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BAHIA COCOA REVIEW | Showers continued throughout the week in
the Bahia cocoa zone, alleviating the drought since early
January and improving prospects for the coming temporao,
although normal humidity levels have not been restored,
Comissaria Smith said in its weekly review.
The dry period means the temporao will be late this year.
Arrivals for the week ended February 22 were 155,221 bags
of 60 kilos making a cumulative total for the season of 5.93
mln against 5.81 at the same stage last year. Again it seems
that cocoa delivered earlier on consignment was included in the
arrivals figures.
Comissaria Smith said there is still some doubt as to how
much old crop cocoa is still available as harvesting has
practically come to an end. With total Bahia crop estimates
around 6.4 mln bags and sales standing at almost 6.2 mln there
are a few hundred thousand bags still in the hands of farmers,
middlemen, exporters and processors.
There are doubts as to how much of this cocoa would be fit
for export as shippers are now experiencing dificulties in
obtaining +Bahia superior+ certificates.
In view of the lower quality over recent weeks farmers have
sold a good part of their cocoa held on consignment.
Comissaria Smith said spot bean prices rose to 340 to 350
cruzados per arroba of 15 kilos.
Bean shippers were reluctant to offer nearby shipment and
only limited sales were booked for March shipment at 1,750 to
1,780 dlrs per tonne to ports to be named.
New crop sales were also light and all to open ports with
June/July going at 1,850 and 1,880 dlrs and at 35 and 45 dlrs
under New York july, Aug/Sept at 1,870, 1,875 and 1,880 dlrs
per tonne FOB.
Routine sales of butter were made. March/April sold at
4,340, 4,345 and 4,350 dlrs.
April/May butter went at 2.27 times New York May, June/July
at 4,400 and 4,415 dlrs, Aug/Sept at 4,351 to 4,450 dlrs and at
2.27 and 2.28 times New York Sept and Oct/Dec at 4,480 dlrs and
2.27 times New York Dec, Comissaria Smith said.
Destinations were the U.S., Covertible currency areas,
Uruguay and open ports.
Cake sales were registered at 785 to 995 dlrs for
March/April, 785 dlrs for May, 753 dlrs for Aug and 0.39 times
New York Dec for Oct/Dec.
Buyers were the U.S., Argentina, Uruguay and convertible
currency areas.
Liquor sales were limited with March/April selling at 2,325
and 2,380 dlrs, June/July at 2,375 dlrs and at 1.25 times New
York July, Aug/Sept at 2,400 dlrs and at 1.25 times New York
Sept and Oct/Dec at 1.25 times New York Dec, Comissaria Smith
said.
Total Bahia sales are currently estimated at 6.13 mln bags
against the 1986/87 crop and 1.06 mln bags against the 1987/88
crop.
Final figures for the period to February 28 are expected to
be published by the Brazilian Cocoa Trade Commission after
carnival which ends midday on February 27.
Reuter
|
STANDARD OIL <SRD> TO FORM FINANCIAL UNIT | Standard Oil Co and BP North America
Inc said they plan to form a venture to manage the money market
borrowing and investment activities of both companies.
BP North America is a subsidiary of British Petroleum Co
Plc <BP>, which also owns a 55 pct interest in Standard Oil.
The venture will be called BP/Standard Financial Trading
and will be operated by Standard Oil under the oversight of a
joint management committee.
Reuter
|
TEXAS COMMERCE BANCSHARES <TCB> FILES PLAN | Texas Commerce Bancshares Inc's Texas
Commerce Bank-Houston said it filed an application with the
Comptroller of the Currency in an effort to create the largest
banking network in Harris County.
The bank said the network would link 31 banks having
13.5 billion dlrs in assets and 7.5 billion dlrs in deposits.
Reuter
|
TALKING POINT/BANKAMERICA <BAC> EQUITY OFFER | BankAmerica Corp is not under
pressure to act quickly on its proposed equity offering and
would do well to delay it because of the stock's recent poor
performance, banking analysts said.
Some analysts said they have recommended BankAmerica delay
its up to one-billion-dlr equity offering, which has yet to be
approved by the Securities and Exchange Commission.
BankAmerica stock fell this week, along with other banking
issues, on the news that Brazil has suspended interest payments
on a large portion of its foreign debt.
The stock traded around 12, down 1/8, this afternoon,
after falling to 11-1/2 earlier this week on the news.
Banking analysts said that with the immediate threat of the
First Interstate Bancorp <I> takeover bid gone, BankAmerica is
under no pressure to sell the securities into a market that
will be nervous on bank stocks in the near term.
BankAmerica filed the offer on January 26. It was seen as
one of the major factors leading the First Interstate
withdrawing its takeover bid on February 9.
A BankAmerica spokesman said SEC approval is taking longer
than expected and market conditions must now be re-evaluated.
"The circumstances at the time will determine what we do,"
said Arthur Miller, BankAmerica's Vice President for Financial
Communications, when asked if BankAmerica would proceed with
the offer immediately after it receives SEC approval.
"I'd put it off as long as they conceivably could," said
Lawrence Cohn, analyst with Merrill Lynch, Pierce, Fenner and
Smith.
Cohn said the longer BankAmerica waits, the longer they
have to show the market an improved financial outlook.
Although BankAmerica has yet to specify the types of
equities it would offer, most analysts believed a convertible
preferred stock would encompass at least part of it.
Such an offering at a depressed stock price would mean a
lower conversion price and more dilution to BankAmerica stock
holders, noted Daniel Williams, analyst with Sutro Group.
Several analysts said that while they believe the Brazilian
debt problem will continue to hang over the banking industry
through the quarter, the initial shock reaction is likely to
ease over the coming weeks.
Nevertheless, BankAmerica, which holds about 2.70 billion
dlrs in Brazilian loans, stands to lose 15-20 mln dlrs if the
interest rate is reduced on the debt, and as much as 200 mln
dlrs if Brazil pays no interest for a year, said Joseph
Arsenio, analyst with Birr, Wilson and Co.
He noted, however, that any potential losses would not show
up in the current quarter.
With other major banks standing to lose even more than
BankAmerica if Brazil fails to service its debt, the analysts
said they expect the debt will be restructured, similar to way
Mexico's debt was, minimizing losses to the creditor banks.
Reuter
|
NATIONAL AVERAGE PRICES FOR FARMER-OWNED RESERVE | The U.S. Agriculture Department
reported the farmer-owned reserve national five-day average
price through February 25 as follows (Dlrs/Bu-Sorghum Cwt) -
Natl Loan Release Call
Avge Rate-X Level Price Price
Wheat 2.55 2.40 IV 4.65 --
V 4.65 --
VI 4.45 --
Corn 1.35 1.92 IV 3.15 3.15
V 3.25 --
X - 1986 Rates.
Natl Loan Release Call
Avge Rate-X Level Price Price
Oats 1.24 0.99 V 1.65 --
Barley n.a. 1.56 IV 2.55 2.55
V 2.65 --
Sorghum 2.34 3.25-Y IV 5.36 5.36
V 5.54 --
Reserves I, II and III have matured. Level IV reflects
grain entered after Oct 6, 1981 for feedgrain and after July
23, 1981 for wheat. Level V wheat/barley after 5/14/82,
corn/sorghum after 7/1/82. Level VI covers wheat entered after
January 19, 1984. X-1986 rates. Y-dlrs per CWT (100 lbs).
n.a.-not available.
Reuter
|
ARGENTINE 1986/87 GRAIN/OILSEED REGISTRATIONS | Argentine grain board figures show
crop registrations of grains, oilseeds and their products to
February 11, in thousands of tonnes, showing those for futurE
shipments month, 1986/87 total and 1985/86 total to February
12, 1986, in brackets:
Bread wheat prev 1,655.8, Feb 872.0, March 164.6, total
2,692.4 (4,161.0).
Maize Mar 48.0, total 48.0 (nil).
Sorghum nil (nil)
Oilseed export registrations were:
Sunflowerseed total 15.0 (7.9)
Soybean May 20.0, total 20.0 (nil)
The board also detailed export registrations for
subproducts, as follows,
SUBPRODUCTS
Wheat prev 39.9, Feb 48.7, March 13.2, Apr 10.0, total
111.8 (82.7) .
Linseed prev 34.8, Feb 32.9, Mar 6.8, Apr 6.3, total 80.8
(87.4).
Soybean prev 100.9, Feb 45.1, MAr nil, Apr nil, May 20.0,
total 166.1 (218.5).
Sunflowerseed prev 48.6, Feb 61.5, Mar 25.1, Apr 14.5,
total 149.8 (145.3).
Vegetable oil registrations were :
Sunoil prev 37.4, Feb 107.3, Mar 24.5, Apr 3.2, May nil,
Jun 10.0, total 182.4 (117.6).
Linoil prev 15.9, Feb 23.6, Mar 20.4, Apr 2.0, total 61.8,
(76.1).
Soybean oil prev 3.7, Feb 21.1, Mar nil, Apr 2.0, May 9.0,
Jun 13.0, Jul 7.0, total 55.8 (33.7). REUTER
|
RED LION INNS FILES PLANS OFFERING | Red Lion Inns Limited Partnership
said it filed a registration statement with the Securities and
Exchange Commission covering a proposed offering of 4,790,000
units of limited partnership interests.
The company said it expects the offering to be priced at 20
dlrs per unit.
It said proceeds from the offering, along with a 102.5 mln
dlr mortgage loan, will be used to finance its planned
acquisition of 10 Red Lion hotels.
Reuter
|
USX <X> DEBT DOWGRADED BY MOODY'S | Moody's Investors Service Inc said it
lowered the debt and preferred stock ratings of USX Corp and
its units. About seven billion dlrs of securities is affected.
Moody's said Marathon Oil Co's recent establishment of up
to one billion dlrs in production payment facilities on its
prolific Yates Field has significant negative implications for
USX's unsecured creditors.
The company appears to have positioned its steel segment
for a return to profit by late 1987, Moody's added.
Ratings lowered include those on USX's senior debt to BA-1
from BAA-3.
Reuter
|
CHAMPION PRODUCTS <CH> APPROVES STOCK SPLIT | Champion Products Inc said its
board of directors approved a two-for-one stock split of its
common shares for shareholders of record as of April 1, 1987.
The company also said its board voted to recommend to
shareholders at the annual meeting April 23 an increase in the
authorized capital stock from five mln to 25 mln shares.
Reuter
|
COMPUTER TERMINAL SYSTEMS <CPML> COMPLETES SALE | Computer Terminal Systems Inc said
it has completed the sale of 200,000 shares of its common
stock, and warrants to acquire an additional one mln shares, to
<Sedio N.V.> of Lugano, Switzerland for 50,000 dlrs.
The company said the warrants are exercisable for five
years at a purchase price of .125 dlrs per share.
Computer Terminal said Sedio also has the right to buy
additional shares and increase its total holdings up to 40 pct
of the Computer Terminal's outstanding common stock under
certain circumstances involving change of control at the
company.
The company said if the conditions occur the warrants would
be exercisable at a price equal to 75 pct of its common stock's
market price at the time, not to exceed 1.50 dlrs per share.
Computer Terminal also said it sold the technolgy rights to
its Dot Matrix impact technology, including any future
improvements, to <Woodco Inc> of Houston, Tex. for 200,000
dlrs. But, it said it would continue to be the exclusive
worldwide licensee of the technology for Woodco.
The company said the moves were part of its reorganization
plan and would help pay current operation costs and ensure
product delivery.
Computer Terminal makes computer generated labels, forms,
tags and ticket printers and terminals.
Reuter
|
COBANCO INC <CBCO> YEAR NET | Shr 34 cts vs 1.19 dlrs
Net 807,000 vs 2,858,000
Assets 510.2 mln vs 479.7 mln
Deposits 472.3 mln vs 440.3 mln
Loans 299.2 mln vs 327.2 mln
Note: 4th qtr not available. Year includes 1985
extraordinary gain from tax carry forward of 132,000 dlrs, or
five cts per shr.
Reuter
|
OHIO MATTRESS <OMT> MAY HAVE LOWER 1ST QTR NET | Ohio Mattress Co said its first
quarter, ending February 28, profits may be below the 2.4 mln
dlrs, or 15 cts a share, earned in the first quarter of fiscal
1986.
The company said any decline would be due to expenses
related to the acquisitions in the middle of the current
quarter of seven licensees of Sealy Inc, as well as 82 pct of
the outstanding capital stock of Sealy.
Because of these acquisitions, it said, first quarter sales
will be substantially higher than last year's 67.1 mln dlrs.
Noting that it typically reports first quarter results in
late march, said the report is likely to be issued in early
April this year.
It said the delay is due to administrative considerations,
including conducting appraisals, in connection with the
acquisitions.
Reuter
|
AM INTERNATIONAL INC <AM> 2ND QTR JAN 31 | Oper shr loss two cts vs profit seven cts
Oper shr profit 442,000 vs profit 2,986,000
Revs 291.8 mln vs 151.1 mln
Avg shrs 51.7 mln vs 43.4 mln
Six mths
Oper shr profit nil vs profit 12 cts
Oper net profit 3,376,000 vs profit 5,086,000
Revs 569.3 mln vs 298.5 mln
Avg shrs 51.6 mln vs 41.1 mln
NOTE: Per shr calculated after payment of preferred
dividends.
Results exclude credits of 2,227,000 or four cts and
4,841,000 or nine cts for 1986 qtr and six mths vs 2,285,000 or
six cts and 4,104,000 or 11 cts for prior periods from
operating loss carryforwards.
Reuter
|
BROWN-FORMAN INC <BFD> 4TH QTR NET | Shr one dlr vs 73 cts
Net 12.6 mln vs 15.8 mln
Revs 337.3 mln vs 315.2 mln
Nine mths
Shr 3.07 dlrs vs 3.08 dlrs
Net 66 mln vs 66.2 mln
Revs 1.59 billion vs 997.1 mln
Reuter
|
NATIONAL INTERGROUP<NII> TO OFFER PERMIAN UNITS | National Intergroup Inc said it plans
to file a registration statement with the securities and
exchange commission for an offering of cumulative convertible
preferred partnership units in Permian Partners L.P.
The Permian Partners L.P. was recently formed by National
Intergroup to continue to business of Permian Corp, acquired by
the company in 1985.
The company said Permian will continue to manage the
business as a general partner, retaining a 35 pct stake in the
partnership in the form of common and general partnership
units.
It did not say how many units would be offered or what the
price would be.
Reuter
|
ECONOMIC SPOTLIGHT - BANKAMERICA <BAC> | BankAmerica Corp is not under
pressure to act quickly on its proposed equity offering and
would do well to delay it because of the stock's recent poor
performance, banking analysts said.
Some analysts said they have recommended BankAmerica delay
its up to one-billion-dlr equity offering, which has yet to be
approved by the Securities and Exchange Commission.
BankAmerica stock fell this week, along with other banking
issues, on the news that Brazil has suspended interest payments
on a large portion of its foreign debt.
The stock traded around 12, down 1/8, this afternoon,
after falling to 11-1/2 earlier this week on the news.
Banking analysts said that with the immediate threat of the
First Interstate Bancorp <I> takeover bid gone, BankAmerica is
under no pressure to sell the securities into a market that
will be nervous on bank stocks in the near term.
BankAmerica filed the offer on January 26. It was seen as
one of the major factors leading the First Interstate
withdrawing its takeover bid on February 9.
A BankAmerica spokesman said SEC approval is taking longer
than expected and market conditions must now be re-evaluated.
"The circumstances at the time will determine what we do,"
said Arthur Miller, BankAmerica's Vice President for Financial
Communications, when asked if BankAmerica would proceed with
the offer immediately after it receives SEC approval.
"I'd put it off as long as they conceivably could," said
Lawrence Cohn, analyst with Merrill Lynch, Pierce, Fenner and
Smith.
Cohn said the longer BankAmerica waits, the longer they
have to show the market an improved financial outlook.
Although BankAmerica has yet to specify the types of
equities it would offer, most analysts believed a convertible
preferred stock would encompass at least part of it.
Such an offering at a depressed stock price would mean a
lower conversion price and more dilution to BankAmerica stock
holders, noted Daniel Williams, analyst with Sutro Group.
Several analysts said that while they believe the Brazilian
debt problem will continue to hang over the banking industry
through the quarter, the initial shock reaction is likely to
ease over the coming weeks.
Nevertheless, BankAmerica, which holds about 2.70 billion
dlrs in Brazilian loans, stands to lose 15-20 mln dlrs if the
interest rate is reduced on the debt, and as much as 200 mln
dlrs if Brazil pays no interest for a year, said Joseph
Arsenio, analyst with Birr, Wilson and Co.
He noted, however, that any potential losses would not show
up in the current quarter.
With other major banks standing to lose even more than
BankAmerica if Brazil fails to service its debt, the analysts
said they expect the debt will be restructured, similar to way
Mexico's debt was, minimizing losses to the creditor banks.
Reuter
|
NATIONAL HEALTH ENHANCEMENT <NHES> NEW PROGRAM | National Health Enhancement
Systems Inc said it is offering a new health evaluation system
to its line of fitness assessment programs.
The company said the program, called The Health Test, will
be available in 60 days.
Customers who use the program will receive a
computer-generated report and recommendations for implementing
a program to improve their physical condition.
Reuter
|
DEAN FOODS <DF> SEES STRONG 4TH QTR EARNINGS | Dean Foods Co expects earnings for the
fourth quarter ending May 30 to exceed those of the same
year-ago period, Chairman Kenneth Douglas told analysts.
In the fiscal 1986 fourth quarter the food processor
reported earnings of 40 cts a share.
Douglas also said the year's sales should exceed 1.4
billion dlrs, up from 1.27 billion dlrs the prior year.
He repeated an earlier projection that third-quarter
earnings "will probably be off slightly" from last year's 40
cts a share, falling in the range of 34 cts to 36 cts a share.
Douglas said it was too early to project whether the
anticipated fourth quarter performance would be "enough for us
to exceed the prior year's overall earnings" of 1.53 dlrs a
share.
In 1988, Douglas said Dean should experience "a 20 pct
improvement in our bottom line from effects of the tax reform
act alone."
President Howard Dean said in fiscal 1988 the company will
derive benefits of various dairy and frozen vegetable
acquisitions from Ryan Milk to the Larsen Co.
Dean also said the company will benefit from its
acquisition in late December of Elgin Blenders Inc, West
Chicago.
He said the company is a major shareholder of E.B.I. Foods
Ltd, a United Kingdom blender, and has licensing arrangements
in Australia, Canada, Brazil and Japan.
"It provides ann entry to McDonalds Corp <MCD> we've been
after for years," Douglas told analysts.
Reuter
|
BONUS WHEAT FLOUR FOR NORTH YEMEN -- USDA | The Commodity Credit Corporation, CCC,
has accepted an export bonus offer to cover the sale of 37,000
long tons of wheat flour to North Yemen, the U.S. Agriculture
Department said.
The wheat four is for shipment March-May and the bonus
awarded was 119.05 dlrs per tonnes and will be paid in the form
of commodities from the CCC inventory.
The bonus was awarded to the Pillsbury Company.
The wheat flour purchases complete the Export Enhancement
Program initiative announced in April, 1986, it said.
Reuter
|
CREDIT CARD DISCLOSURE BILLS INTRODUCED | Legislation to require disclosure of
credit card fees and interest rates before the cards are issued
have been introduced in the Senate and House.
Sen. Chris Dodd, D-Conn, a co-sponsor of the bill, said
many banks and financial institutions do not disclose all the
information about terms of their cards in promotional material
sent to prospective customers.
"By requiring card issuers to disclose the terms and
conditions of their cards at the time of solicitation, the
legislation is intended to arm consumers with enough
information to shop around for the best deal," Dodd said in a
statement.
Reuter
|
HUGHES CAPITAL UNIT SIGNS PACT WITH BEAR STEARNS | Hughes/Conserdyne Corp, a
unit of <Hughes Capital Corp> said it made Bear Stearns and Co
Inc <BSC> its exclusive investment banker to develop and market
financing for the design and installation of its micro-utility
systems for municipalities.
The company said these systems are self-contained
electrical generating facilities using alternate power sources,
such as photovoltaic cells, to replace public utility power
sources.
Reuter
|
MAGMA LOWERS COPPER 0.75 CENT TO 66 CTS | Magma Copper Co, a subsidiary of Newmont
Mining Corp, said it is cutting its copper cathode price by
0.75 cent to 66 cents a lb, effective immediately.
Reuter
|
BROWN-FORMAN <BFDB> SETS STOCK SPLIT, UPS PAYOUT | Brown-Forman Inc said its board
has approved a three-for-two stock split and a 35 pct increase
in the company cash dividend.
The company cited its improved earnings outlook and
continued strong cash flow as reasons for raising the dividend.
Brown-Forman said the split of its Class A and Class B
common shares would be effective March 13.
The company said directors declared a quarterly cash
dividend on each new share of both classes of 28 cts, payable
April one to holders of record March 20. Prior to the split,
the company had paid 31 cts quarterly.
Brown-Forman today reported a 37 pct increase in third
quarter profits to 21.6 mln dlrs, or 1.00 dlr a share, on a
seven pct increase in sales to a record 337 mln dlrs.
Brown-Forman said nine month profits declined a bit to 66.0
mln dlrs, or 3.07 dlrs a share, from 66.2 mln dlrs, or 3.08
dlrs a share, a year earlier due to a second quarter charge of
37 cts a share for restructuring its beverage operations.
The company said lower corporate tax rates and the
restructuring "are expected to substantially improve
Brown-Forman's earnings and cash flow in fiscal 1988."
Reuter
|
ESQUIRE RADIO AND ELECTRONICS INC <EE> 4TH QTR | Shr profit 15 cts vs profit four cts
Annual div 72 cts vs 72 cts prior yr
Net profit 72,000 vs profit 16,000
Revs 7,075,000 vs 2,330,000
12 mths
Shr profit 42 cts vs loss 11 cts
Net profit 203,000 vs loss 55,000
Revs 16.1 mln vs 3,971,000
NOTE: annual dividend payable April 10, 1987, to
stockholders of record on March 27, 1987.
Reuter
|
SHEARSON LEHMAN NAMES NEW MANAGING DIRECTOR | Shearson Lehman Brothers, a unit of
American Express Co <AXP>, said Robert Stearns has joined the
company as managing director of its merger and acquisition
department.
Shearson said Stearns formerly was part of Merrill Lynch
Pierce, Fenner and Smith Inc's <MER> merger and acquisitions
department.
Reuter
|
BANKERS REPORT BREAKTHROUGH ON VENEZUELAN DEBT | Venezuela and its bank advisory
committee have agreed in principle on revisions to the terms of
a 21 billion dlr debt-rescheduling package signed last
February, bankers said.
They declined to disclose details because two or three
representatives on the panel have still to obtain the approval
of their senior management for the new terms.
The committee was meeting in New York this afternoon and
could put its final stamp of approval of the deal later today,
the bankers said.
"A number of details have still to be finalized, but the
broad details of the new amortization schedules and interest
rates are in place," one senior banker said.
The interest rate on the rescheduling was originally set at
1-1/8 pct over Eurodollar rates, but Venezuela requested easier
terms because of a 40 pct drop in oil income last year.
It also asked for a reduction in the repayments it was due
to make in 1987, 1988 and 1989 - after an earlier request that
it make no amortizations at all in those years was rebuffed -
and sought a commitment from the banks to finance new
investment in Venezuela.
The breakthrough in the Venezuelan talks, which have been
going on intermittently for several months, follows the
announcement earlier today of a 10.6 billion dlr debt
rescheduling pact between Chile and its bank advisory panel.
And last night Citibank said Mexico's financing package,
including a 7.7 billion dlr loan, will be signed on March 20.
While the sudden progress is to some extent coincidental,
bankers acknowledge a desire to chalk up some quick successes
after the shock of Brazil's unilateral interest suspension last
Friday. By striking swift deals, banks hope to reduce the
incentive for other debtors to emulate Brazil.
Reuter
|
UNITED PRESIDENTIAL CORP <UPCO> 4TH QTR NET | Shr 39 cts vs 50 cts
Net 1,545,160 vs 2,188,933
Revs 25.2 mln vs 19.5 mln
Year
Shr 1.53 dlrs vs 1.21 dlrs
Net 6,635,318 vs 5,050,044
Revs 92.2 mln vs 77.4 mln
NOTE: Results include adjustment of 848,600 dlrs or 20 cts
shr for 1986 year and both 1985 periods from improvement in
results of its universal life business than first estimated.
Reuter
|
TOWER REPORT DIMINISHES REAGAN'S HOPES OF REBOUND | The Tower Commission report, which
says President Reagan was ignorant about much of the Iran arms
deal, just about ends his prospects of regaining political
dominance in Washington, political analysts said.
"This is certification of incompetence," private political
analyst Stephen Hess told Reuters in commenting on the Tower
report made public today.
"It's as if he went before a professional licensing board
and was denied credentials."
In one of the most direct criticisms, board chairman John
Tower, a longtime Reagan supporter and former Republican
senator from Texas, told a press conference, "The president
clearly did not understand the nature of this operation."
The report, which lent credence to widespread opinion in
Washington that Reagan is not in full command of the
government, was particularly damaging because it was prepared
by a board of the Republican president's own choosing.
The three-member panel made up of Tower, former National
Security Adviser Brent Scowcroft and former Secretary of State
Edmund Muskie, does not carry the partisan taint of criticism
from a Congress controlled by the Democratic party.
"We're falling by our own hand," said one Republican
political strategist. "What can we say except 'we're sorry, we
won't do it again'?"
The strategist, who works for one of his party's top 1988
presidential contenders and asked not to be identified, said
the report was like "an anvil falling on us."
Hess, with the Brookings Institution public policy study
group, said the report is the final blow to Reagan's hopes of
regaining the upper hand he once had in dealings with Congress,
the press and the Washington bureaucracy.
The report may also undermine the standing of Defense
Secretary Caspar Weinberger and Secretary of State George
Shultz, who the report suggests were more interested in keeping
their own skirts clean than supporting the president.
"They protected the record as to their own positions on this
issue. They were not energetic in attempting to protect the
president from the consequences," it said.
White House chief of staff Donald Regan and former Central
Intelligence Agency Director William Casey also received strong
criticism, but the blows were expected in their cases.
Regan, expected to resign or be fired shortly, was savaged
for allegedly failing both to help Reagan conduct the Iran
initiative and to avoid "chaos" in the disclosure process.
Casey, who underwent surgery for removal of a cancerous
brain tumor in December, had already resigned for health
reasons last month.
"This is a story about people who came up somewhat short of
being heroes," Tower told reporters.
While Reagan retains considerable constitutional powers,
including command of the armed forces and the right to veto
legislation, analysts say it will be difficult for him to
retake control of the country's policy agenda -- particularly
with Congress controlled by the Democrats.
The crucial remaining question, they said, is whether the
man in the street will forsake Reagan over the affair.
Although his job approval rating has fallen as much as
twenty percentage points in some opinion polls since the arms
deal with Iran became public last November, his personal
popularity is still relatively high.
A Los Angeles Times poll released earlier this week showed
that just 37 pct of those surveyed thought Reagan was in
control of the government, but 55 pct still thought he was
doing a good job as president.
American Enterprise Institute analyst William Schneider, a
Democrat, says Reagan's loss of support among Washington power
brokers could be offset by continued backing of the public.
"In the past, he has been able to go around the power elite
by appealing directly to the public," Schneider said.
Reagan will again plead his case that way in a televised
address next week.
But one top Republican strategist warned against expecting
a dramatic turnaround.
"The White House has to avoid building expectations that
cannot be met," said the strategist, who requested anonymity.
"They have to recognize there is no quick fix."
Analysts also point out that Reagan's personal popularity
has not always translated into public backing for his policies.
They note he was dramatically rebuffed in last November's
elections when voters rejected his appeals and restored control
of the Senate to the Democrats.
Reuter
|
JANUARY HOUSING SALES DROP, REALTY GROUP SAYS | Sales of previously owned homes
dropped 14.5 pct in January to a seasonally adjusted annual
rate of 3.47 mln units, the National Association of Realtors
(NAR) said.
But the December rate of 4.06 mln units had been the
highest since the record 4.15 mln unit sales rate set in
November 1978, the group said.
"The drop in January is not surprising considering that a
significant portion of December's near-record pace was made up
of sellers seeking to get favorable capital gains treatment
under the old tax laws," said the NAR's John Tuccillo.
Reuter
|
ASSETS OF MONEY MARKET MUTUAL FUNDS ROSE 720.4 MLN DLRS IN LATEST WEEK
| |
U.S. TAX WRITERS SEEK ESTATE TAX CURBS, RAISING 6.7 BILLION DLRS THRU 1991
| |
SENATORS INTRODUCE EXPORT LICENSING REFORM BILL | Sens. Alan Cranston (D-Cal.) and
Daniel Evans (R-Wash.) said they introduced export licensing
reform legislation that could save U.S. companies hundreds of
thousands of dollars annually.
"Our emphasis is two-fold: Decontrol and de-license items
where such actions will not endanger our national security, and
eliminate the Department of Defense's de facto veto authority
over the licensing process," Cranston said.
"Our reforms should reduce licensing requirements by 65 to
70 pct," he told reporters. "I am convinced that a more
rational...licensing process will boost exports."
U.S. export controls are intended to deny Eastern bloc
countries access to technology that could further their
military capabilities.
"By refocusing our control resources on higher levels of
technology, technology that is truly critical, we will do a
better job of preventing diversion of critical technology to
our adversaries while promoting more exports," Cranston said.
"We cannot expect to continue to play a leading role in new
technology development in the future if we unduly restrict the
activities of U.S. firms in the world market-place," Evans told
reporters.
Reuter
|
EXCELAN INC SETS INITIAL STOCK OFFER | Excelan Inc said it is making an
initial public offering of 2,129,300 shares of common stock at
12 dlrs per share.
Excelan said 1.6 mln of the shares are being sold by the
company and 529,300 shares are being sold by stockholders.
Excelan designs and manufactures computer-related products.
Reuter
|
CCX NETWORK <CCXN> SECONDARY OFFERING UNDERWAY | CCX Network Inc said it was offering
220,838 shares of stock at 15.75 dlrs a share though
underwriters Stephens Inc and Cazenove Inc.
The company said it was selling the stock on behalf of some
shareholders, including those who recently received shares
in the company in exchange for their businesses.
The company said it was receiving no proceeds from the
offering.
Reuter
|
FIRST UNION <FUNC> FILES 100 MLN DLR NOTES ISSUE | First Union Corp said it has filed with
the Securities and Exchange Commission for a proposed offering
of 100 mln dlrs of fixed rate subordinated notes due 1997.
The notes will be sold nationwide through underwriters
managed by Shearson Lehman Brothers Inc.
Reuter
|
OWENS AND MINOR INC <OBOD> RAISES QTLY DIVIDEND | Qtly div eights cts vs 7.5 cts prior
Pay March 31
Record March 13
Reuter
|
COMPUTER LANGUAGE RESEARCH IN <CLRI> 4TH QTR | Shr loss 22 cts vs loss 18 cts
Net loss 3,035,000 vs loss 2,516,000
Revs 20.9 mln vs 19.6 mln
Qtly div three cts vs three cts prior
Year
Shr profit two cts vs profit 34 cts
Net profit 215,000 vs profit 4,647,000
Revs 93.4 mln vs 98.7 mln
NOTE: Dividend payable April one to shareholders of record
March 17.
Reuter
|
<CINRAM LTD> 4TH QTR NET | Shr 45 cts vs 58 cts
Net 1.1 mln vs 829,000
Sales 7.9 mln vs 9.4 mln
Avg shrs 2,332,397 vs 1,428,000
Year
Shr 1.22 dlrs vs 1.06 dlrs
Net 2.9 mln vs 1.5 mln
Sales 25.7 mln vs 22.2 mln
Avg shrs 2,332,397 vs 1,428,000
Reuter
|
DU PONT CO <DD> LAUNCHES IMPROVED ARAMID FIBERS | The Du Pont Co said it has
devloped a new generation of high-strength aramid fibers which
is stiffer and less absorbant than previous generations.
Du Pont said the new product, Kevlar 149, is up to 40 pct
stiffer than first generation aramids, and absorbs less than
half the moister of other similar aramid fibers.
Kevlar was invented by Du Pont in the late 1960s and is
five times stronger than steel and 10 times stronger than
aluminum on an equal wieght basis, and is used to replace
metals in a variety of products, according to the company.
Reuter
|
STANDARD TRUSTCO SEES BETTER YEAR | Standard Trustco said it expects earnings
in 1987 to increase at least 15 to 20 pct from the 9,140,000
dlrs, or 2.52 dlrs per share, recorded in 1986.
"Stable interest rates and a growing economy are expected to
provide favorable conditions for further growth in 1987,"
president Brian O'Malley told shareholders at the annual
meeting.
Standard Trustco previously reported assets of 1.28 billion
dlrs in 1986, up from 1.10 billion dlrs in 1985. Return on
common shareholders' equity was 18.6 pct last year, up from 15
pct in 1985.
Reuter
|
HANDY AND HARMAN <HNH> 4TH QTR LOSS | Shr loss 51 cts vs loss three cts
Net loss 7,041,000 vs loss 467,000
Rev 138.9 mln vs 131.4 mln
12 months
Shr loss 64 cts vs profit 46 cts
Net loss 8,843,000 vs profit 6,306,0000
Rev 558.9 mln vs 556.7 mln
NOTE: Net loss for 4th qtr 1986 includes charge for
restructuring of 2.6 mln dlrs after tax, or 19 cts a share.
1986 net loss includes after tax special charge of 2.7 mln
dlrs, or 20 cts a share.
Reuter
|
ICO PRODUCERS TO PRESENT NEW COFFEE PROPOSAL | International Coffee Organization, ICO,
producing countries will present a proposal for reintroducing
export quotas for 12 months from April 1 with a firm
undertaking to try to negotiate up to September 30 any future
quota distribution on a new basis, ICO delegates said.
Distribution from April 1 would be on an unchanged basis as
in an earlier producer proposal, which includes shortfall
redistributions totalling 1.22 mln bags, they said.
Resumption of an ICO contact group meeting with consumers,
scheduled for this evening, has been postponed until tomorrow,
delegates said.
Reuter
|
SHULTZ SAYS NO RESIGNATION OVER IRAN REPORT | Secretary of State George
Shultz acknowledged failings in the Iran arms affair but
declared he would not resign.
His role in the scandal that has scarred the Reagan
administration attracted harsh criticism from the Tower
commission in its report on the affair published today.
Shultz, travelling to China for a week-long visit, refused
to comment directly on the report, published after he had left
Washington. But he repeated -- as he has done since the crisis
broke last November -- that he was not going to resign.
"You can wipe that off your slate," he said.
Reuter
|
MCLEAN'S <MII> U.S. LINES SETS ASSET TRANSFER | McLean Industries Inc's United
States Lines Inc subsidiary said it has agreed in principle to
transfer its South American service by arranging for the
transfer of certain charters and assets to <Crowley Mariotime
Corp>'s American Transport Lines Inc subsidiary.
U.S. Lines said negotiations on the contract are expected
to be completed within the next week. Terms and conditions of
the contract would be subject to approval of various regulatory
bodies, including the U.S. Bankruptcy Court.
Reuter
|
CHEMLAWN <CHEM> RISES ON HOPES FOR HIGHER BIDS | ChemLawn Corp <CHEM> could attract a
higher bid than the 27 dlrs per share offered by Waste
Management Inc <WNX>, Wall Street arbitrageurs said.
Shares of ChemLawn shot up 11-5/8 to 29-3/8 in
over-the-counter- trading with 3.8 mln of the company's 10.1
mln shares changing hands by late afternoon.
"This company could go for 10 times cash flow or 30 dlrs,
maybe 32 dollars depending on whether there is a competing
bidder," an arbitrageur said. Waste Management's tender offer,
announced before the opening today, expires March 25.
"This is totally by surprise," said Debra Strohmaier, a
ChemLawn spokeswoman. The company's board held a regularly
scheduled meeting today and was discussing the Waste Management
announcement. She said a statement was expected but it was not
certain when it would be ready.
She was unable to say if there had been any prior contact
between Waste Management and ChemLawn officials.
"I think they will resist it," said Elliott Schlang,
analyst at Prescott, Ball and Turben Inc. "Any company that
doesn't like a surprise attack would."
Arbitrageurs pointed out it is difficult to resist tender
offers for any and all shares for cash. Schlang said ChemLawn
could try to find a white knight if does not want to be
acquired by Waste Management.
Analyst Rosemarie Morbelli of Ingalls and Snyder said
ServiceMaster Companies L.P. <SVM> or Rollins Inc <ROL> were
examples of companies that could be interested.
ChemLawn, with about two mln customers, is the largest U.S.
company involved in application of fertilizers, pesticides and
herbicides on lawns. Waste Management is involved in removal of
wastes.
Schlang said ChemLawn's customer base could be valuable to
another company that wants to capitalize on a strong
residential and commercial distribution system.
Both Schlang and Morbelli noted that high growth rates had
catapulted ChemLawn's share price into the mid-30's in 1983 but
the stock languished as the rate of growth slowed.
Schlang said the company's profits are concentrated in the
fourth quarter. In 1986 ChemLawn earned 1.19 dlrs per share for
the full year, and 2.58 dlrs in the fourth quarter.
Morbelli noted ChemLawn competes with thousands of
individual entrepreuers who offer lawn and garden care sevice.
Reuter
|
U.S. SUGAR IMPORTS DOWN IN WEEK - USDA | Sugar imports subject to the U.S.
sugar import quota during the week ended January 9, the initial
week of the 1987 sugar quota year, totaled 5,988 short tons
versus 46,254 tons the previous week, the Agriculture
Department said.
The sugar import quota for the 1987 quota year
(January-December) has been set at 1,001,430 short tons
compared with 1,850,000 tons in the 1986 quota year, which was
extended three months to December 31.
The department said the Customs Service has reported that
weekly and cumulative imports are reported on an actual weight
basis and when final polarizations are received, cumulative
import data are adjusted accordingly.
Reuter
|
BRAZIL ANTI-INFLATION PLAN LIMPS TO ANNIVERSARY | inflation
plan, initially hailed at home and abroad as the saviour of the
economy, is limping towards its first anniversary amid soaring
prices, widespread shortages and a foreign payments crisis.
Announced last February 28 the plan froze prices, fixed the
value of the new Cruzado currency and ended widespread
indexation of the economy in a bid to halt the country's 250
pct inflation rate.
But within a year the plan has all but collapsed.
"The situation now is worse than it was. Although there was
inflation, at least the economy worked," a leading bank
economist said.
The crumbling of the plan has been accompanied by a
dramatic reversal in the foreign trade account. In 1984 and
1985 Brazil's annual trade surpluses had been sufficient to
cover the 12 billion dlrs needed to service its 109 billion dlr
foreign debt.
For the first nine months of 1986 all seemed to be on
target for a repeat, with monthly surpluses averaging one
billion dlrs. But as exports were diverted and imports
increased to avoid further domestic shortages the trade surplus
plunged to 211 mln dlrs in October and since then has averaged
under 150 mln.
Reuter
|
N.Z. OFFICIAL FOREIGN RESERVES FALL IN JANUARY | New Zealand's official foreign
reserves fell to 7.15 billion N.Z. Dlrs in January from 7.20
billion dlrs in December and compared with 3.03 billion a year
ago period, the Reserve Bank said in its weekly statistical
bulletin.
Reuter
|
AGENCY REPORTS 39 SHIPS WAITING AT PANAMA CANAL | The Panama Canal Commission, a U.S.
government agency, said in its daily operations report that
there was a backlog of 39 ships waiting to enter the canal
early today. Over the next two days it expects --
2/26 2/27
Due: 27 35
Scheduled to Transit: 35 41
End-Day Backlog: 31 25
Average waiting time tomorrow --
Super Tankers Regular Vessels
North End: 13 hrs 15 hrs
South End: 4 hrs 26 hrs
Reuter
|
AMERICA FIRST MORTGAGE SETS SPECIAL PAYOUT | <America First Federally Guaranteed
Mortgage Fund Two> said it is making a special distribution of
71.6 cts per exchangeable unit, which includes 67.62 cts from
return on capital and 3.98 cts from income gains.
Reuter
|
REPUBLICANS EYE BIGGER U.S. CONSERVATION RESERVE | A group of Republican governors and
members of Congress said they intended to explore expanding the
conservation reserve program by up to 20 mln acres.
Under current law, between 40 and 45 mln acres of erodible
land must be enrolled in the program by the end of fiscal 1990.
The Republican Task Force on Farm and Rural America, headed
by Senate Majority Leader Robert Dole (Kan.), said they would
consider drafting legislation to increase the reserve by
between 15 and 20 mln acres.
Sen. Charles Grassley (R-Iowa) told Reuters he would offer
a bill to expand the reserve to 67 mln acres.
Reuter
|
ARVIN INDS <ARV> PROMOTES EVANS TO PRESIDENT | Arvin Industries Inc said L.K.
Evans has been elected president, succeeding James Baker who
remains chairman. Evans had been executive vice president.
Reuter
|
EMHART CORP <EMH> QTLY DIVIDEND | Qtly div 35 cts vs 35 cts prior
Payable March 31
Record March nine
Reuter
|
U.S. DATA POINT TO CAPITAL SPENDING SLOWDOWN | A surprise 7.5 pct drop in U.S. January
durable goods orders points to a slowdown in capital spending
that could presage lackluster real growth in the U.S. economy
in the first quarter of 1987, economists said.
With total orders, excluding the volatile defense sector,
falling a record 9.9 pct, economists agreed that the report
painted a bleak picture for the U.S. economy.
But they stressed that the 1987 tax reform laws may be a
primary factor behind the drop in orders for business capital
investment.
"It's a rather gloomy outlook for the economy, said David
Wyss of Data Resources Inc. "I'm particularly impressed by the
19.7 pct drop in non-defense capital goods orders because it
may be a sign that businesses are reacting more adversely to
tax reform than we thought."
The Commerce Department pointed out that a record 14.8 pct
decline in new orders for machinery was led by declines in
office and computing equipment orders.
Economists said the drop in computer orders may have been a
response to the lengthening of depreciation schedules and the
end of the investment tax credit under the new tax laws.
"It's more expensive to invest than it used to be, so
people just aren't doing it as much," Wyss said.
Increases in durable goods orders at year's end reinforced
the view that businesses anticipated the changing tax laws,
economists said.
November durable goods orders rose 5.1 pct and December's
increased 1.5 pct, revised upwards from a previously reported
0.9 pct.
But most acknowledged that the huge January drop was caused
by more than tax reform.
"The wash-out that took place in January was far greater
than the actual gains that took place in November and
December," said Bill Sullivan of Dean Witter Reynolds Inc. "The
economy has a weakening bent to it early in the year."
"The report definitely points to very sluggish capital
spending over the next couple of quarters," said Donald Maude
of Midland Montagu Capital Markets Inc.
Maude pointed to a continuing decline in order backlogs as
evidence that the outlook for new orders is not improving. In
November, order backlogs rose 0.6 pct, but in December they
fell 0.6 pct and in January 0.7 pct, he said.
"It suggests orders in the pipeline are depleting, which
may quickly translate to a drop in production," Midland
Montagu's Maude said.
Wyss cautioned that too much should not be made of
January's report, given that other reports have reflected
strength.
But he acknowledged that the decline occurred despite a 51
pct rise in defense orders, compared with a 57.7 pct decline in
December.
He also noted that there was a 6.9 pct drop in January
shipments, compared with a 5.4 pct rise in December.
"Given these numbers, there's no reason for the Fed to
tighten," Data Resources' Wyss said.
"But there's no reason to ease unless we see more numbers
like this. The Fed will wait and see," he added.
Sullivan predicted the Fed will ease by Easter. "People
aren't talking recession or Fed easing now, but the Fed will
have to ease to ensure global growth."
Reuter
|
SENATORS INTRODUCE EXPORT LICENSING REFORM BILL | Sens. Alan Cranston (D-Cal.) and
Daniel Evans (R-Wash.) said they introduced export licensing
reform legislation that could save U.S. companies hundreds of
thousands of dollars annually.
"Our emphasis is two-fold: Decontrol and de-license items
where such actions will not endanger our national security, and
eliminate the Department of Defense's de facto veto authority
over the licensing process," Cranston said.
"Our reforms should reduce licensing requirements by 65 to
70 pct," he told reporters. "I am convinced that a more
rational...licensing process will boost exports."
U.S. export controls are intended to deny Eastern bloc
countries access to technology that could further their
military capabilities.
"By refocusing our control resources on higher levels of
technology, technology that is truly critical, we will do a
better job of preventing diversion of critical technology to
our adversaries while promoting more exports," Cranston said.
"We cannot expect to continue to play a leading role in new
technology development in the future if we unduly restrict the
activities of U.S. firms in the world market-place," Evans told
reporters.
Reuter
|
AM INTERNATIONAL <AM> CITES STRONG PROSPECTS | AM International Inc, reporting an
operating loss for the January 31 second quarter, said
prospects for the balance of the fiscal year remain good.
It said orders at its Harris Graphics subsidiary, acquired
in June 1986, "continue to run at a strong pace." For the six
months, orders rose 35 pct over the corresponding prior-year
period, or on an annualized basis are running at about 630 mln
dlrs.
The backlog at Harris is up 30 pct from the beginning of
the fiscal year, AM said.
AM International said its old division are expected to
benefit from recent new product introductions and the decline
in the value of the dollar.
"Research, development and engineering expenditures in
fiscal 1987 will be in the 45-50 mln dlr range, and the company
said it has allocated another 30-40 mln dlrs for capital
expenditures.
Earlier AM reported a fourth quarter operating loss of two
cts a share compared to profits of seven cts a share a year
ago. Revenues rose to 291.8 mln dlrs from 151.1 mln dlrs.
Reuter
|
CCC CREDITS FOR HONDURAS SWITCHED TO WHITE CORN | The Commodity Credit Corporation (CCC)
announced 1.5 mln dlrs in credit guarantees previously
earmarked to cover sales of dry edible beans to Honduras have
been switched to cover sales of white corn, the U.S.
Agriculture Department said.
The department said the action reduces coverage for sales
of dry edible beans to 500,000 dlrs and creates the new line of
1.5 mln dlrs for sales of white corn.
All sales under the credit guarantee line must be
registered and shipped by September 30, 1987, it said.
Reuter
|
ASSETS OF U.S. MONEY FUNDS ROSE IN WEEK | Assets of money market mutual funds
increased 720.4 mln dlrs in the week ended yesterday to 236.90
billion dlrs, the Investment Company Institute said.
Assets of 91 institutional funds rose 356 mln dlrs to 66.19
billion dlrs, 198 general purpose funds rose 212.5 mln dlrs to
62.94 billion dlrs and 92 broker-dealer funds rose 151.9 mln
dlrs to 107.77 billion dlrs.
Reuter
|
GULF BARGE FREIGHT RATES UP FURTHER ON CALL | Gulf barge freight rates firmed again on
the outlook for steady vessel loadings at the Gulf, increasing
the demand for barges to supply those ships, dealers said.
No barges traded today on the St Louis Merchants' Exchange
call session, versus 29 yesterday.
Quotes included -
- Delivery this week on the Illinois River (Joliet) 135 pct of
tariff bid/140 offered, with next week same river (ex Chicago)
quoted the same - both up 2-1/2 percentage points.
- Next week Mississippi River (St Louis) 120 pct bid/127-1/2
offered - up five points.
- Next week Ohio River (Owensboro/south) 125 pct bid/132-1/2
offered - up 7-1/2 points.
- On station Illinois River (south Chicago) 135 pct bid/140
offered - no comparison.
- March Illinois (ex Chicago) 132-1/2 pct bid/140 offered - up
2-1/2 points.
- March Ohio River bid at yesterday's traded level of 125 pct,
offered at 132-1/2.
- March lower Mississippi River (Memphis/Cairo) 112-1/2 pct
bid/120 offered - no comparison.
- May Illinois River (ex Chicago) 100 pct bid/107-1/2 offered
- no comparison.
- Sept/Nov Lower Mississippi River (Memphis/Cairo) 137-1/2 pct
bid/145 offered, with Sept/Dec same section 125 pct bid/135
offered - no comparison.
Reuter
|
ARGENTINA COULD SUSPEND DEBT PAYMENTS - DEPUTY | Argentina could suspend payments on
its foreign debt if creditor banks reject a 2.15 billion dlr
loan request to meet 1987 growth targets, ruling Radical Party
Deputy Raul Baglini told a local radio station.
"Argentina does not discard the use of (a moratorium) if the
negotiations do not produce a result that guarantees the growth
of the country," he added.
Baglini, an observer at Argentina's negotiations in New
York with the steering committee for its 320 creditors banks,
told the Radio del Plata in a telephone interview that the
banks were divided on the loan request.
Baglini said that as a result, today's scheduled second day
of talks had been postponed.
He said Argentina was prepared to follow the example of
Brazil, which last week declared a moratorium on interest
payments of a large portion of its 108 billion dlr foreign
debt.
Argentina's prime objective in renegotiating the debt was
to maintain growth, which has been targeted at four pct in
1987, Baglini said.
"Debtor nations should not have to take from their own
pockets, that is their commercial balance, to meet interest
payments," he added.
Reuter
|
KEY U.S. TAX WRITERS SEEK ESTATE TAX CURBS | The chairmen and senior Republican
members of the House and Senate tax writing committees proposed
legislation to curb estate tax deduction on sales of stock to
an employee stock ownership plan.
The proposal would raise federal revenues of 6.7 billion
dlrs over the fiscal year period 1987 to 1991.
If adopted by Congress it would effect all transactions
after Sept 26, 1987.
The plan was proposed by House Ways and Means Committee
Chairman Dan Rostenkowski (D-Ill), Rep John Duncan (R-Tenn),
Senate Finance Committee Chairman Lloyd Bentsen (D-Tex) and Sen
Bob Packwood (R-Ore).
In a statement Rostenkowski said the estate tax deduction
enacted last year as part of the tax reform bill was too broad
and would have cost the governmet seven billion dlrs over four
years. The narrower deduction would cost the government less
than 300 mln dlrs for the same years.
He said it was designed to avoid sham transactions which
allowed estates to avoid taxes by transferring stock to ESOPs.
Senate Finance Committee chairman Lloyd Bentsen said in a
statement, "The Tax Reform Act contains a provision that allows
many wealthy individuals to avoid the federal estate tax
entirely when they die."
He added, "The provision was intended to encourage estates
to sell stock to employee stock ownership plans as a way of
promoting worker ownership; however, the provision was not
meant to be broad enough to reduce federal revenues as much as
is currently estimated."
He added, "The bill I have introduced today calls for the
modification of the provision in accordance with its intended
purpose."
Reuter
|
TREASURY BALANCES AT FED ROSE ON FEB 25 | Treasury balances at the Federal
Reserve rose on Feb 25 to 4.151 billion dlrs from 2.727 billion
dlrs the previous business day, the Treasury said in its latest
budget statement.
Balances in tax and loan note accounts fell to 25.137
billion dlrs from 25.780 billion dlrs on the same respective
days.
The Treasury's operating cash balance totaled 29.289
billion dlrs on Feb 25 compared with 28.507 billion dlrs on Feb
24.
Reuter
|
CANADA'S WILSON SEEKS TEMPORARY BORROWING | Canadian Finance Minister Michael Wilson
said he will use temporary authority under the Financial
Administration act to borrow an additional 600 mln dlrs in next
Thursday's treasury bill auction.
In a statement, Wilson said the action would permit the
government to proceed with its debt program during a period
when there was not sufficient borrowing authority, which is
granted by Parliament, to cover the government's needs.
Ottawa announced previously it was seeking Parliamentary
approval for the additional authority to cover the financing of
an increase in the government's foreign reserves.
Reuter
|
GULF APPLIED <GATS> SELLS UNITS, SEES GAIN | Gulf Applied Technologies Inc said it
sold its pipeline and terminal operations units for 12.2 mln
dlrs and will record a gain of 2.9 mln dlrs in the first
quarter.
It added that any federal taxes owed on the transaction
will be offset by operating loss carryovers.
Reuter
|
FARMERS GROUP INC <FGRP> 4TH QTR NET | Shr 80 cts vs 72 cts
Net 55,513,000 vs 48,741,000
Revs 290.9 mln vs 264.2 mln
Year
Shr 3.09 dlrs vs 2.72 dlrs
Net 213,470,000 vs 184,649,000
Revs 1.12 billion vs 992.9 mln
Avg shrs 69,127,000 vs 68,004,000
Reuter
|
POTOMAC ELECTRIC POWER CO <POM> JAN NET | Shr 27 cts vs 29 cts
Net 13,555,000 vs 14,635,000
Revs 104,606,000 vs 110,311,000
Avg shrs 47.2 mln vs 47.1 mln
12 mths
Shr 4.10 dlrs vs 3.66 dlrs
Net 226,653,000 vs 186,790,000
Revs 1.4 billion vs 1.3 billion
Avg shr 47.1 mln vs 47.1 mln
NOTE: latest 12 mths net includes gain 46 cts per share for
sale of Virginia service territory to Dominion Resources Inc
<D>.
Reuter
|
SPRINGBOARD <SPBD> IN DEAL | Springboard Software INc said it
signed a contract under which International Technology
Development Corp will provide software designers, programmers,
project supervisors and technical support personnel to
Springboard.
International Technology, based in San Francisco and
Shanghai, China, employs Chinese computer specialists.
Reuter
|
<COFAB INC> BUYS GULFEX FOR UNDISCLOSED AMOUNT | CoFAB Inc said it acquired <Gulfex Inc>,
a Houston-based fabricator of custom high-pressure process
vessels for the energy and petrochemical industries.
CoFAB said its group of companies manufacture specialized
cooling and lubricating systems for the oil and gas,
petrochemical, utility, pulp and paper and marine industries.
Reuter
|
U.S. WEEKLY SOYBEAN CRUSH 21,782,929 BUSHELS | Reporting members of the National
Soybean Processors Association (NSPA) crushed 21,782,929
bushels of soybeans in the week ended Feb 25 compared with
22,345,718 bushels in the previous week and 16,568,000 in the
year-ago week, the association said.
It said total crushing capacity for members was 25,873,904
bushels vs 25,873,904 last week and 25,459,238 bushels last
year.
NSPA also said U.S. soybean meal exports in the week were
117,866 tonnes vs 121,168 tonnes a week ago and compared with
84,250 tonnes in the year-ago week.
NSPA said the figures include only NSPA member firms.
Reuter
|
SCHULT HOMES OFFERING PRICED AT FIVE DLRS/UNIT | The underwriters said the initial
offering of 833,334 Schult Homes Corp units is being made at
five dlrs per unit.
The underwriters, managed by Janney Montgomey Scott Inc and
Woolcott and Co Inc, said each unit consits of one common share
and one warrant to purchase one-half a common share at 5.50
dlrs per share until September one 1989 and thereafter at 6.50
dlrs per share until March 1991. The underwriters were granted
an over-allotment option of 125,000 units.
They said the company will use its proceeds to pay a
portion of its subordinated note payable to Inland Steel Urban
Development Corp issued in connection with the acquisition of
Schult from Inland. Based in Elkhart, Ind., Schult is the
country's oldest manufactured home producer.
Reuter
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TULTEX CORP <TTX> SETS QUARTERLY DIVIDEND | Qtly div eights cts vs eight cts prior
Pay April one
Record March 13
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BURLINGTON <BUR> GETS 30.5 MLN DLR CONTRACT | Burlington Menswear of New York City,
a division of Burlington Industries Inc, has received a 30.5
mln dlr defense contract for 3.69 mln yards of tropical cloth,
the Defense Logistics Agency said.
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ROCKWELL <ROK> GETS 28.3 MLN DLR B-1 CONTRACT | Rockwell International Corp has
received a 28.3 mln dlr contract for work on the B-1B bomber in
the current fiscal year, the Air Force said.
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ATICO FINANCIAL CORP <ATFC> 4TH QTR NET | Shr 30 cts vs 5.92 dlrs
Net 1,142,000 vs 16.0 mln
Revs 10.6 mln vs 24.2 mln
Year
Shr 90 cts vs 6.20 dlrs
Net 3,320,000 vs 16.9 mln
Revs 45.00 mln vs 26.2 mln
NOTE: 1986 4th qtr and yr amounts include acquisition of
98.8 pct of common of Atico, formerly Peninsula Federal Savings
and Loan Association, on January 24, 1986.
1985 4th qtr and yr net include net gain of 15.9 mln dlrs
or 5.86 dlrs per share on exchange of common of Pan America
Banks Inc for common of NCNB Corp purusant to a merger of the
companies.
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ICO EXPORTERS TO MODIFY NEW PROPOSAL | International Coffee Organization (ICO)
exporters will modify their new proposal on quota resumption
before presenting it to importers tomorrow, ICO delegates said.
The change, which will be discussed tonight informally
among producers, follows talks after the formal producer
session with the eight-member producer splinter group and will
affect the proposed quota distribution for 12 months from April
one, they said.
The proposed share-out would still include shortfall
declarations, they said.
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U.S. COMMERCIAL PAPER FALLS 375 MLN DLRS IN FEB 18 WEEK, FED SAYS
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N.Y. BUSINESS LOANS FALL 195 MLN DLRS IN FEB 18 WEEK, FED SAYS
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NEW YORK BANK DISCOUNT WINDOW BORROWINGS 64 MLN DLRS IN FEB 25 WEEK
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QUEBECOR <PQB> HEAD SEES NEW VENTURES LIKELY | Quebecor Inc, one of Canada's largest
publishing and printing companies, is likely to launch a new
daily newspaper in Montreal, probably this fall, president
Pierre Peladeau told Reuters in an interview.
The company, which last week won a bid to buy the Quebec
government's 55 pct interest in pulp and paper company <Donohue
Inc>, will also likely go ahead with plans to build a new paper
mill in Matane, Quebec, Peladeau said.
"I would say we will move (ahead with the daily).... This
is not definite but i think we will," he said, adding that he
plans to announce a decision early next week.
Quebecor, which had revenues of 446 mln Canadian dlrs last
year and profit of 16.2 mln dlrs, already publishes three daily
newspapers, including the tabloid Le Journal de Montreal, the
second-largest circulation paper in Canada.
A new daily would give Montreal its second English-
language paper and its sixth daily newspaper, making the city
the most crowded metropolitan newspaper market in North
America, analysts have said.
Peladeau said market studies have indicated a new English
language tabloid would have circulation of 50,000 within six
months. He said he is waiting to determine whether the new
venture would have the support of major advertisers.
Peladeau, who together with family members owns about 55
pct of Quebecor, said he has recieved offers from the heads of
two major Canadian companies who are interested in the project
but has not decided whether he would take partners in the
newspaper venture.
He said he would consider launching the newspaper with one
of the companies as a prelude to other joint ventures.
"It would be the possibility of doing something else in the
short term," Peladeau said.
Peladeau said the joint acquisition of Donohue with Robert
Maxwell's British Printing and Communications Corp plc <BPCL.L>
does not mean Quebecor will have to hold off on other projects.
Peladeau and Maxwell's companies teamed up to buy the stake
in Donohue, which resulted in Quebecor buying 51 pct of the
govvernment's stake for about 165 mln Canadian dlrs and British
printing acquiring the other 49 pct.
"In 1976 or 77 there was a tremendous shortage of
newsprint. There were days when we didn't have enough paper to
print the paper," Peladeau said. "When I lived that, I said to
myself...next time we'll be ready."
Peladeau said most of Donohue's current total newsprint
capacity however, is already committed to other buyers.
Quebecor uses about 100,000 metric tons of newsprint a year
and Maxwell's company, which publishes Britain's Daily Mirror
newspaper, uses about 200,000 tonnes.
Peladeau said even with a new 170 mln dlr paper machine, 49
pct owned by the New York Times, (NYT.A), adding to Donohue's
540,000 metric tonne capacity this fall, the companies will
have to install another paper machine at Amos, Quebec, or build
another mill to meet their demands .
He said a new mill, which would produce either newsprint or
other types of paper, would cost 400-500 mln dlrs and could be
on stream in two years. He said a mill in Matane, a depressed
area with high unemployment, would be heavily subsidized by the
government.
Peladeau said he is interested in further joint ventures
with Maxwell's company, either in the newspaper market in
France or in the U.S., where the company owns two large
printing plants and is looking to expand its newspaper empire.
He said Maxwell's sons, who are French citizens, would
provide an entree into the French market, where foreigners are
prevented from buying newspapers. Peladeau said he would
consider either buying into or starting daily newspapers in
France or the U.S.
Quebecor is also in the process of expanding its chain of
about 40 weekly newspapers, with the possible acquisition of
two groups of weekly newspapers in the U.S., and is negotiating
the acquisition of two weekly newspaper chains in Canada,
Peladeau said.
He said the company may consider starting daily newspapers
in two small Quebec cities and buying radio stations in the
province.
Peladeau said Quebecor may also consider trading in its
listing on the American stock exchange for a New York Stock
Exchange listing.
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NEW YORK BUSINESS LOANS FALL 195 MLN DLRS | Commercial and industrial loans on the
books of the 10 major New York banks, excluding acceptances,
fell 195 mln dlrs to 65.06 billion in the week ended February
18, the Federal Reserve Bank of New York said.
Including acceptances, loans declined 114 mln dlrs to 65.89
billion.
Commercial paper outstanding nationally dropped 375 mln
dlrs to 336.63 billion.
National business loan data are scheduled to be released on
Friday.
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N.Y. BANK DISCOUNT BORROWINGS 64 MLN DLRS | The eight major New York City banks had
64 mln dlrs in average borrowings from the Federal Reserve in
the week to Wednesday February 25, a Fed spokesman said.
The week marked the second half of the two-week bank
statement period that ended on Wednesday. The banks had no
borrowings in the prior week.
Commenting on the latest week, a Fed spokesman said that
all of the borrowing occurred yesterday and was done by fewer
than half of the banks.
National data on discount window borrowings are due to be
released at 1630 EST (2130 GMT).
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PHILIPPINE LONG DISTANCE <PHI> YEAR NET | Shr primary 95.30 pesos vs 29.71 pesos
Shr diluted 61.11 pesos vs 18.49 pesos
Qtly div 1.25 pesos vs 1.25 pesos
Net 1.9 billion vs 779 mln
Revs 6.1 billion vs 4.7 billion
NOTE: Full name Philippine Long Distance Telephone Co.
Figures quoted in Philippine Pesos.
Dividend payable April 15 to holders or record March 13.
Exchange rate on day of dividend declaration was 20.792 pesos
per dollar.
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LIBERTY ALL-STAR EQUITY FUND INITIAL DIV | Qtly div five cts vs N.A.
Payable April two
Record March 20
NOTE:1986 dividend includes special two cts per share for
the period beginning with the fund's commencement of operations
on Novebmer three through December 31, 1986.
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COLUMBIA GAS SYSTEM INC <CG> REDEEMS DEBENTURES | The Columbia Gas Systems Inc said
it will redeem 4.7 mln dlrs principal amount of its 9-1/8 pct
debentures, series due May 1, 1996, and five mln dlrs
principal amount of its 10-1/4 pct debentures, series due May
1, 1999.
The company said it is redeeming the debentures to meet
mandatory sinking fund requirements.
In addition, Columbia said it will call for the optional
sinking fund redemption on May 1, 1987, the 4.7 mln dlrs
principal amount of the 9-1/8 debentures and 7.5 mln dlrs of
the 10-1/4 pct debentures.
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COMBUSTION ENGINEERING INC <CSP> REGULAR DIV | Qtly div 25 cts vs 25 cts prior
Pay April 30
Record April 16
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TONKA CORP <TKA> RAISES DIVIDEND | Qtly div two cts vs 1.7 cts
Pay March 26
Record March 12
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BDM INTERNATIONAL <BDM> INCREASES QTRLY DIVS | Annual div Class A 14 cts vs 12 cts prior
Annual div Class B 12.1 cts vs 10.4 cts prior
Payable April one
Record March 20
NOTE: full name is BDM International Inc.
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SORG <SRG> STOCKHOLDERS FORM GROUP | Sorg Inc said a group composed of
one-third of the stockholders in Sorg agreed not to sell their
holdings without the consent of the entire group.
Sorg said the group also agreed to vote as a body on any
proposed merger or election of directors.
The company further said it retained the First Boston Corp
to act as its financial advisor.
The company was not immediately available to provide
further details on the group or its aims.
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SYSTEMATICS INC <SYST> REGULAR PAYOUT | Qtly div three cts vs three cts prior
Pay March 13
Record February 27
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TEXAS INSTRUMENTS <TXN> DEVELOPS NEW CHIP | Texas Instruments Inc said it has
developed the first 32-bit computer chip designed specifically
for artificial intelligence applications.
The company said the new microprocessor, measuring
one-centimeter square and containing 553,687 transistors, is
the densest chip ever made.
The chip was designed, Texas Instruments said, for use with
the Lisp langugage, which is used widely by software
programmers in the artificial intelligence field.
The company added that it is working on a production
version of the chip.
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CONSOLIDATED GAS <CNG>UNIT SAYS NO RULES BROKEN | Consolidated Natural Gas
System's Consolidated Gas Transmission Corp said it is in
compliance with all federal regulations regarding the disposal
of polychlorinated biphenyls, or PCBs.
The company said it successfully cleaned up the only
earthen pit at which PCBs were reported to be above
Environmental Protection Agency standards.
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U.S. M-1 MONEY SUPPLY RISES 2.1 BILLION DLRS IN FEB 16 WEEK, FED SAYS
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<IVACO INC> YEAR NET | Shr 1.11 dlrs vs 1.04 dlrs
Net 44,092,000 vs 35,145,000
Revs 1.94 billion vs 1.34 billion
Note: 1986 results include extraordinary gain of 1,035,000
dlrs or six cts a share from secondary share offering of Canron
unit.
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U.S. BANK DISCOUNT BORROWINGS AVERAGE 310 MLN DLRS IN FEB 25 WEEK, FED SAYS
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U.S. BANK NET FREE RESERVES 644 MLN DLRS IN TWO WEEKS TO FEB 25, FED SAYS
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INVESTMENT FIRMS CUT CYCLOPS <CYL> STAKE | A group of affiliated New York
investment firms said they lowered their stake in Cyclops Corp
to 260,500 shares, or 6.4 pct of the total outstanding common
stock, from 370,500 shares, or 9.2 pct.
In a filing with the Securities and Exchange Commission,
the group, led by Mutual Shares Corp, said it sold 110,000
Cyclops common shares on Feb 17 and 19 for 10.0 mln dlrs.
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ASCS TERMINAL MARKET VALUES FOR PIK GRAIN | The Agricultural Stabilization and
Conservation Service (ASCS) has established these unit values
for commodities offered from government stocks through
redemption of Commodity Credit Corporation commodity
certificates, effective through the next business day.
Price per bushel is in U.S. dollars. Sorghum is priced per
CWT, corn yellow grade only.
WHEAT HRW HRS SRW SWW DURUM
Chicago -- 3.04 2.98 -- --
Ill. Track -- -- 3.16 -- --
Toledo -- 3.04 2.98 2.90 --
Memphis -- -- 3.05 -- --
Peoria -- -- 3.11 -- --
Denver 2.62 2.63 -- -- --
Evansville -- -- 2.99 -- --
Cincinnati -- -- 2.96 -- --
Minneapolis 2.65 2.71 -- -- 3.70
Baltimore/
Norf./Phil. -- -- 3.06 2.98 --
Kansas City 2.87 -- 3.17 -- --
St. Louis 3.03 -- 3.03 -- --
Amarillo/
Lubbock 2.64 -- -- -- --
HRW HRS SRW SWW DURUM
Lou. Gulf -- -- 3.16 -- --
Portland/
Seattle 3.07 3.08 -- 3.10 3.70
Stockton 2.78 -- -- -- --
L.A. 3.23 -- -- -- 4.05
Duluth 2.65 2.71 -- -- 3.70
Tex. Gulf 3.10 -- 3.16 -- --
CORN BRLY OATS RYE SOYB SORG
Chicago 1.47 -- -- -- 4.81 2.49
Ill. Track 1.49 2.04 -- -- 4.85 2.52
Toledo 1.41 2.04 1.50 -- 4.78 2.39
Memphis 1.59 1.95 1.71 -- 4.90 2.86
Peoria 1.51 --- -- -- 4.80 2.60
Denver 1.56 1.56 -- -- -- 2.54
Evnsvlle 1.54 2.04 1.50 2.17 4.90 2.61
Cinci 1.52 2.04 1.50 2.17 4.85 2.58
Mpls 1.34 1.75 1.50 1.85 4.68 --
Balt/Nor/
Phil 1.70 1.80 -- -- 4.98 3.12
KC 1.49 1.56 1.64 -- 4.76 2.58
St Lo 1.54 -- 1.66 -- 4.90 2.91
Amarlo/
Lubbck 1.84 1.40 -- -- 4.75 2.92
Lou Gulf 1.73 -- -- -- 5.05 3.12
Port/
Seattle 1.87 2.10 1.68 -- -- --
Stockton 2.18 2.23 2.10 -- -- 4.00
LA 2.54 2.50 -- -- -- 4.38
Duluth 1.34 1.75 1.50 1.85 4.68 --
Tex Gulf 1.73 1.48 1.73 -- 5.05 3.12
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CORADIAN CORP <CDIN> 4TH QTR NET | Shr profit three cts vs loss three cts
Net profit 363,000 vs loss 197,000
Revs 3,761,000 vs 2,666,000
Year
Shr profit one cent vs loss 37 cts
Net profit 129,000 vs loss 1,715,000
Revs 11.4 mln vs 10.9 mln
Avg shrs 10,694,081 vs 4,673,253
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N.Z. TRADING BANK DEPOSIT GROWTH RISES SLIGHTLY | New Zealand's trading bank seasonally
adjusted deposit growth rose 2.6 pct in January compared with a
rise of 9.4 pct in December, the Reserve Bank said.
Year-on-year total deposits rose 30.6 pct compared with a
26.3 pct increase in the December year and 34.5 pct rise a year
ago period, it said in its weekly statistical release.
Total deposits rose to 17.18 billion N.Z. Dlrs in January
compared with 16.74 billion in December and 13.16 billion in
January 1986.
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