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Show She Salt Lake Tribune FRABAT JUNE4, 1999 BUSINE S S E BICONSUMER CORNER, E-2 MIDILBERT,E-2 MIBUSINESS GLANCE, E-3 MISTOCKS,E-3 ml OBITUARIES, E-7 Weider to Post Quarter Loss ‘THE SALT LAKE TRIBUNE Weider Nutrition International inc. said it plans to take a $7 million charge against its earnings during the fourth quarterof its 1999 fiscal year that ended May31. Te] The Bloomber cs i] Utah Index. 4 - Measures the stock performance of the state's major publiclyheld companies. Thechargewill result in the Salt Lake City-based company posting a loss for the quarter, said Joseph Baty, spokes- man for Weider. Weider makes a broad rangeof vitamins and nutritional supplements and over the past eight months has been working toward reducing the numberof ing themin inventory Most of the charge will appear as a write-off of inventory, which means that Weiderwill not be dippinginto its cash, Baty said. The companyplans to reduce the number of products its sells and manufactures to around 700 Weider also indicated it may cost as muchas $5.5 million more to complete the program. David Gustin, Weider’s outgoing pres- ident and chief executive officer, said the company’s revenue growth and mar- But Weideris not saying whetherit will be postinga profit for fiscal 1999 Weider recorded sales of $240 million for the first nine months of its 1999 fiscal year. It would have posted net income of $5 million for the period, but it took several charges against its earnings during the nine monthsthatresulted in a loss of $3.3 million. Forits 1998 fiscal year, Weider re- ported revenuesof $250 million and net incomeof$14 million. On Thursday, Weider also that Bruce Wood, a former president and chief executive officer of $700 million Nabisco Ltd., would succeed Gustin as the company’s president. Gustin will Build Utah Assembly Plant Information-technology continue to struggle to find programmers, systemsanalysts and other people with the skills essential to their businesses. The shortage showsnosignsof abating and continuesto drive up salaries. THE ASSOCIATED PRESS governor met Alberta Aerospace Chairman and CEO John R. MclIntee. NEW YORK — The raging U.S. economy encouraged Americans to go on a shopping spree in May, boosting sales at the nation’s biggest retailers to better-than-expected levels for the fourth straight month. Discounters and specialty clothing INTERNET TECHNICAL DEVELOPER HARDWARE AND COMPONENTDESIGNER SOFTWARE ANALYST/ DESIG! NER Williams International makes FJ44 Fanjet engines near the Ogden airport and would supply the engine for Alberta’s Phoenix Fanjet aircraft, a single-engine plane that Alberta plans to makes in two-seat and four-seat configurations. The company thinks it can sell as many as 18,000 of the new planes. Alberta Aerospace also is considering an assemblyplant in Michigan, which stores fared best last month as con- sumers bought up everything from capri pants from the Limited to gardening equipment at Wal-Mart. “Consumers today have a tremendous senseof well-being and wealth,” said Wendy Liebmann, president of the retail consulting firm WSL Strategic Retail. “Even though many know that their spending can’t go on forever, they are thinking, ‘I better NETWORKADMINISTRATOR has offered an attractive incentive package, Peterson said. Franklin CoveySells Stock books and productivity training, said it has sold $75 million of preferred stock to Knowledge Capital Investment Group ofDallas. The preferred stock pays a 10 per- cent annual dividend and can be converted to commonstock at $14 a share. The companyplans to offer an additional $75 million in convertible preferred stock to existing shareholders later this year. The stock offering was criticized as a costly way to raise money by Donald Yacktman, president of Yacktman Asset Management, Franklin Covey's largest stockholder. Since 1995, Franklin Covey has bought back morethan 7 million shares, including buying shares as recently as March. Last week, the companysaid it ex- pects to lose between $4 million and $5-million in the third quarter. Intelogis Acquires Avirt Association Competition keen as even undergradscan quit school, nametheir price Intelogis’ technology enables per- 2,400 companies with some connection shortageofpeople with the skills needed skills neededin today’s economy. The people who can set up and run Internet sites, who can design computer programs and hardware, who can write software and who can oversee a company’s computer system arein short sup- openings for software engineers and technical people, said Dan Reilley, a staffing manager. But the company also employs about 5,000 people. In other words, 500 openings works about to about one in 10 positions. ‘Thursdaywith the Commerce Depart- thing, universities can't suddenly turn out more engineers. The high wages are attracting more studentsto the program. But the rigorous programs are not for other transportation products. That's just one manifestation of the by the information-technology revolu- tion. “Many of our students are going to work and making more money than I am,” said David Hanscom, director of the U.’s computer-engineering program. The shortage showsnosign of abating. And given the laws of supply and de- mand, salaries continueto climb. grammers in Utah is now $50,000, ac- cording to a new survey by the Utah Information Technology Association. In $50,000 and half makeless. Programmers arein the shortest sup- Association estimates that Utah has to the information-technology industry. And nearly all of those companiesstrug- gle to find people with the technology ply “The competition in Utah is getting stiffer all the time,” said Tessa Matthews, director of humanresources at Powerquest in Orem. The company, which employs about 300 people, designs software that protects and manages data on computer networks. Experienced programmers now make morethan $60,000 a year. But the com petition for skilled people goes beyond just wages. ply, followed by marketing and sales people with a background in technology, said Peter Genereaux, president and Powerquest offers such perks as dry cleaningdelivery andhaircuts on-site. It even periodically arranges for employ. ‘The survey, which includes informa- tion from 257 companies, breaks down ees to have the oil in their cars and trucks changed in the company’s parking lot salaries by job, region, companysize and other measures. It is designed to give tions on the chance the company some chief executive of the tradeassociation. sonal computers in separate rooms, for example, to sharea printer. The technology also can be used to tie computers throughout a home or Employees also are given stock op- ble in high-tech now,” Matthewssaid. Novell Inc. currently has hundreds of Quick solutions don't exist. For one moststudents. The U.'s computing engineering pro- THE ASSOCIATED PRESS TheUtah Information Technologies Association honored a dozen compa- WASHINGTON — Federal Reserve Vice Chairwoman Alice Rivlin unexpect nies and their sales peoplethis week The awards were for products and services that generated $1 million or slowing economycould cause Americans to curb their buying. Someevidenceof a slowdown came ment’s report that orders to Ameri- can factories for manufactured goods fell 1.2 percent in April, reflecting a big drop in demand for aircraft and Additionally, Freddie Mac, the mortgage company, said that the av- gram graduates about 30 a year, said erage interest rate on 30-year fixed- computer-engineering program. Its computer science department graduates nearly two years, jumping to 7.41 Hanscom, director of the university's about 60 a year That's not enough ‘Thetrade schools and communitycol- leges, which produce thetechnicians in demand, have hada bit moresuccess responding to the shortage. ‘They are far more nimble and can changetheir curriculumto what's needed in the marketplace,” Genereaux said Nor caninformation-technology com panies look beyond the state’s borders. See HEAD-HUNT, Page E-2 rate mortgages hitits highest level in percent from 723 percent a week Z0 “There areall sorts of things that can turn people away from shopping very quickly,” Liebmann said “While they are spendinga lot now, most consumers today realize that this boomcan't go on forever.” Despite concerns over what's to come, Americansdid plenty of shopping in May. They bought lots of clothes andaccessoriesat the special- ty apparel stores, and turned to the discount chains for everything from patio furniture to groceries to new Star Wars" toys edly announced her resignation Thurs bank, is the front-runner for a vacancy city government In recent years the city has regained its financial footing, and Congress and the control board have relaxed their day morein revenuein 1998, for prod. day as the No, 2 official at the central bank, saying she wantedto devote more to-day supervisionof local affairs In a statement released by the White million or moreover their lifetime turn to financial health ing usher in a new era of budget surplus es" for the federal government. The timeto helping the nation’s capital re. ucts and services that generated $1 Rivlin's resignation was announcedin and for employees whosold more than $1 millionof a productor ser. a brief statement by the Fed, which also “help: Someprivate economists said the de: parture of the No. 2 Fedofficial makes it House, Clinton praisedRivlin for trol board had playeda “‘critical role in ployees who received awards this year are Singletrac, Slice X, Equis In ternational, Sprint Paranet, Medical dent Clinton Rivlin said her resignation would be. come effective on July 16. In her letter, she said she was leaving in part to devote helping turnaround the finances of our capital city.” more timeto her second job, serving as Rivlin's departure means there will be twovacancies on the seven-member Fed board of governors, The administration has indicated that Carol J. Parry, ex ecutive vice president of Ghase Manhat tan Bank, the country's’ third-largest Software Solutions Inc,, Phonex Federal Reserve Vice Chairwoman head of the Financial Assistance Author. Alice Rivlin at ‘95 budget hearing group that is overseeing Washington's ity for the District of ¢ ene the Federal Reserve Chairman Alan Greenspanpraised Rivlinin a statement president said Rivlin's work on the con released her resignationletter to Presi. The Ulah companies and their em that has existed since last June when Susan Phillips left the board. for using her “skills and experience to make this institution stronger.” viee last year. dia and Auto-Soft. ly low But there are concernsthat a sharp or prolongeddecline on Wall Street, a rise in interest rates or signs of a Alice Rivlin’s departure creates second vacancyon central bank’s board of governors UITA Honors Top Firms Corp., Powerquest, Apline Systems, 4,000 to 305,000 last week, signaling that unemployment remains extreme- No. 2 Official Will Leave Federal Reserve in July small business to so-called broadband Internet connections without having toinstall additionalwiring Consultnet, Nextlink, Verite Multime- confident about their personal finances and eager to spend. Separately Thursday, the Labor Department reported the number of Americansfiling new claims for un- computer engineeringat the University of Utah sometimes forgo graduation in favor of lucrative job offers. grammers in the state make more than the acquisition Both companies are private and do not releasesales figures. tion levels. That's made consumers employment benefits rose a slight people to securely sharea single Internet connection. The company em- company employed 32 people before rise steadily over the past year, benefiting from a strong U.S. economy, as well as low unemployment and infla- day goes public. “That's something that's non-negotia- other words, half of the computer pro- to be transmitted overelectrical wires in a home orsmall business. The spendit while I can.’ " Retailers have watched their sales employers an idea of what they need to pay to attract and keep people. The Utah Information Technologies BY GUY BOU! THE SALT LAKE TRIBUNE Students in computer science and Avirt sells software that enables ployed 11 people. Intelogis’ technology enables data RyanGalbraith and RhondaHailes Maylett ‘TheSalt Lake Tribune High-Tech Head-HuntBoosts Salaries The median wage for computer pro- Intelogis of Draper has bought Avirt, a software company based in Orem, for an undisclosed price. TheSait LakeTribune. Bigretailers riding high on national spending spree the state can do to makeit easier for them to locate here,” Ted Stewart, Leavitt's chief of staff, said after the City companythat sells appointment Jul Sd Oct Dec Jan Feb a May 31°11 23:4 «15 26 21 1999 Source: Bloomberg News Optimistic U.S. Shoppers Boost Sales Alberta Aerospace May Franklin Covey Co., a Salt Lake June 3, 1999 remain on Weider’s board. sales attherationsHae retailers reminded investors that economic growth isn't necessanly bad news. planes, told Gov. Mike Leavitt on Wednesday of the company’s interest in building an assembly plant near the Ogden-Hinckley Airport. “They are anxious to find out what product mix and streamlined operations. around $355 million for the year. her as strong The head of Alberta Aerospace, a Canadian manufacturer of small while the company workedon its The company expects to record sales of more likely that Clinton will decide to nominate Greenspan to serve another four-year term as chairman when Green: span’s current term ends in June 2000.Even before Rivlin's departure, there, were doubts Clinton, in his last year ir office, would be able to get anyone other than Greenspan confirmed by the publican-controlledSenate. Hae Utah’s Top Performers “It got to the point where weweresell- ing as many as 2,000 different items,” Batysaid, indicating Weider realized the sales revenue from manyof those products did not justify the expense of keep- gins on its core products remainstrong. | BYSTEVEN OBERBECK individual products it sells The $7 million chargeis a direct result of that program, Baty said. lost ground during the past 12 months Price per share Nutrition corporation takes $7 million charge Wotraaeukscss | Shares of Weider Nutrition International | ooeoons T _ N Wy NSE bh A Indicators “Dow Industrials 1 i | |
