdivisions through Metropolitan Leasing, a wholly-owned
subsidiary of Midivest.
| Corporate News |
U.S. WHEAT CREDITS FOR JORDAN SWITCHED
| The Commodity Credit Corporation
(CCC) has switched 25.0 mln dlrs in wheat credit guarantees to
Jordan under the Export Credit Guarantee Program to the
Intermediate Export Credit Guarantee Program, the U.S.
Agriculture Department said.
The switch reduces the total value of GSM-102 guarantees
for the current fiscal year to 30.0 mln dlrs.
The credit terms extended for export sales under the
Intermediate Export Credit Guarantee Program (GSM-103) must be
in excess of three years but not more than seven years.
All sales must be registered and exports completed by
September 30, 1987, the department said.
| Other |
DOLLAR EXPECTED TO FALL DESPITE INTERVENTION
| Central bank intervention in the
foreign exchange markets succeeded in staunching the dollar's
losses today, but senior dealers here believe the U.S. currency
is headed for a further retreat.
Although the intervention was widespread, dealers perceive
that the six major industrial nations have differing levels of
commitment to their recent accord to stabilize currencies.
Moreover, hard economic realities hold greater sway over
the currency market than central bank intervention and these
argue for a further dollar decline, dealers said.
"The market can be bigger than the central banks. And
economic fundamentals will always come to the fore," said a
dealer at one major U.S. bank.
As the dollar dropped to post-World War II lows against the
yen today foreign exchange traders said the Bank of Japan,
Federal Reserve Board and Bank of England intervened in the
markets on behalf of the U.S. currency.
Reports of the authorities' actions helped the dollar
recover to about 149.45 yen in New York this afternoon from
the post-war low of 148.20 yen in the Far East. But it still
failed to regain Monday's U.S. closing level of 150.00/05 yen.
Tokyo dealers said the Bank of Japan bought one to 1.5
billion dlrs in Tokyo today and may also have purchased dollars
yesterday in the U.S. via the Federal Reserve.
Meanwhile, there were strong rumors in New York that the
Fed also bought a modest amount of dollars around 148.50 yen
today. Talk also circulated that the Bank of England purchased
a small amount of dollars for yen.
The Fed's last confirmed intervention was on January 28
when it bought 50 mln dlrs in coordination with the Bank of
Japan. But on March 11 the Fed also was rumored to have
signalled displeasure with a dollar surge above 1.87 marks.
The authorities' actions appeared to back up the February
22 Paris pact between the U.S., Japan, West Germany, Britain,
France and Canada under which the nations agreed to cooperate
to foster exchange rate stability around prevailing levels.
But foreign exchange dealers were not overly impressed by
the authorities' intervention which they said can only soften
extreme moves in the market.
For one thing, some dealers believed that the Fed's
purchases were done on behalf of the Bank of Japan rather than
for the U.S. central bank's own account, suggesting a rather
watered-down American commitment to the currency accord.
The Bank of England's action also was thought to be
completed on behalf of the Japanese central bank, reinforcing
the market's view that Japan is the most resolute of the six
nations in its support of the currency pact.
"No-one doubts the Bank of Japan is serious. But the other
two central banks seem to be making more token gestures than
anything else," said Chris Bourdain of BankAmerica Corp.
"I'm not convinced the intervention was concerted," said
Earl Johnson of Harris Trust and Savings Bank in Chicago.
"It's a yen problem more than anything else."
Some dealers said a rising wave of trade protectionist
sentiment in the U.S. limits the extent to which the American
authorities can endorse a stronger dollar against the yen.
"The dollar's break below the key 150 yen level ties the
Treasury's hands behind its back. The U.S. cannot intervene on
its own account because of the strength of protectionism here,"
said Albert Soria of Swiss Bank Corp.
Such comments reflect the view that the currency markets
are becoming increasingly politicized. Despite official
denials, some traders still feel the U.S. would countenance a
lower dollar to help trim the nation's trade deficit.
The majority of the 170 billion dlr merchandise trade
deficit in 1986 was with Japan.
Indeed U.S. Treasury secretary James Baker's comment on
Sunday that the February currency pact had not established
dollar targets was read by the market as a signal to sell the
U.S. currency and kicked off the latest retreat.
"The dollar still has more room on the downside against the
yen based on the frictions in trade and financial services. The
currency market is becoming very political," said Natsuo Okada
of Sumitomo Bank Ltd.
Okada expects the dollar to trade between 148 and 150 yen
this week but sees the chance of a drop to 140 yen by the end
of April or early May.
Even if West Germany and Japan succeed in stimulating their
economies, it may not be enough to solve structural economic
imbalances in the near future, dealers said.
"Even if Japan and West Germany do expand this year, it
won't be enough to help the trade situation much," said
Bourdain of BankAmerica, who also expects the dollar to drop to
148 yen in the next couple of days.
| Financial Reports |
EASTMAN KODAK <EK> TO SELL HOLDINGS
| Eastman Kodak Co said it plans
to sell its 2.3 pct holding in ICN Pharmaceuticals <ICN> and
part of its nine pct holdings in Viratek <VIRA>.
It said the purpose of the investments had been to lay the
groundwork for the creation of its Nucleic Acid Research
Institute.
Since that has been achieved, there is no longer any reason
to maintain the equity positions, Kodak said.
Kodak holds 470,000 sahres of ICN, currently trading at
about 18-3/4 and 700,000 of Viratek, trading at 44.
| Corporate News |
FIRM REDUCES SCEPTRE RESOURCES <SRL> HOLDINGS
| Montreal-based Noverco Inc told the
Securities and Exchange Commission it reduced its stake in
Sceptre Resources Ltd to 1,232,200 shares or 4.8 pct of the
total outstanding.
Noverco said it sold off 400,500 shares "to reduce the
investment of Noverco in Sceptre."
"Additional common shares of Sceptre may be sold or
purchased by Noverco, depending upon market conditions," Noverco
said.
| Corporate News |
<ACKLANDS LTD> 1ST QTR FEB 28 NET
| Shr three cts vs 11 cts
Net 126,000 vs 434,000
Revs 84.0 mln vs 80.2 mln
Avg shrs 4,948,731 vs 3,870,511
| Commodities and Trade |
PHILIPPINE PLANNING CHIEF URGES PESO DEVALUATION
| The Philippines must devalue the peso if
it wants its exports to remain competitive, Economic Planning
Secretary Solita Monsod told Reuters.
"The peso/dollar rate has to be undercut to make our exports
more competitive," Monsod said an interview. "No question about
it. I'm saying you cannot argue with success. Taiwan, South
Korea, West Germany, Japan, all those miracle economies
deliberately undervalued their currencies."
The peso has been free-floating since June 1984. It is
currently at about 20.50 to the U.S. Dollar.
Finance Secretary Jaime Ongpin has said the government does
not intend to devalue the peso and wants it to be flexible and
able to continue to respond to market conditions.
Monsod said Ongpin was looking at the exchange rate from
the point of view of finance. "If the dollar rate goes higher,
our debt service in terms of pesos gets higher, so the
financing is very difficult," she said. "But I am looking at it
in terms of the economy."
She said she was not trying to oppose official policy.
"I'm just saying, keep it competitive. I do not want it to
become uncompetitive because then we are dead."
Monsod said, "The ideal movement in the peso/dollar rate is
a movement that will reflect differences in inflation (rates)
of the Philippines versus the other country. It's an arithmetic
thing."
Official figures show Philippine inflation averaged 0.8 pct
in calendar 1986. Ongpin told reporters on Saturday it was
expected to touch five pct this year.
He said the government and the International Monetary Fund
had set the peso/dollar 1987 target rate at 20.80.
The peso lost 22.2 pct in value to slump to 18.002 to the
dollar when it was floated in 1984.
| Corporate News |
BULL AND BEAR GROUP A <BNBGA> CUTS FUND PAYOUTS
| Bull and Bear Group A said it lowered
its monthly dividends on three of its funds.
It said it lowered its Tax Free Income Fund <BLTFX> to 10.3
cts from 10.6 cts; its U.S. Government Guaranteed Securities
Fund <BBUSX> to 11.5 cts from 11.8 cts; and its High Yield Fund
<BULHX> to 14 cts from 14.2 cts.
All dividends are payable March 31 to shareholders of
record March 25, the company said.
| Commodities and Trade |
CALTEX TO RAISE BAHRAIN OIL PRODUCT PRICES
| Caltex Petroleum Corp said it will
raise
posted prices for naphtha and several grades of residual fuel
in Bahrain, effective March 25.
Caltex, a joint venture of Chevron Corp <CHV> and Texaco
INC <TX>, said its naphtha posting is up four cts a gallon to
43 cts. It said it is raising its marine diesel oil posting by
30 cts a barrel to 20.24 dlrs a barrel.
Light, medium, and heavy fuel oil postings are up 1.50 dlrs
a barrel, the company said. This will bring the light fuel oil
price to 16.90 dlrs, medium to 15.50 dlrs, and heavy to 14.60
dlrs, the company said.
| Corporate News |
CHARTER CO <QCHR> TO COMPLETE REORGANIZATION
| Charter Co, the huge
petrochemical concern in bankruptcy proceedings stemming from
hundreds of dioxin-related claims, said it and all of its
subsidiaries, except the Independent Petrochemical Corp, will
complete their reorganization on March 31.
It said that on that date, it will deposit with an escrow
agent 288.8 mln dlrs in cash, 66.7 mln dlrs in notes and 31 mln
shares of its common for distribution.
Company officials were not immediately available for
comment.
As previously reported, Charter settled dioxin-related
claims for about 1,200 individuals and the state of Missouri,
resolving claims against it and all subsidiaries except
Independent Petrochemical.
Charter said some of the settlements remain subject to
appeals and final court approvals and resolve claims against
charter and its subsidiaries except Independent Petrochemical.
It said about 500 individual claims against it and certain
of its units remain pending as disputed claims in bankruptcy
court. It said about 300 of these claims have been filed since
confirmation of the joint plan of reorganization.
Charter said its two creditors, an equity committee in its
bankruptcy proceedings and <American Financial Corp>, which
will own 50.5 pct of its common after the reorganization, have
waived the requirement that Charter resolve all dioxin-related
claims against it prior to completing its reorganization.
That requirement excludes claims against Independent
Petrochemical. Charter also said a plan for liquidation of
Independent has been approved by the bankruptcy court and will
be completed after March 31.
Earlier, Charter reported net income for the year of 153.2
mln dlrs, which included a gain of 28.5 mln dlrs for
discontinued operations and 114.8 mln dlrs for the settlement
of claims in its reorganization proceedings.
In 1985, it reported earnings of 1,274,000 dlrs, which
included a loss of 36.3 mln dlrs for discontinued operations
and 29.4 mln dlrs for extraordinary items.
For the fourth quarter, it reported earnings of 118.8 mln
dlrs, including a gain of 28.6 mln dlrs for discontinued
operations and 90.5 mln dlrs mainly for claims settlements. In
the year-ago period, Charter reported a loss of 13 mln dlrs.
| Commodities and Trade |
NASHUA <NSH> TO PURCHASE PRIVATE DISC MAKER
| Nashua Corp said it signed a
letter of intent to purchase <Lin Data Corp>, a private
manufacturer of high-capacity rigid discs for storage of
computer data.
Under the terms of the letter, Nashua said it will acquire
all classes of Lin stock for 24 mln dlrs. In addition, it said
it will loan Lin 1,200,000 dlrs to support its operations.
The closing of the sale is set for the second quarter of
1987, the company said.
| Corporate News |
ALTRON INC <ALRN> 4TH QTR JAN 3
| Shr loss 56 cts vs loss five cts
Net loss 1.9 mln vs loss 164,000
revs 6.9 mln vs 5.4 mln
Year
Shr loss 1.15 dlrs vs profit 52 cts
Net loss 3.8 mln vs profit 1.7 mln
Revs 25.6 mln vs 29.8 mln
NOTE: 1987 net loss includes loss 6.5 mln dlrs for
nonrecurring reserve for closing costs of facility, writeoffs
and sales of real estate.
| Commodities and Trade |
GENCORP <GY> PROPOSALS WITHDRAWN FROM MEETING
| GenCorp Inc said it withdrew from
consideration at its annual meeting on March 31 proposals aimed
at providing for a stock split and an increased dividend so
that it could focus its energies on responding to the takeover
offer made last week by a partnership of AFG Industries Inc
<AFG> and Wagner and Brown.
In addition to proposing an increase in the number of its
outstanding common shares, GenCorp had suggested the adoption
of a classified or "staggered" board and the elimination of
cumulative voting.
GenCorp said these proposals could "distract energy and
attention from the real task at hand -- to respond to the
tender offer in a manner which is in the best interests of the
company, its shareholders and its other constituencies."
GenCorp said the proposal to increase its outstanding
shares was made with the aim of declaring a stock split and a
dividend increase.
The other proposals, it said, would provide for greater
long-term stability and cohesiveness for the GenCorp board.
The company did not indicate when it might resubmit the
proposals for approval by its shareholders.
| Financial Reports |
API SAYS DISTILLATE STOCKS OFF 4.07 MLN BBLS, GASOLINE OFF 2.69 MLN, CRUDE UP 8.53 MLN
|
API SAYS DISTILLATE STOCKS OFF 4.07 MLN BBLS, GASOLINE OFF 2.69 MLN, CRUDE UP 8.53 MLN
| Corporate News |
U.K. CLEARS CONS GOLD U.S. PURCHASE
| The U.K. Trade Department said it would
not refer Consolidated Goldfields Plc's <CGLD.L> purchase of
<American Aggregates Corp> to the Monopolies Commission.
Cons Gold said last month that its <ARC America Corp> unit
had agreed to buy the Ohio-based company for 30.625 dlrs a
share cash, or 242 mln dlrs, in a deal recommended by the
Aggregates board.
| Commodities and Trade |
VERMONT FINANCIAL SERVICES <VFSC> SETS PAYOUT
| Vermont Financial Services
Corp said its board approved a regular 20 cts per share cash
dividend payable April 25 to shareholders of record March 26.
| Commodities and Trade |
RESORTS INTERNATIONAL GETS BUYOUT PROPOSAL FROM KSZ CO INC
|
RESORTS INTERNATIONAL GETS BUYOUT PROPOSAL FROM KSZ CO INC
| Other |
GREAT ATLANTIC AND PACIFIC TEA CO INC <GAP> DIV
| Qtly div 10 cts vs 10 cts prior
Payable May one
Record April 15
| Commodities and Trade |
GARTNER GROUP <GART> ACQUIRES COMTEC PROGRAM
| Gartner Group Inc said it
acquired sole ownership of the COMTEC Market Research Program.
Gartner said its wholly-owned subsidiary purchased the
interests of its former partners for an aggregate price of
1,125,000 plus a percentage of net sales proceeds on future
sales of certain products.
Prior to the acquisition, Gartner Group owned one-third in
the COMTEC partnership, it said.
| Commodities and Trade |
RESORTS INT'L <RT.A> RECEIVES TAKEOVER OFFER
| Resorts International Inc
said it received a proposal from <KSZ Co Inc> under which
holders of Resorts class B stock would receive 140 dlrs a share
in cash and one share of common stock in a new company to be
formed through the takeover.
Under the offer, Resorts said holders of its class A shares
would receive 15 dlrs a share in cash and three shares of
common stock in the new company.
Resorts said the offer from KSZ calls for a merger of
Resorts with RI Acquisition Co Inc, a newly formed Delaware
corporation.
Resorts said that prior to the merger, RI Acquisition would
be capitalized with about 100 mln dlrs of debt and about 220
mln dlrs of equity.
It said 200 mln dlrs of the equity would be in the form of
special preferred stock.
The KSZ offer, Resorts said, indicates that KSZ has a
commitment from <M. Davies Cos> to buy all of the special
preferred stock.
Resorts said the offer will expire at 1700 EST on March 27.
It said it asked its investment advisor, Bear, Stearns and Co,
to advise its board on the offer.
Earlier this month, the estate of James M. Crosby and
certian members of his family agreed to sell their class B
shares to New York real estate tycoon Donald Trump for 135 dlrs
a share. The estate and family members hold 78 pct of the
752,297 class B shares outstanding.
Trump also agreed to pay 135 dlrs a share for the remaining
class B shares outstanding.
Resorts also has about 5,680,000 shares of outstanding
class A stock. These shares carry one one-hundredth the voting
power of the class B shares.
Trump's offer beat out a rival bid of 135 dlrs a share made
by Pratt Hotel Corp <PRAT>.
Resorts said that under the proposal made by KSZ, existing
class A and class B shareholders would control about 96 pct of
the outstanding common of the new company formed to acquire
Resorts.
Resorts said the new company, upon completion of the
merger, would hold the 220 mln dlrs of debt and that the
special preferred stock would immediately be converted into
exchangeable participating preferred of the new company.
This preferred, Resorts said, would pay a dividend based on
the net cash flows from the new company's Paradise Island
operations.
A Resorts spokesman said the KSZ offer was made in a
two-page letter and that Resorts could not comment on it
because it did not contain enough information. Resorts has
asked Bear, Sterns to obtain complete data, he said.
The spokesman said Resorts is not familiar with KSZ but
that it believes the company is controlled by Marvin Davis, the
Denver oilman.
Calls to Davis were referred to Lee Solters, who handles
public relations for Davis. Solters, said to be travelling, was
not immediately available for comment.
Donald Trump was also unavailable for comment, as was a
spokesman for the Crosby estate.
| Market and Economy |
CITICORP <CCI> SEES DOUBLING IN RETAIL BANK NET
| Citicorp expects net income in its
individual banking sector to top one billion dlrs by 1993,
compared with 462 mln dlrs in 1986, said Richard Braddock, head
of Citicorp's individual banking division.
"We can double our earnings over the next five to seven
years," he told a banking analysts meeting, adding that this
forecast may be on the conservative side.
He said that bank card operations and the New York branch
system would continue to turn in hefty profits but also picked
out other developing areas, such as U.S. mortgage and
international consumer, as major potential earners.
Braddock and his sector heads made the following more
specific predictions:
- Cost of funds and net credit loss levels in the U.S.
bankcard unit will taper off in coming years from 1986's
relatively inflated levels.
- Customer net revenue in the mortgage banking area will
rise to 464.7 mln dlrs in 1987 from 374.3 mln in 1986.
- The international consumer business will show 22 pct
compound annual growth in earnings between 1986 and 1992.
- Private banking earnings will hit 100 mln dlrs in 1987
and top 200 mln dlrs in 1992.
| Financial Reports |
WD-40 CO <WDFC> 2ND QTR FEB 28 NET
| Shr 35 cts vs 40 cts
Net 2,642,000 vs 3,017,000
Sales 19.1 mln vs 18.9 mln
Six Mths
Shr 69 cts vs 70 cts
Net 5,178,000 vs 5,299,000
Sales 35.6 mln vs 33.8 mln
| Other |
BRAZIL COMPUTER MARKET TO REMAIN CLOSED-MINISTER
| Brazilian Science and Technology
Minister Renato Archer said Brazil will keep its computer
market closed to foreign goods in order to give its own infant
industry time to develop.
"Every country establishes laws to protect its interests.
The United States closed their borders at a certain stage to
some foreign goods and therefore protected its industrial
development. Now it is time for Brazil to do likewise," Archer
said at the opening of a national software conference.
After several meetings, Brazil and the U.S. Have made no
major progress in their computer row, which they have been
trying to resolve for the past 18 months.
The Reagan administration has objected to Brazil protecting
its computer industry from imports.
| Other |
NORTHERN INDIANA PUBLIC SVC <NI> AGAIN OMITS DIV
| Northern Indiana Public Service
Company said it again omitted its quarterly common stock
dividend which would have been payable in May.
NIPSCO said it has not paid a qtly dividend since December
1985 following an adverse decision by the Indiana Supreme Court
denying amortization of about 191 mln dlrs NIPSCO invested in
its Bailly N-1 project.
| Commodities and Trade |
FED'S JOHNSON SAYS DOLLAR STABILIZED AFTER FED TOOK APPROPRIATE ACTION
|
FED'S JOHNSON SAYS DOLLAR STABILIZED AFTER FED TOOK APPROPRIATE ACTION
| Corporate News |
FED CHAIRMAN VOLCKER SAYS BANK PROPOSALS A WORRY
| The chairman of the Federal Reserve
Board, Paul Volcker, has written to the chairman of the House
Banking Committee to raise concerns about legislative proposals
scheduled for consideration Wednesday.
Volcker told committee chairman Fernand St. Germain a
proposal to deny primary dealer status to firms from countries
that do not grant U.S. firms equal access to their government
debt markets might invite retaliation against U.S. firms
abroad.
He added, "even Japan, against whom this proposal seems to
be particularly directed," has started opening its markets.
In his letter, made available at the Treasury, Volcker also
said a proposal to ease debt problems of developing countries
by setting up a public facility to buy their debts owed to
commercial banks, was a problem.
"I believe that the prospect of debt relief would undermine
the difficult internal efforts of the borrowing countries to
achieve the structural reform that is needed regardless of the
policies that are followed on servicing external debt," Volcker
said.
It might also cause private lenders to become reluctant to
extend more credit to the borrowing countries, he said.
Volcker said he endorsed comments by Treasury Secretary
James Baker "about the inappropriateness of using public
resources for purchasing private commercial bank debt, which we
both see as an inherent aspect of the proposed international
debt facility."
He also said a proposal for establishing formal procedures
for international negotiations on currency exchange rates "is
unrealistic and could well have damaging effects."
"For example, the bill's directive to intitiate negotiations
in order to achieve a competitive exchange rate for the dollar
-- a matter upon which there can be considerable difference
among analysts -- runs the risk of building up potentially
destabilizing market expectations," Volcker said.
He recommended "we should not lock ourselves into formalized
procedures for international negotiations" on exchange rates but
instead use other, more flexible means like the recent mmeting
in Paris between U.S. treasury and central bank representatives
and those of major trade allies.
| Other |
BORMAN'S INC <BRF> DECLARES QTLY DIVIDEND
| Qtly div five cts vs five cts prior
Pay June 15
Record May 18
| Corporate News |
U.S. CORN ACREAGE SEEN NEAR RECORD LOW
| U.S. corn acreage this year is
likely to drop to the lowest level since the unsurpassed
acreage reductions of the 1983 PIK year and could rank as one
of the lowest corn plantings in the United States in sixty
years, Agriculture Department officials said.
USDA releases its official plantings report on March 31.
Agriculture Department analysts said next week's figures will
likely show a sharp drop in acreage to as low as 65 mln acres,
down 22 pct from last year's plantings of 83.3 mln acres.
Assuming an 18 mln acre drop in plantings, U.S. corn
production will also decrease significantly. Analysts said 1987
corn production could drop by over one billion bushels to
around seven billion bushels.
Expected signup of up to 90 pct in the 1987 feed grains
program, along with 1.9 mln acres enrolled in the conservation
program, will cause acreage to plummet, Department feedgrain
analysts said.
"There's no question that there will be a sharp decrease in
corn acreage," one said. "It's difficult for any farmer to not
go along with the program this year."
Soybean acreage is also expected to decline this year but
at a much slower rate of around four pct, USDA analysts said.
Soybean plantings could drop to 59 mln acres or below, they
said, compared to last year's level of 61.5 mln acres.
If analysts' unofficial estimates prove correct then the
drop in u.s. corn acreage will be the largest since 1983 when
farmers idled 22 mln acres in the Payment-In-Kind program.
Farmers planted only around 60 mln acres of corn in 1983. A
severe drought that summer in major producing states caused
yields to tumble and final crop production to total only 4.2
billion bushels.
Given normal weather conditions this year, USDA analysts
said the 1987 corn crop could end up around seven billion
bushels, down from last year's crop of 8.3 billion bushels.
"This kind of acreage reduction will mean a significant
reduction in production," an analyst said.
A crop of seven billion bushels is close to the annual U.S.
corn usage, so surplus stocks, while not decreasing, would not
increase significantly, a specialist said.
High producing corn belt states are expected to show the
greatest acreage reductions, based upon historical
participation in government programs, analysts said.
In contrast, soybean acreage is likely to be cut the most
in marginal producing areas of the southeast and the western
corn belt, a USDA soybean analyst said.
"Soybean acreage in the eastern corn belt will not budge,"
he said. Neither does he expect any significant acreage cuts in
higher-producing delta areas.
Soybean production could drop fractionally from last year's
2.0 billion bushels to 1.8 to 1.9 billion, he said.
U.S. soybean acreage, after soaring to 71.4 mln acres in
1979 from only 52 mln acres five years prior to that, has
steadily declined in the 1980's.
U.S. corn acreage, with the exception of 1983, has been in
the low to mid 80-mln acre range for the past 10 years. The
highest corn plantings reported in the 60 years that USDA has
kept such records was in 1932 when farmers planted 113 mln
acres and obtained average yields of 26.5 bushels per acre.
Last year U.S. farmers obtained record corn yields
averaging 119.3 bushels per acre.
"We have absolutely no trouble producing an eight billion
bushel crop on only 80 mln acres or so," an analyst said.
Corn acreage will probably level at around 65 mln acres as
long as government program provisions remain the same, analysts
said.
Currently farmers enrolling in the program are required to
set aside 20 pct of their base acreage and then are eligible
for payments of two dlrs per bushel by idling an additional 15
pct of their acreage.
"To get to the PIK level of 60 mln acres, we would have to
provide more incentives," an analyst said.
| Commodities and Trade |
KIRSCHNER <KMDC> COMPLETES PURCHASE
| Kirschner Medical corp said it
completed the acquisition of Minnesota Mining and
Manufacturing's <MMM> orthopedic metal implant line division.
The acquisition price is 12.0 mln dlrs in cash, a six mln
dlr three year note and 100,000 shares of Kirschner common
stock.
The division had sales of 11.3 mln dlrs in 1986.
| Corporate News |
U.S. SENATORS SEEK TO EXPAND USDA EXPORT BONUS
| Leading U.S. farm state senators are
seeking to insert into the Senate's omnibus trade bill a
provision that would broaden eligibility requirements under the
U.S. Agriculture Department's export enhancement program, EEP,
to include traditional buyers of U.S. farm products, including
the Soviet Union, Senate staff said.
Under existing criteria, USDA can offer EEP subsidies to
recoup export markets lost to competing nations' unfair trading
practices.
Senate Agriculture Committee Chairman Patrick Leahy (D-Vt.)
is leading a group of farm state senators in an effort to
broaden the criteria in such a way as to enable Moscow to be
eligible for the subsidies, sources said.
The senators -- including Senate Finance Committee Chairman
Lloyd Bentsen (D-Tex.), Max Baucus (D-Mont.), David Pryor
(D-Ark.), John Melcher (D-Mont.) and Thad Cochran (R-Miss.) --
also may fold into the trade bill a measure to shield pork
producers and processors from Canadian imports.
The measure, sponsored by Sen. Charles Grassley (R-Iowa),
would clarify the definition of "industry" in determining whether
or not imports were causing injury to U.S. producers.
Grassley's bill stems from a 1985 decision by the
International Trade Commission that imports from Canada of live
swine -- but not fresh, chilled and frozen pork -- were harming
U.S. producers.
The bill's proponents have argued Canada has simply
replaced shipments of live hogs with fresh pork.
| Financial Reports |
FED'S JOHNSON SAYS FED ACTED TO STABILIZE DOLLAR
| Federal Reserve Board Vice Chairman
Manuel Johnson said the dollar has stabilized against other
currencies after action taken by the Fed.
"We have taken the appropriate action and the dollar has
stabilized," Johnson said after testifying to a House Banking
subcommittee.
He did not elaborate on the nature of the action nor when
it was taken, but said that it was in the spirit of the
agreement reached by six industrial nations in Paris recently.
Johnson said the dollar's decline against other currencies
such as the Japanese yen has been gradual.
Since the accord by the United States, Britain, West
Germany, Japan, France and Canada, foreign exchange markets
have been closely watching for indications of intervention by
central banks to determine the committment by those nations to
their agreement.
The nations agreed that currency exchange rates were at
about the correct levels when the pact was signed earlier this
year.
| Financial Reports |
MARYLAND NATIONAL <MDNT> SEES NEW NAME
| Maryland National Corp, the parent of
Maryland National Bank which earlier this month merged with
American Security Bank, said its shareholders will vote on a
new name for the regional bank holding company at its April 29
annual meeting.
It said MNC Financial Inc is the proposed new name for the
parent company. The banks merged on March 16, and have combined
assets of about 14 billion dlrs.
Maryland said the new name only will be used for the parent
and it does not plan to change the names of Maryland National
Bank, American Security Bank or non-bank affiliates.
| Corporate News |
VENEZUELA TO ANNOUCE PARTNER FOR COAL VENTURE
| Petroleos de Venezuela S.A will
announce within two weeks the name of a foreign consortium it
has chosen to help exploit the coal deposits at Guasare in
western Zulia state, PDVSA president Juan Chacin Guzman said.
Chacin told reporters the foreign partner will provide
capital as well as technical and marketing expertise to the
Carbozulia project, which the state oil company will manage.
PDVSA officials said that among those who bid for the
partnership is a consortium between Agip Carbone, a subsidiary
of Italy's Ente Nazionale Idrocarburi (ENI), and Atlantic
Richfield <ARC> of the United States.
Minister of Energy and Mines Arturo Hernandez Grisanti said
discussions are currently taking place to finalize the terms of
the contract with the foreign partner.
PDVSA vice-president Pablo Reimpell said last week the
first shipment of coal from the Carbozulia project should be
made during the final quarter of 1987, and would measure
between 100-150,000 metric tons.
Plans call for production to eventually reach 500,000 mt
annually. Reimpell said the original investment in the project
will be approximately 8 billion bolivars.
| Corporate News |
GOTTSCHALKS INC <GOT> 4TH QTR NET
| Shr 37 cts vs 50 cts
Net 2,776,000 vs 2,756,000
Sales 46.9 mln vs 38.8 mln
Avg shrs 7,508,000 vs 5,550,000
Year
Shr 58 cts vs 55 cts
Net 4,021,000 vs 3,005,000
Sales 125.9 mln vs 112.8 mln
Avg shrs 7,090,000 vs 5,500,000
| Corporate News |
BORG-WARNER SAYS IT DISCUSSED POSSIBLE TAKEOVER WITH IRWIN JACOBS
|
BORG-WARNER SAYS IT DISCUSSED POSSIBLE TAKEOVER WITH IRWIN JACOBS
| Financial Reports |
CYCLOPS CORP SAYS CYACQ'S AMENDED OFFER RESTATES ORIGINAL CONDITIONS
|
CYCLOPS CORP SAYS CYACQ'S AMENDED OFFER RESTATES ORIGINAL CONDITIONS
| Corporate News |
U.S. SUGAR QUOTA MAY BE EASED, CONGRESSMAN SAYS
| The United States may soon ease its
1987 sugar import quota of one mln short tons by bringing
forward to the third quarter some shipments scheduled for the
fourth quarter of 1987, Jerry Huckaby, a leading Congressman
representing sugar growers told Reuters in an interview.
Huckaby, a Louisiana Democrat and chairman of the House
subcommittee which deals with the sugar program, indicated the
easing of the quota might be a way to calm the concern about
the impact of the severe cut in U.S. sugar imports this year.
"With imports coming down from 1.8 mln (last year) to one
mln, there is legitimate concern about the impacts on Caribbean
countries and the Philippines," Huckaby said.
By bringing forward to the third quarter some imports, the
quota would effectively be eased by about 250,000 tons.
Huckaby said by simply bringing forward to the third
quarter of the year sugar imports scheduled for the September
to December period "we could get away without having to
increase the quota."
He noted that some in the sugar industry believe an
increase in the quota is justified.
Earlier this month, representatives of U.S. cane sugar
refiners met with U.S. Agriculture Department officials to
request a quota increase of at least 200,000 tons. The refiners
said the increase is needed because the quota is so restrictive
there could be some spot shortages of sugar in the U.S later
this year, a refiner spokesman said.
However, the official slaid the USDA replied only that it
would consider the request.
Following the refiners' request, representatives of the
Florida sugarcane producers met with USDA to express opposition
to any quota expansion, industry sources said.
The statement by Huckaby, who as a representative from a
sugar growing district in Louisiana is a leading architect of
the current sugar program, indicates at least some grower
officials are concerned enough to support an easing of the
import quota, industry officials said.
Any final decision on easing the quota must be made by the
Reagan administration's interagency sugar policy group.
Asked about possible quota changes, A USDA official said
"As far as I know, changing the quota volume or the quota year
is not under active consideration."
| Market and Economy |
CALIFORNIA MICROWAVE <CMIC> TAKES 3RD QTR CHARGE
| California Microwave Inc said
it will take non-recurring charges of 9.7 mln dlrs to pre-tax
earnings in the third quarter ended March 31.
The company said earnings from operations in the second
half, ending June 30, 1987, excluding the charges, are expected
to be in the break-even range.
In the second half of 1986 net earnings were 2,297,000
dlrs, or 29 cts per share.
The company said the charges relate to its
telecommunications products area and three other areas.
California Microwave previously estimated the write-downs
in the six to eight-mln-dlr range. It said it will add to that
a reserve for investment losses in Argo Communications Corp.
Also to be included in the write-down are charges against
its advances to an Arizona-based communications electronics
firm the company has an option to acquire, it said.
In addition, accruals are being made for costs associated
with the company's reduction in its Sunnyvale work force.
California Microwave said the write-downs should have a
nominal cash impact, as the company already has paid for the
assets being written down.
| Commodities and Trade |
CRS SIRRINE PLANS MAJOR RESTRUCTURING, WRITE OFF OF UP 43 MLN DLRS
|
CRS SIRRINE PLANS MAJOR RESTRUCTURING, WRITE OFF OF UP 43 MLN DLRS
| Corporate News |
H.F. AHMANSON AND CO <AHM> QTLY DIVIDEND
| Shr 22 cts vs 22 cts prior qtr
Pay June one
Record May 12
| Other |
BORG-WARNER <BOR> TELLS OF TALKS WITH JACOBS
| Borg-Warner Corp said it has had
discussions with Irwin Jacobs on his interest in the
possibility of Minstar Inc <MNST>, a Jacobs controlled company,
being given access to certain non-public information about
Borg-Warner.
In late February, an investor group headed by Jacobs
offered 44 dlrs a share, or 3.29 billion dlrs, to take over
Borg-Warner.
Borg-Warner said it advised Jacobs that before its board
would give Minstar access to company records Minstar would have
to provide satisfactory evidence that sufficient financing was
committed to carry out whatever transaction was proposed.
A Borg-Warner spokesperson said the discussions with Jacobs
and other Minstar officials focused on terms and conditions
under which the company would consider granting Minstar access
to the information it was seeking.
The Borg-Warner spokesperson said the company has not been
able to reach an agreement with Minstar, and Borg-Warner has
not granted Minstar access to any records.
There can be no assurance that there will be further
discussions with Jacobs or that any agreement will be reached,
the company added.
| Commodities and Trade |
CANADA VOWS TO FIGHT U.S. POTASH ACTION
| External Affairs Minister Joe Clark
today vowed to do everything possible to fight the U.S. action
against Canadian potash exports, but also warned against
raising the alarm too early in the dispute.
In the latest flashpoint in Canadian-U.S. trade relations,
the U.S. International Trade Commission ruled unanimously
Monday that Canadian potash shipments valued at 270 million
U.S. dlrs last year were injuring the U.S. industry.
"We certainly intend to do everything we can to insure that
Canadian interests are well protected," Clark told the House of
Commons in the daily question period.
But he said the opposition parties should be careful "not
to raise false alarms too early."
The case now goes before the U.S. Commerce Department's
trade division to determine if a duty should be imposed. Potash
producers from New Mexico, claiming unfair government
subsidies, are seeking a 43 pct tariff on Canada's shipments.
Canada, the world's largest potash producer, exported 9.8
mln metric tonnes of potash last year, with nearly a third
going to the U.S.
Most of the potash, used in the production of fertilizer,
comes from provincially owned mines in Saskatchewan.
In the Commons, Liberal member Lloyd Axworthy branded the
ruling as just another "trade harrassment" from the U.S. and
criticized Clark's assurances the country's interests would be
protected.
"We received exactly the same kind of assurances in the
softwood lumber case that was totally fumbled and bumbled,"
Axworthy said.
Canada's Progressive Conservative government agreed to
impose a 15 pct duty on its softwood lumber exports earlier
this year to end a long and bitter bilateral trade dispute with
the U.S.
Axworthy urged the government to present Canada's case to
world trade authorities under the General Agreement on Tariffs
and Trade.
But Clark maintained the potash dispute was another example
of why Canada needs to find a new way to settle bilateral
irritants in the free trade negotiations under way with the
U.S.
"What we are seeking to do is put in place a better
system," Clark said.
Meanwhile, Saskatchewan Trade Minister Bob Andrew expressed
confidence Canada would win its case, claiming the problem
stems from low international commodity prices and not
government subsidies.
"The reality of the problem and the injury is caused
worldwide," he said. "It's caused by a downturn in the
commodity price for fertilizer, whether it's potash fertilizer,
nitrogen fertilizer or whatever."
| Financial Reports |
TRINTOC, UNION CARBIDE TO BUILD METHANOL PLANT
| Trinidad and Tobago is
finalizing arrangements with Union Carbide <UK> of the United
States and Snamprogetti of Italy for the construction of a
1,500 tonnes per day methanol plant, Energy Minister Kelvin
Ramnath said.
Ramnath said the ministry is now holding talks with Union
Carbide on the price of natural gas to be used in the plant,
which will be constructed near the Trinidad and Tobago oil
company (Trintoc) refinery at Point Fortin on the west coast.
Snamprogetti built the first methanol refinery on trinidad
five years ago.
Trintoc is likely to put up land, refinery plant and
machinery as equity. If negotiations go smoothly, ramnath said,
construction could begin by next january.
The government of prime minister A.N.R. Robinson is hoping
to lue new investors to the twin-island state's petrochemical
industry, in order to make use of new findings of natural gas.
| Other |
VOLCKER CALLS DOLLAR SLIDE ENOUGH
| Federal Reserve Board Chairman Paul
Volcker said that the dollar's slide in currency markets has
been enough, a Fed spokesman said.
The spokesman confirmed that Volcker, who spoke to a group
of financial analysts, said in answer to a question about the
dollar's recent slide that "enough is enough."
Volcker has often expressed concern about the dollar
falling too rapidly in currency markets.
| Commodities and Trade |
ZAIRE ACCEPTS TIN-EXPORT QUOTA, ATPC SAYS
| Zaire agreed to limit its tin
exports to 1,736 tonnes for 12 months from March 1 in line with
an Association of Tin Producing Countries (ATPC) plan to curb
exports, the ATPC said.
ATPC Executive Director Victor Siaahan told Reuters he
received a telex from Zaire indicating its willingess to take
part in the plan to limit total ATPC exports to 96,000 tonnes
for a year from March 1.
Siaahan said Zaire is expected to produce 1,900 tonnes of
tin in calendar 1987, and that in 1986 its output and exports
were about 1,200 tonnes.
The ATPC hopes to cut the 70,000-tonne world surplus by
20,000 tonnes and boost prices.
All ATPC members except Zaire and Australia recently agreed
to adhere to the export quotas allocated them under the plan.
Australia said its quota of 7,000 tonnes was roughly equal to
its expected output this year.
The ATPC consists of Malaysia, Indonesia, Thailand,
Bolivia, Australia, Nigeria and Zaire.
China and Bolivia, important producers of tin, are not
members.
| Other |
RB INDUSTRIES <RBI> COMPLETES STORE SALES
| RB Industries Inc said it completed
the sale of its W and J SLoane Division to Laurence Crink Jr
and a group of investors.
The definitive agreement provides for a closing on April 1,
1987. The division consists of four W and J Sloane furniture
store in Los Angeles and Orange counties.
RB Industries also said it recently secured a five-year
8.573 pct secured 9.9-mln-dlr loan on its Irvine property from
a major institution. Proceeds will be used to retire existing
bank debt, for working capital and to retire a portion of its
outstanding 12 pct debentures.
| Corporate News |
GENCORP <GY> TAKEOVER GROUP CANCELS HEARING
| The investor group seeking to acquire
GenCorp Inc said it agreed to cancel a court hearing after
GenCorp withdrew three proposals that, if approved, would have
made it more costly and difficult to acquire the Akron,
Ohio-based company.
Earlier today GenCorp said it will not ask shareholders to
approve an increase in the number of its outstanding shares,
the election of a staggered board of directors and the
elimination of cumulative voting.
However, the group said it will continue to try to block
GenCorp's poison-pill provision.
The group, a partnership of AFG Industries Inc <AFG> and
<Wagner and Brown>, was to go to court on March 27 to block
GenCorp for having the three proposals voted on by shareholders
at its annual meeting.
GenCorp said it withdrew the proposals so that it could
focus its attention on the takeover offer.
The takeover partnership said it has asked to meet with
GenCorp to negotiate a repeal of the company's poison pill
plan.
| Financial Reports |
GENCORP <GY> FIXES RIGHTS SEPARATION DATE
| Gencorp Inc said that because it is
continuing to evaluate General Acquisition Inc's tender offer
it has fixed April 3, subject to further extension, as the date
the rights to purchase preferred shares will trade separately
from the common stock as a result of the tender offer.
This extension of the expiration date is conditioned on no
person acquiring beneficial ownership of 20 pct or more of
Gencorp's common stock prior to April 3, it said.
Gencorp said it could distribute the rights certificates to
shareholders 10 to 30 days after the March 18 acquisition offer
was made.
However, rather than leaving the expiration date in a
range, the board decided to set April 3 as the day it will
distribute the preferred share purchase rights.
| Corporate News |
AMERICAN INTERNATIONAL <AIG> SELLS AFRICAN UNIT
| American International Group Inc said
it sold its South African subsidiary, American International
Insurance Co Ltd, to Johannesburg Insurance Holdings Ltd, a
holding company owned by a consortium of shareholders led by
Rand Merchant Bank.
Terms were not disclosed and company officials were
unavailable for comment.
With the conclusion of the sale, American International has
entirely divested itself of its holdings in South Africa.
| Corporate News |
OXFORD INDUSTRIES INC <OXM> 3RD QTR FEB 27
| Shr 25 cts vs 21 cts
Net 2.8 mln vs 2.3 mln
Revs 135.0 mln vs 119.0 mln
Nine months
Shr 80 cts vs 70 cts
Net 8.9 mln vs 7.7 mln
Revs 407.7 mln vs 403.7 mln
| Market and Economy |
PORTUGAL MAY HAVE PURCHASED U.S. CORN
| Portugal may have purchased a 30,000
tonne cargo at its tender today for up to 43,000 tonnes of
number two yellow corn (14.5 pct maximum moisture) for arrival
by April 30, shipment via Gulf ports, U.S. exporters said.
| Market and Economy |
TAIWAN TENDERING THURSDAY FOR U.S. CORN
| Taiwan will tender Thursday, March 26,
for a total of 356,000 tonnes of U.S. number two yellow corn
(14.5 pct moisture) for various Sept/Dec shipments via Gulf or
Pacific Northwest ports, U.S. exporters said.
| Other |
SRI LANKA TENDERING OVERNIGHT FOR WHEAT
| Sri lanka will tender overnight for
52,500 tonnes of U.S., Canadian and/or Australian wheats for
April 8/16 shipment, under the Export Enhancement Program if
U.S. origin, U.S. exporters said.
| Financial Reports |
<DIGIGRAPHIC SYSTEMS CORP> 4TH QTR OPER LOSS
| Oper shr loss one ct vs loss seven cts
Oper net loss 80,640 vs loss 787,738
Revs 933,183 vs 3,346,627
Avg shrs 6,122,378 vs 8,451,578
Year
Oper shr loss 75 cts vs loss 1.10 dlrs
Oper net loss 5,120,206 vs loss 9,288,996
Revs 5,846,962 vs 18,679,090
Avg shrs 6,805,951 vs 8,387,802
NOTE: Earnings exclude losses from discontinued operations
of 178,437 dlrs, or three cts a share vs 154,767 dlrs, or two
cts a share in the quarter and losses of 706,984 dlrs, or 10
cts a share vs 572,100 dlrs, or seven cts a share for the year
1986 year earnings exclude gain from early extinguishment
of debt of 11,318,289 dlrs, or 1.66 dlrs a share
| Other |
BAYOU <BYOU> IN DEFINITIE MERGER AGREEMENT
| Bayou Resources Inc said it reached an
definite agreement to be acquired by Patrick Petroleum Co
through a stock and cash transaction valued at six dlrs per
Bayou share.
Bayou also reported net loss of three cts or 23,024 dlrs
for the fourth quarter compared with a net income of 10,128
dlrs or one cts a year. Revenues fell to 532,807 dlrs from
769,465 dlrs a year ago.
For the year, Bayou reported a net loss of 14 cts or
116,793 dlrs compared to a net income of 23 cts or 203,372
dlrs. Revenues fell to 2.4 mln dlrs from 3.3 mln dlrs.
| Corporate News |
TRANSCONTINENTAL <TGP> FILES NEW OFFER
| Transcontinental Gas Pipe Line Corp
said that it is not willing to accept the Federal Energy
Regulatory Commission's conditioned approval of its proposed
offer of settlement dated May 13.
Transco said it filed a revised settlement proposal which
would permit it to become an open access transporter while
restructuring gas sales services.
The new offer includes a gas supply inventory charge to
customers who fail to buy 60 pct of their annual contract
quantities and 35 pct of their summer contract quantities.
| Financial Reports |
COMPUTER IDENTICS CORP <CIDN> 4TH QTR
| Shr loss 44 cts vs loss 20 cts
Net loss 2.4 mln vs loss 880,000
Revs 2.4 mln vs 2.6 mln
Year
Shr loss 87 cts vs loss 11 cts
Net loss 4.3 mln vs loss 494,000
Revs 9.0 mln vs 12.0 mln
NOTE:1986 includes restructuring charges of 2.1 mln dlrs
and loss of foreign affiliates of 2.0 mln dlrs. 1985 includes
loss from foreign affiliates of 173,000 dlrs.
| Financial Reports |
FLEET TO ACQUIRE ASSETS OF MARK IV <IV> UNIT
| <Fleet Aerospace Corp>
said it agreed in principle to acquire the assets and
operations of the Engineered Magnetics division of Gulton
Industries Inc, a unit of Mark IV Industries Inc.
Terms were undisclosed.
Los Angeles-based Engineered Magnetics designs and produces
custom power conversion systems mainly for use in the defense
and aerospace industries. Its revenues for the year ended
February 28 totaled about 20 mln Canadian dlrs.
| Other |
MIKRON INSTRUMENT CO <MIKR> 1ST QTR JAN 31
| Shr three cts vs four cts
Net 30,969 vs 18,230
Revs 956,971 vs 702,994
| Commodities and Trade |
GOLDEN NORTH HAS ENCOURAGING DRILL RESULTS
| Golden North
Resource Corp said said surface and underground drilling on the
Canty project and Mascot fraction at its Nickel Plate Mountain
property in British Columbia returned encouraging gold assays.
It said one Canty hole encountered several mineralized
intervals including 11 feet grading 0.342 ounce gold a short
ton from 86 to 97 feet and 17 feet grading 0.756 ounce gold ton
from 170.5 feet to 187.5 feet.
A Mascot fraction hole returned assays including 0.190
ounce gold ton over seven feet between 57 and 64 feet, it said.
| Corporate News |
AUSTN FEB ANNUAL M3 MONEY SUPPLY RISES 11.2 PCT
| The annual growth of Australia's m3
money supply rose by 11.2 pct in the year ended February
compared with January's 10.7 pct, the Reserve Bank said.
This was down from 14.0 pct in February last year.
In February m3 rose by 0.6 pct compared with 0.8 in January
and a February 1986 rise of 0.1 pct.
More
| Corporate News |
PS GROUP <PSG>, USAIR <U> MOVE UP DEADLINE
| PS Group Inc said it and
USAir Group agreed to move up the completion date of USAir's
acquisition of Pacific Southwest Airlines to April 30 from
September 30 originally.
If the acquisition does not take place by April 30, either
party may terminate the agreement, the company said.
The deadline has been moved up because the Department of
Transportation and PS Group shareholders have already approved
the transaction, the company said.
A Teamsters Union agreement to certain labor contract
conditions remains to be resolved under the pact.
| Financial Reports |
MERGERS, PUBLIC OFFERS SEEN AMONG CAR DEALERS
| Automobile dealerships have become
large, multi-store operations, and the largest sell more than 1
billion dlrs a year worth of vehicles a year.
Around the auto industry there is talk of mergers and
buyouts among dealerships, and there are rumors that the
largest are considering offering shares to the public, analysts
say.
Retail car sales "are at a point of transition. There's not
much that's off the table in terms of creative thinking" about
ways to sell cars, says David Cole, analyst with the University
of Michigan's Transportation Research Institute.
The retail car market is "much more freeform now" than it
was in 1956, the year things began to change, says Detroit
analyst Arvid Jauppi of Arvid Jauppi and Associates.
Thirty years ago, in 1956, the situation was different.
Dealerships sold one kind of car--a "Chevy" or a Ford or a
Studebaker. The average dealer had 17 employees and sold
738,000 dlrs worth of vehicles, according to the National
Automobile Dealers Association.
That year a tiny car from overseas--Germany's Volkswagen
Beatle--began to gain popularity. The "Bug" caused "a
rebellion" among dealers, who demanded greater freedom from
restrictions placed on them by the major American automakers,
says Jauppi.
One of the most visible changes in retail car sales has
been in the size of dealerships, auto analysts say. Last year,
the average dealership had 11.2 mln dlrs in sales--a 15-fold
increase from 1956--and employed 34 workers.
"I had one of these guys tell me he makes six, seven mln
dlrs a year and didn't know what to do with all his money,"
says Cole.
"There's a whole lot more rich guys who sell cars than that
make cars," he says.
With the increase in size, large dealers have been buying
up other dealerships, and auto analysts see few signs the trend
will let up.
Donald Keithley, vice president, dealer services, for J.D.
Power, a California-based market research firm, says that, by
1990, 12,000 people will own dealerships compared to 16,800
principal owners today.
Many dealers are experimenting with owning several
franchises, some of which might compete against each other. "It
used to be a Chevrolet dealer was a Chevrolet dealer. Now a
Chevrolet dealer might handle several lines," Jauppi says.
As dealers get bigger, industry officials are talking about
the possibility that some of them might become publicly-owned
or open international operations.
Offering shares to the public is an option large dealers,
"are obviously thinking of very seriously," says Cole.
Although some say the franchise system might get in the way
of a public offering, Jauppi says there are few obstacles to
trading in car dealer shares.
"Dealers are large enough now to go public. The only thing
the manufacturer cares about is that the dealer sells those
cars. It could happen any time," Jauppi says.
"If you look at the whole merger mania, and look at the
scale some of these dealers, it's going to be very hard to
resist taking them public," said another analyst.
And Jauppi says that dealerships can be expected to become
international.
"We're going to have international dealers--dealer networks
that are worldwide," he says. U.S. dealers will be attracted
particularly to Europe, where the market will expand faster
than the U.S., he says.
"It's not totally off the wall," says Cole.
| Commodities and Trade |
COMPREHENSIVE CARE CORP <CMPH> 3RD QTR NET
| Qtr ended Feb 28
Shr 17 cts vs 22 cts
Net 2,041,000 vs 3,329,000
Revs 46.6 mln vs 48.9 mln
Nine mths
Shr 65 cts vs 82 cts
Net 9,290,000 vs 12.7 mln
Revs 142.7 mln vs 139.8 mln
| Corporate News |
CHAPMAN <CHPN> IN RESTRUCTURING
| Chapman Energy INc said it is launching
a major restructuring which, if not approved, it will have no
alternative but to seek protection under Chapter 11.
Under the plan, Chapman will exchange securities and cash
for all outstanding 12 pct senior subordinated debentures due
2000 and will sell a controlling interest to Troon Partners
Ltd.
The agreement with Troon requires Troon to advance 6.5 mln
dlrs partially secured by a first mortgage lien on the
company's interest in its natural gas pipeline partnership and
Troon to tender 100,000 principal amount of debentures to
Chapman.
Proceeds of the loan will be used for the cash portion of
the restructuring. Troon will acquire a majority stock interest
and control of the board.
In addition, Chapman and Troon will establish a 10 mln dlrs
acquisition joint ventures, it said.
The plan also contemplates establishing a restructured loan
providing for one master credit agreement having an aggregate
balance of 22.4 mln dlrs.
The plan also contemplates the recapitalization of
preferred stock whereby each share will be converted into three
shares of common stock.
Chapman also said it also plans to negotiate settelment and
discharge of a substantial portion of its accounts payable and
settlement of certain litigation.
If approved by various creditors and shareholders, the
company expects the plan to be completed by May 29.
Chapman also repoted a loss of 43.4 mln dlrs for the year,
including asset writedowns of 35.5 mln dlrs, compared to
December 31, compared to a net income of 177,243 in 1985.
The 1986 loss resulted in shareholders' deficiency of 15
mln dlrs compared to shareholder's equity of 28.9 mln last
year.
Total assets decreased to 35.6 mln dlrs from 81.8 mln dlrs.
| Commodities and Trade |