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DILLARD DEPARTMENT STORES AGREES TO BUY TWO ALLIED STORES UNITS FOR 255 MLN DLRS CASH
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CHEMICAL NEW YORK CORP 1ST QTR SHR 1.58 DLRS VS 1.93 DLRS
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BANKERS TRUST <BT> RAISES BROKER LOAN RATE | Bankers Trust Co said it is raising
its broker loan rate to 7-1/2 pct from 7-1/4 pct, effective
immediately.
U.S. Trust Co, the only other bank to publicize its broker
rate, was already posting 7-1/2 pct.
Reuter
|
MOODY'S MAY DOWNGRADE IRVING BANK CORP, AFFECTS 950 MLN DLRS OF DEBT
| |
PENNZOIL<PZL> TO CONTEST TEXACO <QTX> BANKRUPTCY | Pennzoil Co lawyers said they plan to
file documents challenging Texaco Inc's Chapter 11 bankruptcy
proceedings in the Southern District of New York.
John Jeffers, a Houston lawyer representing Pennzoil in its
10.53 billion dlr dispute with Texaco over the acquisition of
Getty Oil Co, said he expected the challenge to be filed
sometime this week.
"We'll challenge it as a bad faith filing," Jeffers told
Reuters following a brief hearing before a Texas State Court of
Appeals.
The court had been scheduled to hear arguments on a Texaco
motion to reduce the amount of bond required for it to appeal
the judgement.
Instead, the court agreed with Texaco lawyers that the
issue was moot because of Texaco's bankruptcy petition filed
yesterday that stays all of its debts and obligations.
"We think they abused the process," Jeffers said, referring
to Texaco's bankruptcy filing.
D. J. Baker, a lawyer representing Texaco, told reporters
that the nation's third largest oil company was forced to seek
bankruptcy protection because of its precarious fianncial
condition and problems with suplliers and bankers stemming from
the 10.53 billion dlr judgement.
"All activity after the filing can be conducted on normal
business terms," Baker said.
He said Texaco would seek permission from the court to
continue its appeal in Texas courts of the Pennzoil judgement.
"There will be no bond required because all state court
litigation has been stayed," Baker said.
When asked whether Texaco's reorganization plan would
include major restructuring of the company, Baker declined to
say what the eventual plan might include.
"I think Texaco will succesfully complete its Chapter 11
proceedings and have a reorganization plan approved by the
court," he said.
Baker said Texaco expected Pennzoil to seek a seat on a
creditors' committee to be appointed by the bankruptcy courts
but added he did not know whether Texaco would oppose such an
attempt.
Lawyers for both sides also said that each company
continued to be interested in a possible settlement, but
declined to say whether any negotiations were scheduled between
the two companies.
"Texaco has tried to settle and will continue and try and
settle," Baker said.
The two companies reportedly remain far apart in what each
considers to be a fair settlement, with Pennzoil seeking
between three and five billion dlrs, while Texaco has
maintained it cannot pay more than about one billion dlrs,
according to analysts.
Reuter
|
PENTLAND TO REDUCE REEBOK <RBK> HOLDINGS | Pentland Industries PLC said it report
a substantial capital gain from the sale of part of its
holdings in Reebok International Limited, which will cut its
stake in Reebok to 32.2 pct from 36.7 pct.
It said Reebok filed a registration statement with the
Securities and Exchange Commission for the offering of six mln
shares of Reebok common. Reebok will sell three mln shares and
Pentland will sell 1,404,866 shares, reducing its stake in
Reebok to 18.1 mln from 19.5 mln shares.
After the offering, Reebok will have 56.1 mln shares shares
outstanding.
Pentland said the amount of the capital gain from the sale
depends on the offering price for the Reebok shares to be
negotiated between it, Reebok, and the other selling
stockholders who will offer about 1.6 mln shares of Reebok
common, and the underwriters.
Pentland said proceeds from the offering will be used by
Reebok to retire bank debt incurred in its acquisition of AVIA
Group for about 180 mln dlrs. Is said that afterwards, Reebok
will have bank credit lines available for general corporate
purposes, including possible acquisitions.
Reebok's stock was selling at 45-1/2, up 1/8. At that
price, the 1.4 mln Reebok shares Pentland will sell are worth
about 64 mln dlrs and the three mln shares Reebok will sell are
worth about 136.5 mln dlrs.
Pentland said it will use proceeds to fund growth and
possible acquisitions.
Pentland said 4,500,000 shares of Rebbok will be offered in
the U.S. by a syndicate led by Kidder, Peabody and Co Inc and
1,500,000 shares will be offered outside the U.S. by an
international syndicate led by Kidder.
It said the U.S. underwriters have been granted an option
to buy from certain selling stockholders up to an additional
900,000 shares to cover overallotments. Pentland said it has
not chosen to participate in this over allotment.
Pentland said that as soon as the date and price of the
offering have been determined it will release further details.
It said it expects the offering to close in May.
Reuter
|
SEARS ROEBUCK SAID IT WILL REDEEM ALL ADJUSTABLE RATE PREFERRED SHARES, FIRST SERIES
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U.S. HOME LOAN BANKS SET 2.135 BILLION DLR OFFER | The Office of Finance of the Federal
Home Loan Banks announced a debt offering totalling 2.135
billion dlrs consisting of three issues.
The issues are 1.2 billion dlrs maturing April 25, 1989;
635 mln dlrs maturing April 27, 1992; and 300 mln dlrs maturing
April 25, 1994.
The office said the issues will be priced and offered for
sale tomorrow. Secondary trading will occur April 15.
The issues are for settlement April 27, the office said.
The office said 120 mln dlrs of the 1989 issue, 63.5 mln
dlrs of the 1992 issue and 30 mln dlrs of the 1994 issue will
be reserved for the Federal Reserve System for its own or
customer accounts.
It said the bonds are available in book entry form only in
increments of 10,000 dlrs and 5,000 dlrs thereafter. No
definitive bonds will be available.
Reuter
|
CANADA JANUARY LEADING INDICATOR UP 0.4 PCT | Canada's leading composite indicator
rose 0.4 pct in January with eight of the 10 major components
posting gains, the most widespread monthly advance in the past
year, Statistics Canada said.
The index also gained 0.4 pct in the preceeding month. The
unfiltered index, however, fell 0.1 pct in January after rising
1.0 pct in December.
The gain was led by the residential construction index
while the manufacturing groups continued to improve and the
stock market index turned up, the federal agency reported.
Reuter
|
<NATIONAL WESTMINSTER BANK PLC> 1ST QTR NET | Net 17.7 mln vs 15.3 mln
NOTE: <National Westminster Bank PLC> subsidiary.
Loan loss provision 13.8 mln vs 13.0 mln
Investment securitiesd gaons 2,003,000 dlrs vs 169,000
dlrs.
Figures in dollars.
Reuter
|
IRVING BANK <V> CITES LOANS IN EARNING DECLINE | Irving Bank Corp said the decline in
its first quarter earnings to 28.6 mln dlrs from 30.4 mln dlrs
in the year-ago period were due to the placement on a
non-accrual basis of 215 mln dlrs and 33 mln dlrs of medium and
long-term loans to borrowers in Brazil and Equador.
Excluding the impact of the non-accrual loans, Irving said
its first quarter net income would have rose 8.4 pct to 32.9
mln and per share amounts would have risen eight pct to 1.75
dlr. In the first quarter the bank reported earnings per share
of 1.51 dlr compared to 1.62 dlr in the same period last year.
Reuter
|
SEARS <S> TO REDEEM ADJUSTABLE RATE PREFERRED | Sears, Roebuck and Co said it will
redeem all its outstanding adjustable rate preferred shares,
first series. The redemption price is 103.79 dlrs a share,
which includes accrued and unpaid dividends from April 1, 1987,
to the date of redemption of 79 cts a share.
Of the 50 mln shares authorized, 2.5 mln were issued, the
company said.
It said no dividends will accrue on the shares after May
15, 1987.
Reuter
|
GLOBAL LOWERS HEAVY FUELS PRICES | Global Petroleum corp said today it
lowered the posted cargo prices for number six fuel in the new
york harbor 45 to 75 cts a barrel, effective today.
The decrease brings the prices for one pct sulphur to 20.75
dlrs, down 45 cts, two pct sulphur 20.10 dlrs, down 75 cts, 2.2
pct sulphur 19.75 dlrs, down 75 cts and 2.5 pct sulphur 19.50
dlrs, down 75 cts.
Prices for 0.3 pct and 0.5 pct sulphur remained unchanged
at 22.50 and 21.85 dlrs, it said.
Reuter
|
CHEMICAL NEW YORK CORP <CHL> 1ST QTR NET | shr 1.58 dlrs vs 1.93 dlrs
net 86,220,000 vs 102,629,000
avg shrs 50,831,512 vs 49,156,828
assets 61.04 billion vs 57.95 billion
loans 38.76 billion vs 39.68 billion
deposits 38.20 billion vs 33.14 billion
return on assets 0.57 pct vs 0.71 pct
return on common equity 11.47 pct vs 15.19 pct
NOTE: 1987 qtr net reduced by 12 mln dlrs because 1.04
billion dlrs of Brazil loans were placed on non-accrual
Reuter
|
CCC ACCEPTS BONUS ON CATTLE TO CANARY ISLANDS | The Commodity Credit Corporation
(CCC) has accepted a bid for an export bonus to cover the sale
of 2,750 head of dairy cattle to the Canary Islands, the U.S.
Agriculture Department said.
The cattle are for delivery May, 1987-October, 1988, it
said.
The bonus was 1,379.00 dlrs per head and was made to
Holstein-Friesian, Inc and will be paid in the form of
commodities from the CCC inventory.
An additional 175 headed of dairy cattle for still
available to the Canary Islands under the Export Enhancement
Program initiative announced July 28, 1986, it said.
Reuter
|
AFG INDUSTRIES INC <AFG> 1ST QTR NET | Shr primary 54 cts vs 41 cts
Shr diluted 51 cts vs 38 cts
Net 9,098,000 vs 5.924,000
Revs 111.7 mln vs 85.0 mln
Avg shrs primary 16,889,254 vs 14,500,737
Reuter
|
WORK ON GREEK ALUMINA PLANT TO START END MAY | Preparatory work for construction of a
450 mln dlr alumina plant near the village of Aghia Efthymia in
the Greek province of Fokida will begin at the end of next
month and the plant will be operational by 1992, Industry
Undersecretary George Petsos said.
Greece yesterday signed contracts with the Soviet Union for
the joint venture project, the biggest investment in the
country for 20 years.
Petsos said the Soviet Union, which had initially agreed to
buy 380,000 tonnes, would now purchase the plant's entire
output of 600,000 tonnes a year.
Reuter
|
<NEW MILFORD SAVINGS BANK> 1ST QTR NET | Shr 62 cts vs 26 cts
Net 2,312,000 vs 944,000
NOTE: 1987 includes five ct shr charge from loan loss
provision.
Reuter
|
COMMONWEALTH ALUMINUM PUTS PLANT ON THE BLOCK | Commonwealth Aluminum
(Comalco) said it put its Goldendale, Wash., smelter back on
the market after would-be buyer, Columbia Aluminum Corp, of
Hermiston, Ore., failed to pull together financing by an April
one deadline.
The plant, which has an asking price of 18.7 mln dlrs plus
several mln more dlrs for inventory, it said. Commonwealth said
it is continuing talks with Columbia, but has also opened talks
with other interested parties.
Commonwealth bought the plant in January 1985 and closed it
Feb 15, 1987, leaving about 400 workers jobless.
Reuter
|
ALZA CORP ISSUES 75 MLN DLR CONVERTIBLE BOND | Alza Corp <AZA>, a U.S. Pharmaceutical
products concern, is issuing a 75 mln dlr convertible eurobond
due May 8, 2002 with an indicated coupon of 5-1/2 to 5-3/4 pct
and par pricing, lead manager Merrill Lynch Capital Markets
said.
The bond is available in denominations of 1,000 and 10,000
dlrs and will be listed in Luxembourg.
Fees comprise 1-1/2 pct selling concession and 1/2 pct
management and underwriting combined. The conversion premium is
indicated at 17 to 22 pct. Final terms will be fixed before
April 21.
REUTER
|
INTERFINCO SETS 50 MLN SFR FIVE-YEAR CONVERTIBLE | Interfinco S.A. Of Luxembourg is
launching a 50 mln Swiss franc five-year convertible bond with
an indicated coupon of 2-1/2 pct, lead manager S.G. Warburg
Soditic SA said.
The issue, guaranteed by Cofide-Compagnia Finanziaria de
Benedetti SpA of Turin, Italy, is convertible into shares of
<CIR SpA - Compagnie Industriali Riunite> at an indicated
premium of five pct.
REUTER
|
S/P DOWNGRADES TEXACO'S <TX> DEBT TO 'D' | Standard and Poor's Corp said it
downgraded to D about 8.4 billion dlrs of debt of Texaco Inc
and the oil company's subsidiaries.
The rating agency cited Texaco's filing over the weekend
for protection under Chapter 11 of the Bankruptcy Code while
Texaco seeks judicial relief from an 8.5 billion dlr, plus
interest and costs, judgement against it in the suit brought by
Pennzoil Co <PZL>.
S and P uses the D rating grade for securities issued by
companies in Chapter 11 reorganization, the agency said.
Reduced to D from B were the senior debt of Texaco, Getty
Oil Co, Getty Oil International (Caribbean) N.V., Pembroke
Capital Co Inc, Reserve Oil and Gas Co, Texaco Capital Inc,
Texaco Capital N.V., Texaco Convent Refining Inc, Tidewater Oil
Co and Loop Inc.
Cut to D from C were MAGEC Finance Co and from CCC the
subordinated debt of Texaco Capital N.V.
Reuter
|
H.F. AHMANSON AND CO <AHM> 1ST QTR NET | Shr 84 cts vs 80 cts
Net 82,416,000 vs 67,819,000
Revs 703.9 mln vs 759.7 mln
Avg shrs 98,369,307 vs 84,807,498
Loans 19.06 billion vs 19.51 billion
Deposits 21.60 billion vs 19.86 billion
Assets 27.16 billion vs 27.15 billion
Note: Prior qtr per shr figure adjusted for three-for-one
stock split of May 1986.
Reuter
|
DU PONT <DD> UNIT TO REDEEM NOTES | Du Pont Overseas Capital N.V., a unit
of Du Pont Co, said it will redeem on May 15 all 189 mln dlrs
of its outstanding 13-3/4 pct guaranteed retractable notes due
1997.
It will buy back the notes at par value plus accrued
interest, Du Pont Overseas said.
Reuter
|
BERKEY <BKY> ELECTS CHAIRMAN, RAISES 4 MLN DLRS | Berkey Inc said it elected
Jonathan Taplin as its chairman, replacing A. Michael Victory,
who will remain as a company director.
Taplin was formerly a director of the company, Berkey said.
In addition, the company said it will raise four mln dlrs
through a privately-placed convertible preferred stock offering
and other securities.
It said the offering will give holders upon exercise the
right to acquire approximately 1.5 mln shares of the company's
common stock.
Reuter
|
PAKISTAN REPORTEDLY BOUGHT WHITE SUGAR AT TENDER | Pakistan is reported to have bought
100,000 tonnes of white sugar at its weekend tender from a
North Korean operator, traders said.
The purchase, believed priced around 210 dlrs a tonne cost
and freight for fine/medium grain, was due to be shipped for
arrival in May (30,000 tonnes), in June (45,000) and in July
(25,000 tonnes), they said.
Reuter
|
bank of england to auction up to 3.25 billion stg in gilts, first auction in mid-may
| |
EKN BANK SETS 25 MLN SWISS FRANC WARRANT BOND | EKN Bank of Nidwalden is launching a 25
mln Swiss franc 2-1/2 pct 10-year bond with warrants at par,
lead manager Bank Leu AG said.
Each 1,000-franc bond carries a warrant entitling the
holder to buy one 200-franc nominal EKN bearer share for 510
francs.
Subscriptions close April 24.
REUTER
|
MOODY'S MAY DOWNGRADE THREE FRENCH BANKS | Moody's Investors Service Inc said it
may downgrade the top-flight Aaa ratings of Societe Generale,
Banque Nationale de Paris and Credit Lyonnais.
The rating agency cited the ongoing deregulation of the
French banking industry and financial markets. Moody's said it
anticipates increasing competition and reduced profitability of
the banks' core businesses.
The senior debt and certificates of deposit of the three
banks are rated Aaa. However, their Prime-1 commercial paper
ratings are not under review. Issues supported by long-term
letters of credit of the banks may also be affected.
Reuter
|
FED EXPECTED TO SET THREE-DAY REPURCHASE PACTS | The Federal Reserve is expected to
enter the U.S. Government securities market to add temporary
reserves directly by arranging three-day System repurchase
agreements, economists said.
They said the Fed may add the reserves indirectly instead
via a large round, two billion dlrs or more, of customer
repurchase agreements.
Federal funds, which averaged a high 6.35 pct on Friday,
opened at 6-7/16 pct and traded between there and 6-1/2 pct.
Reuter
|
ALLIED STORES <ALS> SELLS DILLARD <DDS> TWO UNITS | Dillard Department Stores Inc, based
in Little Rock, Ark., and Allied Stores Corp jointly said they
entered a definitive purchase agreement for the sale to Dillard
of the Joske's and the Cain-Sloan divisions of Allied for 255
mln dlrs cash, subject to certain closing adjustments.
The sale excludes certain real estate assets of Joske's and
Cain-Sloan, which Allied estimates have an aggregate value of
30 mln dlrs based on current market conditions.
Joske's has 26 stores in Texas and one in Arizona.
Cain-Sloan has four stores in Nashville. Joske's is the largest
unit Allied has slated for sale in its restructuring.
Allied Stores Corp, a subsidiary of Campeau Corp, was
acquired by acquired by the Canadian developer last year.
Robert Campeau, chairman of Allied, said "this is a
terrific start to our disposition program which is proceeding
well ahead of schedule. This sale will fulfill the requirements
under our bank agreements to sell certain assets by June 30 and
give us additional flexibility in the disposal of the remaining
divisions being sold."
Allied Stores is required to pay 200 mln dlrs in bank debt
by June 30. There had been some doubts on Wall Street that the
company could meet the payment.
A Campeau source said, "We believe this cash sale puts us
in a very strong negotiating position to maximize the proceeds
Allied can receive from its other divisions."
"Allied was able to put itself in a position where it knows
it will be able to meet the June 30 payment schedules," the
source said.
About 1.1 bilion dlrs in Allied assets had been targeted
for sale by Dec. 31, 1988 to pay for the aquisition of Allied
by Campeau.
Allied will be taking bids for its other divisions.
Targeted for sale are Bonwit Tellers, Garfinckel's, Dey's,
Donaldson's, Herpolsheimer's, Heer's, Miller's, Miller and
Rhoads, Pomeroy's, Catherine's, Plymouth Shops, and Jerry
Leonard. The divisions provided 38.4 pct of Allied net sales
and 11.8 pct of store profit in fiscal 1985.
Reuter
|
TEXACO <QTX> NOT REQUIRED TO POST BOND | A Texas State Court of Appeal agreed
that Texaco Inc's bankruptcy petition effectively stays the
company's obligation under Texas law to post a bond in its
10.53 billion dlr litigation against Pennzoil Co <PZL>.
In a brief hearing before a three-judge appeals court,
Texaco attorney James Sales said the company's motion to reduce
the amount of bond required to appeal the case was moot because
Texaco's Chapter 11 petition protects the company from all
previously existing debts and obligations.
Lawyers for Pennzoil, which won the 10.53 billion dlr
judgment in a struggle over Texaco's acquisition of Getty Oil
Co, did not object.
Texaco lawyers said they planned to pursue the appeal in
Texas courts and in Federal courts, if necessary.
The Texaco lawyers said the company would seek permission
from the bankruptcy court in the Southern District of New York
to pursue the Pennzoil litigation.
Reuter
|
CBT MMI STOCK INDEX FUTURES TO EXPIRE THURSDAY | The Chicago Board of Trade's (CBT)
April Major Market Index (MMI) stock index futures will expire
1515 CDT Thursday instead of Friday because of the Good Friday
holiday, the exchange said.
The Chicago Board Options Exchange said April options on
the Standard and Poor's 100 and 500 stock indexes, currency
options and about one-third of the listed individual equity
options will expire at their normal time Saturday, April 18,
although the last day of trading will be Thursday in those
contracts.
Reuter
|
HUGHES' U.S. RIG COUNT DOWN THREE THIS WEEK | U.S. drilling activity slowed
marginally in the week ended today as the number of active
rotary rigs fell by three to 749 against 917 one year ago,
Hughes Tool Co said.
The latest total included 662 working land rigs, 70
offshore rigs and 17 in inland waters.
Among individual states, California dropped by three,
Colorado by six , Wyoming by one, West Virginia by six.
Drilling increases were reported in Kansas where five rigs were
added, in Michigan three, in Louisiana one and Oklahoma 11. Rig
counts were unchanged in New Mexico and Texas.
Reuter
|
NCR <NCR> CONTINUES TO EXPECT EARNINGS GROWTH | NCR Corp, earlier reporting higher
first quarter profit, said it continues to expect that it will
report record earnings and revenue for all of 1987.
"Our optimism is based on our incoming order rates and the
strength of our product lines," the company said.
NCR Corp plans additional new product announcements this
year, it said without elaborating.
NCR earlier said first quarter profit increased to 61.5 mln
dlrs or 65 cts share from 50.2 mln dlrs or 51 cts share in the
prior year. NCR's 1986 full-year earnings rose to 336.5 mln
dlrs from 315.2 mln dlrs in the prior year.
NCR said the increase in first quarter profit resulted from
strong revenue growth, which was particularly strong in Europe
and Pacific marketing groups.
Growth in U.S. revenues also improved, the company said.
First quarter revenues increased to 1.12 billion dlrs from
960.8 mln dlrs in the prior year.
NCR's U.S. dollar value of 1987 first quarter worldwide
incoming orders posted a very substantial gain over the prior
year first quarter, NCR also said without giving specific
figures. Order growth was broad based across NCR's product
lines, with the greatest growth coming from U.S., it said.
Reuter
|
GENETICS INSTITUTE INC <GENI.O> 1ST QTR LOSS | Period ended February 28
Shr loss 11 cts vs loss 11 cts
Net loss 1,309,000 vs loss 937,000
Revs 5,271,000 vs 4,417,000
Avg shrs 11,690,000 vs 8,724,000
Reuter
|
PRIME COMPUTER <PRM> TO INTRODUCE NEW MACHINES | Prime Computer Inc said tomorrow
it will introduce two new high-end superminicomputers.
The company said the machines will significantly expand the
performance of its 50 Series product line. It gave no further
details.
Reuter
|
ENTRE COMPUTER <ETRE.O> CLOSING OVERSEAS UNITS | Entre Computer Centers Inc said it
is discontinuing its European and Australian operations.
The company today reported a loss for the second quarter
ended February 28 of 2,733,000 dlrs, after a 6,705,000 dlr
pretax provision for the shutdown of the overseas units and a
2,511,000 dlr tax credit. A year earlier it earned 911,000
dlrs.
It said the overseas operations lost 400,000 dlrs in the
second quarter and did not appear strong enough to provide for
future growth.
Reuter
|
MOODY'S MAY DOWNGRADE IRVING <V> DEBT | Moody's Investors Service Inc said it
may downgrade 950 mln dlrs of debt of Irving Bank Corp and lead
bank Irving Trust Co.
The rating agency said it will assess Irving's ability to
substantially improve operating results in increasingly
competitive markets. The review will also focus on Irving's
shifting risk profile in light of its modest capital base.
Moody's cited the bank's significant exposure to less
developed countries. Under review are the parent's Aa-3 senior
debt, A-1 subordinated debt and Aa-3 preferred stock and Irving
Trust's Aa-1 long-term desposits and letters of credit.
Reuter
|
ITALY'S BANCA COMMERCIALE TO LAUNCH EUROLIRE BONDS | State bank Banca Commerciale Italiana
(BCI) said it is launching a 50 billion lire eurobond on behalf
of Merrill Lynch & Co. Due May 26, 1992 paying 10 pct and
priced at 100 -1/2 pct.
BCI said in a statement that it is leading an international
underwriting consortium of 25 banks and financial institutions.
The bank said Merrill Lynch International and Co is co-lead
manager.
The non-callable bond is available in denominations of two
mln lire and will be listed in Luxembourg, BCI said.
REUTER
|
ENTRE COMPUTER CENTERS INC <ETRE> 2ND QTR LOSS | Shr loss 29 cts vs profit 10 cts
Net loss 2,733,000 vs profit 911,000
Revs 21.5 mln vs 18.5 mln
1st half
Shr loss 23 cts vs profit 26 cts
Net loss 2,154,000 vs profit 2,445,000
Revs 37.8 mln vs 37.7 mln
NOTE: Current year net both periods includes 6,705,000 dlr
pretax provision for closing overseas operations and tax
credits 2,511,000 dlrs in quarter and 1,977,000 dlrs in half.
Reuter
|
MERRILL LYNCH <MER> INVESTMENT REVENUES UP | Merrill Lynch and Co said investment
banking revenues were strong in the first quarter, rising to
257.4 mln dlrs from 152.9 mln in the first quarter 1986.
"We have made steady progress in a period of market
activity which has been marked by unprecedented activity,"
William Schreyer, chairman and cheif executive officer, and
Daniel Tully, president and chief operating officer, said.
Earlier, the company reported first quarter net income of
108.6 mln dlrs, or one dlr per share, up from 86.8 mln dlrs, or
85 cts per share, in 1986's first quarter.
Merrill Lynch said its insurance revenues made the biggest
gains in the first quarter, rising to 242.3 mln dlrs in the
this first quarter, from 68.3 mln dlrs in last year's first
quarter.
Reuter
|
DSC COMMUNICATIONS <DISI.O> AMENDS SUPPLY PACT | DSC Communications Corp said it amended
an existing long term supply contract with MCI Communications
Corp <MCIC> for deliveries of a new tandem switch.
Deliveries of the switch, the DEX 600E, are scheduled to
begin in third quarter of 1988 and end by year-end 1989, the
telecommunications systems company said.
The new switch increases the port capacity of DSC's
existing 600 switches, it said.
Under the amended agreement, DSC will also deliver signal
point transfer products to MCI.
Reuter
|
WOODWARD AND LOTHROP PRESIDENT RESIGNS | Woodward and Lothrop Inc said
president David Mullen resigned, and will be replaced by Tom
Roach effective April 20, 1987.
Woodward and Lothrop, a privately held retailer, said
Mullen has stated his desire to pursure other business
interests.
Roach joined J.W. Robinson Inc of Los Angeles as chairman
in March, 1986, resigning shortly after parent company
Associated Dry Goods was acquired by May Co.
Reuter
|
STANDARD MICROSYSTEMS CORP <SMSC.O> 4TH QTR NET | Feb 28 end
Shr profit four cts vs loss nil
Net profit 448,000 vs loss 28,000
Revs 15.1 mln vs 11.5 mln
Avg shrs 11.2 mln vs 11.1 mln
Year
Shr profit four cts vs profit nil
Net profit 459,000 vs profit 51,000
Revs 53.2 mln vs 44.5 mln
Avg shrs 11.2 mln vs 11.1 mln
NOTE: Net includes tax credits of 53,000 dlrs vs 1,023,000
dlrs in quarter and 48,000 dlrs vs 2,557,000 dlrs in year.
Reuter
|
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST <PEI> | Oper shr 39 cts vs 47 cts
Oper net 2,104,462 vs 2,452,420
Revs 4,675,904 vs 4,744,248
Avg shrs 5,427,561 vs 5,139,415
1st half
Oper shr 82 cts vs 93 cts
Oper net 4,418,718 vs 4,609,613
Revs 9,346,483 vs 9,338,590
Avg shrs 5,427,486 vs 4,943,966
NOTE: Current year net excludes gains on sale of real
estate of 470,778 dlrs in quarter and 1,533,273 dlrs in half.
Period ended February 28.
Reuter
|
ALLWASTE INC <ALWS.O> 2ND QTR FEB 28 | Shr profit four cts vs loss one cts
Net profit 172,000 vs loss 180,000
Revs 4.2 mln vs 883,000
Six months
Shr profit nine cts vs loss four cts
Net profit 315,000 vs loss 107,000
Revs 7.4 mln vs 1.8 mln
Avg shrs 4.4 mln vs 2.6 mln
Reuter
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COMBUSTION ENGINEERING <CSP> IN SYSTEMS PACT | Combustion Engineering Inc said
its C-E Environmental Systems and Services Inc unit agreed to
work with Keeler/Dorr-Oliver, a unit of Standard Oil Co <SRD>,
to develop systems to destroy hazardous wastes.
Under the teaming arrangement, Keeler/Dorr-Oliver will
supply fluid bed technology, equipment and services. C-E
Environmental will provide environmental consulting and site
investigations, engineering and construction services and
operation, maintenance and training services.
Reuter
|
SCOTT AND STRINGFELLOW <SCOT.O> 3RD QTR MAR 31 | Shr 37 cts vs 37 cts
Net 687,888 vs 441,659
Revs 7.9 mln vs 6.8 mln
Nine months
Shr 1.12 dlrs vs 1.07 dlrs
Net 1.8 mln vs 1.3 mln
Revs 23.2 mln vs 19.7 mln
Avg shrs 1.6 mln vs 1.2 mln
NOTE:Full name is Scott and Stringfellow Financial Corp.
Reuter
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GENERAL NUTRITION <GNC> SHARES TO BE SOLD | General Nutrition Inc said it has
filed for a secondary offering of eight mln common shares.
It said all the shares are being sold by the estate of
founder David B. Shakarian. Lead underwriter will be Kidder,
Peabody and Co Inc.
General Nutrition has about 33.0 mln shares outstanding.
Reuter
|
WALL STREET STOCKS/TEXACO <QTX>, PENNZOIL <PZL> | Texaco Inc's decision to file for
protection under the bankruptcy code had a chilling effect on
its stock, and sent Pennzoil Co's shares sharply lower as well,
traders said.
Texaco dropped 3-1/2 to 28-3/8 and Pennzoil fell 12-7/8 to
79-3/8.
"A lot of people had bid up Pennzoil, expecting a
settlement of two to five billion dlrs in this case," energy
analyst Rosario Ilacqua of L.F. Rothschild said, "and now
nobody knows where this is going to settle out."
"It seems to me that the hope of an out of court settlement
in this long running court case had a greater relative impact
on Pennzoil's stock then on Texaco's," analyst Sanford
Margoshes of Shearson Lehman Brothers said, citing the sharper
decline in Pennzoil this morning.
The litigation arose when Pennzoil sued Texaco for
interfering in its 1984 agreement to acquire Getty Oil. In
1985, a Texas state court ruled in favor of Pennzoil and
ordered Texaco to pay 10.53 billion dlrs in damages.
Citing the burden of the court case and a Supreme Court
ruling last week in favor of Pennzoil concerning the amount
Texaco must put up as a bond while appealing the case, Texaco
filed for the Chapter 11 protection on Sunday.
"That decision puts Pennzoil in the unsecured creditor
catagory and that means they have lost their preferred
position, which is causing the most damage to the stock today,"
Margoshes said. "They will only be able to collect payment
after secured creditors have collected," he said.
"From the standpoint of the attractiveness of Texaco's
stock," Margoshes said, "I have turned quite bullish."
"I think there is an overreaction in the downside of the
(Texaco) stock today, with some investors believing that Texaco
cannot effectively conduct its business. But only Texaco Inc
and two subsidiaries are under protection, and there is no
indication that they will not be able to proceed adequately,"
Margoshes said. In addition, he noted, "there are insitutions
that just cannot legally--according to their own
regulations--hold a stock that is in bankruptcy. That caused
much of the selling at the opening," he said.
L.F. Rothschild's Ilacqua said "you have to wonder if an
interim settlement can be reached between the two or if this
thing is going to go the full legal route, and that is what
investment decisions hinge on."
He said "if this whole thing settles with Texaco owing a
lot less than the 10 billion dlrs, speculating in Texaco stock
could be quite interesting." He expects the stock to trade 25
dlr to 30 dlr a share range for as long as it takes for a
decision to made in the case.
Reuter
|
JOHN MOWLEM ARRANGES 50 MLN STERLING CP PROGRAM | John Mowlem Plc, the U.K. Building and
construction company, has arranged a 50 mln stg commercial
paper program, with an option to issue notes in U.S. Dollars,
Mowlem treasurer Philip Ridal said.
He said the company hopes to make the first drawings in May
to take advantage of lower borrowing costs and the greater
flexibility afforded by this program. It also should increase
the company's arbitrage opportunities, he added.
The program was arranged by Kleinwort Benson Ltd, which
will act as a dealer along with Morgan Grenfell and Co Ltd and
Swiss Bank Corp International Ltd.
The sterling notes will be sold in denominations of one mln
and 500,000 stg and will have maturities of seven to 364 days.
Ridal said the new program will complement a note issuance
facility the company arranged last year and also increase the
investor base.
REUTER
|
FOSTER <FWC> UNIT AUDIT REVEALS DISCREPANCIES | Foster Wheeler Corp <FWC> said an
audit of its Stearns Airport Equiment Co Inc unit, revealed
"substantial discrepancies" in Stearns accounts that may
require material adjustments to previously announce
consolidated results of the company and its subsidiaries.
Foster said certain Stearn officers and senior management
made Stearn's operations appear more profitable than they were
by improperly recording job costs. It said Stearn's president
and controller had resigned. A Foster spokesman said he did not
know the names of the president and controller, and could not
immediately comment on the release.
Foster said the amount involved in the "discrepancy" is
about 13.7 mln dlrs before taxes or about 8.2 mln dlrs net
after tax due to an "improper recording of job costs over a
period of several years and continuing through part of the
first quarter of 1987."
Stearns is a unit of Foster's Conergic Corp subsidiary.
The company said the impact on its results for 1987 was not
"likely to be significant" but the amount to be charged to
prior periods had not been determined.
Foster reported after tax earnings of 28 mln dlrs, 26 mln
dlrs and 35.4 mln dlrs for 1986, 1985, and 1984, respectively.
Stearns, based in Crowley, Texas, makes airport baggage
conveyor equipment and passenger loading bridges.
Foster, a diversified international concern with 27
subsidiaries operating worldwide, is based in Livingston, New
Jersey. Its reported revenues for the period ended December 26,
1986 of 1.3 billion dlrs.
The company said a detailed audit and investigation is
continuing. A company spokesman declined to comment further on
the investigation.
Reuter
|
THE HAGUE LAUNCHES SECOND TRANCHE OF CP PROGRAM | Bank Mees en Hope NV, a fully-owned
subsidiary of Algemene Bank Nederland NV, said it launched the
second tranche of a 100 mln guilders commercial paper program
for the city of The Hague.
Mees en Hope declined to comment on the size of the second
tranche but said the first tranche, ended March 10, was for 50
mln guilders.
The second tranche is for the period April 14 to July 14.
Denominations are one mln guilders and the issue price, on a
discount to yield basis, is to be set tomorrow at 1000 hours
local.
Clearing and delivery of the program will be via the short
term paper clearing institute of the Dutch Central Bank.
The Hague was the first Dutch city to start a commercial
paper program, allowed on the Dutch capital markets since
January 1986.
Rotterdam and Amsterdam have since followed with programs
of 400 mln and 300 mln guilders respectively.
REUTER
|
HUGHES' CANADA RIG COUNT DOWN 19 THIS WEEK | Drilling activity slowed down
substantially in Canada. The number of active rotary rigs fell
by 19 in the week ended today, Hughes Tool Co reported.
A total of 66 rigs were working during the week, compared
with 71 one year ago, it said.
Reuter
|
TAIWAN ANNOUNCES NEW ROUND OF IMPORT TARIFF CUTS | Taiwan announced plans for another round
of import tariff cuts on 862 foreign goods shortly before trade
talks with Washington which officials described as a move to
help balance trade with the United States.
Wang Der-Hwa, Deputy Director of the Finance Ministry's
Customs Administration Department, told reporters the list of
products included 60 items asked by Washington.
"The move is part of our government efforts to encourage
imports from our trading partners, particularly from the United
States," he said.
He said the ministry sent a proposal today to the cabinet
that the tariffs on such products as cosmetics, bicycles,
apples, radios, garments, soybeans and television sets be cut
by between five and 50 pct.
The cabinet was expected to give its approval next Thursday
and the new tariff cuts would be implemented possibly starting
on April 20, he added.
Taiwan introduced a sweeping tariff cut on some 1,700
foreign products last January aimed at helping reduce its
growing trade surplus with the United States, the island's
largest trading partner.
Washington however was not satisfied with the cuts and
pressed for more reductions as a way of cutting its huge trade
deficit with Taipei.
Washington's deficit with Taipei rose to a record 13.6
billion U.S. Dlrs last year from 10.2 billion in 1985. It
widened to 3.61 billion in the first quarter of 1987 from 2.78
billion a year earlier, Taiwan's official figures show.
Today's announcement came before a departure later today of
a 15-member Taiwan delegation for Washington for a series of
trade talks with U.S. Officials.
The delegation's leader, Vincent Siew, told reporters last
night he was leaving with "a heavy heart," meaning that he would
face tough talks in Washington because of rising protectionist
sentiments in the U.S. Congress. Taiwan's 1986 trade surplus
with Washington was the third largest, after Japan and Canada.
Siew said the talks, starting on April 14, would cover U.S.
Calls for Taiwan to open its market to American products,
purchases of major U.S. Machinery and power plant equipment,
import tariff cuts and protection of intellectual property.
"I am afraid this time we have to give more than take from
our talks with the U.S.," he said without elaborating.
REUTER
|
U.S. JUNK BONDS UNAFFECTED BY TEXACO <TX> FILING | Despite a sharp early fall in Texaco
Inc bonds, the 125 billion dlr U.S. junk bond market was
largely unaffected by Texaco's weekend filing for protection
under Chapter 11 of the Bankruptcy Code, analysts said.
"Texaco's filing had little, if any, effect on junk bond
prices this morning. It should not spill over to the overall
market like LTV Corp's <LTV> bankruptcy filing did last
summer," said one analyst.
Traders said some Texaco debt issues fell over 30 points
this morning in thin trading, but recouped about half that.
"Because of the Texaco filing, some investors bid down its
paper to the mid-60 area (around 650 dlrs per 1,000 dlr face
value) from around 95 Friday," said a dealer in high-yield, low
rated bonds.
"But sellers could not be found at those levels and the
bids soon rebounded to the 75 to 85 area," he added, referring
to such issues as Texaco's 13 pct notes of 1991, the 13-1/4s of
1999 and 13-5/8s of 1994. All were in the mid-90s Friday.
The rebound occurred after Standard and Poor's Corp
downgraded the debt ratings of 8.4 billion dlrs of debt of
Texaco and its subsidiaries to D, traders noted.
S and P cited the weekend bankruptcy filing. The agency
said it uses the D grade for securities issued by companies in
Chapter 11 reorganization.
Moody's Investors Service Inc followed suit, cutting most
of the debt of Texaco and its units to Caa.
The junk bond market experienced a short-lived downturn
last summer when LTV's bankruptcy filing sparked worries that
credit conditions of other steel companies would also worsen.
"This is clearly not the case with Texaco," said one
trader. Because of their high yields, junk bonds have lately
outperformed investment grade corporates, he and others said.
Analysts and portfolio managers said they viewed Texaco's
bankruptcy filing as a defensive move.
Indeed, a Texas State Court of Appeal this morning said the
bankruptcy petition effectively stays Texaco's obligation under
Texas law to post a bond in its 10.53 billion dlr litigation
against Pennzoil Co <PZL>.
"The filing was not the result of credit weakness. The
company got through the oil crisis alright," said one portfolio
manager.
Others who run junk bond portfolios agreed with that
assessment and said they would still buy high-yield issues.
Reuter
|
BULGARIA, ROMANIA GRAIN CROP SEEN LESS FAVORABLE | Current prospects for this year's
grain crop in Bulgaria and Romania appear less favorable than
in 1986, the U.S. Agriculture Department's officer in Belgrade
said in a field report.
The report said the assessment was based on travel in the
two countries from March 30 to April 4.
It said crop conditions were better than earlier expected
following the extreme dry conditions last fall and the
prolonged winter temperatures this spring.
However, in general plant development was at least three
weeks or more behind normal this spring, and conditions varied
greatly by regions, the report said.
Fields seeded during the optimum period last fall, and
especially those receiving supplemental irrigation water (about
65 pct of the fields observed), appeared to be in good
condition, with little evidence of winterkill, while others
varied considerably, the report said.
Fields lacking adequate moisture last fall showed weak and
uneven stands. Spotty germination and winterkill in those
fields averaged 10 to 30 pct, it said.
Reuter
|
ELCOR CORP <ELK> 3RD QTR MARCH 31 | Shr 21 cts vs eight cts
Net 1.5 mln vs 536,000
Revs 26.6 mln vs 17.7 mln
Nine months
Shr 1.11 dlrs vs 43 cts
Net 7.8 mln vs 3.0 mln
Revs 86.9 mln vs 82.9 mln
NOTE:Shares adjusted for 2-for-1 stock split payable May
28, 1987 to holders of record May 14, 1987.
1987 3rd qtr and nine months includes tax loss carryforward
gain of 695,000 dlrs and 3.6 mln dlrs, respectively.
1986 3rd qtr nine months includes tax loss carryforward
gains of 260,000 dlrs and 1.4 mln dlrs, respectively.
Reuter
|
CAPITAL MARKET BORROWING FALLS IN MARCH, OECD SAYS | Borrowing on the international capital
markets contracted significantly in March with 23.1 billion
dlrs of medium and long-term funds raised, down 3.4 billion
from February and about nine billion dlrs less than in March
1986, the Organisation for Economic Cooperation and Development
said in its latest monthly report.
Borrowing on external bond markets totalled 19.7 billion
dlrs, some 1.1 billion below the February figure.
The market for floating rate notes saw further setbacks and
the volume of new offerings fell to only 800 mln dlrs from 1.4
billion in February.
For the first quarter as a whole, the OECD said, funds
raised on the floating rate bond market totalled three billion
dlrs, the lowest figure since the third quarter of 1982.
Activity on the straight bond market was also less buoyant
than in previous months while equity-related offerings
continued to benefit from the good performance of major stock
markets.
Exchange rate uncertainties continued to have a major
impact on the currency composition of new bonds. Dollar issues
totalled 6.8 billion dlrs, accounting for only 35 pct of total
offerings, but borrowing was particularly heavy on the euroyen
market (3.3 billion dlrs) and in sterling (2.8 billion dlrs).
Offerings of mark bonds declined to 1.3 billion dlrs from
around three billion dlrs in the two previous months, whilst
strong advances were recorded in the euro-Australian and
euro-Canadian dollar sectors, where new offerings exceeded one
billion dlrs, the OECD said.
In the syndicated credit market, the volume of new loans
fell to 2.4 billion dlrs in March from 4.2 billion in February.
Similarly, activity on the market for note issuance and other
back-up facilities fell to one billion dlrs from 1.5 billion.
In March, OECD borrowers accounted for over 90 pct of total
borrowing. Japan was the largest fund-raiser with 4.5 billion
dlrs, followed by the U.S. With 3.9 billion and Britain with
2.4 billion dlrs.
France, West Germany and Norway raised funds of over one
billion dlrs each.
Borrowing by developing countries totalled one billion
dlrs, about the same amount as in February. But borrowing by
east European countries fell to 300 mln dlrs from 600 mln in
February, the OECD added.
REUTER
|
SAUDI ARABIA BUYS RBD PALM OLEIN | Saudi Arabia bought 4,000 tonnes of
Malaysian refined bleached deodorised palm olein for June 1/10
shipment at around 356 dlrs per tonne cost and freight Jeddah,
traders said.
Reuter
|
ABINGTON SAVINGS BANK <ABBK.O> 1ST QTR NET | Shr 27 cts vs not given
Net 617,000 vs 550,000
Loans 92.8 mln vs 84.7 mln
Deposits 121.9 mln vs 119.4 mln
Assets 155.4 mln vs 152.4 mln
Note: prior share not given due to June 18, 1986 conversion
to stock ownserhip
Reuter
|
GREAT LAKES <GL.TO> IN 390 MLN DLR EXPANSION | Great Lakes Forest Products Ltd said it
plans a 390 mln dlr modernization and expansion of its fine
paper and newsprint operations in northwestern Ontario over the
next five years.
It will install a 175 mln dlr fine paper machine at Dryden
and a 215 mln dlr newsprint machine at Thunder Bay to replace
two aging machines. The Dryden machine will have capacity to
produce 175,000 metric tons of fine papers annually when it
starts up in the 1989 third quarter, while the Thunder Bay
machine will have design capacity of 240,000 metric tons
annually and is expected to be in operation by early 1991.
Great Lakes said it expects to pay for the program mainly
with internally generated cash flow, but external financing
will be available to support peak spending periods.
It said the expansion's effect on company employment levels
will be minimal.
Great Lakes said a decision on a joint venture with five
publisher-partners to construct a newsprint mill in
northeastern Washington State should be coming from the
partners in the near future. Great Lakes' capital investment in
this project would be about 60 mln dlrs.
Reuter
|
BANKING CENTER <TBCX> 1ST QTR NET | Shr 29 cts vs not given
Net 3,508,000 vs 2,483,000
NOTE: Company went public in August 1986.
1986 figures restated.
Net includes loan loss provision 550,000 dlrs vs 203,000
dlrs, gain on sale of securities of 309,000 dlrs vs 638,000
dlrs and gain on sale of loans 403,000 dlrs vs 553,000 dlrs.
Reuter
|
SOVIET TANKERS SET TO CARRY KUWAITI OIL | Kuwait has agreed to charter tankers
from the Soviet Union in a move to protect its oil exports
through the Mideast Gulf, diplomatic sources said.
They said the agreement followed months of talks with the
Soviet Union and the U.S. On ways to secure its oil exports
after Iran started to attack Kuwaiti-connected vessels in
retaliation for Kuwait's backing for Iran's war enemy Iraq.
Diplomats said they expect three Soviet tankers initially
to reinforce other flags already supporting Kuwait's 22-tanker
fleet.
The diplomats said they knew of no deal for Moscow to
provide a naval escort for its own vessels, but "the idea of
protection is implicit," one said.
They said Soviet cargo ships bound for Kuwait in the past
to unload arms and materiel for road delivery to Iraq were
known to have sailed under escort. So far, none of the Soviet
ships are known to have been attacked by Iran. Diplomats said
they expected the chartered Soviet tankers to sail between
Kuwait and Khor Fakkan on the United Arab Emirates (UAE) coast
a short way outside the Strait of Hormuz at the mouth of the
Gulf.
Reuter
|
CHEMICAL <CHL> NET HURT BY BRAZIL, EXPENSES | Chemical New York Corp said its
first-quarter profits fell by 16 pct, largely because it placed
1.04 billion dlrs of loans to Brazil on non-accrual.
Chemical reported first-quarter net income of 86.2 mln
dlrs, down from 102.6 mln a year earlier, but declaring the
Brazilian loans non-performing cost Chemical 21 mln dlrs in
lost interest income, or 12 mln dlrs after-tax.
A 13.3 pct jump in non-interest expense to 471.3 mln dlrs
from 415.9 mln also hit the bottom line. It said the rise was
mainly due to staff costs associated with continued growth in
consumer, capital markets and investment banking activities.
Excluding the effect of placing Brazil on non-accrual,
Chemical said its net income would have been 98.2 mln dlrs, or
4.3 pct below 1986 earnings.
Brazil suspended interest payments on 68 billion dlrs of
medium- and long-term debt on February 20. If they are not
resumed by year's end, Chemical said its after-tax net for the
whole of 1987 will be reduced by about 51 mln dlrs.
Chemical also placed 52 mln dlrs of loans to Ecuador on
non-accrual because the Quito government also suspended
interest payments on its foreign debt. This reduced interest
income by 1.5 mln dlrs.
Chemical said net interest income fell to 476.4 mln dlrs
from 488.9 mln and its net spread narrowed to 3.61 pct from
3.96 pct.
This reflected the reclassification of Brazilian loans, a
reduced federal income tax rate (which affected the calculation
of the taxabale-equivalent adjustment on tax-exempt assets) and
a narrowing of the spread between the prime rate and Chemical's
cost of funds.
Foreign exchange trading profits rose to 37.9 mln dlrs from
27.0 mln, but bond trading profits dropped to 21.9 mln dlrs
from 26.2 mln.
Fees from trust and other banking services rose to 146.5
mln dlrs from 129.3 mln a year earlier, Chemical said.
The provision for loan losses was 87.2 mln dlrs, compared
with 83.8 mln. Net loan charge-offs were 86.5 mln, up from 60.7
mln, leaving the allowance for loan losses at 672.6 mln dlrs at
quarter's end, or 1.74 pct of loans outstanding, compared with
594.3 mln, or 1.50 pct, a year earlier.
Non-accruing loans at the end of March were 2.39 billion
dlrs (1.35 billion excluding Brazil), compared with 1.35
billion at the end of 1986 and 1.22 billion at the end of
March, 1986.
Reuter
|
CAPITAL MARKET BORROWING FALLS IN MARCH, OECD SAYS | Borrowing on the international capital
markets contracted significantly in March with 23.1 billion
dlrs of medium and long-term funds raised, down 3.4 billion
from February and about nine billion dlrs less than in March
1986, the Organisation for Economic Cooperation and Development
said in its latest monthly report.
Borrowing on external bond markets totalled 19.7 billion
dlrs, some 1.1 billion below the February figure.
The market for floating rate notes saw further setbacks and
the volume of new offerings fell to only 800 mln dlrs from 1.4
billion in February.
Reuter
|
GENETICS <GENI.O> SEES HIGHER 87 LOSSES | Genetics Institute Inc,
earlier reporting an increased first quarter net loss, said it
expects to incur losses in fiscal 1987 "that are somewhat higher
than those reported in fiscal 1986."
It had a loss of 4,504,000 dlrs for fiscal 1986 ended
November 30, compared to a fiscal 1985 loss of 1,732,00 dlrs.
The company said the losses result from its strategic
decision to invest prudent levels of equity in development of
products the company can manufacture and bring to market.
Genetics earlier said first quarter ended February 28
losses rose to 1,309,000 dlrs from year-ago loss of 937,000
dlrs.
Reuter
|
INVESTOR BOOSTS TRANS-LUX <TLX> STAKE | Investor Albert Kahn said in a statement
that a group he heads increased its stake in Trans-Lux Corp to
8.9 pct from 8.1 pct on a fully diluted basis.
Kahn said he indicated in a filing with the Securities and
Exchange Commission that his group bought an additional 7,300
Trans-Lux common shares and 100,000 dlrs of nine pct
convertible subordinated debentures due 2005, convertible into
an additional 6,803 shares.
Kahn said he is considering seeking representation on the
Trans-Lux board and starting a proxy contest in connection with
the upcoming annual meeting.
Kahn also said he is seeking an examination of the
Trans-Lux shareholder list and corporate books and records
under Delaware law.
Trans-Lux is a Connecticut concern that leases teleprinters
and display units in brokerage offices, airports and other
public places.
Kahn is a Miami insurance executive and investor.
Reuter
|
SOLITRON DEVICES INC <SOD> 4TH QTR NET | Period ended February 28
Shr 40 cts vs 15 cts
Net 1,747,000 vs 775,000
Revs 13.2 mln vs 13.3 mln
Avg shrs 4,321,376 vs 5,148,318
Year
Shr 67 cts vs 67 cts
Net 3,300,000 vs 3,299,000
Revs 49.5 mln vs 50.2 mln
Avg shrs 4,895,788 vs 4,951,177
Note: 1986 year after 819,000 dlr tax provision and 660,000
dlr tax credit
1985 year after 559,000 dlr credit for anticipated income
tax settlement for 1970 and 331,000 dlr tax provision
Reuter
|
U.S. TRUST CORP FIRST QTR SHR 88 CTS VS 83 CTS
| |
NATIONAL COMPUTER <NLCS.O> TO BUY SHARES | National Computer Systems Inc said
its board authorized the company to repurchase up to 2.0 mln
shares of its common stock in the open market.
The company currently has about 19 mln shares outstanding.
It said the shares will be retained for use in the employee
stock purchase plan, stock option plans and for general
corporate use.
Reuter
|
PEOPLES HERITAGE BANK <PHBK> 1ST QTR NET | Shr 51 cts vs not given
Net 4,661,000 vs 2,499,000
NOTE: Net includes securities gains of 663,000 dlrs vs
1,173,000 dlrs.
Company went public in December 1986.
Reuter
|
AMERITECH <AIT> MICHIGAN UNIT TO LOWER RATES | The Michigan Attorney General
said it reached a settlement with Michigan Bell Telephone Co, a
subsidiary of American Information Technologies Corp, which
will reduce rates, resulting in 79.6 mln dlrs lower revenues to
Michigan Bell.
The settlement reflects Michigan Bell's reduced federal
income taxes resulting from tax reform legislation, and will be
submitted for approval to the Public Service Commission, the
Attorney General's office said.
The lower rates are expected to become effective July one,
when Michigan Bell's tax rate falls to 34 pct from 46 pct.
Reuter
|
STUART HALL CO INC <STUH.O> 1ST QTR FEB 28 NET | Shr 11 cts vs 12 cts
Net 301,820 vs 248,419
Revs 12.1 mln vs 10.2 mln
Avg shrs 2,855,966 vs 2,033,881
Reuter
|
CLAYTON HOMES INC <CMH> 3RD QTR MARCH 31 NET | Shr 21 cts vs 18 cts
Net 2,256,000 vs 1,915,000
Revs 38.2 mln vs 35.3 mln
Nine mths
Shr 62 cts vs 56 cts
Net 6,474,000 vs 5,808,000
Revs 125.9 mln vs 112.3 mln
Backlog nine mln vs six mln
NOTE: Share adjusted for five-for-four stock split in June
1986.
Reuter
|
COMMAND AIRWAYS<COMD.O> MARCH LOAD FACTOR RISES | Command Airways Inc said
its March load factor rose to 44.6 pct from 40.8 pct in March
1986.
Revenue passenger miles rose 43.2 pct in March to 4,573,200
from 3,192,700 and 34.3 pct year-to-date to 41.6 mln from 30.9
mln, the company said.
Available seat miles increased 30.8 pct in March to 10.2
mln from 7,832,800 and 25.9 pct in the 10 months to 101.4 mln
from 80.6 mln.
Year-to-date load factor rose to 41 pct from 38.4 pct, it
said.
Reuter
|
SWIFT TO SELL SOUTH DAKOTA PORK PLANT | Swift Independent Packing Co said it
agreed in principle to sell its Huron, South Dakota, pork plant
to Huron Dressed Beef, for undisclosed terms.
Completion of the proposed transaction is subject to
Huron's ability to hire an experienced work force at
competitive rates, and receive government approval of the
purchase and operation of the plant, Swift said.
Reuter
|
U.S. TRUST CORP <USTC.O> 1ST QTR NET | Shr primary 88 cts vs 83 cts
Shr diluted 84 cts vs 78 cts
Net 8,869,000 vs 8,176,000
Avg Assets 2.62 billion vs 2.42 billion
Deposits 2.06 billion vs 1.80 billion
Reuter
|
PRIMARY GILTS DEALERS NEED NOT BUY AT AUCTIONS | Primary dealers in U.K. Government gilts
will not be required to underwrite the government's offering of
its securities when the first auctions begin in Mid-May, the
Bank of England said.
In an official notice released today, the Bank said "There
will be no formal or informal underwriting arrangement for the
auctions but the Bank encourages all gilt-edged market makers,
as part of their commitment to the market, to participate
actively in the auction process."
The Bank was originally believed to have favoured requiring
the dealers to underwrite auctions, which are patterned after
those in the U.S. Treasury market.
However, the Treasury was believed to have baulked at the
request by the 27 market makers for an allotment commission
which would discourage the largest institutional investors from
placing orders for new stock directly through the Bank of
England, thus denying primary dealers some of their best
customers. Commission would have been passed along to customers
who did place orders via the primary dealers, making it less
expensive to buy through them than to go directly to the Bank.
Market sources said the Bank had, in its discussions with
the dealers about the upcoming auctions, agreed that the
allotment commission was reasonable if the dealers had a
concurrent commitment to buy at the auction regardless of
market conditions.
Indeed, the Bank and the gilts dealers are believed to be
disappointed that the Treasury has not agreed to go along with
the plan. However, in its paper, the Bank suggested that any
conditions applied for the first few auctions may be abandoned
or modified in future sales of gilts if they prove inefficient
or unwieldy.
Among other items in the document, the Bank said its first
auction will consist of up to 1.25 billion stg in conventional
short-dated stock and have a maturity of seven years or less.
Subsequent auctions to be held in the 1987-88 financial
year would first be of up to one billion stg of long-dated
stock having a maturity of 15 years or longer and then of up to
one billion stg of medium dated stock of seven to 15 years in
maturity.
The remainder of the gilt-edged funding program would be
met by traditional tap offerings of stock via the government
broker.
To protect the buyers of the newly auctioned stock, the
Bank has agreed to establish a so-called fallow period, a
28-day period during which it agrees not to issue any new stock
of the same type, and it will not necessarily resume selling
the stock once the fallow period expires.
In the event that prices offered for the stock to be sold
are substantially out of line with market conditions, the Bank
will agree to take the stock onto its own books.
The bank would then be free to sell the stock during the
fallow period but not at a price below the minimum tender
price.
The Bank also said that at least initially, auctions will
be alloted on a bid price basis, a system under which bidders
are allotted stock at the price which they bid.
However, the Bank said it reserves the right to limit any
money market maker from buying more than 25 pct of a single
auction. The Bank is widely believed to be concerned about
preventing a single market maker from cornering a stock to
drive the price up.
The Bank has repeatedly signalled its intention to prevent
dealers from cornering the market in a stock, issuing
additional stock, on occasion, to end a market shortage.
The Bank has also agreed to publish information about the
auction results as soon as possible after the sale is complete,
which is widely expected to be on the same day.
Information to be released will include the amount of stock
allotted in terms of both competitive and non-competitive bids,
and the highest, lowest and average price of the successful
bids.
REUTER
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GULF OF MEXICO RIG COUNT DOWN SLIGHTLY THIS WEEK | Utilization of offshore mobile rigs in
the Gulf of Mexico fell about 0.5 percentage point to 35.0 pct
this week, with a total of 82 working and 152 idled, Offshore
Data Services said.
In the European-Mediterranean area, utilization remained
about unchanged at 46.1 pct, after rising four percentage
points in the previous two weeks. Out of a total of 154 rigs,
71 were working and 83 idled, it said.
Worldwide utilization of offshore rigs was steady at 53.8
pct, reflecting 391 rigs working and 336 idled.
Reuter
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FED ADDS RESERVES VIA CUSTOMER REPURCHASES | The Federal Reserve entered the U.S.
Government securities market to arrange 1.5 billion dlrs of
customer repurchase agreements, a Fed spokesman said.
Dealers said Federal funds were trading at 6-1/2 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.
Most had expected the Fed to supply reserves directly via
System repurchase agreements or to add them indirectly through
two billion dlrs or more of customer repurchase agreements.
Some believe the Fed is adding fewer reserves than are needed
to keep upward pressure on rates and so help the dollar.
Reuter
|
BURROUGHS-WELLCOME SETS RESEARCH SPENDING | (Burroughs-Wellcome Inc) said it plans
to invest 10 mln dlrs in research and development-related
activities over the next five years if changes planned to
Canada's patent act become law.
The company said it would increase its commitment to
clinical research if the patent act is changed to provide
further protection for patent rights, as planned.
Reuter
|
DESPTP OMC <DSO> 1ST QTR NET | Shr 54 cts vs 51 cts
Net 2,151,000 vs 2,439,000
Sales 90.3 mln vs 96.8 mln
Avg shrs 3,960,000 vs 4,782,000
Reuter
|
PARK COMMUNICATIONS INC <PARC.O> 1ST QTR MAR 31 | Shr 15 cts vs 14 cts
Net 2,028,000 vs 1,879,000
Revs 32.1 mln vs 29.5 mln
Reuter
|
SOFTWARE SERVICES <SSOA> EXTENDS WARRANTS | Software Services of America
Inc said its board has extended the expiration date of its
warrants until August 31 from April 30.
Reuter
|
FEDERAL GUARANTEE CORP <FDGC.O> 1ST QTR NET | Shr 34 cts vs 32 cts
Net 2,891,844 vs 2,666,278
Revs 13.7 mln vs 12.7 mln
Reuter
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BACHE SECURITIES SETS NAME CHANGE, EXPANSION | Bache Securities Inc, 80 pct-owned by
Prudential-Bache Securities Inc, a unit of Prudential Insurance
Co of America, said it would change its name on April 15 to
Prudential-Bache Securities Canada Ltd as the first part of a
major expansion in Canada.
The investment dealer said the expansion would involve
increased research and retail staff, three new Canadian
branches by year-end and enhanced corporate financing ability.
Bache chief executive George McGough told a news conference
that Bache might expand its 20 mln Canadian dlr capital base by
up to seven times over the next several years.
McGough said the move resulted from the proposed June 30
deregulation of Ontario's securities industry, which will lift
existing restrictions on the growth of foreign dealers such as
Bache and allow it access to its U.S. parent's 134 billion U.S.
dlrs of capital and products offered by Prudential Insurance Co
of Canada, also owned by Bache's U.S. parent.
Stressing that company growth would be internal, McGough
told reporters "that our game plan does not call for an
acquisition," saying Bache recently rejected merger overtures
from three other investment dealers in Canada.
McGough declined to identify the names of the three dealers
that approached Bache.
He said that Bache hoped to rank in the top five Canadian
investment dealers within the next few years. It now ranks
about 14th.
McGough voiced confidence that Bache's plans would be
unaffected by any delay past June 30 in the implementation of
financial deregulation resulting from an ongoing dispute
between the Canadian and Ontario governments over regulatory
jusisdiction. He said regulators had already approved the name
change and indicated they would approve Bache's expansion.
Reuter
|
ANGELL CARE MASTER LP <ACR> RAISES QUARTERLY | Shr 38 cts vs 36 cts prior
Pay July 31
Record June 23
Reuter
|
CHARTERHOUSE GETS 310 MLN DLRS IN NEW CAPITAL | <Charterhouse Group International>,
which specializes in leveraged buyouts and purchasing troubled
companies, said it has raised 310 mln dlrs in new capital to
help it compete in the acquisition market for U.S. companies.
Charterhouse said that it has formed Charterhouse Mezzanine
Partners, a limited partnership capitalizaed at 152 mln dlrs,
to provide subordinated financing in leveraged buyout
transactions.
Charterhouse also said it recently received an infusion of
100 mln dlrs of new capital from its shareholders.
In addition, the company said it has completed forming the
Recovery Group, a limited partnership established to invest in
distressed companies.
Then Recovery Group, to be co-managed by Charterhouse and
two investors, Jay Goldsmith and Harry Freund, is capitalized
at 58 mln dlrs from investors in Europe and America, the
company said.
Charterhouse said the group will acquire equity or debt
securities of distressed companies.
Reuter
|
FRANKLIN MICHIGAN INSURED SETS LOWER PAYOUT | Mthly div 6.6 cts vs 6.9 cts prior
Pay April 30
Record April 15
NOTE: Franklin michigan Insured Tax-Free Income Fund.
Reuter
|
FRANKLIN HIGH YIELD SETS HIGHER PAYOUT | Mthly div eight cts vs 7.1 cts prior
Pay April 30
Record April 15
NOTE: Franklin High Yield Tax-Free Income Fund.
Reuter
|
FRANKLIN PENNSYLVANIA TAX-FREE IN INITIAL PAYOUT | Franklin Pennsylvania
Tax-Free Income Fund said its board declared an initial monthly
dividend of six cts per share, payable April 30 to holders of
record April 15.
Reuter
|
GENERAL PARTNERS SELLS GENCORP <GY> STAKE | General Partners, a Texas
partnership that recently ended its bid to take over GenCorp
Inc, told the Securities and Exchange Commission it sold nearly
all of its remaining 8.6 pct stake in the company.
General Partners said it sold 1,930,500 shares of GenCorp
on April 10 at 118.25 dlrs a share in an open market
transaction on the New York Stock Exchange.
It said the sale leaves it with 108 GenCorp common shares.
The partnership, which includes Wagner and Brown of Midland
Texas and Irvine, Calif.-based AFG Industries Inc, last week
dropped its 100 dlr a share hostile tender offer.
Reuter
|
FRANKLIN PENNSYLVANIA U.S. SETS INITIAL PAYOUT | Franklin Pennsylvania
Investors U.S. Government Securities Fund Fund said its board
declared an initial monthly dividend of 7.8 cts per share,
payable April 30 to holders of record April 15.
Reuter
|
DUFF/PHELPS DOWNGRADES MELLON BANK CORP <MEL> | Duff and Phelps today lowered the
senior debt rating of Mellon Bank Corp. to D&P-8 (High BBB)
from D&P-6 (middle A) and lowered the preferred stock rating to
D&P-9 (middle BBB) from D&P-7 (low A).
These rating changes affect approximately 607 mln dlrs of
securities.
In addition, the certificate of deposit rating of Mellon
Bank has been lowered to Duff one minus from Duff one. The
rating affects approximately 2.7 bln dlrs on CDs.
"A sharp deterioration in asset quality," resulting in a
"significant" first-quarter loss were cited in the change.
Reuter
|
GAF <GAF> STUDYING BORG-WARNER <BOR> PLAN | GAF Corp is studying an agreement
under which Merrill Lynch Capital Partners will take
Borg-Warner Corp private in a 4.23 billion dlr transaction, a
GAF spokesman said.
The spokesman had no further comment.
Analysts said there was speculation GAF would make a new
offer for the Chicago-based plastics and automobile parts
company. Borg-Warner's stock rose 7/8 to 49-1/4, above the
Merrill Lynch 48.50 dlrs per share tender offer price.
Merrill Lynch Capital Partners, a unit of Merrill Lynch and
Co, is tendering for 89 pct of Borg-Warner and offering a
package of cash and securities for the balance of the shares.
GAF had offered 46 dlrs per share previously. It holds 19.9
pct of Borg-Warner's stock.
Reuter
|
NATIONAL WESTMINSTER BANK USA 1ST-QTR NET RISES | National Westminster Bank USA said
higher loans and core deposit volumes as well as a substantial
increase in net interest income contributed to a 16 pct rise in
first-quarter earnings to 17.7 mln dlrs from 15.3 mln reported
a year earlier.
The earnings gain came despite a 1.5 mln dlr reduction of
income as a result of placing Brazilian loans on non-accrual.
Net interest income totalled 92.5 mln dlrs compared with
91.7 mln dlrs in the same 1986 period as loans, mostly to
middle market businesses, increased by 896 mln dlrs. But some
of these gains were offset by low levels of interest rates.
Provision for loan losses rose to 13.8 mln dlrs from 13.0
mln a year earlier. At March 31, the allowance for loan losses
was 114.2 mln dlrs versus 94.8 mln at end of March 1986.
Non-accrual loans rose to 286 mln dlrs from 132 mln at the
end of the first quarter of 1986, largely because 119 mln dlrs
of loans to Brazil were put on non-accrual status.
The bank said that if these loans remain on non-accrual for
the remainder of the year net income for 1987 would be reduced
by about 4.9 mln dlrs.
National Westminster Bank USA is a wholly-owned subsidiary
of National Westminster Bank PLC.
Reuter
|
LASER PHOTONICS INC <LAZR.O> 4TH QTR DEC 31 | Shr loss 26 cts vs loss one cts
Net loss 699,000 vs loss 20,617
Revs 883,000 vs 1.1 mln
Year
Shr loss 62 cts vs loss eight cts
Net loss 1.7 mln vs loss 185,003
Revs 3.6 mln vs 4.5 mln
Reuter
|
Subsets and Splits