titles
stringlengths 12
138
| article
stringlengths 15
8.85k
| category
stringclasses 6
values |
|---|---|---|
VESTAR INC <VSTR> YEAR LOSS
| Shr loss 98 cts vs loss 1.11 dlrs
Net loss 3,863,000 vs loss 3,483,000
Revs 1,081,000 vs 799,000
Note: 4th qtr data not given.
| Corporate News |
<STERLING BANCORP> YEAR NET
| Shr 1.13 dlrs vs 87 cts
Net 1,064,489 ca 780,712
Assets 106.8 mln vs 102.5 mln
Note: 4th qtr data not given.
| Financial Reports |
FIRST NEW HAMPSHIRE BANKS INC DIV
| Qtly div 15 cts vs 15 cts prior
Payable May one
Record April 10
| Financial Reports |
HOUSE OF FABRICS <HF> QUARTERLY DIVIDEND
| Qtly div 12 cts vs 12 cts
Pay July 1
Record June 12
| Other |
Bank of Japan bought 200 to 300 mln dlrs this morning, dealers said.
|
Bank of Japan bought 200 to 300 mln dlrs this morning, dealers said.
| Financial Reports |
JAPAN BUYS MODEST AMOUNT OF DOLLARS, DEALERS SAY
| The Bank of Japan bought a modest amount
of dollars this morning, possibly around 200 to 300 mln,
dealers said.
One dealer said the central bank bought about 200 mln dlrs
through brokers and the rest through banks. The buying began
when the dollar was at about 149.60 yen, and helped drive the
U.S. Currency up to around 150, he said.
Another said the central bank seemed to be trying to push
the dollar up above 150 yen. But heavy selling at around that
level quickly pushed the dollar back down towards 149 yen,
dealers said.
| Financial Reports |
JAPAN'S 1986/87 SUGAR CANE OUTPUT SEEN FALLING
| An Agriculture Ministry survey has
estimated the nation's 1986/87 crop sugar cane output at 2.14
mln tonnes, down from 2.62 mln a year earlier.
Ministry officials said the decline was due to bad weather
and a reduction in the land under sugar cane this season, which
totals 34,800 hectares, down from 35,700 in 1985/86, they said.
Harvesting stretches from December 1986 to April 1987
Japan's final output will be announced at the beginning of
June, they said.
| Financial Reports |
WEEKS PETROLEUM LTD <WPMA.MEL> CALENDAR 1986
| Shr 16.7 cents vs 29.4
Final div nil vs same making nil vs same
Pre-tax profit 21.31 mln dlrs vs 26.42 mln
Net 10.84 mln vs 19.15 mln
Turnover 17.17 mln vs 25.94 mln
Other income 101.99 mln vs 125.18 mln
Shrs 65.13 mln vs same.
NOTE - Net is after tax 10.47 mln vs 7.27 mln, interest
2.58 mln vs 9.55 mln, depreciation 5.06 mln vs 7.61 mln and
minorities nil vs same. Other income: 72.39 mln from sale of
investments (103.04 mln 1985), interest 25.75 mln (21.49 mln),
and dividends 1.64 mln (nil). Co is 93.7 pct owned by <Bell
Resources Ltd>.
Note - All figures in U.S. Dollars as the company is
registered in Bermuda.
| Corporate News |
Bank of Japan keeps intervening to hold dollar above 149 yen, brokers
|
Bank of Japan keeps intervening to hold dollar above 149 yen, brokers
| Financial Reports |
JAPAN INTERVENING TO KEEP DOLLAR UP, BROKERS
| The Bank of Japan is continuing to
intervene in the Tokyo market, buying small amounts of dollars
to hold the unit above 149 yen, brokers said.
They said the Bank is coming in when the dollar is around
149.05/10 yen, the same levels as New York's close yesterday
and the midday close in Tokyo today.
Dealers said the Bank of Japan is intervening in the market
through both banks and brokers this afternoon.
The central bank is checking selling orders through banks
and placing matching buy orders, they said.
The central bank started to intervene shortly after the
market opened here in the afternoon, the dealers said.
| Financial Reports |
U.K. MONEY MARKET DEFICIT FORECAST AT 350 MLN STG
| The Bank of England said it forecast a
shortage of around 350 mln stg in the money market today.
Among the main factors affecting liquidity, bills maturing
in official hands and the take-up of treasury bills will drain
some 525 mln stg while bankers' balnces below target will take
out around 175 mln stg.
Partly offsetting these outflows, exchequer transactions
and a fall in note circulation will add some 300 mln stg and 40
mln stg to the system respectively.
| Financial Reports |
Current exchange rates almost within levels agreed by major nations - Sumita
|
Current exchange rates almost within levels agreed by major nations - Sumita
| Financial Reports |
Sumita says major nations cooperated to stabilise currencies.
|
Sumita says major nations cooperated to stabilise currencies.
| Financial Reports |
THAILAND'S FOREIGN RESERVES FALL IN FEBRUARY
| Thailand's foreign reserves of gold,
special drawing rights and convertible currencies fell to 3.86
billion dlrs at end-February from 3.95 billion the previous
month, but were above the 3.08 billion held at the same time
last year, the Bank of Thailand said.
It said the reserves were equal to about five months' worth
of imports.
| Financial Reports |
EXCHANGE RATES ALMOST WITHIN G-6 LEVELS - SUMITA
| Bank of Japan governor Satoshi Sumita
said that current exchange rates are almost within the levels
agreed to by six major nations last month in Paris.
Asked whether a dollar/yen rate of 148 or 149 reflected
economic fundamentals, he said current rates almost reflect
fundamentals.
Sumita told reporters major nations have cooperated to
bring about currency stability in line with the Paris
agreement, which stipulated that they would closely cooperate
to that end. He repeated the central bank will intervene if
necessary, adding he did not think a dollar free-fall was
likely.
But Sumita said he could not say exactly what currency
levels would be considered in line with underlying economic
fundamentals.
In Paris on February 22, Britain, Canada, France, Japan,
the U.S. And West Germany agreed to cooperate to hold
currencies around their then current levels.
Sumita said he could not find any specific reasons behind
the fall of the dollar to a record low against the yen
yesterday. But he said the market rushed to sell dollars as it
nervously reacted to statements abroad and to developments
surrounding trade tensions.
U.S. Treasury Secretary James Baker said over the weekend
that the Paris pact did not encompass fixed tragets for the
dollar. U.S. Trade Representative Clayton Yeutter called
U.S/Japan relations on certain key trade issues very strained.
The market reacted nervously because the dollar has been
moving narrowly against the yen since mid-January, Sumita said.
He added he does not expect the yen/dollar exchange rate to
remain unstable because the market is concerned about a sharp
rise of the yen.
The Bank of Japan will keep a close watch on exchange rates
in line with the Paris accord, he added.
| Corporate News |
N.Z. TRADE SURPLUS 119.1 MLN DLRS IN FEBRUARY
| Preliminary trade figures for
February show an excess of exports over imports of 119.1 mln
N.Z. Dlrs, a Statistics Department statement said.
This compares with a 3.3 mln dlr deficit (revised from 1.7
mln) in January and a 36.1 mln dlr deficit in February 1986.
Exports rose to 998.4 mln dlrs, from 889.2 mln (revised
from 889.5) in January and 903.2 in February 1986. Imports
dropped to an estimated 879.4 mln dlrs from 892.5 (revised from
891.2) in January and 939.3 in February 1986. The deficit for
the eight months to the end of February was 15.3 mln dlrs, as
against 1.057 billion dlrs in the same period a year ago.
| Corporate News |
Sumita says Bank of Japan has no intention of lowering its discount rate
|
Sumita says Bank of Japan has no intention of lowering its discount rate
| Financial Reports |
JAPAN DOES NOT INTEND TO CUT DISCOUNT RATE-SUMITA
| Bank of Japan governor Satoshi Sumita
said the central bank has no intention of cutting its discount
rate again as a way of preventing the yen's rise.
He told a press conference that the growth of Japanese
money supply remains high.
The bank will have to watch closely various developments
resulting from its already eased monetary stance, such as the
sharp rise in real estate and stock prices, he said.
Although the yen's rise will have a greater deflationary
impact on the economy, the economy is not likely to slow down
much further, Sumita said.
"I don't think we should change our economic outlook at the
moment," Sumita said.
Sumita has said in the past that he expects the economy to
show a gradual upturn in the second half of the year.
The governor said the six major industrial nations are
expected to review last month's pact on currency stability when
they meet next in April.
Dealers said they expect the six - Britain, Canada, France,
Japan, the U.S. Amd West Germany - to meet just before the
IMF/World Bank interim committee meeting in Washington starting
on April 9.
| Other |
JARDINE MATHESON PROFITS SEEN UP SHARPLY IN 1986
| A strong performance by its retail
businesses and affiliates will enable Jardine Matheson Holdings
Ltd <JARD.HKG> to report on Friday a big leap in net profit in
1986, stock analysts said.
They told Reuters they expect the firm to show earnings of
between 420 mln and 450 mln H.K. Dlrs last year against 157 mln
in 1985.
The analysts also said they expect Jardine Matheson to pay
a total dividend of 15 to 20 cents a share against 10 cents a
share in 1985.
James Capel (Far East) Ltd estimates Jardine Matheson's
1986 profits at 450 mln dlrs and attributes most of the income
to retail sales.
Analysts said the group's 7-Eleven retail stores and its
franchises, among them Canon cameras, Christian Dior luxury
goods and Mercedes Benz cars, produced a strong cash flow.
Alan Hargreaves of Hoare Govett Asia Ltd also put Jardine
Matheson's 1986 net profits at 450 mln dlrs and said he
estimates pre-tax earnings from retail operations at about 465
mln dlrs against 339 mln in 1985.
But Hargreaves said Jardine Matheson's earnings from its 35
pct stake in Hong Kong Land Co Ltd <HKLD.HKG> will fall to
about 230 mln dlrs from 281 mln dlrs in 1985.
The reduced contribution reflects the spin-off from Hong
Kong Land of <Dairy Farm International Ltd> last September.
Jardine gained a direct holding of 35 pct of Dairy Farm as
a result of the spin-off. Analysts said Jardine will book
revenues from its Dairy Farm stake for the final months of the
year as part of its retail business, which will increase its
overall retail income figures.
Analysts said Jardine Matheson will also enjoy sharply
increased revenues from financial services, mainly its 50 pct
share of <Jardine Fleming Holdings Ltd>.
Jardine Fleming yesterday reported record profits for 1986
of 209.5 mln dlrs against 104.7 mln in 1985.
Analysts said Jardine Matheson made net interest payments
of about 200 mln dlrs last year, slightly below the 213 mln
dlrs of 1985, while the company's term debt remained at about
the 1985 level of 2.7 billion dlrs.
But Jardine was also subject to increased taxes of 340 mln
dlrs last year against 292 mln in 1985, they said.
Jardine Matheson is undergoing a series of reorganisations
that will in effect turn it into a holding company for its
diverse interests.
It previously announced a plan to sell its stakes in both
Hong Kong Land and Dairy Farm to newly created <Jardine
Strategic Holdings Ltd> in which it has a 41 pct interest.
A company statement issued last month said the firm will
use the proceeds to repay all debt, leaving it with an
additional 500 mln dlrs in cash on hand.
Though Jardine Matheson will be deprived of a direct stake
in the high-yield Hong Kong Land and Dairy Farm units, it is
likely to develop its own business, analysts said.
"The future of the stock will depend on the firm's ability
to creatively structure some new acquisitions," said Hargreaves
of Hoare Govett.
He noted the firm has suggested financial services as a key
sector, and he said it may add some insurance firms to its
existing business.
| Corporate News |
CHINA'S FIRST JOINT VENTURE BANK REPORTS PROFIT
| China's first joint venture bank, Xiamen
International Bank (XIB), reported a group net profit of about
14 mln Hong Kong dlrs in 1986, the bank's first full year of
operation.
General manager Liu Shuxun declined to give a 1987 profit
forecast, saying targets were under study.
Assistant general manager Wang Hongshan said the group's
outstanding loans at end-1986 totalled 620 mln Hong Kong dlrs,
up from 530 mln at end-1985. Deposits and interbank borrowings
rose to 680 mln dlrs from 550 mln, he told Reuters.
Liu said most of the group's profit came from the parent
company rather than its two wholly-owned subsidiaries <Xiamen
International Finance Co Ltd> in Hong Kong and <Luso
International Bank Ltd> in Macao.
The joint venture bank began operating in September 1985
but did not officially open until March 1986.
Liu said the share in the joint venture of the foreign
partner, Hong Kong-listed <Panin Holdings Ltd>, had been cut
last year to 49 pct from 60 pct. This was done because foreign
banks felt the XIB's reputation would be improved if the three
Chinese partners collectively held a majority stake, he said.
Liu said news reports about problems concerning Panin were
unfounded, but he did not elaborate. Panin Holdings reported a
loss of 1.99 mln Hong Kong dlrs in 1986 after a net profit of
268,000 dlrs in 1985.
The Chinese partners are Industrial and Commercial Bank of
China, Fujian branch, whose share rose to 23.5 pct from 15,
Fujian Investment and Enterprise Corporation 17.5 pct (15) and
Xiamen Construction and Development Corporation 10 pct (10).
One foreign banker said Xiamen International Bank faced the
same problems as foreign bank branches in trying to compete on
unequal terms with state-owned banks.
The foreign banking market in Xiamen is thin and almost
saturated, he added.
Officials of the joint venture bank said they benefitted
from contacts made through its three Chinese partners. But the
foreign banker, who asked not to be named, said it faced
internal competition from the Industrial and Commercial Bank.
Apart from Xiamen International Bank and the International
Agricultural Development Bank planned by the World Bank and the
state-owned Agricultural Bank of China, Xiamen has eight
foreign bank branches or representative offices, mostly of Hong
Kong or overseas Chinese banks.
| Corporate News |
BANGLADESH'S PAYMENTS DEFICIT NARROWS IN OCTOBER
| Bangladesh recorded an overall balance of
payments deficit of 8.3 mln U.S. Dlrs in October against a
10.33 mln deficit in September and a 6.67 mln surplus in
October 1985, Central Bank officials said.
The country's current account deficit narrowed to 10.69 mln
dlrs in October from 79 mln in September and 11.75 mln in
October 1985.
The October trade deficit narrowed to 36.36 mln dlrs from
160 mln in September and 83.79 mln in October 1985.
| Financial Reports |
TWO JAPANESE STEELMAKERS TO CUT CAPITAL SPENDING
| Nippon Steel Corp <NSTC.TOK> said it will
cut its capital spending by 36.4 pct to 105 billion yen in the
year starting April 1 from a year earlier due to the
postponement of furnace improvements.
<Nisshin Steel Co Ltd> said it will spend 10.7 billion yen
in 1987/88 for rationalisation and facility improvements, down
from 32.1 billion a year earlier, after completion of large
construction projects in 1986/87.
But capital spending by Nippon Kokan K.K. <NKKT.TOK> to
improve and increase its production facilities will rise to
94.90 billion yen from 64 billion, the company said.
| Corporate News |
NISSAN AFFILIATE TO ACQUIRE U.S. AUTOPARTS MAKER
| <Kokusan Kinzoku Kogyo Co Ltd> (KKK), a
Japanese autoparts maker owned 25 pct by Nissan Motor Co Ltd
<NSAN.T>, has exchanged a memorandum to acquire over 50 pct of
U.S. Autoparts firm <Master-Cast Co> to avoid losses on U.S.
Sales caused by the yen's rise against the dollar, a KKK
spokesman said.
The final agreement should be signed this year when KKK
forms the new company <Alfa K Technology>, he said.
The new firm should supply all the U.S. Major car makers,
including Ford Motor Co <F>, General Motor Corp <GM> and
Chrysler Corp <C>, he said.
| Other |
YEN MAY RISE TO 140 TO THE DOLLAR, NIKKEIREN SAYS
| The yen could rise to 140 yen to the
dollar, a leading Japanese businessman said.
Bumpei Otsuki, president of the influential Japan
Federation of Employers' Associations, (Nikkeiren), told
reporters: "The yen might rise as far as 140 (to the dollar).
The U.S. Economy is not good, and as long as the U.S. Economy
is not good, the U.S. Will put various pressures (on Japan)."
"The yen's level depends on the condition of the U.S.
Economy rather than Japan's economy, and as long as the
American situation is bad, the yen will continue to rise," he
said.
To cope with the negative impact of the strong yen,
Japanese enterprises must strive to cut costs by all means,
including holding down wages as much as possible, Otsuki said.
He rejected recent calls from some government quarters for
wage increases this year as a means of raising private
consumption and thus boosting domestic demand.
"We have to keep wages as low as possible," he said.
He also said the yen's large and rapid rise is depressing
the outlook for the Japanese economy, noting that in addition
to hurting exporters it is also damaging domestic market
manufacturers through cheap imports.
Parts of the service sector are also threatened, Otsuki
said.
Tertiary industries provide services to manufacturers and a
downturn in manufacturing profits will adversely affect service
industries, he said.
It is also doubtful whether the tertiary sector can fully
employ those put out of work in the manufacturing sector, he
said.
Profits of service sector companies are likely to fall in
the business year ending in March 1988, leading to a possible
recession in the Japanese economy, he said.
Otsuki said economic growth is unlikely to pick up beyond
levels experienced in 1986.
The government's Economic Planning Agency said last week
the economy grew at 2.5 pct in 1986, the worst performance
since 1974 when the economy shrank 1.4 pct due to the first oil
price crisis.
In order to stimulate domestic demand and boost the
economy, tax reforms aimed at bringing down the cost of land
and reforming the nation's housing stock are needed, along with
steps to bring down the high cost of commodities, he said.
| Other |
SAUDI RIYAL DEPOSIT RATES EASE
| Saudi riyal interbank deposit rates
eased across the board in a dull market which was long in
day-to-day funds, dealers said.
Today's quiet market continued a lull of several days in
which traders were said to be waiting on the sidelines ahead of
further clues to the direction of oil prices and the Saudi
economy.
Dealers cited some borrowing interest in two, three, and
six-month deposits but said activity focused on short dates and
one-month deposits as banks tried to lend surplus funds.
Spot-next was put at 5-3/4, 5-1/4 pct, down from six, 5-1/2
yesterday while one-week rates were steady at six, 5-1/2 pct.
One-month deposits declined to 6-1/4, 1/8 pct from 6-1/2,
1/4 on Monday, while three months was barely changed at seven,
6-15/16 pct.
The spot riyal was little changed at 3.7501/03 to the
dollar after quotes of 3.7498/7501 yesterday.
| Corporate News |
BRUSSELS - Ferruzzi says it will pay 630 mln dlrs to CPC International for European mills.
|
BRUSSELS - Ferruzzi says it will pay 630 mln dlrs to CPC International for European mills.
| Corporate News |
VIETNAM TO RESETTLE 300,000 ON STATE FARMS IN 1987
| Vietnam will resettle 300,000 people on
state farms known as new economic zones in 1987, to create jobs
and grow more high-value export crops, the communist party
newspaper Nhan Dan said.
Yesterday's edition, received here today, said Vietnam
would invest one billion dong, including the costs of
relocation, in 272 new economic zones. About one third of that
sum would be spent on export crops such as coffee, tea, rubber
and pepper in the Central Highlands, it said.
Since 1975, Vietnam has resettled about three million
people from cities and crowded river deltas to the zones.
| Commodities and Trade |
MADAGASCAR EXTENDS AMOCO OIL EXPLORATION AGREEMENT
| Madagascar extended its oil
exploration agreement with the U.S. Firm Amoco Corp <AN> for 17
months to allow for further studies of the Morondava basin on
the southwest coast, a government statement said.
It said the existing five-year agreement, due to expire
this July 24, was extended until the end of 1988 to allow for
additional geological and geophysical studies.
Amoco has so far laid 7,100 km of seismic lines and sunk
five exploration wells in the Morondava basin. It may drill a
further three wells before the end of the extended exploration
period, the statement said.
Madagascar has signed oil exploration agreements with four
foreign oil companies since 1981. But despite promising
indications of large reserves, no commercial production plans
have yet been announced.
The foreign firms - Amoco, Occidental Petroleum Corp <OXY>,
Mobil Corp <MOB> and a unit of <Ente Nazionale Idrocarburi> -
are working in partnership with the National Military Office
for Strategic Industries (OMNIS).
Roland Ratsimandresy, the director general of OMNIS, said
at a ceremenony to sign the extension of the Amoco agreement
that his department would intensify oil exploration with its
existing partners and would soon offer a new round of
exploration licences.
| Financial Reports |
FERRUZZI DEAL WITH CPC WORTH 630 MLN DLRS
| The Ferruzzi Group's holding company
Agricola Finanziara SpA will pay 630 mln dlrs for the European
corn wet milling business of CPC International Inc under the
agreement reached in principle between the two companies, a
statement by Ferruzzi released by its Brussels office said.
When CPC announced the agreement yesterday in New York, it
said only that the price would be in excess of 600 mln dlrs.
Ferruzzi said the deal is subject to agreement on several
clauses of the contract and needs government authorisations.
It said the deal would involve 13 starch factories
employing about 5,000 people in eight European Community
countries plus facilities and commercial operations in other EC
states.
The factories have a capacity to produce the equivalent of
1.6 mln tonnes of starch in starch and by-products a year, or
about one third of EC production, from about 2.7 mln tonnes of
cereals.
Ferruzzi said the acquisition of these assets would extend
its presence in the European agro-industrial industry both
geographically and in terms of products.
It said it is already the principal EC producer of sugar
and of soya oil and cake, and the major cereal trader.
It noted that EC output of isoglucose is subject to maximum
quotas, of which CPC currently holds a 25 pct share, and said
it foresaw an increase in other industrial uses of starch in
the future, notably in the production of ethanol for fuel.
Raul Gardini, president of the Ferruzzi Group, said the
present management of the CPC milling business will be asked to
remain in their posts.
| Corporate News |
SWIRE PACIFIC LTD <SWPC.HKG> YEAR 1986
| Shr "A" 138.9 H.K. Cents vs 97.4 (adjusted)
Shr "B" 27.8 cents vs 19.5
Final div "A" 44 cents vs 32.3, making 62 vs 47 (adjusted)
Final div "B" 8.8 cents vs 6.5, making 12.4 vs 9.4
Net 1.78 billion dlrs vs 1.23 billion
Turnover 16.6 billion vs 13.7 billion
Note - Net profits excluded extraordinary gains of 1.38
billion dlrs vs 59.1 mln. The non-recurrent earnings mainly
derived from the firm's sale of a 15.75 pct stake in Cathay
Pacific Airways Ltd <CAPH.HKG> in April.
Note - Earnings per share and dividends have been adjusted
for the firm's two-for-one bonus issue made in April.
Note - Bonus issue one-for-five for both "A" and "B" shares
against two-for-one.
Note - Dividends payable June 2, books close April 16 to
24.
Note - Net asset value per "A" share 6.94 dlrs vs 4.81 and
per "B" share 1.39 dlrs vs 0.96.
| Financial Reports |
BAT Industries 1986 pretax profit 1.39 billion stg vs 1.17 billion
|
BAT Industries 1986 pretax profit 1.39 billion stg vs 1.17 billion
| Financial Reports |
BAT INDUSTRIES PLC <BTI.L> 1986 YEAR
| Shr 53.51p vs 45.72p
Div 8.8p vs 7.35p making 14.3p vs 12.1p
Turnover 19.17 billion stg vs 17.05 billion
Operating profit 1.48 billion vs 1.29 billion
Pretax profit 1.39 billion vs 1.17 billion
Tax 524 mln vs 430 mln
NOTE - The company said shareholders would be given the
option of receiving dividend in cash, ordinary shares or
combination of the two.
Operating profit includes -
Commercial activities 1.08 billion vs 988 mln
Financial services 263 mln vs 135 mln
Share of associated companies 139 mln vs 163 mln
Investment income 150 mln vs 166 mln
Interest paid 238 mln vs 286 mln
Minorities 76 mln vs 63 mln
Extraordinary credit 75 mln vs 34 mln debit
Transfer to revaluation reserve 85 mln vs 106 mln
Profit attributable 793 mln vs 673 mln
Required inflation retention 77 mln vs 147 mln
Trading profit 1.51 billion vs 1.29 billion
Trading profit includes -
Tobacco 764 mln vs 738 mln
Retailing 211 mln vs 186 mln
Paper 217 mln vs 168 mln
Financial services 282 mln vs 135 mln
| Financial Reports |
SWIRE PLANS BONUS ISSUE ON HIGHER 1986 PROFITS
| Swire Pacific Ltd <SWPC.HKG> said it
plans for a one-for-five bonus issue for both its "A" and "B"
shares following an earlier report of a 44.7 pct jump in 1986
net profits to 1.78 billion H.K. Dlrs.
The company also announced final dividends of 44 cents per
"A" share and 8.8 cents per "B" share against 32.3 and 6.5 cents a
year ago.
It recorded extraordinary gains of 1.38 billion dlrs which
mainly derived from the sale in April of a 15.75 pct stake in
Cathay Pacific Airways Ltd <CAPH.HKG> in line with the
floatation of the airline.
| Corporate News |
Japan Trade Ministry asks trade houses, exporters to reduce dlr sales, sources
|
Japan Trade Ministry asks trade houses, exporters to reduce dlr sales, sources
| Other |
SRI LANKAN GOVERNMENT TO STOP IMPORTING SUGAR
| The Food Department will no longer
import sugar from April 1, senior officials of the Food and
Cooperatives Ministry and the Department told Reuters.
They said the decision was taken after the Sugar Importers
Association asked that the sugar trade be further liberalised.
"The Food Department will cease trading in sugar and will no
longer hold a buffer stock," a senior official said.
He said the government has finalised an agreement with
E.D.F.Man (Sugar) Ltd under which E.D.F.Man will hold a buffer
stock on the government's behalf of 20,000 tonnes, against the
45,000 tonne buffer stock usually held by the Department.
Officials said the size of the buffer stock has been
reduced because the private sector will hold its own stocks.
The agreement with E.D.F. Man includes details such as
trigger pricing mechanisms, they said.
Four months ago the Department allowed the private sector
to import sugar without government clearance. The Department
and the private sector each imported around 115,000 tonnes of
sugar last year, when national consumption was 280,000 tonnes.
An Importers Association official said that "even if the
Department no longer imports sugar, we would not necessarily
buy more."
This is because the Association would still have to compete
with the Cooperatives Wholesale Establishment (CWE), he said.
The CWE is a semi-government body and the official said
arrangements are being made for state cooperatives and holders
of food subsidy stamps to draw their sugar from it, starting
April 1.
Ministry officials said the CWE can either import sugar or
buy it from a local bonded warehousing scheme run by E.D.F. For
the past two years.
| Corporate News |
NEW DUTCH SPECIAL ADVANCES TOTAL 4.2 BILLION
| The Dutch Central Bank said it
allocated 4.183 billion guilders at tender for the new 5.3 pct,
nine-day special advances.
Bids were fully met for the first 200 mln guilders and for
40 pct above.
The new advances for the period March 25 to April 4,
replace current 5.3 pct, five day advances totalling 4.003
billion guilders which expire today.
Money brokers said yesterday they expected the Bank to
allocate about 3.5 billion guilders.
| Market and Economy |
DANISH FEBRUARY CONSUMER PRICES FALL 0.1 PCT
| Consumer prices fell 0.1 pct in
February, after a rise of 0.2 pct in January and no change in
February 1986, the National Statistics Office said.
The index, base 1980, fell to 154.5 in February from 154.6
in January, against 147.4 in February 1986, giving a
year-on-year increase of 4.8 pct.
| Financial Reports |
JAPAN ASKS TRADERS, EXPORTERS TO CUT DOLLAR SALES
| The Ministry of International Trade and
Industry (MITI) has asked about 30 Japanese trading houses and
exporters to refrain from excessive dollar selling, trading
house officials said.
The officials told Reuters MITI asked them to moderate
their foreign exchange trading because the excessive rise in
the yen will have unfavourable effects on the economy. It made
the request by telephone.
A MITI official said the ministry has conducted a survey of
foreign exchange trading by trade houses and exporters. But he
said it was not aimed at moderating dollar selling.
The trading house officials said MITI had asked them to
undertake foreign exchange transactions with due consideration
to the adverse effects excessive exchange rate movements would
have on the economy.
The MITI official said MITI undertakes such surveys when
exchange rates fluctuate widely. A similiar survey was made
when the currency fell to the previous record low of 149.98 on
January 19. It hit a new record low of 148.20 yen yesterday.
He said the survey showed currency transactions by trade
houses and exporters contributed little to the dollar fall.
| Financial Reports |
MIDDLE EAST CURRENCY MARKET SEES KEY CHANGES
| Middle East currency dealers meet in
Abu Dhabi this weekend at a time of fundamental change in their
business, which has seen a growing volume of trade shift from
the Arab world to London.
The 14th congress of the Inter-Arab Cambiste Association
also comes at a time when the prospect of a unified Gulf
currency system is more real that at any time this decade.
Foreign exchange traders and bank treasurers said these
issues, and the slide of the Lebanese pound, can be expected to
be major talking points.
About 250 traders and treasurers from some 115 banks --
including some in London and other major non-Arab financial
centres -- are expected to attend the conference which begins
on on Saturday.
Bankers said it is hard to avoid the impression that a
growing proportion of transactions in the Saudi riyal market,
by far the largest in the region, is being carried out in
London.
The market had been dominated by Saudi Arabia's 11 banks,
foreign exchange houses in the Kingdom and offshore banks in
Bahrain. But bankers said more and more Saudi and Bahrain-based
banks are boosting their treasury operations in London.
As recession hit the Middle East and the need for trade
finance in the region declined, many offshore banks in Bahrain
ran down their currency operations. None of the four major U.K.
Clearing banks now has a dealing room on the island.
The two major Bahrain-based international banks, <Arab
Banking Corp> and <Gulf International Bank BSC> have increased
their presence in London and Saudi banks are busy upgrading
representative offices to branch status to allow dealing.
One economist said: "It is cheaper to run a riyal book in
London than staff an expensive offshore operation in Bahrain...
There is now the nucleus of a two-way market in London."
Jeddah-based <Riyad Bank> set up as a licensed deposit
taker in London in 1984, while its main rival in Saudi Arabia,
<National Commercial Bank> (NCB) won a licence in November
1986.
The major market maker has traditionally been London-based
consortium bank <Saudi International Bank> but the kingdom
joint-venture <Saudi American Bank> (SAMBA) also upgraded its
London operation to deposit taker status in mid-February.
One senior currency trader in Riyadh said: "Inevitably the
volume of business in London has gained pace with the two new
licences for NCB and SAMBA, but there is no question that most
of the liquidity still rests in Saudi Arabia."
Currency traders said the shift to London in the Saudi
riyal market is difficult to quantify.
Bahrain Monetary Agency figures show regional currency
deposits held by offshore banks, most in Saudi riyals, dropped
to the equivalent of 12.2 billion dlrs at end-September 1986
from 13.4 billion at end-1985 and a 1983 peak of 15.0 billion.
The shift has prompted changes in dealing habits. Riyal
trading in the Gulf on Saturdays and Sundays has become very
quiet with London closed while some Saudi and Bahrain banks now
staff offices on Friday, the Gulf weekend. Traders also expect
<Arab National Bank> to step up London operations.
Traders say it is difficult to foresee the riyal market
moving completely out of the region, partly because of local
demand and partly because of what is seen as the Saudi Arabian
Monetary Agency's (SAMA) desire to moderate
internationalisation of the riyal and protect it from undue
speculation.
There have been far fewer signs of the Kuwaiti dinar market
shifting from its natural base of Kuwait and trading in Bahrain
and London is still limited.
But for the first time since the formation of the six
nation Gulf Cooperation Council (GCC) in 1981 there are signs
that a much mooted currency union could come into force soon.
Currency traders said it remains unclear what form a final
currency union would take for the six states -- Saudi Arabia,
Kuwait, Bahrain, Oman, Qatar and the United Arab Emirates.
But plans to link the six currencies in a European Monetary
System style with a common peg have been discussed at high
level and could be a topic on the GCC's annual summit expected
to be held in Saudi Arabia late in the year.
One dealer said: "A lot of exposure is being given to
discussions and plans appear to be quite advanced. But in the
end a political decision has to be taken to give the go-ahead."
One open question is that of a common peg for currencies.
The idea of linking the six currencies has been debated
since the start of the GCC. The Kuwaiti dinar is currently
linked to a basket of currencies while the other five
currencies are either officially or in practice linked to the
U.S. Dollar.
Some traders said a currency union could mean speculation
against the Saudi riyal rubbing off on other Gulf currencies,
but plans call for a permitted divergence in the system of
7-1/4 pct, large enough to avoid sudden strains.
Another topic for debate is expected to be the continued
slide of the Lebanese pound against the dollar and the
undermining of the effective capital base of Lebanese banks.
| Market and Economy |
BELGOLUX TRADE SWINGS INTO JANUARY DEFICIT
| The Belgo-Luxembourg Economic Union
recorded a provisional trade deficit of 9.45 billion francs in
January after a December surplus of 15.32 billion francs,
revised upwards from a provisional surplus of 11.94 billion,
the National Statistics Office said.
In January 1986, the union recorded a deficit of 23.31
billion francs.
January imports fell to a provisional 228.86 billion francs
from 240.24 billion in December and 281.65 billion a year
earlier, but exports were also lower, at 219.41 billion francs
against 255.56 billion and 258.34 billion respectively.
| Market and Economy |
GUINNESS SEEKS U.K. INJUNCTION AGAINST SAUNDERS
| Guinness Plc <GUIN.L> will seek an
injunction in the U.K. High Court today to freeze the assets of
former Chairman Ernest Saunders in its attempts to recover 5.2
mln stg paid to a Jersey company as part of the company's
takeover battle for <Distillers Co Plc>, a spokesman said.
He said the court move aimed to freeze Saunders' assets up
to the value of the sum it wanted to recover. It was uncertain
whether the court would reach any decision on the request
today. Guinness said last week it planned to take legal action
to recover the funds, paid to non-executive director Thomas
Ward via the Jersey company.
Lawyers representing Ward have said he saw the funds as his
reward for services performed during the takeover of
Distillers.
Guinness is also planning a resolution at the annual
meeting in May to remove both Saunders and Ward from the
company's board.
| Financial Reports |
BASF U.S. PROFIT,TURNOVER BOOSTED BY ACQUISITIONS
| BASF AG <BASF.F>
said net profit of its U.S. Operating company, BASF Corp, rose
last calendar year to 105 mln dlrs from 39 mln in 1985.
Turnover rose by by more than one billion dlrs to 3.6
billion, the parent company said in a statement. The rise,
however, partly reflected the inclusion of the first full
business year of three acquisitions made in 1985. Excluding
these, BASF Corp turnover rose four pct from 1985.
Acquisitions were the high-performance connecting materials
operations of Celanese Corp, Inmont Corp bought from United
Technologies and American Enka bought from AKZO NV <AKZO.AS>.
BASF said it expected a U.S. Investment of 240 mln dlrs in
1987, part of a five-year programme totalling one billion.
U.S. Projects completed in 1986 included the second acrylic
acid plant in Freeport, Texas, a technical centre in
Southfield, Michigan, in which paint lines from automotive
plants can be refitted, and the new agricultural research
centre in Research Triangle Park in Durham, North Carolina.
BASF said that work this year had begun in Geismar,
Louisiana, on plants for production of special amines and
polytetrahydrofuran, as well as for expansion of capacity for
producing tetrahydrofuran.
| Financial Reports |
BICC PLC <BICC.L> 1986 YEAR
| Shr 22.7p vs 20.3p.
Final div 8.25p, making 11.75p vs 11p.
Pre-tax profit 101 mln stg vs 92 mln.
Attributable profit 45 mln vs 39 mln.
Turnover 2.14 billion stg vs 2.11 billion.
MORE
| Financial Reports |
TAIWAN MONEY SUPPLY RISES 48.22 PCT IN YEAR
| Taiwan's M-1B money supply rose a
seasonally adjusted 48.22 pct in the year to end-February,
after rising 54.96 pct in the year to January, a central bank
spokesman said.
Month on month, M1-B fell 5.19 pct from January.
Unadjusted February M1-B was 1,168 billion dlrs against
1,232 billion in January and 788 billion in February 1986.
Money supply grew faster in January because the central
bank issued more currency for bonus payments made to workers at
the Lunar New Year, which fell on January 29 this year, banking
sources said.
| Financial Reports |
PEMEX SIGNS 500 MLN DLR JAPAN LOAN FOR PIPELINE
| Mexican state oil firm Petroleos Mexicanos
(Pemex) signed for a 500 mln dlruntied loan from the
Export-Import Bank of Japan to finance its Pacific Petroleum
Project, Pemex Japan representative Tito Ayal said.
No further details on the loan were immediately available.
Ayala told an oil seminar the project, due for completion
in 1988, is aimed at improving distribution of oil products in
the domestic market, mainly along the Pacific coast.
The project consists of a pipeline linking Nueva Teapa on
the Gulf of Mexico with Salina Cruz on the Pacific Coast, and
construction of the second phase of the Salina Cruz refinery.
The project also includes construction of liquified
petroleum gas (LPG) storage tanks at Santa Cruz, additional
crude oil storage at both ends of the pipeline, an ammonia
complex at Lazaro Cardenas on the Pacific Coast and expansion
of the infrastructure of the port of Salina Cruz, Ayala said.
Pemex will buy 80 mln dlrs worth of foreign equipment and
materials for the project, he said. The new pipeline will
enable Japan to load Mexico's Maya crude oil at Salina Cruz
rather than in the Gulf of Mexico. Pemex will also have some
LPG surplus available in Salina Cruz that may help Japan
diversify its supply sources of that product, he added.
| Financial Reports |
NIPPON STEEL TO REDUCE DIVIDEND
| Nippon Steel Corp <NSTC.T> plans to
reduce its dividend to three yen in the year ending March 31
1987 from the five yen of 1985/86, a company spokesman said.
The company estimated parent company current losses at 15
billion yen in 1986/87, including a gain of 95 billion yen from
the sale of securities. This compares with a 36.07 billion yen
profit a year earlier.
Sales in 1986/87 are seen at 2,150 billion yen, down from
2,685 billion a year ago.
Poor business prospects were attributed to the yen's rise
and slow world steel demand. Nippon is expected to report
parent company results in late May.
Total 1986/87 crude steel production is estimated at 25.57
mln tonnes, down from 27.98 mln a year earlier.
Crude steel production is likely to be below 1986/87 output
but forecasts for profits and sales in the year starting April
1 are unavailable yet, he said.
| Financial Reports |
BAT SEES STRONG PERFORMANCE FROM ALL SECTORS
| A strong performance from all BAT
Industries Plc's <BTI.L> major sectors enabled the group's 1986
pretax profits to pass the one billion stg level for the third
year running, Chairman Patrick Sheehy said in a statement.
The group earlier reported a 19 pct rise in profits to 1.39
billion, which Sheehy said was achieved without any help from
exchange rate fluctuations or acquisitions.
Good results were achieved by its Argos and Saks Fifth
Avenue in retailing and by Wiggins Teape and Appleton in paper.
Tobacco accounted for about 50 pct of profit with a four
pct gain to 764 mln stg and a two pct increase in world volume.
The results were largely in line with analysts expectations
and BAT shares firmed by two pence to 537p at 0955 GMT.
BAT said the U.S. Brown and Williamson unit held most of
its 1985 gains and increased profit 18 pct in dollar terms.
Financial services saw profits double to 282 mln with both
Eagle Star and Allied Dunbar achieving further growth.
Allied Dunbar reported a 51 pct rise in life annual
premiums to 39 mln stg. BAT said it increased new business by
38 pct in the last nine months after a relatively slow first
quarter. Its permanent health insurance was now the market
leader and its Unit Trust group was now the second largest in
the U.K.
Eagle Star general premiums rose 32 pct to 1.03 billion.
Its life activities also grew 39 pct with better underwriting
results in the second half.
Cash flow was strong and the gross debt to equity ratio
dropped to 41 pct from 51 pct. The net ratio, at 26 pct, left
the group strongly placed to pursue its further development.
Profits from paper and pulp grew 29 pct to 217 mln stg,
nearly three times the 1982 level, with Wiggins Teape's sales
rising 36 pct to pass one billion stg.
BAT said in 1986 it had sold 88 BATUS stores in the U.S.
For 644 mln dlrs and sold Grovewood Securities for 142 mln stg.
| Market and Economy |
TAIWAN SEES ITS INVESTMENT IN U.S. RISING SHARPLY
| Taiwanese investment in the U.S. Is
expected to nearly double to 80 mln U.S. Dlrs in calendar 1987
and rise to 400 mln dlrs a year by 1991, a five-year forecast
by the Economic Ministry showed.
Taiwanese investment in the U.S. Last year totalled 46 mln
dlrs, the ministry document said. The investment was mainly in
electronics, trading, food and service industries.
Lee Ming-Yi, deputy director of the ministry's Industrial
Development and Investment Centre, said the forecast rise is
due to planned government incentives and growing willingness
among Taiwanese to invest abroad.
Lee told Reuters the incentives, to be introduced in May or
June, include bank loans and a reduction in capitalisation
requirements for businesses seeking to invest in the U.S. To 10
mln Taiwan dlrs from 20 mln.
He said the moves to encourage investment in the U.S. Are
part of Taiwan's efforts to cut its trade surplus with
Washington, which rose to a record 13.6 billion U.S. Dlrs in
1986 from 1985's 10.2 billion.
Taiwanese manufacturers can create jobs for Americans and
avoid import quotas if they set up plants in the U.S., He
added.
| Financial Reports |
BABCOCK INTERNATIONAL PLC <BABK.L> YEAR 1986
| Div 4.7p making 8.7, an increase of 13.9 pct
Shr 16.3p vs 17.9p adjusted
Pretax profit 37.09 mln stg vs 34.55 mln
Net 22.12 mln vs 24.13 mln
Interest payable 8.10 mln vs 5.35 mln
Share of associated co's 6.88 mln vs 5.42 mln
Turnover 1.22 billion stg vs 1.10 billion
| Financial Reports |
DELTA GROUP <DLTL.L> YEAR TO JAN 3.
| Shr net basis 24.8p vs 24.5p
Shr nil basis 22.7p vs 20.9p
Div 5p making 7.6p vs 6.5p
Pretax profit 57.78 mln stg vs 50.61 mln
Net after tax 37.47 mln vs 36.49 mln
Outside shareholders interests 1.75 mln vs 1.32 mln
Extraordinary debit 370,000 vs 1.93 mln
Turnover 533.59 mln vs 555.81 mln
Profit breakdown by activity -
Electrical equipment 28.59 mln stg vs 27.60 mln
Engineering 10.75 mln vs 11.13 mln
Industrial services 18.78 mln vs 16 mln
Corporate finance 340,000 vs 4.12 mln
Making total pre-tax profit 57.78 mln vs 50.61 mln.
| Commodities and Trade |
PLACER PACIFIC SAYS BIG BELL GOLD STUDY EXPANDING
| <Placer Pacific Ltd> said it will
undertake a full feasibility study of Western Australia's Big
Bell gold prospect.
Results of an economic evaluation of the find, in which
Placer has an option with <Australian Consolidated Minerals
Ltd> (ACM) to earn a 50 pct interest, were encouraging enough
to warrant a full study, Placer said in a statement.
Big Bell, in the Murchison goldfield 540 km north east of
Perth, was founded in 1904. Between 1937 and 1955 it yielded
22.8 tonnes of gold and 7.8 tonnes of silver while milling
about 30,000 tonnes of ore a month.
Placer has said the prospect has an estimated 14 mln tonnes
of ore with a three-gram-per-tonne concentration accessible by
open-pit mining and a further 4.5 mln tonnes with a
4.4-gram-a-tonne concentration between 300 and 600 meters
underground.
It said it was obliged to produce the feasibility study no
later than December 31 this year by which time it would have
spent three mln dlrs on Big Bell.
If the results are positive and a commitment to develop
made then construction would take about 12 months, Placer said.
| Other |
BABCOCK EXPECTS FURTHER PROGRESS IN 1987
| Babcock International Plc <BABK.L> said
in a statement accompanying final results for 1986, showing
pretax profits up to 37.09 mln stg from 34.55 mln in 1985, that
overall further progress is expected in 1987.
The predicted slowdown of the U.S. Automobile industry is
affecting the North American group although the improved
performance in the FATA European group during 1986 is expected
to continue into this year.
In the U.K. Overall profitability will improve when the
Central Electricity Generating Board's ordering programme for
both nuclear and fossil-fired fuels starts.
| Commodities and Trade |
EGYPT BUYS 46,000 TONNES OF SUNFLOWERSEED OIL
| Egypt purchased 46,000 tonnes of
optional origin sunflowerseed oil at its import tender
yesterday, all for May arrival, traders said.
The business comprised 41,000 tonnes of crude sunflowerseed
oil in bulk at prices ranging from 344.25 to 348 dlrs and 5,000
tonnes of refined oil in drums at from 517.50 to 522.50 dlrs
per tonne, cost and freight Alexandria, delivered quality
terms.
| Corporate News |
CHINA TO TIGHTEN IMPORT CONTROL, CUT EXPORT COSTS
| China should tighten imports of ordinary
goods and restrict or even forbid import of goods which can be
made domestically, Premier Zhao Ziyang said.
He told the National People's Congress, China's parliament,
that the country's foreign exchange is limited and must be used
where it is most needed.
"We should expand production of import substitutes and
increase their proportion," he said.
On exports, China should increase its proportion of
manufactured goods, especially textiles, light industrial
goods, electronics and machinery, he said.
Zhao said China should lower the cost of exports and
control the export of goods that incur too much loss. In 1986
China had a trade deficit of 11.9 billion dlrs, down from a
record 14 billion in 1985.
Zhao said China should work to provide a more favourable
investment environment for foreign businessmen. It should use
foreign funds for production and construction, with stress on
firms making goods for export or import substitutes.
China should also earn more foreign exchange from tourists
and contracted labour abroad, he added.
| Financial Reports |
WEST GERMANS TO MINT COMMUNITY ANNIVERSARY COIN
| The West German Cabinet approved a plan to
mint a special 10-mark coin commemorating the 30th anniversary
of the European Community this year.
The silver-copper alloy coin will be minted in an edition
of 8.35 mln, a Finance Ministry statement said.
| Corporate News |
SINGAPORE GDP TO GROW SIX PCT IN FIRST QUARTER
| Singapore's gross domestic product
will grow six pct in the first quarter and five pct in the
second quarter this year, with further growth expected in the
second half, Trade and Industry Minister Lee Hsien Loong told
parliament.
The figures compared with 3.4 pct contraction and 1.2 pct
growth respectively for the first and second quarters of 1986.
The estimates were based on a tentative leading indicator
incorporating new business orders, company inventories and
share prices used by his ministry, Lee said, without giving
further details of the new indicator.
Singapore's economy grew 1.9 pct last year, after shrinking
1.8 pct in 1985. The government has forecast growth rate of
three to four pct for 1987.
| Other |
CARGILL U.K. STRIKE TALKS TO RESUME THIS AFTERNOON
| Talks between Cargill U.K. Ltd's
management and unions, aimed at ending the prolonged strike at
its Seaforth oilseed processing plant, will resume this
afternoon, a company spokesman said.
Yesterday's session failed to reach a compromise but some
progress was made, he said.
| Financial Reports |
U.S. M-1 MONEY SUPPLY RISES 2.1 BILLION DLRS IN FEB 16 WEEK, FED SAYS
|
U.S. M-1 MONEY SUPPLY RISES 2.1 BILLION DLRS IN FEB 16 WEEK, FED SAYS
| Financial Reports |
STC PLC <STCL.L> YEAR TO END-1986
| Shr profit 15.9p vs 2.25p loss
Div 3p making 4.5p vs nil
Turnover 1.93 billion stg vs 1.99 billion
Pretax profit 134.2 mln vs 11.4 mln loss
Tax 47.2 mln vs nil
Operating profit 163.0 mln vs 92.7 mln
Interest less investment income 13.8 mln vs 37.2 mln
Exceptional debit 15.0 mln vs 66.9 mln
Minorities 0.3 mln vs 0.4 mln
Extraordinary credit 16.4 mln vs 42.0 mln debit
Operating profit includes -
International computers 90.2 mln vs 61.7 mln
Communications systems 56.1 mln vs 48.7 mln
Components and distribution 20.0 mln vs 1.5 mln
Defence 9.4 mln vs 13.1 mln
| Other |
BRITISH COMPOUND FEED PRODUCTION DETAILED
| Feed compounds, balancers and
concentrates produced in Britain in the five weeks ended
January 31 totalled 973,400 tonnes, against 966,200 tonnes
produced in the same 1986 period, Ministry of Agriculture
figures show.
However, cattle/calf feed output, the largest single
component, was 7.2 pct down at 435,900 tonnes against 469,900
tonnes. Pig feed was 170,800 tonnes versus 171,600, and poultry
feed 287,600 compared with 256,600. Other smaller components
included in the total all showed increases.
| Corporate News |
KLOECKNER UND CO'S 1986 PROFIT FALLS ABOUT 20 PCT
| Kloeckner & Co KGaA, the
international trading group, said its 1986 domestic group net
profit fell by around 20 pct against 1985, adding that the
profit resulted largely from a writing back of reserves.
The company, which gave no 1986 profit figures, posted a
domestic group net profit of 41 mln marks in 1985.
It said the 1986 profit was made possible through a 40 mln
mark write-back of reserves that had been created to cover
possible price rises. These reserves were no longer necessary
because of recent declines in raw material prices.
Kloeckner attributed the profit decline to the fall in
prices as well as the lower value of the dollar.
It said it would pay an unchanged dividend on its ordinary
share capital, which is entirely in private hands and held
largely by family foundations.
Kloeckner's nominal 100 mark profit-participation
certificates, issued in October 1986, will pay a likely yield
of around 10 pct. Holders of the certificates are entitled to a
quarter of the 1986 payment, or around 2.50 marks, the company
added.
| Other |
MIXED ASIAN REACTION TO NEW RUBBER PACT
| Governments of major Asian
producing countries have welcomed the conclusion of a new
International Natural Rubber Agreement (INRA), but growers and
traders are unhappy with the development, according to views
polled by Reuter correspondents.
Officials in Malaysia, Indonesia and Thailand, which
produce the bulk of the world's rubber, said they expected the
new pact to continue to stabilise prices and help their rubber
industries remain viable in the long-term.
But traders and growers said they were against the new pact
because its buffer stock mechanism was likely to interefere
with free market forces and prevent sharp rubber price rises.
The new INRA, to replace the current one which expires on
October 22, was formally adopted by most of the world's
producers and consumers in Geneva last Friday.
It will be open for signature at the U.N. Headquarters in
New York from May 1 to December 31 this year and will enter
into force provisionally when ratified by countries accounting
for 75 pct of world rubber exports and 75 pct of world imports.
Malaysian Primary Industries Minister Lim Keng Yaik said
the formal adoption of a new pact had dispelled fears of
liquidation of some 360,000 tonnes of INRA buffer stock rubber
and a possible depression of prices.
He expressed confidence that the new INRA would continue to
keep prices stable by selling or buying rubber as prices rose
or fell through its buffer stock system.
Malaysia was also happy that in the new INRA financing of
purchases for the normal buffer stock of 400,000 tonnes and a
contingency buffer stock of 150,000 tonnes would be done
through direct cash contributions from members, he said.
Under the existing pact, members can borrow from banks to
finance INRA's buffer stock purchases. This has been viewed
with concern by some members who fear the INRA may become
indebted and ultimately face collapse, like the International
Tin Agreement.
"This will ensure the buffer stock operation is carried out
without any financial encumbrance," Lim said.
Malaysia, the world's largest producer, was seeking
cabinet approval to join the new INRA and hoped other producers
and consumers would also become members, he said.
Officials in Jakarta said the new pact would bring benefit
to Indonesia's rubber industry's by stabilising prices.
It was unlikely to collapse like the tin agreement because
its new financial provisions had been tightened, they said.
Thai officials told Reuters they were optimistic the new
pact was viable because it strictly limited the extent of debt
the INRA buffer stock manager might commit to his market
operations.
Malaysian growers, however, said they preferred a free
rubber market because an INRA had a tendency to keep prices at
levels that were only acceptable to consumers.
"With the INRA's ability to keep prices at a certain stable
level, consumers are assured of rubber at almost a fixed price,
while producers may never see sharp price rises," a Malaysian
Rubber Producers Council source told Reuters.
Producers also wanted a free rubber market without the
overhang of a 360,000 tonne INRA buffer stock which had
psychologically prevented price rises, he said.
State plantation officials in Sri Lanka said prices had
been depressed since INRA's inception and the creation of a
buffer stock, and they seemed unlikely to rise.
Sri Lanka should not be a member of the INRA because it was
expensive to maintain a buffer stock, they added.
Traders in the region, meanwhile, said prices might be
pressured by the new pact in the long term as its potential to
stabilise prices and buffer stock capacity would spur producers
to produce more.
Most Malaysian and Singapore traders said the new pact's
conclusion had little impact on prices and it was unlikely to
allow sharp price fluctuations in future.
"The 360,000 tonnes in the INRA buffer stock must be
liquidated and a free market returned," a Malaysian trader said.
Japanese traders said the new pact had a chance for success
as most world producers and consumers had adopted it, but they
questioned the ability of some financially-strapped producers
to finance buffer stock operations.
| Corporate News |
CIBA-GEIGY, PHILLIPS PETROLEUM IN JOINT VENTURE
| Ciba-Geigy AG <CIGZ.Z> said it would
establish a joint venture with Phillips Petroleum Co. In Europe
to manufacture a high performance engineering thermoplastic.
Initially, the Swiss chemicals firm will manufacture
polyphenylene sulfide compounds using resins from Phillips.
The two firms will later set up a joint venture to produce
the polyphenylene resins and compounds, which will be marketed
independently under their respective trademarks. A Ciba-Geigy
spokesman declined to say how much the venture would cost.
Polyphenylene sulfide is widely used in the electronic,
automotive, and petroleum fields.
| Other |
KRUPP TO BUILD SOUTH KOREAN STEEL PLANT
| Fried. Krupp GmbH said its
Krupp Industrietechnik GmbH subsidiary has won a 130 mln marks
joint order with Samsung Shipbuilding and Heavy Industries Co.
Ltd of Seoul for a steel works in Pohang, South Korea.
It said the order, awarded by the Pohang Iron and Steel Co.
Ltd, involves a works due to go on stream in 1989 producing
250,000 tonnes of non-corrosive quality steels annually.
The consortium partners will supply the plant, supervise
its construction and advise on product processing, with Krupp
providing a 100-tonne capacity arc furnace and a converter for
steel refining.
The West German company will supply ladles, vehicles,
electrical and exhaust cooling apparatus and dust filters. It
will also fit out the plant's laboratory.
Among other things Krupp said it will provide know-how for
all production phases and train the Korean workforce.
It said Samsung will take care of the Korean part of the
engineering and electrical work, the water treatment and other
mechanical equipment, according to Krupp basic engineering.
Extruded ingots from the plant will be converted to sheet
in an existing hot rolling mill. The sheet will be processed in
facilities which are to be erected, Krupp said.
| Market and Economy |
SWIRE EXPECTS CONTINUED GROWTH THIS YEAR
| Swire Pacific Ltd <SWPC.HKG> expects
continued growth in all divisions this year though it sees
problems in the marine sector, chairman Michael Miles said.
He told reporters:"1987 has started well for Cathay Pacific
Airways which looks forward to another good year... Swire
Properties expects further good results both from properties
under development for sale and from its investment property
portfolio."
He did not give any specific projections for earnings. The
company earlier reported 46 pct higher 1986 net profits at 1.78
billion H.K. Dlrs from a year ago.
Swire also had an extraordinary profit of 1.38 billion dlrs
mainly from the sale of a 15.25 pct interest in Cathay Pacific
Airways Ltd <CAPH.HKG>.
Miles said the company will use the money to develop its
business, primarily in Hong Kong.
Swire's stake in Cathay was first reduced to 54.25 pct from
70 pct when Cathay was publicly floated, and then cut to 50.25
pct when Cathay issued new shares amounting to 12 pct of the
enlarged capital to the state-owned <China International Trust
and Investment Corp>. Cathay last week reported its 1986
profits rose to 1.23 billion dlrs from 777 mln a year ago.
Miles said despite last year's rapid expansion in Cathay's
flights and fleet, load factor is still holding up at 70 pct.
He said Cathay's growth last year was the result of "a
marginal increase in the revenue load factor coupled with
savings in fuel costs."
"At present fuel prices are stable and will remain stable
for the rest of this year," he said, "though there might be a bit
of increase later this year.''
Miles said Swire is not abandoning its offshore oil service
operations, even though the marine sector is generally
depressed. "Obviously the marine industry is not getting any
better," he said.
The real estate market remained strong and Swire last year
revalued its property portfolio up 634 mln dlrs compared with
an increase of 864.4 mln dlrs the previous year.
Miles said he expects the property market to remain firm
but said the firm has no available land for a major housing
project such as its Taikoo Shing development on Hong Kong
island now near completion.
He said the company's 50 pct unit <Hongkong United Dockyard
Ltd> is negotiating with the government for the development of
an existing petroleum storage depot into a major housing
estate. "But it's not as big as Taikoo Shing," he said.
| Corporate News |
UNCERTAINTY SURROUNDS EC SUGAR TENDER RESULT-TRADE
| Considerable uncertainty surrounds the
outcome of today's EC white sugar tender, traders here said,
noting it remains overshadowed by European operator threats to
move over 800,000 tonnes of sugar into intervention.
They said that due to the dispute between the Commission
and producers over the issue, it is not clear whether the
Commission will authorise any exports at all or grant licences
on a large tonnage.
The subsidy is seen being set above 45.00 Ecus per 100
kilos, although traders are reluctant to predict a precise
level after prices fell yesterday.
Earlier, traders in Paris said they expected the Commission
to award licences for around 50,000 tonnes of white sugar with
a maximum export rebate of 45.75 to 46.0 Ecus.
Last week, the Commission granted licences to end August on
60,500 tonnes of whites at a maximum rebate of 44.819.
| Other |
ABU DHABI TO REOPEN GULF OILFIELD HIT IN 1986 RAID
| Abu Dhabi's offshore Abu al-Bukhoosh
oilfield in the Gulf, shut since an aerial attack last
November, will reopen when new anti-aircraft defences are
ready, and this could be in the next two months, oil industry
sources said.
They said the Abu Dhabi government and Compagnie Francaise
des Petroles (Total) <TPN.PA>, whose Total Abu al-Bukhoosh
subsidiary owns 51 pct of the field, have agreed on the
reopening, but that a date has not been definitely fixed.
Unidentified planes hit the field, 100 miles off Abu Dhabi,
last November 25.
The raid killed eight workers and destroyed the main living
quarters and a bridge linking a wellhead to the main production
platform.
Western diplomats in the region say Iran was responsible
but Tehran has blamed its Gulf War enemy Iraq.
Abu al-Bukhoosh was producing 57,000 barrels per day (bpd)
at the time of the attack, but the sources said it would resume
at a maximum of half that level because of reduced staff and
the fact only four of five wellheads were now operable.
The sources said only 80 personnel can be housed in
remaining accomodations, the sources said.
Facilities being installed to protect the field include
aircraft detection equipment, anti-aircraft missiles, housing
for military personnel and helicopter landing pads, the sources
said.
Abu Dhabi is the largest oil producer in the United Arab
Emirates, accounting for about 800,000 bpd of its total 1.15
mln bpd production, the sources said.
They also said Iran was working to reopen its Sassan field,
part of the same reservoir as Abu al-Bukhoosh and located only
a few miles away. Sassan was heavily damaged by an Iraqi air
raid only 10 days before Abu al-Bukhoosh was attacked.
| Other |
COMALCO SAYS LOWER COSTS HELPED RETURN TO PROFITS
| Comalco Ltd <CMAC.S> said its return
to profit reflected reduced costs, improved primary aluminium
prices and its withdrawal from a Japanese smelter venture.
It said the earlier reported 57.1 mln dlr profit for the
year ended December 31 against a 69.13 mln dlr loss in 1985 was
also aided by lower interest rates on U.S. Dollar debt and
greater sales of bauxite and aluminium.
Comalco said it expected to pay at least a four cents per
share final, dividend delayed until July 1 to take advantage of
proposed dividend imputation laws.
This would make five cents for the year against a first and
final of one cent in 1985.
Comalco said the aluminium industry continued to suffer
from low prices and excess capacity, though the weak Australian
dollar had helped earnings.
Withdrawal from the <Showa Aluminium Industries KK> joint
venture had been recapitalised in expansion by the <New Zealand
Aluminium Smelters Ltd> project with Japan's <Sumitomo
Aluminium Smelting Co Ltd>, permitting repayments and increases
in liquid funds totalling 165 mln dlrs, it said.
As previously reported Comalco's <Commonwealth Aluminium
Corp> unit has conditionally agreed to sell its smelter at
Goldendale, Washington, and port facilities at Portland, Oregon
to <Columbia Aluminium Corp>.
Comalco said it had made a 27.3 mln dlr extraordinary
provision for Goldendale losses and closure costs but that if
the sales agreement were completed it would reduce the
provision made in the 1986 accounts.
The other items in the total extraordinary loss of 140.5
mln dlrs were a 102.9 mln write-off of unrealised exchange
losses and 10.3 mln for an increase in future tax provision.
| Other |
RAINBOW LIFTS PROGRESSIVE STAKE TO 52 PCT
| <Rainbow Corp Ltd> said it has
lifted its stake in supermarket group <Progressive Enterprises
Ltd> to 52 pct from 44 pct.
It said in a statement it has bought an extra 9.4 mln
shares at prices ranging from 3.80 N.Z. Dlrs to 4.80.
Progressive is currently the subject of both a proposed
merger with Rainbow and a full takeover bid from <Brierley
Investments Ltd> (BIL). The BIL bid, launched on Monday, is at
4.20 dlrs a share. The Rainbow merger involves shareholders in
both Rainbow and Progressive being issued shares in a new
company, <Astral Pacific Corp Ltd>, on a one-for-one basis.
Rainbow chief executive Craig Heatley said, "In our opinion
BIL's actions over the last few days have been undertaken for
their own strategic purposes which conflict with the desire of
both companies to merge their interests."
BIL has said it is against the merger because it sees
Progressive shares as being worth twice as as much as
Rainbow's.
Progressive traded today at 4.42, Rainbow at 3.66 and BIL
at 4.30 at the end of morning trading on the New Zealand Stock
Exchange.
| Market and Economy |
YEN MAY RISE TO 140 TO THE DLR, NIKKEIREN SAYS
| The yen could rise to 140 yen to the
dollar, a leading Japanese businessman said.
Bumpei Otsuki, president of the influential Japan
Federation of Employers' Associations, (Nikkeiren), told
reporters: "The yen might rise as far as 140 (to the dollar).
The U.S. Economy is not good, and as long as the U.S. Economy
is not good, the U.S. Will put various pressures (on Japan)."
"The yen's level depends on the condition of the U.S.
Economy rather than Japan's economy, and as long as the
American situation is bad, the yen will continue to rise," he
said.
To cope with the negative impact of the strong yen,
Japanese enterprises must strive to cut costs by all means,
including holding down wages as much as possible, Otsuki said.
He rejected recent calls from some government quarters for
wage increases this year as a means of raising private
consumption and thus boosting domestic demand.
"We have to keep wages as low as possible," he said.
He also said the yen's large and rapid rise is depressing
the outlook for the Japanese economy, noting that in addition
to hurting exporters it is also damaging domestic market
manufacturers through cheap imports.
Parts of the service sector are also threatened, Otsuki
said.
Tertiary industries provide services to manufacturers and a
downturn in manufacturing profits will adversely affect service
industries, he said.
It is also doubtful whether the tertiary sector can fully
employ those put out of work in the manufacturing sector, he
said.
Profits of service sector companies are likely to fall in
the business year ending in March 1988, leading to a possible
recession in the Japanese economy, he said.
Otsuki said economic growth is unlikely to pick up beyond
levels experienced in 1986.
The government's Economic Planning Agency said last week
the economy grew at 2.5 pct in 1986, the worst performance
since 1974 when the economy shrank 1.4 pct due to the first oil
price crisis.
In order to stimulate domestic demand and boost the
economy, tax reforms aimed at bringing down the cost of land
and reforming the nation's housing stock are needed, along with
steps to bring down the high cost of commodities, he said.
| Other |
JAPAN BUYS MODEST AMOUNT OF DOLLARS, DEALERS SAY
| The Bank of Japan bought a modest amount
of dollars this morning, possibly around 200 to 300 mln,
dealers said.
One dealer said the central bank bought about 200 mln dlrs
through brokers and the rest through banks. The buying began
when the dollar was at about 149.60 yen, and helped drive the
U.S. Currency up to around 150, he said.
Another said the central bank seemed to be trying to push
the dollar up above 150 yen. But heavy selling at around that
level quickly pushed the dollar back down towards 149 yen,
dealers said.
| Market and Economy |
JAPAN DOES NOT INTEND TO CUT DISCOUNT RATE-SUMITA
| Bank of Japan governor Satoshi Sumita
said the central bank has no intention of cutting its discount
rate again as a way of preventing the yen's rise.
He told a press conference that the growth of Japanese
money supply remains high.
The bank will have to watch closely various developments
resulting from its already eased monetary stance, such as the
sharp rise in real estate and stock prices, he said.
Although the yen's rise will have a greater deflationary
impact on the economy, the economy is not likely to slow down
much further, Sumita said.
"I don't think we should change our economic outlook at the
moment," Sumita said.
Sumita has said in the past that he expects the economy to
show a gradual upturn in the second half of the year.
The governor said the six major industrial nations are
expected to review last month's pact on currency stability when
they meet next in April.
Dealers said they expect the six - Britain, Canada, France,
Japan, the U.S. Amd West Germany - to meet just before the
IMF/World Bank interim committee meeting in Washington starting
on April 9.
| Corporate News |
U.K. MONEY MARKET FORECAST REVISED TO SHOW SURPLUS
| The Bank of England said it had revised
its forecast of the liquidity position in the money market
today to a surplus of 150 mln stg after it estimated a flat
position earlier this morning.
| Commodities and Trade |
BANK OF ENGLAND DOES NOT OPERATE IN MONEY MARKET
| The Bank of England said it had not
operated in the money market during the morning session.
Earlier, the Bank revised its forecast of the liquidity
position in the system today to a surplus of 150 mln stg from
its original estimate of a flat position.
| Industrial and Sector News |
CRA EXPECTS TO PAY FINAL DIVIDEND OF 10 CENTS
| CRA Ltd <CRAA.S> said it expected to
pay a final 1986 dividend of not less than 10 cents a share
after July 1, making 13 cents forthe year against 15 in 1985.
The mining and smelting group earlier reported 1986 net
earnings rose to 138.2 mln dlrs from 87.8 mln in 1985, against
analysts' forecasts yesterday of 125 mln to160 mln.
CRA said it was deferring consideration of a dividend until
later this year to provide the benefit of dividend imputation
to its shareholders. After July 1, dividends will be tax-free
to shareholders provided they come out of earnings on which the
full 49 pct company tax rate has been pid.
The company operates on a substituted tax year, not the
fiscal year ending June 30, and as a result has incurred tax at
the 49 pct rate on 1986 earnings, CRA said in a statement.
Consequently, it has funds available for distribution with
dividend imputed but is waiting to see the imputation
legislation before determining the final payout, it said.
Despite the higher net earnings, CRA said 1986 was a poor
year for the minerals industry, with the notable exception of
gold producers.
Prices for major metals expressed in real U.S. Dollars
declined to the lowest levels in about 50 years, it said.
Fluctuating exchange and interest rates added volatility
and uncertainty, while the revaluation of the yen is leading to
substantial restructuring of Japanese industry, CRA said.
World demand for metals is growing slowly. Inventories have
steadily declined, with supply and demand in better balance,
but overcapacity continues, CRA said.
Turning to contributions to its earnings, CRA said
Bougainville Copper Ltd <BUVA.S> contributed 31.3 mln dlrs
while its share of Comalco Ltd's <CMAC.S> net was 37.8 mln.
Net earnings from iron-ore operations were 111.8 mln dlrs
against 149.2 mln in 1985, it said.
Lead, zinc and silver mining and smelting operations
incurred a net loss of 66.8 mln dlrs against a 38.1 mln loss in
1985, CRA said.
Coal activities resulted in a net profit of 36.7 mln dlrs
against 34.1 mln, while salt raised its contribution to 4.7 mln
from 2.8 mln.
CRA's share of earnings from the Argyle diamond project
amounted to 12.0 mln dlrs against nine mln in 1985.
CRA said the main item in its 250.28 mln dlr extraordinary
loss was a 172.9 mln writeoff of unrealised foreign exchange
losses on borrowings as required by a new accounting standard.
Other extraordinary items were 63.3 mln dlrs provided for
closures and writedown of assets and a 14.1 mln increase in
future tax provisions, CRA said.
Cash flow continued at a high level, being 950.6 mln dlrs
before capital expenditure against 1.02 billion in 1985. The
strong cash flow, coupled with the proceeds of the 1986 rights
issue and the use of existing cash balances, enabled group debt
to be reduced by nearly 500 mln dlrs.
CRA said it held forward contracts at year-end to buy 985
mln U.S. Dlrs to hedge part of its foreign debt. This cost 47.0
mln dlrs after tax, included in the net interest cost.
| Other |
EXCHANGE RATES ALMOST WITHIN G-6 LEVELS - SUMITA
| Bank of Japan governor Satoshi Sumita
said that current exchange rates are almost within the levels
agreed to by six major nations last month in Paris.
Asked whether a dollar/yen rate of 148 or 149 reflected
economic fundamentals, he said current rates almost reflect
fundamentals.
Sumita told reporters major nations have cooperated to
bring about currency stability in line with the Paris
agreement, which stipulated that they would closely cooperate
to that end. He repeated the central bank will intervene if
necessary, adding he did not think a dollar free-fall was
likely.
But Sumita said he could not say exactly what currency
levels would be considered in line with underlying economic
fundamentals.
In Paris on February 22, Britain, Canada, France, Japan,
the U.S. And West Germany agreed to cooperate to hold
currencies around their then current levels.
Sumita said he could not find any specific reasons behind
the fall of the dollar to a record low against the yen
yesterday. But he said the market rushed to sell dollars as it
nervously reacted to statements abroad and to developments
surrounding trade tensions.
U.S. Treasury Secretary James Baker said over the weekend
that the Paris pact did not encompass fixed tragets for the
dollar. U.S. Trade Representative Clayton Yeutter called
U.S/Japan relations on certain key trade issues very strained.
The market reacted nervously because the dollar has been
moving narrowly against the yen since mid-January, Sumita said.
He added he does not expect the yen/dollar exchange rate to
remain unstable because the market is concerned about a sharp
rise of the yen.
The Bank of Japan will keep a close watch on exchange rates
in line with the Paris accord, he added.
| Commodities and Trade |
JAPAN ASKS TRADERS, EXPORTERS TO CUT DOLLAR SALES
| The Ministry of International Trade and
Industry (MITI) has asked about 30 Japanese trading houses and
exporters to refrain from excessive dollar selling, trading
house officials said.
The officials told Reuters MITI asked them to moderate
their foreign exchange trading because the excessive rise in
the yen will have unfavourable effects on the economy. It made
the request by telephone.
A MITI official said the ministry has conducted a survey of
foreign exchange trading by trade houses and exporters. But he
said it was not aimed at moderating dollar selling.
The trading house officials said MITI had asked them to
undertake foreign exchange transactions with due consideration
to the adverse effects excessive exchange rate movements would
have on the economy.
The MITI official said MITI undertakes such surveys when
exchange rates fluctuate widely. A similiar survey was made
when the currency fell to the previous record low of 149.98 on
January 19. It hit a new record low of 148.20 yen yesterday.
He said the survey showed currency transactions by trade
houses and exporters contributed little to the dollar fall.
| Corporate News |
CENTRAL BANKS BUY DOLLARS FOR YEN IN LONDON
| The Bank of Japan intervened to stem
strong yen rises against the dollar during London trading this
morning, dealers said.
The Bank of Japan here declined comment.
The Bank of England was also rumored to be buying dollars
against the yen this morning but it also declined comment.
Dealers said the intervention halted a sudden late morning
drop to a low of 148.65 yen, holding the dollar steady until
midsession at about 148.80.
The Bank of England was strongly rumored to have intervened
on behalf of the dollar against the yen yesterday, but it gave
no confirmation.
Overnight reports from Tokyo said that the Bank of Japan
was aggressively supporting the dollar, but failed to push it
back to the perceived target level of 150 yen.
Selling during the London trading morning was largely
attributed to Japanese institutions.
Dealers here were loath to quantify the scale of Bank of
Japan action this morning. One U.S. Bank trader said it could
have been up to 500 mln dlrs, but said this was largely a
guess.
| Commodities and Trade |
25-MAR-1987
| 25-MAR-1987
| Other |
OCEAN TRANSPORT AND TRADING PLC <OTTL.L> YEAR 1986
| Shr net basis 21.4p vs 17.5p
Div 6.1p making 9p vs 6.5p
Pretax profit 37.2 mln stg vs 31.9 mln
Net after tax 25.7 mln vs 20.3 mln
Minority interest 700,000 vs 1.1 mln
Extraordinary debit 1.9 mln vs 3.5 mln
Turnover 827 mln vs 766.9 mln
Note - The company said the sale of the minority holding in
OCL in 1986 has transformed the balance sheet and enables it to
accelerate development.
| Other |
DART GROUP RAISES SUPERMARKETS GENERAL <SGL> BID
| <Dart Group Corp> said it has
raised its offer to acquire Supermarkets General Corp to 42.00
dlrs in cash and three dlrs in exchangeable preferred stock per
Supermarkets General share from 41.75 dlrs per share in cash.
The company said it would also be willing to negotiate a
plan with the Supermarkets General board under which
Supermarkets General shareholders would have a common stock
interest in the combined company. It said it remains willing
to negotiate all terms of the proposed acquisition.
The original bid was worth about 1.62 billion dlrs.
Dart said the preferred stock in the new bid would be
exchangeable for a new class of Supermarkets General debt
securities that would be developed by Dart and Supermarkets.
The new proposal would be subject to approval by the
Supermarkets General board, it said. The new bid was contained
in a letter to the Supermarkets General board.
In Woodbridge, N.J., Supermarkets General -- responding to
a previous letter to its board by Dart -- said "Your conduct
indicates to us that no transaction involving trust and
confidence can be entered into with you. Your propaganda and
missstatements will not panic our board."
Dart, in its previous letter, had alleged that Supermarkets
General executives were seeking millions of dollar in severance
and tax payments from Dart.
| Commodities and Trade |
OLSON INDUSTRIES INC <OLSN> 4TH QTR NET
| Oper shr 28 cts vs 1.16 dlrs
Oper net 194,000 vs 1,255,000
Sales 27.5 mln vs 30.5 mln
Year
Oper shr 2.68 dlrs vs 63 cts
Oper net 1,880,000 vs 684,000
Sales 100.5 mln vs 115.6 mln
Avg shrs 700,086 vs 1,079,165
NOTE: 1986 net excludes tax credits of 1,042,000 dlrs in
quarter and 1,603,000 dlrs in year.
Net excludes discontinued operations gain 330,000 dlrs vs
loss 385,000 dlrs in quarter and gain 485,000 dlrs vs loss
2,692,000 dlrs in year.
| Financial Reports |
OLSON <OLSN> TO HAVE LOSS FROM EGG UNIT SALE
| Olson Industries Inc said
it is in final negotiations on the sale of its remaining egg
operations and expects the sale to generate a charge of about
two mln dlrs against 1987 net income.
The company said, however, that the sale will generate
substantial cash flow to pay off bank debt and improve working
capital, eliminate unmanageable effects on profits of the price
instability of the egg business and allow it to concentrate on
its plastics packaging business.
| Commodities and Trade |
E.D. And F. MAN TO BUY INTO HONG KONG FIRM
| The U.K. Based commodity house E.D.
And F. Man Ltd and Singapore's Yeo Hiap Seng Ltd jointly
announced that Man will buy a substantial stake in Yeo's 71.1
pct held unit, Yeo Hiap Seng Enterprises Ltd.
Man will develop the locally listed soft drinks
manufacturer into a securities and commodities brokerage arm
and will rename the firm Man Pacific (Holdings) Ltd.
| Commodities and Trade |
ORACLE CORP <ORCL> 3RD QTR FEB 28 NET
| Shr 16 cts vs eight cts
Net 4,834,000 vs 2,052,000
Revs 34.9 mln vs 16.0 mln
Avg shrs 31.1 mln vs 26.8 mln
Nine mths
Shr 26 cts vs 13 cts
Net 8,006,000 vs 3,310,000
Revs 80.9 mln vs 34.5 mln
Avg shrs 30.8 mln vs 26.3 mln
NOTE: Share adjusted for two for one stock split.
Current year net includes capitalized software costs of
1,295,000 dlrs in quarter and 3,701,000 dlrs in nine mths.
| Other |
ENTERRA CORP <EN> 4TH QTR LOSS
| Shr loss 4.14 dlrs vs loss 19 cts
Net loss 37.1 mln vs loss 1,712,000
Revs 27.3 mln vs 33.4 mln
Year
Shr loss 5.51 dlrs vs loss 73 cts
Net loss 49.3 mln vs loss 6,544,000
Revs 109.0 mln vs 141.9 mln
NOTE: 1986 net both periods includes 34.8 mln dlr
weritedown of assets of services segment and Southeast Asian
joint venture.
| Financial Reports |
JOHNSTOWN/CONSOLIDATED REALTY TRUST <JCT> NET
| 4th qtr
Shr 15 cts vs eight cts
Net 1,800,000 vs one mln
Year
Shr 51 cts vs 1.10 dlrs
Net 6,200,000 vs 13.2 mln
NOTE: Net includes loan loss provisions of 14 cts shr vs 18
cts in quarter and 24 cts shr vs 36 cts in year.
| Corporate News |
DURIRON <DURI> COMPLETES VALTEK <VALT> PURCHASE
| Duriron Co Inc said it has
completed the acquisition of Valtek Inc for 11.75 dlrs per
share following Valtek shareholder approval yesterday.
| Other |
SWISS CAPITAL EXPORTS RISE IN JANUARY
| Swiss capital exports rose to 4.64
billion francs in January after 2.54 billion in December and a
year earlier 3.64 billion, the Swiss National Bank said.
New bond issues accounted for 4.12 billion of the total
after December's 2.15 billion, and credits 525.1 mln after
389.9 mln.
In January 1985, before the National Bank ended the
distinction between notes and bonds, bond issues totalled 1.66
billion francs, notes 1.39 billion and credits 597.5 mln.
| Other |
WASHINGTON FEDERAL SAVINGS <WFSL> QUARTERLY DIV
| Qtly div 17 cts vs 17 cts
Pay April 24
Record April 7
Note: year ago adjusted to reflect March 19 three-for-two
stock split.
(Washington Federal Savings and Loans Association)
| Other |
ROWLEY-SCHER <RSCH> TO HAVE LOSS FOR YEAR
| Rowley-Scher Reprographics Inc
said it expects to report an operating loss and a loss from the
sale of its Mid South Repro subsidiary for the year ending
MArch 31.
Last year, the company reported earnings of 977,000 dlrs.
Rowley-Scher did not disclose details of the sale of Mid
South Repro.
It said the sale has eliminated an unprofitable operation.
The company also said it will open two new reprographic
centers in the Washington/Baltimore area within the next three
weeks, brining the total there to 11, and a new downtown Boston
location in the same time period, brining the number in the
Boston area to four.
| Corporate News |
DIXONS SAID IT GOT AND ACCEPTED ONLY 20 PCT OF CYCLOPS SHARES IN TENDER
|
DIXONS SAID IT GOT AND ACCEPTED ONLY 20 PCT OF CYCLOPS SHARES IN TENDER
| Commodities and Trade |
DIXONS GETS ONLY 20 PCT OF CYCLOPS <CYL> IN BID
| <Dixons Group PLC> said only about
852,000 shares of Cyclops Corp common stock, or 20 pct on a
fully diluted basis, were tendered and not withdrawn under its
bid for all shares that expired yesterday, but the companmy has
still decided to accept all shares validly tendered.
The company said it now has about 22 pct ownership of
Cyclops on a fully diluted basis and expects to proceeds toward
completion of its proposed acquisition of Cyclops.
Last week, before extending its Cyclops offer for one week
at the request of the Securities and Exchange Commission,
Dixons had reported that 54 pct of Cyclops' stock had been
tendered in response to its 90.25 dlrs per share offer which
expired at 2400 EST yesterday.
Yesterday, CAYACQ Corp dropped certain conditions of its
92.50 dlrs a share offer for Cyclops and firmed up the
financing for the proposed transaction. CAYACQ, an investor
group led by Audio/Video Affiliates Inc and Citicorp, raised
the value of its offer from 80 dlrs per Cyclops share on Friday.
| Corporate News |
CHINA CALLS FOR BETTER TRADE DEAL WITH U.S.
| China called on the United States to
remove curbs on its exports, to give it favourable trading
status and ease restrictions on exports of high technology.
But the U.S. Embassy replied that Chinese figures showing
13 years of trade deficits with the U.S. Out of the last 15 are
inaccurate and said Peking itself would have to persuade
Congress to change laws which limit its exports.
The official International Business newspaper today
published China's demands in a editorial to coincide with the
visit of U.S. Secretary of State George Shultz.
"It is extremely important that the U.S. Market reduce its
restrictions on Chinese imports, provide the needed facilities
for them and businessmen from both sides help to expand Chinese
exports," the editorial said.
"The U.S. Should quickly discard its prejudice against
favourable tariff treatment for Chinese goods and admit China
into the Generalised System of Preference (GSP).
"Despite easing of curbs on U.S. Technology exports in
recent years, control of them is still extremely strict and
influences normal trade between the two countries," it added
The paper also printed an article by China's commercial
counsellor in its Washington embassy, Chen Shibiao, who said
that "all kinds of difficulties and restrictions" were preventing
bilateral trade fulfilling its full potential.
He named them as U.S. Protectionist behaviour, curbs on
technology transfer and out-of-date trade legislation.
The paper also printed a table showing that, since
bilateral trade began in 1972, China has had a deficit every
year except 1972 and 1977. It shows the 1986 and 1985 deficits
at 2.09 billion and 1.722 billion dlrs.
A U.S. Embassy official said the U.S. Did not accept
Peking's trade figures at all, mainly because they exclude
goods shipped to Hong Kong and then trans-shipped to U.S. While
U.S. Figures are based on country of origin.
He said that, if China wants to obtain GSP status, it will
have to lobby Congress itself to persaude it to amend several
laws which currently prevent Peking getting such status.
The U.S. Trade Act of 1974 says that to qualify for GSP,
China must be a member of the General Agreement of Tariffs and
Trade (GATT), for which it applied in July 1986, and "not be
dominated or controlled by international Communism."
The official said China was well aware of the laws, some
of which date to the anti-Communist early 1950's, but that
there is not sufficient political will in the U.S. To change
them.
China has been the subject of about a dozen cases
involving anti-dumping in the U.S. Within the last two years,
which the U.S. Side won, he said.
But, for the first time, China signed last week an
agreement which it itself initiated to voluntarily restrain
exports of at least two categories of steel goods, which may
lead the U.S. Side to withdraw the anti-dumping case, he added.
Another diplomat said willingness to provide such
voluntary export restraints would be an important issue in
bilateral trade issues and in Peking's application to GATT.
"China has the potential to disrupt world markets,
especially in textiles. Other GATT countries will be nervous
about China in this respect. But there is a precedent for other
centralled planned economies in GATT," the diplomat said.
Poland, Czechoslovakia, Hungary and Romania are members of
GATT but none has China's massive market potential for imports
or its vast labour pool to produce cheap exports.
In a speech today in the northeast city of Dalian, U.S.
Secretary of State George Shultz said his country welcomed
China's interest in participating in GATT.
"The process of Chinese accession will not be accomplished
overnight -- the GATT rules were not designed for a large
economy of the Chinese type," Shultz said.
"China can play an important role by actively joining GATT
discussions seeking to expand general trading opportunities and
enhance market access for exports worldwide. China can further
develop its foreign trade system so as to gain the maximum
benefit from its GATT participation," he said.
The problems facing U.S.-China trade and GATT membership
are similar -- a pricing system which many foreign businessmen
regard as arbitrary and not related to actual costs, especially
for exports, and a de facto dual currency system.
In a memorandum backing its application presented to GATT
last month, China said it was gradually reforming its economic
system and replacing mandatory instruction with "guidance
planning" and economic levers.
The diplomat said that, to join GATT, China had much to
do.
| Corporate News |
KAUFMAN AND BROAD HOME CORP <KBH> 1ST QTR FEB 28
| Shr 17 cts vs seven cts
Net 4,678,000 vs 1,856,000
Revs 110.5 mln vs 61.7 mln
Avg shrs 27.0 mln vs 25.0 mln
| Commodities and Trade |
RENOUF HAS 93.4 PCT OF BENEQUITY <BH> UNITS
| <Renouf Corp International> said it
now owns 93.4 pct of Benequity Holdings a California Limited
Partnership.
Renouf said it has accepted for payment all 3,914,968
units of Benequity Holdings tendered in response to its 31 dlrs
per unit offer. Along with the 1,449,550 units already held by
Renouf, it now owns 93.4 pct of the 5,745,706 units outstanding.
| Corporate News |
OIL ANALYST SEES PAPUA NEW GUINEA AS GOOD PROSPECT
| Papua New Guinea
(PNG) provides the most exciting new prospect in the
Asia-Pacific region for oil production, energy analyst Fereidun
Fesharaki said here.
The recent successful find at Iagifu is likely to put PNG
on the list of major oil exporters by the early 1990s, he told
the Australian Petroleum Exploration Association annual
conference.
Fesharaki, leader of the Energy Program at the East-West
Center in Honolulu, Hawaii, was speaking on the Asia-Pacific
petroleum outlook.
With domestic demand of around 12,000 barrels per day (bpd)
and prospects of production of over 100,000 bpd by late 1991,
PNG would become an Ecuador-level crude exporter, Fesharaki
said.
The Iagifu wells in the Papuan Basin have recorded the best
oil flows in more than 60 years of exploration in PNG.
The PNG government's Geological Survey in a paper
distributed at the conference estimates Iagifu reserves at
about 500 mln barrels.
PNG enjoys the most liberal tax regime in the region with
no secondary taxes, Fesharaki said.
"We expect a much larger oil search in Papua New Guinea, and
discovery of much larger volumes of oil, similar in quality to
(light) Bass Strait crude," Fesharaki said.
There are also large pockets of high quality condensates to
be produced, notably in the Juha field near Iagifu which is
capable of producing 30,000 to 40,000 bpd, he said.
But prices should be somewhat higher than the present
levels to justify development of the Juha field, he said.
The PNG Geological Survey paper noted there are five large
prospective but little-explored sedimentary basins in PNG.
| Financial Reports |
USAIR GROUP INC <U> SETS QUARTERLY
| Qtly div three cts vs three cts prior
Pay April 30
Record April 16
| Corporate News |
MCFARLAND <MCFE> TO BUY PETROMINERALS <PTRO>
| McFarland Energy Inc
said its board and that of Petrominerals Corp have approved a
definitive agreement for McFarland to acquire Petrominerals in
an exchange of stock.
McFarland said it would exchange one common share for each
5.4 Petrominerals shares. McFarland said former holders of
Petrominerals will have a 25 pct interest in the combined
company.
The merger is still subject to approval by shareholders of
both companies.
| Other |
TIMMINCO ACQUIRES UNIVERSAL ADHESIVES
| <Timminco Ltd> said it acquired
Universal Adhesives Inc, of Memphis, for undisclosed terms, in
a move to expand Timminco's operations into the United States.
The company said Universal Adhesives, with five U.S.
plants, has annual sales of 12 mln U.S. dlrs, which will double
Timminco's presence in the North American adhesives market.
Timminco said Universal Adhesives will complement the
company's Canadian-based industrial adhesives division and is a
key step in its long-term goal for expansion in the specialty
chemical field.
| Commodities and Trade |