The Salt Lake Tribune BUSINESS T January 31, 2002 Martha Stewartto Stick by Kmart (a i Faulty Sensor Forces Nissan Sentra Recall 2001 model years Wednesday because a faulty sensor may cause the engine to stop while the car is being driven, a U.S. agency said. The automaker's dealers will replace the sensor, which controls engine timing, the National Highway Traffic Safety Administration said. The agency released its list of November recalls to alert owners who may have missed company notices, ee aes eee problem, said Dean Case, spokesman for the thinkin Fran 116,000 vehicles, he said. Chrysler to Offer Rebates on Autos Top label for the troubled discount chain may eventually shop for new home BY ANNE D’INNOCENZIO ‘THE ASSOCIATED PRESS NEW YORK — The future of Kmart’s crown jewel of brands, Martha Stewart, hinges on a decision by the bankruptcy judge overseeing the discount chain’s reorganizatio1mn. The judge may be hard-pressed to set Stewart’s company free from its lucraKmart, given the importance of her line ofhome and garden products to any turnaround by Kmart. If a release is herself says she isn’t seeking — the question remains: Which merchant would offer thebest home for the 4,000 prod the Martha Stewart Everyday label? Martha Stewart Living Omnimedia, where Stewart serves as president and chief executive, said in a statementlast weekit will stick by its contract and continue to sell its products to Kmart for the “foreseeable future.” But the companyleft open the possibility that the label the top sales generator at Kmart, posting $1.5 billion in sales for fiscal 200i— might have to eventually find a new home at other mass retail outlets. Plenty of stores would be interested, industry analysts believe. But the ment with Kmart cannot be easily ended, they said. “The we is they have a binding contract,” said Douglas DETROIT — In an effort to stay competitive, Chrysler is offering rebates of up to $2,500 onselect 2002 vehicles. The program, which follows similar incentives offered by Ford Motor Co. and General Motors Corp., runs through Feb. 28. Rebates of $2,500 or reduced financing are available on Dodge and Chrysler minivans, excluding the eC, eL and eX models; the Jeep Grand Cherokee, excluding the Sport model; and the Dodge Durango. The reduced financing ranges from zero percent to 4.9 percent, a spokesman said. Rebates of $1,500 are available on the rest of Chrysler Group’s lineup of cars, trucks and sport utility vehicles, except the Dodge Intrepid, with $2,000 rebates, and the Jeep Wrangler, with $500 rebates. Arthur, an BY SETH SUTEL ‘THE ASSOCIATED PRESS NEW YORK — AOLTime WarnerInc., the world’slargest media company, reported a wider net loss for the fourth-quarter Wednesday because of write-downs to its about an advertising slump but then recovered. AOL Time Warner posted anetloss of$1.8 billion, wider than the$1.1 billion loss in the same period a year ago, due mainly to a write-down of$1.7 billion reflecting the decline ofits stakes in Time Warner Telecom Inc., a telecommuniHughes Electronics Corp. The loss also includes $45 million in merger-related costs. Withouttheeffect of those charges, the company repore a 14 percent increase MayBe Oly ‘Must-Hav before interest ae taxes, depreciation and ’ binding contract. They’re locked in.” to report 2001 results in February. Last year, retail sales for the Martha Stewart Everyday line were up 25 percent from a year ago, according to the company. DOUGLAS ARTHUR Morgan Stanley analyst Clearly, Stewart and Kmart’s partnership, begun in 1997, has proven to be mutually beneficial. The brand has analyst at Morgan Stanley. “They're locked in.” Only if Kmart fails to make payments can Martha Stewart break its contract, something it might be tempted to envision. A day after Kmart filed for bank- ipated eee of Kmart stores. The reexpected to include a aehundreds ofstores and a in the company’sstrate- aa distinguish Kmart from rivals Wal:Mart Stores Inc. and Target. There is uncertainly about how Martha Stewart will fit in. Some 80 percent to 90 percent of Martha Stewart Living’s retail revenues come from Kmart sales. For 2001, retail merchandising is expected to bring in $33.8 million,or 11 percentof the company’s total revenues, according to Arthur. Heestimated total sales at Martha helped Kmart attract droves of customers that might otherwise not shop there, and it helped catapult Stewart’s mer- amortization, the indicator that analysts watch most closely. The rise was due largely to higher profits from Warner Bros. and cable TV systems. While company spokeswoman Elizabeth Estroff declined to comment on whether Stewart was in talks with other retailers, analysts are ready to place their bets. The mostlikely place, some analysts say,is Sears, which is aiming to further develop its home area. Sear’s exchairman Arthur Martinez is also on the board ofMartha Stewart. Signing on with Target would be tricky, since the merchant already has an exclusive arrangement with houseware designer Michael Graves. And Kohl's, which has a focus is on apparel, wouldhaveto redo its merchandising to make room for Martha Stewart. Nevertheless, “Martha is definitely reviewing her options,” said Walter Loeb,president of Loeb Associates,a retail consulting firm. “The name is so well-known andis transferrable.” Revenue in billions* Earings reports for the fourth quarter. See? Philip Mortis: The tobacco company eamed $2.16 cents a share,up from $2.01billion, 9 00 corte¢ Northrop Grumman: The defense giant eamed $131 m covered by the endof the day, closing down 30 cents at $26.40. AOL's stock has declined by abouthalf since the middle of last year as investors became disillusioned es $12.59 with the company’s prospects where advertising revenues $0.197 fell 7 percent in the fourth chief investmentstrategist at Ehrenkrantz King Nussbaum. Overall,the results were in line with a preliminary earnings announcementthe com- pany made to investors on Jan. 7, when AOL also AT&T Corp.: The telecommunications lost $1.39 billion, or 39 cents a share, compared with a loss of $1.64 billion, or 45 cents a share, a year before. .. Playtex Products Inc.: The maker of Playtex tampons and Mr. for growth, especially at AOL, quarter. “Advertising is still somewhat slow,and there is a concern that 2002 may not be the recovery year that was once thought,” said Hyman, $1.28 pershare,up from $125million, or $1.73 per share, for ‘the same quarterlast year. $43 Bubble bubbie bath eamed $3.55 million, or 6 cents a share, up from $1.78 million,or 3 cents, in the year-earlier quarter. * Percentage changes compared to year-ago quarter. ‘Mike MillerThe Salt Lake Tribune lowered its financial targets of this year, and revenue and said it would be more conservative in its forecasting going forward. Investors had criticized the company for failing to meet aggressive growth targets last year. AOL repeated its earlier forecast that it expects no growth in revenues norpre- growth of5 percentto 8 percentfor all of 2002. For the fourth quarter, AOL Time Warner — whose businesses include CNN and Time Warner Cable — managed to tax profits in the first quarter post a 4 percent increase in revenues despite an advertis- ing slump that has affected the entire media industry. BY JUDY FAHYS THE SALT LAKE TRIBUNE HEBER CITY — Stylin’ Soldier Hollow hats have turned out to be some of the hottest dang-near-contraband of the 2002 Olympics. The cowboy hats routinely sell out at the Heber Valley Chamber of Commerce building and the Wasatch County Olympics store although they do not havethe Salt Lake Orga- “We put the hatband on the hat when we sell it,” she said. About 125 of the hats, made by Bailey Hat Co., already have been sold, and the chamber has stocked up with hundreds more. Folks upin the Heber Valley consider the hat part of their fices into a new,11,500-square- foot office at 6995 S. Union Park Center, Suite 300, Midvale. The move involves approximately 60 people. Coldwell Banker Residential Brokerage was created in July 2001 as the rebetween Cold- pol 7,286 sactions more than $1billion in sales. Q Hamlet Homes reported 250 home closings in 2001, a record for the Salt Lake Citytown homes and single-family homes ranging in price from just less than $90,000 to about $150,000. It operates eight com- munities along the Wasatch Front. a Union Pointe Construction Corp.of Salt Lake City on March 2 will be presented a National Safety Excellence Award from Associated Builders and C Inc. Q 360House.com,a Salt Lake City-based subsidiary of Xvariant Inc., said Edina Realty of Minneapolis signed an agree- " ment to use 360House.com as Quarterly Snapshots Nonetheless, the company’s shares tumbled as much as 10 percentin active trading on the New York Stock Ex- Coldwell Banker ResiBrokerage has den tial merged its three corporate of- chandising empire. AOL Time Warner Reports Wider Net Loss cations company, and in Heber Hat Stewart Omnimedia were $301.3 million “The reality is they have a its preferred provider of virtual tours and digital photography. Using 360House.com, Edina will provide agents with ways to market properties using virtual tours.It will also be able to track how many consumers are taking the tours. Q Big-D Construction of Salt Lake City has completed the Elizabeth Dee Shaw Stewart Museum at the George S. Eccles Dinosaur Park in Ogden. The16,000-square-foot museum at 1544 Park Blvd.will serve as an educational facility and feature natural history artifacts, dinosaur and quarry exhibits, and hands-on displays for children. MSNInternet Access Expansion Delayed REDMOND, Wash. — Microsoft Corp. said Wednesday that an expansion of its MSN fast Internet access service will be delayed another few months as it works to replace partner GDPIncreases 0.2 Percent Thanks To the Government @ Continued from B-4 Government spending varies considerably from quarter to quarter andis generally not viewed as a good indicator ofthe economy’s health. President Bush welcomed thepositive GDPreport, but also urged Congress to pass an economic stimulus package, saying “we cannot take growth and job creationfor granted.” Nonetheless, many forecasters believe the economyis on the cuspof a recovery. Recent reports indicate that consumerconfidence is increasing and that some factories are seeing an increase in orders. The GDP report added another positive sign: Business inventories fell sharply, suggesting that companies may order new goods to restock their inventories in the coming months. The Fed noted the recent increase in signs Eerie Et aoe eaterra economic activity is beginning to firm. However, the Fed expressed uncertainty about how ae consumer and business demandwill 5 Maat sistas Genaeda recovery tos luggish. “Robust growth probably won't get going until the second half of the year,” s . Up 1.3M New Users Signs Unicom China said Bruce Steinberg, chiefeconomistat Merrill Lynch in New York. Unemploymentis likely to continue to rise, as it typically does at the beginning of a recovery. Workers will lose jobs as previously announced layoffs takeeffect, and companies will be reluctant to make new hires until they’re certain thata recovery is under way. Mostanalysts believe the Fed is done cutting rates after dropping the targetfor its federal funds rate from 6.5 percent last January to a 40-year low of1.75 percent bythe endoflast year. Cuts in the federal funds rate, which is what banks charge each other for overnightloans,lead to declines in many other interest rates. That boosts the economyby encouraging consumers and businesses to spend oncredit. month ended the 20th day ex( captorJaneDecember at 1.2 The caren a 27 mt lion subscribers by the ent December, an increase ofCa percent from Nov. 20,it cell phoneusers, according to it added 1.3 million new users over 41 days ending Dec.31. on its Web site. Unicom reports user numbers for every governmentstatistics. Wednesday that Ken Garff. milli month on average.pele China is the largest wireless market, with 145 million * HONG pe — China Inicom ., the nation’s oes putepee operator, Enron Corp. and to improve service. Microsoft had planned to have the service available for sale to 40 million to 45 million U.S. households by the end of March.Instead that will happen around the middle of the year, said Lisa Gurry, an MSN product manager. Microsoft nowoffers the fast version of its Internet access service in 33 U.S. markets, compared with a planned 45 by the end of October. Microsoft needs a nationwide fast access plan because sales of slower, or “dial-up,” Internet services are declining, while sales of fast plans are growing. igen Orem vt xaweg 06 Enet side) in Craw or toll free 1.888.323.5869 801.714.2300» and expect it to be an even hotter item when competition begins at the Soldier Hollow Nordic skiing venue. An emblem of the Western show,a trip on the Heber steam train and a horse-drawn sleigh ride, The hats, which come in taupe and black, also may prove useful: They have ear- se, flaps and repel use year, Nordic World ae. recently, during Attorney General John Ashcroft’s visit to ibeghee hart Toue yaa) Tey Grom cra a Petri st) engartf.com )