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Show The Salt Lake Tribune BUSINESS MICENTERPIECE, B-2 Market 6 Indicators Dow Industrials STOCKS, B-3 A NYSE V MAY 28, 1999 MDILBERT, B-5 Fred Meyer, Kroger Merger Approved N _| Mj MIMUTUALS, B-4 B FRIDAY _ FTC blessing means Smith’s nowpart oflargest U.S. chain THE SALT LAKE TRIBUNE Fred Meyermustsell two Smith's in Cheyenne, Wyo. Co. and Smith’s parent company, Fred MeyerInc. of Portland, Ore. Krogerwill pay Fred Meyer shareholders$8.5 billion in Kroger stock — one share of Krogerfor each share of Fred Meyer —and assume a little more than $5 billion in debt. measuresthe stock performance operate 2,200 stores in 31 states Kroger — will be sold. It will go to one of Kroger’s largest competitors, Albertson's Inc. of Boise Utah's Smith's Food and Drug Centers Inc. is now part of the largest grocery chain in the country The Federal Trade Commission on Thursday approved the $13.5 billion merger of Cincinnati's Kroger The Bloomberg | Utah Index — the new company will gen: regulators required that only eight stores be sold to satisfy anti-trust concerns. The combined company will Only one Utah store — City Market in Price, ownedby BYPHIL SAHM Utah's Top Performers Despite the mergersize Stove formats will not change, and the num erate a projected $43 billion in annual sales — federal and one in Sierra Vista, Ariz., to allay antitrust con. cerns, while Kroger mustsell twoFry’s supermarkets in Arizona and two City Markets in V ‘The mergerwill have little impact on Utah Smith’s and Fred Meyer stores, representatives of both companies said Thursday. The Smith’s and Fred Meyer ban nersstill will grace store tops. “Kroger allows tremendous autonomyin making the best decisions for our customers,” Smith’s spokeswom. Smith's nonfood purchasing will yo through Med Meyerin Portland, and approximately five to 10 em ployees inthat department will relocate, Gilford said Smith's will continue opening newstores in Utah am elsewhere asit sees opportunities, she said Fred Meyer spokesman Ken Thrasher said the pany’s Tucson and Phoenix stores will Fry's name because of similar store for Kroger stores Utah customers arenot likely to see n immediate difference But cost savings gained by joiningthe two companies operations are expected to save money See SMITH’S FOOD, Page B-2 an MarshaGilfordsaid of the state's major publiclyheld companies. Jitters Shove Dow Down a 235-Point Cliff Ns Ee Stocks tumbled as renewed worries of inflation and higherinterest rates sent the market back into retreat. ZCMIFocuses Efforts on Stopping Flow of Red Ink Ninth-worst one-day drop in points is a 2.2% decline ZCMI will continue cutting costs at the nation’s oldest department store after a year during which the compa- ny lost $8.46 million, or $3.93 a share. BY EILEEN GLANTON The company in January said it expected to lose $9 million in fiscal 1998 and would not pay a quarterly dividend. Its recent annual report confirmed the expected losses, show- THE ASSOCIATED PRESS NEW YORK —Stocks tumbled Thursdayas renewedworriesof infla- tion andhigherinterest rates sent the ing 1998 sales camein at $247.5 mil- market back intoits retreat from ree: ord heights. The Dow Jones industrial average fell 235.23, a 2.2 percentloss, to close at 10,466.93. It was the ninth-worst one-day point drop ever, and the steepest since Sept. 30, 1998, when lion — $10 million below the year before. Company President Richard Mad- sen told shareholders at the annual meeting Wednesdaythatlast year’s results were not acceptable. He said the store is doing everything it can to restore profitability. the blue-chip averagefel ee eee = ne Provo’s University Mall is nearly finished and the company’s Layton Hills Mall renovation provided good results, companyofficials said. Despite the current rough waters, ZCMI has moved up ona list of the nation’s largest departmentstores. In 1988, an industry ranking listed ZCMI as the 69th-largest department store chain in the country. The latest ranking puts the store in the 18th ofothers. although their losses were compara tively modest. The Standard & Poor's 500 fell 23.35 to 1,281.41, and the Nasdaq composite index fell 8.02 to 2,419.15. Photos by Al Hartmann/The Salt Lake Tribune Wilford Lieberpeerscritically at a load cf down andfeathers, which will be tested for quality at his International Down and Feather Laboratory in Salt LakeCity. Most importantis “fill power,” the cubicinchesfilled by an ounce of down. Just this week, the Dow has tumbled 362.35 points, or by 3.3 percent. The steepselloff Thursday madethe pre vious day’s 171.07-point gain seem like a distant memory “Yesterday's market looked really good, but without a follow-through it’s hard for stocksto pick up steam said Barry Berman, head trader for Robert W. Baird & Co. in Milwaukec Some of theselling came from 11 Bennett to Lead Tech Team Utah Sen. Bob Bennett will head a Republican team that will address issues affecting the U.S. technology in- dust vestors cashing in on Wednesday Featherfriends separate good stuff from the fluff rally in advanceof the Memorial Day weekend. But the strongestfactor, an alysts said, was the continuing fear that a rekindling of inflation wil prompt the Federal Reserve to raise interest rates BY SCOTT NOLAND ‘THE SALT LAKE TRIBUNE New government figures on th Senate Majority Leader Trent Lott, R-Miss., named Bennett, R-Utah, to serve as chairman of the High-Tech Outreach Team. “The high-tech industry has had a significant and positive impact on our There's pampering yourself, then there’s being a sucker — paying too muchfor “luxury” that isn't all that lux. country’s economy,” Lott said. “With urious. So how do you make sureyouareget- its potential for further expansionin ting what you pay for? Wherecanan en- jobs, wages and international trade, it will continue to affect more Americans every day. ‘Establishment of this new task comforters are among the most popular forcesignals clear recognition by the economy kept the market off balance Thursday. The Commerce Depart mentsaid the U.S. economy the first quarter, exacerbating fear that the Fedwill raise rates to preve the economy from overheatin| That depressed bond prices thusiastic emptor look for his caveat? Fortunately, there is a small nicheof ing the yield of 30-year ‘re self-indulgence thatis protected: Down andpractical ogy industry has been, andwill con: tinue to be, key to America's econom ing to 5.84 percent from 5 Wednesday luxury itemson the market The Commerce Department rey also revealed news that could I heartened the market. An inflat gauge tied to the gross dom prod While you may not know eiderdown ic growth,” said Bennett, whois also chairmanof the Special Com: mittee on the Ye 000 Technology Problem. uct rose a modest 1 1 percet porateprofits showed a big re in the first three months of this ye Profits rose at an annual ri billion after having fallen at a rate of $5.3billion in the fourth quar 1998 Corporate profits ha the background of the in (harvested fromthenests of wild Icelandic eider ducks) from chicken feathers, thereare experts who do Andthe best of themare right here in Sens, Spence Abraham of Michi Salt LakeCity gan and Bill Frist of Tennessee will co-chair the team. Other senators joining the task In 1978, Wilford Lieber andhis wife, tablishedthe International her Laboratory(IDFL) at force are WayneAllard of Colorado, John Ashcroft of Missouri, Conrad Burns of Montana, Slade Gortonof Washington, Kay Bailey Hutchison of ‘Texas, Connie Mack of Florida and John McCain of Arizona. the behest of the government andindus. try leaders eager to protect themselves against unscrupulous competitors. Utah retailers were frustrated by See DOWN, PageB-5 Security National Deal grew al robust annual rate of 4.1 percent these days — and noone has to worry about throwing their money away oninferior feathers. U.S. Senate that the nation’s technol: watch. Higher rates profits Pencil point gives perspective to close-up view ofa quality goosefeather and wisp of downat the lab. Both were extracted from a raw shipment typ @ Consur acquired the majority interest in Geneva Wants to Fire Up 2nd Furnace; Pollution Rating Is So-So of Orlando, Fla. Finances: No moneyfor expansion in the present market Security National Financial Corp., Salt Lake City holding company, has a Southern Security Life Insurance Co. The deal is valued at more than $12 million. Security National madethe acquisi tion by buyingall thestock of anoth er company, Consolidare Enterprises Inc., which owned 57.4 percentof Southern Security, said Scott M Quist, Security Nationalvicepresi dent Southern Security, licensed to do business in 14 states, reported assets of $83 million and revenues of $15 million in September Theacquisition will increase Secu rity National's insurancebusiness by 30 percent, Quist said. Security National ownslife insurance companies cemeteries, mortuaries and a mort gage companey i recorddecline. Broader market indicators also fell Getting Down to Business of Down spot. But the move up comes less through growth than the disappearance of some chains and the merger 20. But in percentage terms, it was far from a Remodeling of the ZCMIstore in r JOR COPY protection, can only hopethat will be — At existing production levels — Gene BY STEVEN OBERBECK THE SALT LAKE TRIBUNE Geneva Steel Co. would like nothing better than to fire up another of its blast furnaces to increase raw iron produc. va produced 466,600 tons of steel dur. ingits second quarter ended March 31 — the Vineyardmill's operations con tion for its steelmaking operations. Asthings stand now though, a second tinueto eat up cash question for the Utah County steel mill It would put too much strain on limited financial resources. million, or $5.98 per share blast furnace operation is out of the We'll go to twoblast furnaces when our orders and the price of steel in creases,” said Dennis Wanlass, Gene va's chief financial officer The company, which currently is operating under Chapter 11 bankruptcy \ For the six-month period ended March 31, Geneva reported a loss of $92 Geneva fought long and hard earlier this year to get hold of enough cash and credit to keep its doors open After filing for Chapter 11 bankrupt cy on Feb. 1, a U.S. Bankruptcy Court See GENEVA, Page B-2 Environment: Plant rated in middle of U.S. makers by EDI BY JIM WOOLF THE SALT LAKE A ranking of the “pollution-preven tion performance” of 16 American steel plants puts Utah's GenevaSteel in the middleof the pack The analysis by the Environmental Defense Fund calculated the amount of certain wastes released to the air ‘ound and water in 1996 for each ton of steel produced. The cleanest mil produced the smallest amountof waste per ton of steel Joseph A. Cannon, chief executiveof ficer at said Thursday he was surprised the Utah County steel mill didn't rank higher intheanalysis. t Geneva Steel is known through: the industry as a company that regula ly does more than required mental federal regulations, said ( non, and the mill's coke ovens are used as an example of cleanliness Environmental Protection A He said Geneva’s ranking may have been hurt by the large quantity of non toxic nitrate wastes. Those wastes are genera by aplant that uses bacteria to break downtoxic ammonia in waste water before it is released into Utah Lake I can assure you that you'd rather See PLANT, Page B-2 ‘ |
