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Show , i To submit a press release, announce a new business, or comment on Utah County business, cail Business Editor Travis Jacobsen during normal business hours at Or -' 344-256- The Daily Herald Tuesday, October 31, (BUSS tG U1TA NYSE AMEX S&P 500 1 ,294 Declines: 1 ,005 753 Volume. 3.052 3881 09 690 Business Highlights NEW YORK (APj ; Corporate raider Carl Icahn is teaming with investor Bennett LeBow in a bid to force a spinoff of RJR Nabisco Holdings Corp.'s food business from its tobacco holdings. The attempt, confirmed Monday, would break apart a company that was involved in America's richest buvout, the $25 billion 989 c'eal that took RJR Nabisco private . Underwear CHICAGO (AP) maker Fruit of the Loom Inc. plans to cut its U.S. work force by 12 percent, eliminating 3,200 jobs, to streamline operations and boost profits. ; The move, announced Monday, Reflects mounting pressure on apparel manufacturers to produce merchandise for the increasingly cutthroat retail industry. The Chicago-base- d company said it will close six plants and reduce operations at two more by the end of the year. Dow RENO, Nev. (AP) Chemical Co. must pay $10 million in punitive damages to a woman who blames her ill health on leaky silicone breast implants. The Washoe District Court jury, which on Saturday awarded Charlotte Mahlum $3.9 million to compensate her for her losses, deliberated only 45 minutes Monday before awarding (he additional damages as punishment for wrongdoing. CAMBRIDGE, Mass. (AP) Soft Key International Inc.. in an effort to become a leading player in the educational software market, launched an unusual hostile takeover bid for a rival and bought another outright in deals valued at nearly $1 billion. Soft Key on Monday made a hostile bid worth $606 million for The Learning Company, a Fremaker of softmont. Calif..-base- d ware that agreed in August to be acquired by Broderbund Software Inc. It also announced a friendly agreement to buy Minnesota Educational Computing Corp. in a stock swap worth $370 million. General DETROIT (AP) Motors Corp. has signed a joint venture deal in which it aims to build up to 100.000 midsize Buicks a year in China with Shanghai Automotive Industry Corp.. a major Chinese automaker. agreement, announced Monday, is the culmination of two years of negotiations between GM and Chinese 'officials, who also were talking with Ford Motor Co. The on the project. It envisions investment of $i billion or more in engine and transmission with car producin China, plants tion to beein in 1997. I "late Monday. ft London dealers fixed a recommended gold price of $382.40 per 'ounce at midmorning. up from $382.30 late Monday. In Zurich, the bid price was .$382.40. up from $382.25 late iMonday. In Novell announced that revenues for its Business Applications Division would drop below $59 million, 'down from $134 million in the fourth quarter of 1994. (The Business Applications Division is comprised of the fourth-quart- Stocks rise led by tech, transports NEW YORK (AP) Stocks rose Monday, led by transportation and technology shares, continuing a rally that began Friday. Transportation stocks rose amid a strong show ing in economically sensitive shares, which tend to move sharply with changes in the economy. Joseph DeMarco, managing director at HSBC Asset Management Americas, said cyclical issues were stronger after the government on Friday reported a strong 4.2 rise in the third-quartgross domestic product. The Dow transportation average rose 24.31, or 1.28 percent, to 1,928.55. It was led by Burlinsiton Northern Sante Fe, up 78 to 82 12. and Delta Air Lines, up 58 to 65 38. Technology stocks, which have led the market higher for most of the year, continued their march higher. Microsoft rose 2 34 to 102 34 in Nasdaq trading. A number of technology stocks rose following positive comments from Sound-Vie- th By JOHN D. McCLAIN Associated Press Writer American WASHINGTON workers' wages, salaries and benefits rose 2.7 percent in the year ended Sept. 30, the tiniest increase on record, showing employee compensation was failing to keep up with inflation. The Labor Department said today the increase in its Employment Cost Index was the smallest since it began tracking costs in 1981. But while compensation remained slack, the report suggested price increases also were being held in check. The index is considered one of the beat gauges of wage inflation pressures since compensation repof the cost resents about tw f of w analyst Richard Whittington in this week's Barron's. On the Big Board. these rose 33 Hong Kong, gold marketing juggernaut of meeting Although o suite products Market share in 4. it the first nine months: 1994 Lotus 8.9 Lotus Novell 3.8 a Microsoft 87.2 1995 Lotus 5.9 s. M Novell Microsoft 8.5 85.6 Strategically. Frankenbei . termed this "the last action" in series of steps designed to retui:: Novell to its networking roots. ". Now. if Novell management cap just find the right suitor with (he vision, patience and bankiolj-requireto restore the coreAoju-Perfee- t products to their forini ! position as market leaders. W hether or not such a scenario is realistic is difficult to predict. But it would sure make a like Halloween treat for a lot of Nov JTi employees. i Totals are rounded. Source: PC Data AP As a result, sales of WordPerfect products stalled this summer. And with the dramatically successful launch of Vm95. sales within Novell's ttf' officii Novell . and Quafro Pro spreadsheet businesses acquired just last year. A key reason is Microsoft Corp.'s dominance in suite products that combine various office programs. PC one declined to name any putenir..' obvious Novell Ji buyers. it been in discussions with utle--twfirms. For its part. Novell hopes have the divisional assets sold l" Jan. 30. 1996. At risk are potentially as mair. as 1.800 jobs, although Now' officials refused to speculate ho . many positions would likely lost without knowing the actu details of any future sale. Regardless of the purchase:., however, it is obvious that 4her-wi- ll he a new reduction in for. prior to the sale, a point reinforce by Novell CEO Bob Frankenhe: in a v ideo tape prepared for Nou employees and shared with Ik. media Monday. Novell will abandon the market for PC productivity software, including the WordPerfect word processor between WordPerfect founder Alan Ashton and former Novell CEO Ray Noor-d- a led to a quick series of meetings and the eventual acquisition of WordPerfect in mid-199The combination of the two software giants created some obvious overlapping of capabilities, and by the end of 1994, Novell executives began the process of trimming a process that would personnel lead to an additional eventually 1,750-perso- n reduction in force by early spring of this year. Although dramatically different following the acquisition, the word processing remnants of WordPeras fect appeared WordPerfect 6.0 and PerfectOffice 3.0 were introduced to rave reviews. Unfortunately, the positive press was not enough to make up for Microsoft's overwhelming hype and the media hoopla this spring and summer about the "pending release" of Windows 95. the 32-boffspring of Windows 3. . past months. Red- mond. This realization led to a 1,000-perso- n layoff at WordPerfect in December 1993. But it was not enough. So it was that in March 1994, a face-to-fa- Overwhelmed Business Applications Group fell even further. And recent Novell proclamations have revealed that the soonest we can expect to see Windows 95 versions of WordPerfect and PerfectOffice is February 996. So it w as that back in July. Nov ell executives laid the groundwork to re foe us on its historical direction of networking software. Apparently, the final decision to put the Business Applications Division up for sale was reached -- .1 marketing communication consultant that special ires in hightech and health care clients. Davit! Points welcomes column ideas n: or via the Inicnx-adpolitis altatech.iom. t Employee compensation fails to match inflation;.! er Financial er PerfectOffice suite, WordPerfect, Presentations and InfoCentral.) In retrospect, the rise and subsequent fall of WordPerfect has been astounding. In 1983, WordPerfect had sales of less than $10 million, as did Novell. By late 1993 and early 1994, WordPerfect sales were on a run-rat- e of more than $1 billion per year. included Micron Technology, which rose 2 78 to 72 12: and and Texas Instruments, up 2 34 to 70 18. Stocks held on to their gains throughout the afternoon despite some volatility in the bond market. The Treasury bond finished point, yielding 6.35 up percent. 30-ye- ar it for what it called "merger costs and litigation settlement" but declined to say how much stemmed from either development. the For Capital quarter. CitiesABC earned $127 million, or 83 cents a share, as revenue rose 13 percent to $1.57 billion. pilars Metals Maihet The dollar LONDON (AP) was higher today against most major currencies in European trading. Gold prices rose. The U.S. currency vvas trading at 102.15 Japanese yen. up from 101.61 yen late Monday. Other dollar rates in Europe ;compared with late Monday included: 1.4116 German marks, up from 1.4041: 1.1405 Swiss francs, up from 1.1345; 4.9025 Trench Cranes, up from 4.8804; 1.5809 Dutch guilders, up from 1.5737; 1.587.25 Italian lire, down from 1.595.00; and 1.3360 Canadian dollars, down from 1.3617. The British pound was quoted ,at $1.5767. down from $1.5773 I NEW YORK (AP) Capital CitiesABC Inc's profit slipped 5 percent in the third quarter because of a settlement of a libel suit by tobacco maker Philip Morris Cos. and costs associated with its planned merger with Walt Disney Co. Capital CitiesABC deducted $47.3 million from its pretax prof- - should have weaved, and decided to back IBM's OS2 instead of Microsoft's Windows 3.0 with the first release of WordPerfect 5.0. By the time WordPerfect executives decided to back Windows 3.x, it had lost nearly a year, and a great deal of market share, to the the within mis- calculated, bobbing when they As darkness descends upon the Wasatch Front tonight, ghouls and ghosts and goblins will be out in force seeking treats in lieu of delivering tricks. But for many Novell employees, Halloween tricks arrived a day early as Novell executives announced Monday the intent to sell much of the remnants of WordPerfect Corp. to the highest bidder. When I first learned of the announcement at my home early yesterday, I must admit I was shocked, but not surprised. For although the software prize fighter once known as WordPerfect Corp. had not been knocked out, it had been knocked down several times and now staggered drunkenly, battered, bruised and beaten in the software ring. How badly WordPerfect had fallen was revealed recently when NYSE Diary Advances: But company management By DAVID POLITIS Special to The Daily Herald NASDAQ Unchanged: Total issues: 1994 avg. comp. vol.: 352,288,590 ?t? Halloween tricks arrive early for Novell employees: UtttS October 30, 1995 DOW (Industrials) 195 cents to $382.56. Silver was quoted in London at $5.35 a troy ounce, up from S5.33 a troy ounce late Monday. NEW YORK ( AP) Spot metal prices Monday.Alu-minu- 74.3 cents per lb. Oondon Metal Exch. Mon. Copper $1.3200 Cathode full plate. U.S. destinations. Copper - $1.2580 per lb. NY Comex spot Mon. Lead 44 cents per Ib.Zinc - .5059-.521- 3 per lb. delivered. Tin - $4. 850 Fri. Metals Week composite price per lb. Gold - $382.15 Handy & Har-ma- n (only daily quote). Gold $382.50 troy oz., NY Comex spot month Mon. Silver - $5.3 10 Handy & Harman (only daily quote). Silver - $5,318 per troy oz... NY Comex spot month Mon. Mercury - $250.00 per 76 lb flask. New York. Platinum - $41 1.50-5- 4 13.90 troy o.., N.Y. (contract). Platinum - $408.00 N.Y. Merc spot per troy oz. Mon. non-ferro- m -- -- -- a product. Consumer prices were rising at a 2.8 percent annual rate during September. In another government report today, the Commerce Department said sales of new homes rose 3.3 percent in September to the second highest level of the year. Sales totaled 727.000 at a seasonally adjusted annual rate, up from 704.000 in August. Howev er, sales rose only in the Midwest and West, falling in both the Northeast and South. Many analysts had expected employ ee cost increases in the year ended Sept. 30 to match the 2.9 percent advance in the 12 months ended June 30. Although the economy grew at 4.2 percent annual rate during the third quarter, job growth has been relatively modest. That, combined with continued business restructuring and downsizing, has provided workers with little leverage to seek increased wages and benefits. The index showed wages and of salaries nearly three-fourtrose 2.8 pertotal compensation cent in the year ended Sept. 30, even slower than the 2.9 percent advance a year earlier. Wages and salaries gained 3 percent during the year ended June 30. The cost of benefits inched up 2.2 percent, also the smallest gain on record. It was dow n from a 3.8 percent advance in the year ended Sept. 30, 1994, and from the 2.7 percent increase in the 12 months ended June 30. The department said benefit cost increases were held down by declining health insurance costs to employers. The overall index rose a seasonally adjusted 0.6 percent in the third quarter after a 0.7 percent gain during the previous three months. Wages and salaries increased 0.7 percent, same as the previous quarter. Benefits advanced 0.4 percent, down from 0.7 percent in the second quarter, but up from 0.2 percent gain in the1 quarter ended last March, the smallest ever. Although the quarterly figures are adjusted for seasonal varia- a robust New home sales hit record level WASHINGTON (AP) Sales of new homes rose 3.3 percent in September to the second highest level of the y ear as low mortgage rates continued to make housing affordable for many Americans. But regional activity was mixed, with sales up in the Midwest and West but down in the Northeast and South. The Commerce Department said today that sales of single-famil- y homes totaled 727.XX) at a seasonally adjusted annual rate, up from a rev ised 704.000 In August. The August total was below the 7I().(XK) initial estimate. For 1995. September sales were the second only to a 792.000 rale in July, w hen they jumped 9.5 percent to 792.000. the highest since 823.000 in December 1993. But analysts had said that level could not be sustained and expected a decline the follow ing month. Although many analysts had predicted a slight rebound in September, the increase was above well expectations. Observers believe housing activitv will level off as winter tions. the annual numbers are not. The report said employment costs for workers in private indus- - New home sale Seasonally adjusted annual rate, thousands ofun-t( I i.j K- J OND 1994 Sept. '94 JFMAM 1995 AugJJ5 Sept. '95- , approaches. t Still, the housing indu'try remains relatively strong, .thf result of low mortgage rates--. September marked the fourth . straight month of abfuv 700.000 sales, the first time that has happened since Septembe-r.-Decembe993. inorK Thirty year, fixed-rat- e gages averaged 7.6 percent in September. r ' . . increased 2.6 percent dunfig the year ended Sept. 30. ;fK0' the smallest gain on record. try When is it time to take a breather? weeks, however, that great hitter in the trenches tomorrow." When I was a young salesman, I learned rehab won't get his seven or eight hits. The Charlie. "No lessons the way. many among from an old dog was when not to program ends here. Thanks for the He'll get two or three. He's in a slump. Other weeks, he's on a hot call a time out. putting lesson." I streak and every thing seems to fall be to not was he nuts thought Inexperienced salespeople have in for a base hit. The ball has eyes, a tendency to celebrate a victory off for which every fielder. He's able to awhile, eluding by goofing stitches on the ball as I the count was exactly what vvas doing one each afternoon. Coming off the golf pitch comes to the plate. That's the week he gets 12. 13 or course l ran into an old timer who 15 hits and becomes a .300 hitter. was a competitor of mine from the The great athletes can't explain envelope wars. I their hot streaks any more than "Charlie. only hope the big can order you just landed w asn't one of they explain their slumps I said. one customers." But thing is for sure, the my "Hell. no. I couldn't sell a box smart ones never take themselves Positive Struggles of 10 env elopes to a chain-lette- r out of the lineup when they 're "in freak." the one." "Then why are you out here I'll never forget the story of beating the daylights out of the ball out calling on customers, but the Wally Pipp. the Yankee first basemore I thought about it. the more I man who told the instead of beating the bushes?" manager one when "Because you're cold, realized I was the one who had his day. "I've got a cold. Let the kid you're cold, and when you're hot. priorities wrong. In sales, athletics, play." The kid was Lou Gehrig, you're hot. I need to loosen up a gambling and the stock market, we and he was not about to make little. need to get that win streak calculate success by the percentPipp's mistake. That was the first going again. You still think you've ages. day of Gehrig's run of 2.130 conBut by focusing on the percentgot a hot putter?" secutive games played. He didn't Thus challenged, we took a couages, we lose sight of the way take himself out of the lineup until ple of spins around the putting those percentages are achieved: he was dy ing. in but green, where he relieved me of not in an orderly way When a manager givs to the bursts. in and in stretches about $35. streaks, it isn't to congiatulate his mound, baseball tremendous I'm A player rejuve"Thanks, Harvey. nated. Now if you can just give me will hit 300, which means he gets pitcher on a job well done. It's to the name of that customer you three hits every 10 times at bat. or determine whether he's losing it. and it's time for a change. were so worried about. I'll be back seven or eight hits a week. Many Harvey Mackay 1 POOR COEY Streaks are not confined viduals. They occur when groups of people act collectively, even when those people do not agice among themselves. The price ot a stock represents the conHicling opinion of thousands of buy ers and sellers. Yet the major moves in ilk stock will be concentrated over a handful of day s. Don't hold-q- e the numbers, but I recollect reeling somewhere that the I'aiBCtis "SO20" rule applies here, tocf.'illie SO percent of significant action - vvl! the stock's price movement take place during only 20 crjej'ceni ' of the trading day s. If you're in sales, think jhtick to the best streak you ever had. .What did you do differently that iOe$k? don't know if ball play ers or than are more supci'siitio.1 the average person, but thel successful ones in each field tend to look at the conditions that wvrc present when they were on a hot streak and try. try. try not to change them. Lnlike a ball play "en.jlvj ever, if you're in sales, and yUjre on a hot streak, it's reconmiencfaJ ycui change your underwear. Mackay 's Moral: Prens ,otir luck. Hard work is a viriV.j jijut smart work is a paycheck. j "" " to-m- j. ;- I safos-peopl- e |