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ITT Corp said its long distance unit is offering WATS telephone service for its customers. The service is designed for customers with more than 500 dlrs in monthly telephone bills the company said. The company said customers will save up to 15 pct over a similar service offered by American Telephone and Telegraph Co <T>. ITT is also waiving the 50 dlr per line installation fee for new or existing subscribers through March 31. Reuter | ITT <ITT> OFFERS LONG DISTANCE WATS SERVICE |
Net 38 mln vs 5.7 mln Revs 1.71 billion vs 1.69 billion NOTE: Fully owned subsidiary of Hoechst AG. Reuter | <AMERICAN HOECHST CORP> YEAR NET |
News Corps Fox Television Stations said it will redeem 230000 shares of increasing rate exchangeable guaranteed preferred stock from holders of record on April 1. Fox said the offer represents 50 pct of preferred shares currently outstanding. The preferred stock will be redemmed for 1000 dlrs per share plus an accrued dividend of 5.83 dlrs per share the company said. On completion of the redemption 230000 shares of preferred stock will remain outstanding the company said. Reuter | NEWS CORP <NWS> UNIT TO OFFER STOCK REDEMPTION |
The Federal Reserve is expected to intervene in the government securities market to add reserves via two to 2.5 billion dlrs of customer repurchase agreements economists said. Economists said the Fed will inject temporary reserves indirectly to offset pressure on the Federal funds rate associated with quarterly corporate tax payments to the Treasury department. Fed funds opened at 6-1/4 pct and remained at that level late this morning. Friday funds averaged 6.05 pct. Reuter | FED EXPECTED TO SET CUSTOMER REPURCHASES |
Congressional investigators of the Iran-contra scandal have tentatively agreed to grant immunity from prosecution to a star witness --President Reagans former national security adviser John Poindexter congressional sources said today. Sources told Reuters the chief counsels of the two special committees probing the two-year episode that has darkened the White House image plan to take their preliminary accord to court-appointed special prosecutor Lawrence Walsh possibly today or tomorrow. The tentative accord follows weeks of negotiating with Walsh and with committee members. Poindexter would be the highest ranking official to be granted immunity in the investigations of the 1985-1986 arms sales to Iran to gain release of hostages held in Lebanon and the clandestine shifting of arms profits to arm U.S.-backed rebels in Nicaragua at a time aid would have been illegal. If the agreement --reached on Friday by Arthur Liman and John Nields chief legal advisors of the Senate and House committees respectively --is ratified as expected by Walsh and the full committees closed door interviews could be held with Poindexter in two months with public testimony in about 90 days or mid June sources said. They have tentatively reached an agreement and are supposed to meet with Walsh or his deputies a source told Reuters of the deliberations by the two chief counsels Sources said Poindexter could assist investigators determine what Reagan knew about the diversion of funds from arms sales to Iran to rebels in Nicaragua if anything. Reagan has denied knowing about the shift of funds although he has admitted he gave orders to sell arms through Israel in either August or after the first shipment in September 1985 but cant remember when. Congress was kept in the dark about the affair until last autumn. He will be a credible witness one source said of the pipe-smoking Poindexter. Besides Reagans knowledge or lack of it another key unanswered questions lingering from earlier congressional investigators and a special presidential review board is who received millions of dollars from clandestine arms profits. So far the money trail uncovered by probers stops at secret Swiss and Cayman Islands bank accounts. The committees have been privately negotiating with Walsh over the immunity matter and the prosecutor also called an independent counsel has been urging the committees to hold off on their request for at least 90 days. Under the tentative accord the wishes of Walsh could be met since public testimony is not expected before 90 days. Poindexter a Navy vice admiral along with his fired deputy at the National Security Council Marine Lt. Col. Oliver North have refused to testify before investigators claiming their fifth amendment rights against self incrimination. Yesterday Vice President George Bush said in a a television interview that he disagreed with Maureen about court martials but he too disclaimed any details of diverted funds. So far granting immunity to compel testimony from reluctant witnesses has been granted to five persons--with the key figure so far shadowy California international arms merchant Albert Hakim. Also getting immunity has been Norths attractive personal secretary Fawn Hall who was said to have assisted North in shredding documents in his White House basement office after the scandal broke. Reuter | IRAN PROBERS AGREE ON IMMUNITY FOR POINDEXTER |
U.S. Video Vending Corp said it may have to file for protection under bankruptcy laws if <Hill International Inc> does not grant U.S. Videos request not to call a loan due. The company said it has asked Hill for forebearance over the weekend and again this morning and if its request is not granted it expects to make the bankruptcy filing today. U.S. Video also said it has reached a preliminary agreement to acquire Texas Automatic Sprinkler Corp from Mills-Jennings Co <JKPT> for an undisclosed amount of stock subject to approval by U.S. Video shareholders and Hill agreeing not to call the loan by 1100 EST today. Texas Sprinkler had sales of about 15 mln dlrs for the year ended November 30. Reuter | U.S. VIDEO VENDING <VVCO> MAY FILE BANKRUPTCY |
Oper shr 42 cts vs 11 cts Oper net 1433000 vs 382000 Revs 38.6 mln vs 20.1 mln Year Oper shr 60 cts vs 49 cts Oper net 2033000 vs 1682000 Revs 90.4 mln vs 73.0 mln NOTE: 1985 4th qtr and year excludes extraordinary credit of 349000 dlrs or 11 cts per share. Reuter | LEVITT CORP <LVT> 4TH QTR NET |
U.S. Trade Representative Clayton Yeutter said the Export Enhancement Program EEP should be used as a tactical tool and not as a general policy. Yeutter made the comment in response to a question whether the U.S. should expand the EEP to cover grain sales to the Soviet Union. He did not comment directly on the Soviet question replying that any decision would be made at the highest levels of the Reagan administration and I dont want to preempt that. Yeutter told the National Grain and Feed Association EEP should continue to be used as a tactical tool against the European Community but not as a general policy. He said selective EEP use has been successful in pressuring the E.C. Reuter | EEP SHOULD BE USED TACTICALLY, YEUTTER SAYS |
National Pizza Co said the seven Straw Hat Piza restaurants in Los Angeles and Bakersfield Calif. that it announced plans to buy Friday are expected to generate annual sales of about 3800000 dlrs not the eight mln dlrs the company originally announced. The company said it will convert the restaurants to Pizza Hut units. Closing is expected around March 31. Reuter | NATIONAL PIZZA <PIZA> CORRECTS FIGURE |
Net profit 34 mln dlrs vs 43 mln dlrs. Turnover 1.82 billion dlrs vs 1.83 billion. NOTE: Company lowered to nine pct from 13.5 pct interest rate on outstanding subordinated loan for period august 1 1987 to July 31 1988. TBG formerly known as <Thyssen-Bornemisza Group> reports in dlrs since December 1 1984 the start of the 1985 financial year. TBG said the decline in profits was mainly caused by losses in container rental activities. Reuter | TBG HOLDINGS N.V. <TGBN.AS> 1986 YEAR NET |
<AVAQ International Inc> said it intends to require Gates Learjet Corp <GLJ> to honor its agreement to sell its shares to the company. AVAQ said it made the statement in response to an offer by <Interconnect Capital Corp> for all of Gates Learjet shares after what it believed to be an agreement by Gates to accept its offer. AVAQ said it offered pusuant to Gates guidelines six dlrs per share plus the purchase of Gates Corps promisary note for 23 mln dlrs. Interconnect said it offered 7.07 dlrs per share plus the repurchase of the loan for 13 mlns for an aggregate price in the 95 mln dlr range. Interconnect said it made the offer to the board of directors of Gates Learjet on March 9. AVAQ said Gates Corp and Gates Learjet approved its offer Feb 26. Reuter | AVAQ INTERNATIONAL TO SEEK COMMITMENT ON DEAL |
The Bank of Spain is relaxing exchange controls to help put Spanish banks on an equal footing with European Community competitors by the 1993 deadline for the ending of restrictions a central bank spokesman said. The measures to take effect by June were designed to lift restrictions on foreign currency operations in line with deregulation in the banking industry he said in a telephone interview. The spokesman said the relaxation of exchange controls highlighted a broader package of reforms announced last Friday. The central bank said in a statement the measures included increased provisions for high-risk borrowers and a provision for future pension fund obligations. It said the measures were the latest steps to deregulate Spains financial sector a move triggered by entry into the Community last year. Spain has five years to complete bank deregulation a process that began in 1978 when the government allowed foreign banks to open branches. Since then 39 foreign banks have come into the market and they now control about 15 pct of the systems lending assets. Residents in Spain can now borrow freely in foreign currency up to the equivalent of 1.5 billion pesetas against a previous ceiling of 750 mln pesetas. The 750 mln peseta limit was set last March. Between that date and the end of last year some 430 mln dlrs flowed into the country on new foreign currency loans. The central bank spokesman said operations over 1.5 billion pesetas were technically subject to authorisation but would be given clearance if the government failed to act in 15 days. Spanish banks will also be allowed to expand their foreign currency funding formerly obtainable through deposits by issuing certificates of deposit bonds and commercial paper. They can also employ these funds to invest in foreign issues while before they had to be converted into deposits. Foreign exchange operations can be in mixed currencies instead of having to borrow and lend in the same currency. The central bank has also lifted the restriction on the amount of foreign exchange loans which previously were limited to three times a banks capital equity. The latest deregulation measures were welcomed by most bankers in contrast to rulings issued earlier this month which imposed a 19 pct reserve requirement on new convertible peseta funds held by banks and freed short term deposit rates. The reserve requirement which was already in place on normal peseta deposits was intended to curb short-term foreign speculative capital which is entering the country and threatening the governments money supply growth target. A foreign banker said high reserve requirements which now account for about 30 pct of deposits placed Spanish banks at a disadvantage with European competitors. The government reduced fixed asset investment requirements to 11 pct from 23 pct to help offset the negative impact of interest rate deregulation. The real problem is the freeing of interest rates the banker said. This is going to take a big bite out of profits. The ruling lifted a six pct ceiling on interest rates paid on deposits of up to 180 days. The chairman of one of Spains leading banks said the measure was expected to bring a 20 pct drop in profits this year. REUTER | SPAIN TO RELAX EXCHANGE CONTROLS |
Ryan Homes Inc controled by NV Homes LP <NVH> said it has called for redemption on April 30 all 873000 dlrs of its six pct convertible subordinated debentures due 1991 at 1000 dlrs pluys 19.83 dlrs in accrued interest per 1000 dlrs principal amount. The debentures are convertible through April 28 into Ryan common stock at 30.50 dlrs per share. Reuter | RYAN HOMES <RYN> CALLS DEBENTURES |
Qtly div 20 cts vs 16 cts prior Pay April 24 Record April 10 Reuter | STANDARD PRODUCTS CO <STD> RAISES QUARTERLY |
Jan 31 end Shr 31 cts vs 44 cts Net 5705000 vs 8101000 Revs 50.6 mln vs 67.2 mln 1st half Shr 63 cts vs 71 cts Net 11.6 mln vs 13.2 mln Revs 80.9 mln vs 105.2 mln NOTE: Current half net includes 750000 dlr charge from reorganization. Reuter | AARON SPELLING PRODUCTIONS INC <SP> 2ND QTR NET |
Period ended January 31. Shr loss 22 cts vs profit one ct Net loss 4700000 vs profit 150000 Sales 15.0 mln vs 16.7 mln Avg shrs 21538000 vs 19259000 Note: Prior qtr figures include gain of 1.1 mln dlrs or six cts per share from discontinued operations. Reuter | COOPER LASERSONICS INC <ZAPS> 1ST QTR LOSS |
Period ended Jan 31 Oper shr two cts vs eight cts Oper net 96000 vs 449000 Sales 37.6 mln vs 35.8 mln Avg shrs 5317900 vs 5689277 NOTE: Full name is Diversified Industries Inc Earnings exclude gains from utilization of tax loss carryforwards of 62000 dlrs or one ct a share vs 358000 dlrs or six cts a share Reuter | DIVERSIFIED INDUSTRIES <DEI> 1ST QTR OPER NET |
S/P DOWNGRADES DENMARK'S 17.6 BILLION U.S. DLRS OF LONG-TERM EXTERNAL DEBT |
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The city of Amsterdam launched a 300 mln guilder commercial paper program in the Dutch market lead manager Amsterdam-Rotterdam Bank NV said. The issue has denominations of one mln guilders and maturities ranging from two weeks to one year. Clearing and delivery is through the facilities of the Dutch central bank. Amsterdam is the third Dutch municipality to use a commercial paper program as credit facility. The Hague and Rotterdam preceded with programs arranged by Algemene Bank Nederland NV <ABNN.AS>. Details of the first tranche of the program are still unknown. At the moment commercial paper is a cheaper form of credit than the traditional kasgeldleningen said Amsterdams financial alderman Walter Etty after signing the contract. Current regulations allowed the city to acquire only half of its short term borrowing requirement with CPs he added. Kasgeldleningen or short term advances are a widely used instrument in the Dutch market which has faced competition from CPs since the Finance Ministry approved them in January 1986. CPs and CDs are currently slightly cheaper than traditional credit lines for promotional reasons Amro board member Dick Meys told journalists at the signing ceremony. Despite the lower cost to borrowers the Dutch market for commercial paper and certificates of deposits is growing only slowly in the face of the well-developed kasgeld market and institutional investors have hardly discovered this instrument Meys said. Foreign interest in guilder CPs and CDs is almost non-existent due to the strong position of the guilder but Amros London-based subsidiary EBC Amro Bank Ltd joined the syndicate in case such interest emerges Meys said. REUTER | AMSTERDAM LAUNCHES 300 MLN GUILDER CP PROGRAM |
 161125******S/P DOWNGRADES DENMARKS 17.6 BILLION U.S. DLRS OF LONG-TERM EXTERNAL DEBT  | |
Hoechst AGs <HFAG.F> U.S. unit Hoechst Celanese Corp said it has begun projects that will cost more than 150 mln dlrs. The unit was formed last month when Hoechst completed the acquisition of Celanese for 2.84 billion dlrs. The company said it will expand its Sanwet super absorbent polymers unit and its acrylic acid facility. It also said it plans an acetaminophen production plant at Bishop Texas. Reuter | HOECHST CELANESE SETS EXPANSION PROGRAM |
Oper shr loss 20 cts vs loss 19 cts Oper net loss 7001000 vs loss 6761000 Revs 93.0 mln vs 90.6 mln Avg shrs 35.2 mln vs 34.8 mln Year Oper shr profit 10 cts vs profit 65 cts Oper net profit 3419000 vs profit 22.6 mln Revs 381.7 mln vs 385.0 mln Avg shrs 33.8 mln vs 34.9 mln NOTE: Net excludes debt retirement gain 2001000 dlrs vs loss 316000 dlrs in quarter and losses 15.9 mln dlrs vs 1714000 dlrs in year. 1986 net includes tax crdits of 2942000 dlrs in quarter and 2729000 dlrs in year. Reuter | GOLDEN NUGGET INC <GNG> 4TH QTR LOSS |
Oppenheimer Industries Inc said it expects to report a loss for the year ended January 31 of about 980000 dlrs compared with a profit of 211074 dlrs a year before. The company blamed the loss on the continuing depression in agriculture the discontinuance of several programs due to the passage if the 1986 tax bill and the failure to close the sale of four ranches in the California Carrizo Plains during the year as expected. The company said the prospective purchaser forfieted a 500000 dlr deposit It said it is in talks on a new contract. Reuter | OPPENHEIMER INDUSTRIES <OPP> SEES YEAR LOSS |
Banque Francaise du Commerce Exterieur is issuing a three billion franc 8.50 pct 11 years and 302 days domestic bond with warrants at an issue price of 96.42 pct lead manager Banque Nationale de Paris said. The 600000 bonds of a nominal 5000 francs are identical to those of the BFCE five billion franc 8.50 pct January 1987 issue bringing the total of the issue to eight billion francs. Interest will be paid for the first time on February 2 1988 and on the same date of each subsequent year. Redemption will be in three tranches on February 2 1997 1998 and 1999. Each bond will carry a warrant and two warrants will give the right to subscribe to an 8.50 pct nominal bond between December 22 1987 and January 22 1988. The exercise price of the subscription warrants will be 99 pct. BNP said that if all the warrants were utilised the total of the January 1987 issue would rise to 8.5 billion francs. REUTER | BFCE ISSUES THREE BILLION FRANC DOMESTIC BOND |
Standard and Poors Corp said it downgraded to AA from AA-plus the Kingdom of Denmarks long-term external debt. The action affects the equivalent of 17.6 billion U.S. dlrs of debt. S and P cited Denmarks weakened external competitiveness saying it contributed to a steady deterioration of the countrys current account balance and a substantial rise in its external debt burden. Net foreign debt increased to 129 pct of total exports in 1986 from 83 pct in 1983 S and P pointed out. Standard and Poors said that while it expects lower imports and current account imbalances this year rising labor costs should further weaken Denmarks competitiveness. However S and P said its downgrade did not affect the A-1-plus short-term debt rating of Denmark or its wholly owned Danish Oil and Natural Gas. Similarly the AA ratings on the long-term debt obligations of Copenhagen County Authority and I/S Elsam were affirmed. Reuter | S/P DOWNGRADES KINGDOM OF DENMARK |
Shr 31 cts vs 26 cts Net 5645000 vs 4737000 Sales 55.2 mln vs 50.6 mln 1st half Shr 60 cts vs 53 cts Net 10.9 mln vs 9659000 Sales 110.4 mln vs 102.2 mln NOTE: Current year net both periods includes 474000 dlr gain from land sale. Share adjusted for three-for-two split in August 1986. Reuter | LUBY'S CAFETERIAS INC <LUB> 2ND QTR FEB 28 NET |
The chairmen of the House and Senate Budget Committees are in general accord on the need to cut the federal budget deficit by about 36 billion dlrs half through new revenues congressional sources said. The sources told Reuters Senate Budget Committee Chairman Lawton Chiles a Florida Democrat believes that it would be necessary to raise at least 18 billion dlrs in higher revenues--the same being proposed by House Budget Committee Chairman William Gray a Pennsylvania Democrat. The Senate committee will hold its first drafting session on a budget tomorrow the House group later in the week. Both sides want to meet a congressional target of April 15 for congressional approval of a new budget. However the Congressional Budget Office said that a deficit cut of 36 billion dlrs will fail to reach the Gramm-Rudman budget law goal of a 108 billion dlr deficit and would fall 27 billion dlrs short. President Reagans budget not accepted by either committee proposed about 36 billion dlrs in deficit reductions--including some 22 billion dlrs in new revenues through asset sales and excise fees--off of an estimated deficit base of 144 billion dlrs. Reagan said his budget hits the Gramm-Rudman goal for 1988 but the Congressional Budget Office said it is way off the mark with over optimistic economic assumptions. Currently there are discussions underway by House and Senate committees to redefine the fixed Gramm-Rudman targets for more realistic levels that can be reached which would push off by a year or two the 1991 goal for a balanced budget sources said. Reuter | U.S. SENATE, HOUSE BUDGET CHIEFS AGREE ON TAX |
General Motors Corp and PPG Industries Inc announced jointly that they had signed an agreement that will give PPG responsibility for operating the paint shop in GMs Buick Reatta Craft Center here. The Reatta is a two-seat luxury car that will be introduced in the spring of 1988 said GM. The companies described the agreement as an arrangement aimed at integrating GMs auto production expertise with PPGs coatings expertise. Under the agreement PPGs and GMs paint operating staff at the center will be consolidated under the PPG area manager. Reuter | GM <GM>, PPG <PPG> SIGN AUTO PAINT PACT |
Tesco Plc <TSCO.L> said in a statement it expects pre-tax profits of 166 mln stg for the year ending February 28 1987 before nine mln stg of net property profits. This compares with 122.9 mln stg pretax profits and a net 8.1 mln on property sales the previous year. It said the forecast was in its formal offer document sent to <Hillards Plc> shareholders today. On March 10 Tesco launched a 151.4 mln stg bid for Hillards. The offer of 13 new Tesco ordinary shares for every 20 Hillards ordinary shares valued each Hillards ordinary share at 305.5p. Reuter | TESCO FORECASTS PROFITS RISE THIS YEAR |
<MathSoft Inc> said it licensed its PC-based software for mathematical analysis and numerical calculations to Addison-Wesley Publishing Co. Addison-Wesley will market the product a student edition of MathCAD to universities and colleges in April 1987. It will cost less than 50 dlrs the company said. Reuter | ADDISON-WESLEY <ADSN> LICENSES SOFTWARE PRODUCT |
Business Computer Solutions Inc said it expects to report a profit for the fourth quarter ended February 28 -- its first quarterly profit ever -- of about 175000 dlrs on revenues of about 750000 dlrs. A year before it lost 217852 dlrs on sales of 469274 dlrs. The company attributed the improved results to increased purchases of its ZFOUR language and development environment for computer software. Business Computer said it expects to report a full-year loss of about 500000 dlrs on sales of about 2100000 dlrs. Last year it lost 1079000 dlrs on revenues of 720000 dlrs. Reuter | BUSINESS COMPUTER <BCSI> HAD 4TH QUARTER PROFIT |
The failure of the West German government to abolish a tax on bourse turnover when other taxes came under discussion during recent coalition negotiations was a bitter disappointment the president of the West German Federation of Banks Hanns Christian Schroeder-Hohenwarth said. Schroeder-Hohenwarth told a news conference that contrary to numerous assurances from the government the abolition of the turnover tax had not been touched upon. This must not be allowed to be the last word. Otherwise a major chance for West Germany as a financial centre will have been missed he said. After the January 25 election the government decided upon a reform of the West German tax system involving gross tax cuts of 44 billion marks which would be implemented in 1990. In line with a pledge made by Bonn at the February monetary conference in Paris the government said earlier this month part of the planned tax cuts would be effective next year. Government sources have said the fact the latest coalition discussions did not touch upon the bourse turnover tax does not necessarily rule out the possibility that it could be abolished later in the current four-year legislative period. The bourse turnover tax levied on securities trades where an end-investor is involved generated government revenue of some 750 mln marks in 1986 according to the Finance Ministry. Schroeder-Hohenwarth said there were no fiscal reasons for maintaining the tax because companies would benefit from its abolition. Their earnings would increase and the government would receive more in profits tax. Wolfgang Roeller chief executive of Dresdner Bank AG said the bourse tax decision did not fit into the general background of liberalisation of the German capital market and represented a weakening of West Germany as a financial centre. REUTER | GERMAN BOURSE TURNOVER TAX DECISION ANGERS BANKS |
The Plessey Co Plc <PLYL.L> said it won initial orders for more than 10 mln stg for intelligent coin and cashless payphones from seven European telephone administrations. The major orders were from Swedens <Televerket> Spains <Telefonica SA> and British Telecommunications Plc <BTY.L>. It said that the Finnish PTT had also invited the company to install a field trial for Finland. Sales executive Peter Findlay told reporters that Plessey was negotiating on further contracts with several other countries. Reuter | PLESSEY WINS TEN MLN STG PAYPHONE ORDERS |
FED SAYS IT SETS THREE-DAY SYSTEM REPURCHASE AGREEMENTS |
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Mount Isa Mines Holding Ltd plans to acquire a 30 pct stake in Europes largest primary copper producer Norddeutsche Affinerie AG a spokesman for Metallgesellschaft AG said. MIM intends to take Preussag AGs total 20 pct share in the copper producer in exchange for some three pct of MIMs share capital. MIM will also take another 10 pct now held by Degussa AG reducing Degussas share to 30 pct from 40. Metallgesellschafts share will remain at 40 pct. The move is subject to approval of the federal cartel office and supervisory boards of the companies involved. Reuter | MIM TO ACQUIRE STAKE IN GERMAN COPPER PRODUCER |
Magna International Inc said it created a new wholly owned unit Cosma International Inc to design develop and coordinate production from Magnas 27 auto part stamping and related facilities in Canada and the United States. Cosma is expected to have 1987 sales of more than 400 mln dlrs and the company projects future sales will increase very rapidly a Magna spokesman said. Cosma will also raise its own capital through an equity issue in about 18 months spokesman Jerry Barker said responding to a query. Terms of the issue have not been set he added. Magna said it established the Cosma unit to make the companys extensive stamping operations more responsive to the needs of North American automakers. The Cosma unit will be centered on its Bramalea Ontario stamping facility which manufactures car bodies for American Motors Corp <AMO>s Premier model. Reuter | MAGNA <MAGAF> CREATES NEW COSMA UNIT |
Shr 2.27 dlrs vs 74 cts Net 4945989 vs 1612624 Revs 28.2 mln vs 27.9 mln Six mths Shr 1.57 dlrs vs three cts Net 3417659 vs 73614 Revs 47.0 mln vs 46.8 mln NOTE: Current periods include pretax gain of 4.3 mln dlrs from sale of leasehold of Glen Oaks store in Queens N.Y. and gain of 1.9 mln dlrs from benefit of tax loss carryforwards. Year-ago six mths includes gain of 95988 dlrs from refund of prior years real estate taxes. Reuter | J.W. MAYS INC <MAYS> 2ND QTR JAN 31 NET |
Oper shr 16 cts vs 14 cts Oper net 5818000 vs 5284000 Revs 88.2 mln vs 69.7 mln Year Oper shr 96 cts vs one dlr Oper net 36101000 vs 37375000 Revs 374.0 mln vs 307.0 mln Note: Current qtr and year figures exclude extraordinary losses on early debt retirement of 1.7 mln dlrs or five cts per share and 7.9 mln dlrs or 21 cts per share respectively. Full name Circus Circus Enterprises Inc. Reuter | CIRCUS CIRCUS ENTERPRISES <CIR> 4TH QTR NET |
The Federal Reserve entered the U.S. Government securities market to arrange three-day System repurchase agreements a Fed spokesman said. Dealers said that Federal funds were trading at 6-1/4 pct when the Fed began its temporary and direct supply of reserves to the banking system. Reuter | FED ADDS RESERVES VIA THREE-DAY REPURCHASES |
National Fuel Gas Co said its mail date for its previously-announced two-for-one stock split is June 19 1987. The company which announced the split last week had said the record date for the split is May 29 1987. Reuter | NATIONAL FUEL GAS CO <NFG> SETS MAIL DATE |
Comtech Inc said it agreed in principle to sell 95 pct of its outstanding shares in Premier Microwave Corp for seven mln dlrs. It said the buyers include an investment group composed of the units management. The company said it expects the sale to close in the next few weeks. Proceeds will be used to reduce debt. Reuter | COMTECH <CMTL> TO SELL PREMIER MICROWAVE |
A group of affiliated New York-base investment firms and funds told the Securities and Exchange Commission they have acquired 453300 shares of Purolator Courier Corp or 5.9 pct of the total outstanding. The group led by Mutual Shares Corp said it bought the stock for investment purposes. It also said it is studying the 35 dlr a share leveraged buyout offer made by Purolator managers and E.F. Hutton LBO Inc but has not decided whether it will tender its stock in the offer. The group said it has held talks with the Hutton LBO group before and may do so again. Reuter | INVESTMENT FIRMS HAVE 5.9 PCT OF PUROLATOR <PCC> |
Tofutti Brands Inc said it is changing its fiscal year to a calendar year from a year ending July 31 and it expects to be profitable on higher sales in 1987. The company lost 658000 dlrs on sales of 11.6 mln dlrs in the year ended July 31. A company spokesman said Tofutti will be reporting earnings for the last five months of calendar 1986 by the end of March and will then report calendar first quarter results. Reuter | TOFUTTI BRANDS <TOF> SEES PROFIT FOR NEW YEAR |
Shr two cts vs eight cts Net 270000 vs 1212000 Revs 1858000 vs 1420000 Avg shrs 16817618 vs 12507671 Reuter | DIGITECH INC <DGTC> 1ST QTR JAN 31 NET |
Members of the United Food and Commercial Workers union UFCW local 222 voted Sunday to go on strike against Iowa Beef Processors Inc Dakota City Nebraska plant effective Tuesday. The company submitted their latest offer to the union at the same time announcing that they would end the lockout as of tomorrow that started December 14. Members unanimously rejected the latest company offer that was submitted to the union late last week. An overwhelming majority of the approximately 2500 members attending the meeting then voted to go on strike UFCW union spokesman Allen Zack said. Zack said the companys offer for a cut in wages was unacceptable and said IBP was refusing to bargain in good faith. IBPs latest offer included wage cuts of 60 cents an hour for slaughter operations and a 45 cents an hour cut in pay for processing workers. The cut follows the 1.07 dlr cut in pay workers received in 1982 and the wage freeze that has lasted since then Zack said. The offer also eliminated overtime after eight hours following the normal 40 hour work week he added. Reuter | UNION VOTES TO STRIKE DAKOTA CITY IBP PLANT |
Ultrasystems Inc said the U.S. Defense Department awarded the companys Ultrasystems Defense and Space Inc unit several new contracts and extensions to existing contracts having a total value of more than 15.1 mln dlrs. The new awards involve software development and hardware integration for secure office automation systems Ultrasystems said. Reuter | ULTRASYSTEMS <ULS> UNIT GETS DOD CONTRACTS |
The Belgian government has lowered its forecast for the nominal increase in gross national product in 1987 to 3.5 pct from an originally forecast 3.9 pct Prime Minister Wilfried Martens said in a statement to parliament. He said this revision which brings government forecasts more closely into line with those by private institutions takes account of an anticipated slowdown in the world economy and international trade. But he said the impact on the Belgian economy will be limited due to recent agreements on wages and working conditions agreed by employers and unions. Martens did not say how much the government expected GNP to grow in volume terms. However last month the governments Planning Bureau said it had revised its 1987 forecast for this to 0.9 pct from 2.0 pct. In 1986 Belgiums gross national product rose 2.15 pct in volume terms against a 5.9 pct nominal rise. REUTER | BELGIUM REVISES DOWN 1987 GNP GROWTH FORECASTS |
Moleculon Inc said it successfully completed initial tests in animals of its Poroplastic transdermal nicotine delivery system to help smokers break the habit. Transdermal systems are designed to deliver drugs through the skin in constant dosages. The company said it is discussing licensing and marketing agreements for the product with a major international pharmaceutical firm but did not identify the firm. It also said it retained Allen and Company New York as its financial advisor. Reuter | MOLECULON <MBIO> SEES NEW WAY TO KICK THE HABIT |
Raytheon Co said its Beech Aricraft unit has received a five-year 337 mln dlr incrementally-funded contract from the U.S. government to support C-12 and U-21 type aircraft. It said the first year of the contract has been funded to a level of 35 mln dlrs. Reuter | RAYTHEON <RTN> UNIT GETS 337 MLN DLR CONTRACT |
Barclays De Zoete Wedd Ltd said it today began market-making in Japanese convertible eurobonds denominated in dollars. This venture will be followed within a few months by the establishment of a trading operation for Japanese U.S. Dollar-denominated equity warrant issues. Director in charge of the Japanese convertible operation is Kelvin Saunders who said the desk was currently staffed by seven traders and salespeople. This number would be doubled with the addition of the equity warrant operation an even more important element in the current market environment he said. REUTER | BZW MAKES MARKETS IN JAPAN DOLLAR CONVERTIBLES |
Shr four cts vs two cts Net 240902 vs 106054 Revs 3408481 vs 2566769 Reuter | CABOT MEDICAL CORP <CBOT> 1ST QTR JAN 31 NET |
Oper shr loss one ct vs loss 11 cts Oper net profit 89000 vs loss 323000 Revs 9603000 vs 6116000 Year Oper shr loss six cts vs loss 21 cts Oper net profit 158000 vs loss 629000 Revs 34.6 mln vs 22.8 mln NOTE: 1986 net excludes tax credits of 170000 dlrs in quarter and 321000 dlrs in year and gains on termination of pension plan of 82000 dlrs in quarter and 190000 dlrs in year. Share after preferred dividends. Reuter | AMERIHEALTH INC <AHTH> 4TH QTR LOSS |
External risks for the economy have increased but growth of two to 2.5 pct this year is still possible according to President of the West German Federation of Banks Hanns Christian Schroeder-Hohenwarth. Schroeder-Hohenwarth told a news conference the further fall of the dollar since the start of this year and the revaluation of the mark against European currencies meant West German exporters were facing a rough wind. However domestic demand was continuing to rise and private consumption in particular would support the economy he said. He saw good prospects for consumer industries. Schroeder-Hohenwarth said economic policy now had to concentrate on strengthening this domestic growth. In this context he welcomed a decision by the government to increase the scope of tax cuts due in 1988. He added a planned reform of the fiscal system scheduled for 1990 which was worked out by coalition partners this month was an important step in the right direction. The government plans to cut corporation tax to 50 pct from 56 pct. However Schroeder-Hohenwarth said the decision to cut the maximum rate of income tax to only 53 pct from 56 pct was rather half-hearted. REUTER | BANKS SEE GERMAN GROWTH OF AT LEAST TWO PCT |
Cambridge Analytical Associates Inc said it expects to incur a loss for the first quarter of fiscal 1987 equal to or greater than its loss of 240697 dlrs for the fourth quarter ended December 31 1986. Cambridge said it expects revenues for the first quarter to be approximately the same as those recorded for the fourth quarter ended December 31 1986 of 1025961 dlrs. Cambridge recorded a profit of 2204 dlrs on revenues of 847000 dlrs for the first quarter of fiscal 1986 the company said. The company attributed the expected loss to lower than expected sales from its laboratory and consulting business and planned major investment in its proprietary treatment technology. The company said winter is traditionally its slowest season. Reuter | CAMBRIDGE ANALYTICAL <CAAN> SEES FIRST QTR LOSS |
Seton Co said its board has received a proposal from chairman and chief executive officer Philip D. Kaltenbacher to acquire Seton for 15.75 dlrs per share in cash. Seton said the acquisition bid is subject to Kaltenbacher arranging the necessary financing. It said he intends to ask other members of senior management to participate. The company said Kaltenbacher owns 30 pct of Seton stock and other management members another 7.5 pct. Seton said it has formed an independent board committee to consider the offer and has deferred the annual meeting it had scheduled for March 31. Reuter | SETON <SEL> GETS BUYOUT OFFER FROM CHAIRMAN |
U.S. Based speciality food retailer <Mrs Fields Inc> which earlier announced pre-tax profits of 17.1 mln dlrs in 1986 against 6.8 mln in 1985 said it plans further growth this year with the opening of 125 new stores in the U.S. The company which is quoted on Londons Unlisted Securities Market (USM) said it also planned to expand its outlets internationally. However chairman Randall Fields told a news conference the company would not move into any new countries during 1987 but would intensify its efforts where it already had stores. During 1986 the company opened 81 new stores including 76 in the U.S. Two in Australia and one each in Japan Canada and the U.K. We intend to open a minimum of five more units in London for example and it is reasonable that we might open other stores in other European countries in 1988 Fields said. He said the company acquired competitive businesses as a matter of routine and might add others in 1987 but declined to say how much the company planned to spend on them. Last year turnover rose by 20.8 pct to 87.1 mln dlrs from 72.6 mln dlrs in 1985. Reuter | MRS FIELDS PLANS TO OPEN MORE STORES |
Hitech Engineering Co said it agreed to make a new version of (Electrohome Ltds) large-screen video projector and to obtain certification for the projector on the Defense Departments preferred products list. Under the agreement Kitchener Ontario-based Electrohome will pay an undisclosed amount to Hitech for initial research and development and to buy some of the units the Tempest version of the ECP2000. The Tempest program is a classified U.S. Government program dealing with data processing equipment. Reuter | HITECH ENGINEERING <THEX> TO MAKE PROJECTOR |
Brazilian Finance Minister Dilson Funaro said his countrys foreign debt crisis could only be solved by changes in the international financial system. Speaking to a business conference he said It is not Brazil that has to make adjustments with the IMF (International Monetary Fund). It is the international financial community that is taking away resources from the developing countries. The crisis is not in Brazil a country that has had the third biggest trade surplus ...In the past two years Brazil had remitted 24 billion dlrs in debt servicing and received only two billion in fresh funds he added. Funaro said that during his recent trip to the U.S. Europe and Japan to explain Brazils decision last month to suspend interest payments on 68 billion dlrs of commercial debt he stressed the countrys commitment to growth. We need to and will make the effort (to solve the debt problem) but we cannot make an effort that means we stop growing he said adding that political and not purely commercial solutions were needed to the debt crisis. Brazil whose 108 billion dlr foreign debt is the largest in the developing world has been under pressure from official and private creditors to work out an economic adjustment program with the IMF to combat rocketing inflation and foreign payments problems. President Jose Sarneys government has repeatedly refused to approach the Fund arguing that an IMF programme would lead to recession. Funaro said that in his talks with creditors he had tried to restore credibility in the country in the hope of finding a lasting solution to the debt problem. We are negotiating so that the debt question should not be one of continuous crisis. To sustain internal growth Brazil would have to import more machinery and equipment this year and export fewer raw materials. The country was thus targetting a fall in this years trade surplus to 8.0 billion dlrs from 1986s 9.5 billion. Domestically Funaro said economies had led to a reduction in the public sector deficit to 2.7 pct of gross domestic product in 1986 the lowest for many years and that this should fall to 1.5 pct this year. REUTER | BRAZIL SAYS DEBT CRISIS IS WORLD PROBLEM |
<Wilson and George Meyer and Co> and the Eastman Chemicals division of Eastman Kodak Co said they formed 50-50 joint venture called WGM/Eastman Inc. According to the agreement Eastman will buy Meyer and Cos interest in the unit by the end of 1991. The unit will supply Eastman Kodak chemicals to companies in the western region of the U.S. they said. Reuter | EASTMAN KODAK <EK> SETS CHEMICAL VENTURE |
U.S. INDUSTRIAL CAPACITY USE RATE ROSE TO 79.8 PCT IN FEB FROM 79.6 PCT IN JAN |
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Shr loss five cts vs loss 17 cts Net loss 154654 vs loss 419606 Revs 517699 vs 374108 Year Shr loss 28 cts vs loss 56 cts Net loss 821979 vs loss 1368591 Revs 1650657 vs 1285473 Reuter | BIOTECHNOLOGY DEVELOPMENT <BIOD> 4TH QTR LOSS |
Credit Foncier de France said it will issue on Wednesday around 500 mln francs worth of Specialised Financial Institution Bonds (BIFS). This second issue of eight pct BIFS maturing on December 23 1993 are identical to the 535 mln franc issue of bonds issued last month. BIFS created in December 1985 and reserved for issue by certain specialised financial bodies are negotiable securities with a life of between two and five years and are issued in units of five mln francs. At the end of February there was a total of 3.9 billion francs in BIFS in circulation. REUTER | FRANCE'S CFF TO ISSUE 500 MLN FRANCS BONDS |
A spokesman for Penn Central Corp said he was unable to explain a rise in the companys shares. Penn Central rose 2-1/4 to 55-7/8 on 538000 shares by midmorning. The spokesman noted the stock had dipped to 52-3/4 in intrasession dealings Friday but closed at 53-5/8. The stock had traded over 54 dlrs in the preceding week but was pressured last week on a large block sale. The spokesman said he did not know who the seller was. He said he did not believe it was Carl Lindner a Cincinnati investor who owns about 28 pct of Penn Centrals stock. Reuter | PENN CENTRAL <PC> CAN'T EXPLAIN STOCK ACTIVITY |
Shr primary 28 cts vs 22 cts Shr diluted 26 cts vs 21 cts Net 8637000 vs 6577000 Sales 140.3 mln vs 116.8 mln Year Shr primary 92 cts vs 77 cts Shr diluted 88 cts vs 75 cts Net 28.3 mln vs 23.1 mln Sales 588.4 mln vs 479 mln Reuter | HECHINGER CO <HECH> 4TH QTR NET |
Metex Corp said its chairman and chief executive officer Alan Cohen sold 78375 shares of Metex common stock to Metropolitan Consolidated Industries Inc <MONY>. The company said the selling price was 11.25 dlrs per share with an option for Metropolitan Consolidated Industries to purchase up to 42750 shares more at the same price. Metex also said Mason Carter was elected president and chief operating officer of the company. Carter joined Metex in 1982 where he was formerly its executive vice president. In addition Attilio Petrocelli president of Metropolitan was named to fill a vacancy on the Metex board of directors the company said. Metropolitan owns 21 pct of Metex common stock the company said. Reuter | METEX <MTX> CHAIRMAN SELLS SHARES |
Cetus Corp said the European Patent Office allowed and intends to grant the company a patent for pharmaceutical and veterinary preparations of genetically engineered Interleukin-2 analog. Interleuken-2 is an immune modulating protein currently undergoing clinical trials in the United States and Europe for potential use in the treatment of various forms of cancer Cetus said. It said the allowance is the first step in the patent process. Following allowance the patent is published for opposition and a nine-month period begins during which interested parties have an opportunity to voice any objections to the patent Cetus said. Reuter | CETUS <CTUS> CANCER DRUG TO GET EUROPE PATENT |
A 0/92 program would have very little impact on U.S. acreage prompting farmers to idle only an additional 3.5 mln acres of cropland every year according to a report from the Agriculture Department. The savings resulting from the additional 3.5 mln acres idled would be a little over 400 mln dlrs in loan savings 35 mln dlrs in transportation and storage savings and 10-20 mln dlrs per year in deficiency payment savings the report said. The USDA report asssessed the impacts of the proposed 0/92 acreage program for wheat corn cotton sorghum and barley. Last year almost 245 mln acres of those crops were harvested. The likelihood that the 0-92 provisiion will cause very large acreages to be removed from crop production is quite small the report said. The returns on typical farms still favor participation in the usual acreage reduction programs and seeding the permitted acreage the USDA report said. The 0/92 program which would allow farmers to forego planting and still receive 92 pct of their deficiency payment would be most used by producers in high production/high risk areas where cost of production is high said Keith Collins director of USDAs economics analysis staff. In the heart of the corn belt you would not get that much participation Collins said. USDA estimated that an additional one mln acres of wheat would be ildled under 0/92 1.5 mln acres of corn 500000 acres of sorghum and barley and 500000 acres of cotton. Production from these idled acres would be equivalent to 40 mln bushels of wheat 180 mln bushels of corn 20 mln bushels of sorghum 10 mln bushels of barley and 500000 bales of cotton the report said. In determining whether to participate a producer would need to weigh the expected cash costs of production against the loan rate ... The risk that market prices may rise above the expected levels and reduce the deficiency payment also must be considered according to the analysis. What youre giving up under 0/92 is the difference between the loan rate and the cost of production Collins said. For producers with low production costs that difference is greater and can be applied to paying variable costs he said. Under these cicumstances farmers would not want to go along with 0/92. But for high cost producers 0/92 would be more attractive. Also as loan rates get lower Collins said there would be more incentives to participate in a 0/92 program. I would admit that its impacts would be very marginal at first but it is a step towards the goal of separating production decisions from government payments Collins said. In a speech earlier today before the National Grains and Feed Association USDA Secretary Richard Lyng said it is too late to implement 0/92 for 1987 crops since program signup will be over by the end of this month. Reuter | AROUND 3.5 MLN ACRES SAID TO BE IDLED BY 0/92 |
The International Finance Corporation is planning to intervene to help certain developing country companies to borrow on world capital markets IFC chief executive Sir William Ryrie told a news conference. Ryrie said the IFC is at present seeking to overcome regulatory barriers to its underwriting business on the United States and London markets. There are many companies in the more advanced developing countries which are strong enough to borrow by issuing bonds or floating rate notes he added. However such companies needed help and the IFC could play a role by introducing them into the market and underwriting issues Ryrie said. The capital markets would then get used to the idea of buying the paper of these companies he added. There is a potential source of development finance there which could be very large. He said he was confident there were enough institutional investors who would be interested in taking paper in the interests of portfolio diversification. The IFC whose role is to provide international financing for private sector investments in developing nations generally does this by providing pump priming finance to persuade western companies to invest in third world enterprises. However in recent years it has set up three investment funds through which institutional investors can hold shares in developing country stock exchanges. It announced the third such fund one of 30 mln dlrs for investment on the Thai stock exchange in December. There is a 120 mln dlr South Korea fund and one of 50 mln dlrs which invests in a number of developing country stock exchanges. REUTER | IFC PLANS TO LEAD THIRD WORLD TO CAPITAL MARKETS |
American Security Corp said a release will be forthcoming shortly regarding its pending merger with Maryland National Corp <MDNT> approved by its stockholders October 10. American was halted on NASDAQ pending a news announcement. Reuter | AMERICAN SECURITY <ASEC> TO RELEASE INFORMATION |
Group profit after net financial items 1.39 billion crowns vs 1.32 billion Sales 15.22 billion crowns vs 12.61 billion Profit per share 20.50 crowns vs 19.60 Proposed dividend five crowns vs 4.40 Reuter | SVENSKA CELLULOSA AB <SCAB.ST> 1986 YEAR |
Private coffee exporters say Colombias more pragmatic coffee marketing policy will ensure that the country does not suffer excessively from current depressed prices and erratic market conditions. Gilberto Arango president of the exporters association said in an interview that Colombia the worlds second largest producer was in a position to withstand a prolonged absence of International Coffee Organization (ICO) export quotas. Colombia is one of the countries that will benefit most from this situation he said. Recent ICO talks in London failed to break a deadlock over re-introduction of export quotas suspended in February 1986 and no date has been set for a new meeting on the issue. Arango said that government measures adopted here last week including a lower export registration price indicated a major change but also disclosed a welcome pragmatism. This is the start of a new era in Colombia because world market conditions are also new he said. The government lowered local taxes for exporters and said the export registration price or reintegro will be changed more often in order to closely reflect market trends. Arango said an illustration of Colombias new attitude was the decision on Friday to open export registrations for an unlimited amount. But he added it did not imply the country would begin heavy selling of coffee. Our marketing policy is to sell without haste but consistently. No targets for volume will be set. We will react to market factors adequately and Colombia has no intention of giving its coffee away. Colombias past records should be the basis for upcoming exports he said. We will certainly not export seven mln (60-kilo) bags but neither are we going to sell like mad. The trade knows full well what Colombias export potential is he said. Colombia with stockpiles standing at about 10 mln bags exported a record 11.5 mln bags in the 1985/86 coffee year which ended last September and 11.3 mln in calendar 1986. Arango did not want to commit himself on export predictions but said that output for the 1986/87 coffee year would not exceed 10.5 mln bags compared with 12 mln forecast by the National Coffee Growers Federation and 12.5 mln by the U.S. Department of Agriculture a figure he said was ridiculous. He said ageing plantations and rust in particular in the number one producing province of Antioquia meant output was likely to fall but that nationwide estimates were rare and oscillated between 9.5 mln and 11.5 mln bags. On the failure of the recent ICO talks Arango said Colombia understandably felt frustrated at not having managed to force a compromise. Jorge Cardenas manager of the national federation and head of his nations delegation in London has blamed the intransigence of some big countries without naming them. However Arango like Colombian Finance Minister Cesar Gaviria last week was more explicit and said the United States would undoubtedly be under great political pressure in coming weeks to revise its policy. Washington will have to take into account that for many countries and some of its allies for instance in Central America a sharp fall in coffee export revenue would have far-reaching political and economic consequences. Arango ruled out a fresh Colombian initiative on export quotas saying producers had now to show a common resolve which could emerge from continuous contacts. Reuter | COLOMBIA COFFEE EXPORTERS BELIEVE IN PRAGMATISM |
Belgian Prime Minister Wilfried Martens announced to Parliament a plan to reduce the 1987 government financing requirement by 20.6 billion francs. He said this will enable the requirement to be held to 419.7 billion francs against the previous government target of 417.8 billion or eight pct of gross national product. Martens said following a lowering of government estimates of 1987 nominal GNP growth and a re-estimation by government departments of 1987 spending the government calculated that unless action was taken the requirement would exceed the target by 22.5 billion francs. Martens said the plan involved raising non-fiscal receipts by 5.8 billion francs and reducing spending by 14.3 billion. The remaining 0.5 billion francs will be raised through treasury operations. Martens said the money is being found through a series of small economies and confirmed that it includes the raising of two billion francs through the sale of part of the governments 50 pct holding in the gas company Distrigaz. Last year the government announced a major program designed to cut 1987 spending by 195 billion francs. The program was designed to get Belgium out of what the government said was a snowball effect under which the government constantly borrowed more to finance budget deficits which were due largely to the cost of servicing and repaying existing debt. In 1986 the government financing requirement is estimated at 561 billion francs or 11.0 pct of GNP. REUTER | BELGIAN GOVERNMENT TO CUT FINANCIAL REQUIREMENT |
<Royal Trustco Ltd> in a move unique among Canadian trust companies is pursuing a bold global expansion that could someday lift the foreign share of its yearly earnings to 50 pct president Michael Cornelissen said. First Marathon Securities Ltd financial services analyst Michael Walsh said Royal Trusts international growth target is attainable. But it will be a tremendous achievement because ... theyre going to have to build an international earnings base larger than the earnings of a lot of significant domestic trust companies Walsh said. Global operations which made up 22 pct of Royal Trusts 154 mln dlr 1986 net profit will post 33 pct profit growth this year against an expected 15 pct jump in total company profit Cornelissen told Reuters in an interview. He said the foreign share of total profit would rise to 26 pct in 1987 and to 44 pct by 1990. Royal Trust Canadas second largest trust company with assets of about 19.54 billion Canadian dlrs has operated internationally since 1929 when it opened a London bank. Its aggressive global strategy began in the 1980s when other Canadian trusts the equivalent of U.S. savings and loans were focusing on domestic retail banking. The companys overseas ambitions were whetted by heightened domestic competition and impressive growth at its London bank operations which attained full British banking powers in 1980 Cornelissen said. Last year Royal Trust moved into continental Europe and Asia with its 239 mln Canadian dlr acquisition of Dow Chemical Co <DOW>s Dow Financial Services Corp which included asset management merchant and private banking companies. It was a heaven-sent opportunity Cornelissen said of the Dow Financial acquisition. We achieved in one year what would otherwise have taken five to 10 years to set up. Cornelissen stressed that Royal Trust would shun direct competition with major global financial institutions in activities such as international lending and stock brokerage in order to exploit profitable niches overseas in traditional trust activities such as asset management private banking and advisory services. He said that Royal Trust hoped to complete negotiations before the end of this month to sell its London-based Savory Milln brokerage acquired in the Dow Financial deal. The international market is so big and we have such a miniscule share of it that growth opportunities are really limited only by our energy and our desire to find more business he said adding that in trust-type services we dont think the international markets are well-served. Aiding Royal Trusts foreign growth are greater foreign investment interest in North America and increased Canadian investment abroad Cornelissen said. Central to Royal Trusts strategy is Asia boasting rapid economic growth and huge pools of Japanese capital said Cornelissen whose company administers assets of 71.85 billion dlrs more than any other Canadian trust. Citing statistics indicating that by the year 2000 Asia will contain two-thirds of the worlds population and 50 pct of global productive capacity Cornelissen said We knew we had to be there. Royal Trusts 14 international locations include offices in Tokyo Hong Kong and Singapore. The company also recently listed its shares on the Tokyo Stock Exchange. The Royal Trust president said the company was stressing growth within its overseas units adding he did not foresee any acquisitions in the immediate future although we have our eyes wide open for the right opportunities. Asked about Royal Trusts plans for the U.S. which the company abandoned with the 1983 sale of its Florida bank units Cornelissen said the company faced a trust services market well covered by hundreds of small regional banks. That doesnt mean to say we shouldnt be in the U.S. said Cornelissen. That is probably one area that we will probably do something with in the next five years. He said the company would continue to emphasize its home Canadian market which Cornelissen and financial services analysts agreed would remain vital to Royal Trust. Proposed government regulations to allow Canadian banks trusts insurance and securities dealers full participation in one anothers actitivies will mean more domestic competition for Royal Trust but not drastically more Cornelissen said. Reuter | ROYAL TRUST PLOTS AGGRESSIVE GLOBAL EXPANSION |
Salomon Brothers Inc said it raised its opinion on Caterpillar Incs stock to an aggressive buy from a hold because of a brighter earnings outlook for 1988. Salomon analyst David Sutliff said in a statement he sees 1988 earnings of 3.35 dlrs a share up from an earlier forecast of three dlrs for the year. The outlook for 1987 remains at 2.50 dlrs to three dlrs. Caterpillars stock was down 1/2 points at 46-1/4. Although earnings will be poor for the next two quarters we believe that profits could begin to improve in the second half - perhaps significantly - and should surge sharply through 1988 and 1989 he said. Sutliff said improved results should come from four factors - higher prices improved market share reduced costs and improved demand. The higher prices will stick because its Japanese competitor Komatsu has had to raise prices because of the increased value of the yen he said. Reuter | SALOMON RAISES CATERPILLAR <CAT> OPINION |
Shr profit 78 cts vs loss 38 cts Net profit 3108000 vs loss 1510000 Revs 35.5 mln vs 47.1 mln Year Shr profit 2.42 dlrs vs loss 2.01 dlrs Net profit 9.6 mln vs loss eight mln Revs 157.2 mln vs 182.2 mln NOTE: Includes extraordinary gains of 22 cts per share and 36 cts in the fourth quarter and 1986 respectively. Reuter | ROCKWOOD HOLDING CO <RKWD> 4TH QTR NET |
CANADA PRIME MINISTER SAYS A MAJOR TRADE DEAL EMERGING WITH U.S. |
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Forum Group Inc said it has terminated its agreement in principle to buy eight retirement living centers in six states from Beverly Enterprises due to a failure to reach a satisfacotry definitive agreement. Reuter | FORUM <FOUR> ENDS BEVERLY <BEV> PURCHASE DEAL |
FDA EXPERT PANEL VOTES TO RECOMMEND APPROVAL OF UPJOHN'S ROGAINE BALDNESS DRUG |
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formerly the British Airports Authority - is to be privatised in June or July of this year Transport Secretary John Moore told Parliament. He said BAAs 7000 employees would each be given free shares in BAA worth a nominal 100 stg. Employees would also receive two free shares for each purchased up to a maximum of 400 stg worth of free shares. BAA runs Londons Heathrow and Gatwick airports Stansted and the Scottish airports. The flotation is to be managed by <Country Bank Ltd>. Private studies have put total proceeds of the BAA sell-off at just over one billion stg analysts said. Reuter | U.K. AIRPORT AUTHORITY TO BE PRIVATISED IN SUMMER |
The Governor of the Bank of England Robin Leigh-Pemberton repeated his criticism of City predators describing them as thoroughly irresponsible. I have been concerned when predators have sought to use a minority shareholding to unsettle a perfectly well-managed company and to create an atmosphere in which a bid becomes daily expected he said in a speech to the Industrial Society. Such activity can amount to a thoroughly irresponsible exercise of shareholder power and an abuse of the arrangements we have for the protection of shareholders interests he said. Leigh-Pemberton was resuming a theme he developed in a speech last week when he attacked the practice of putting a company into play. This is when predators use a minority shareholding to force a companys management into action which will raise the companys share price. The predator then withdraws taking substantial profits. In todays speech Leigh-Pemberton said it was hard to find the right tightrope to walk between intervention and adherence to a free market philosophy. REUTER | U.K. BANKING HEAD RESUMES ATTACK ON CITY PREDATORS |
Some 7000 black miners went on strike at South African gold and coal mines the National Union of Mineworkers (NUM) said. A NUM spokesman said 6000 workers began an underground sit-in at the Grootvlei gold mine owned by General Union Mining Corp to protest the transfer of colleagues to different jobs. He said about 1000 employees of Anglo American Corps New Vaal Colliery also downed tools but the reason for the stoppage was not immediately clear. Officials of the two companies were not available for comment and the NUM said it was trying to start negotiations with management. Reuter | SOME 7,000 MINERS GO ON STRIKE IN SOUTH AFRICA |
Consul Restaurant Corp said it began an exchange offer for its 13 pct convertible debentures due 1992 with an aggregate principal amount of 17.5 mln dlrs. Consul officials told an analysts meeting that in return for each 1000 dlr face value of the bonds tendered investors will receive 10 shares of preferred stock convertible after Dec 1 1987 into 500 shares of common. The company said the value represents a substantial premium over the debentures market value which traded at 410 dlrs per 1000 dlr face amount on March 13. Consul said the debt was taken on to finance expansion. James Crivits Consul chairman said debt service on the outstanding debentures has cost the company 55 cts a share per quarter and cut deeply into the companys profitability. For the year ended May 31 1986 the company reported a net loss of 1.12 dlr per share or 5.3 mln dlrs on revenues of 77.6 mln dlrs. Crivits said the company will report an improved but still unprofitable third quarter ended February 28 compared to a loss of 22 cts a share in the year-ago thrid quarter. He said current third quarter results would be similar to 1987s second quarters loss of 12 cts per share. Crivits said the company will not produce a gain in the fourth quarter or the full year and said there will be a write off in the fourth quarter for the debenture exchange offer. He would not specify the amount of the write off. Robert Lamp Consuls chief financial officer said the company needs to have at least 90 pct of the bonds exchanged in the transaction to report a profit in the first quarter of fiscal 1988. Lamp said that if the exchange is successful the company will report profits much higher than the three cents a share reported in the first quarter of fiscal 1987. The Minneapolis-based company which it said is the nations largest franchisee of Chi-Chis family-style Mexican restaurants said it had the planned to expand to 80 units but had to abandon the effort leaving 38 units in operation. The company also said the restaurants are profitable with profit margins increasing over last year. Reuter | CONSUL RESTAURANT <CNSL> IN EXCHANGE OFFER |
Shr 11 cts vs three cts Net 313000 vs 80000 Revs 12.5 mln vs 11.3 mln Reuter | FBX CORP <FBXC> YEAR NOV 30 NET |
<Hoechst AGs> Hoechst Celanese Corp subsidiary said it plans to raise about 500 mln dlrs in U.S. capital markets in three to four months. Company officials at a press conference said the money would be raised through the sale of debentures adding these securities are expected to be registered with the Securities and Exchange Commission following Standard and Poors Corps rating of the companys debt next week. Officials said most of the funds raised will be used to pay down 600 mln dlrs of bridge loans taken out last month when American Hoechst bought Celanese for 2.8 billion dlrs. The officals said Hoechst Celeneses 1987 capital spending of over 200 mln dlrs will be funded from internally generated cash. They pointed out this is little changed from the combined spending of American Hoechst and Celanese Corp in 1986. Reuter | <HOECHST AG> UNIT TO RAISE 500 MLN DLRS |
U.S. factories mines and utilities operated at 79.8 pct of capacity in February compared with a revised 79.6 pct in January and December the Federal reserve Board said. The Fed previously said the rate was 79.7 pct in January and 79.5 pct in December. A surge in automobile assemblies in February and a gain in primary metals production helped raise manufacturing to 80.1 pct capacity from 79.9 pct in January. Durables manufacturing increased to 76.8 pct last month from 76.3 pct in January the Fed said. Nondurable manufacturing eased to 85.2 pct of capacity use from 85.4 pct in January. Last months rate was down from 80.2 pct in February 1986. Fabricated metals increased to 81.4 pct in February from 81.2 pct in January while motor vehicles and parts jumped to 83.6 pct from 80.0 in January. Primary metals rose to 67.7 pct from 66.7 pct in January. Petroleum products fell to 92.5 pct in February from 94.5 pct in January. Capacity utilization for mining rose to 75.3 pct in February from 75.1 pct in January but was below the February 1986 rate of 79.4 pct the Fed said. The use rate for utilities was up to 80.8 pct last month from 80.4 pct in January. Producers of industrial materials operated at 78.9 pct of capacity the same as in January and December but down from the February 1986 rate of 79.6 pct. The Fed said the decline in energy materials use and durables goods materials were the reason for the decline over the past year for producers of industrial materials. Reuter | U.S. CAPACITY USE RATE 79.8 PCT IN FEBRUARY |
The federal Food and Drug Administrations Dermatologic Drugs Advisory Committee voted unanimously that Upjohn Cos Rogaine baldness drug was safe and effective. The panel recommended that the FDA approve Rogaine for marketing in the United States so long as accompanying packaging and promotional materials disclose that the product has only limited effect on male pattern baldness. The five outside experts attending todays FDA committee meeting seemed less concerned about Rogaines safety after an outside consultant told them the drug appears to be quite safe in the normal male population. The consultant Ohio State University Professor of Medicine Carl Leier said Rogaines side effects were minimal based on a study of 10000 individuals who have been getting the drug in Canada where it was approved for marketing last year. The Canadian record is quite a good one in terms of side effects Leier said. The experts urged the FDA to require a warning in the drugs packaging that patients be monitored for heart effects while taking the drug such as irregular heart beats changes in heart rate palpitations and fluid retention in the body. Rogaine whose chemical name is minoxidil has already been approved by the FDA when taken orally as a high blood pressure drug. But Upjohn is now seeking agency approval of it as a male baldness treatment when put directly on the skin in liquid form. Upjohn has previously claimed that when applied to the scalp too little of Rogaine was absorbed into the bloodstream to affect the heart. But panel members concluded that the amount absorbed merited physician monitoring of patients taking the drug. Under questioning by panel members Upjohn official Richard De Villez acknowledged the drug in clinical trials produced moderate hair growth on the crown of the head in only about 40 pct after 12 months. He also acknowledged discontinuing treatment would make the new hair fall out. The Upjohn problem is that they have a tremendous placebo effect panel member Paul Bergstresser of the University of Texas told the meeting. He said patients administered a placebo during clinical trials typically had about half as much new hair growth as did individuals treated with Rogaine. As a result it may take patients eight-12 months before they can tell whether thay are benefiting from the drug he said. In Canada a years treatment costs about 550-640 dlrs (U.S.). An Upjohn official said no price would be set for the drug in the U.S. market until it was approved for sale. During trials the drug was found to have a bizarre side effect on some individuals: It caused a state of sexual dysfunction known as exagerrated erection. Stewart Ehrreich a former FDA official who conducted a safety review of Rogaine before leaving the agency said researchers had found a number of cases of patients who had exagerrated erections as a result of the drug. He said this was a common effect for drugs of the same class as Rogaine called vaso-dilators. FDA officials said they could make no prediction on when Rogaine might be approved for marketing. Following the vote panel member Dr. Robert Stern a Boston dermatologist said Upjohn statistics had exaggerated the effect of the drug. He said about one in five will have a substantial clinical effect which he defined as a significant growth of new hair that made the patient actually look better. He urged insurance companies not to cover the cost of Rogaine treatment in order to preserve scarce medical fund resources. I would hope that insurance companies will take a strong line that this is not a product we will reimburse for Stern told reporters. I think this is a drug that has some application for some people and I think some people will find it worth the expense he said. But he said individuals should be required to pay for the treatment out of their personal funds. Stern estimated more than 100000 American men are already using minoxidil on their scalps outside the law by grinding up the blood pressure pill and dissolving in a solvent. Reuter | FDA PANEL BACKS UPJOHN <UPJ> BALDNESS DRUG |
The United Food and Commercial Workers union Local 222 said its members voted Sunday to strike the Iowa Beef Processors Inc Dakota City Neb. plant effective Tuesday. The company said it submitted its latest offer to the union at the same time announcing that on Tuesday it would end a lockout that started December 14. Union members unanimously rejected the latest company offer that was submitted to the union late last week UFCW union spokesman Allen Zack said. Reuter | UNION VOTES TO STRIKE DAKOTA CITY IBP PLANT |
<Toronto Sun Publishing Corp> said it was examining an idea for a new tabloid newspaper in Britain after being being approached about the concept by a person in England it declined to indentify. We were talking to this individual and offered to help him in effect formulate his concept and that is about as far as it has gone Toronto Sun Publishing vice-president of finance Bruce Jackson said in reply to a query. We have not decided anything Jackson added. It has not been brought to the board of directors for any kind of approval or heavy discussion. Jackson said that Toronto Sun recently produced a dummy newspaper for the individual to use in testing possible British market reaction. Toronto Sun publishes tabloids in Toronto Edmonton and Calgary Alberta and the Houston Post. Asked about possible financial or editorial support by Toronto Sun Jackson replied: It is far too premature to discuss anything like that. He said further developments were unlikely to unfold for at least a month. Jackson described the British tabloid market as very competitive but it is a very large market as well. It most likely doesnt take a large market share to be profitable there as long as you find the right niche. He said Toronto Sun is approached almost every month about ideas for starting newspapers mostly in North America as the Toronto Sun is known to be a newspaper group that has started papers. Unfortunately this one leaked out and it probably attracted a little more attention than it really deserves at this point Jackson said. Toronto Sun recently dropped plans to start a second English language newspaper in Montreal citing a study that indicated the lack of a sufficient advertising base for such a paper. Reuter | TORONTO SUN EXAMINING POSSIBLE U.K. TABLOID |
Integrated Generics Inc said its wholly-owned A.N.D.A. Development corp Subsidiary has signed a letter of intent with underwriters R.F. Lafferty and Co Inc and S.J. Bayern and Co Inc to raise three mln dlrs through a unit offering. The company said each unit would consist of two common shares priced at about five dlrs each and a warrant to buy another share at 6.50 dlrs. Integrated said it would retain a controlling interest. Integrated said proceeds would be used to finance the development of prescription drugs on which patents expire. Reuter | INTEGRATED GENERICS <IGN> UNIT TO GO PUBLIC |
Balladur maintains 1987 2.5 pct inflation target after February 3.4 pct year-on-year |
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A 250 dlr spot charge will be added to the New York cocoa futures July delivery contract starting Wednesday March 18 the Coffee Sugar and Cocoa Exchange said. The March delivery ceases trading March 17 making May and July the two nearby unlimited positions. Previously March and May were unlimited. The margin requirement for a May or July position will be 1000 dlrs--750 dlrs original margin plus 250 dlrs spot fee. Reuter | CSCE TO PUT ADDITIONAL MARGIN ON JULY COCOA |
Shr 23 cts vs 42 cts Net 1387000 vs 2532000 Revs 80.5 mln vs 82.6 mln Reuter | <COOPER CANADA LTD> YEAR NET |
Media General Inc said its February revenues were 53.1 mln dlrs up from 49.1 mln dlrs a year before. It said newspaper revenues rose to 21.3 mln dlrs from 20.2 mln dlrs newsprint to 14.6 mln dlrs from 14.5 mln dlrs broadcast 14.6 mln dlrs from 11.5 mln dlrs and others 3631000 dlrs from 3621000 dlrs. Intercompany sales of 1021000 dlrs up from 752000 dlrs were included. Media General said year-to-date revenues rose to 104.0 mln dlrs from 95.9 mln dlrs a year before. The company said year-to-date newspaper revenues were 41.7 mln dlrs up from 39.8 mln dlrs newsprint 29.9 mln dlrs up from 28.0 mln and broadcast 27.5 mln dlrs up from 21.2 mln dlrs while other revenues fell to 6896000 dlrs from 8566000 dlrs. Intercompany sales rose to 2034000 dlrs from 1639000 dlrs. Reuter | MEDIA GENERAL <MEGA> FEBRUARY REVENUES RISE |
Shr 27 cts vs 22 cts Net 1866000 vs 1476000 Revs 33.0 mln vs 30.3 mln Nine Mths Shr 71 cts vs 57 cts Net 4828000 vs 3857000 Revs 92.0 mln vs 89.0 mln Reuter | TAB PRODUCTS CO <TBP> 3RD QTR FEB 28 NET |
Shr 32 cts vs 18 cts Net 1200466 vs 545670 Revs 8.2 mln vs 6.4 mln Year Shr 1.52 dlrs vs 27 cts Net 4972683 vs 1046460 Revs 33.3 mln vs 23 mln Reuter | MARKEL CORP <MAKL> 4TH QTR NET |
Qtr ends Jan 31 Shr two cts vs two cts Net 78537 vs 72364 Revs 626942 vs 640030 Reuter | SCIENCE ACCESSORIES CORP <SEAS> 1ST QTR NET |
Worldgroup Cos Inc said it was sued by two companies operating three franchised travel agencies for violating franchise and trademark agreements. The suit filed in U.S. District Court for the western district of Missouri seeks 385000 dlrs for losses and almost 9.2 mln dlrs in additional damages. The suit alleges the sale of the franchises by IT Financial Corp of Tulsa to International Tours Inc a Worldgroup unit violated franchise trademark and other agreements. It also claims the defendants have conspired to restrain trade and violated federal racketeering laws the company said. Worldgroup said the claims are unfounded and that it plans to defend itself vigorously. In addition to Worldgroup and IT Financial K mart Corp <KM> was named as a defendant Worldgroup said. Worldgroup has agreements with K mart to market travel services. Reuter | WORLDGROUP <TOURA> SUED BY TRAVEL AGENCIES |
French adjusted February trade deficit 400 mln francs vs January deficit 2.5 billion |
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Members of the Baltic International Freight Futures Exchange (BIFFEX) are to be balloted at the end of this week on whether it will merge with the London Commodity Exchange or come under a new umbrella of Baltic futures exchanges a BIFFEX official said. The final decision will be left with the BIFFEX board which will meet at the end of this month he said. Last week three exchanges currently trading on the Baltic Exchange the London Potato Futures Association the GAFTA Soya Bean Meal Futures Association and the London Meat Futures Exchange instructed legal advisers to implement a merger. Reuter | BIFFEX MEMBERS TO BALLOT ON MERGER |
Machine Technology Inc said it expects to report a second quarter loss of 13 to 17 cts per share on sales of about 4400000 dlrs. A year earlier it lost 139000 dlrs or three cts per share on sales of 4271000 dlrs. The company said it booked over six mln dlrs in the quarter and its backlog has risen 35 pct since the end of its fiscal year leading it to expect improved results in the second half. Reuter | MACHINE TECHNOLOGY <MTEC> SEES 2ND QTR LOSS |
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