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Show Scramble for Gold Makes Prices Jump As Dollar Falls on Overseas Markets NEW YORK (AP) Gold prices continued to climb on world markets Thursday in tumultuous trading. The dollar moved generally lower in overseas dealings but rose against several major currencies in the United States as traders awaited a weekend meeting of finance authorities from five major industrial countries. Buyers scrambled for gold, sending the price to the highest level since July 1984. In London gold jumped almost $15 a troy ounce and in Zurich the metal surged $13 an ounce. Later, in New York, gold posted more moderate gains. On the Commodity Exchange, gold for delivery in January closed at $356.60 an ounce, up $7.10 from Wednesday. The Republic National Bank in New York quoted gold bullion at $355 an ounce at 4 p.m. EST, up $6 from Wednesdays bid. Bullion dealers said the clamor for gold has fed on itself, with some buy Aircraft Firm May Pick Site in S.L. Continued From C-- 7 have enough information to be more specific. State officials have confirmed Douglas Aircraft is looking at land near the Salt Lake City International Airport on which to locate its operation. Airport Director Lou Miller confirmed Thursday he has met with Douglas Aircraft officials but was unable to disclose other specific information about the talks. As a division of the St. Louis-baseMcDonnell Douglas Corp., Douglas Aircraft manufacturers large comd mercial and military transport planes, such as the DC-1- 0 and MD-8both commercial jets; and the KC-1- 0 a military cargo tanker. Douglas Aircraft employs about 21,000 people, more than 16,000 in the Long Beach, Calif, area alone. The company, which stations key employees world-widalso operates a fabrication facility at nearby Torrence, Calif, and a flight development facility at Yuma, Ariz. James Reed, chief spokesman for McDonnell Douglas at its headquarters in St. Louis, Mo., told The Tribune the operation would involve manufacturing "subassemblies of some kind. He explained a subassembly would be a major part of an airplane, such as the body, which is built in one location and then shipped to another for final assembly. Mr. Eastman said there could be "any number of reasons Douglas Aircraft is looking at doing some of its work at locations other than southern California. One of our problems here is space constraints, he noted. "We're in the middle of well-buiup metropolitan area and were pretty much surrounded." Mr. Eastman said Douglas Aircraft is expanding some at Long Beach by adding 1 million square feet of plant space. But he said there are still some physical limits on the company's expansion that could be lifted by locating some operations in other cities. Asked if the $3,387 billion contract McDonnell Douglas Corp. secured recently from the U.S. Air Force for e development of the 7 military transport plane was among the reasons the company was considering locations in other cities, Mr. Eastman said it was one but not the only reason. He said his company has also be5 U.S. gun development of the Navy jet training system and is looking at developing in the 1990s new commercial aircraft that will use a different propulsion system. Thus, the reasons for looking for sites outside of Long Beach could be to do work on any number of projects, said Mr. Eastman. For the three months ended Sept. 30, 1985, McDonnell Douglas net income fell 17 percent to $73.1 million. Aerospace earnings were essentially periunchanged from the prior-yea- r e, lt full-scal- od. The companys sales, however, percent to $2.88 billion. The decline in McDonnell Douglas' net income was due to substantially higher losses in information systems manufacturing. In 1984, McDonnell Douglas combat aircraft manufacturing accounted for 55 percent of its sales and other income and 85 percent of its operating profits; transport aircraft, 22 percent and 10 percent; space systems and missiles 14 percent and 6 percent; information systems 9 percent and 8 percent. rose 17 JBILBIIJG FOB LEASE ft. 3,000 sq. sales office & brick front. 2200 South Prime location between State & Main. Additional warehouse can be available. $600 per month. warehouse with See Rulon, Pearson Tire Phone 407-40- 77 ers going into the market because they see others doing so and want to make their purchases before the precious metal goes any higher. Interest in gold grew following the escalation in tension between the United States and Libya over the bombings at airports in Rome and Vienna. Traditionally, gold has been seen as a safe spot to store assets in uncertain times. Some bullion dealers detected the Japanese as aggressive gold buyers. In London, Mark Collier, investment manager of International Gold Corp., said the Japanese are purchasing somewhere between 100 and 200 tons on the open market in connection with celebrations to be held in April marking the 60th year of their emperors reign. The dollar received some support in overseas trading by the markets belief that demand for gold was coming from Japan and not from Arab nations anxious to get rid of dollars following the confrontation between the United States and Libya. "The market began to suspect that the money flowing into gold wasnt coming out of Arab dollar investments, and it caused people to buy back dollars they had sold earlier in the day," said a trader in Frankfurt, West Germany. Generally, though, the dollar declined overseas against most major currencies. Albert Soria, a vice president for Swiss Bank Corp. in New York, said U S. traders remained preoccupied with the upcoming meeting of economics leaders from Britain, France, Japan, the United States and West Germany, known as the group of five or G-"Todays activity was very lethargic. We are awaiting the outcome of the G-meeting. We really dont know what to expect, said Soria. 5 The Salt Lake Tribune, Duffy Friday, January by HOWPUCH ARE-IPACING THIS GUV X PHILIP LUCRE , $ 1,000 U) & 7 ISN'T THAT AW KINO OF STEEP7 PUFFV. Cll 17, 1986 Hriu'r Hammond OF COURSE NOT1 IN EIGHT HOURS HE CAN SOLVE 480 PRO<m I Costco Wholesale Reports Profit of $38,000 Costco Wholesale Corp. reported its first quarter of profitable operations ended Nov. 24 with a net profit of $38,000, including benefit of a $17,000 tax loss carry-forwar- That profit is after net interest exexpense of $579,000 and penses of $1,068,000 related to the opening stores. of five new warehouse Costco's earnings compares to a net loss of $1,421,000 the same time the year before. The companys net sales during the ended Nov. 24, its first since going public, increased 130 percent to quarter $134.5 million. That compares to net sales of $58.4 million the same time last year. Included in the company's $579,000 net interest expense for the quarter ended Nov. 24 is $531,000 of interest expense payable to the holder of the companys 1 1 percent $20 million convertible subordinated note. |
