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Show ° Page B-4 SheSalt Lake Tribune BUSINESS MB NYSE/B-5 MB BUSINESS GLANCE/B-5 @ NASDAQ/B-6 SATURDAY,JUNE 13, 1998 [ere Market Indicators Dow Industrials NYSE ER krPs Pyxa Figures Show Japan Has Fallen Into a Recession Trouble in world’s second-largest economy bodesill forit helpingrest of Asia to recover, and could affect U.S. stocks BYJOJI SAKURAI THE ASSOCIATED PRESS TOKYO—Fornearly a year, Asia has been looking to Japan to lead the troubled region back to prosperity. But with Friday’s news that Japan is mired in recession, the world’s second-largest economy looks like moreofa liability to its neighbors than a potential say- ior. In a much-awaited announcement, the Economic Utah's Top Performers TheBloomberg Utah Index measures the stock performance of the state's major publicly held companies. Planning Agencysaid Friday that the country’s gross domestic product shrank for two consecutive quarters, and that it suffered the first full year of negative growth in 20 years. That bodes badly for the rest of Asia, which has been nursing the wounds of last year’s regionwide currency crisis. Asian countries have been heavilyreliant on Jap- anese investment and Japaneseloans, and they consider Japan vital import market. But with its own economyin tatters and consumer confidenceat all-time lows, Japan will be more tempted than ever to embark on a path of export-led growth — and if it does, the governmentwill be very reluctantto stem the yen’s slide against the dollar. A cheap yen makes Japanese exports cheaper, and thus more popular, overseas. A continued plunge in the yen — itfell again Friday, to as low as 144.75 to the dollar — could spark another round ofregional currency devaluations as Asian countries fight to keep their products competitive in key foreign markets. The yen's weakness, which makesit less profitable for U.S. companiesto sell goods throughout Asia, has weighed on the stock market and pushed the Dow Jones industrial average downby as much as 250 points this Ogden City Mall Owners Decide It Is Time to Sell The owners of the Ogden City Mall CIGNA Investment Management's decision to sell the 18-year-old mall is being hailed by area business leaders and mall management. “It's probably an appropriate step at this point,” said Don Bruey, assistant to Ogden Mayor Glenn Mecham. “T'm looking forward to a revitalized downtown mall. There’s been a track Life Science Association and the Utah Division of Somecity and business officials have been critical of CIGNA’s repeated promises for improvements since it acquired the mall in early 1996. The mall has about 65 tenants, but property,” Mechamsaid. “It’s well- constructed, but it requires some major investment to open it up and make it more customer-friendly.” Al Hartmann/TheSalt Lake Tribune Bryant Marcum, right, wrote the award-winning copyfor the UTA radio advertisment. At left is Andrew Gallegos, marketing manager for UTA, and Amy Hansen, client service manager for the UTA account. 2 Years Out of USU, Ad Writer Rides Bus to Top His radio spot for UTA winsa prestigiousnational award, including a $100,000prize BY GUY BOULTON ‘THE SALT LAKETRIBUNE ager’s mumbled tale of his ringed lips with the somber voice of a wom- Thirsty? Chug Some Milk The idea cameto him while driving home. It ends with “Sucking dinner through a straw blows... . And then Cream o’Weber has hopesof posi- er, He does it to show his independence. His mother forces him to Ateen-agerpierceshis lips togethtioning milk as a thirst-quenching alternativeto sodas, fruit drinks and bottledtea Thedairy-products company has in- troduced “Milk Chugs” to the Intermountain West — small, resealable. plastic bottles of milk designedfor portability and convenience. Thebottles, which can fit in car cupholders feature hold design ed cap and aneasy-to- Thecontainers comeinpints. quarts and 8-ounce multipacks and will include whole chocolate; lowfat wear the lip ring all summer. “You kind of don’t knowwhere it comesfrom,” said Bryant Marcum, a copywriter at the advertising agency of FICN/W&R The idea won Marcum the Radio Mercury Grand Prizelast month for best radio commercial of 1997 — and $100,000 Awards aboundin theadvertising business award-winning advertising agencies are as common as award-winning journalists, But some chocolate; skim; whole; and 2 percent reduced-fat milk They will be available this month in Utah, southeastern Idaho, southern Wyoming, western Colorado and Las awards mean more than others. And The concept was developed by Dean Foods, Cream o' Weber's parent company. Dean Foods,based in Chi- Lite, This year, it went to the Utah ransit Authority Vegas cago, said the new containers, first in: troduced in the Southeast in late 1997, increased pint sales of milk by 77 percentintheir first year of mar ket tests. Cream o'Weber, based in Ogden, employs morethan 200peoplein Utah. Discount Claims Disputed The Better Business Bureau of Utahis contacting businesses that claim they are marking down mer chandise as much as 85 percent and asking them if such savings are exag: gerated Consumers many times save no where near the amount of money re. tailers would like themto believe they aresaving, said Russ Behrmann, president of the Better Business Bu reau The Better Business Bureau, a membership organization that pro motes consumer-friendlypractices has no power to forceretailers to changethe way theyadvertise, "We'd rather educate businesses instead of playing cop,” Behrmannsaid. Although Behrmannhas sent let ters to businesses in a varietyof in dustries, he said many of those exag gerating discounts are in the business of selling hearing aids, mini-blinds and jewelry ’ Twostraight quarters of economiccontraction is the generally accepted definition of a recession. Business and Economic Development, shows biotechnology companies tend to be home-grownoperations that remain where they start up. In other words, if they like where they are, incentives that may motivate other companiesto movearen’t likely to provide enough of an impetus for them to consider moving operations. “These types of companies are very hardto recruit mall.” No time frame has beenestablished The government said gross domestic product, the sum of all goods and services produced in Japan, fell by a steeper-than-expected 1.3 percent in the JanuaryMarch quarter, following a drop of 0.4 percentin the previous quarter. Burgeoning biotechnology firms, most of which pay above-average wages, are considered attractive candidates by economic developers working to lure out-of-state companies to Utah. But traditional recruiting methods seldom work with these types of companies, accordingto preliminary findings of a study under way by University of Utah management professor Kelvin Willoughby. Willoughby’s study, commissioned by the Utah record of nonperformance, andthis is the next-best step to revitalize the for the mall's sale. “The basic propertyis an attractive problem for the world.” Friday’s numbers out of Tokyo depicted an economy in need of seriousfirst aid. BY LESLEY MITCHELL THE SALT LAKE TRIBUNE havehired a brokertosell the facili- ‘help in the selection of a new investment company," according to a CIGNAstatement. depends on Japan, Rubin said. “It is a very serious Research showsit is easier to grow such companies than to lure them ty. CIGNA hashired Cushman & Wakefield, with offices in Denver, to U.S. Treasury Secretary Robert Rubin, speaking in Alabamaon Friday, stressed his concern about Japan's ailing economy. Rubin has been pushing Japan for months to take measuresto stimulate its economy. The fate of the rest of Asia’s struggling economies Usual Recruiting Not Likely to Attract Biotechnology Firms Bargain-hunters helped snapa three-day losing streak on Wall Streetin the final hour of trading Friday, reversing a decline that briefly sent the Dowindustrials tumbling more than 127points more than 20 emptystorefronts, and shoppingtraffic in the mall has dwindled in recent years. week. near the top of everybody's list wouldbeone that gives the creative team $100,000 In past years, the award has gone to the likes of Levi's, Nike andMiller The60-secondspot, first airedlast summer, advertises UTA’s summer ses for teen-agers. head, spoofing publicservicean. nouncements, alternates the teen an whotranslates whathe hassaid. there's my navel ring.” The radio commercial also won a OneShow GoldPencil and a bronze Clio award — twoof the industry's most prestigious awards — in what Marcumlikened to a sweep Marcum was thinking about the UTAspot when the idea came to him. When he got home, he wrote downtheidea, lest he forget it The next day, he started writing the copy ‘I saw it had potential,” Marcum said, “and you never really knowuntil you write it.” He called his brother Brandon, 16 yearsoldat thetime, to get theright wordfor thead's best line. He asked his brother to finish the sentence, “Sucking dinner through a straw Blows," his brother said Marcum reworked the copy the next day, “And I thought, ‘Man, that couldbea great spot,’ hesaid UTAagreed. You sense thing unusual vhen youhave some aid Andrew Galle- gos, UTA’s marketing manager. The advertising campaign is credited with increasingsales of the summerpasses by 21.7 percent, or 1,600, and reversed two yearsof declining sales. At the awards ceremony in New York last month, the crowd laughed throughout the 60-second spot — and broke into wild applause at the line, “Sucking dinner through a straw blows."" About 10 people from other ad agencies gave him their business cards and said they needed to talk. “He'll get lots of calls," said Bob Fotheringham, chairman of FJCN/W&R. All this for someone hired by FJCN/W&Rtwoyears agostraight fromUtahState University The contest, funded byradiostations, prohibits the money from be- ing shared with the agency orits client. Marcum, 28, could share the money with the ad's producer. But, then, he also produced the spot Will Brandon Marcum, who pro- vided the perfect word for the best line in ad, share in the prize? “No, he doesn't get anything,” Marcumsaid. ‘MaybeI'll draw his namethis Christmas and he'll get something good.’ Intel Faces Investigation, Suit Over Treatment of Companies THE ASSOCIATED PRESS HUNTSVILLE, Ala, — With a $1 billion computer business at stake. Intergraph Corp, Chairman Jim Meadlock needed some assurances from Andy Grove, chief executive of Intel Corp. Meeting at 4 trade show, Meadlock told Grove he was worried about In tel’s being the sole supplier of com puter chips for Intergraph's high poweredworkstations Grove said Intel was sensitive to Intergraph's concerns, The conver sation en bama-based Intel gave the Ala company confidential information and its latest Pentium chips beforethey hit the market, As a result, Intergraph abandonedits ownhigh-end chip, Clipper of mistreating Intergraph, Digital Equipment Corp. and Compaq Com- puter Corp, after the companies tried to enforce patents on rival chipsor refused to let Intel use their technology Intergraph andDigital sued Intel previously, Intergraph's case is pending, but Digital settled Intel did not deny FTC claimsthat it tried to place “speed bumps” in front of Intergraph and other com. petitors by denying them technical information and advancecopies of microchips But everything Intel did was with in the law, spokesman Chuck Mulloy tions of such orders, an agency spokeswomansaid Thursday TheIntergraphsuit could be more part on Intel Relations soured when Intel sought patent rights on the Inter: graph-produced Clipperchipand In- tergraph refused. In August 1997 according to court documents, Intel canceled agreements with Inter. graph and demanded the return of from its cutting-edge chip technol, in April a court issued a preliminary Intergraph sued in November, and ogy. “In no way did we damagethe company by stopping shipments of ue to receive today,’ Mulloy said. The FTC action could result in an Judge Edwin Nelson of Birmingham largest chip maker The FTC @ecused Intel this week ful monopolistic practices by Intel like any other customer. Intel, meanwhile, is Nelson's ruling administrative order banning wrong Fines canbe imposedonlyforviola unique challenges biotechnology companies face and howthestate can better support and nurture them. There are morethan 250 biomedicalfirms in Utah employing 12,000 people, according to the Economic Development Corporation of Utah. Biotechnology companies are engaged in research and the manufacturing of products related to the medical, environmental and agricultural industries. The term includes biomedical companies, which are engaged in the development, testing, manufacturing and distribution of products and services related to the health-care industry. Brian Moss, president of the Utah Life Science Association, said many small biotechnology and biomedical companies end up being purchased by large corporations, But even after they are acquired mainly by out-of-state companies, most remain in Utah, he said. “Because of this, they are extremely valuable to the economy,” Mosssaid. Some Auto Shoppers Feel GMStrike Favors Dealers By Creating Seller’s Market THE ASSOCIATED PRESS The ripples from the autoworkers’ strike against General Motors Corp. are reaching dealer show- rooms and some customers areitching to buy before choices dwindle and haggling becomes tougher “Twas concernedabout trying to get one as soon as possible," Sam Martin said ashe tried to decide between a gray and a green Chevrolet Suburban at a Memphisdealership. “In a couple of weeks when theystart selling out, they're goingto be able to get a threaten to shut down GM's North American produc Five years later, lawyers are doing (FTC) complaint against Intel, the gy sector in California and New York, is examining ‘90s, Intergraph has lost $370 million over the past five years, The companyblames those lossesin large Despite the computer boom ofthe all confidential information. microprocessors, which they contin with industries such as manufacturing and call-center operations, two industries that have grown rapidly in Utah in recent years, but mostly dueto relocations and expansions from other states. Willoughby, who also has studied the biotechnolo- higher price for what they'resitting on. It's the rule fractured relationship is at the heart of a Federal Trade Commission all the talking. And the companies Economic Development. Trina McCollum, research manager for the Economic Development Corporation of Utah, said the biotechnology industry in Utah contrasts greatly costly. Intergraph's complaint seeks unspecified damages. said, andit never completelycut off Intergraph or any other customer and much easier to grow,” acknowledges Rick Mayfield, director of the state Division of Business and ruling against Intel, saying Inter. graph had a good chanceof winning, Moreimportantly, U.S, District ordered Intel to treat Intergraph appealing of supply and demand.” Strikes by workers at twoplants in Flint, Mich tion within days, And with GM's inventories whittled down by months of strong sales, supplies of new cars could grow tight within a few weeks, In suburban Milwaukee, Richard Andresen, 60, was shopping for a car at Renner Oldsmobile in Wauwatosaand considering the possibilities with his 37-year-old son, Mark “They could say, ‘This is what we got. Takeit or leaveit,’ " the younger Andresen said Don Spangler, sales manager at a Knoxville. Tenn., dealership, said the United Auto Workers strike that began six days ago at a GM stamping plant in Flint wouldn't affect his two-month stock of 400 cars and trucks for weeks. But hesaid thestrike that began Thursday night at GM's Delphi st complex, also in Flint, could change things quickly. The plant makes parts for every car in the GM lineup. "That's the one that will lock everybody up," Spangler said. "It has not had an effect yet, but it will.”” ‘ POOR |
