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Show H Financial. Markets B9-1- 1 B Mutual Funds B10-1- 1 U Local Business B11 t8 23 Tuesday, October 15, 1996 The Daily Herald mm fthrfcet in brief ; XJOWilnJusmalst NYSE Performance of key stock markets Percent Jk. 1 Previous close J change Amsterdam Milan 0.4 56720 SP500 AMEX gfr2. 0.3 Brussels x- -1 r 1773 35 0.2 2147.12 Sydney 2336 8 2686.03 0.3 1.1 Hong Kong Tokyo 2096816 NYSE Diary 0.3 Advances: 1,203 New highs inclines: 1,092 Unchanged: 945 Total issues: 3,240 London 156 Zurich 4028 22 38052 0.2 MARKETS Amsterdam 391,084,710 IWSavg. romp, vol.: 422,909,640 j CBS-ne- Frankfurt. DAX Seng London FT 100 Pans Hong Knng Hang CAC-4- 0 Tokyo Sydney Al Orcftnanes Zurich: Credtf Susse. Milan MiB na not available, i-holiday Nkei. Local Highlights Micron Electronics !.I HI j Inc. announced this week that it has tiled a shelf registration state- iitent with the Securities and (SEC). Lxchango Commission Under tin' shell legislation state- -' incnt. the company may offer from tHiie to time m the future common stock andor debt securities and certain shareholders may offer from time to time in the future common stock with a combined public ottering price of not more !fi;in $325 million. A registration statement relating 'b) these securities has been filed -.wiiii the SEC but has not yet Jvcoine effective. These securities Jtiay not be sold nor may offers to buy be accepted prior to the time Statement 'jhc;5 f. Registration becomes etlective. ! ; ; OKEM Oil well Inc. is open4 its 2th Jiffy Lube Service ing Tenter on the Wasatch Front with a lihboh culling Saturday, i Representatives from the Orem il jThambcr of Commerce and Inc's Robin McCuIloch will at the 800 N. State St. location !fir .fhe ribbon cutting at noon. The grand opening celebration Ivill start at K) a.m. and includes ;Jjavings for remote control Pen-i- ! toy race cars, free hot dogs and .soil drinks, gifts from the radio station from 10 a.m.-- l p.m. plus free Jiffy Lube prizes and a .special draw ing for the ceremonial iihbon made from 1(H) $1 bills. ; Oil-ve- - SALT LAKE CITY Equity Co. (Nasdaq: EQTY) reported h.( income for the first nine months of 1996 of $1,369,860. or 5! J per share, on total rev enues of S 1. 18.357. This compares to a 'net loss for the first nine months ijf J995. which included a properlof y. impairment charge, $C 1.086.647). or $(.09) per share, on revenues of $9,928,595. ! 1 Third quarter 1996 net income w'as $548,804. or $.04 per share, vn 'revenues of $4,205,700, compared to a net loss for the third garter of 1995 of $( 1.258.857). or $(.10) per share, on total revenues of $3,217,405. .Z Included in the 1995 figures is a one-limh charge for oil and nas property impairment in the amount of $2,274,057 ($1,433,338 after tax), which arose from the Company's adoption of SFAS 121, Accounting for the Impairment of I 1 e, non-cas- r Knight-Ridde- Newspapers The Dow Jones industrial average celebrated its centennial year by breaking through yet another 1,000-poibarrier Monday, closing above 6000 for the first time. The index of 30 blue-chi- p corporations ended the day up 40.62 points at 6010.00 after flirting w ith the milestone for more than a week. Record profits at Chrysler Corp. spurred the rest of the stock market to follow the Dow upward. Two broader measures of stock prices the Standard & Poor's 500 and NASDAQ also set records. Composite Index In a world of more 401 (k) plans and less confidence in Social Security, record stock prices are good news for Wall Street and Main Street. or about 30 percent Forty million Americans own shares in mutual of U.S. households funds, according to the Investment Company trade group. Institute, a Washington-base- d About half the mutual-fun- d assets are in stocks; funds. the rest are in bond and money-markSo far this year, the net amount of money invested in stock mutual funds alone has much of it increased by almost $162 billion representing retirement nest eggs. In July, investors wondered whether their hearts could survive the Dow's plunges as pundits changed their minds daily about the prospects for inflation or recession in the U.S. economy. Now there are new record highs. Has the stock market gone mad? Not at all, say investment experts. Stock prices largely reflect Wall Street's Long Lived Assets. Cash flow from operations for the first nine months of 996 was S5.()6l,(X)6, an increase of 69 over 995 cash flow of $3,000,560 for the same period. er 100-poi- Moreover, the recently quickened pace of Dow makes more sense if you vie w it in terms of percentages, according to David Sowerby, chief economist and senior portfolio manager for Beacon Investment Co. in Ann Arbor. Jones record-settin- g Going from 1 000 to 2000 is difficult because increase, he points out, and it took the Dow 15 years to make that climb. But accomplished in moving from 5000 to 6000 less than a year is only a change, and stock prices historically have improved an average of 10 percent per year. For those reasons, O'Neill says he expects to see a 7000 Dow close by January 1998. Chris Forte, first vice president of Prudential Securities in Birmingham, Mich., said he looks for 7000 by April 1998. Of course, there will be plenty of peaks and valleys along the way. Jill Travis, president of Amelia Earhart Capital Management in Southfield, Mich., isn't convinced inflation is dead. She has watched commodity prices rise since 1995, leveling off only in the past two months, she says. She's also keeping an eye on oil prices and wages; nothing pops Wall Street's bubble like inflationary trends. Most reputable financial advisers caution against putting all your eggs in the stock market. You should always have emergency cash that can get you through three to six months of a layoff or other crisis. And of course, there's the other golden rule of equity investing: Buy low, sell high. Still, nothing is certain except the fact that the market never improves forever. At some point, it has to correct itself and fall for a while. And election-yea- r politics always adds a degree" of uncertainty to the market. it's a 100-perce- nt nt "And looking forward, we have what we call the Goldilocks syndrome: The economy is not too fast and not too slow; it's just right." Patrick O'Neill, PaineWebber - al Reserve Board decided to leave interest rates alone. interest The market likes rates. "And looking forward, we have what we call the Goldilocks syndrome: The economy is not too fast and not too slow; it's just right," says Patrick O'Neill, senior vice president of PaineWebber in Livonia, Mich. "That means companies can continue to show reasonable earnings growth and, with low interest rates and low unemployment, consumers can purchase homes and cars with the expectation of having a job and being able to make the payments." stable-to-declini- nt 1 of the Dow Jones Industrial Average History closes since 1896 Democratic administration administration 1 Larson-Davi- s PROVO Inc. LDII) (Nasdaq: Monday announced the results of operations for the fiscal year ending June 30, 996. As anticipated, the company received in excess of $9,000,000 in equity proceeds from the exercise of rights to acquire stock during the noted fiscal year. The reported losses are expected and firmly based on the strategic product commercialization plan. SALT LAKE CITY Transportation (Nasdaq-NN- W!& Monthly mKepublican Hit) Market dips sharply, reacting to tech shares and overall corporate earnings IS, The Dow Jones indu strial average, first published on May 26, tracks the performance of the stocks of 30 big U.S. companies. The Dow initially reflected the manufacturing companies thai dominated the American economy in the l$(K)s. But over the years, the index has been changed to include retailers, banks and other senite firms. The 30 stocks in the Dow today are AT&T, AlliedSignal. Alcoa, American Express. Bethlehem Steel. Boeing. Caterpillar. Chevron. Cocu-ColDisney. DuPont. Kodak. Exxon, General Electric, General Motors. Goodyear Tire & Rubber, International Business Machines. International Paper. McDonald's. Merck. Minnesota Mining & Manufacturing. J.P. Morgan, Philip Morris, Prin ter & Gamble, Sears, Texaco, Union Carbide, United Technologies, Westinghouse and Woolworth. They are selected by The Wall Street Journal, which is published by Dow Jones & Co. Gulf War Iraq invades Kuwait Vietnam War Berlin tails wall V Simon Pres. Reagan Services Inc. assassination Korean War SIMM) announced today revenues, earnings, and earnings per share for the fourth quarter and fiscal year ended September 30, 1996. Revenue for the fourth quarter increased 59 to $31.1 million, compared with $19.5 million for the corresponding period in 1995. Pro forma net earnings increased 159 to $1.3 million or 27 cents per share, compared to $.5 million or 22 cents per share for the corresponding quarter a year ago. For the fiscal year ended September 30, 1996, revenue increased 34 to $101.1 million from $75.2 million in 1995. Pro forma net earnings in 1996 increased 151 to $3.9 million or 88 cents per share, compared to $1.5 million or 67 cents per share for 1995. and PENCW) is completing moves to reduce 'abor costs by 15 percent and will continue to implement new companywide policies to lower overall operating expenses and improve manufacturing margins. The efforts are expected to have immediate positive effects on operations and will play a major role in establishing new levels of profitability in fiscal 1997 (October-Sept- ember). The labor force reductions are at Pen's Salt Lake City; Tustin, Calif; and San Jose, Calif, manufacturing plants and were accom- plished through layoffs of direct and indirect workers as well as administrative staff. Chevron Corp., said the company does not tolerate or encourage discrimination against women. The jury was expected to begin sometime this week and last several months. Under the settlement, one woman from CITC was awarded $1.3 million, another $500,000. The other two were awarded $200,000 each. The women Nancy Vandell, Laurie Nardinelli, Cynthia Herd and have since Claire Anne Lewis left the company or been laid off. Vandell, Nardinelli and Herd said they fiied the sexual discrimination lawsuit on behalf of 750 other women after finding that female employee accomplishments routinely went unrecognized. Lewis joined the suit as an individual plaintiff. attempt Iran hostage crisis Nixon resigns Pres. World War II Neil SEC World War Armstrong walks on the moon Pres. Kenned' assassinated created Agreement to end I Bosnian Cuban missile crisis fighting Prohibition repealed John Glenn orbits the Earth Ml Women's srltrage amendment War Spanish-America- n Tet 0 R)K cUises banks Panic of IW7 The Great Depression Soviet Union dissolves J .... Pres. Israeli filiated f offensive Pfj VS. bombs Hanoi Sputnik I P Arab oil embargo Gold standard dropped Titanic sinks ion J Congress passes New Deal Federal Reserve established t "Black Monday" market crash Wright's first flight Pres. McKinlev assassinated U.S enters war 1V29 Crash Pearl fihf Harbor Market closed SALT LAKE CITY Pen Interconnect Inc. (Nasdaq: PENC Driofly Female employees sue Chevron ; mid-summ- er mom-and-p- M I KV 1 HARRISON I lXK) I9IO ROOSEVELT McKINLEY I 920 WILSON TAFT ft t3C) I 94() 1 950 TRUMAN HOOVER I i 1970 W.O i I i i II 9KO I 1J'X m.imitm? EISENHOWER ROOSEVELT COOLIDGE HARDING II . 1 JOHNSON KENNEDY REAGAN NIXON CARTER Source: Dow Jones 1996 mm CLINTON BUSH APWm. J. Castelto Problems still ahead for ADM after proposed settlement Archer DECATUR, 111. (AP) Daniel Midland's proposed $100 million deal with the government to end a price-fixin- g probe would still leave the agricultural giant with unresolved problems, including scores of lawsuits. In a statement Monday, ADM said it agreed to plead guilty to charges of "anticompetitive cond duct" in markets for two products: citric acid, used in soft drinks and detergents, and lysine, a feed additive used to make hogs and chickens bigger and leaner. ADM agreed to pay fines of $70 million in the lysine case and $30 million in the citric acid case, corn-derive- SAN FRANCISCO (AP) More than 750 current and former remale Chevron employees are suing the oil giant, contending it unfairly hired, promoted and gave lop projects to men over women. The closely watched sex discrimination suit follows last year's settle$2.2 million ment on related sexual harassment claims. Thai settlement was one of (he largest awards in a harassment ciasc against a major corporation. ; lawsuit, TJio current class-actio- n expected to affect similar suits irgainst other companies, contends Chevron routinely passed over qualified women for promotions mid pave male counterparts salaries as mwth as $80,000 higher. ' Bonnie Chaikind, a spokeswoman for San Francisco-base- d reading of economic tea leaves. Jitters about the threat of rising inflation and interest rates have calmed since July. The U.S. unemployment rate edged up a tenth of a percentage point in September, easing fears that a labor shortage would lead to w age increases. w hich showed signs it And the economy in looked be overheating might that the Feder- cool enough by By CHARLOTTE W. CRAIG et 1 0.3 Brussels: : j Paris Frankfurt j celebrates first close over 6,000 s$ Dow October 14, 19 although a federal judge still must decide whether to accept the proposed settlement. A court hearing was scheduled for this afternoon in Chicago. ADM said the agreement "brings to a close all Department of Justice investigations of alleged misconduct by ADM," including a similar probe involving the corn syrup used to sweeten soft drinks and other foods. But several clouds still hang g over the giant grain- - and includconglomerate, ing the fate of two executives targeted in the investigation and many lawsuits. ADM's statement did not men high-fructo- soybean-processin- tion executives Terrence Wilson and Michael Andreas, who had been told they could be indicted in the price-fixin- g cases. Lawyers for both men did not return telephone calls seeking comment. In a Justice Washington, who official, requestDepartment ed anonymity, said the criminal price-fixin- g investigation into Wilson and Andreas is continuing. Three of ADM's competitors and a top executive from each firm already have agreed to plead guilty or no contest in the lysine price-fixin- g case. All six are scheduled to appear in federal court in Chicago on Friday. ADM shareholders have filed scores of lawsuits claiming mismanagement has harmed the company, and several customers also sued over the alleged seeking millions of dollars. ADM has agreed to pay more' than $90 million to settle some of those suits, although judges still must sign off on most of those set-- ', tlements. ADM lawyer Roy Erickson did not immediately return a telephone message, and a reporter seeking to price-fixing- fc interview him was turned away at the company's Decatur headquarters. A stormy annual meeting could be on tap Thursday, when disgruntled shareholders hope to grill ADM executives about the scandal. Rite Aid buys West Coast's Thrifty PayLess PHILADELPHIA (AP) Rite Aid Corp., the nation's largest drugstore chain, agreed Monday to buy West Coast chain Thrifty Pay-LeInc. for $2.3 billion in stock and debt, its biggest acquisition since dropping plans to buy Revco D.S. Inc. The deal, six months after the Federal Trade Commission scuttled Rite Aid's plans to buy No. 2 Revco for $1.8 billion, further underscores a trend toward consolidation as changes in the health industry heighten competition and squeeze profits at drug ss stores. It would give Rite Aid, which operates in the East Coast and the Midwest, a foothold on the West Coast and more muscle to force deeper volume discounts from drug companies and wholesalers. Rite Aid has made several acquisitions since 1995 to consolidate its position as the No. chain. The latest acquisition would boost its size to more than 3,500 drugstores in 26 states and the District of Columbia. Annual revenue would be about $10 billion. The company now operates 2,809 drugstores that generate about $5.9 billion a year in revenues. Thrifty PayLess operates 1,007 drug stores in 10 states including 27 PayLess drugstores and has annual revenue of about in Utah $4.4 billion. 1 The acquisition is "a good deal for everybody," said Jeffrey Pittsburg an anag Institutional Serlyst with vices in Garden City, N.Y. But the news sent Rite Aid's shares down $ .50 to $34.37 12 cents per share on the New York Stock Exchange. Thrifty shares surged $3 to $21.37 12. Rite Aid said it doesn't expect to have any Goldis-Pittsbur- 1 problems receiving federal antitrust clearance for the deal since it's territory doesn't overlap with Thrifty's. Fear that the company would have dominated the market in several states and drive up prices had prompted the FTC to oppose the Revco deal. |