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U.S. SENATE PANEL APPROVES TRADE MISSION BILL
| The U.S. Senate Agriculture
Committee approved a bill that would establish farm trade and
aid missions to promote the use of U.S. food aid, donation,
credit and export subsidy programs by overseas customers.
The bill, approved by voice vote, would establish trade
missions made up of representatives of the Departments of
Agriculture and State, the Agency for International
Development, the Overseas Private Investment Corp, market
development cooperatives and private voluntary organizations.
At least 16 missions would have to be sent within one year
after enactment of the bill. The missions would promote U.S.
programs, including PL480, Section 416 donations, Export
Enhancement Program, the dairy export incentive program, and
export credit guarantee programs (GSM-102, GSM-103).
The panel agreed to drop a provision in the original bill,
offered by Sen. John Melcher (D-Mont.), that would have
required the U.S. Agriculture Department to donate at least one
mln tonnes of surplus commodities to developing countries.
Current law requires USDA to donate at least 750,000 tonnes
of surplus grains and dairy products under the Section 416 food
donation program.
The Congressional Budget Office estimated that the proposed
increase in the minimum tonnage requirement would have cost up
to 50 mln dlrs per year, Senate staff said.
The committee also dropped a provision identifying which
countries would be the focus of the trade missions' activities.
Under the bill adopted by the committee, countries "friendly
to the United States" would be eligible to host the trade
missions.
Melcher originally had proposed sending missions to Mexico,
the Philippines, Indonesia, Bangladesh, Senegal, Nigeria, Peru,
Kenya, the Dominican Republic, Costa Rica, Malaysia, Venezuela,
Tunisia and Morocco.
The bill also would require the Foreign Agricultural
Service, FAS, to have at least 850 full-time employees during
fiscal years 1987-89. As of February 28, FAS had 790 full-time
employees, a FAS spokesman said.
| Financial Reports |
BAT SHARES UNDERVALUED, SAY STOCK MARKET ANALYSTS
| BAT Industries Plc <BTI.L> 1986 results,
which were at the upper end of market expectations, showed the
company was in a strong position and that its shares were
probably undervalued, share analysts said.
BAT shares were down at 524p in late afternoon trading
after a previous 535p close. They touched a high of 538p
earlier on news of a 19 pct rise in annual profits to 1.39
billion pre-tax.
Stock market analysts said today's generally weak stock
market plus unwinding of positions after heavy buying of BAT
shares in the run-up to the results caused the fall in the
share price.
"In the current market, people almost expect companies to
beat expectations," said one analyst, adding that pretax profits
of 1.35 to 1.40 billion stg had been forecast.
BAT's 1986 figure of 1.39 billion stg compared with a 1985
pretax profit of 1.17 billion.
Brokers noted that BAT's shift away from its
underperforming industries and the decreasing share of the
tobacco portion of the group were seen as good signs.
BAT Chairman Patrick Sheehy told a news conference that the
tobacco sector of the company had declined to 50 pct from 74
pct four years ago.
Sheehy said he could see the tobacco portion of the company
declining further as other sectors increased in importance.
He said BAT was looking to expand in the area of financial
services, in particular in the U.S.
Sheehy also said the group had "no sizeable acquisitions" in
sight in the near future.
Analysts said BAT's increasingly good performance in the
U.K. Insurance area was encouraging.
Its declining debt-to-equity ratio of currently about 16
pct also made it likely that BAT would soon be looking to make
major acquisitions, they said.
| Market and Economy |
WOOLWORTH, UNDERWOODS FAIL TO AGREE ON BID
| <Underwoods Plc> said it had not been
possible to agree terms on a bid to be made by Woolworth
Holdings Plc <WLUK.L> during talks.
The two companies had been holding exploratory discussions.
No spokesman for either company was immediately available to
say why terms could not be agreed, nor whether the possibility
of a bid was now being abandoned.
Last week, Underwoods shares rose 49p to 237p ahead of any
announcement of the talks. The announcement today brought them
back down to 214p from last night's close at 241p. Woolworth
was unchanged at 758p.
| Corporate News |
REICHHOLD <RCI> EXPLORING SALE OF EUROPEAN UNIT
| Reichhold Chemicals Inc said
it is exploring the sale of its stake in its European
subsidiary Reichhold Chemie AG.
Reichhold Chemie Ag, headquartered in Rausen, Switzerland,
had sales in excess of 75 mln dlrs last year. It is 83 pct
owned by Reichhold. The rest is owned by German and Swiss
shareholders.
Reichhold said it is seeking the sale to focus on its
adhesives business.
| Financial Reports |
UAL SAID DONALD TRUMP WAS INTERESTED IN UAL STOCK "AS INVESTMENT"
|
UAL SAID DONALD TRUMP WAS INTERESTED IN UAL STOCK "AS INVESTMENT"
| Market and Economy |
INT'L BROADCASTING <IBCA> SETS REVERSE SPLIT
| International Broadcasting
Corp said shareholders at its annual meeting approved a one for
25 reverse stock split.
The split will be effective after completion of filing
requirements, it said. New certificates will be needed, it
added.
The media company said it currently has 40,950,000 common
shares issued and outstanding and, upon completion of the
reverse split, will have 1,638,000 shares outstanding.
| Corporate News |
BI INC <BIAC> SETS REVERSE SPLIT
| BI Inc said it is implementing a
one-for-15 reverse split to shareholders of record today.
It said any fractional shares will be redeemed for cash,
reducing its free-trading stock in public hands to 1,300,000
shares from 20 mln and its total shares outstanding to
1,993,000 from 29.9 mln.
Shareholders approved the reverse split in October.
| Corporate News |
BALDRIGE SAYS JAPAN MUST OPEN ITS MARKETS
| Commerce Secretary Malcolm Baldrige
said the United States will not stand idly by and let Japan
dominate the world electronics market.
Baldrige told the Senate Finance Committee the United
States would insist Japan open its markets to U.S. products as
the U.S. market is open to Japanese products.
Asked after his testimony if this meant the United States
would close its markets to Japan if they did not open theirs,
Baldrige said, "I'm not prepared to say that, but it certainly
would be one of the alternatives studied."
Baldrige said in his testimony Japan had a closed
supercomputer market and a restricted telecommunications
market.
"I can only conclude that the common objective of the
Japanese government and industry is to dominate the world
electronics market. Given the importance of this market to U.S.
industry in general and our defense base in particular, we
cannot stand by idly," he said.
He said it was these concerns about national security which
led him to express reservations over the proposed acquisition
of Fairchild Semiconductor by Fujitsu of Japan.
| Financial Reports |
BASF CORP YEAR NET
| Net 105 mln dlrs vs 39 mln
Sales 3.6 billion vs 2.6 billion
NOTE: Wholly-owned by <BASF AG> of West Germany.
| Financial Reports |
NO BUNDESBANK POLICY CHANGES EXPECTED THURSDAY
| The Bundesbank is unlikely to change
its credit policies at its central bank council meeting on
Thursday, as exchange rates and short-term interest rates have
stabilized over the past few weeks, money market dealers said.
Attention in the money market is focused on tomorrow's
tender for a securities repurchase pact, from which funds will
be credited on Thursday, when an earlier pact expires, draining
16 billion marks from the system.
The tender was announced last Friday, because carnival
festivities closed banks in Duesseldorf yesterday, and will
close banks here this afternoon.
Because of the disruption to business from carnival,
minimum reserve figures for the start of the month are
unrealistic, making it difficult for banks to assess their
needs at the tender.
Dealers said the Bundesbank would want to inject enough
liquidity in this week's pact to keep short-term rates down.
But because of uncertainty about banks' current holdings,
the Bundesbank may well allocate less than 16 billion marks
this week, and top it up if necessary at next week's tender.
"I would not be surprised if the Bundesbank cuts the amount
a little, to say 14 or 15 billion marks," one dealer said.
"They would then stock it up at the next tender when the
need is clearer," he added.
An earlier pact expires next week, draining 8.5 billion
marks from the system. Banks also face a heavy but temporary
drain this month from a major tax deadline for customers.
Banks held 52.0 billion marks on February 27 at the
Bundesbank, averaging 51.0 billion over the whole month, just
clear of the 50.5 billion February reserve requirement.
Call money traded today at 3.85/95 pct, up from 3.80/90
yesterday.
| Financial Reports |
MONTANA POWER CO <MTP> VOTES QUARTERLY DIVIDEND
| Qtly div 67 cts vs 67 cts prior qtr
Pay 30 April
Record 10 April
| Financial Reports |
UAL <UAL> SAID TRUMP TALKED WITH UAL CHAIRMAN
| Real estate magnate Donald Trump told
UAL Inc Chairman Richard Ferris that he was interested in UAL
stock as an investment, according to a UAL executive.
Trump, who was unavailable for comment, is believed by
market sources to have a sizeable position in UAL, which he
began accumulating several weeks ago. UAL stock today was up
three at 63 in active trading.
"They (ferris and Trump) talked last week. Apparently,
Trump said he was interested in it as an investment. He didn't
say how much stock he had. He didn't say what he would or
wouldn't do about it," said UAL senior vice president Kurt
Stocker.
Trump is believed to have close to five pct of UAL's stock,
market sources said.
| Financial Reports |
TEAM INC <TMI> 3RD QTR FEB 28 NET
| Shr profit five cts vs loss 18 cts
Net profit 91,000 vs loss 355,000
Revs 11.5 mln vs 11.7 mln
Nine mths
Shr profit six cts vs loss 1.45 dlrs
Net profit 127,000 vs loss 2,846,000
Revs 31.8 mln vs 34.9 mln
| Financial Reports |
TODD SHIPYARDS CORP OMITS QTLY COMMON DIV, SETS PREFERRED PAYOUT
|
TODD SHIPYARDS CORP OMITS QTLY COMMON DIV, SETS PREFERRED PAYOUT
| Corporate News |
RSI CORP <RSIC> 2ND QTR FEB 28 NET
| Shr 33 cts vs 13 cts
Net 2,266,000 vs 849,000
Revs 24.1 mln vs 16.0 mln
1st half
Shr 61 cts vs 24 cts
Net 4,236,000 vs 1,619,000
Revs 47.4 mln vs 33.5 mln
NOTE: Share after stock splits.
Net includes discontinued operations loss four cts shr vs
nil in quarter and loss seven cts vs gain one ct in half.
| Corporate News |
RCM TECHNOLOGIES INC <RCMT> 1ST QTR JAN 31 LOSS
| Shr loss one ct vs loss one ct
Net loss 89,844 vs loss 85,731
Revs 3,384,726 vs 4,646,285
| Market and Economy |
MCCLAIN INDUSTRIES INC <MCCL> 1ST QTR DEC 31 NET
| Shr 24 cts vs 13 cts
Net 380,325 vs 211,183
Sales 5,046,578 vs 3,941,764
NOTE: Current year net includes gain from sale of Sterling
Heights, Mich., plant of 174,000 dlrs. Another 698,000 dlrs of
gain from sale sale has been treated as deferred income.
| Corporate News |
U.K. MONEY MARKET SHORTAGE FORECAST REVISED UP
| The Bank of England said it revised up
its forecast of the shortage in the money market today to
around 500 mln stg from its initial estimate of 350 mln.
| Corporate News |
SYNALLOY <SYO> ENDS PLANS TO SELL UNIT
| Synalloy Corp said it has
ended talks on the sale of its Blackman Uhler Chemical Division
to Intex Products Inc because agreement could not be reached.
The company said it does not intend to seek another buyer.
| Market and Economy |
C-I-L ACQUIRING TRIMAC'S STAKE IN TRICIL
| <C-I-L Inc> said it would exercise its
right to acquire <Trimac Ltd>'s stake in their jointly owned
Tricil Ltd for 91 mln dlrs, with closing expected May 22.
C-I-L added that the final price could be less, however,
depending on an Ontario court ruling resulting from a
previously reported legal action launched by C-I-L.
Mississauga, Ontario-based Tricil is a waste management
company with operations in the U.S. and Canada.
| Market and Economy |
EC INFLATION STARTS TO RISE AGAIN IN FEBRUARY
| Inflation in the European Community,
which fell to its lowest since the 1960s between November and
January, started to take off again last month, figures from the
EC statistics office Eurostat showed.
Consumer prices were on average three pct higher than in
February 1986, the office said. This compared with a year on
year rise of 2.7 pct in January, the lowest for 25 years, and
was the highest figure since October.
Prices rose in February by 0.3 pct from January, after
rises of 0.4 pct in January and of 0.2 pct in each of the last
three months of 1986.
| Other |
PANTERA'S <PANT> TO BUY TEN PIZZA RESTAURANTS
| Pantera's Corp said it agreed to
buy ten pizza restaurants in southeastern Colorado from
creditors foreclosing on the facilities.
The purchase price includes 1.25 mln dlrs in cash and
company stock, it said.
Separately, Pantera's said it issued an area development
agreement with a franchisee group for northeastern Colorado,
including the Denver area, for the opening of about 20
franchised Pantera's pizza restaurants.
| Corporate News |
ALLIED-SIGNAL INC TO SELL LINOTYPE GROUP TO COMMERZBANK OF WEST GERMANY
|
ALLIED-SIGNAL INC TO SELL LINOTYPE GROUP TO COMMERZBANK OF WEST GERMANY
| Corporate News |
ENERGY/U.S. OIL OUTPUT
| Energy Secretary John Herrington has
proposed several ways to boost U.S. oil production, but he said
all would cost the Treasury money and will come under close
White House scrutiny before action is taken.
One measure he said he favored would raise the depletion
allowance to 27.5 pct on new oil and gas production as well as
production using enhanced extraction methods.
Herrington said such a plan would cost 200 mln dlrs a year.
The White House, reacting, said it did not favor amending the
tax code, but would look at the proposal.
Herrington's proposals to spur production were made along
with the release last week of the energy department's report on
energy and the national security.
The report said U.S. oil imports, rapidly rising, could hit
50 pct by the mid 1990s and have potentially damaging
implications for national security.
He has said since in speeches and at news conferences that
any plan he would back to spur lagging domestic oil production
would have to meet three criteria--increase production, not
cause economic dislocation, and be low cost to the taxpayer.
Herrington said an import fee would meet the first test,
spurring production but fail the second and third.
He said it would raise production and return 120,000 oil
workers to their jobs, but at the same time it lifted oil
prices, the higher prices would cost 400,000 jobs nationwide
and cut the gross national product by 32 billion dlrs.
A tax on gasoline, he said, would fail the first criteria
by not increasing domestic production.
In any case, U.S. officials say, President Reagan remains
firmly opposed to an import fee and a gasoline tax.
Options which meet Herrington's criteria include:
- Loan-price guarantees to shield banks from defaults by
borrowers because of lower oil prices. It was estimated that if
oil fell to five dlrs a barrel it could trigger defaults that
could cost the government an estimated 15 billion dlrs.
- A five pct tax credit for exploration and development. It
would raise oil and gas production the equivalent of 325,000
barrels a day, at a cost of 740 mln dlrs a year.
- A five pct credit only for geological and geophysical
expenditures. It would increase production by 80,000 barrels a
day, at a cost of 65 mln dlrs.
- Lower bid minimums on outer continental shelf acreage to
spur exploration. A drop from the present 150 dlrs per acre for
the typical 5,760 acre tract to 25 dlrs per acre would lower
the cost of the standard tract lease to 144,000 dlrs.
Herrington also pressed anew for existing Administration
proposals to deregulate natural gas, which he said would cut
the need for imported oil by 300,000 barrels daily.
He also called again for Congressional approval to explore
off the continental shelf, which may hold more than 12 billion
barrels of oil, and the Arctic National Wildlife Refuge, which
may hold nine billion barrels.
Herrington said he understood the Reagan's reluctance to
amend the newly enacted tax code to fund some of these
proposals, but added he hoped his department's energy/security
study would make a strong case for the need to help the
struggling domestic oil industry.
Another move Herrington said he will press anew, even
though it had been rejected earlier by the White House, is to
raise the fill-rate for the Strategic Petroleum Reserve to
100,000 barrels a day from its planned 1988 rate of 35,000.
This, he said, would further bolster national security in
case of an oil-supply disruption.
| Financial Reports |
TODD SHIPYARDS <TOD> OMITS COMMMON DIVIDEND
| Todd Shipyards Corp said it
omitted payment of the quarterly dividend on its common stock
and lowered the dividend on its series A preferred stock to 75
cts from 77 cts a share.
Todd said the 75 ct preferred dividend will be paid May one
to shareholders of record April 15.
The company said it omitted the common dividend to cover
both losses from a commercial ship conversion contract and
increased reserves for previously announced discontinued
shipyard operations.
In addition, the company said its lenders agreed to
temporarily reduce the net worth requirement of its revolving
credit and term-loan pact to 140 mln dlrs from 130 mln.
The reduction will hold through May 15, it said.
Todd said the reduction in the net worth requirement
allowed for the payment of the preferred dividend and prevented
it from violating covenants of its credit agreement.
The company said it is also negotiating with its lenders to
extend the reduced net worth terms beyond May 15.
Todd added that it has suffered financially because of the
U.S. Navy's unwillingness to release certain retentions under
completed ship construction contracts and a general decrease in
U.S. military spending.
| Corporate News |
IMO DELAVAL <IMD> SETS INITIAL DIVIDEND
| Imo Delaval said its board
declared an initial quarterly dividend of 14 cts per share,
payable April 24 to holders of record on April 6.
| Financial Reports |
PAKISTAN TO RETENDER FOR RBD PALM OIL TOMORROW
| Pakistan will retender for 6,000 tonnes
of refined bleached deodorised palm oil for second half March
shipment tomorrow, after failing to take up offers today, palm
oil traders said.
| Financial Reports |
NATIONAL COMPUTER SYSTEMS INC <NLCS>4TH QTR NET
| Shr 25 cts vs 31 cts
Net 4,798,000 vs 5,380,000
Revs 65.3 mln vs 58.2 mln
Avg shrs 19.2 mln vs 17.5 mln
Year
Shr 84 cts vs 89 cts
Net 15,750,000 vs 15,191,000
Revs 262.1 mln vs 215.8 mln
Avg shrs 18.8 mln vs 17.1 mln
| Commodities and Trade |
ALLIED-SIGNAL <ALD> TO SELL LINOTYPE UNIT
| Allied-Signal Inc said it
agreed to sell its Linotype Group unit to <Commerzbank AG>
of West Germany for an undisclosed amount.
Allied-Signal said Commerzbank is expected to offer shares
of the unit to the public later this year.
The company said the agreement is subject to approval by
the government and its shareholders.
The Linotype unit, based in Eschborn, West Germany, had
revenues in 1986 of more than 200 mln dlrs, the company said.
The company said top management of Linotype plan to remain
with the unit, which has operations in the United States, West
Germany and the United Kingdom.
Allied-Signal announced in December that it planned to sell
the Linotype unit as well as six other businesses in its
electronics and instrumentation segment.
Linotype is a supplier of type and graphics composition
systems.
| Commodities and Trade |
CONTINENTAL HEALTH AFFILIATES INC <CTHL> 4TH QTR
| Shr 10 cts vs five cts
Net 512,000 vs 230,000
Revs 16.8 mln vs 9,025,000
Year
Shr 55 cts vs 34 cts
Net 2,662,000 vs 1,541,000
Revs 57.5 mln vs 32.3 mln
| Corporate News |
CANADA SETS OIL INDUSTRY AID PACKAGE
| Canada's federal government
will provide a 350 mln dlr oil industry aid package that
includes cash incentives designed to cover one-third of a
company's oil and gas exploration and development costs, Energy
Minister Marcel Masse announced.
The aid program will inject about 350 mln dlrs a year into
the oil and gas industry and could lead to more than one
billion dlrs in new investment, Masse told a news conference.
The program will affect drilling done anywhere in Canada on
or after April 1, 1987.
Masse told reporters that the government's oil industry aid
package is aimed at small and medium sized companies.
The aid package, called the Canadian Exploration and
Development Incentive Program, will restrict the total payments
that any individual company can claim to 10 mln dlrs a year.
Masse said the program will probably generate new
employment equivalent to 20,000 people working for a year.
He said oil industry aid is needed because exploration and
development spending dropped by at least 50 pct since world oil
prices fell during the first half of 1986.
Energy Minister Masse said the federal government decided
to provide cash incentives so a large number of non-tax paying
companies, mainly small Canadian firms, will receive the full
value of the incentive. Such companies would not immediately
benefit from tax benefits, he said.
The federal government also wanted to deliver an aid
program outside the tax system. Finance Minister Michael Wilson
is now reviewing Canada's tax system and plans to announce tax
reform proposals later this spring.
An important feature of the aid program is a decision to
let companies issue flow-through shares, allowing investors to
benefit from the subsidy rather than restricting benefits to
only participating companies, he said.
Allowing flow-through shares under the program will make it
easier for companies to attract investors in exploration and
development, Masse said.
He told reporters his department is still considering
whether to allow partnerships and other entities to qualify for
the subsidy.
| Corporate News |
MOBIL PLANS TO OPEN OFFICE IN PEKING
| Mobil Oil Corp of U.S. Plans to open an
office in Peking to develop oil exploration opportunities in
China, the China Daily said.
It quoted Mobil president Richard Tucker, currently in
Peking, as saying he is optimistic about investment prospects
in China and that Peking will continue to encourage foreign
private businesses to invest here.
It said Mobil bought 73 mln dlrs of crude oil and oil
products from China in 1986 and sold it lubricant and
fertiliser, but gave no more details.
| Financial Reports |
COCOA TALKS SLOW AT CRUCIAL STAGE - DELEGATES
| International Cocoa Organization (ICCO)
talks on buffer stock rules have slowed during a crucial phase
of negotiations, delegates said, but they remained confident
about prospects for reaching agreement by Friday.
Cocoa producers, European Community (EC) consumers and all
consumers separately reviewed technical details of a buffer
stock rules package distributed yesterday.
The buffer stock working group of consumers and producers
was set to meet later today to debate the proposal jointly for
the first time, they said.
Delegates said major sticking points were likely to be the
amount of non-member cocoa allowed to be bought for the buffer
stock, and the fixed price differentials at which different
origin cocoas will be offered to the buffer stock manager.
Producers would prefer that non-member cocoa not be
included in the buffer stock because, if it is, countries such
as Malaysia benefit from the cocoa agreement without joining
it, the delegates said.
| Other |
NEWMONT GOLD <NGC> SEES GOLD SALES RISING
| Newmont Gold Corp expects gold sales
in 1987 to rise about 22 pct to 577,000 ounces from 1986's
474,000 ounces, the company said in its annual report.
Newmont Gold, 95 pct owned by Newmont Mining Corp <NEM>,
said it expects significant increases in gold sales in 1988 and
1989 as well.
| Corporate News |
MESSIDOR TO MERGE WITH TRITON BELEGGINGEN
| Messidor Ltd said it signed a letter
of intent to acquire 100 pct of the outstanding shares of
Triton Beleggineng Nederland B.V., a European investment
portfolio management company.
If approved, two mln shares of stock held by the Messidor
Ltd officers and directors would be issued to Triton
shareholders.
Triton will become a subsidiary of Messidor, it said.
If approved, the president of Triton, Hendrik Bokma, will
be nominated as chairman of the combined company.
There are about 1.5 mln Messidor units issued to the public
consisting of one share of common stock, four Class A common
stock warrants, four class B common stock warrants and four
class C common stock warrants.
In addition there are four mln restricted shares
outstanding.
Messidor said the acquisition is expected to be completed
by June three.
| Corporate News |
ENCOR ENERGY CORP INC YR NET LOSS 406.6 MLN VS PROFIT 35.4 MLN
|
ENCOR ENERGY CORP INC YR NET LOSS 406.6 MLN VS PROFIT 35.4 MLN
| Corporate News |
MIDDLE SOUTH <MSU> TO FORM NEW DIVIDEND POLICY
| Middle South Utilities Inc is taking a
conversative approach to formulating a new common stock
dividend policy, chairman Edwin Lupberger said.
He told securities analysts that when the company's common
dividend is resumed, "the initial rate will appear conservative
to you by industry standards and in relation MSU's net income
and cash flow."
"Our progress will determine how soon we can reinstate a
dividend to our common stockholders, he said."
The company last paid a common dividend of 44.5 cts a share
in July 1985.
Lupberger told the analysts that the company's primary
objective is "to create financial strength, enough strength so
that what happened to us and our stockholders over the past
couple of years never happens again."
The company has faced regulatory challenges to rates
proposed to cover the cost of its Grand Gulf nuclear plant.
He said Middle South's net income is expected to post
"modest growth" over the next three years.
In 1986, the company earned 451.3 mln dlrs or 2.21 dlrs a
share on revenues of 3.49 billion dlrs.
Lupberger said, "A good portion of the improvement
projected for the next three years comes from keeping the lid
on operating and maintenance expenses."
| Financial Reports |
TWA SOLD FOUR MLN SHARES OF USAIR BELIEVED TO INSTITUTIONS, WALL STREET SOURCES
|
TWA SOLD FOUR MLN SHARES OF USAIR BELIEVED TO INSTITUTIONS, WALL STREET SOURCES
| Financial Reports |
U.S. SUGAR POLICY MAY SELF-DESTRUCT, CONGRESSMAN
| A leading U.S. farm-state
Congressman, Jerry Huckaby, D-La., warned he will press next
year for legislation to control domestic production of
sweeteners, perhaps including corn sweeteners, if the industry
fails to voluntarily halt output increases this year.
"We're moving toward a direction where we could
self-destruct (the U.S. sugar program)," Rep. Huckaby, chairman
of the House agriculture subcommittee dealing with sugar
issues, told Reuters in an interview.
Huckaby, who told U.S. sugarbeet growers earlier this year
they must halt production increases, said he will deliver the
same message to Louisiana sugarcane growers Friday. He also
said he will soon talk with corn refiners on the subject.
Huckaby said the campaign to urge a halt to domestic
sweetener output increases is an effort to forestall further
cuts in the sugar import quota, now at one mln short tons.
"I think if we're talking about dropping (the quota)
another half mln tons, lets say, you're getting to the point
where the program might not work," he said.
"Ideally, I'd like to freeze things right where we are,"
said Huckaby, leading advocate for sugar growers in Congress.
A freeze would mean domestic sugar production at about the
current level of 6.5 mln tons, the corn sweetener share of the
U.S. market staying at just over 50 pct, and U.S sugar imports
holding at about 1.2 mln tons, Huckaby said.
A decision on whether to seek legislation will not be made
until 1987 output numbers are known late this year, he said.
"I feel like if we didn't expand production, we could
probably hold where we are indefinitely, or at least through
the 1985 farm bill without any changes (in the sugar program),"
Huckaby said.
However, much depends on whether high-fructose corn syrup
producers continue to expand their share of the U.S. sweetener
market from just over 50 pct, Huckaby said.
He noted most estimates are that corn sweeteners will
capture at most only another 10 pct of the sweetener market in
the U.S.
But he said if there were an economic breakthrough in the
production of a new crystalline corn sweetener which further
expanded the corn sweetener share, then U.S. sugar imports
might be eliminated and U.S. sugar output severely reduced.
Huckaby said he will deliver this message to corn refiner
companies such as A.E. Staley and Archer Daniels Midland soon.
"This program is advantageous to the corn users. They have
some natural, legitimate self-interest in seeing that the
program is preserved," Huckaby said.
Huckaby said he has asked sugar industry representatives to
think about how domestic output could be controlled, either
through production allocations, acreage or marketing controls.
Huckaby also said he would be seeking guidance from the
Justice Department to determine if it would be legal to ask
corn refiners to limit production.
"I don't know if we will go this route, but if we do
there's a question in my mind at this point in time; can you do
that legally?" he said.
Asked if he would proceed with production controls without
the support of corn refiners, Huckaby said "You build a fragile
house if you do it that way."
Huckaby said he understands why U.S. cane and beet farmers
have expanded production, because high sugar price support
means returns from sugar are higher than competing crops such
as soybeans and grain.
But he said for sugar growers as a whole, expansion would
not be good policy.
Huckaby said he has tried to stress, in his speeches to
sugar industry groups, that if growers continue to expand, they
may be penalized retroactively under any production control
legislation passed next year.
Huckaby said Congress is unlikely to approve any changes in
the sugar program this year despite a Reagan administration
proposal to drastically slash the program.
"The administration proposal is so drastic, that I don't
think it will get up a head of steam," Huckaby said.
He said even a more moderate proposal to reduce sugar price
support is unlikely to be approved.
Instead of seeking to slash the domestic sugar program,
Huckaby said the Reagan administration should file a complaint
with the General Agreement on Tariffs and Trade against the
European Community's sugar policy. He said EC policies are the
major cause of the depressed world sugar market.
| Other |
INVESTORS INCREASE STAKE IN FROST, SULLIVAN
| One of a pair of private investors
in Frost and Sullivan Inc told the Securities and Exchange
Commission he increased his stake in the firm by about two pct,
to 15.4 pct.
He is Theodore Cross, Princeton, N.J., editor of Business
and Society Review.
The other investor is Mason Slaine, Cos Cob, Mass,
president of Dealers' Digest Inc. He holds a 3.3 pct stake.
Cross told the SEC he bought the new shares at between 7.75
and 8.0 dlrs.
| Corporate News |
LIBERIAN ORE CARRIER IN COLLISION IN RIVER ELBE
| The Liberian motor bulk carrier, Trave
Ore, 106,490 dwt, loaded with ore, and the 2,852 dwt West
German motor vessel Christa, collided late last night on the
River Elbe near buoy 129, Lloyds Shipping Intelligence said.
The Trave Ore proceeded by its own means to Hamburg. The
Christa was taken in tow with a damaged bow.
The Liberian vessel was concluding a trip from Seven
Islands to Hamburg.
| Commodities and Trade |
HERSHEY OIL CORP <HSO> 4TH QTR LOSS
| Shr loss 19 cts vs loss 2.37 dlrs
Net loss 1,140,000 vs loss 13,608,000
Revs 1,069,000 vs 1,940,000
Year
Shr loss 53 cts vs loss 2.34 dlrs
Net loss 3,012,000 vs loss 13,433,000
Revs 4,945,000 vs 6,705,000
| Other |
EG AND G INC <EGG> SETS QUARTERLY
| Qtly div 14 cts vs 14 cts prior
Pay May Eight
Record April 17
| Other |
<ENCOR ENERGY CORP INC> YEAR LOSS
| Shr not given
Net loss 406.6 mln vs profit 35.4 mln
Revs 138.1 mln vs 211.9 mln
Note: 1986 net includes 545.7 mln dlr asset writedown
before 139.2 mln dlr recovery of deferred taxes.
48 pct-owned by Dome Petroleum Ltd <DMP>.
| Commodities and Trade |
BRAZILIAN LABOUR UNREST SPREADS, MANY BANKS SHUT
| Brazil's labour unrest is spreading,
with many banks, universities and government statistical
offices on strike and more pay disputes looming.
Bankworkers' leaders said that a national strike launched
yesterday to press for a 100 pct immediate pay rise and monthly
salary adjustments had the support of most of the 700,000
workforce.
The strike today closed the stock exchanges of Sao Paulo
and Rio de Janeiro.
For the government the one positive development on the
labour front was the gradual return to work of the nation's
40,000 seamen, who began a national strike on February 27.
A union spokesman in Rio de Janeiro told Reuters about half
the seamen had returned to work after accords with 22 companies
and that the strike looked close to an end.
Otherwise the labour scene looked bleak, with the bank
strike posing the most serious problems for Brazil's
crisis-laden economy.
"If this goes on for more than a few days it will have a
serious effect because normal financial operations will grind
to a halt," said a western diplomat in Sao Paulo.
Today Brazil's 50,000 university teachers in the 42 federal
universities launched a national strike, with a broad political
demand as well as a pay claim.
David Fleischer, head of the political science department
in Brasilia university, told Reuters the National Association
of Higher Education Teachers wanted a full congressional
inquiry into what had happened to government education funds.
He said the universities were strapped for cash and that
the association suspected the junior partner in the coalition
government, the Liberal Front Party, PFL, of using education
funds for projects which had helped their candidates in
elections. The PFL holds the Education Ministry.
Hardly any sectors of the economy are proving immune to the
current labour unrest, caused by the return of high inflation,
officially pegged at 33 pct for January-February.
Other possible strikes looming include stoppages by oil
industry workers and social security workers.
| Corporate News |
<ASTA GROUP INC> UNIT IN LOAN PURCHASE
| Asta Group Inc said its 50 pct
owned Liberty Service Corp affiliate has purchased about 50 mln
dlrs face value of credit card installment receivables from a
major financial institution it did not name for a significant
discount from face value.
It said the portfolio consists mostly of charged off loans.
The company also said it expects to realize a profit of
about 300,000 dlrs on its 25 pct interest in the Briarcliff
Manor condominium project in New York, with about 140,000 dlrs
of the profit being reflected in the year ending September 30.
| Financial Reports |
ARDEN INTERNATIONAL <AIKI> 4TH QTR DEC 27 NET
| Oper shr one ct vs two cts
Oper net 30,000 vs 62,000
Revs 2,315,000 vs 2,355,000
Year
Oper shr four cts vs nine cts
Oper net 95,000 vs 204,000
Revs 9,214,000 vs 9,950,000
Avg shrs 2,492,000 vs 2,351,000
NOTE: Full name is Arden International Kitchens Inc
More
| Financial Reports |
TWA <TWA> SELLS POSITION IN USAIR <U>
| Trans World Airlines Inc sold four mln
shares it held in USAir Group Inc, Wall Street sources said.
The sources said the buyers are believed to be a group of
institutions.
Bear Stearns handled the trade. It crossed the four mln
shares at 45, off 1/8. Bear Stearns would not comment on buyers
or sellers.
USAir and TWA had no immediate comment.
USAir later said it did not buy the stock. A company
spokesman would not comment further.
TWA earlier this month reported holding slightly more than
four mln shares, or about 15 pct of USAir. It had also proposed
a takeover of USAir, which at the time was negotiating its
proposed merger with Piedmont Aviation Inc.
On March 16, TWA withdrew its bid, saying it did not intend
to seek control of USAir Group or to acquire more of its stock
at the time.
TWA also said in the filing with the Securities and
Exchange Commission that its chairman, Carl Icahn is the target
of an SEC probe of alleged violations of securities laws.
In its filings with the SEC, TWA said it paid 178.2 mln
dlrs for its USAir stock.
"With this out of the way, if it indeed was bought by
institutions, it paves the way for better value for USAir stock
later," said Janney Montgomery analyst Louis Marckesano of
TWA's sale of its stock.
"Technically, as long as that block was overhanging the
market you didn't know what was going to happen," he said.
USAir stock was trading at 44-3/8, off 3/4 on volume of 4.4
mln shares. TWA stock rose one to 28-1/4.
| Financial Reports |
COMBUSTION ENGINEERING<CSP> SEES 1ST QTR NET OFF
| Combustion Engineering Inc said
it expects first quarter earnings to be 20 to 25 pct below the
year-ago 13.6 mln dlrs, mainly due to financing costs resulting
from the January 1987 acquisition of AccuRay Corp.
The company said it has filed for an offering of four mln
common shares and 150 mln dlrs of subordinated debentures due
2017, with proceeds to be used to refinance the short-term bank
debt incurred for the AccuRay acquisition, to finance other
costs of the transaction and for general corporate purposes.
Combustion said 3,500,000 shares will be sold in the U.S.
and the remainder overseas.
Combustion paid about 218 mln dlrs for AccuRay, a maker of
computer-based measurement and control systems used in pulp and
paper mills.
The company said it expects to release first quarter
results in the third week in April.
Combustion said it expects further restructuring of core
businesses -- particularly Lummus Crest -- this year through
staff reductions downsizings and the consolidation of
facilities.
Combustion said the restructuring at Lummus Crest is
expected to substantially reduce but not eliminate this year
losses in the Engineering and Construction segment.
But it said improvement at Lummus Crest is expected to be
approximately offset by a number of factors, including a
somewhat lower level of earnings in the Power Generation
segment than in 1986, financing costs of the AccuRay
acquisition, costs associated with integrating AccuRay
technology and operations and delays in waste to energy
projects.
| Financial Reports |
NEWMONT GOLD SEES ITS SALES RISING 22 PCT
| Newmont Gold Corp expects gold sales
in 1987 to rise about 22 pct to 577,000 ounces from 1986's
474,000 ounces, the company said in its annual report.
Newmont Gold, 95 pct owned by Newmont Mining Corp, said it
expects significant increases in gold sales in 1988 and 1989 as
well.
| Commodities and Trade |
Unilever Plc and Nv combined 1986 pre-tax profit 1.14 billion stg vs 953 mln.
|
Unilever Plc and Nv combined 1986 pre-tax profit 1.14 billion stg vs 953 mln.
| Commodities and Trade |
25-MAR-1987
| 25-MAR-1987
| Financial Reports |
TREASURY'S BAKER SAYS EXCHANGE RATE CHANGES WILL REDUCE TRADE DEFICIT THIS YEAR
|
TREASURY'S BAKER SAYS EXCHANGE RATE CHANGES WILL REDUCE TRADE DEFICIT THIS YEAR
| Other |
GATEWAY SPORTING BUYS INNOVATIVE DENTAL
| Gateway Sporting Goods Co said it
acquired all of the shares of stock of Innovative Dental
Services Inc for an undisclosed amount of cash.
Gateway said the acquired company has contracts with 102
dentists in 144 locations.
| Commodities and Trade |
TREASURY'S BAKER SEES CUT IN TRADE DEFICIT
| Treasury Secretary James Baker said
the administration is confident the effect of exchange rate
changes will bring about a cut in the trade deficit this year.
In testimony before the Senate Committee on Governmental
Affairs, Baker conceded that the effect thus far has "not yet
proved as quick or as strong as had been expected from past
experience."
He told the committee, however, that the "initial signs are
encouraging."
| Financial Reports |
CYCLOPS CORP REFORMS BOARD AFTER DIXONS GROUP FAILS TO GET MAJORITY OF CYCLOPS STOCK
|
CYCLOPS CORP REFORMS BOARD AFTER DIXONS GROUP FAILS TO GET MAJORITY OF CYCLOPS STOCK
| Commodities and Trade |
U.S. BANK NET FREE RESERVES 644 MLN DLRS IN TWO WEEKS TO FEB 25, FED SAYS
|
U.S. BANK NET FREE RESERVES 644 MLN DLRS IN TWO WEEKS TO FEB 25, FED SAYS
| Corporate News |
PAN ATLANTIC RE INC <PNRE> 4TH QTR NET
| Oper shr 15 cts vs 1.07 dlrs
Oper net 372,000 vs 2,601,000
Year
Oper shr 80 cts vs 61 cts
Oper net 1,952,000 vs 1,491,000
NOTE: Net excludes realized investment loss 13,000 dlrs vs
gain 986,000 dlrs in quarter and gains 1,047,000 dlrs vs
1,152,000 dlrs in year.
1986 year net excludes tax credit 919,000 dlrs.
| Financial Reports |
QUAKER CHEMICAL CORP <QCHM> SETS QUARTERLY
| Qtly div 12-1/2 cts vs 12-1/2 cts prior
Pay April 30
Record April 17
| Commodities and Trade |
MIDDLE SOUTH <MSU> TO CONSIDER DIVIDEND
| Middle South Utilities Inc will not
consider payment of a common stock dividend until there is
another ruling on a Mississippi Supreme Court order rolling
back rates at the company's Mississippi Power and Light Co
subsidiary, chairman Edwin Lupberger said.
He told security analysts Middle South was close to
recommending resumption of the common stock dividend when the
Mississippi court ordered the rate rollback. Following the
order, he noted, the unit cancelled a planned sale of preferred
stock. Middle South has petitioned the court for a rehearing or
a stay of the order while it is being appealed.
| Other |
BELGIUM PLANS TO OUTLAW INSIDER TRADING
| A Belgian finance ministry spokesman
said new rules planned on insider trading would enable
offenders to be fined and imprisoned for up to a year, and be
compelled to forfeit gains.
The new rules require parliamentary approval, and
government sources said it was unclear when they would come
into force. Insider trading is currently not an offence in this
country.
The cabinet approved a separate bill that analysts said
includes provisions to make more difficult the build-up of
major new stakes in Belgian companies.
The bill would make obligatory the declaration of major
stakes in companies quoted on the bourse with own resources of
more than 200 mln francs.
The Minister for Economic Affairs would need to be informed
in advance of deals under which foreign interests planned to
buy a new stake of more than ten pct of the voting shares in a
large Belgian company, or to increase an existing stake to more
than 20 pct.
| Financial Reports |
OWENS-CORNING FIBERGLAS <OCF> SELLS FOAM UNIT
| Owens-Corning Fiberglas Corp said
it sold its controlling interest in its French foam insulation
producing subsidiary to a Lafarege Corp <LAF> subsidiary.
Owens-Corning said it sold its interest in Sentuc Porxpan
SA for an undisclosed price.
| Financial Reports |
U.S. SHOE INC 4TH QTR SHR 31 CTS VS 56 CTS
|
U.S. SHOE INC 4TH QTR SHR 31 CTS VS 56 CTS
| Financial Reports |
TREASURY'S BAKER OUTLINES TRADE BILL CRITICISMS
| Treasury Secretary James Baker said
that some of the trade bills proposed by Congress conflict
significantly with certain basic principles the Reagan
administration considers critical.
Baker told a Senate committee that the administration would
resist such measures as a general import surcharge,
sector-specific protection such as import quotas for individual
products, mandatory retaliation, and limits on presidential
discretion in negotiating more open markets abroad and other
trade steps.
| Corporate News |
U.S. SHOE CORP <USR> 4TH QTR JAN 31 NET
| Shr 31 cts vs 56 cts
Net 13.7 mln vs 25.2 mln
Sales 610.9 mln vs 575.9 mln
Avg shrs 45.0 mln vs 44.8 mln
Year
Shr 57 cts vs 1.46 dlrs
Net 25.5 mln vs 64.9 mln
Sales 2.00 billion vs 1.92 billion
Avg shrs 45.0 mln vs 44.5 mln
NOTE: Current year net both periods includes gain five cts
shr from sale of Just for Kids! and Giggletree mail order
catalogs and charges of 10 cts shr from writedowns of assets
related to the closing of linens and domestics stores and
leased departments and of leased shoe departments.
Year net includes LIFO inventory charges six cts shr vs two
cts shr.
| Financial Reports |
OPEC WITHIN OUTPUT CEILING, SUBROTO SAYS
| Opec remains within its agreed output
ceiling of 15.8 mln barrels a day, and had expected current
fluctuations in the spot market of one or two dlrs, Indonesian
Energy Minister Subroto said.
He told reporters after meeting with President Suharto that
present weakness in the spot oil market was the result of
warmer weather in the U.S. And Europe which reduced demand for
oil.
Prices had also been forced down because refineries were
using up old stock, he said.
He denied that Opec was exceeding its agreed production
ceiling. Asked what Opec's output level was now, he replied:
"Below 15.8 (mln barrels per day)." He did not elaborate.
He said there appeared to have been some attempts to
manipulate the market, but if all Opec members stick by the
cartel's December pricing agreement it would get through
present price difficulties.
He predicted that prices would recover again in the third
and fourth quarters of 1987.
He also reiterated that there was no need for an emergency
Opec meeting.
He said Opec had expected to see some fluctuations in the
spot price. "We hope the weak price will be overcome, and
predict the price will be better in the third and fourth
quarters."
Refiners, he said, appeared to have used up old stock
deliberately to cause slack demand in the market and the price
to fall. But Opec would get through this period if members
stuck together.
| Commodities and Trade |
ARGENTINE SOYBEAN YIELD ESTIMATES DOWN FURTHER
| Argentine grain producers again
reduced their estimates for the total yield of the 1986/87
soybean crop, which will begin to be harvested in mid-April,
trade sources said.
They said growers now forecast soybean production this
season at between 7.5 and 7.8 mln tonnes, down from last week's
estimate of 7.7 to eight mln tonnes and the 8.0 to 8.4 mln
tonnes forecast in mid-February.
The new forecast is still higher than last season's record
total production.
Private sources put 1985/86 production at a record 7.2 to
7.3 mln tonnes -- 4.2 to 6.4 pct lower than the new forecast
for the current crop. The official figure for 1985/86 is 7.1
mln tonnes, 5.6 to 9.9 pct below this season's new estimates.
Growers in the past week discovered more empty soybean pods
in the main producing areas of southern Cordoba and Santa Fe
provinces and northern Buenos Aires.
The crop since January has been hit by high temperatures
and inadequate rainfall. Growers fear they may find more empty
pods and have to further reduce their forecasts of total yield.
The area sown to soybeans this season was a record 3.7 to
3.8 mln hectares, 10.8 to 13.8 pct higher than the 1985/86
record of 3.34 mln hectares.
The state of the crop continued to be good in general until
last week but intense, heavy rains since could have caused
damage in areas where rainfall was higher than 100 mm.
Where the rains were less heavy they were considered
beneficial although too late to improve yield estimates.
The rains also benefitted maize and sorghum crops in
southern Buenos Aires province but are not expected to
influence production forecasts.
In other areas, especially western Buenos Aires, where
rainfall was more than 200 mm, parts of the sunflower, maize
and sorghum crops not yet harvested may have been damaged.
The coarse grain crop harvest was interrupted last week by
rains which also reached over 100 mm in parts of Cordoba, La
Pampa and Santa Fe and almost 90 mm in parts of Entre Rios.
The area sown with maize this season was between 3.58 and
3.78 mln hectares, two to seven pct less than the 3.85 mln
hectares in 1985/86.
The yield of 1986/87 maize continued to be forecast at
between 9.9 and 10.1 mln tonnes.
This estimate is 19.8 to 20.2 pct lower than the 12.4 to
12.6 mln tonnes at which private sources put 1985/86 production
and 21.1 to 22.7 pct lower than the official 12.8 mln tonnes.
The sunflowerseed harvest has covered 23 to 26 pct of the
area sown and continues in parts of central Buenos Aires
although at a standstill elsewhere due to rain and floods.
A resumption of full harvesting and assessment of damage is
impossible until rains stop and a spell of a week to 10 days of
sunshine dries the fields.
The area sown this season was 2.0 to 2.2 mln hectares, down
29.9 to 36.3 pct on last year's record 3.14 mln hectares.
Sunflowerseed 1986/87 production is still forecast at 2.3
to 2.6 mln tonnes, 34.1 to 41.5 pct below the 1985/86 record of
4.1 mln tonnes.
The grain sorghum harvest was the least affected by the
rains, advancing steadily in Santa Fe and Cordoba and starting
in La Pampa to cover 14 to 16 pct of the total area sown.
The area sown was 1.23 to 1.30 mln hectares, 10.3 to 15.2
pct less than the 1.45 mln hectares the previous season.
Yield estimates remained at 3.2 to 3.5 mln tonnes, 16.7 to
22 pct down on 1985/86 production of 4.1 to 4.2 mln tonnes.
| Market and Economy |
VERTEX INDUSTRIES INC <VETX> 2ND QTR JAN 31 NET
| Oper shr loss three cts vs loss four cts
Oper loss 40,870 vs loss 39,827
Revs 584,855 vs 727,432
Six mths
Oper shr loss two cts vs loss two cts
Oper loss 24,311 vs loss 26,947
Revs 1,246,992 vs 1,497,251
NOTE: Current periods exclude net gain of 150,865 dlrs from
termination of retirement plan for salaried employees. Also
excludes gain of 83,100 dlrs from in current qtr and gain
90,400 dlrs in six mths from benefit of tax loss carryforwards.
Company went public in September 1986.
| Financial Reports |
CYCLOPS <CYL> SAYS DIXONS APPOINTEES RESIGN
| Cyclops Corp said the three
members of its board appointed last week by <Dixons Group PLC>
had resigned and that it named three Cyclops executives to
replace them.
Cyclops said the moves followed the announcement earlier
today by Dixons that it received only 20 pct of Cyclops
outstanding common stock under an extended tender offer that
expired yesterday.
Dixons initially ended its 90.25 dlr a share tender offer
on March 17 after receiving 54 pct of Cyclops shares.
However, the Securities and Exchange Commission last Friday
pressed Dixons to reopen the offer because the U.K.-based
company had dropped a condition that at least 80 pct of Cyclops
stock be tendered by the close of the offer.
Dixons then extended the offer until yesterday and earlier
today indicated that a substantial number of tendered Cyclops
shares had been withdrawn, leaving it with only 852,000 shares,
or just over 20 pct of the roughly 4.26 mln Cyclops shares
outstanding.
Dixons said today that it purchased the tendered shares,
which, when combined with the shares it already holds, gives it
a 21.7 pct stake in Cyclops.
Cyclops said its reconstituted board includes the three
newly named directors and five outside directors, all of whom
were on the board prior to Dixons tender offer.
The three Cyclops directors were replaced by Dixons
appointees on March 17 under an agreement reached between the
two companies.
| Financial Reports |
ECUADOR NEGOTIATES WITH NIGERIA FOR LENDING OIL
| Earthquake-stricken Ecuador is
negotiating with Nigeria to have the African country lend it
10,000 barrels per day (bpd) of crude for export, Deputy Energy
Minister Fernando Santos Alvite told Reuters.
He said Ecuador was negotiating a shipments schedule and
the terms of repaying the loan. Ecuador has suspended crude
exports for about five months until it repairs a pipeline
ruputured by a March five tremor.
Santos Alvite added Ecuador is finalizing details for a
program under which Venezuela would temporarily lend the
country 50,000 bpd for export.
| Other |
U.K. MONEY MARKET GIVEN 24 MLN STG ASSISTANCE
| The Bank of England said it provided 24
mln stg help to the money market in the morning session.
This compares with the bank's upward revised shortage
forecast of around 500 mln stg.
The central bank purchased bank bills outright comprising
two mln stg in band one at 10-7/8 pct and 22 mln stg in band
two at 10-13/16 pct.
| Corporate News |
NORTHERN STATES POWER CO <NSP> VOTES QUARTERLY
| Qtly div 47-1/2 cts vs 47-1/2 cts prior qtr
Pay 20 April
Record 6 April
| Market and Economy |
SUMMIT TAX EXEMPT BOND FUND <SUA> SETS PAYOUT
| Qtrly div 40 cts vs 40 cts prior
Pay Aug 14, 1987
Record April One, 1987
| Market and Economy |
U.S. SENATE TRADE LEADER CONCERNED ABOUT CANADA
| The chairman of the U.S. Senate
committee with jurisdiction over trade said he was concerned
about a resolution on bilateral trade negotiations adopted by
the Canadian House of Commons last week.
The resolution supports negotiation of a bilateral trading
agreement with the United States while protecting Canadian
political sovereignty, social programs, agricultural marketing
systems, the auto industry and Canada's cultural identity.
Senate Finance Committee chairman Lloyd Bentsen said the
resolution may jeopardize the viability of the proposed free
trade agreement between the two countries, which are each
other's largest trading partners.
"We need a truly free trade agreement, which means both
countries have to work toward a deal that is mutually
beneficial and comprehensive, a large agreement," the Texas
Democrat said in a statement.
"I do not question Canada's right to protect its political
sovereignty or cultural identity. However, if these phrases
mean the government of Canada means to take important economic
issues off the table in these negotiations, I am deeply
concerned," he added.
Bentsen said Canada restricts trade 15 different ways while
the United States uses only six trade restriction methods. He
said if Canada proposes an agreement where both countries get
rid of six methods of trade restriction, it would not be fair
and might not win Senate approval.
"I am deeply concerned that when the President visits Prime
Minister (Brian) Mulroney next month, he will be presented with
this kind of argument, and I hope he makes it clear -- as I did
when I was in Canada -- that only a mutually beneficial
agreement will be successful," Bentsen said.
Reagan and Mulroney are scheduled to meet April 5-6 in
Ottawa.
Bentsen urged Mulroney to withdraw a proposal that would
ban imports of independently produced films into Canada by
non-Canadians, which the senator called a protectionist
measure.
| Market and Economy |
BAKER SAYS U.S. WILLING TO COOPERATE TO STABILIZE EXCHANGE RATES
|
BAKER SAYS U.S. WILLING TO COOPERATE TO STABILIZE EXCHANGE RATES
| Commodities and Trade |
BAKER SAYS U.S. WANTS TO STABILIZE EXCHANGE RATES
| Treasury Secretary James Baker said
the United States and other nations were willing to cooperate
to stabilize foreign exchange rates at the levels that existed
at the time of an international agreement last month.
"Our position with respect to the dollar goes back to the
Paris Agreement that the currencies were within ranges broadly
consistent with underlying economic conditions," Baker told a
Senate committee.
Baker continued, "We said further that we and others are
willing to cooperate closely to foster stability in exchange
rates around those levels."
He referred to a February agreement by six leading
industrial nations to cooperate on monetary matters.
Baker refused to answer a question whether Japan and
Germany had done enough to stimulate their domestic economies
for the United States to support the dollar.
"I will not comment because the foreign exchange market
reads more or less than is intended in my statements," Baker
said.
Baker said that the other signatories recognized that they
must carry their share of the load of correcting external
imbalances that have hindered the world's economy.
He cited news reports that Germany would increase a
proposed tax cut for 1988 by about five billion marks to
stimulate domestic growth.
Japan also agreed to consider stimulative measures after
the Japanese budget was made final.
Baker said those nations were stimulating their economies
in a manner consistent with gains against inflation.
| Corporate News |
FIRST FEDERAL DELAWARE AGREEMENT EXTENDED
| <First Federal Savings Bank>
of Delaware said its agreement to negotiate exclusively for its
sale with <Oxford Financial Group> has been extended until
April 8 from March 18.
The company said it is in the final stages of talks with
Oxford over the terms of the proposed acquisition. Under a
nonbinding letter of intent signed in June 1986, Oxford would
pay 11 dlrs per First Federal share, subject to First Federal
shareholder approval.
| Financial Reports |
EDELMAN GROUP IN PLAN TO BUY MORSE SHOE <MRS>
| A group led by New York investor
Asher Edelman said Morse Shoe Inc agreed to provide it
confidential company information and that his group would make
an offer to buy Morse only in a friendly, negotiated deal.
The group also said in a filing with the Securities and
Exchange Commission that its members would not, without Morse
approval, buy or offer to buy any company securities giving the
group a 10 pct or more stake in the company.
Edelman and his group said his terms held until the earlier
of 90 days from March 3 or the date on which Morse announces a
definite agreement for its sale.
At the same time, the Edelman group said it cut its stake
in Morse to 8.4 pct from 9.7 pct.
| Corporate News |
JOHN LABATT SEES GOOD FOURTH QUARTER, YEAR
| <John Labatt Ltd> anticipates a good
fourth quarter and a new peak in sales and earnings for the
fiscal year ending April 30, president Peter Widdrington told
financial analysts.
He would not make any specific forecast, but said he was
optimistic for further growth in fiscal 1988 in the company's
brewing and food products operations.
Labatt's earnings rose to 92.8 mln dlrs in the nine months
ended January 31 from year-earlier 78 mln dlrs. Revenue for the
nine months rose to 3.20 billion dlrs from 2.70 billion dlrs.
Widdrington said Labatt's three-year business plan, now
being updated, targets total sales of about six billion dlrs,
including 2.50 billion dlrs in the U.S.
Labatt, Canada's leading brewer, has expanded in the U.S.
food products industry by acquisitions.
Widdrington said Labatt's strategy for U.S. expansion
stemmed partly from its strong market position in the Canadian
food and beverage industry. The U.S. share of revenues for this
year will be about 35 pct, rising to 40 pct in fiscal 1988, he
said.
| Commodities and Trade |
HUSKY <HYO> SETS MEETING TO APPROVE MERGER
| Husky Oil Ltd said the board
called a special meeting for April 22 for shareholders to vote
on its previously announced agreement for Hong Kong-based
Hutchison Whampoa Ltd and Hongkong Electric Holdings Ltd to
acquire a 43 pct interest in the company.
The acquisition requires two-thirds approval by Husky
shareholders other than <Nova, An Alberta Corp>, which owns a
57 pct interest in Husky.
If approved by shareholders, the amalgamation will take
effect April 30, Husky said.
Following completion, Oil Term Holdings Ltd, a new company
controlled by Nova, will hold a 43 pct stake in Husky.
Hutchison and Hongkong will indirectly hold 43 pct, Victor T.K.
Li will own nine pct and <Canadian Imperial Bank of Commerce>
will have a five pct interest.
Husky said a special committee of five outside directors
recommended the board approve the transaction after determining
that the deal was in the best interests of Husky and fair to
shareholders.
Husky previously announced shareholders will have the
option to receive 11.80 Canadian dlrs cash for each common, or
6.726 dlrs cash and one common share of Oil Term Investment
Ltd, which will be controlled by Nova through Oil Term Holdings
and own an insterest in Husky.
U.S. shareholders will be restricted to the right to
receive 11.80 Canadian dlrs cash per share, which will be paid
in U.S. funds, the company said.
| Other |
WASHINGTON GAS LIGHT CO <WGL> HIKES PAYOUT
| Qtly div 45 cts vs 44 cts prior
Pay May one
Record April 10
| Commodities and Trade |
FERC DECISION COULD CUT COLUMBIA GAS <CG> NET
| Columbia Gas System Inc said a
Federal Energy Regulatory Commission decision today on natural
gas cost recovery could reduce its 1987 earnings by about 1.25
dlrs a share.
The company said "this could bring earnings for 1987 below
Columbia's stated goal of earning no less than its 3.18 dlrs
per share dividend." It earned 2.12 dlrs a share in 1986.
It said management expects to recommend to the board that
the dividend rate be maintained in 1987.
Columbia Gas said the impact of the FERC decision may be
offset by a one-time accounting change rleated to future tax
liabilities under the new federal tax laws.
The company recorded these liabilities based on older,
higher tax rates, but an action being considered by the
Financial Accounting Standards Board could result in a gain of
about 1.20 dlrs a share in 1987, it explained.
"Thus there is a good chance that we will attain our 1987
earnings goal -- although not in the way originally planned,"
Columbia Gas said.
Columbia Gas said the FERC decision would limit the
recovery of certain gas contract costs by Columbia Gas
Transmission Corp, the company's principal pipeline subsidiary.
It said the decision specifically excluded from a purchased
gas adjustment filing by the pipeline costs related to
amortizing payments made to producers to reform gas purchase
contracts. These were excluded on the grounds the subsidiary
failed to sufficiently support cost recovery.
The company said its subsidiary is not precluded from
making a new filing to provide sufficient support.
| Financial Reports |
JAPAN'S UNEMPLOYMENT RATE SEEN RISING TO 3.5 PCT
| Japan's unemployment rate is expected to
continue to climb to about 3.5 pct within the next year from
January's three pct record, senior economists, including Susumu
Taketomi of Industrial Bank of Japan, said.
December's 2.9 pct was the previous worst level since the
government's Management and Coordination Agency began compiling
statistics under its current system in 1953.
"There is a general fear that we will become a country with
high unemployment," said Takashi Kiuchi, senior economist for
the Long-Term Credit Bank of Japan Ltd.
The government, which published the January unemployment
figures today, did not make any predictions.
"At present we do not have a forecast for the unemployment
rate this year, but it is difficult to foresee the situation
improving," a Labour Ministry official said.
Finance Minister Kiichi Miyazawa said the government had
expected the increase and had set aside money to help 300,000
people find jobs in fiscal 1987 beginning in April.
Prime Minister Yasuhiro Nakasone told a press conference
the record rate underlines the need to pass the 1987 budget
which has been held up by opposition to proposed tax reforms.
The yen's surge has caused layoffs in the mainstay steel
and shipbuilding industries. Other export-dependent industries,
such as cars and textiles, have laid off part-time employees
and ceased hiring, economists said.
Although the growing service industry sector has absorbed a
great number of workers the trend is starting to slow down,
said Koichi Tsukihara, Deputy General Manager of Sumitomo Bank
Ltd's economics department.
However, other economists disagreed, saying the service
sector would be able to hire workers no longer needed by the
manufacturing sector over the next five years.
| Corporate News |
U.S. OFFERS MORE CREDITS FOR VEG OIL TO N. YEMEN
| The U.S. Commodity Credit
Corporation (CCC) has authorized an additional 10.0 mln dlrs in
credit guarantees to cover sales of U.S. vegetable oils to
North Yemen, the U.S. Agriculture Department said.
The department also said at the request of the North Yemen
Government five mln dlrs in credit guarantees previously
earmarked for sales of wheat have been switched to cover sales
of mixed poultry feed.
The actions increase the value of credit guarantees for
vegetable oil for the current fiscal year to 38 mln dlrs,
reduce the guarantee coverage for sales of wheat to eight mln
dlrs and increase the coverage for sales of mixed poultry feed
to 10 mln dlrs.
All exports must be completed by September 30, 1987.
| Other |
PUERTO RICAN CEMENT CO <PRN> SETS PAYOUT
| Qtly div five cts vs five cts prior
Pay May 13
Record April 14
NOTE: Company said up to 20 pct of dividend payment may be
withheld in accordance with Puerto Rico tax law.
| Financial Reports |
CANADA MAY MONITOR STEEL SHIPMENTS
| Canada may begin monitoring steel
flowing in and out of the country to determine if any steel is
being illegally "trans-shipped" to the U.S., senior government
trade officials said.
The officials, asking not to be identified, said the
government will investigate an industry contention that steel
imported from countries such as South Korea and Taiwan is being
diverted to the U.S. and ultimately exasperating concerns about
the level of Canadian exports south of the border.
But the senior officials, asking not to be indentified,
said that despite intense pressure from the Reagan
Administration, Ottawa was not considering any kind of formal
limits on Canadian shipments to the U.S.
"In a sense what I hope we are doing is buying some time,"
said one official who claimed Canadian companies were "fair
traders" in the big American market.
If approved by the Canadian cabinet, the officials said a
monitoring system will be established in the next three or four
months.
"I guess if we find trans-shipment is a problem, we would
have to do something about it," said a trade official.
Canadian steel shipments to the U.S. have risen to 5.7 pct
of the U.S. market in recent months, almost double the level
just two years ago.
The increase in Canadian shipments comes at a time of
growing anger in the U.S. over rising steel imports from
several countries in the face of a decline among domestic steel
producers.
Some U.S. lawmakers have proposed Canada's share of the
American market be limited to 2.4 per cent.
The Ontario Government has urged Ottawa to require foreign
companies to obtain permits to import steel into the country.
Currently, import licences are required only for carbon or raw
steel, which makes up less than half the steel market.
Canada exported two billion Canadian dlrs worth of steel in
1986, while importing 944-mln dlrs worth of the product in the
same year.
| Corporate News |
WESCO FINANCIAL CORP <WSC> 4TH QTR NET
| Shr 79 cts vs 5.05 dlrs
Net 5,628,000 vs 35,936,000
Revs 41.8 mln vs 39.4 mln
Year
Shr 2.32 dlrs vs 7.24 dlrs
Net 16,524,000 vs 51,541,000
Revs 160.2 mln vs 114.9 mln
Note: Current qtr figures include securities gain of 2.1
mln dlrs, or 29 cts per share, vs gain of 34.3 mln dlrs, or
4.81 dlrs per share.
Current year figures include security gain of 4.6 mln dlrs,
or 64 cts per share, vs gain of 41.5 mln dlrs, or 5.83 dlrs per
share.
| Commodities and Trade |
HELM <H> SELLS ADDITIONAL SHARES IN BAMBERGER
| Helm Resources Inc said that, pursuant
to the exercise of an overallotment option by underwriters in
Bamberger Polymers INc's initial public offering, it has sold
another 35,000 Bamberger shares and reduced its ownership in
Bamberger to 51 pct from 55 pct.
To date, Helm has sold 435,000 Bamberger's for 3.5 mln
dlrs.
Bamberger has sold a total of 600,000 shares and received
net proceeds of about 4.8 mln dlrs since the February 1987
offering.
| Other |
AMPAL-AMERICAN ISRAEL CORP <AIS.A> YEAR NET
| Shr 27 cts vs 25 cts
Net 6,416,000 vs 5,988,000
Revs 112.2 mln vs 99.8 mln
NOTE: 1985 includes extraordinary income of 647,000 dlrs or
three cts/shr. 1985 restated.
| Financial Reports |
COCOA COUNCIL CHAIRMAN SEEKS BUFFER COMPROMISE
| International Cocoa Organization, ICCO,
Council chairman, Denis Bra Kanon, said he will attempt to
reach a compromise on buffer stock rules for the International
Cocoa Agreement.
Bra Kanon called for bilateral consultations among
producers and consumers Thursday morning to resolve outstanding
differences on how much non-member cocoa the buffer stock can
purchase and differentials to be fixed for different origin
cocoa, consumer delegates told reporters.
Bra Kanon is expected to meet with about eight delegations
individually in attempt to iron out remaining problems.
Producers and consumers indicated support "in principle" for
the draft buffer stock rules package formulated over the past
week by a small working group, consumer delegates said.
Despite remaining differences delegates remained confident
a buffer stock accord would be agreed to by Friday when the
council session ends, but certain technical points need further
clarification, the delegates said.
Certain consumers are concerned that differentials included
in the draft buffer stock package are out of line with market
realities, consumer delegates said.
Unless these are modified there are fears it would promote
purchases of quality cocoas, such as Ghana origin, which are
normally required by manufacturers, they said.
Restrictions on buffer stock purchases of non-member cocoa
might lead to a supply overhang in Malaysian cocoa, which would
depress prices, they added.
| Financial Reports |
SNC GROUP EXPECTS HIGHER 1987 EARNINGS, SALES
| <SNC Group Inc> expects 1987 earnings
to rise to 1.20-1.40 dlrs a share from 91 cts a share last
year, with revenues climbing to about 430 mln dlrs from last
year's 350 mln dlrs, president Alex Taylor said before the
annual meeting.
SNC, Canada's second biggest engineering and construction
group, became the country's largest ammunition manufacturer
last year with its 90 mln dlr acquisition of Canadian Arsenals
Ltd from the Canadian government.
The impact of that and several smaller deals will be felt
fully in 1987, Taylor said.
Defense preoducts and other manufacturing operations will
account for more than half SNC's total 1987 revenues, helping
to counterbalance the more cyclical engineering and
construction acivities, Taylor said.
Last year, SNC earned 8.7 mln dlrs, including a small
extraordinary gain.
In 1987, a total manufacturing activities will generate
about 235 mln dlrs in revenues, and engineering and
construction about 200 mln dlrs, he said, adding that defense
products operations should be a major contributor to earnings.
| Corporate News |
MINE SAFETY <MNES> SELLS SOUTH AFRICA UNIT
| Mine Safety Appliances Co said it
will sell through its German subsidiary, Auergesellschaft, its
controlling interest in MSA (Africa), (PTY) Ltd, of
Johannesburg, South Africa to Boart International, a wholly-
owned subsidiary of Anglo American Corp of South Africa Ltd
<ANGL>.
The company said the terms of the sale were not disclosed.
The company will operate as Boart-MSA (PTY) Ltd, it said.
L.N. Short Jr, president of the company, said it sold the
unit because of slumping profits due to South Africa's economic
decline.
| Corporate News |
MEDAR INC <MDXR> 4TH QTR DEC 31 LOSS
| Shr loss 10 cts vs loss nine cts
Net loss 558,800 vs loss 469,200
Sales 5.5 mln vs two mln
Nine mths ended Dec 31
Shr profit two cts vs loss four cts
Net profit 91,045 vs loss 207,000
Sales 17.3 mln vs 8.4 mln
Avg shrs 5,465,433 vs 5,037,819
Year ended March 31
Shr loss 28 cts vs profit 19 cts
Net loss 1,356,321 vs profit 818,723
Sales 10.9 mln vs 12.2 mln
Avg shrs 4,862,499 vs 4,683,591
Note: Medar changed end of fiscal year to December 31 to be
more in phase with business cycle of its major customers.
| Commodities and Trade |
MEDAR <MDXR> CHANGES FISCAL YEAR
| Medar Inc said it
changed the end of its fiscal year to December 31 from March
31.
The company, in reporting its annual results, said the
change was made to bring its financial reporting in phase with
the order cycle of its major customers.
Medar earlier said it lost 558,800 dlrs in its final 1986
quarter, compared to a loss of 469,200 dlrs in the same 1985
quarter.
| Financial Reports |
U.S. SECURITIES INDUSTRY ASSN BACKS RESTRAINTS ON TAKEOVERS, INSIDER TRADING
|
U.S. SECURITIES INDUSTRY ASSN BACKS RESTRAINTS ON TAKEOVERS, INSIDER TRADING
| Financial Reports |
CHEMFIX TECHNOLOGIES INC <CFIX> 2ND QTR NET
| Ended Feb 28
Shr profit one ct vs loss four cts
Net profit 53,040 vs loss 255,568
Revs 2,252,246 vs 755,605
Six mths
Shr profit three cts vs loss eight cts
Net profit 217,884 vs loss 517,538
Revs 4,895,720 vs 1,569,662
| Corporate News |
ALLIS-CHALMERS <AH> SELLS SWISS UNIT
| Allis-Chalmers Corp said it
has sold its Elex Ag unit in Zurich, Switzerland, to private
investors for an undisclosed amount.
The company said Elex produces electrostatic precipitators
used in air pollution control.
| Corporate News |
FLORIDA EMPLOYERS INSURANCE CO <FLAE> YEAR 1986
| Shr 29 cts vs nine cts
Net 651,000 vs 214,000
NOTE: 1986 net includes loss of 500,000 dlrs for
extraordinary item.
| Corporate News |
SHELL OIL GETS 104.3 MLN DLR CONTRACT
| Shell Oil Co of Houston has been
awarded a 104.3 mln dlr contract for jet fuel, the Defense
Logistics Agency said.
| Corporate News |
NIKE INC <NIKE> 3RD QTR FEB 28 NET
| Shr 12 cts vs 30 cts
Net 4,255,000 vs 11.5 mln
Revs 199.4 mln vs 258.7 mln
Nine mths
Shr 64 cts vs 1.19 dlrs
Net 24.4 mln vs 45.5 mln
Revs 639.7 mln vs 824.3 mln
| Corporate News |