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Show Salt 2fljr jCakr .Business tribune Section F Sunday Morning- - January 19, 1986 1 Page Lawyer Builds a Good Defense for Exporting Doughnuts His Bakery Out To Punch Holes In Competition By Hubert H Woody Tribune Business F.ditur What's a lawyer doing running a doughnut factory'1 Look, says Philip Palmer McGuigan He likes Salt Lake City and did not want to go to Hawaii to open another office for his firm Secondly, doughnuts are where it's at in these parts Production is NOT goJaing to go offshore pan. Korea or Malaysia Doughnuts are not just any commodity Doughnuts are perishable "I ve got a friend from college who flies around in a corporate jet because he got disgustingly rich making electric switches Now. he's having a bear of a time because of overseas competition " Electric switches are not perishable They can be made in Japan. Korea or Malaysia. And besides, says Mr McGuigan. president and chairman of Intermountain Premium Bakery, he's associated with some very good partners in his intent to become the biggest doughnut manufacturer in the Intermountain Area While there are other doughnut makers in the state. Utah is still a major importer of doughnuts, he says. Why not become a major exporter0 Salt Lake City has cheap real estate. It is a hub It has excellent transportation. And he envisions advantageous arrangements with truckers who want a backhaul out of Utah to surrounding states. . couple of weeks ago, with tethered balloons bouncing about like spring daffodils over the corporate headquarters and plant at 4140 S. 500 West, Intermountain Premium Bakery mounted its efforts to become No. 1. In a matter of a three hours hours, the compastaff of 11 hau produced 30,000 ny and its start-udoughnuts for the Granite School District. Eureka! A week later it got an order for another 30,000 doughnuts from Granite. Mr McGuigan says the present plant could produce 12.000 doughnuts hourly at "cruising speed." Intermountain's plant is located in a building once used as a carpet wareA p Doughnuts roll off the production line not by the dozens but by the thousands as bakery general manager Dennis Dahle mans controls. i- - ' V'-- ' f -- -I lx v. Softwares Chips Are Down , But Futures Upbeat house. Visitor have said Intermountain Premium's environs and equipment look like something out of NASA, says Mr. McGuigan Indeed, there are no kindly looking grandmothers fashioning, frying and glazing, and sprinkling by hand. By Donna K.H. Walters Los Angeles Times Writer There are huge ingredient mixers, a Pillsbury deep fryer, a twisting, turning, looping conveyor for cooling the doughnuts, automatic glazer, enrober, crumber, and powdered sugar, nut and topping sprinklers. "It is highly automated and extremely expensive." And within, stored in another section, is equipment for a "Danish roll production line, says Mr. McGuigan, anticipating the day sometime this spring when employment will be doubled to 22. At that time, the plant will be capable of pros ducing about $15 million in doughnuts and he says. yearly, The plant is well capitalized and expects to develop its market in orderly fashion overthe next six months, he says. Mr. McGuigan bought the equipment from a Denver bank after owners had gone bankrupt in wake of severe labor problems. Mr. McGuigan formerly was with the New York-basefirm of LeBoeuf, Lamb, Leiby and McRae whose specializes in handling complicated financing packages, and, in recent years, what might be termed extremely sophisticated bankruptcies. At behest of the firm, he came to Salt Lake City in 1981 to estalbish a branch office, which has since handled such celebrated bankruptcies as Baldwin United of Indiana and the Salt lake Sweetwater. But last year when New York wanted him to undertake a like venture in opening a branch in He is 28 years old, but Terry Garnett says he feels closer to 50. In less than three years, he nurtured an idea into a computer program, then into a company and finally into an acquisition plum. Along the way, Garnett picked up a load of executive-leve- l pressures and headaches. Garnett is one of those bright young entrepreneurs who seem to come along as regular as payday in California's Silicon Valley. Last year he sold his company named Light-yeaafter the software package he to a and two programmers created Cocoa Beach, software developer and publisher. His riches, he said, are mostly of the unspendable specie: experience. Still, he is not complaining. He's lined up a short consulting stint and then will rejoin his peers at Stanford University to Dan-ishe- r, Fla.-base- d d start his MBA. In the software business these days, there are hundreds of bright young entrepreneurs just waiting for a chance to be as lucky as Terry Garnett. They are gussying up their companies and tramping along the courting circuit, looking for a merger mate so they, too, can get back to "the creative part of business and not have the pressure of these situations," as Garnett puts City-base- it George Carter, a veteran of the doughnut business, and Mr. Dahle pour ingredients into a mixer. it. Analysts say 1986 will be a good year for software companies, but they mostly mean the kinds of companies that Garnett's was not: companies with established product lines, such as the big three: Lotus Developand Microsoft. ment, Ashton-Tat- e The others, they say, are up for sale. That is because 1985 was a rough year, and the changes forced by the Demarketplace will be velopers that do not have the wherewithal to get their products on the r lists will be gobsoftware bled up or forced out by the stronger companies. The remaining companies will add to their shares of the market. And, strangely, the average computer buyer who looks around for software programs will see little difference There may be fewer piograms to choose from than there otherwise might have been, but who will miss what never was? The discount pricr ing trend sparked by houses will continue, but analysts are long-lastin- best-selle- mail-orde- See F-- Column 4 Navistar Begins Where IH Left Off CHICAGO (UPI) Donald D. Lennox says theres no room for nostalgia at the new Navistar International Corp. "All of us share memories of a victorious past," Lennox said during a speech announcing the renaming of International Harvester. "But nostalgia is life in the past lane The bespectacled Lennox is among a handful of executives who helped pull Harvester back from the brink of bankruptcy during the past three years. They did that by selling off all but the company's core business and heavy- - and medium-duttrucks debt from $4 billion-plu- s to $788 slashing its long-termillion by the end of fiscal 1985. reddish-haire- y The number of employees went from 100,000 at 50 plants worldwide to 15,000 at seven plants in the United States and Canada. Harvester posted a profit in the final three quarters of 1985 and Lennox said the newly renamed company is poised for the future. Company executives are talking about their name change as a "rebirth and Lennox paraphrases Winston Churchill in talking about the comeback: "IH has not been bombed but we have taken our share of hard knocks. Our will has been tested. This is the first day of the rest of our lives. that's the "Harvester," Lennox paused, "Navistar has its work cut out." first mistake Lennox, 67, a Pittsburgh native, likes to crack jokes and mention employees by name. During the announcement, he cited employee after employee for contributions and commented about their individual reactions to his words. Lennox, a former Xerox and Ford Motor Co. executive, as was his predecessor Archie McCardell, joined Harvester in July 1979. He was elected president and chief operating officer in May 1982. In September 1983 he became chairman and chief executive officer. "We came by our means honestly,, Lennox said of Navistar's financial condition. "No government saved us. We saved ourselves." "My first choice for a new name was Lennox International, but that didn't fly. I thought it would be simple name-chang- See F-- Column See Llj) IVlilT 11 F-- Column d 1 by Brendan Boyd FROZEN FOOD FACTS & FIGURES Total Value of All i Retail Institutional Product Category Froxan Foods e 1 SOURCE: Quick Frozan Fooda magazlna (Octobar T08SJ 1 |
