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Pay N Pak Stores Inc said it received a revision to one of the two previously disclosed proposals to buy the company. Pay N Pak said that the proposal from a leveraged buyout firm had been amended to increase the dividend rate on the cumulative preferred stock to be received by PNP shareholders from 13.5 pct to 17.5 pct. As previoiusly announced the proposal calls for a transaction in which PNP shareholders would receive a combination of 17.50 dlrs in cash and 2.50 dlrs in liquidation value of cumulative preferred stock for each common share. Under the other proposal received from Paul Bilzerian PNP shareholders would receive on a blended basis 16.67 dlrs in cash and 3.33 dlrs in liquidation value of cumulative redeemable preferred stock for each common share the company said. Under the Bilzerian proposal the dividend rate on the preferred stock would be set so that in the joint opinion of the financial advisor to Bilzerian and the financial advisor to Pay N Pak the preferred stock would trade at its liquidation value on a fully distributed basis the company said. Reuter | PAY 'N PAK <PNP> RECEIVES AMENDED PROPOSAL |
First Tennessee National Corp is offering 75 mln dlrs of subordinated capital notes due 1999 yielding 10.43 pct said lead manager Goldman Sachs and Co. The notes have a 10-3/8 pct coupon and were priced at 99.65 to yield 175 basis points more than comparable Treasury securities. Non-callable to maturity the debt is rated Baa-2 by Moodys and BBB-plus by Standard and Poors. The gross spread is seven dlrs the selling concession is four dlrs and the reallowance is 2.50 dlrs. Salomon Brothers co-managed the deal. Reuter | FIRST TENNESSEE <FTEN> SELLS 12-YEAR NOTES |
U.S. military forces in the Mideast Gulf are under orders to protect only American flag vessels and occasional U.S. arms deliveries on other ships to non-belligerent states in the area the Pentagon said today. No one has ever stated or supported a policy of protecting all shipping in those waters Pentagon spokesman Bob Sims said as the Reagan Administration drew up plans to increase the protective U.S. military presence in the gulf. Sims denied published reports that U.S. Defense Secretary Caspar Weinberger sought air cover to protect all neutral shipping in the western gulf from attacks by Iran and Iraq. As we have said repeatedly only American flag vessels are under our protection with the exception on a limited case-by-case basis of ships carrying our Foreign Military Sales equipment to friendly non-belligerent states in the region Sims said. U.S. warships in the gulf two weeks ago protected a Kuwaiti ship which sailed to Bahrain with U.S. arms for Bahrain and Kuwait. But Sims said Washington had received assurances that the the arms would not be used elsewhere. He said Kuwait which is turning 11 oil tankers over to U.S. firms to fly the American flag and be protected by the U.S. warships is not considered a belligerent despite Iranian charges that Kuwait is supporting Iraq in the gulf war. Kuwaiti tankers have come under repeated Iranian attack. Sims refused to say how the United States will beef up its seven-ship Middle East Task Force in the gulf to protect the 11 Kuaiti tankers. But Pentagon officials said that additional ships and air cover are under consideration. Reuter | U.S. TO PROTECT ONLY AMERICAN SHIPS |
VIACOM SAYS FEDERAL COURT REJECTS REQUEST TO BLOCK PLANNED MERGER |
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Qtly div five cts vs five cts prior Pay July 10 Record June 24 Reuter | INVESTORS SAVINGS BANK <ISLA.O> SETS PAYOUT |
Asamera Inc said wholly owned Asamera Oil (U.S.) Inc concluded the 25.25 mln U.S. dlr sale of its Denver refinery to Total Petroleum North America Ltd. In addition Total is purchasing crude oil and refined product inventories at market value Asamera said. Reuter | ASAMERA <ASM> COMPLETES REFINERY SALE |
S/P MAY DOWNGRADE HOSPITAL CORP'S 1.8 BILLION DLRS OF DEBT |
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Viacom International Inc said the U.S. District Court for the Southern District of New York denied the motion of <Carsey-Werner Co> for a temporary injunction to block the proposed merger of Viacom with a subsidiary of <National Amusements Inc>. Carsey-Werner is the producer of the Cosby Show. Reuter | COURT DECLINES TO BLOCK VIACOM <VIA> MERGER |
Standard and Poors Corp said it may downgrade Hospital Corp of Americas 1.8 billion dlrs of debt. S and P cited uncertainties over the companys major restructuring. It noted that Hospital Corp has agreed to sell 104 acute care hospitals to a new company owned by an employee stock ownership plan. The sale is for 1.8 billion dlrs cash. If the proceeds are used primarily for share repurchases weaker asset and cash flow protection will result S and P said. Hospital Corp currently carries A-rated senior debt and A-minus subordinated debt. Reuter | HOSPITAL CORP <HCA> MAY BE DOWNGRADED BY S/P |
AEGON U.S. Holding Corp a unit of AEGON N.V. of the Netherlands and Life Investors Inc <LINV.O> said they have purchased about 451000 shares of Life Investors common stock for 51.61 dlrs per share cash. The purchase is part of an agreement between the two companies made in November 1981 saying that on or before each April 30 between 1983 and 1987 the companies would offer to buy one-sixth of the number of Life Investors common stock outstanding as of Dec. 31 1982 not already owned by AEGON. On Dec. 31 1988 they would offer to buy any and all remaining shares. Reuter | AEGON N.V. <AEGN.AS> BUYS LIFE INVESTORS SHARES |
Wesbanco Inc said its board executed a merger agreement with the <Bank of Sissonville>. When the merger is completed each of the 50000 shares of the Bank of Sissonville common stock outstanding will be converted into 2.75 shares of Wesbanco common stock the company said. The Bank of Sissonville has total assets of 25.5 mln dlrs as of Dec 31 1986 the company said. Reuter | WESBANCO <WSBC.O> ACQUIRING BANK OF SISSONVILLE |
Moodys Investors Service Inc said it affirmed the Ba-3 rated convertible subordinated debentures of both Computer Associates International Inc due 2012 and UCCEL Corp due 1995. About 113 mln dlrs of debt is affected. Computer Associates plans to acquire UCCEL through an exchange of stock Moodys noted. The resulting merger would create the largest independent software company yet. Moodys said it believes that the merged company may experience short-term pressure on margins while consolidating operations. In the long-term the agency said the outlook is positive and anticipates a greatly improved market position. Reuter | MOODY'S AFFIRMS COMPUTER ASSOC <CA>, UCCEL <UCE> |
Nuclear Data Inc said its auditors Ernst and Whinney quaified their opinion on its financial statements for the fiscal year ended February 28. As previously reported Nuclear Datas bank debt matures on June 30 1987 and its lenders have required it to obtain replacement financing by then. It said the auditors qualified their opinion because the company does not yet have a commitment for replacement financing. Nuclear Data said it expects to have such financing in place shortly. Reuter | NUCLEAR DATA <NDI> FINANCIAL DATA QUALIFIED |
Period ended April 30 Shr 71 cts vs 42 cts Shr diluted 62 cts vs 38 cts Net 2629704 vs 1721384 Revs 39.5 mln vs 32.0 mln Reuter | MUNICIPAL FINANCIAL CORP <MFC.TO> SIX MTHS NET |
Qtr ends April 30 Shr 32 cts vs 20 cts Net 1981681 dlrs vs 1022451 dlrs Avg shrs 6220000 vs 5120000 12 mths Shr 1.22 dlrs vs 59 cts Net 7005000 dlrs vs 3030000 dlrs Avg shrs 5737808 vs 5120000 NOTE: full name of company is commonwealth mortgage co inc. Reuter | COMMONWEALTH MORTGAGE <CCMC.O> 4TH QTR NET |
Rep. Norman Lent R-N.Y. said Dennis Levines conviction for insider trading showed the need for tougher enforcement of insider trading laws by the government and the securities industry. Lents comments came at the start of closed testimony by Levine at the House Oversight and Investigations subcommittee. Levines testimony was not released. Why didnt Dennis Levines superiors at four different investment banking houses question the sources of his uncanny information on possible corporate takeovers? Lent asked. Why has the Securities and Exchange Commission historically been unable to prosecute insider trading cases without outside evidence that illegal behavior has taken place? Lent added. Lent said Levine had told the subcommittee staff his associates at major banks told him insider trading was accepted practice. Levine also said he did not worry about being caught by the SEC. The securities industry must stop putting morality and ethics behind proift. The SEC must exercise tougher control and supervision of the industry Lent said. Reuter | CONGRESSMAN QUESTIONS INSIDER TRADING ENFORCEMENT |
Harcourt Brace Jovanovich Inc managers who use a special cash dividend to buy additional stock are demonstrating confidence in the company chairman William Jovanovich said. In a written statement Jovanovich said the companys recapitalization which will pay a dividend of 40 dlrs per share in cash and preferred stock worth 10 dlrs per share is not a leveraged buyout. He said management of Harcourt is not receiving shares in the recapitalization other than through a legal employee stock ownership program. Reuter | HARCOURT<HBJ> CHIEF SAYS MANAGERS ARE CONFIDENT |
Standard and Poors Corp said it downgraded 160 mln dlrs of debt of Norstar Bancorp. Cut were the companys senior debt to AA-minus from AA subordinated debt to A-plus from AA-minus and preferred stock to A from A-plus. S/P affirmed its A-1-plus commercial paper. The downgrade reflected a modest increase in Norstars risk profile combined with lower financial performance. Norstars recent purchase of the 1.2 billion dlr Syracuse Savings Bank will require substantial management and financial resources to bring the units performance in line with the banks other operations the agency said. Reuter | NORSTAR <NOR> DEBT DOWNGRADED BY S/P |
General Motors Corps negotiations on a new contract covering 370000 U.S. workers who belong to the United Automobile Workers union will open July 27 UAW president Owen Bieber said. He said the opening of talks on a new contract covering 110000 union members at Ford Motor Co <F> will open the following day. Current contracts at both companies expire at 2359 EDT on September 14. Reuter | GM <GM> LABOR TALKS TO OPEN JULY 27 |
North American Ventures Inc said it has sold about nine mln dlrs of the companys restricted common shares to the newly created <Butler International Inc> Employee Stock Option Plan. North American said the nine mln dlrs payment resulted from an excess of funds in Butlers pension plan. The transaction was for about 1.5 mln North American common shares approximating 5.1 pct of the companys outstanding shares North American said. North American said proceeds from the stock sale would increase the companys stockholders equity to about 85 mln dlrs and will be used to pay down aquisition financing used in the Butler purchase which was completed in January. Reuter | NORTH AMERICAN VENTURES <NAVI.O> SELLS COMMON |
year ended March 31 Shr 91 cts vs 1.08 dlrs Net 4800000 vs 5800000 Rev 118.7 mln vs 110.3 mln Reuter | AARON RENTS INC <ARON.O> YEAR NET |
U.K. Bankers for the most part lauded outgoing U.S. Federal Reserve Chairman Paul Volcker for his achievements over the past eight years but expressed some uncertainty about economist Alan Greenspan nominated by President Reagan to succeed him. One of Volckers greatest achievements was the sense of continuity and stability he gave to the international markets said Carlos Santistevan executive director of Libra Bank Plc. However it is uncertain how long it will take for Greenspan to fill that role and the degree to which he can do so he said. Greenspan heads his own financial consulting firm Townesend Greenspan Associates Inc and was Chairman of the Council of Economic Advisers during the Ford Administration. He is a prominent and well known figure in the U.S. said David Lomax Group Economics Adviser at National Westminster Bank Plc who described Greenspan as an orthodox Republican economist who may be better suited to getting the U.S. Economy on track than Volcker. But for the most part bankers in London are unfamiliar with Greenspans views on domestic and international economics or the international debt crisis. I will be sad to see Volcker go. He is a central banker of good repute with a general interest in protecting the U.S. And international banking system said Libras Santistevan. Volcker knows and understands the problems facing indebted countries he said adding that it is unlikely Greenspan is as familiar with the problem and the personalities involved. For this reason he expects there will be little change in the Feds approach to the debt crisis even as U.S. Commercial banks take a harder line in dealing with the problem by adding billions of dollars in reserves against possible losses on third world debt. Another senior banker who deals with the Latin American debt problem also doubted there would be much change post-Volcker but for other reasons. He said that despite U.S. Treasury Secretary James Bakers debt initiative which called for greater contributions by banks governments and multilateral organization governments have done little to try to improve the situation leaving the bulk of the responsibility in the hands of the bankers. Despite the Feds independence from central government he questioned how much impact Greenspan could have coming into the job so close to the next Presidential election. News that Volcker would not seek a third term hit the financial markets hard. The U.S. Dollar fell sharply on foreign exchange markets before reported concerted central bank intervention by the Fed and the Bundesbank helped it recover somewhat. Prices of Eurodollar denominated bonds fell about one point while prices of U.S. Treasury bonds traded here lost more than one point. But despite the disruption in the markets Lloyds Bank Plcs Group Economic Adivser Christopher Johnson said the announcement was well-timed given the recent rise in the dollar against the mark and yen. In recent statements U.S. Officials have said the dollar has fallen far enough and at a White House briefing today announcing his nomination Greenspan said there certainly is evidence that the dollar had bottomed out. However many economists here believe that the recent rise in the dollar will be only temporary and that it will have to fall further before Americas huge trade deficit begins to reverse. The dollar has further to fall although it may take a few years said Lloyds Banks Johnson. He added that the important thing is that there is a soft landing. Like other economists Johnson is anxious to hear Greenspans testify at the Congressional confirmation hearings. He has everything going for him but he must establish credibility. We have to hear his views on inflation and the outlook for interest rates he said. Some bankers criticized Volcker for taking too hard a stance in combating inflation in the late 1970s when his tightening in U.S. Monetary policy pushed interest rates to record levels. He tightened more than the Republicans wanted and only relaxed his stance when the Latin American debt crisis erupted (in 1982) National Westminsters Lomax said. Lomax said that Greenspan if appointed will inherit the agreements entered into by Volcker with other members of the Group of Five industrial nations on the dollar. However he said that the danger lies in dollar stability being maintained because of a monetary policy that is too tight. Too firm a monetary policy could send the U.S. Into recession which would not be welcome by European counterparts he said. Reuter | U.K. BANKERS LAUD VOLCKER, UNSURE ABOUT GREENSPAN |
Connecticut Light and Power Co a unit of Northeast Utilities said it sold 50 mln dlrs of preferred stock as part of its ongoing program to refinance high-interest debt and high-coupon preferred stock. Northeast said the stock which will be retired in 25 years will carry an annual dividend of 9.1 pct with Connecticut Light to use the proceeds to redeem 36 mln dlrs in preferred stock issued in June 1982. The company said the new issue is being offered through E. F. Hutton and Co. Reuter | NORTHEAST UTILITIES <NU> UNIT SELLS STOCK |
Hollinger Inc will pay about 50 mln dlrs cash for its previously reported acquisition of privately owned Unimedia Inc chairman Conrad Black told reporters after the annual meeting confirming a published report. Commenting on press reports about the 50 mln dlr price tag Black said That would not be wildly inaccurate although he declined to disclose the actual cost. Montreal-based Unimedia is Quebecs third largest newspaper group with three French language daily newspapers in Quebec City Ottawa and Chicoutimi Quebec and four printing plants in Ontario and Quebec. Black added that Hollinger would also continue seeking acquisitions of daily newspapers with circulation under 25000 readers. He said Hollinger was currently talking to about 10 such newspapers in the U.S. where the company currently owns 23 dailies. There is really no end to the ones that are available he told reporters although he added that most remaining acquisition opportunities are in the U.S. He said that Hollingers 58 pct-owned Daily Telegraph PLC of London should become profitable in this years fourth quarter. For full-year 1987 the Daily Telegraph could break even or better said Black citing major reductions in labor costs and improved technology at the Telegraph Britains largest circulation quality daily. The Telegraph lost 13.2 mln Canadian dlrs last year. Daily Telegraph chief executive Andrew Knight told reporters after the meeting that the Telegraphs daily circulation had risen by 25000 since September to about 1150000 on weekdays despite added competition from the new Independent daily newspaper. Knight said The Independent was not affecting the Telegraphs growth but was making inroads into the circulation of other London quality dailies such as The Times and The Guardian. Hollinger chairman Black predicted Hollinger would post 1987 net income of about 55 mln dlrs or one dlr a share including extraordinary gains from previous sales of discontinued operations. Hollinger lost 87 mln dlrs or 6.54 dlrs a share last year on fewer average shares and after an extraordinary loss of 52 mln dlrs. Black told shareholders that first quarter operating earnings on continuing operations amounted to 499000 dlrs against a year-ago loss of 165000 dlrs. Revenues on continuing operations rose to 102.1 mln dlrs from 1.5 mln dlrs last year which did not include Daily Telegraph revenues he added. Consolidated first quarter figures were not disclosed. He said the Daily Telegraphs first quarter operating loss was sharply reduced from last year. Reuter | HOLLLINGER <HLG.TO> PAYING 50 MLN DLRS FOR BUY |
Algonquin Gas Transmission Co a unit of Texas Eastern Corp said it has filed for Federal Energy Regulatory Commission approval of new rate schedules. It said it has also filed for proposed service agreements for interruptible and firm transportation service. Algonquin said the filing would allow its customers to move available spot gas supplies to price competitive markets. Reuter | TEXAS EASTERN <TEX> UNIT FILES FOR NEW RATES |
USX Corps USS division said it was raising prices for all hot rolled bar and semi-finished products 1100 series grades by 10 dlrs per ton effective July One 1987. The company said the increase reflects current market conditions. The company could not say what percentage the increase reflects from current prices nor could it say how much per ton the products sell for currently. Reuter | USX <X> UNIT RAISES PRICES ON CERTAIN GRADES |
Central Maine Power Co said it issued a request for proposals for about 150 potential project sponsors of cogeneration and small power production projects. The utility said it has about filled six avoided cost decrements and is soliciting proposals to fill about 50 megawatts each in the seventh and eighth decrements as defined by the Maine Public Utilities Commission. Central Main said the avoided costs for both decrements have been established on the basis of costs negotiated between the utility and Hydro-Quebec for planned power purchase beginning in 1992. Reuter | CENTRAL MAINE <CTP> SEEKS COGENERATOR SPONSORS |
Spartech Corp which earlier said it will repurchase up to 10 pct of its 2.6 mln outstanding shares in the open market said it has about 475000 dlrs currently available for buybacks. It said its indenture for convertible subordinated debt limits stock purchases to 50 pct of net earnings (less preferred stock dividends) each fiscal year. Reuter | SPARTECH <SPTN.O> HAS 475,000 DLRS FOR BUYBACK |
President Reagan called for continued nondiscriminatory treatment for Romanian exports to the United States in the face of congressional opposition because of the Bucharest governments record on human rights. A White House statement said Reagans decision to press for continuation of so-called Most Favored Nation (MFN) status for Romania had been exceptionally difficult and came after all options were seriously considered. But the statement said that despite concerns about human rights abuses by the Bucharest government the president had decided that should be continued because it helped stimulate emigration from Romania and gave the United States influence on human rights practices there. The statement was issued as Reagan sent to Congress requests for one-year extensions of MFN for Romania Hungary and China. The House of Representatives has attached to a trade bill legislation that would temporarily deny MFN for Romania pending certification by Reagan that the country had made progress on human rights. There is no controversy over continuation of MFN for Hungary and China. Reuter | REAGAN SEEKS ROMANIA TRADE CONCESSION |
Oper shr eight cts vs two cts Oper net 119000 vs 32000 Sales 12.0 mn vs 11.3 mln Note: Current qtr figures exclude loss from discontinued operations of 30000 dlrs or two cts per share vs loss of 54000 dlrs or four cts per share. Reuter | TIMBERLINE INDUSTRIES INC <TIMB.O> 1ST QTR NET |
Rainier Bancorp said Allan Nichols head of its Consumer Banking Division has resigned effective June 19 and will be succeeded by David Williams. Williams is currently head of its Corporate Banking division Rainier said. It said James Cullen currently in charge of International Banking will succeed Williams in Corporate Banking and Steve Driscol director of the International Divisions Asia-Pacific Region will succeed Cullen at International Banking. Reuter | RAINIER BANCORP <RBAN.O> NAMES NEW UNIT EXEC |
Corvus Systems Inc said Lewis Lipton currently president was named to the additional post of chief executive. The company said Lipton was also elected to its board. Reuter | CORBUS <CRVS.O> PRESIDENT NAMED CEO |
Standard and Poors Corp said it may upgrade 100 mln dlrs of B-plus subordinated debt of Computer Associates International Inc and 13 mln dlrs of B-minus subordinated debt of UCCEL Corp. S and P cited a merger agreement between the two companies which it believes will improve both firms market positions as well as complement each others products and distribution. But S and P pointed out that duplicate product lines could raise marketing difficulties and restrict sales. The agency will study improvements in the financial condition and competitive position of the merged entity. Reuter | S/P MAY UPGRADE COMPUTER ASSOC <CA>, UCCEL <UCE> |
Autodesk Inc said it made an underwritten public offering of 2640836 common shares at 24 dlrs per share. The company said it sold 2.5 mln shares and the rest were sold by stockholders. Reuter | AUTODESK <ACAD.O> SELLS STOCK |
The Commodity Credit Corporation CCC has accepted bids for export bouses to cover sales of 150000 tonnes of U.S. barley to Saudi Arabia the U.S. Agriculture Department said. The CCC accepted three bonus offers from one exporter which averaged 40.88 dlrs per tonne it said. The barley is for delivery August 15-November 30 in three shiments of 50000 tonnes each. The bonus awards were made to Louis Dreyfus Corporation and will be paid in the form of commodities from CCC stocks. An additional 350000 tonnes of U.S. barley are still available to Saudi Arabia under the Export Enhancement Program initiative annnounced on May 15 1987 it said. Reuter | CCC ACCEPTS BONUS ON BARLEY TO SAUDI ARABIA |
Rockwell International Corp said it and U S West Knowledge Engineering Inc a U S West Inc subsidiary agreed to jointly develop an operator workstation that combines voice and data capabilities for directory assistance call intercept and other operator functions in a single terminal. It said the systems will be offered as integrated elements of Rockwells telephone- company-oriented ISS-3000 Automatic Call Distribution switches. Reuter | ROCKWELL <ROK>, U S WEST <USW> UNIT IN PACT |
The European Community was set to plunge into an ever-deepening budget crisis after ministers failed to reach agreement on plugging a gap in the near-bankrupt Communitys finances diplomats said. As EC budget ministers ended six hours of talks in Luxembourg diplomats said there was little basis for an accord amongst the trading blocs 12 member states. The EC executive Commission says the Community faces a deficit this year of at least five billion European Currency Units and could be forced to choose between massive spending cuts or bankruptcy. It has appealed to member states to pay an extra 1.5 billion ECUs to help meet the deficit caused by soaring farm spending and falling revenues. But hardliners Britain and West Germany have insisted that there can be no extra cash for the Community this year and instead call for a clampdown on farm spending which absorbs two thirds of the EC budget. We have to make clear that expenses should be based on income West German Minister of State Hans Tietmeyer told reporters. There is no way the Germans will agree to extra financing in the form of national contributions he added. A second Commission proposal which would plug most of the budget gap by paying member states in arrears rather than in advance for their spending on Community farm policies was also far from agreement diplomats added. The proposal strongly backed by Britain and West Germany would save up to four billion ECUs if payments were delayed for two months. But poorer member states which would have to borrow funds to cover the delay complain the change in the system would unfairly impose too much of the burden on them. The European Parliament is also expected to refuse an early debate on the changeover in the farm payments system further delaying any moves to solve the deficit problem parliamentary sources said. Reuter | NO PROSPECT IN SIGHT OF EC BUDGET ACCORD |
AHMANSON TO POST 2ND QTR WRITEOFF OF 24 MLN DLRS ON FSLIC RESERVE INVESTMENT |
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Data General Corp said sales continue to remain flat and it sees little evidence that demand will pick up in the near future. The company had not really seen any major change in demand vice president of group marketing J. David Lyons told Reuters in an interview. Our sales have been moderate to flat but certainly not down Lyons said. Data General president Edson de Castro declined to comment on his outlook for the computer industry or on the companys performance. Wall Street analysts said they were not surprised by the less than confident message from Data General which earlier today announced computer networking products to link personal computers with networks of its minicomputers and computers from other vendors. Theyve tried a number of different things that havent seemed to work said Paine Webber analyst Stephen Smith. Data General is finding that aggressive pricing alone isnt enough to win sales Smith said. In the second quarter ended March 31 Data General posted an operating loss of 24.4 mln dlrs or 91 cts a share compared to earnings of 2.0 mln dlrs or eight cts a share a year earlier. Sales for the quarter fell to 315.2 mln dlrs from 318.8 mln dlrs. Despite reports of an upturn in sales at rivals Digital Equipment Corp <DEC> and International Business Machines Corp <IBM> Data General said it was not convinced that the minicomputer market had emerged from a two-year slump. We would rather wait until we see a sustained improvement in orders Lyons said. Lyons said new hardware and software introduced by the company are a response to customers who want to tie together their growing number of PCs and to connect them with larger mini and mainframe computers. He said the products are part of a new strategy of providing industry-standard systems that allow computers from different vendors to share and exchange information. Analysts noted that Data General is one of many companies promoting the integration of PCs with other office computers. PC integration is a tough strategy said Smith. A lot of people are coming to the market from a lot of different angles he said. Reuter | DATA GENERAL <DGN> SEES LITTLE SALES UPTURN |
The Senate cleared away a parliamentary obstacle threatening final passage of a 9.4 billion dlr money bill for the rest of fiscal 1987 ending October 1. The Senate voted 64 to 32 to override objections the bills money total violated the 1987 budget a vote that required 60 votes for approval. The House-passed measure debated by the Senate since May 7 carries funds for most government activities with the bulk --6.7 billion dlrs--for agriculture support programs. Final passage could come late tonight or tomorrow. Reuter | SENATE CLEARS WAY FOR PASSAGE OF MONEY BILL |
Noland Co said its May sales of 35 mln dlrs was down 11 pct from the year-earlier period of 38.8 mln dlrs. For the first five months of 1987 the company said its sales totaled 161.8 mln dlrs four pct less than the first five months of 1986 when the company posted sales of 169.0 mln dlrs. Reuter | NOLAND <NOLD.O> MAY SALES DECLINES 11 PCT |
AHMANSON SAID IT POSTPONED SALE OF UP TO ONE BILLION DLRS OF SECURITIES |
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House Speaker Jim Wright predicted passage of legislation requiring the Reagan administration to provide Congress with a report on its Mideast Gulf policy but a last-minute revolt by an alliance of liberals and conservatives left the bills fate in doubt. The legislation was written in the wake of the May 17th Iraqi missile attack on the U.S. frigate Stark in the Gulf which killed 37 Americans and President Reagans decision to protect 11 Kuwaiti oil tankers by putting them under U.S. flags -- effectively making them American ships. Since the administration made known its reflagging plans congressional leaders complained they had not been consulted and some charged the policy could lead the United States into the 6 1/2-year-old war between Iran and Iraq. The House was to vote today on a bill -- supported by the Democratic and Republican congressional leadership and the administration -- which demanded a report within seven days on plans to meet the security needs of U.S. forces in the gulf. The resolution was expected to pass without controversy today in the House Foreign Affairs Committee before the full House was to take up the bill. But in a surprise move liberal Democrats and conservative Republicans on the committee joined in an unusual alliance to oppose the resolution. Liberal Democrats said a lack of any restrictions in the bill implied consent to Reagans policies. Reuter | LAST-MINUTE OPPOSITION TO GULF BILL ARISES |
U.S. SELLING 13.2 BILLION DLRS OF 3 AND 6-MO BILLS JUNE 8 TO PAY DOWN 1.3 BILLION DLRS |
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The U.S. Treasury said it will sell 13.2 billion dlrs of three and six-month bills at its regular auction next week. The June 8 sale to be evenly divided between the three and six month issues would result in a paydown of 1.3 billion dlrs as maturing bills total 14.512 billion dlrs. The bills are to be issued June 11. Reuter | U.S. TO SELL 13.2 BILLION DLRS OF BILLS |
U.S. power companies generated a net 49.92 billion kilowatt-hours of electrical energy in the week ended May 30 up 6.8 pct from 46.74 billion a year earlier the Edison Electric Institute (EEI) said. In its weekly report on electric output the electric utility trade association said electric output in the week ended May 23 was 49.86 billion kilowatt-hours. The EEI said power production in the 52 weeks ended May 30 was 2578.41 billion kilowatt hours up 2.7 pct from the year-ago period. Electric output so far this year was 1072.97 billion kilowatt hours up 3.2 pct from 1039.25 billion last year the EEI said. Reuter | U.S. WEEKLY ELECTRIC OUTPUT UP 6.8 PCT FROM 1986 |
Some producers in the 1987 acreage reduction program may be eligible for deficiency payments on 92 pct of their enrolled acreage even though none of it is planted with wheat or other program crops the U.S. Agriculture Department said. The department said the provision of the Farm Disaster Assistance Act will be available to all eligible winter wheat producers producers of other types of wheat who were prevented from planting their 1987 wheat crop because of a 1986 natural disaster and all producers who operate farms with program crop acreage bases subject to flooding on 50 pct of such crops permitted acreage. A producer who did not enroll in the 1987 acreage reduction program may become eligible by signing-up no later than July 15. Producers will be informed by the local offices when applications are being accepted it said. The department said producers of wheat other than winter wheat may use the 0/92 option if they were preventedf from planting their intended acreage with wheat for harvest in 1987 because of any natural disasters which occured in 1986 or if the farm is located in a county approved by Farmers Home Administration for emergency loans for such disasters that occurred in 1986. Reuter | USDA SETS 0/92 PROVISION FOR SOME PRODUCERS |
The Commodity Credit Corporation (CCC) has accepted a bid for an export bonus to cover the sale of 15000 tonnes of frozen poultry to Iraq the U.S. Agriculture Department said. The poultry is for shipment June-September and the bonus was 719.80 dlrs per tone it said. The bonus award was made to ConAgra Poultry Co and will be paid in the form of commodities from the inventory of CCC stocks. The purchase completes the Export Enhancement initiative for Frozen Poultry to Iraq announced December 22 1986. Reuter | CCC ACCEPTS BONUS ON POULTRY TO IRAQ -- USDA |
The Commodity Credit Corporation (CCC) has accepted a bid for two bonus offers to cover the sale of 10000 tonnes of frozen poultry to Egypt the U.S. Agriculture Department said. The poultry is for shipment November 1987 through August 1988 and the bonus was 473.99 dlrs per tonne for the frozen fryer legs. The bonuses were made to Gress Foods Inc (5000 tonnes) and Serva International Ltd (5000 tonnes). The subsidies will be paid to the exporters in the form of commodities from CCC stocks. An additional 8500 tonnes of frozen poultry remain available to Egypt under the Export Enhancement Program initiative announced Dec 19 1986 and Feb 27 1987 the department said. Reuter | CCC ACCEPTS BONUS ON POULTRY TO EGYPT -- USDA |
West Germanys biggest bank said it would withhold support from Volkswagen AG <VOWG.F> management at next months annual meeting because of the VW currency scandal. Deutsche Bank AG <DBKG.F> said it would abstain in votes exonerating VW management and the supervisory board which represents shareholders and employees unless an auditors report on the currency scandal is published before the July 2 annual meeting and either clearly absolves or blames the management and board. Several shareholder groups have said they will vote against management at what promises to be a stormy annual meeting. If a majority of shareholders back these groups the top management of Europes biggest carmaker could be dismissed. Deutsche said it expected the results of the auditors report on the currency fraud which cost VW some 260 mln dlrs to be published before the annual meeting. But in a letter to Deutsche customers depositing their VW shares at the bank Deutsche wrote: Without knowledge of these results we do not think we are in a position to make you a suggestion for or against exoneration of the management board and supervisory board. Unless you give us instructions to the contrary we will abstain with your shares ... but we reserve the right to vote for or against exoneration of the management board and supervisory board if this seems in your interest in line with the results of the auditors report it added. A strong shareholder vote against the management would empower the supervisory board to dismiss the management if it chooses though such a move would not be mandatory. A member of the supervisory board who does not receive exoneration at an annual meeting may have to step down. An abstention or no-vote by banks on behalf of customers against management would in itself be a vote of no confidence. German banks traditionally use their huge proxy votes at annual meetings to support the management of the company in which they are often represented on the supervisory board. VW management board chairman Carl Hahn said in April that 1986 profits had been hit by the scandal in which documents relating to currency arbitrage were allegedly faked but profits for 1987 would not be affected. Following the scandal finance director Rolf Selowsky resigned and former chief dealer Bobby Junger was arrested. Deutsche represents 8-10 pct of VWs share capital the sources said and F. Wilhelm Christians one of the banks two management board spokesmen (chief executives) is on the VW supervisory board. Banking sources said Deutsche was furious with VW after the bank led an international placement of VW shares from the companys record rights issue last September. Less than two months later VW announced a sharp fall in interim profits bashing its share price and severely denting confidence in the German share market generally. A spokesman for the Savings Bank Association said that German savings banks would vote not to discharge Selowsky and depending on whether the auditors report was published would abstain on the vote for other management board members. The federal government and the state of Lower Saxony together have 40 pct of VW shareholders votes. It is still unclear how they will vote. Associations representing small shareholders will also ensure the annual meeting is heated. The Protective Association for Securities Ownership has said it will vote against the entire management board and the Protective Society for Small Shareholders will also vote against the supervisory board. A spokeswoman for Deutsche Treuhand-Gesellschaft AG the auditors commissioned by VW in March to investigate the scandal declined to comment when its report would be issued. Reuter | DEUTSCHE BANK SAYS NO SUPPORT FOR VW MANAGEMENT |
The Senate cleared away a parliamentary obstacle threatening final passage of a 9.4 billion dlr money bill for the rest of fiscal 1987. The Senate voted 64 to 32 to override objections the bills money total violated the 1987 budget a vote that required 60 votes for approval. The House-passed measure debated by the Senate since May 7 carries funds for most government activities with the bulk 6.7 billion dlrs for agriculture support programs. Final passage could come late tonight or tomorrow. Reuter | BILL WITH FARM MONEY NEARS U.S. SENATE OKAY |
Phelps Dodge Corp officials said good fundamentals in copper markets should lead to improving prices for the metal. In an interview with Reuters chairman G. Robert Durham said continued strong demand and low inventories pushed prices up eight to nine pct on the New York Commodities Exchange last month. Our customers in this country are living off the tailgates of our trucks he said referring to tightness of supply and strong demand. The fundamentals are good. Asked if metal prices will continue to rise Durham said; All I know is fundamentals cannot be ignored. He said copper supplies are lower than they have been for almost 20 years. Last year copper demand was second highest on record behind 1984 he said. Phelps Dodge is the nations largest copper company with annual production expected to reach 500000 tons this year. During the interview executive vice president Douglas Yearley said he believed it was only a matter of time before the copper price rose because there arent that many new projects coming on and demand short of a major recession will continue to grow modestly. Copper for July delivery rose more than two cts a pound to more than 69 cents in Comex trading today. A one cent a pound rise in copper prices yields 10 mln dlrs in annual earnings for Phelps Dodge the company said. Demand has been surprisingly good in 1987 in construction and other areas Yearley said. New production later this year from a Bingham Utah mine owned by Kennecott Corp a unit of British Petroleum Co PLCs <BP> Standard Oil Co a mine in New Guinea and Phelps Dodges own expanded Morenci Ariz. mine will be offset by production shortfalls in Mexico and Zambia he said. Durham said production costs at the New Mexico-located Chino mine will be in line with conventional copper production at the companys other mines by the fourth quarter. The companys total production costs including depreciation but before interest and corporate expense should be below 50 cts a pound by late 1989 or 1990 he said. Reuter | PHELPS DODGE <PD> SEES STRONGER COPPER PRICES |
The Commodity Credit Corporation (CCC) has amended its Export Credit Guarantee Program line to Haiti to add one mln dlrs in guarantees for sales of U.S. wood products the U.S. Agriculture Department said. The action increases the value of export credit guarantees for wood products to Haiti from 1.8 to 2.8 mln dlrs and the total value of export credit guarantees authorized to Haiti for the current fiscal year for all commodities to 12.0 mln dlrs the department said. All sales must be registered and exports completed by Sept 30 1987 it noted. Reuter | CCC CREDIT GUARANTEES TO HAITI AMENDED |
John Boy president and chief executive officer of the U.S. Sugar Corp said he will retire effective June 30 1987. He will be replaced by J. Nelson Fairbanks currently senior vice president the company said. Boy will be the vice chairman of the board effective July One 1987. Reuter | U.S. SUGAR <USUG.O> PRESIDENT TO RETIRE |
Shr 42 cts vs 22 cts Net 3445000 vs 2326000 Revs 41.7 mln vs 51.5 mln Reuter | TEXAS AMERICAN ENERGY CORP <TAE> 1ST QTR |
Braniff Inc aid its May load factor rose to 59.15 pct from 57.16 pct. Revenue passenger miles rose 25.7 pct to 268.9 mln miles from 213.8 mln miles and available seat miles rose 21.5 pct to 454.5 mln miles from 374.1 mln miles. Year-to-date load factor rose 56.22 pct from 55.35 pct. Revenue passenger miles rose 34.2 pct to 1.3 billion from 934.2 mln and available seat miles rose 32.2 pct to 2.2 billion from 1.7 billion. Reuter | BRANIFF INC <BAIR.O> MAY TRAFFIC ROSE |
Central Pennsylvania Financial Corp said its earnings for the year ended March 31 have been adjusted downward by 126000 dlrs to 3005000 dlrs. The company said the adjustment is due to todays Federal Home Loan Bank Board announcement that the Federal Savings and Loan Insurance Corp has cancelled the secondary reserve payment from all its members. It said the adjusted net income of 3005000 dlrs or 2.34 dlrs a share compares to the previously reported 3131000 dlrs or 2.44 dlrs a share. Reuter | CENTRAL PENNSYLVANIA <CPSA.O> ADJUSTS RESULTS |
Sweet Victory Inc said its common stock will continue to be listed in Nasdaq via an exception from the capital and surplus requirement. The company said while it failed to meet this requirement as of April 6 1987 it was granted a temporary exception subject to it meeting certain conditions. Reuter | SWEET VICTORY <SVICC.O> CONTINUES ON NASDAQ |
Trustcompany Bancorporation said the company is raising its cash dividend to 1.56 dlrs from 1.20 dlrs a share. The company said the dividend increase was based on a 43 pct increase in net income for 1986 and an additional 42 pct increase in the first quarter of this year. Trustcompany said net income for the first three months of 1987 were 2.84 mln dlrs compared to two mln dlrs over the same period last year. In addition the company said it expects net income this year to rise substantially over 1986 when the company reported earnings of 8.8 mln dlrs or 7.24 dlrs per share. Trustcompany also said it plans to open 13 additional bank branches but did not disclose details. Reuter | TRUSTCOMPANY BANCORP <TCBC.O> UPS QTLY DIVIDEND |
General Electric Co said the Bahrain Amiri Air Force selected its engines to power 12 of its General Dynamics Corp <GD> fighter aircraft. The company did not disclose the price of the engines. The company said Bahrain was the fourth foreign nation to select the engine. The others are the Greek Israeli and Turkish air forces the company said. Reuter | GENERAL ELECTRIC <GE> SELLS ENGINES TO BAHRAIN |
Shawmut Corp said it changed the name of its subsidiary First Gibraltar Mortgage Corp to Shawmut First Mortgage Corp. Reuter | SHAWMUT <SHAS.O> CHANGES NAME OF SUBSIDIARY |
Piedmont Airlines said its total cargo load in April increased 39.5 pct compared to April 1986. Piedmont said in April 1987 it carried a total of 4949369 ton miles of cargo compared to 3546543 ton miles last April. In addition the airline said in the first four months of 1987 total cargo load increased 30 pct to 18.2 mln ton miles from 14.0 mln ton miles over the same period last year. Reuter | PIEDMONT AIRLINES <PIE> REPORTS CARGO RESULTS |
Bristol-Myers Co said it declared a dividend of 35 cts a share on its common reflecting the two-for-one stock split approved at the May five annual meeting of the company. The dividend is payable August one to shareholders of record July three. Reuter | BRISTOL-MYERS CO <BMY> DECLARES DIVIDEND |
CBS/Fox Video Co an equal partnership of CBS Inc <CBS> and 20th Century-Fox Film Corp expects revenues for 1987 to exceed 400 mln dlrs up from 361 mln dlrs last year President James Fifield said in an interview. Despite a leveling out of video recorder sales Fifield sees strong international business for the producer and marketer of prerecorded videocassettes. He also said expansion into non-theatrical products is bolstering results. Fifield was in Chicago to attend the summer Consumer Electronics Show. CBS/Fox Video projects the industry will sell about 116 mln units with a total manufacturers value of 3.3 billion dlrs. Fifield told Reuters his company will introduce at least 20 of our best titles in the fall to accommodate the new Compact Disc-Video system. He also said CBS/Fox will support the new S-VHS or Super VHS high-resolution format with titles to match demand. Reuter | CBS/FOX VIDEO SEES HIGHER 1987 REVENUES |
Daniel Industries Inc said its Measurement and Control Division has been awarded a contract valued at about 7.5 mln dlrs by <SPIE Capag S.A.> for metering and control systerms for 11 stations on the USSR - Turkey Pipeline System Project. Reuter | DANIEL <DAN> UNIT GETS PIPELINE CONTRACT |
Shr 18 cts vs 27 cts Net 283000 vs 435000 Revs 97.8 mln vs 95.1 mln Reuter | INTERMETCO LTD <INT.TO> SIX MTHS APRIL 30 NET |
Standard and Poors said it downgraded 446 mln dlrs of Allegheny International Incs senior debt to CCC from B-minus and subordinated debt to CCC-minus from CCC-plus. Also downgraded to CCC-plus from B was the senior debt of a unit Allegheny Sunbeam Corp. Alleghenys preferred stock was affirmed at C. S and P cited further erosion in the firms flexibility due to a restrictive bank loan agreement and limited debt servicing capability. In spite of restructuring efforts the firm reported first quarter losses of 38.5 mln dlrs. Reuter | S/P DOWNGRADES ALLEGHENY INTL <AG> SENIOR DEBT |
The Federal Reserve Board said it would release April consumer instalment credit figures on Friday. No fixed time was set for the release. Consumer credit fell a seasonally adjusted 63 mln dlrs in March after rising 1.01 billion dlrs in February. Reuter | FED TO RELEASE U.S. APRIL CONSUMER CREDIT JUNE 5 |
After a highly favorable reception of a trial batch of bread baked from 300 lbs of U.S. wheat flour last February the Senegalese appear ready to take delivery of a first tranche of 10500 tonnes of mixed U.S. wheat the U.S. Agriculture Department said. In its report on U.S. Export Markets for U.S. Grain the department noted Senegal had bought 100000 tonnes of wheat under the Export Enhancement Program last November but local opposition from millers accustomed to French wheat has been delaying deliveries. As a result there were a series of baking seminars as well as the trial batch in an effort to satisfy local flour millers and convince key officials of the qualities of U.S. wheat. The department said if deliveries of U.S. wheat to Senegal remain on track the U.S. could dominate a wheat market that had been expected to import 140000 tonnes of mostly French wheat during the 1987/88 (July-June) season. Reuter | U.S. WHEAT IN SENEGAL MARKET -- USDA |
Sears Roebuck and Cos stock was downgraded one notch from a neutral rating said E.F. Hutton analyst Bernard Sosnick. The companys stock closed at 50 off 1-1/4. Sosnick said sluggish sales cloud the economic picture and concern about the outlook for credit income diminish Sears near-term investment prospects. He said the retail sales in May were weak which would mean sales have been below plan for the past two months. Sosnick said indications are that Sears may not be as strong a performer as other retailers. However he said his earnings estimate for the company for 1987 remains unchanged at 4.50 dlrs a share compared to 3.62 dlrs a share in 1986. He added that as a result of weakening sales momentum we have less confidence in that estimate. The analyst said it projects second quarter earnings in the 1.05 to 1.10 dlrs a share range up from 77 cts a year ago. The 1987 estimate includes an 18 ct a share gain from the sale of 50 savings bank branches and strong earnings contribution from Allstate Insurance. Reuter | SEARS <S> DOWNGRADED BY E.F. HUTTON |
Paul Volckers departure as Federal Reserve Board chairman came despite pleas from the Reagan administration that he stay at the helm of the U.S. central bank U.S. officials said. The President made it very clear that he would be very very pleased had the chairmans decision been otherwise Treasury Secretary James Baker said. A Reagan administration official who asked not to be identified said Baker too had urged Volcker repeatedly in the past several months to consider staying on as chairman. But there were no indications the administration had told Volcker that it was in the national interest for him to stay and that current global economic uncertainties required it. Associates of Volcker have assumed Volcker would only have stayed on in such circumstances. He doesnt care a lot emotionally about a third term Nikko Securities vice-chairman Stephen Alixrod until last year a top Fed staffer told Reuters recently. Officials are confident that newly-nominated chairman Alan Greenspan will re-establish close working relations with Baker and his credentials eventually will calm markets. One Reagan administration economic policymaker who asked not to be named pointed out that Baker and Greenspan worked together closely in the Ford administration. At the time Baker was acting Secretary of Commerce and Greenspan headed the Presidents Council of Economic Advisers. Reagan administration officials made clear meanwhile that the announcement precipitated by Volckers unshakeable decision to quit came in order to clear up uncertainty ahead of the Summit of leading industrial democracies in Venice. President Reagan might have been in an embarrassing position if no decision had been made by then. Volcker enjoys the respect of most top economic officials abroad and is admired at the West German Bundesbank and in Tokyo despite his criticism of Japanese policies. Financial markets possibly reflecting some of the disappointment in foreign capitals drove the dollar sharply lower on news of his departure prompting central bank intervention to stem the fall dealers said. Finance Ministries and central banks of the other summit nations -- Japan West Germany Britain France Italy and Canada -- were informed shortly before the news was announced Baker told reporters today. Monetary sources also said one reason Volcker decided to resign was his personal financial situation and his marriage -- his wife lives in New York and did not want him to take up a second term in mid-1983. Volcker has foregone potentially million-dollar salaries to a life almost overwhelmingly devoted to public service at pay rates low relative to his financial commitments. Both these reasons at one time prompted him to consider stepping down before his second term was completed. But Volcker also hinted there might be more than personal reasons for his decision. It was a personal decision taking account of a lot of things including purely personal considerations and others he told reporters. Fed sources note Volckers considerable unease at the lack of progress by the administration in reaching a budget deficit reduction agreement. In addition Volcker would have faced four more years with a Board that he was less than comfortable with monetary sources say. The other five members are Reagan appointees. What may unsettle markets however is the fact that the Fed governors now have only six to seven years collective experience between them at a time of great financial uncertainty. Analysts said that while Greenspan might well be considered as tough an inflation-fighter as Volcker his Republican credentials could make him more of a political Fed chairman than Volcker. An administration official said Volcker was consulted on Greenspan and very much approved of his replacement. But one analyst compared Greenspans relationship to the administration to whom he has been an unofficial economic adviser with the relationship former chairman Arthur Burns had with the Nixon administration. Burns was somewhat more sympathetic to the administration viewpoint than Volcker has been and Burns was less willing to make radical policy changes. Making clear his decision was a strong one Volcker told reporters I told (Reagan) with considerable definitiveness yesterday. Administration officials said Volcker arrived at the White House yesterday afternoon with his resignation. When renominated in mid-1983 Volcker said he would probably step down within two years. Monetary sources said the departure of Donald Regan as Treasury Secretary was one factor that convinced him to stay on. Regan and Volcker clashed almost from the start of the administration. Another these sources said was the prospect of being able to work with Baker as Treasury Secretary to tackle the international debt crisis and deal with the then high-flying dollar. Reuter | VOLCKER LEAVING DESPITE REAGAN REQUESTS TO STAY |
A University of Massachusetts finance professor said he raised his stake in Banc Texas Group Inc to 45340 shares of 1.4625 dlr cumulative preferred stock or 7.4 pct of the total from 30300 shares or 5.0 pct. In a filing with the Securities and Exchange Commission Ben Shirley Branch also said he bought 52025 shares of Class A cumulative convertible preferred stock or 5.9 pct of the total for 160000 dlrs bringing his total investment in both preferred series to about 330000 dlrs. Branch said he bought the stock as an investment but reserved the right to try to influence the company. Reuter | PROFESSOR LIFTS BANC TEXAS <BTX> PREFERRED STAKE |
H.F. Ahmanson and Co said second quarter earnings will include the write-off of the companys 24 mln dlr investment in the Federal Savings and Loans Insurance Corporation. The company also said it will postpone planned second quarter sales of up to one billion dlrs of adjustable rate mortgage-backed securities because secondary market premiums have temporarily contracted. It said the write-off will reduce net earnings for the quarter and year by about 13 cents per share and the postponement of securities sales will defer about 30 cts per share of profits to subsequent quarters. The company said the write-off of the FSLIC asset was prompted by a recent General Accounting Office report that declared the FSLIC technically insolvent. The company said it also received a letter from the FSLIC informing Ahmanson that it will not honor its long-standing obligation to Ahmansons Home Savings of America unit as well as to hundreds of other thrifts. The company said the letter stated that Ahmansons investment should be written off in May. The company reported second quarter net income last year of 76.6 mln dlrs or 80 cts per share. Ahmanson reported 1986 net income of 303.6 mln dlrs or 3.22 dlrs per share. Reuter | AHMANSON <AHM> TO TAKE 2ND QTR WRITEOFF |
With more private investment not more protection the U.S. textile industry could become competitive with the most modern foreign producers analysts from two congressional agencies said today. The Office of Technology Assessment a nonpartisan arm of Congress told a House Ways and Means Trade Subcommittee hearing there was still concern for the future of parts of the U.S. textile and apparel industry but there was more reason for optimism than a few years ago. While textile producers are making significant investments they could do more OTA analyst Henry Kelly said. The Congressional Budget Office (CBO) the nonpartisan budget analysis arm of Congress said federal loans or loan guarantees would be preferable options for Congress rather than increased trade protection which could lead to foreign retaliation. CBO analyst Edward Gramlich said past trade protections first imposed in the 1950s have had only a small benefit for profits and investments of domestic firms. Trade Subcommittee chairman Rep. Sam Gibbons said the agencies analyses seemed to agree with his opinion against congressional approval of protectionist textile quota legislation aimed mainly at Western Europe Japan and other Asian textile producing countries. President Reagan last year vetoed a textile protection bill but it was reintroduced in this session of Congress and is expected to be voted on in the House this year. However approval this year is in doubt because passage of a major trade bill without specific protections for textiles showed a weakening of support for the legislation. Most U.S. producers have fallen behind other foreign producers in the use of modern textile and apparel production equipment and net imports are growing faster than the domestic markets Kelly said. He added that private investment in the textile and clothing industry in 1983 of 0.5 pct was less than one-seventh the average manufacturing investment of 3.9 pct. Despite existing import quotas and tariffs imports of textiles grew 26 pct in 1986 and imports of apparel grew 14 pct while U.S. production rose only 1.9 pct. The traditional industry seems destined to be replaced by new technology imports or some combination of both. While the industry may not be able to compete in all domestic markets that it enjoyed twenty years ago the results of our research indicate that portions of the domestic market can be recovered and that exports can be expanded Kelly said. Reuter | INVESTMENT CRUCIAL TO U.S. TEXTILE RECOVERY |
Shr two cts vs n.a. Net 68281 Revs 639471 NOTE: Company became public in March 1987 Reuter | <IONE INC> SIX MONTHS MARCH 31 NET |
Qtly div one cts vs one cts prior Payable July 1 Record June 10 Reuter | FGIC CORP <FGC> QTLY DIVIDEND |
Drillers Inc of Florida a unit of <DI Industries Inc> formerly Drillers Inc <DRL> said it has received two separate contracts for water injection projects valued at 408500 dlrs and 850000 dlrs respectively. DI Industries said another unit Drillers Inc of Texas completed a 560000-dlr Department of Defense project which involved drilling a vertical firing shaft for the departments R and D Railgun. DI said the projects represented efforts of the company to diversify from its traditional oil and gas drilling contracts. Reuter | DI INDUSTRIES FLORIDA UNIT GETS WATER CONTRACT |
Widespread soaking rains aided crop development across the province with the northwest crop producing region receiving the most precipitation according to the Manitoba Agriculture weekly crop report. The rains replenished formerly low soil moisture reserves with reserves in all areas now rated good the report said. Plantings were virtually complete across the province and germination was well advanced. However some fields still showed spotty stands. Cereal crops in the southwest were 90 pct germinated with some fields already in the subsequent tillering stage it said. Oilseeds in the northwest region were about 80 pct emerged in many areas with other regions 50 to 70 pct emerged. Reuter | RAINS AID MANITOBA CROPS DURING WEEK |
Period ended March 31 Shr loss nil vs profit one ct Net loss 36000 vs profit 310000 Revs 1172000 vs 1686000 Note: Full name Atlas Yellowknife Resources Ltd. Reuter | ATLAS YELLOWKNIFE <AY.TO> SIX MTHS LOSS |
Shr loss 32 cts vs loss 37 cts Net loss 5374000 vs loss 6159000 Revs 241.3 mln vs 253.2 mln Reuter | WOODWARD'S LTD <WDSA.TO> 1ST QTR MAY 2 LOSS |
Qtr ended April 30. Shr 32 cts vs 20 cts Net 1982000 vs 1022000 Year Shr 1.22 dlrs vs 59 cts Net 7005000 vs 3030000 Assets 191.3 mln vs 116.5 mln Reuter | COMMONWEALTH MORTGAGE CO INC <CCMC.O> 4TH QTR |
Central Maine Power Co said it issued a request for proposals for about 150 project sponsors of cogeneration and small power production projects. The utility said it is soliciting proposals to fill about 100 megawatts of commitments to the Maine Public Utilities Commission. The avoided costs which will be paid for power produced by these projects will be based on costs negotiated between Central Maine and Hydro-Quebec for planned power purchases beginning in 1992. Reuter | CENTRAL MAINE <CTP> SEEKS COGENERATOR SPONSORS |
API SAYS DISTILLATE STOCKS UP 2.85 MLN BBLS, GASOLINE OFF 2.37 MLN, CRUDE OFF 1.13 MLN |
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President Reagan is to nominate Kenneth Rogers president of the Stevens Institute of Technology to be a member of the Nuclear Regulatory Commission the White House said. Rogers 58 would succeed James Asseltine for a five-year term expiring June 30 1992. He has has been president of the Stevens Institute in Hoboken N.J. since 1972. He was previously acting provost and dean of faculty. Reuter | REAGAN NAMES ROGERS TO NUCLEAR AGENCY |
Continental Associates a group of four shareholders who hold about 5.02 pct of of Continental Materials Corp stock said it will not pursue a tender offer for all of its shares. The shareholders said they were told that Continental Materials directors had no interest in selling the company. Late yesterday Continental Materials board said it decided not to give further consideration to a business combination proposed by the group of St. Louis businessmen. Reuter | STOCKHOLDERS WON'T PURSUE CONTINENTAL <CUO> BID |
Bell Atlantic Mobile Systems said it filed with the New York Public Service Commission proposed retail rates to market mobile telephone services in the metropolitan New York City area. The company expects the rates to go into effect July 1 after a 60-day statutory period pending regulatory approval. It said the approved price structure is the last regulatory step before the company begins marketing cellular service and equipment in northern New Jersey. Reuter | BELL ATLANTIC <BEL> FILES FOR NEW YORK SERVICE |
A House Banking subcommittee approved a bill authorizing U.S. contributions to the International Development Association the Asian Development Fund and the Afrian Development Bank. The bill authorizes 2.875 billion dlrs as the U.S. contribution to the eighth replenishment of the International Development Association 584.3 mln dlrs to the Asian Development Fund and 719.5 mln dlrs to buy 59648 shares of the capital stock of the African Development Bank. The bill which now goes to the full Banking Committee includes an amendment opposing U.S. approval of development bank loans for commodities in surplus in the world and which are intended for export. Reuter | U.S SUBCOMMITTEE APPROVES DEVELOPMENT BANK FUNDS |
The Bank of Canada the countrys central bank believes economist Alan Greenspan was a sound choice to replace retiring U.S. Federal Reserve Chairman Paul Volcker a spokesman for the bank said. Mr. Greenspan is well known to the bank. Hes had a lot of experience. Hes very capable and with Mr. Volckers decision not to seek reappointment hes a sound choice said Roy Flett associate secretary for the bank. Flett said the Bank of Canada has enjoyed an excellent relationship with Mr. Volcker during his terms and has only the greatest respect for his performance. Economists said the appointment was extremely important to Canada because the countrys monetary policy is closely linked with that of the U.S. Basically we have chosen ... to march in lockstep with U.S. monetary policy so really in some sense this is our central banker that has just been appointed as well said Mike McCracken head of Infometrica Ltd. Reuter | BANK OF CANADA WELCOMES GREENSPAN APPOINTMENT |
Phelps Dodge Corp chairman G. Robert Durham said the company is prepared to make another large non-copper acquisition and that a deal could be struck in the near future. In an interview with Reuters Durham said the company was examining potential candidates but not yet talking with any. He declined to name the companies but said a deal could occur as soon as the second half of 1987. Phelps Dodge which ranks as the largest copper producer in the U.S. last year paid 240 mln dlrs for Columbian Chemicals Co a maker of carbon black which is used in rubber and tires among other products. The purchase was part of a strategic plan to diversify and eventually match earnings from non-copper operations and copper operations. Phelps Dodge could spend between 250 mln and 500 mln dlrs to buy another non-copper company Durham said citing about 100 mln dlrs of cash and 580 mln dlrs of untapped bank credit. Any acquisition candidate would have to have a different economic cycle than copper substantial earnings and good management he said. Phelps Dodge would only want a friendly deal he added. Were not talking high-tech or financial services or about a perfume company he said. We want a good basic industrial company that will fit into our management structure Durham said. During the interview Durham and other executives also said continued strong demand and tight copper supply should lead to higher prices for the metal. In my view its not a matter of if but when the price (for copper) will improve because there arent that many new projects coming on and demand short of a major recession will continue to grow modestly said executive vice president Douglas Yearley. Phelps Dodge continues to lower its cost of producing copper the executives said. Costs should be below 50 cents a pound after depreciation but before interest and corporate expense by 1989 or 1990. Production costs are about 56 to 57 cents a pound now compared to one dlr a pound in 1981 some Wall St analysts said. Durham said copper supplies are lower than they have been for almost 20 years and demand continued to be strong. He declined to project results for the second quarter or year. But he said the quarter was going well and the rise in copper prices in the last month will help results. Durham said last month that the second quarter should match the first quarter when earnings rose about 11 pct to 16.8 mln dlrs or 49 cts a share. First quarter sales rose 61.5 pct to 372.9 mln dlrs reflecting the acquisition of Columbian Chemicals and increased copper shipments from the Chino copper mine in New Mexico also acquired last year. Analysts are projecting 1987 earnings of 2.20 dlrs to 2.75 dlrs a share up sharply from 1.79 dlrs in 1986. Reuter | PHELPS DODGE <PD> SETS SIGHTS ON ACQUISITION |
Hoffman-LaRoche Inc said Eli Lilly and Co Inc will pay it royalties on the sale of Lillys human growth hormone Humatrope as part of an earlier-reported licensing agreement between the companies. Hoffman-La Roche spokesman John Doorley declined to disclose the amount of the royalty payments. Lilly has taken the position of respecting our patent by paying us roylaties said Doorley. We are hopeful that other companies will respect that position he said. Roche is the licensee of a Hormone Research Foundation patent for a synthetic version of human growth hormone. Last September Roche and the Foundation sued Genetech Inc <GENE> alleging Genetechs product Protropin a human growth hormone infringed on Hoffmans patent for the hormone. Last year Genetechs sales of Protropin were about 35 mln dlrs. David Saks drug analyst with Morgan Olmstead Kennedy and Gardner in New York said Genetechs and Lillys product can each bring in about 50 mln dlrs in sales annually. Other companies developing human growth hormone include Biotechnology General Corp. Roches Doorley said the company had at one time started developing a growth hormone but decided to put its efforts into other products. Reuter | LILLY <LLY> TO PAY ROCHE ROYALTIES ON HUMATROPE |
MERCANTILE BANCORP SEES 2ND QTR LOSS OF 33 MLN DLRS, YEAR PROFIT OF TWO MLN |
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Shr 87 cts vs 87 cts prior Pay August 14 Record July 20 Reuter | PACIFIC LIGHTING CORP <PLT> SETS QTLY DIV |
The Treasury Department said it would release data on U.S. reserve assets on a monthly basis from now on instead of quarterly. Reserve assets are held in gold special drawing rights with the Internatinal Monetary Fund foreign currencies and in a U.S. reserve position in the IMF. Assets totaled 46.59 billion dlrs at the end of April compared with 48.82 billion dlrs at the end of March the Treasury said. Reuter | TREASURY TO PUBLISH U.S. RESERVE ASSETS MONTHLY |
Shr four cts vs four cts prior Pay August 5 Record July 15 Reuter | ALASKA AIR GROUP INC <ALK> SETS QTLY DIV |
Mexico has no intention of leaving the International Coffee Organization (ICO) in the event of Brazil withdrawing from the group the Mexican Coffee Institute (IMC) said. The IMC said in a statement the ICO is an important instrument for ensuring producers obtain an adequate price. Mexico currently produces around five mln 60-kilo bags of coffee per year. Brazil said during a meeting of coffee producers in Rio de Janeiro over the weekend that it would consider leaving the ICO if its export quota was reduced by the organization. Reuter | MEXICO HAS NO PLANS TO LEAVE ICO |
Mercantile Bancorp Inc said it will add a special provision of 75 mln dlrs to its reserve for possible loan losses in the second quarter and expects to report a loss of 33 mln dlrs during the period. The company estimated it will report net income of two mln dlrs during the full year 1987. Mercantile Bancorp said the additional provision represents 28.5 pct of Mercantile Bancorps 263 mln dlrs in total outstanding loans to Latin American countries. The special provision will raise the reserve to 148 mln dlrs or 3.1 pct of the companys 4.7 billion dlrs total loans. Mercantile Bancorp earned 19.5 mln dlrs in last years second quarter or 1.23 dlrs a share and 55.6 mln dlrs or 3.50 dlrs a share for the full year 1986. Mercantile Bancorps reaffirmed its intention to continue the present dividend and to follow its normal policy of basing future dividends on anticipated earnings from ongoing business. It now appears the adjustment process for heavily indebted countries could stretch into the 1990s and these restructurings may have negative economic effects on the loan portfolio Mercantile Bancorp said. Reuter | MERCANTILE <MTRC.O> RAISES RESERVE, SEES LOSS |
Amoco Corps wholly owned Amoco Canada Petroleum Co Ltd said its proposed 5.22-billion- Canadian-dlr acquisition of Dome Petroleum Ltd will benefit Canada just like the foreign investment that made possible commercial development of Albertas oilsands. Amoco Canada president T. Don Stacy told an oilsands conference that Amoco Canada has presented the solution to the Dome problem and were investing our confidence dollars and determination to make that solution work. The Amoco buyout of debt-burdened Dome has angered Canadian nationalists who want a Canadian buyer for Dome. Stacy described Amoco Canadas previously reported share offer proposal as a chance to increase Canadian ownership of the countrys oil and gas industry now at about 50 pct. He reiterated that Amoco planned virtually no layoffs of Dome employees. He also reaffirmed that Amoco would reinvest in Amoco Canada-Dome properties all available cash flow for five years after the acquisition. Reuter | AMOCO <AN> SAYS DOME <DMP> BUY GOOD FOR CANADA |
Opr shr nil vs seven cts Opr net 3000 vs 99000 Revs 2745000 vs 2395000 Avg shrs 1500000 vs 1375000 Year Opr shr 24 cts vs 20 cts Opr net 343000 vs 271000 Revs 10.7 mln vs 8232000 Avg shrs 1459000 vs 1341000 NOTE: Earnings for year exclude gains due to tax loss carryforward of 210000 dlrs or 14 cts a share in 1987 and 198000 dlrs or 15 cts in 1986. Reuter | MINNTECH CORP <MNTX.O> 4TH QTR MAR 31 NET |
TCBY Enterprises Inc said it will apply to the Securities and Exchange Commission to withdraw its registration statement filed May 14 for 30 mln dlrs of subordinated convertible debentures due to unfavorable market conditions. THe company said other forms of financing available to the company and working capital are more than sufficient to fund the uses for which the proceeds of the debentures offering were to be applied. Reuter | TCBY <TCBY.O> WITHDRAWS REGISTRATION |
The U.S. House of Representatives approved a bill that requires the Reagan administration to provide Congress with a report on its Gulf policy but does not place any restrictions on its actions. The bill passed 305-102 -- winning a necessary two-thirds of those voting -- despite a last-minute revolt by an alliance of liberal Democrats and conservative Republicans who sought to defeat it as a signal that a growing number of legislators oppose President Reagans policies in the region. The legislation was passed in the wake of the May 17th Iraqi missile attack on the U.S. frigate Stark in the Gulf which killed 37 Americans and Reagans decision to protect 11 Kuwaiti oil tankers by putting them under U.S. flags -- effectively making them American ships. The legislation -- supported by Congress Democratic and Republican leadership as well as by the administration -- required Defense Secretary Caspar Weinberger to provide a report to Congress within seven days of enactment on plans to protect U.S. warships and flag ships in the Persian Gulf. It did not however place any restrictions on the administration as it proceeds to reflag the Kuwaiti ships and thus has no immediate effect on U.S. policy. The Senate was expected to approve the legislation this week. The bill would then be sent to Reagan for signature. Supporters of the bill said passage of the bill was only a first step toward a greater congressional involvement in formulating policy. But Democratic critics said the bill did not ask the administration to address tough policy questions in the report. Reuter | U.S. HOUSE PASSES GULF BILL DESPITE OPPOSITION |
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