OCR Text |
Show n Financial Markets c C5-C- 7 ;Q Mutual Funds C6-C- 7 O Local Business C7 The Daily Herald Wednesday, October 16, 19SS, Market in brief October 15, 1996 ! NYSE DOW(lndusmals) li lE dm. jf om, AMEX 9802 ess lm Brussels A. Paris NASDAQ Frankfurt Sydney 23633 Hong Kong 1.9 Advances: 1,094 New highs ; Declines: U16 ; Unchanged: i Total issues: 841 191 38 561,211,450 1995 avg. comp. vol.: 422,909,640 ! London 25 I Zurich 3013.7 New lows 3,251 Composite volume: Tokyo Li21029 NYSEDian 0.3 0 2 MARKETS Amsterdam shares general Biussels Frankfurt DAX Hong Kong Hang Seng London FT TOO Pans CAC-4Tokyo Nikkei in the 500, having grown 1.136 past five years. The company, in founded 1991, currently 21 high-tec- h employs marketing and public relations specialists. They counsel some of the world's leading high-tec- h companies such a,S Lexmark. International. Symantec and Attachmate. This was the first year Network Associates was eligible for the Inc. 500 list. To be eligible for the Inc. 500, companies have to be independent and privately held through li95 and must demonstrate a sales in crease from 1994-199- Sydney All Ordinaries Zurich Credit Suisse Milan MIB na not available, holiday. new company-wid- e policies to lower overall operating expenses and improve manufacturing margins. The labor force reductions are at Pen's Salt Lake City; Tustin, Calif.; and San Jose, Calif., manufacturing plants and were accomplished through layoffs of direct and indirect workers as well as administrative staff. : 5. '. SALT LAKE CITY Evans arid Sutherland Computer Corp. (Nasdaq: ESCC) Tuesday reported siles, earnings, and new orders for the- - third quarter of 1996. All results are unaudited. ' Total sales for the quarter were $33.7 million, unchanged from the $33.7 million for the third quarter of 1995. Prior year results includ-e- J e revenue of $3.8 million from settlement of contractual claims. On a comparable basis, revenue increased 13 percent. I For the nine months ending in revenue was $91.3 September, million compared to $78.0 million for the nine months of 1995. an increase of 17 percent. one-tim- PROVO Blender's Juice Co. of Provo and Orem will soon be !f renamed. "Zuka Juice." The company is changing its name so it can receive a national trademark. ' The first juice bar w as opened in Provo one year ago and 25 new stofes are expected to open along the Wasatch front within the next year. Ballard MedDRAPER ical's (NYSE: BMP) net sales for its; fiscal year ending Sept. 30. were $103,525,000. compared to $84,152,967 in fiscal year 1995, which represents a 23 percent increase for the year. The company had net income of $25,603,000 for the fiscal year 199.6. compared to $20,942,616 for fiscal year 1995. This represents an increase of 22 percent over fiscal year 1995. Earnings per share for the year were 88 cents, compared to 74 cents for fiscal year 1995. SALT LAKE CITY Pen Interconnect Inc. (Nasdaq: PENC ! and PENCW) is completing moves to reduce labor costs by 5 percent and will continue to implement 1 OREM Novell Inc. (Nasdaq: NOVL) Tuesday announced the worldwide availability of Group-Wis- e 5, the company's premier intranet application. Novell officially launched GroupWise 5 at a milestone launch event last month in New York City, coinciding with the product's release to manufacturing. Novell shipped GroupWise 5 to its worldwide distribution channels last week. GroupWise 5 is an extended system that is the first in the industry to include full document and image management capabilities as part of a new Universal Mail Box. GroupWise 5 is available now Novell authorized through resellers worldwide. Information about Novell's complete range of products and services can be accessed on the World Wide Web at http:www.novell.com. PROVO ICentral Inc. Tuesday announced that they will give away ShopSite 2.0, along with hosting on ICentral's server, in a free trial offer. This offer will allow the user to use a full ShopSite software package, even receiving orders, for fourteen days. ShopSite software includes an easy to use interface, powerful page editing tools, a complete shopping system, and a full statistics package. Interested merchants, designers, or web sue developers may signmore info at up or obtain http:www.shopsite.comcgisales LawnLife Corp., a Utah company with offices in Salt Lake City, Ogden and Provo-Orehas earned recognition as one of the 25 best and most progressive lawn care companies in North American this year. Criteria for inclusion on a list compiled by Landscape Management magazine included quality of customer service and visibility within the industry as measured by participation and contribution to professional organizations. UTAH Briefly f I plans to cut U.S. work force Texas Instruments DALLAS Iijc. reacting to an 85 percent drop ir profits and a collapse in prices fqr memory chips, disclosed a plan Tuesday that could cut its U.S. wjork force by as much as 5 percent. electronics The Dallas-base- d giant is asking about 5,300 employees to retire early to help the company cut costs. Company officials declined to speculate on what the company might do if not etjough people accept the offer. JTI said its profits fell to $44 million, compared to $289 million ir the period. After sqme special charges related to an acquisition, the company said it wjus $148 million in the red for the J 1 year-earli- er quarter ended Sept. 30. TI said it expects that fourth-quartprofits also will be reduced because of the costs associated with the early retirement program, depending on the number of people who accept the deal. er The downturn in the semiconductor industry also will force TI, r, the world's seventh-largeto reduce capital spending next year. The company is expected to spend $2.3 billion this year with a major factory expansion at the company's headquarters off LBJ Freeway. Last year, it invested $14 billion in new plant and equipment. st After PHILADELPHIA off of unfriendly fighting years suitors, Conrail, the Philadelphia freight railroad, has accepted a friendly $8.4 billion merger proposal from CSX Corp. that would create the world's largest conglomerate. The headquarters of the new corporation, which does not yet have a name, would be in Philadelphia. It is expected to have 52,000 employees, annual revenue of $14 billion and operating units in all segments of the cargo and logistics industries. The next biggest freight transcreated by portation company the merger last July of Union is Pacific anci Southern Pacific expected to generate annual revenues of $10 6 billion. Regulators are expected to take il at least a year to review the proposal. Crafted behind the scenes over the last two weeks by the chief executives of both companies John W. Snow, 57, of CSX and David M. LeVan. 50, of Conrail the deal's announcement caught rival companies and Wall Street analysts off guard. The plan calls for Snow to remain as chief executive for two years after the deal closes. LeVan would be chief operating officer of the parent company and chief executive of the combined rail unit, which would own 29,645 miles of railroad in 22 states and serve every major market east of the Mississippi River. After that, LeVan would succeed Snow as chief executive of the parent com- tle" on two other big recent Rail merger creates mega freight carrier CONRAIL chip-make- CORPORATION Created by the government in the 1970s to buy bankrupt railroads of the Northeast and Midwest. Corporate holdings include CSX Transportation Inc., Sea-Lan- d Sold to the public in 1987. Service Inc., CSX Inlermodal Inc. and American Commercial Lines. Headquarters: Philadelphia Route: 1.000 miles. Headquarters: Richmond, Va. Route: 18.645 miles. Employees: 23,5 10 pany. The initial reaction among analysts was positive. "It is an entirely sensible and merger," said Charles M. Vincent, a rail analyst for PNC Institutional Investment in Philadelphia. But the reaction was chilly at Norfolk Southern Corp., of Nor- - TV, The routes MontrealQ Terms of the deal, subject to shareholder and regulatory approval: Chicago O CSX would pay $8.4 billion in cash and stock for Conrail. O Annual 29.645-mil- e system. ' ' CDetroH - r'Z-, - ' ' , ' -- ' " rtv iNwr1, Philadelphia Baltimore Washington . revenues of more than $14 billion, serving shippers in 22 stales with a 5s,on Buffalo O St. Louis j , ONorfolk "- O Memphis O Charleston $92.50 per Conrail share based on the recent trading price for CSX common stock. Q Q Jacksonville ' New Orleans O Miami APWm. J. Castello folk, Va. widely considered to be the nation's best-ru- n freight railroad which has tried at least twice to buy Conrail. Several il industry sources hailed the marriage as a defensive move against Norfolk Southern that could be good for Philadelphia. If Norfolk Southern acquired Conrail, Philadelphia would lose many jobs and yet another major corporate headquarters, one analyst said. CSX-Conra- Several analysts and rail executives predicted that Norfolk Southern would, as one put it, "do its best to booger up the deal." At the very least, they expect Norfolk Southern to try and make it more expensive for its archrival, CSX. Bob Voltman, policy director for the nation's largest shippers' group, the National Industrial Transportation League, said he was surprised by the merger announcement. "We had hoped that dust would be allowed to set phone companies put on hold by appeals court By ED SCHAFER Associated Press Writer Handing a major setback to the government, a federal appeals court has temporarily put on hold new rules for opening up the telephone industry to competition. Phone and cable TV companies had asked the 8th U.S. Circuit Court of Appeals to temporarily block the rules until they can challenge the legality in the same appeals court in January. Federal Communications Commission Chairman Reed Hundt immediately attacked Tuesday's decision and said the federal agency would ask the Supreme Court to lift the stay. "The Eighth Circuit's stay throws a monkey wrench into the carefully designed congressional machinery for introducing competition into the local exchange market," Hundt said. Opponents hailed the decision as a vindica Dow retreats from record high, remains above 6,000 Stocks NEW YORK (AP) retreated from record heights Tuesday, but the Dow Jones industrial average lemained above 6.000 for a second straight day despite a grueling ride. The Dow, an index of 30 blue-chi- p stocks, rose 40.62 Monday to 6,010.00, its first close above 6.000. It rose more than 30 additional points in the early going, then slid more than 70 points as traders sold to cash in on the rally and wondered how much strength the aging bull still has. By the end of trading, the Dow had recovered much of the lost ground, finishing down 5.22 at 6,004.78. Some broad market indicators also fell, but the Nasdaq composite indexes improved on Monday's record close. The market's runup to record heights was credited to new hopes for sustained, noninflationary economic growth that will continue to drive corporate earnings higher. Individual investors, who have poured billions of dollars into stocks, also have kept the rally alive, despite fears they would bail out if stocks started slipping. Many stock market watchers date the start of tlie latest bull market at Oct. 1, 1990, when the Dow ended a dry spell and began rising from above 5,(XX) on 2,365.10. It clu-eNov. 21, 995. and rose to 5,778.00 on May 22, before rough sailing set in. d 1 CSX-Conra- Employees: 47,900 The deal rail- one between the road mergers Burlington Northern and Santa Fe, and the other between the Union : Pacific and Southern Pacific. will He said his members study the formal proposal, to be filed with federal regulators early next year, "for signs of diminishing of competition. Snow predicted that CSX and Conrail would satisfy shipper demands for competitive service by granting other railroads the il tracks. right to use Union Pacific used that approach to overcome similar concerns about its merger last summer. LeVan had insisted until Tuesday that Conrail, formed 20 years ago from the bankrupt remains pf six northestern railroads, had: a strong future as an independent company. He said he "continues to believe that there are good opportunities for Conrail, that it could continue to supply good service to. its customers and value to ks shareholders." But he said recent mergers; irj; the west and other changes demand that Conrail extend fts geographic reach. Merging witk CSX offers "a fantastic opportune ty" to do that, he said. Under the plan, CSX would pay $92.50 in cash for 40 percent of the fully diluted shares of Conrail's common stock and employee stock; option preferred shares. CSX wilj trade stock for the rest, giving Conrail holders 1.85 shares of CSX for each share of Conrail they' hold. The CSX rail unit is based in Jacksonville, Florida. It has not been decided where the combined rail system will be based. , Neither man would speculate on what the new corporate name might be, except to say it won't be a hyphenated name. ..'. "We're being very careful and deliberate about that," said LeVan. "We need something that expresses our future." The companies CSX-Conra- Local Highlight s PROVO Network Associates ranked 220 on the 1996 Inc. HOLCOMB freight-transportati- 2143 62 1774 78 0.8 S&PMidCap J. Newspapers Knight-Ridd- Previous close Milan Amsterdam Al. rsatTsnl AT! 1 By HENRY Performance of key stock markets Percent change S4P500 Conrail accepts merger deal from CSX tion of their position that the rules were unfair. The three-judg- e panel wrote in its opinion that the FCC seemed to have overextended its jurisdiction into pricing of telecommunications services, which it said was an issue for states to decide. The FCC issued the rules in early August to provide guidance for companies in complying with the Federal Telecommunications Act of 1996. The act removes competitive barriers between telephone, cable and other communications companies. "What it means is that the FCC's efforts to stack the deck against local phone companies has been rebuffed," said William Barr, general counsel for GTE Corp. Local phone companies argued the rules would mean they would have to subsidize of the entrance of competitors into their markets. They worry that the large competitors will turn around and sell their network services at lower prices. Cable TV companies were upset because they felt the rules allow telephone companies to offer a new form of video service before they could. In their appeal, opponents argued that the ' FCC rules take too much power from the states over setting local rates. They said states should set their own rates because national standards ; do not take into consideration differences in ; geography, population and network configura- tion, among other things. The appeals were filed in separate courts but consolidated in the 8th Circuit. 1 Several telephone companies, including Sprint Corp. and AT&T Corp., favor the FCC rules, saying that the local companies have not shown that they would suffer immedi- ate irreparable harm. The rules would allow t these companies to compete in local telephone 5 ) markets. long-distan- Effects of GM's CAW strike continue to spread throughout U.S., Mexico DETROIT (AP) Nearly 4,000 General Motors Corp. workers in the United States and Mexico were sent home from assembly and parts plants as the flow of supplies from GM's striking Canadian subsidiary dried up. More layoffs were expected. More than 5,900 assembly and parts workers at GM in the United States and Mexico have lost their jobs since the Canadian Auto Workers union's 26,000 members went on strike Oct. 3. Negotiations between the union and GM Canada were to resume today in Toronto. No talks were held Monday because of the Canadian Thanksgiving holiday. GM today credited for nearly doubling its profits during the quarter that ended in September. The company said it earned $1.27 billion in the three months, which was above expectations. The latest plant slowed by the k strike was the Cadillac assembly plant, where ,350 hourly workers were laid off Monday. The rest of the plant's 2,104 workers could be laid off as early as today, GM spokesman Tom Klipstine said. Hamtramck-niad- e Cadillacs use GM Canada Ltd. from of parts Further U.S. plant slowdowns and closures are expected as supplies cost-cutti- Detroit-Hamtramc- 1 run out. Another 1,661 workers were laid off Monday from Delphi g Automotive Systems Mex- in and Ohio plants Michigan, parts-makin- Shock wavo of a striko Repercussions of the Canadian Auto Workers strike against General Motors of Canada Ltd. are being felt as far away as Mexico. workers affected by the stnke: r V Canada London, Ontario Windsor, Ontario ( 2,260 V Woodstock, Ontario Ste. Therese, Quebec St. Catharines, Ontario Oshawa, Ontario Jl. r w ii 13,570 V Mexico t aL2 Chihuahua i 2,036 ? "...330 r' Juarez 121 Meoqui Guadalupe 487 Casas Grandes Linares 623 villa Cerritos 155 Ouauhtecmoc Ahumada ' I' 5J:; ; 1 r..rr: Michigan "" 1,050 " TOhb x 5,690 VvO tfwYotk Tonawanda -- "..I ; Detroit 1.350 Ypsiw 1,790 Flint 61 800 Grand Rapids 50 200 Livonia 50 500 Saginaw 12 t t -- r ? ft y ;V , Source. General Motors - ico. In addition, 850 workers at the Ypsilanti transmission plant were idled, as were 50 at a Flint parts plant. Last week, 1,050 workers at a GM engine plant in Tonawanda, N.Y., and 950 Ypsilanti employees were laid off. At issue is the Canadian union's demand that GM limit the practice of "outsourcing" parts work to independent, usually nonunion suppliers. CAW President Buzz Hargrove says GM will back down as it begins to lose sales of its CK series pickups, produced in Oshawa, Ontario. "That's the most costly aspect hot-selli- ap. ' of the shutdown for GM," said Dennis' industry analyst DesRosiers. "It's greenmail rather than blackmail." ;;! contract Meanwhile, talks continued between the Unit-ed Auto Workers and GM in Detroit, while about 73 percent of Chrysler Corp. employees ratified their new thnie-- . year contract. The contract, similar to one negotiated and ratified at Ford Motor Co., includes new job security provisions, pension improve- ments. and a $2,000 lump sum payment followed by 3 percent raises in the second and thrrd U f years. low-lev- ' el UAW-represent- . mi: |