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Show -- rn w Up and Down the Street lit Zirribune Western Flying Solo for Now, Says Boss With deregulation, Chapter 11 bankruptcies. and unprecedented structural changes in the airlines industry, people are chattering '11 But it was obvious he was refernng to the spate of market rumors Air hypothesizing a Western-Delt- a Lines Inc. merger. A marriage made in heaven, according to mar- Robert Business Editor 1 "like magpies" about mergers and new combinations, says Western Airlines chairman Gerald Grin-steiBut take it from Mr. Grinstein, nobody is in the wings now as far as Western is concerned. We have made inquiries; we have received inquiries," he told the annual meeting Thursday at the Westin Hotel Utah. Kut, he said, "no announcement is imminent." He said if a letter of agreement were ever signed, stockholders would be informed promptly. Consumer Debt Slows Sales, Analysts Say o said. Operating income showed a $19 7 million loss compared to a $23 million gain for the year-agquarter, he said. But operating losses were suffered by all the carriers, he noted. The second quarter is strengthening, he said, spurred by the terrorism and dollar weakening, which has made foreign travel less desirable. Vancouver's Expo '86 also has improved traffic on Western's routes. Mr. Grinstein also said he saw "strengthening" in the third quarter with improved yields for the carrio first-quart- Section Western, which began hub operations with 29 daily flights in March 1982, will reach 136 daily flights in June at Salt Lake City International sweeten its $4.06 billion offer for the big computer company or face competition from another suitor. Sperry's stock rose $2.12 k2 to 72.50 in consolidated New York Stock Exchange trading on heavy volume. That was above the $70 cash per share Burroughs offered on Monday. Burroughs fell 37kt cents to $62.50. comBurroughs, the Detroit-base- d puter maker, formally began a hostile tender offer for the stock of New York-baseSperry on Thursday after Sperry management failed to respond to Burroughs' merger offer. A merger of Burroughs and Sperry would create the world's second-largecomputer company, knocking Digital Equipment Corp. from second place behind industry giant International Business Machines Corp. Burroughs' offer is for 33 million shares of Sperry common stock, a majority of the shares outstanding. It intends to swap the rest of Sperry stock later for Burroughs preferred stock and debt securities. Burroughs has said that in spite of its tender offer, it "remains willing to enter into merger negotiations with Sperry, and desires to do so." Sperry continued to decline comment, as it has since Burroughs made its offer. Also Thursday, Burroughs announced that Morgan Guaranty Trust Sears, Roebuck and Co., the nation's largest retailer, said its sales for the four weeks ended May 3 rose 1.9 percent from the same period a year ago, while K mart Corp., ranked second, reported a 2.8 percent gain. Wal-maStores Inc., the discount chain and the fifth largest retailer, said its sales spurted 39 percent. another month in a row, I've got to say sales were mixed," said Jeffrey Edelman, an analyst with the investment firm Dean Witter Reynolds Inc. "Even if adjusted for the cal- endar change and unseasonable warm weather in the Midwest and Northeast, sales are still on the soft side." Because Easter fell earlier this year, retailers and analysts had said that only a look at the combined March-Aprperiod would give a true of reading spring business. : il !NAL D Peter Behrens told The Tribune that return to the potash business assumes "normal weather" when and if normal weath- er ever returns. It was Mr. Behrens, who 12 years ago, began to issue warning that me- teorological conditions indicated increased precipitation and rise in lake GSIM&C president .c r levels. Mr. Behrens urged pumping of lake ! a $55- - ,, waters onto the west desert million remedy new being ardently sought by Utah Gov. Norm Bangerter in wake of $170 million in damages already inflicted by the lake's rise. GSLM&C began operations in De- cember 1970. Gulf, whose business also includes oil and gas and coal, reported $155,793,000 in revenues in 1985 corn- pared with $197,932,000 the year before. It reported a loss of $7 million from continuing operations corw pared with net income of $7.2 million 'a the year before. 1985. The chairman's and president's :4 The figures were before taxes, in"letter to stockholders" indicated the !: terest expense, parent overhead and company is repositioning to develop elimination of intercompany transacincreased shareholder value. It sold tions. its lithium and engineering services In May 1984. an outer dike was for $150 million in 1985, resulting in a breached by lake flooding. Dikes, $57.3 million reduction in long-tert evaporation pond floors, bridges and debt and increase in liquid assets to pump stations were badly damaged. more than $120 million. 4," k He told The Tribune that reinjection of natural gas associated with oil ; A production at Prudhoe Bay is becoming increasingly costly. He said the pipeline and processing t station appears economically feasi- ble at a gas price of $470 a thousand cubic feet. He said current estimates are that a pipeline could be constructed for $12 billion or less. The line generally would follow the route Volcker, speaking at an annual of the Alyeska oil line. A conference of the Society for InternaUnder leadership of John McMil0 tional Development, said: "We have lian, the former Northwest Energy AA now achieved a more competitive exCo., Salt Lake City, for many years change rate structure." Some traders sought to bring North Slope gas to the a line. interpreted that as a signal that U.S. market by a Volcker felt the dollar had fallen far Northwest led a consortium createnough and as a reason to buy dollars. ed to build the line. However, inflation caused major escalation of proTrading was mostly light everywhere, and continental European fiposed costs. In addition, energy use nancial markets were were closed for and prices began to fall off from ear- a lier projections. the Ascension Day religious holiday. on the south coast. The liquified gas then would be delivered by cryogenic tanker to Japan and Korea. Mr. Hickel, a director of Western Airlines, was in Salt Lake City for the annual meeting of WAL. President Nixon, is chairman of -Pacific Corp., Anchorage. Yukon-Pacifi- c proposes construcline from Prudhoe tion of a on north the slope to a cryogenic Bay processing station at Kenai or Valdez Walter J. Hickel said Thursday he still believes Alaska North Slope gas can be marketed profitably in Korea and Japan. Mr. Hickel, a former Alaska governor, and secretary of interior under st : "For its inexorable rise, continued Hickel Still Hopes to Sell North Slope Gas in Orient d fast-growi- brokerage firm that owns stock in both companies. Sperry stock has been buoyed by speculation that Sperry might seek out a "white knight" to merge with instead of Burroughs, Yuschak said. Burroughs Chairman W. Michael Blumenthal repeatedly has stated that the merged company would maintain both companies' mainframe computer architectures, but Yuschak said he believes Sperry was worried the company eventually would merge the lines. its lead banker, has received bank loan commitments well in excess of the $3 billion that Burroughs needs for its takeover offer. Burroughs said it therefore no longer needed to condition its tender offer on obtaining financing. Investors holding Sperry stock believe Burroughs wants to buy its computer rival badly enough to pay more than $4.06 billion for it if necessary, said David Yuschak, research director for the Ohio Company in Columbus, Ohio, an investment banking and Co., 13 Brine inventories were so diluted they were useless for production of sulfate of potash and salt cake. On Thursday, however, as the lake The annual report of Gulf Resources & Chemical Corp. says its n-based Great Salt Lake Minerals & Chemicals Corp. subsidiary had by year's end made 90 percent of the repairs needed on its potash recovery ponds in the northeast arm of the Great Salt Lake. But it also said it will be several years before production can be resumed. By the end of 1985, its insurance company had advanced $22.8 million to cover cost of repairs and business interruption, it said. GSLM&C was insured through Lloyd's of London. Gulf said it believed insurance proceeds would fully cover losses and that carrying value of its $36.4 million investment in GSLM&C as of year's end "is fully realizable" It said, however, GSLM&C "is currently unable to purchase, on terms deemed feasible, insurance to cover further such losses." It said fertilizer and salt operations contributed $22,728,000 to revenues and $1,769,000 to earnings in 1985 compared with $27,504,000 in revenues and $1,178,000 in earnings in Ogde- Speculation Fuels Rise of Sperry Stock By Peter Coy AP Business Writer NEW YORK Sperry Corp. stock rose Thursday on continuing speculation that Burroughs Corp. would Page C Repairs Nearly Finished At Potash Ponds in Lake Western, however, is considering construction of an "overnight hangar" at Salt Lake City International for minor maintenance. It may consider installing a reservations function and computer operation in Salt Lake City. er. 9, 198t Friday MorningMay Burroughs May Have to Sweeten Pot By The Associated Press The major retailers reported another mixed performance for April, and financial analysts said Thursday that the continued high level of consumer debt is still holding sales gains back. Stores are not benefiting yet from the lower mortgage rates and cheaper gasoline prices that have put more money in consumers' pockets, but those trends should encourage more spending later in the year, the analysts said. rt Airport, "the fastest hub in the West," he said Bouncing back after six years of losses, the company is now well capitalized, he said, and able to respond aggressively to interlopers on key routes. It also is well perceived in the marketplace, he said. with shares closing Wednesday on the New York Stock Exchange at 1011i compared to 614 at the end of the year and 3L4 at the end of 1984. Attendance estimated at 150 to 200 appeared to be mostly if questions from the audience were indication. Asked if Salt Lake might become the headquarters for maintenance, Robin H. H. Wilson, president, said there will be no move of maintenance facilities from Los Angeles headquarters. first-quart- ket talk. But as of Thursday, the Western was winging it very well on its own, according to Mr. Grinstein, in review of a year past that had produced record earnings of $67.1 million. Less certain was the outlook for a year with roilthe present year ing fare wars and, oddly enough, a negative impact from the drop in fuel prices. the fuel price Over the short-rudrops cut costs, he said. But in the long-ruit is enabling the industry to keep more of the older fuel consumptive aircraft in service. And that means more seats overhanging the market, he said. In the first quarter, while fuel prices had dropped 8 percent, Western's dollar yield per passenger seat had fallen 9 percent. And that, in Woody ttinrr turn. he said. pushed up the load factor requirement for profitability. While net income was down to $10.9 million. compared with $13 3 million for the year-agquarter, Western was one of only two major carriers not reporting losses for the quarter. he Grinsietn mentioned no Mr. names Business Yukon- 800-mi- Dollar Takes Another Plunge, Then Steadies 164.35 yen in New York, up 164.10 on Wednesday. The dollar Thursday after plunging d earlier in the session to another War II low against the Japanese yen, its sixth such low in 12 trading days. In Tokyo, the dollar sank to a postwar low of 164.30 yen, down from Wednesday's close of 166.10 yen. Later, in London, the dollar fell further to a new low of 163.70 yen. The dollar finished the trading day by closing at NEW YORK (AP) steadied from Gold prices were mixed. Bullion was quoted at $344 an ounce at 4 p.m. EDT at Republic National Bank, down 25 cents from Wednesday's late post-Worl- trans-Canad- bid. 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