Show - - ' t iAseAsnootow i - p 4k ''''''''I''' "'-'- '''''''" 4 ' ''1:1Je : 4 ' ' I : As It Sells Off Stakes I In Power Projects : By John Keahey ' :'! Tribune Staff Writer Pacific is selling off : ' ' Bonneville : interests in several inde majority ' pendent-powe- r projects to make it' self more attractive to a Portland : based utility seeking control of the Salt Lake City corporation : The news came in Bonneville's 1990 annual report de tailing the company's first year-en- ' d loss in its ' history 11-ye- For the eight months ended Dec 31 the company lost $372 million on 1769 million in revenues or $266 a share In an interview with The Salt Lake Tribune Bonneville Pacific Chair man Robert L Wood said the compafly would emerge from the financial woods in a strengthened position after 1991 once those sales provide improved cash flows The decision to "sell down" pro ject interests is a reversal of the company's resistance a year ago to increase earnings by such a move Mr Wood acknowledged the sales are not only necessary to raise cash for the financially strapped indepen- dent development power-proje- company but to make Bonneville Pacific more attractive to its new util partner — Portland ity Portland General Corp : That company purchased 20 per 'cent of Bonneville Pacific last October and its interest has since grown to nearly 28 percent Mr Wood said Portland General hopes to own more than 50 percent of Bonneville PacifOre-base- ' Five Fossil-Fue- l By Joe Rolando Tribune Staff Writer d ic's stock Federal laws say a regulated utility like Portland General cannot own a majority of stock in a company that has more than a 50 percent ownership in independent power projects Mr Wood's most recent letter to shareholders was in a subdued e snnual report in sharp contrast to the company's annual report issued last summer In that report Mr Wood described earnings as being less than ' 1989 but painted a a bright picture eight-pag- full-col- e of Bonneville Pacific making "propredictgress this year toward able recurring revenues and earn" ings In the most recent letter the board chairman detailed a number of reasons for the year-en- d 1990 loss including adoption of a more conservative accounting policy that resulted e in a adjustment of $132 million Mr Wood told The Tribune that Portland General forced the more conservative accounting approach Additionally he said Bonneville Pacific lost $1 million in the Thousand Springs Power Plant proposed for the northwestern Nevada desert just downwind from the Wasatch Front That project proposed by a consortium of interests died under extreme environmental pressure from Utahns and from lack of a market for such power in the short term "I doubt Bonneville Pacific will get involved in such an fight in the future as it did in that project" Mr Wood said Such a pro ject runs counter to the company's primary interest in independent-powe- r projects that use more environmentally acceptable generating sources such as natural gas Overall Bonneville Pacific has interests in 28 independent power projects throughout the nation Only One of those plants — a greenhouse complex in Lehi is in Utah There Bonneville generates electricity by burning natural gas and uses the power to heat the facility selling excess electricity to Utah Power 'Our affiliation with Portland General has given us better access to capital Mr Wood told The Tribune "We've traditionally had more opportunities available to us than capital "Now we can aggressively look at those opportunities" He said the company's strategic plan is to generate a "significant" amount of capital and earnings in the short run by "selling down" its interests in various projects That will improve the company's ability to develop revenue-producin- g fiopportunities for long-ternancial stability Mr Wood said I one-tim- I ill-fat- fice's assessment of a project's ability to attract private venture capital after the government money is exhausted The only project awarded a grant — $53206 that does not have to be repaid — is a study proposed by the Utah Geological and Mineral Survey to accelerate and encourage horizontal drilling for oil and gas in the state Mr Turner said that study which 1 t" DALLAS (AP) — million in operating losses $299 million in interest expenses $194 million in discontinuing two divisions and $571 million in bankrupt cy proceeding expenses Greyhound made $727000 in 1989 but lost money last year "primarily due to the strike on March 2 1990" Greyhound Lines Inc which entered bankruptcy last June after its drivers went on ctrike lost $1948 million last year according to documents In a filing made in US Bankruptcy Court in Corpus Christi the inter city bus line said it suffered $891 d of Salt Lake Terra Tek to allow commercially and technically successful horizontal wells drilled into coal mine seams to extract "pipeline quality methane" The project is designed not only to find ways to capture methane for use as a fuel but to make underground mines more economical by ridding them of the highly-Volatil- e gas ts $69304 for the development by the U of U departments of fuels engineering and mining engineering of catalysts and a catalytic combustor that could sit on a laboratory bench and convert low methane concentrations of air exiting coal-min- e fan vents to high enough heat to gener City-base- d rs r:: I il a z '"I'PA' ii tp:)k k By Steven Greenhouse New York Times News Service bankruptcy Philips NV the Dutch electronics giant has laid off a third of the workers in its money-losincomputer division as part of a companywide revamping that led to a $225 billion loss last year Olivetti SpA Italy's flagship computer company has reacted to declining profits by laying off 7000 workers Europe's manufacturers are besieged by American competitors who draw encouragement from computer prices often 50 percent higher than in the United States and had benefited from the dollar's weakness in 1989-9And Europe's $45 billion computer market is expected to grow faster than the more mature American market Compaq Computer Corp based in Houston boasts that its sales in Europe soared 50 percent last year "The profits are there to be had" said Foyil the analyst "If the Europeans can't make money in their own backyard they're not going to make money in the future" Some analysts say Europe's computer manufacturers will remain far behind the Americans and Japanese in efficiency and innovation Since Europe's manufacturers are far smaller they have far less money for research and development The combined computer sales of Europe's four leading computer comd of IBM's panies are just Siemens-Nixdor- f Europe's largest computer maker ranks just fifth in worldwide computer sales The growing market for personal computers is enhancing the American advantage Led by IBM based in Armonk NY the five largest sellers of personal computers in Europe PARIS — Europe's computer makers by their American and Japanese competitors are desperately fighting for survival They are laying off thousands as they struggle to slash their losses but some analysts say most of them will either collapse or sell out to competitors overseas "The game is pretty much lost" said Dorian Foyil who follows European computer companies for UBS Phillips & Drew in London l'It's just a matter of time before they disappear" Many European officials say they cannot let the continent that gave the world Aristotle and Galileo be vanquished in such a crucial industry They fear that the disappearance of Europe's computer makers would weaken other industries including automobiles aerospace and consumer electronics Many Europeans were appalled in July when the Fujitsu group of Japan bought 80 percent of Britain's leading computer maker International Computers Ltd "We want to keep the European industry European" said Filippo Maria Pandolfi technology commissioner of the European Community Demonstrating how far governments are willing to go France recently pledged more than $1 billion to shore up the capital of Compagnie des Machines Bull and help pay for its research Bull Frances largest computer manufacturer lost $12 billion in 1990 Across the Rhine Nixdorf Computer AG lost $600 million in 1989 before agreeing to be acquired by Siemens AG as an alternative to g d 0 ate electricity Success of the "bench scale" technology could lead to a "pilot scale" industry project $138942 for a study by James W Bunger and Associates of potenshale-oi- l and Uintah d derivative prod Basin waxy-crud- e ucts The study will include production feasibility market analysis and development and demonstration of products separations and production techniques Mr Turner said the 37 projects submitted were reviewed first by the Energy Office's technical staff and then by the Utah Energy tial tar-san- Conservation and Development Council The council is a policy-makin- g body for the Utah Energy Office ' i : -- JOIN US FOR LUNCH i t CHOCOLATE COVERED STRAWBERRIES - '1:)''f--v7": — y rt (41'----- - 4:74--- 'rts - -- 2 !-- - 2773 SOUTH k first-quart- APRIL The Franklin one of the nation's leading financial services companies is looking for people who want a career change or a supplement to existing income Check these earnings for the potential Franklin offers: er Associates' 1990 average incomes Dual-Care- er 1990 average incomes TOP TOP TOP TOP TOP 25 50 100 200 500 6355907 278509 204787 149221 TOP TOP TOP TOP ASSOCIATE 10 25 50 $68039 43043 32289 24331 93264 Calculated from actual earnings reported to the US Infanta) Revenue Service 1 or 1990 For the chance to earn an income like these visit cur next opportunity meeting — Wednesday April 241991 6:30 PM Embassy Suites Hotel Corner 6111 South & West Temple Please call for reservation need to keep up with advances developed in the highly competitive American market n N111 The Franklin 'Budding Brighter Tomorrows April 24th is Secretaries Day The Postal Se ' ce salutes secretaries for doing a great jot day in d day out We'll bc sending your secretary a congratulations in the form of a card and button It's a 22-2- 6 token of our appreciation for th e terrific job your secretary does in seeing it your mail is carefully to e and completely addressed (4 ‘ Bad Trattoria Cafe Pierpont Y11"04-414!!1e—- 1 i Club Boor Market Street Broiler Market Street Grill Market Street Oyster Bar New Yorker We'll also be including a copy °four new complete addressing and readability i These guidelines proguidelines vide easy instructions that will help us give you faster and more reliable service And preparing the mail for fast delivery is why your secretary's always been one of our favorite business partners Private Clubs - For Members : Or Mt card wU bc avadabie to most kicat post tikes m vow arm F ifiv-- tz - i' 1 -' —:'- 1 ''ti I -- : 46A iii " UNITED STATES tp POSTAL SERVICE We Delivet: Ti1Iii So é0 OPPCiAL Walter Johnson no The company has recorded operating profits in seven of the 10 months since last June including last month said Greyhound chief financial officer Michael Doyle Executives expect 1991 revenue to exceed $650 million above last year's and that for 1987 Career chaoget Income oppo ii Util )11 ders Nurtured by their governments the European companies felt little COMPLIMENTARY AT LUNCH BOULITERIL LITICOLLI I 0 ---- Gordon Bennett i :! TRANSPORTATION NEEDS CALL OR STOP BY TODAY! - and security against strike-relate- d violence said the filing made last week in 1990 were all American While the Continent's top computer makers are sustaining heavy losses International Business Machines Corp with 12 factories in Europe had European earnings of $298 billion last year almost half of the company's total profits But with European economies slowing IBM said that the continent had contributed to its dismal results And the company is trimming its European staff Still many American companies are having greater success abroad than at home The Europeans have been handicapped by a late start Key inventions that originated in the United States took years to cross the Atlantic As the companies fell further behind IBM several nations merged their small computer makers into single national champions upon which the governments lavished or- DURING SECRETARIES WEEK ALL YOUR 1 Greyhound's 5200 drivers walked out over wages and benefits The company replaced them with 3500 new drivers and trimmed the number of mechanics managers and buses Greyhound also restructured its one-thir- SEE GORDON BENNETT OR WALTER JOHNSON FOR ' route system to serve 95 percent of the cities and towns it did before but in some cases with fewer runs The strike cost Greyhound $35 million in legal fees driver training the filing said Hungry US Japanese Computer Makers Eat Up Faltering European Competitors LOOKINGFOR A NEW OR USED CAR OR TRUCK? - - will be conducted by lead petroleum geologist Thomas Chidsey in the Duchesne oil field also will use re$268000 of cash or sources from private industry and the survey Mr Turner said the four other successful projects and their funding include: $100000 to the University of Utah Research Institute to develop advanced imaging techniques for characterizing 'deltaic" or branchreservoirs These resing oil and ervoirs are common in Utah but have not been extensively exploited $149925 for the development of techniques and equipment by Resource Enterprises Inc a subsidiary Greyhound Shifts in Reverse: Strike Costs Bus Line $1948 Million - I Projects to Split $500 000 9 we awarded the projects" said Mr Turner "If a project is unsuccessful we don't expect a payback If they are successful we expect a payback when they can afford to do so" Mr Turner said the selections were based partly on the Energy Of- Five studies on enhancing energy production from fossil fuels will share $500000 from the Utah Energy Office Thomas Turner the state's energy engineer said the projects were selected from 37 submitted in response to a formal solicitation He said the Energy Office received the money to fund the projects from the federal government which negotiated settlements with oil companies who overcharged the public between 1973 and 1981 "Usually we ask for a small royalty of two or three times the amount Monday Morning—April 22 1991 Section C Page 8 d 'just-release- : ' usmess aatt aattZZiiuutt Bonneville ITic Portland Firm m Mind - OLYkWIC SPONSOR : raEncuny MAIN 0 BOUNTIFUL 0 292-720- 1 MIIIIMISIMEMEMEN i t i' )1 I 1 - |