The U.S. Agriculture Department reported the farmer-owned reserve national five-day average price through February 25 as follows (Dlrs/Bu-Sorghum Cwt) - Natl Loan Release Call Avge Rate-X Level Price Price Wheat 2.55 2.40 IV 4.65 -- V 4.65 -- VI 4.45 -- Corn 1.35 1.92 IV 3.15 3.15 V 3.25 -- X - 1986 Rates. Natl Loan Release Call Avge Rate-X Level Price Price Oats 1.24 0.99 V 1.65 -- Barley n.a. 1.56 IV 2.55 2.55 V 2.65 -- Sorghum 2.34 3.25-Y IV 5.36 5.36 V 5.54 -- Reserves I, II and III have matured. Level IV reflects grain entered after Oct 6, 1981 for feedgrain and after July 23, 1981 for wheat. Level V wheat/barley after 5/14/82, corn/sorghum after 7/1/82. Level VI covers wheat entered after January 19, 1984. X-1986 rates. Y-dlrs per CWT (100 lbs). n.a.-not available.
Argentine grain board figures show crop registrations of grains, oilseeds and their products to February 11, in thousands of tonnes, showing those for futurE shipments month, 1986/87 total and 1985/86 total to February 12, 1986, in brackets: Bread wheat prev 1,655.8, Feb 872.0, March 164.6, total 2,692.4 (4,161.0). Maize Mar 48.0, total 48.0 (nil). Sorghum nil (nil) Oilseed export registrations were: Sunflowerseed total 15.0 (7.9) Soybean May 20.0, total 20.0 (nil) The board also detailed export registrations for subproducts, as follows, SUBPRODUCTS Wheat prev 39.9, Feb 48.7, March 13.2, Apr 10.0, total 111.8 (82.7) . Linseed prev 34.8, Feb 32.9, Mar 6.8, Apr 6.3, total 80.8 (87.4). Soybean prev 100.9, Feb 45.1, MAr nil, Apr nil, May 20.0, total 166.1 (218.5). Sunflowerseed prev 48.6, Feb 61.5, Mar 25.1, Apr 14.5, total 149.8 (145.3). Vegetable oil registrations were : Sunoil prev 37.4, Feb 107.3, Mar 24.5, Apr 3.2, May nil, Jun 10.0, total 182.4 (117.6). Linoil prev 15.9, Feb 23.6, Mar 20.4, Apr 2.0, total 61.8, (76.1). Soybean oil prev 3.7, Feb 21.1, Mar nil, Apr 2.0, May 9.0, Jun 13.0, Jul 7.0, total 55.8 (33.7).
The Commodity Credit Corporation, CCC, has accepted an export bonus offer to cover the sale of 37,000 long tons of wheat flour to North Yemen, the U.S. Agriculture Department said. The wheat four is for shipment March-May and the bonus awarded was 119.05 dlrs per tonnes and will be paid in the form of commodities from the CCC inventory. The bonus was awarded to the Pillsbury Company. The wheat flour purchases complete the Export Enhancement Program initiative announced in April, 1986, it said.
inflation plan, initially hailed at home and abroad as the saviour of the economy, is limping towards its first anniversary amid soaring prices, widespread shortages and a foreign payments crisis. Announced last February 28 the plan froze prices, fixed the value of the new Cruzado currency and ended widespread indexation of the economy in a bid to halt the country's 250 pct inflation rate. But within a year the plan has all but collapsed. "The situation now is worse than it was. Although there was inflation, at least the economy worked," a leading bank economist said. The crumbling of the plan has been accompanied by a dramatic reversal in the foreign trade account. In 1984 and 1985 Brazil's annual trade surpluses had been sufficient to cover the 12 billion dlrs needed to service its 109 billion dlr foreign debt. For the first nine months of 1986 all seemed to be on target for a repeat, with monthly surpluses averaging one billion dlrs. But as exports were diverted and imports increased to avoid further domestic shortages the trade surplus plunged to 211 mln dlrs in October and since then has averaged under 150 mln.
New Zealand's official foreign reserves fell to 7.15 billion N.Z. Dlrs in January from 7.20 billion dlrs in December and compared with 3.03 billion a year ago period, the Reserve Bank said in its weekly statistical bulletin.
Qtly div three cts vs three cts prior Pay March 13 Record February 27
The Agricultural Stabilization and Conservation Service (ASCS) has established these unit values for commodities offered from government stocks through redemption of Commodity Credit Corporation commodity certificates, effective through the next business day. Price per bushel is in U.S. dollars. Sorghum is priced per CWT, corn yellow grade only. WHEAT HRW HRS SRW SWW DURUM Chicago -- 3.04 2.98 -- -- Ill. Track -- -- 3.16 -- -- Toledo -- 3.04 2.98 2.90 -- Memphis -- -- 3.05 -- -- Peoria -- -- 3.11 -- -- Denver 2.62 2.63 -- -- -- Evansville -- -- 2.99 -- -- Cincinnati -- -- 2.96 -- -- Minneapolis 2.65 2.71 -- -- 3.70 Baltimore/ Norf./Phil. -- -- 3.06 2.98 -- Kansas City 2.87 -- 3.17 -- -- St. Louis 3.03 -- 3.03 -- -- Amarillo/ Lubbock 2.64 -- -- -- -- HRW HRS SRW SWW DURUM Lou. Gulf -- -- 3.16 -- -- Portland/ Seattle 3.07 3.08 -- 3.10 3.70 Stockton 2.78 -- -- -- -- L.A. 3.23 -- -- -- 4.05 Duluth 2.65 2.71 -- -- 3.70 Tex. Gulf 3.10 -- 3.16 -- -- CORN BRLY OATS RYE SOYB SORG Chicago 1.47 -- -- -- 4.81 2.49 Ill. Track 1.49 2.04 -- -- 4.85 2.52 Toledo 1.41 2.04 1.50 -- 4.78 2.39 Memphis 1.59 1.95 1.71 -- 4.90 2.86 Peoria 1.51 --- -- -- 4.80 2.60 Denver 1.56 1.56 -- -- -- 2.54 Evnsvlle 1.54 2.04 1.50 2.17 4.90 2.61 Cinci 1.52 2.04 1.50 2.17 4.85 2.58 Mpls 1.34 1.75 1.50 1.85 4.68 -- Balt/Nor/ Phil 1.70 1.80 -- -- 4.98 3.12 KC 1.49 1.56 1.64 -- 4.76 2.58 St Lo 1.54 -- 1.66 -- 4.90 2.91 Amarlo/ Lubbck 1.84 1.40 -- -- 4.75 2.92 Lou Gulf 1.73 -- -- -- 5.05 3.12 Port/ Seattle 1.87 2.10 1.68 -- -- -- Stockton 2.18 2.23 2.10 -- -- 4.00 LA 2.54 2.50 -- -- -- 4.38 Duluth 1.34 1.75 1.50 1.85 4.68 -- Tex Gulf 1.73 1.48 1.73 -- 5.05 3.12
U.S. M-1 money supply rose 2.1 billion dlrs to a seasonally adjusted 736.7 billion dlrs in the February 16 week, the Federal Reserve said. The previous week's M-1 level was revised to 734.6 billion dlrs from 734.2 billion dlrs, while the four-week moving average of M-1 rose to 735.0 billion dlrs from 733.5 billion. Economists polled by Reuters said that M-1 should be anywhere from down four billion dlrs to up 2.3 billion dlrs. The average forecast called for a 300 mln dlr M-1 rise.
Industrial Equity (Pacific) Ltd, a Hong Kong investment firm, said it raised its stake in Wrather Corp to 816,000 shares, or 11.3 pct of the total outstanding common stock, from 453,300 shares, or 6.3 pct. In a filing with the Securities and Exchange Commission, Industrial Equity, which is principally owned by Brierley Investments Ltd, a publicly held New Zealand company, said it bought 362,700 Wrather common shares between Feb 13 and 24 for 6.6 mln dlrs. When it first disclosed its stake in Wrather earlier this month, it said it bought the stock for investment purposes.
Shr loss six cts vs not available Net loss 562,231 vs profit 10,253 Revs 8,871,874 vs 9,549,308 Year Shr loss 60 cts vs loss nine cts Net loss 5,058,145 vs loss 766,185 Revs 34.3 mln vs 35.5 mln
A senior official of Drexel Burnham Lambert Inc and his father told the Securities and Exchange Commission they have acquired 258,591 shares of Epsilon Data Management Inc, or 9.4 pct of the total outstanding. Kenneth Thomas, senior vice president-investments at Drexel's Los Angeles office, and his father, retired university professor C.A. Thomas, said they bought the stake for 2.1 mln dlrs primarily for investment purposes. They said they may buy more stock or sell some or all of their stake, depending on market conditions, but have no plans to seek control of the company.
Torchmark Corp is raising 200 mln dlrs through an offering of sinking fund debentures due 2017 yielding 8.65 pct, said lead manager First Boston Corp. The debentures have an 8-5/8 pct coupon and were priced at 99.73 to yield 100 basis points over the off-the-run 9-1/4 pct Treasury bonds of 2016. Non-refundable for 10 years, the issue is rated A-2 by Moody's and AA by Standard and Poor's. A sinking fund starts in 1998 to retire 76 pct of the debentures by maturity, giving them an estimated maximum life of 22.4 years. Merrill Lynch co-managed the deal.
Suffield Financial Corp said the
Federal Reserve Board approved its application to acquire
Coastal Bancorp
Qtly div four cts vs four cts Pay April 3 Record March 23
Qtly div 51 cts vs 51 cts Pay April 9 Record March 25 (Santa Anita Realty Enterprises Inc)
The U.S. Agriculture Department is not actively considering offering subsidized wheat to the Soviet Union under the export enhancement program (EEP), senior USDA officials said. However, grain trade analysts said the proposal has not been ruled out and that an offer might be made, though not in the very near future. "The grain companies are trying to get this fired up again," an aide to Agriculture Secretary Richard Lyng said. "But there just isn't much talk about it, informally or formally." Most analysts interviewed by Reuters were more confident than USDA officials that bonus wheat would be offered to the Soviets, even though U.S. officials did not make such an offer when they held grain talks with Soviet counterparts earlier this week. But administration and private sources agreed that if the Reagan administration did decide to offer subsidized wheat to Moscow, it could take several months. "I just don't see any proposal like that sailing through any interagency process," the aide to Lyng said. "An export enhancement offer is not consummated overnight," said one former USDA official, who noted that the administration took three months to decide in favor of selling China wheat under the subsidy program. An official representing a large grain trade company said deliberations within USDA might be nudged along by members of Congress, a number of whom urged USDA this week to make a wheat subsidy offer to the Soviets. But Lyng's aide said that during a day-long visit to Capitol Hill yesterday, House members did not press the secretary on the subsidy question a single time. The administration's interagency trade policy review group, comprised of subcabinet-level officials, has not been asked to clear a request to offer Moscow wheat under the EEP, officials at the U.S. Trade Representative's Office said. In their talks this week, the two sides discussed the administration's previous EEP offer but did not talk about any new initiative. One USDA official who took part in the consultations this week described them as an exchange of "calm, basic, factual economics." Another USDA official said there was "not even an informal suggestion or hint" that the Soviets would live up to their pledge to buy four mln tonnes of wheat this year if they were granted more favorable terms. USDA and private sources agreed that consideration of an EEP initiative by interagency review groups likely would be delayed because of disarray within the White House stemming from the Iran arms affair.
Shr 23 cts vs 18 cts Net 509,144 vs 277,834 Revs 2,258,341 vs 1,328,634 Avg shrs 2,177,553 vs 1,564,605 Nine mths Shr 55 cts vs 42 cts Net 1,150,633 vs 649,914 Revs 6,169,168 vs 3,178,115
Latest Federal Reserve data suggest that the central bank voted to maintain the existing degree of pressure on banking reserves at its regular policy-making meeting two weeks ago, money market economists said. "The numbers were a little disappointing, but I think we can take Mr Volcker at his word when he said that nothing had changed," said Bob Bannon of Security Pacific National Bank. Fed Chairman Paul Volcker told a Congressional committee last Thursday that the Fed's policy "has been unchanged up to today." Although Volcker's statement last Thursday allayed most fears that the Fed had marginally tightened its grip on reserves to help an ailing dollar, many economists still wanted confirmation of a steady policy in today's data, which covered the two-week bank statement period ended yesterday. This need for additional reassurance was made all the more acute by the Fed's decision yesterday to drain reserves from the banking system by arranging overnight matched sale-purchase agreements for the first time since April of last year, economists added. Today's data showed that the draining action was for a fairly large 3.9 billion dlrs, economists said. "The one thing that caught my eye were the relatively sizeable matched sales on Wednesday," said Dana Johnson of First National Bank of Chicago. "But there was a clearly justified need for them. There was nothing ominous." "The Fed couldn't have waited until the start of the new statement period today. If it had, it would have missed its (reserve) projections," added Security Pacific's Bannon. A Fed spokesman told reporters that there were no large single-day net miss in reserve projections in the latest week. Economists similarly shrugged off slightly higher-than- expected adjusted bank borrowings from the Fed's discount window, which averaged 310 mln dlrs a day in the latest week, compared with many economists' forecasts of about 200 mln. For the two-week bank statement period as a whole, the daily borrowing average more than doubled to 381 mln dlrs from 160 in the prior period. "There were wire problems at two large banks on Tuesday and Wednesday, so I am not too bothered about the borrowings," said Scott Winningham of J.S. Winningham and Co. The Wednesday average rose to 946 mln dlrs from 148 mln a week earlier. Lending further support to the stable policy view was a relatively steady federal funds rate of about six pct in the latest week and persistently high levels of excess reserves in the banking system, economists said. "For the time being, the Fed is following a neutral path, with fed funds at about six to 6-1/8 pct," said Darwin Beck of First Boston Corp. "I expect it to continue in that vein." "Excess reserves fell but they are still over a billion dlrs," added First Chicago's Johnson. Banks' excess reserves averaged 1.03 billion dlrs a day in the latest statement period, down from 1.50 billion in the previous one. After the Fed declined to assign a 1987 target growth range to the wayward M-1 money supply measure last week, little attention was paid to a steeper-than-anticipated 2.1 billion dlr jump in the week ended February 16. Looking ahead, economists said the Fed will have to tread a fine line between the dollar's progress in the international currency markets and the development of the domestic economy. "The market has perhaps exaggerated the dollar's effect on Fed policy," said First Chicago's Johnson. "Of course, it will take the dollar into account in future policy decisions but if the economy is weak, it won't pull back from easing."
A majority of Americans disapprove of the way Ronald Reagan has handled the presidency and one-third believe he should resign, a new poll said. The poll conducted by Newsweek magazine said 53 pct of the respondents gave Reagan a negative performance rating, nearly double his disapproval rating before the Iran/Contra scandal. The magazine said, however, that Reagan remained personally popular. By better than a three-to-one ratio, a majority of those polled said they liked Reagan on a personal level. And Newsweek said 52 per cent of those questioned believed the administration"s accomplishments outweighed its failures.
Indonesia"s agriculture sector will grow by just 1.0 pct in calendar 1987, against an estimated 2.4 pct in 1986 as the production of some commodities stagnates or declines, the U.S. Embassy said in a report. Production of Indonesia"s staple food, rice, is forecast to fall to around 26.3 mln tonnes from an embassy estimate of 26.58 mln tonnes in 1986, according to the annual report on Indonesia"s agricultural performance. The government officially estimates 1986 rice production at 26.7 mln tonnes, with a forecast 27.3 mln tonnes output in 1987. The report says wheat imports are likely to fall to 1.5 mln tonnes in calendar 1987 from 1.69 mln tonnes in 1986 because of a drawdown on stocks. "Growth prospects for agriculture in 1987 do not look promising as rice production is forecast to decline and the production of sugarcane, rubber and copra show little or no gain," the report says. "The modest overall increase which is expected will be due to significant gains in production of corn soybeans, palm oil and palm kernels." Constraints to significant overall increases in agricultural output include a shortage of disease resistant seeds, limited fertile land, insect pests and a reluctance by farmers to shift from rice production to other crops, the report underlines. The fall in rice production is caused by an outbreak of pests known as "wereng" or brown plant hoppers in 1986 which largely offset gains in yields. The outbreak has forced the government to ban the use of 57 insecticides on rice because it was believed the wereng are now resistant to these varieties, and to use lower-yielding, more resistant rice types. The government is depending on increased production of export commodities such as coffee, tea, rubber, plywood and palm oil to offset revenue losses brought on by falling crude oil prices. Palm oil production is expected to increase by over 7.0 pct in 1987 to 1.45 mln tonnes from 1.35 mln, with exports rising to an estimated 720,000 tonnes from 695,000 tonnes in 1986, the report says. But while production of soybeans in 1987/88 (Oct-Sept) will rise to 1.075 mln tonnes from 980,000 in 1986/87, imports will also rise to supply a new soybean crushing plant. The report says that imports of wheat, soybeans, soybean meal and cotton are not likely to decline as a result of last September"s 31 pct devaluation of the rupiah because of a rise in domestic demand. The report said that Indonesia"s overall economic performance in calendar 1986 was about zero or even a slight negative growth rate, the lowest rate of growth since the mid-1960s. It compares with 1.9 pct growth in 1985 and 6.7 pct in 1984. The dramatic fall in oil prices last year was responsible for the slump.
China's wheat crop this year is seriously threatened by plant pests and diseases, the New China News Agency said. More than 5 mln hectares of wheat-producing land in North China could be affected because relatively warm and dry weather had allowed bacteria and insect eggs to survive the winter, the agency added. China"s Ministry of Agriculture, Animal Husbandry and Fisheries has called for measures including the timely supply of pesticides to farmers to combat the threat, it said.
Bangladesh police mounted a cross-country hunt for defaulters on bank loans, arresting four industrialists and issuing arrest warrants against 50 others for failure to repay overdue obligations. No names were given. Metropolitan police told reporters the four arrested, put under six month pre-trial detention, owed nearly 50.7 mln taka -- the equivalent of about 1.7 mln dlrs -- to Bangladesh Shilpa (Industrial) Bank. President Hossain Mohammad Ershad has said non-payers are crippling the industrial sector. But the Chamber of Commerce and industry said the crackdown would scare away entrepreneurs.
Canadian and Egyptian wheat negotiators failed to conclude an agreement on Canadian wheat exports to Egypt during talks last week, but the Canadian team will return to Cairo for further negotiations, Canadian embassy officials said. An embassy official declined to identify which issues remained to be resolved and when the talks would resume. In a five-year protocol signed in 1985, Cairo agreed to purchase 500,000 tonnes of Canadian wheat a year.
Indonesia's wheat imports are expected to fall to 1.5 mln tonnes in calendar 1987 from 1.69 mln in 1986, the U.S. Embassy's annual agriculture report said. It said the drop was expected, because there will be a drawdown on stocks built up near the end of 1986. It said wheat stocks at the end of 1986 were 390,000 tonnes, up from 223,000 at end-1985. It forecast end-1987 stocks at around 290,000 tonnes. The main suppliers in 1986 were Australia (44 pct), the U.S. (29 pct), Canada (12 pct), Argentina (8 pct) and Saudi Arabia (5 pct).
Poland's talks in Washington with the World Bank and the International Monetary Fund (IMF) on the country's 33.5 billion dlr foreign debt were concrete, open and frank, a senior Polish banker was quoted as saying. Wladyslaw Baka, head of Poland's National Bank, told the official news agency PAP yesterday the talks were a step towards possible fresh credits or easier terms. "Much attention was given to the Polish delegation and the talks at both institutions involved displayed a lot of understanding for Poland's difficult economic position," PAP quoted Baka as saying. Baka said he stressed Poland would meet its financial obligations to the U.S., "but not in a short time, and not without major changes in the Polish economy as well as a cooperative stand on the part of its foreign economic partners." Since Poland rejoined the IMF last June, after a 36-year absence, IMF and World Bank teams have visited Warsaw on fact-finding missions on at least three occasions. A major report is expected to be issued in Washington soon. Poland has said it will not be able to meet interest repayments and debt principle falling due this year.
Japan's customs-cleared trade surplus in the first 20 days of February jumped to 3.58 billion dlrs from 1.94 billion a year earlier, the Finance Ministry said. The February interim surplus was sharply up from a 965.04 mln dlr surplus in the same January period. FOB exports rose 14.6 pct from a year earlier in the first 20 days of February to 10.91 billion, while CIF imports fell 3.2 pct to 7.33 billion. The average dollar/yen rates were 152.32 for exports and 152.31 for imports against 196.61 for exports and 196.27 for imports a year earlier.
After an onslaught of new paper, fewer mark eurobonds issues are expected this week, bankers said. Most managers said they were planning a low issue volume for the Bundesbank's two-week bond calendar beginning today. "We want to have a week's pause," one manager said. Last week borrowings totalled 1.775 billion marks, including a 300 mln mark private placement for Deutsche Bank. Issues for all of February rose to nearly five billion marks, from 3.6 billion in January. The heavy volume also meant most borrowers except the very best addresses were having to accept higher coupons. "I think the D-mark market is still good, but only if you can give a good coupon," another manager said. But even some government borrowers were not getting the best reception for bonds which would have been taken up more readily under other conditions. Of the three mark eurobonds launched on Tuesday alone, bonds for Den Danske Bank and Iceland were trading outside fees on Friday, although prices had recovered from initial lows. Den Danske's 5-3/4 1992 bond was quoted at midday on Friday at 97.35/65 compared with its par price, and Iceland's 6-1/2 pct 1997 bond traded at 97.25/75 against a 100-1/4 issue price. A 300 mln mark 6-1/8 pct 1997 issue for Nippon Telegraph and Telephone was also depressed, but traded Friday within fees at 98.15, 98.50 from its par price. Some shorter maturities did better. In contrast to the 10-year NTT and Iceland issues, a five-year six pct bond for Hoogovens, traded at 98.40/75 from its 99-1/2 price, thanks mainly to its shorter maturity, dealers said. The large amount of paper brought to the market in the last two months has also led many syndicate managers to complain about the Bundesbank's present fixed calendar system, which they say is too inflexible. Currently all mark denominated eurobonds have to be registered with the Bundesbank in the week preceding the two-week issue period. A bank may decline to issue a bond on the requested day in the calendar, but then has to wait for the next calendar period to schedule the bond again. Some managers said they would prefer to abolish the system. The Bundesbank shortened the reporting period to two weeks from four weeks last July. But few expect the calendar to be completely abolished. "I don't think the Bundesbank would give that up," one banking analyst said. "I wouldn't have anything against getting rid of the system," the analyst said, adding banks were capable of regulating the volume of new issues themselves. The Bundesbank plays a passive role in setting the calendar without trying to regulate the issues, but it needs the registration to gauge the volume of mark bonds going through the euromarket, he said. For this reason, few managers here foresee the Bundesbank sacrificing its present calendar system. Bond activity in West German bond trading and syndication departments is also expected to be quieter than normal owing to the carnival holiday. Carnival will close banks in Duesseldorf all day on Monday. In Frankfurt, banks will close on Tuesday in the afternoon.
Caisse d'Aide a l'Equipement des Collectives Locales (CAECL) is issuing a 12 billion yen eurobond due March 31, 1994 paying 5-1/8 pct and priced at 102 pct, lead manager Mitsubishi Trust International Ltd said. The non-callable bond is available in denominations of one mln yen and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct. The payment date is March 31.
The combined profits of Japan's major corporations, excluding financial institutions, are forecast to fall 19.2 pct in the 1986/87 year ending March 31, compared to the 19.9 pct decline projected in late November, Wako Research Institute of Economics said. The private research body also said in a statement that 437 of the 1,084 firms listed on the first section of the Tokyo Stock Exchange foresee an 11.6 pct fall in sales in the year against an 11.4 pct fall estimated last November. Current profits are projected to fall 4.4 pct in 1987/88 on sales seen increasing by 4.2 pct, it said. Rationalisation measures taken by manufacturing industries to cope with the yen's sharp rise are beginning to brighten their business outlook, the institute said. It said lower interest rates, which are expected to reduce corporate borrowing costs, are also behind the improved performance outlook. Earnings performance in the non-manufacturing sector will be supported by firm demand in the real estate and construction businesses, it said. The forecast was based on average exchange rate estimates of 160 yen to the dollar in 1986/87 and 155 yen in 1987/88.
The Bank of Japan decided at a policy board meeting to promote further interest rate liberalisation by lowering the minimum denomination of regulation-free large deposits and by raising the interest rate ceiling on money market certificates (MMCs), a central bank official said. The new guideline will go into effect on April 6, the bank said. Under the guideline, the minimum denomination of regulation-free large deposits will be lowered to 100 mln yen from 300 mln. The interest rate ceiling of MMCs with maturities of between one year and two years will be set at 0.5 percentage point below the prevailing certificate of deposit rate, the bank said. But the ceiling on MMCs with maturities of one year or less will remain the same, or 0.75 percentage point below the CD rates. The minimum denomination of MMCs will be lowered to 10 mln yen from 30 mln. The bank also said time deposit rates will be lowered by 0.37 point, effective March 16, in line with the half-point cut in the official discount rate on February 23. New interest rates on two-year and one-year deposits at banks, for example, will be 3.64 pct and 3.39 pct per annum, respectively. Demand deposit rates, however, will remain the same.
India will hold a buying tender on Wednesday, March 4, for two to three cargoes of white sugar for March/April shipment, traders said.
The European Community Commission said it has opened an enquiry into allegations that the Soviet Union is dumping mercury on the European market at below-cost prices. The Commission said its decision follows a complaint from EC non-ferrous metals producers that the sales of Soviet mercury were harming their business and threatening jobs in the European industry. According to the complaint, Soviet mercury sales in the EC had risen from zero in recent years to 100 tonnes between August and October last year and threaten to capture 25 pct of the EC market if they continue at the same pace. The industry said the mercury was being sold at more than 40 pct below prices charged by EC producers, forcing them to cut their prices to levels that no longer covered costs. The imports had caused producers heavy financial losses, it said. The Commission said the industry would probably be unable to hold prices at current levels and that any increase would result in loss of sales and jobs. The so-called anti-dumping procedure opened by the Commission will allow all interested parties to state their cases to the authority.
Deputy oil ministers from six Gulf Arab states will meet in Bahrain today to discuss coordination of crude oil marketing, the official Emirates news agency WAM reported. WAM said the officials would be discussing implementation of last Sunday's agreement in Doha by Gulf Cooperation Council (GCC) oil ministers to help each other market their crude oil. Four of the GCC states - Saudi Arabia, the United Arab Emirates (UAE), Kuwait and Qatar - are members of the Organiaation of Petroleum Exporting Countries (OPEC) and some face stiff buyer resistance to official OPEC prices.
Dale Burdett Inc said it faces damages claims totalling about 420,000 dlrs from the former owners of Burdett Publications Inc. The company said on February 20, 1986, its predecessor Nolex Development Inc acquired Burdett Publications Inc in an exchange of 17 mln common shares for all Burdett Publications shares, but the transaction was not qualified with the California Department of Corporations. As a result, it said, the former Burdett Publications owners have a claim for damages against Dale Burdett as successor to Nolex for one yuear starting January 21, 1987, with the damages measured by the difference in values of shares exchanged plus interest from February 20, 1986.
The French Cereals Intervention Board, ONIC, left its estimate of French 1986/87 (July/June) soft wheat deliveries unchanged from its last forecast at 21.98 mln tonnes. This compared with deliveries of 24.38 mln tonnes in 1985/86 (August/July). Estimated 1986/87 maize deliveries were also left unchanged from ONIC's previous forecast at the beginning of February at 9.91 mln tonnes against 10.77 mln the previous season. Barley deliveries were also unchanged at 6.62 mln tonnes against 7.7 mln in 1985/86.
Porex Technologies Corp said its board declared an initial annual dividend of 10 cts per share, its first payout, payable March 26 to holders of record March 12.
Brazil is not happy with the existing structure of the 14-bank advisory committee which coordinates its commercial bank debt, Finance Minister Dilson Funaro said. U.S. Banks have 50 pct representation on the committee while holding only 35 pct of Brazil's debt to banks, he said, adding "This is not fair with the European and Japanese banks." The committee had played a useful role in 1982 and 1983, however. Noting the often different reactions of U.S., Japanese and European banks, Funaro told journalists that Brazil might adopt an approach involving separate discussions with the regions. Since debtor nations' problems were normally treated on a case-by-case basis, "Perhaps the same principle should apply to creditors," central bank president Francisco Gros said. Brazil on February 20 suspended indefinitely interest payments on 68 billion dlrs owed to commercial banks, followed last week by a freeze on bank and trade credit lines deposited by foreign banks and institutions, worth some 15 billion dlrs. Funaro and Gros spent two days at the end of last week in Washington talking to government officials and international agencies and will this week visit Britain, France, West Germany, Switzerland and Italy for discussions with governments. Funaro and Gros are today meeting British Chancellor of the Exchequer Nigel Lawson, Foreign Secretary Geoffrey Howe and Governor of the Bank of England Robin Leigh-Pemberton. Bankers have estimated that Brazil owes U.K. Banks around 8.5 billion dlrs in long and medium term loans, giving the U.K. The third largest exposure after the U.S. And Japan. The crisis began when Brazil's trade surplus, its chief means of servicing its foreign debt, started to decline sharply and the problem was compounded by a renewed surge in the country'sate of inflation. Reserves were reported to have dropped below four billion dlrs. Funaro envisaged that any eventual solution to problems with Brazil's 108 billion dlr foreign debt would involve only partial servicing of the debt. "What we propose is to arrive at a mechanism of refinance for part of the service, because we cannot service all that," he said. "I really think we have to change the old rules." Asked why Brazil was first approaching governments, rather than the commercial banks themselves in its search for a solution to the crisis, Funaro said "We must first talk to the governments and then we can talk to the banks, because the banks have some limits." "It is a political discussion from our point of view," he said. Funaro said he hoped next week to travel to talk to Japanese and Canadian government officials. He would then talk to the commercial banks "If I've got some solution from the governments. I can't take the burden only to the banks." He was not sure how long it would take to reach a solution. In discussions with governments Brazil would review the mechanisms whereby finance was made available to nations in need. Finance from official lending agencies had been virtually closed since 1982. "You must open these mechanisms," he said. He said that while the U.S. Officials had been disturbed by Brazil's suspension of interest payments, they understood Brazil had no other choice, as it had to protect its reserves. Also the financing mechanisms had to be discussed "because we can't stay as we were the last few years." "I'm trying to put the problem on the table.... All of us would like to have a kind of equilibrium." he said. Although Brazil has rejected a substantive role for the International Monetary Fund (IMF) in managing its economy, Funaro paid a call in Washington to IMF Managing Director Michel Camdessus and to World Bank President Barber Conable. Funaro noted that inflation in February had started to decline again and he expected Brazil to achieve a minimum eight billion dlr trade surplus in 1987. Banking sources noted that Brazil's monthly surplus had declined to some 150 mln dlrs in the final three months of last year, against a monthly one billion in the first nine months. Brazil had the third largest trade surplus in the world, Funaro said, although its share of international trade was only one pct. "The solution is linked with growth, not recession," he said, noting an IMF program would involve promoting exports and inducing an internal recession in order to service debt. Banking sources said Brazil's debts to foreign governments, as opposed to commercial banks, now benefit from a sounder structure following last month's rescheduling by the Paris Club of creditor nations of 4.12 billion dlrs of official debt.
The volume of contracts traded on the New Zealand Futures Exchange (NZFE) reached a record 25,559 contracts in February, the International Commodities Clearing House (ICCH) said. The previous high was 22,583 contracts in December 1986. The ICCH said the value of the contracts traded in February was 2.90 billion N.Z. Dlrs. The seven contracts currently traded on the NZFE are: five-year government bonds, the share price index, 90-day bank bills, 90-day prime commercial paper, the U.S. Dollar, crossbred wool, and wheat.
The Japan Fund Inc said it has received
an unsolicited offer from
Stone Container Corp said it is splitting its common stock 2-for-1 and increasing its dividend 33-1/3 pct. The dividend of 20 cts a share, an increase of five cts over the prior 15 cts a share on pre-split shares, is payable June 12 to holders of record May 22. The stock split also is payable June 12 to holders of record May 22.
The coupon on the 70 mln dlr equity warrant eurobond for Best Denki Co Ltd has been set at three pct compared with the indicated 3-1/8 pct, lead manager Nikko Securities Co (Europe) Ltd said. The exercise price was set 1,640 yen per share, representing a premium of 2-1/2 pct over today's closing price of 1,600 yen. The foreign exchange rate was set at 154.40 yen to the U.S. Dollar. The five-year deal is priced at par.
French operators last Friday requested licences to export 10,500 tonnes of free market maize, 11,950 tonnes of free market barley and 13,000 of soft wheat flour to non-EC countries, at prefixed daily (droit commun) rebates, French trade sources said. The latest requests for the maize were for export to Switzerland, Austria and Lichtenstein at a maximum daily rebate prefixed last Friday at 141 Ecus a tonne against a previous 20 Ecu daily rebate. The special daily rebate for maize was set in the context of a Commission commitment to grant this season rebates for the export of 500,000 tonnes of French maize to non-EC countries, in compensation for concessions to the U.S. in the recent dispute over grain sales to Spain. If the latest French requests are accepted as expected, this will bring the total of French maize exported in this context to 25,500 tonnes. The Commission last Thursday granted weekly rebates for the sale of 15,000 tonnes of free market maize to non-EC countries. Requests for barley were for export to Switzerland, Austria and Lichtenstein, Ceuta and Melilla at an unchanged pre-fixed restitution of 125 Ecus a tonne, while requests for soft wheat flour were for export to various non-EC countries at an unchanged 178 Ecus a tonne.
Qtly div 10 cts vs 8-1/3 cts prior Pay April 21 Record March 20 NOTE: Interchange Financial Services Corp.
Mercury Entertainment Corp said it expects improved results in 1987. The company today reported a loss for the year ended November 30 of 413,021 dlrs on revenues of 600,971 dlrs, compared with a loss of 163,932 dlrs on revenues of 665,800 dlrs a year before.
Versatile Corp's shipbuilding subsidiary has a letter of intent to build a 320 mln dlr polar icebreaker for the Canadian coast guard, Transport Minister John Crosbie said. In a Vancouver address, Crosbie said Versatile Pacific Shipyards Inc was the low bidder to build the Arctic Class 8 icebreaker, but the company must meet certain financial and engineering conditions before the contract is awarded. The government also announced it will provide up to 13 mln dlrs in loan insurance to help Versatile prepare for the construction of the vessel. said before the contract can be awarded Versatile "will be required to offer assurances that the shipyard is technically and financially capable of performing the work." Crosibie said Versatile's bid was 100 mln dlrs lower than competing bidders and will generate 1,000 person years of direct employment. Work on the vessel, which Crosbie said would be the most powerful icebreaker in the world, would begin next year and completed in 1992. The government announced plans to build the icebreaker last year following the controversial passage of the U.S. Coast Guard's vessel, the Polar Sea, through the disputed Northwest Passage. The U.S. government did not seek permission for the journey, claiming the area was an international water way. The government said the icebreaker was needed to back up the country's claim of sovereignty in the Arctic.
Qtr ends Dec 31 Shr profit three cts vs loss three cts Net profit 129,000 vs loss 85,000 Revs 4,001,000 vs 4,347,000 Avg shrs 3,994,347 vs 3,769,347 Nine mths Shr loss 75 cts vs profit 39 cts Net loss 2,900,000 vs profit 1,753,000 Revs 7,472,000 vs 15.3 mln Avg shrs 3,845,438 vs 4,470,275 NOTE: net 1986 includes tax gain carryforward from discontinued operations of Master's Merchandise Group in year prior.
Cuba has told international sugar operators who have bought its sugar for shipment in March that these contracts will take second place to Cuba's direct shipments to its export markets, dealers here said. Some traders who have received telexes from Cuba said the language of the message was not totally clear and some believed shipments would be honoured if the traders declare the Soviet Union as the destination of their contracts. The telexes have fueled rising world prices in the last week and reflect a poor Cuban crop, worry over Brazil's export availability, and increasing Soviet demand, analysts said. Traders said signs of Cuba's shortage of immediately available raw sugar to supply its traditional martkets was probably the factor behind Syria calling a snap buying tender last month. Normally Syria calls white sugar buying tenders for forward delivery, and last month's spot requirement resulted in the sale of several cargoes. Cuba in its telex told operators they would not receive March shipments as Cuba has to meet its contracts to export markets, traders said.
Currency fluctuations may reassert their influence on the bullion market in the near future, bullion bankers Samuel Montagu and Co Ltd said in a market report. But the firm said silver may lag behind gold in any reactions to movements on foreign exchanges. "OPEC's failure to address the recent decline in oil prices remains a worrying factor however, and on balance it appears that the market should be approached cautiously," Montagu said. The bank said the US economy has shown no noticeable long-term improvement and that both Latin American debt and the Iranian arms affair could undermine confidence in the dollar.
Shr profit two cts vs loss 12 cts Net profit 156,726 vs loss 776,000 Revs 1,157,883 vs 890,138
Rospatch Corp said it will have a news release later in response to today's acquisition bid by Diagnostic Retrieval Systems Inc for 22 dlrs a share. Rospatch earlier requested its stock be halted in over the counter trading, last trade 24-1/8. Diagnostic said its bid was for a total 53 mln dlrs through a cash tender offer for all, but not less than 51 pct of Rosptach outstanding common. For its fourth-quarter ended December 31, 1986, Rospatch reported net loss 2,649,000 or 1.10 dlrs a share compared a loss of 627,500 or 35 cts profit for the 1985 period. In December the Brookehill Group in New York said it had 9.7 pct stake. J.A. Parini, Rospatch chief executive, responded on January eight by saying the investment was a vote in confidence in the company.
North American Group Ltd's North American Acquisition Corp said it has a definitive agreement to buy 100 pct of Pioneer Business Group Inc of Atlanta. Terms of the acquisition were not disclosed. Closing of the acquisition is scheduled for April. North American Acquisition said the agreement is subject to due diligence and a satisfactory review of Pioneer's operation. Pioneer makes business forms.
A bidding war for Viacom International
Inc, one of the largest U.S. entertainment companies, pitted a
management group and other investors against National
Amusements Inc, a closely held theater operator.
Both sides raised their bids over the weekend. A source
close to the management side insisted that timing was on his
side. He said if outside directors approve the management
proposal, a merger plan could be put to a vote of shareholders
with proxy material going out late this week. "It would take 20
days from the day we mail," said the source.
The source predicted National Amusements, controlled by
investor Sumner Redstone, would need "half a year" to complete
a tender offer because of the regulatory approvals that must
accompany any change in control of Viacom's broadcast licenses
and cable television franchises.
Redstone was not available for comment.
Some of Wall Street's arbitrage players said it was a rare
situation that could only be enjoyed - a true bidding war. One
said Redstone could begin a tender offer whenever he wanted and
if enough people were convinced his proposal was superior to
the Viacom management plan, he would have a chance to win.
The independent directors of Viacom were called into a
meeting today. Word on a decision was expected early tomorrow.
Viacom shares climbed 2-1/2 to 50-3/8 by midafternoon. One
major Wall Street firm issued a sell recommendation. "We think
we're at the end now, in terms of bidding," said the firm's
arbitrageur, who spoke on condition he not be identified.
Both Redstone's proposal and the management proposal would
create a restructured company heavily leveraged with debt. The
management plan would result in a balance sheet with about 2.5
billion dlrs in debt and nearly 500 mln dlrs in preferred
stock, convertible into 45 pct of the common stock.
Redstone's newest proposal offers holders 42 dlrs in cash,
a fraction of a share of exchangeable preferred stock with a
value of 7.50 dlrs, and one-fifth of a share of common stock
stock of Arsenal Holdings, representing 20 pct of the equity
interest in the restructured Viacom. One arbitrageur calculated
the equity in the Redstone plan was worth 2.50 dlrs making the
total package worth 52 dlrs per share.
Management offered 38.50 dlrs in cash, exchangeable
preferred stock worth 8.50 dlrs and a fractional share of
convertible preferred. The arbitrageur said the equity portion
was worth about 4.00 dlrs for a total of 51 dlrs.
Redstone's newest plan raised the amount of interest he
would pay on the cash portion of his offer for every day beyond
April 30 that a merger with Arsenal is not consummated. The
plan calls for intest to be paid at an annual rate of nine pct
during May and 12 pct thereafter. Previously Redstone offered
eight pct interest.
Other arbitrageurs said both Redstone and the management
group, led by president and chief executive Terrence Elkes,
were offering high prices. "Redstone really wants to own the
company," one said. Another said management seemed to have the
edge on the timing issue.
Redstone's company owns 19.6 pct ov Viacom's 35 mln shares.
A Wall Street analyst said it was hard to determine what
the equity in the newly leveraged company would be worth. He
noted as an example that new stock in FMC Corp
Shr profit six cts vs loss 4.51 dlrs Net profit 815,167 vs loss 12,955,562 Revs 7,981,022 vs 2,954,488 Year Shr profit 16 cts vs loss 7.22 dlrs Net profit 2,446,100 vs loss 19,175,931 Revs 23.6 mln vs 14.6 mln
All major grain producing countries must do their part to help reduce global surpluses and the recent Australian farm policy proposals are flawed, two U.S. wheat organizations said. The recent Australian proposals were a good starting point for discussions, "but we do not want the Australians to feel they are alone in developing an agenda for discussions" on world grain trade, the president of the National Association of Wheat Growers, NAWG, and the chairman of U.S. Wheat Associates said in a letter to U.S. Agriculture Secretary Richard Lyng and U.S. Trade Representative Clayton Yeutter. Future discussions on international wheat trade should include three topics -- a commitment to privatization of government-run export trading entities, a commitment to public disclosure of sales and other terms if government entities are involved, and a recognition that supply reductions by the U.S. have kept world prices higher than they otherwise would be, the two organizations said While the Australian proposals are welcome the two organizations said they are not in total agreement with their assessments. Australia's proposals, which aim to reduce U.S. target prices and "quarantine" U.S. wheat stocks, would continue to place the burden of supply adjustment and reform on U.S. farmers, they said. Other countries, including Australia, have benefitted from the higher world prices that have resulted from past U.S. acreage and crop reduction programs, the organizations said. "We will not continue to hurt ourselves economically -- and subsidize foreign wheat production -- by unilaterally stocking grain and changing programs which protect our growers," Jim Miller, president of NAWG said. "We sincerely hope for some type of agreement among the world's major grain producing nations to reduce stocks and restore profitability to agriculture," Miller said.
Coastal Bancorp said the U.S.
Federal Reserve Board approved the acquisition of Coastal by
Suffield Financial Corp
Qtr ended Dec 31 Shr profit nil vs loss nil Net profit 858 vs loss 3,957 Revs 7,372 vs 1,500
Shr 15 cts vs 55 cts Net 557,000 vs 2,020,000 Revs 8,872,000 vs 13,908,000 Year Shr 60 cts vs 2.52 dlrs Net 2,198,000 vs 9,313,000 Revs 36.9 mln vs 55.7 mln
Microbiological Research Corp
said it entered into a letter of intent for a proposed business
combination with privately owned
February volume at the Chicago Board of Trade, CBT, declined 14 pct from the year-ago month to 8,191,266 contracts, the exchange said. A relatively steady interest rate climate reduced volume in the most active contract, Treasury bond futures, by 17.5 pct from a year ago to 4,307,645 contracts. However, trading in most agricultural futures contracts increased last month, led by oats and corn futures. Oats volume tripled to 27,662 contracts, and corn volume increased 35 pct to 580,204 contracts. Wheat and soybean oil futures activity also rose from a year ago, while soybean and soybean oil volume slipped, the exchange said. Major Market Index futures increased activity 37 pct during the month with 194,697 contracts changing hands.
Grain trade representatives continued to speculate that the Reagan administration will offer subsidized wheat to the Soviet Union, while U.S. Agriculture Department officials said there was no substance to the reports. "It's pure fiction," said one senior official at USDA's Foreign Agricultural Service, referring to the rumor that the administration would make an export enhancement offer to Moscow in the next two to three weeks. An aide to Agriculture Secretary Richard Lyng who asked not to be identified said there was nothing to substantiate the speculation, which he said was started by "somebody fanning the (wheat) market." Wheat futures strengthened today, partly on the basis of the speculation. One lobbyist with close connections to the Reagan administration said a Soviet trade team told private grain trade officials in New York last week that Moscow would buy as much as four mln tonnes of U.S. wheat, much of it before mid-year, if it was "competitively priced." Alexander Ivlev, an official with Amtorg, a Soviet trading organization, told Reuters he had no information to substantiate the rumors of an imminent wheat subsidy offer, but said that Moscow "would consider" buying U.S. wheat if it was competitively priced. "We don't care if it is EEP, what we (the Soviets) are looking for is competitive prices," Ivlev said. "If they (the administration) are interested in selling it (wheat), they should find ways to do it."
The government's industry aid and protection review body, the Industries Assistance Commission (IAC), will hold a 12-month inquiry into the Australian wheat industry, Primary Industry Minister John Kerin said. The IAC has been asked to report on the need for assistance to the industry and the nature, duration and extent of any aid, he said in a statement. He said the inquiry will be the first step in setting marketing arrangements to apply after June 30, 1989, when the underwriting and pricing provisions of the 1984 Wheat Marketing Act expire. Kerin said the broad-ranging reference would allow a full examination of all aspects of the wheat-marketing system. "The inquiry will be required to take into account changes which have taken place in the industry as a result of the agricultural policies of major wheat producing countries and the industry's capacity to adjust to any recommended changes," he said. "The inquiry is at an important time for the wheat industry, as the substantial fall in world prices is likely to trigger underwriting support from the government for the first time," he said. Kerin was referring to the government's underwriting of the guaranteed minimum price paid to wheatgrowers by the Australian Wheat Board near the start of the season. The IAC's report will be due at the same time as the findings of the current Royal Commission into Grain Storage, Handling and Transport, Kerin said. He said the timing of the IAC inquiry would allow its findings and those of the Royal Commission to be considered in later negotiations on wheat-marketing arrangements between the federal and state governments and the industry.
South Korea's customs-cleared trade surplus narrowed to 110 mln dlrs in February from 525 mln in January, provisional trade ministry figures show. In February 1986 there was a deficit of 264 mln dlrs. February exports rose to 2.87 billion dlrs, fob, from 2.83 billion in January and 2.30 billion in February 1986. CIF imports were 2.76 billion against 2.31 billion in January and 2.57 billion in February last year.
Sweden had a 1986 current balance of payments surplus of 7.6 billion crowns compared with a deficit of 10.1 billion the preceding year, according to preliminary figures from the central bank. The December current account had a 100 mln crowns deficit against a yearago 200 mln deficit.December trade balance was 2.3 billion surplus against yearago two billion. The trade balance showed a 1986 surplus of 33.2 billion crowns compared with a 15.8 billion surplus in 1985, the bank said .
Merrill Lynch Capital Markets said it received a mandate from Industrial Equity Ltd (IEL) of Australia to arrange a letter of credit facility in support of 100 mln dlrs of medium term notes and U.S. Commercial paper to be sold in the U.S. Domestic market. Merrill, which will be the dealer for the medium term notes and commercial paper, said this was the first facility of its kind. Sumitomo Trust and Banking Co Ltd has agreed to provide the letter of credit. The letter of credit has a five year term, with an evergreen feature allowing for extension at the support banks' option. The notes and paper will be issued by IEL's Sydney-based subsidiary, IEL Finance Ltd. The letter of credit will be underwritten by a group of banks who will be paid a 20 basis point facility fee and a 25 basis point utilisation fee. IEL itself is 51 pct owned by Brierley Investments Ltd of New Zealand, Merrill Lynch said.
The Bundesbank is unlikely to change its credit policies at its central bank council meeting on Thursday, as exchange rates and short-term interest rates have stabilized over the past few weeks, money market dealers said. Attention in the money market is focused on tomorrow's tender for a securities repurchase pact, from which funds will be credited on Thursday, when an earlier pact expires, draining 16 billion marks from the system. The tender was announced last Friday, because carnival festivities closed banks in Duesseldorf yesterday, and will close banks here this afternoon. Because of the disruption to business from carnival, minimum reserve figures for the start of the month are unrealistic, making it difficult for banks to assess their needs at the tender. Dealers said the Bundesbank would want to inject enough liquidity in this week's pact to keep short-term rates down. But because of uncertainty about banks' current holdings, the Bundesbank may well allocate less than 16 billion marks this week, and top it up if necessary at next week's tender. "I would not be surprised if the Bundesbank cuts the amount a little, to say 14 or 15 billion marks," one dealer said. "They would then stock it up at the next tender when the need is clearer," he added. An earlier pact expires next week, draining 8.5 billion marks from the system. Banks also face a heavy but temporary drain this month from a major tax deadline for customers. Banks held 52.0 billion marks on February 27 at the Bundesbank, averaging 51.0 billion over the whole month, just clear of the 50.5 billion February reserve requirement. Call money traded today at 3.85/95 pct, up from 3.80/90 yesterday.
Mobil Corp
Hong Kong's broadly defined M3 money supply rose 2.2 pct to 607.17 billion H.K. Dlrs in January, after a 3.1 pct rise in December, for a year-on-year rise of 23.3 pct, the government said in a statement. Local currency M3 rose 3.6 pct to 280.36 billion dlrs from December when it was up 3.4 pct from November, for a rise of 16.3 pct on the year. Total M2 rose 3.3 pct to 535.26 billion dlrs in January from December when it rose 3.5 pct on the previous month. Local M2 rose 4.7 pct to 249.03 billion dlrs in January from December when it climbed 4.2 pct. Total M2 and local M2 rose 32.5 pct and 23.9 pct on the year-ago month, respectively. Total M1 rose 12 pct to 62.84 billion dlrs in January after a 5.0 pct rise the previous month. Local M1 rose 12.3 pct to 57.97 billion dlrs after a 6.2 pct rise. Total M1 and local M1 year-on-year growth was 32.5 and 32.6 pct, respectively. Total loans and advances rose 3.3 pct to 517.19 billion dlrs from December when they rose 1.2 pct. Loans for financing Hong Kong's visible trade rose 3.4 pct to 36.72 billion dlrs after a 1.8 pct rise in December.
The Bank of England said it provided 24 mln stg help to the money market in the morning session. This compares with the bank's upward revised shortage forecast of around 500 mln stg. The central bank purchased bank bills outright comprising two mln stg in band one at 10-7/8 pct and 22 mln stg in band two at 10-13/16 pct.
The price of Hongkong and Shanghai
Hotels Ltd
H.J. Heinz
The Bank of England said it had provided the money market with a further 437 mln stg assistance in the afternoon session. This brings the Bank's total help so far today to 461 mln stg and compares with its revised shortage forecast of 450 mln stg. The central bank made purchases of bank bills outright comprising 120 mln stg in band one at 10-7/8 pct and 315 mln stg in band two at 10-13/16 pct. In addition, it also bought two mln stg of treasury bills in band two at 10-13/16 pct.
Oper shr profit 1.80 dlrs vs loss 2.28 dlrs Oper net profit 2,048,0000 vs loss 1,318,000 Revs 25.4 mln vs 12.3 mln Avg shrs 1,135,000 vs 576,000 NOTE: Net excludes realized investment gains of 40,000 dlrs vs 13,000 dlrs. 1986 net excludes 729,000 dlr tax credit.
Transform Logic Corp said it has revised downward its previously reported fourth quarter and year, ended October 31, results to reflect compensation expense for employee stock options. The company said resolution of this disagreement with its auditors came as a result of Securities and Exchange Commission involvement. The company will amend its option-granting procedure to conform to the SEC decision which will eliminate future charges, it added. Transform said its fourth quarter profit was revised to 305,082 dlrs, or two cts a share, from the previously reported 580,955 dlrs, which left the company with a fiscal 1986 loss of 249,814 dlrs, or two cts a share, instead of the reported 26,195 dlrs profit.
Commerce Secretary Malcolm Baldrige said after the release of a sharply lower January leading indicator index that a pickup in exports is needed. "The best tonic for the economy now would be a pickup in net exports," he said in a statement after the department reported the index fell 1.0 pct in January from December, the sharpest drop since a 1.7 pct fall in July, 1984. The main reasons for the January decline after a 2.3 pct December rise were declines in building permits, new orders for plant and equipment and for consumer and industrial goods.
Sales of new single-family homes in the United States fell 6.8 pct in January from December to a seasonally adjusted annual rate of 716,000 units, the Commerce Department said. The department revised downward December's sales to a 12.1 pct rise to 768,000 units from the previously reported 12.7 pct increase. The January decline in sales was the largest since last October when sales fell 9.3 pct. Before seasonal adjustment, the number of homes actually sold in January was 53,000, up from 49,000 in December but down from 59,000 in January, 1986. The January fall brought home sales to a level 1.6 pct below January, 1986, when they were a seasonally adjusted 728,000 units. The average price was a record 127,100 dlrs, surpassing the previous record 119,100 price set in December. The median price of a home in January reached 100,700 dlrs -- the first time the price has exceeded 100,000 dlrs. That compared with a median price of 94,600 dlrs in December and 94,000 dlrs in January a year ago. New homes available on the market in January totaled a seasonally adjusted 362,000 units, unchanged from December and equal to a 6.3 months' supply. The supply in December was 5.9 months.
Pharmacia AB
A total of 2,435 tonnes of British intervention feed wheat were sold at today's tender for the home market out of requests for 3,435 tonnes, the Home Grown Cereals Authority, HGCA, said. Price details were not reported. No bids were submitted for intervention barley.
Shr 22 cts vs 12 cts Net 3,243,000 vs 1,656,000 Revs 28.4 mln vs 21.5 mln NOTE: All amts reflect 3-for-2 stock split of company's common in form of 50 pct stock dividend paid Feb 26, 1987.
The U.K. Exported 535,460 tonnes of wheat and 336,750 tonnes of barley in January, the Home Grown Cereals Authority (HGCA) said, quoting adjusted Customs and Excise figures. Based on the previous January figures issued on February 9, wheat exports increased by nearly 64,000 tonnes and barley by about 7,000 tonnes. The new figures bring cumulative wheat exports for the period July 1/February 13 to 2.99 mln tonnes, and barley to 2.96 mln compared with 1.25 and 1.89 mln tonnes respectively a year ago. January wheat exports comprised 251,000 tonnes to European Community destinations and 284,000 tonnes to third countries. The Soviet Union was prominent in third country destinations, taking 167,700 tonnes while Poland was credited with 54,500 and South Korea 50,000 tonnes. Italy was the largest EC recipient with 75,000 tonnes followed by West Germany with 55,200 and France 52,000 tonnes. Barley exports for January comprised 103,700 tonnes to the EC and 233,000 to third countries. The Soviet Union was the largest single importer with 133,265 tonnes followed by Saudi Arabia with 53,800 tonnes.
Winter wheat crops in the western Soviet Union, Poland and eastern Czechoslovakia through northern Romania may suffer some winterkill over the next two nights, private forecaster Accu-Weather Inc said. Western USSR winter wheat areas have had only light and spotty snow and winterkill is possible tonight and tomorrow night as temperatures drop to minus 10 to 0 degrees F. Snow cover is scant in Poland, with only about 50 pct of the winter wheat areas reporting one to two inches of snow as of this morning. The remaining 50 pct of winter wheat crops do not have snow cover, making winterkill possible on each of the next two nights. Lowest temperatures will be minus 10 to 0 degrees F. Winter wheat areas from eastern Czechoslovakia through northern Romania had light snow flurries yesterday and last night, but amounts were an inch or less. With temperatures expected to fall to near 0 degrees F over the next two nights, some light winterkill is possible, Accu-Weather added.
Scotia Mortgage Corp is issuing a 100 mln Canadian dlr eurobond due April 9, 1992 paying 8-3/4 pct and priced at 100-3/4 pct, lead manager Wood Gundy Ltd said. The non-callable bond is available in denominations of 1,000 and 10,000 Canadian dlrs and will be listed in Luxembourg. It is guaranteed by the Bank of Nova Scotia. The selling concession is 1-1/4 pct, while management pays 1/4 pct and underwriting pays 3/8 pct. The payment date is April 8 and there will be a long first coupon period.
There was no evidence of winterkill in Yugoslavian winter wheat during field travel along a line running northwest from Belgrade to near Maribor, the U.S. Agriculture Department's counselor in Belgrade said in a field report. The report, dated February 26, said there is evidence of delayed germination in most areas due to late seeding last fall because of dry conditions. However warm temperatures over the past three weeks have promoted some early growth and will help the crop catch up on last fall's late seeding, it said. Some Yugoslav agriculture officials are concerned about the situation because warm temperatures have brought the grain out of dormancy and taken away snow protection a little early, the report said. Cold temperatures over the next month could cause damage under these conditions, they said. The report said all wheat farmers contacted during the field trip were optimistic about the crop and the way it emerged from winter.
Canada's gross domestic product, by industry, rose a seasonally adjusted 1.2 pct in December, the largest monthly gain since April, 1986, Statistics Canada said. GDP, which fell 0.2 pct in November, was 2.1 pct above the December, 1985 level, the federal agency said. Output of goods producing industries rose 1.6 pct in the month, with virtually all the growth occurring in manufacturing and mining. Services producing industries expanded 1.0 pct.
Continental Corp said the fresh start provision of the Tax Reform Act of 1986 may add 1.30 to 1.60 to 1987 earnings per share. The insurance holding company had net earnings of 449.6 mln dlrs, or, or 7.42 per share, in 1986. John Loynes, Continental chief financial officer, said the fresh start provision allowed the company to discount opening tax reserves to January 1, 1987, which released deferred taxes into earnings. Loynes said the provision's potential benefit would decline gradually over the next four years, during which time Continental will pay 250 mln to 350 mln dlrs more in taxes. Loynes added, however, the higher taxes are not expecetd to have a significant impact on earnings.
Shr profit 27 cts vs profit 51 cts Net profit 6,600,000 vs profit 12,231,000 Revs 211.7 mln vs 193.4 mln 12 mths Shr loss 17 cts vs profit 1.27 dlrs Net loss 4,077,000 vs profit 30,142,000 Revs 753.5 mln vs 673.4 mln NOTE: in qtr ended 1986 the company recognized expenses of 5,948,000 for restructing the combined operations of BBDO, Doyle Dane Bernbach and Needham Harper Worldwide in August 1986 before tax gains. These relate primarily to the conosolidation and elimination of duplicate facilities and staff. for the year 1986, the provisions for mergers and restructuring expenses brought non-recurring expenses to 40,292,000 before tax gains, of which 8,863,000 represented merger costs and 31,429,000 related to restructuring of the combine operations.
Venezuela will limit new loans to 50 pct of the interest and principal it repays on its 31 billion dlr foreign debt, President Jaime Lusinchi told political leaders. Speaking last night at a new session of congress, he said last week's agreement to reschedule 21 billion dlrs in public sector foreign debt at lower interest rates reflected Venezuela's improved credit image. "Our priority is development, but I insist that there cannot be development if we don't fulfil our obligations," he said. Venezuela agreed last Friday with its 13-bank advisory committee to lower the interest margin to 7/8 pct over libor from 1-1/8 and reduce amortisations in the next three years to 1.35 billion dlrs from 3.35 billion. "The important thing is that this rate of 7/8 pct is a marker for new negotiations and will save us 50 mln dlrs this year," Lusinchi said. He said the country had been loyal to the principles of the Cartagena group of Latin American debtors but had "decided to reach an agreement convinced that Venezuela is a specal case, because of the vulnerability of its economy." Venezuela signed a 12-1/2 year rescheduling accord in February, 1986, but immediately sought new terms because of falling oil income, which dropped 40 pct last year. Finance Minister Manuel Azpurua told reporters he hopes to sign the new rescheduling accord early in the second quarter, but that in any case it would become effective from April 1. Azpurua said Venezuela's 450 or so creditor banks have been contacted with details of the new agreement, and that Public Finances Director Jorge Marcano may visit financial centres to round up support. Azpurua said that among the details still to be finalised were the exact timetable for reprogrammed payments and the outlines of a government plan to allow public and private sector debt capitalisation. He said banks had shown willingness to consider new loans to Venezuela, a fundamental achievement in the new accord. "Substantial progress has been made in talks and we will now have to define more precisely what projects can be financed from foreign borrowing," he said, adding that loans for steel and aluminium and iron ore sectors could be the first to materialise.
Deutsche Bank Finance NV Curacao is issuing a 75 mln stg eurobond due April 2, 1997 paying 9-7/8 pct and priced at 101-3/4 pct, joint-lead manager Kleinwort, Benson Ltd said. Deutsche Bank Capital Markets is the other joint-lead manager. The issue is guaranteed by Deutsche Bank AG and is callable at 100-3/8 pct after seven years, declining by 1/8 point per annum to par thereafter. The selling concession is 1-3/8 pct while management and underwriting combined pays 5/8 pct. The issue is available in denominations of 1,000 and 10,000 stg and will be listed in Luxembourg. The payment date is April 2.
Chile's consumer price index rose 1.7 pct in February to 562.01 (December, 1978 equals 100) after increases of 2.0 pct in January and 0.9 pct in February 1986, the government's National Statistics Institute said. Inflation as measured by the index rose to 17.5 pct over the 12 months to the end of February, compared with 16.6 pct last month and 24.5 pct to the end of February, 1986. In the first two months of the year, inflation was 3.8 pct, against 3.6 pct in the same period of 1986.
Major copper producing and consuming countries are considering a U.S. proposal to set up a study group to review the world copper market, delegates said. The U.S. initiative was introduced last December at a meeting held here under the auspices of the United Nations Conference on Trade and Development (UNCTAD). The U.S., the world's largest copper consumer and second biggest producer after Chile, has proposed setting up a body to improve statistics and market transparency of the copper economy, and provide a forum for discussion. The new body would not aim at negotiating measures to stabilise depressed world prices. This week's meeting, which began yesterday, is due to end Friday.
Shr nine cts vs one ct Net 247,489 vs 27,301 Sales 1,933,107 vs 796,613 Six mths Shr 21 cts vs five cts Net 565,106 vs 121,997 Sales 3,781,970 vs 1,778,110
One offer but no bid was posted for SRW wheat on the call session at the St Louis Merchants Exchange today. There were no bids or offers for milo. June 15-July 15 bill of lading for wheat was offered at 17 over July, no comparison, no bid.
Belgian Foreign Trade Minister Herman De Croo said if Congress passed legislation curbing world textile imports the only way the European Community (EC) could react was to retaliate. De Croo said at a news conference "if you limit textile imports, you will re-orient textiles to Europe." And that he said would trigger EC taxes on U.S. goods. Congress passed a textile bill two years ago, but it was vetoed by President Reagan on grounds that curbing imports to protect the domestic textile industry would trigger retaliation U.S. trading partners. A similar bill has been introducted this year, in a Congress with a bigger Democratic majority and with a President weakened by the Iran scandal. De Croo, here for talks with Administration officials and Congressmen, said if a textile bill passed, "the only way we could react would be retaliation, and it would cause more retaliation, which is not a good way to deal with problems." He said if a textile bill was enacted, "we will impose taxes on a lot of American products." He said "it would be stupid. We have to avoid that." He said Congressmen seem upset mosty with Japan, because of its massive trade suprlus with the United States, and not with EC nations, but EC nations will be hurt by the diverted shipments of Asian textiles. De Croo also criticized the way U.S. officials try to solve EC trade issues, saying "each time we come in contact, it a conflict contact. The clouts are coming fom the West." He said it then is a crisis atmosphere with officials cross the Atlantic and dramatized with headlines. "This is not the way to work in a serious way between two big powers," De Croo said.
Oper shr 25 cts vs 1.21 dlrs Oper net 1,366,000 vs 6,287,000 Revs 251.3 mln vs 107.1 mln Year Oper shr 1.10 dlrs vs 1.06 dlrs Oper net 5,552,000 vs 4,982,000 Revs 827.5 mln vs 434.4 mln NOTE: Oper net excludes results of Kay Jewelers Inc, a former subsidiary. On Dec 31, 1986 company distributed remaining 80.4 pct interest in subsidiary to Kay Corp holders. 1985 amts restated in connection with company's distribution of investment in Kay Jewelers Inc. 1986 4th qtr and yr oper net excludes 8,308,000 dlrs or 1.52 dlrs per share, and 7,774,000 dlrs or 1.54 dlrs per share, respectively, for equity in net income of spun-off unit. 1985 4th qtr and yr oper net excludes 6,806,000 dlrs or 1.28 dlrs per share and 5,770,000 dlrs or 1.09 dlrs per share, respectively, for equity in net earnings of spun-off unit. 1985 oper net also excludes 2,778,000 or 52 cts per share for adoption of new pension accounting rules and ine cts per share for gain from assets sales.
Shr 1.62 dlrs vs 1.33 dlrs Net 10.3 mln vs 8,459,000 Revs 127.5 mln vs 95.7 mln Year Shr 1.52 dlrs vs 1.20 dlrs Net 9,669,000 vs 7,481,000 Revs 278.1 mln vs 232.00 mln
Magellan Corp said it has entered into a letter of intent to acquire Balzac Investments Inc in a transaction that will result in former Balzac shareholders owning about 83 pct of the combined company. The company said on completion of the merger, the combined company wopuld be known as Power-Cell Inc and be engaged in the development of Balzac technology related to its Quick Charge product for charging auto batteries. The transaction is subject to approval by shareholders of both companies.
Qtly div 70 cts vs 70 cts prior Pay May One Record April Three
Brazilian Finance Minister Dilson Funaro, on the third leg of a trip to explain his country's stance on debt to European governments, met West German Finance Minister Gerhard Stoltenberg for talks this evening and the two men were continuing their discussions over dinner, Brazilian delegation sources said. They said the Funaro and Stoltenberg discussed Third World debt in general and Brazil's debt position in particular but declined to give further details. Funaro was scheduled to travel to Switzerland tomorrow, they added.
French exporters estimated that around 600,000 tonnes of French soft wheat has been sold to China for delivery in the 1986/87 (July/June) year. Around 300,000 tonnes were exported to China between July 1986 and February this year. Another 100,000 to 150,000 tonnes will be shipped during this month and around the same amount in April, they said. France sold around 250,000 tonnes of soft wheat to China in 1985/86, according to customs figures. However, certain exporters fear China may renounce part of its contract with France after being offered one mln tonnes of U.S. soft wheat under the Export Enhancement Program in January and making some purchases under the initiative.
Shr 2-1/5 cts vs nil Net 156,726 vs 11,989 Sales 1,157,883 vs 890,138
Qtly div 11 cts vs 11 cts in prior qtr Payable April 10 Record March 23
International Technology Corp said it has purchased privately-held Western Emergency Service Inc in a stock transaction. Western Emergency, an environmental services firm, has annual sales of between one and two mln dlrs, compared to International Technology's roughly 240-mln-dlr annual sales, a spokesman for International Technology said.
Oper shr profit 21 cts vs loss 2.13 dlrs Oper net profit 456,000 vs loss 2,454,000 Revs 16.3 mln vs 13.1 mln Year Oper shr 1.39 dlrs vs loss 2.41 dlrs Oper net profit 1,815,000 vs loss 2,779,000 Revs 58.0 mln vs 43.8 mln NOTE: 1986 4th qtr and yr oper net exclude realized investment gains of 279,000 dlrs and 1,013,000 dlrs, respectively, which includes provision for income taxes of 238,000 dlrs and 863,000 dlrs for the periods, respectively. 1986 4th qtr and yr oper net exclude 606,000 dlrs or 38 cts per share and 2,323,000 dlrs or 1.86 dlrs per share, for net operating loss carryovers. 1985 4th qtr and yr oper net exclude realized investment gains of 439,000 dlrs and 666,000 dlrs respectively.
Continental General Insurance Co said its board of directors declared a 10 pct stock dividend on common shares, payable April one to shareholders of record March 16. The company yesterday paid a quarterly cash dividend of 2-1/2 cts a share, unchanged from the previous quarter, to shareholders of record February 20.
The chairman of Goodyear Tire and Rubber Co, a concern that survived a recent hostile takeover bid, charged that "terrorists in three-piece suits" are undermining the nation's industrial base. In a speech to a meeting of south Florida business executives, Goodyear Chairman Robert Mercer lashed out at corporate raiders and takeover specialists, accusing them of causing serious harm to the companies they target. "Their interest is not in preserving and strengthening America's industrial and providing jobs," he said. "Their product is simply deals, and that is not a product which a country ... can base a future on." Last year, Mercer fought off a takeover attempt by British industrialist Sir James Goldsmith. But Goodyear's independence was preserved at a high price, Mercer said. The company bought back Goldsmith's stock for 620 mln dlrs, giving him a 93 mln dlr profit. Goodyear also paid him 37 mln dlrs for expenses and bought about 41 mln other shares for over two billion dlrs. In an effort to trim its new debt, Goodyear closed down three plants Mercer believes otherwise could have been saved, sold its motor wheel and aerospace units and reduced its payroll by 10 pct, he said. Mercer, who plans to testify tomorrow at a Senate hearing on a proposed bill to control corporate raiders, said hostile takeovers have also hurt workers.
The Commodity Credit Corporation has approved an additional 45.0 mln dlrs under its interemdiate export credit guarantee program, GSM-103, for sales of U.S. wheat to Morocco, the U.S. Agriculture Department said. The action increases Morocco's cumulative fiscal year 1987 program for wheat under GSM-103 to 75.0 mln dlrs. The credit terms extended for exports under the program must be in excess of three years but no more than seven years to eligible for credit coverage. All sales under this line must be registered and exported by September 30, 1987. The department also said the guarantee line for sales of U.S. wheat under the Export Credit Guarantee Program, GSM-102, has been decreased 45.0 mln dlrs to 60.0 mln.
Qtrly div 17 cts vs 17 cts prior Pay April 13 Record March 25
(Alcan Aluminium Ltd) is closing its aluminum smelter in Ludwigshafen, West Germany this June due to high operating costs, an Alcan spokesman said. The smelter, near Frankfurt, had annual capacity of about 44,000 metric tons but was operating at about half that in January, spokesman Fernand Leclerc said. Leclerc said Alcan decided it would cost too much to modernize the plant. He said there is a possibility the company will sell the smelter, which currently employs 320 people, before its scheduled closing.
Shr loss 72 cts vs loss 1.48 dlrs Net loss 4,466,006 vs loss 9,091,688 Revs 608,181 vs 1,280,727 Avg shrs 6,194,000 vs 6,155,461 First half Shr loss 77 cts vs loss 1.51 dlrs Net loss 4,752,455 vs loss 9,265,457 Revs 1,444,149 vs 2,791,188 Avg shrs 6,174,731 vs 6,155,461 NOTE: Losses include charges of 4.0 mln dlrs in both 1986 periods vs 14.4 mln dlrs in both 1985 periods for write-down of oil and gas properties
Shr profit three cts vs loss seven cts Net profit 161,000 vs loss 367,000 Revs 24.3 mln vs 26.5 mln
Qtly div 28 cts vs 28 cts prior Pay April one Record March 13
Net loss 705,496 vs loss 182,766 Sales 642,590 vs 1,126,315
Reid-Ashman Inc said it has decided to divest its test products division, located in Santa Clara. The company said it will entertain offers through March 30. It also said Steven Reid, a company founder and president of the test division, has made an offer to purchase the unit. The company's test division accounted for about ten pct of total revenues in the year ended Sept 30, 1986 and is currently running a revenue rate of under two mln dlrs per year, it said.
Qtly div five cts vs five cts Pay May 22 Record May 8
Shr loss 25 cts vs profit 11 cts Net loss 446,005 vs profit 185,325 Sales 2.4 mln vs 2.5 mln 12 mths Shr loss 16 cts vs profit 41 cts Net loss 282,305 vs profit 709,787 Sales 10.1 mln vs nine mln
The Australian Government will likely reimburse the Australian Wheat Board, AWB, about 132 mln (U.S.) dlrs to pay wheat farmers for their 1986/87 crop, the U.S. Agriculture Department said. In its report on Export Markets for U.S. Grains, the department said the sharp fall in world wheat prices has reduced the export sales revenue of the AWB to levels insufficient to cover its breakeven export price estimated at around 98 dlrs per tonne. For example the recent large sales of wheat to China (1.5 mln tonnes) and Egypt (2.0 mln tonnes) were well below the breakeven export price, it said. Australian wheat farmers normally receive an advance payment known as the Guaranteed Minimum Price, GMP, calculated at 90 pct of the average of estimated returns in the current year and the two lowest of the previous three years, the department said. In addition, deductions for taxes, freight, handling and storage are deducted from the GMP the farmer receives. But the department said the Australian Bureau of Agricultural Economics, BAE, predicts wheat production will drop sharply from 17.8 mln tonnes in 1986/87 to 13.5 mln in 1989/90. The decline will result from low world grain prices leading to shifts to livestock and other crops which could benefit U.S. wheat exports, the department said.
Qtly div seven cts vs six cts prior Pay April 17 Record April three
First Union Corp said it is raising 100 mln dlrs through an offering of par-priced 8-1/8 pct subordinated notes due December 15, 1996. Managing underwriter for the issue is Shearson Lehman Brothers Inc. The bonds, which are non-callable, are rated A-2 by Moody's Investors Service and A-minus by Standard and Poor's. They were priced to yield 94.5 basis points over Treasury securities of comparable maturity.
Shr 16 cts vs 35 cts Net 476,000 vs 929,000 Revs 3,000,000 vs 3,600,000
Japanese traders have apparently sharply reduced commitments to buy Chinese corn over the next six months due to high prices, the U.S. Agriculture Department said. In its World Production and Trade Report, the department said traders indicated China may lack supplies or be unwilling to sell at current low world prices. If the reports are confirmed, China's major export destinations such as USSR, Japan, and South Korea, could increase purchases of U.S. corn, it said. China is currently forecast to export 5.5 mln tonnes of corn during 1986/87 (Oct-Sept), it said.
The European Community, EC, sold 75,000 tonnes of soft wheat at a subsidized price of between 85 and 89 dlrs per tonne FOB for March delivery in a continuing bid to establish itself in the Brazilian wheat market, the U.S. Agriculture Department said. The sale sharply undercut the U.S. offer of 112 dlrs per tonne FOB for 33,000 tonnes of wheat, it said in its latest report on Export Markets for U.S grains. EC sales to Brazil total about 225,000 tonnes during 1986/87 (July-June) in stark contrast to only 50,000 tonnes in the 1985/86 season, it said. The increasing presence of EC wheat in Brazil comes at a time when the Brazilian Wheat Board, BWB, expects the wheat import market will expand to 3.4 mln tonnes from the current forecast of 3.0 mln in the 1986/87 year. The BWB cites record consumption and an eventual decline in domestic production, and says government plans to lower the guaranteed price of wheat from 242 dlrs per tonne to 180 dlrs will contribute to greater import demand, the USDA said. It said the BWB expects the U.S. to be major supplier of the additional 400,000 tonnes, but commitments for purchase of U.S. wheat through two-thirds of 1986/87 year total only 600,000 tonnes versus 700,000 a year ago.
Bangladesh passed on its weekend tender for 100,000 tonnes of optional origin soft wheat, private export sources said.
Borden Inc called for redemption on March 23 of all its outstanding 8-1/2 pct sinking fund debentures, due 2004. The company said the redemption price is at 104.55 pct of face value plus 40.61 dlrs accrued interest from October 1, 1986 to the redemption date, making for a total of 1,086.11 dlrs for each 1,000 dlrs face value. The trustee is Bank of America National Trust and Savings Association in San Francisco and the paying agent is Bankers Trust Co, New York.
Shr four cts vs three cts Net 4,505,000 vs 4,493,000 Revs 23.3 mln vs 21.4 mln
Chicago Board of trade grain traders and analysts voiced a lot of interest in how farmers planned to handle their upcoming spring plantings, prompting sales of new crop months of corn and oats and purchases in new crop soybeans in the futures markets. Professionals in the grains trade think that farmers will be more willing to stick with corn acres than soybeans because corn is protected by the acreage reduction program. That gives deficiency payments to farmers if corn prices stay low. Farmers can place soybeans under the loan program if they sign-up for reduced acreage, but they have no price guarantees. With the price outlook for both commodities so dismal, traders believe farmers will want to stick with a sure thing rather than gamble on soybeans, even though the new crop soybean/corn ratio of 2.9/1 would make planting soybeans more attractive under normal circumstances. An announcement late Friday that the USDA will lift the limited cross-compliance requirement for the 1987 oats crop, means farmers will be able plant an estimated two to three mln more oat acres this year than last without being penalized, traders said. Here too, acres some farmers may have been thinking of shifting to soybeans will now be planted with oats, due to the more attractive deal from the government, they added. Cotton prices are almost twice what they were just six months ago, which should prompt many farmers in the South to put soybean land back into cotton. One of the reasons for the steady increase in soybean production in recent years has been a general shift of acres in traditional cotton producing regions of the South to soybeans, which are easier to grow, one commercial trader said.
Rockwell International Corp continues to expect significant improvement in 1987 results, despite the somewhate disappointing performance of one of its business segments, President Donald Beall told Reuters. Rockwell reported net earnings in its first quarter ended December 31 of 149.4 mln dlrs, or 1.05 dlrs per share, compared to 125.8 mln dlrs, or 84 cts per share a year ago. Operating earnings, however, were off about four pct, and analysts have attributed the decline to Rockwell's Allen-Bradley unit, which has suffered from weakness in the industrial automation market. "It is in a soft market now, but we are not concerned. It is moving forward with market development and is enhancing market share," Beall said of Allen-Bradley unit. Beall, who was in Los Angeles to address a Technology management conference, said first quarter sales for the Allen-Bradley unit were flat as compared to a year earlier. He said the company does not break out operating earnings by unit on a quarterly basis. Beall said the recent trend toward cost sharing in the research and development phase of government contracts should not have a major impact on Rockwell's near-term performance. He noted, however, the increasing focus on cost sharing could limit technological innovation. "I worry that we are heading into a period of misuse of contracting approaches too early in the development stages of important military contracts," Beall said, adding, "long-term, we have a very serious problem." In addition, Beall told the conference the greatest competitive threat to defense contractors is in defense electronics, due to the government's attempt to take advantage of competitively priced products made outside the U.S.
Shr not given
Oper loss 5,900,000 vs profit 9,300,000
Revs 105.3 mln vs 131.2 mln
Year
Shr not given
Oper loss 21.7 mln vs profit 34.7 mln
Revs 370.7 mln vs 515.1 mln
Note: 67 pct owned by
The Italian treasury said it will issue 3,000 billion lire of a new type of indexed government paper, discount certificates (CTS), on March 18. Treasury Minister Giovanni Goria said at a news conference the new certificates will be heavily discounted and aimed at small investors rather than institutions. The Treasury said in a statement the annual yield of the seven-year certificates will be indexed to 50 pct of the annual yield of 12-month treasury bills. Effective annual yield after tax for the first CTS issue will be 9.66 pct. "The launch of the new certificate has to be viewed in the framework of the management of the public debt as a step towards the return of a larger volume of fixed-rate issues," the Treasury said. The Treasury said future CTS issues likely would be certificates longer than seven years. CTS automatically offers a portfolio diversification between fixed-rate and variable-rate investments.
Oper shr loss 22 cts vs loss 13 cts Oper net loss 1,712,916 vs loss 769,539 Revs 2,292,972 vs 2,157,895 Avg shrs 7,961,602 vs 6,200,293 Year Oper shr loss 53 cts vs loss 45 cts Oper net loss 3,562,151 vs 2,543,366 Revs 9,117,311 vs 8,251,136 Avg shrs 7,169,871 vs 6,186,51 NOTE: Current year net both periods excludes charge 430,649 dlrs from cumulative effect of accounting change for patents. 1986 net both periods includes charge of about 458,000 dlrs from severance obligations. 1986 year net includes charge 156,000 dlrs from writeoff of seed commitments.
Poland's winter wheat is likely to survive recent frosts but the impact of the cold will not be known until late April, the Polish meteorology institute said. Some varieties of winter wheat sown in Poland can survive ground temperatures as low as minus 20 degrees C, Spokesman Teresa Tomaszewska told Reuters. Even though an earlier thin protective layer of snow mainly melted in February, air temperatures down to minus 30 C should not be harmful, she said, but added that wheat can still be damaged by cold spells in March and April, when young shoots may be exposed to night frosts.
Brown-Forman Inc said at the suggestion of the American Stock Exchange it has changed the record date for the 28 ct per share quarterly dividend on its Class A and Class B common stock that is payable April One to March 20 from March 13, to coincide with the record date for a three-for-two stock split declared February 26. It said the record date for the dividend on its four pct cumulative preferred stock has also been changed to March 20 from March 13.
Mark Hammer, a private investor from Melville, N.Y., and members of his family told the Securities and Exchange Commission they have acquired a total of 375,200 shares of Exovir Inc, or 12.9 pct of the total outstanding. Hammer said his group has been accumulating Exovir stock since Oct 28, 1985 for investment purposes and may buy more shares or sell all or part of his current stake. While he said he has no intention of seeking control of the company, Hammer said that because of his "extensive business experience" and his interest in Exovir stock, he may be "invited" to become a member of the company's board.
The European Community Commission today appointed its chief spokesman, Hugo Paemen, as its top official in charge of multilateral trade negotiations, a Commission spokesman said. Paemen, a Belgian official who had previously been chief aide to former External Affairs Commissioner Etienne Davignon, has been in his post since January 1985. The spokesman said Paemen will continue as chief spokesman until the retirement on May 1 of Paul Luyten, who is now in charge of EC departments handling negotiations in the world trade body GATT, the OECD and other forums.
Sen. Rudy Boschwitz, R-Minn., said he intended to offer legislation that would allow 1987 producers of wheat, feedgrains, cotton and rice to receive at least 92 pct of their deficiency payments, regardless of how much they planted. Boschwitz told the Senate Agriculture Committee that applying the so-called 0/92 provision to 1987 crops was supported by the Reagan administration and would save approximately 500 mln dlrs, including 266 mln dlrs in corn payments, 90 mln dlrs in wheat and 30 mln dlrs in cotton. The Minnesota senator said he might offer the bill on the Senate floor or in a conference committee with the House of Representatives in the event a similar bill before the House Agriculture Committee is approved by that body. Boschwitz told Reuters that neither he nor the U.S. Agriculture Department had decided whether or how deficiency payments should be guaranteed to farmers who might choose not to plant under the decoupling scheme. If payments are not set in advance under decoupling, market prices conceivably could rise, thereby leading to diminished deficiency payments. Senate Agriculture Committee Chairman Patrick Leahy, D-Vt., said he wanted to go to conference with the House as soon as possible on the issue, but would have to study the matter further before deciding how he would vote on it.
French soft wheat exports to other European Community countries fell 18 pct to 4.13 mln tonnes in the first seven months of the 1986/87 season to January compared with 5.04 mln in the same 1985/86 period, the French Cereals Intervention Office (ONIC) said. According to latest ONIC statistics, the main buyers were Italy with 1.89 mln against 1.63 mln in the same 1985/86 period, West Germany 480,450 tonnes against 717,689, the Netherlands 462,048 (532,299) and Belgium 417,887 tonnes (919,337). British and Greek imports of French soft wheat during this period were below year-ago levels. Between July 1 last year and January 31, Britain bought 274,665 tonnes against 642,800 tonnes, ONIC figures showed. But Spanish purchases were up sharply at 258,507 tonnes against 2,751 tonnes in the same 1985/86 period and Portugal bought 37,599 tonnes compared with zero. ONIC said the drop in French exports to other Community countries was due to British competition.
Unicorp Canada Corp told the Securities and Exchange Commission it cut its stake in Purolator Courier Corp to 286,500 shares, or 3.7 pct of the total outstanding, from 962,400 shares, or 12.4 pct. Unicorp, a management and investment holding company controlled by its chairman, George Mann, said it sold 675,900 Purolator common shares on March 2 and 3 at 34.782 and 34.750 dlrs a share. Purolator agreed this past weekend to be acquired by managers of its U.S. courier business and E.F. Hutton LBO Inc in a leveraged buyout valued at 265 mln dlrs.
The Canadian Wheat Board has advised the federal government to sharply cut initial prices paid to farmers for their wheat, oats, and barley in the crop year beginning August 1, a board spokesman said. The spokesman declined to give the size of the recommended price drops but said it would not be good news for western Canadian grain growers. "They're all lower," he said. "This is really getting pretty serious. We're talking nuts and bolts economic survival and whether it's worthwhile for farmers to put in a crop." Farm leaders and economists have estimated the board will recommend cuts of around 20 pct in the initial prices. Farmers receive the initial payment when the grain is delivered to the elevators used by the wheat board. If the wheat board, which markets most of Canada's grain, obtains higher than expected prices on world markets, the farmers receive a final payment at the end of the crop year. If prices are lower, the federal treasury makes up the difference. The final decision on the initial prices, usually made in April, rests with Wheat Board Minister Charles Mayer and the federal cabinet. Last year Mayer cut the initial prices between 19 and 27 pct but last fall the government announced a one billion Canadian dlr aid program to compensate for the price cuts. But federal agricultural officials have already warned farmers not to depend on additional government aid this year.
The ruling GATT Council deferred a decision on whether to set up a dispute panel on the basis of a European Community complaint against the U.S.- Japanese agreement on exports of computer semiconductors. David Woods, spokesman of the General Agreement on Tariffs and Trade (GATT), told a news briefing that the main parties would continue bilateral talks. This was in the hope of resolving the row before the next Council meeting on April 15. The five-year accord signed in July 1986 aims to protect the U.S. Market from dumping of low-price Japanese microchips, officially known as semiconductors. The E.C. Complained the accord breached GATT trade rules by allowing Tokyo to monitor prices, allowing it to set minimum prices for Japanese chips sold in third countries. The 12-nation Community also charged the agreement gave U.S. Producers preferential access to the Japanese market. Woods said many nations -- Hong Kong, Canada, Switzerland, Singapore, Sweden, Malaysia and Nigeria -- had supported the EC complaint during the heated Council debate. Japan's delegate, Minoru Endo, and U.S. Ambassador Michael Samuels replied in the debate that the E.C. Charges were unfounded, but they were willing to continue bilateral talks.
colombia's cost of living index rose 2.03 pct in february after a 3.27 pct increase in january and a 3.15 pct rise in february 1986, the government statistics institute said. The rise brought year-on-year inflation to 19.77 pct compared with 23.72 pct at end-february 1986 and 21.66 pct for the year ending january 1987. The government has predicted that inflation this year would be lower than in 1986 when it reached 20.9 pct.
Qtly div 12-1/2 cts vs 12-1/2 cts prior Pay April One Record March 13
Pacific Telesis Group chairman Donald Guinn told a meeting of security analysts that the company sees continued earnings growth in 1987 above the 1.08 billion dlrs, or 5.02 dlrs per share, earned in 1986. Guinn also said that capital spending stood at about 1.8 billion dlrs in 1986, and the company expected the figure to remain flat each year through 1989. He noted that all captial spending will be internally financed. Guinn also told analysts that the company faced some regulatory uncertainties in ongoing rate cases at its Pacific Bell operating company. In rates hearings before, the California Public Utility Commission, Guinn said the company faced a potential 76 mln dlr revenue reduction, and due to ongoing discussions with the commission, he said the figure might even be greater. The company also faces some opposition to a 225 mln dlr rate hike requested for 1986. Guinn said the commission found 180 mln dlrs of the hike was based on questionable calculations and assumptions, while 45 mln dlrs might represented unneeded modernization costs. Guinn also said that the company is still studying whether to join an international consortium that plans to lay a transpacific telephone cable between the U.S. and Japan. "We have not agreed to anything," Guinn said, but added he would soon recieve a feasibility study on the venture and the company would make a decision soon on participating. Asked by an analyst about the recent recommendation by the U.S. Department of Justice which would allow the Bell operating companies to offer limited long distance services, Guinn said the company would likely shy away from that type of expansion. "(Long distance services) is a very competitive business. It's a commodity business and becoming more so," he said. "I'm not so sure we would be interested in getting back into that business." However, Guinn generally applauded the U.S. recommendations, saying they would give more latitude for the Bell operating companies to expand into non-regulated businesses and provide more flexibility to form strategic alliances with other companies. He added that while the company welcomes the expansion into new areas, it is not currently involved in any acqusition talks. "We do not have anything actively under consideration," he said.
U.S. and U.K. bank regulators are asking banks to set aside more reserves than is necessary to cushion them against the risks posed by the interest rate and currency swap transactions they carry, swap dealers said. After viewing proposed guidelines released jointly today by the Bank of England and the Federal Reserve Board, dealers said that in effect, regulators are asking them to set aside reserves twice for the same risk. Market participants will have 60 days to respond to the proposals. Adoption of stiffer capital requirements is especially significant in the eurobond markets, which saw new issue volume of about 183 billion dlrs in 1986 according to figures compiled by Euromoney magazine. While no firm figures exist, dealers in eurobonds estimate that 80 pct of all new issues are involved in some swap arrangement. Separately, the ISDA estimates that about 300 billion dlrs worth of swap transactions are outstanding. Kenneth McCormick, co-chairman of the International Swap Dealers Association (ISDA) and President of Kleinwort Benson Cross Financing Inc, said that the Association has no comment and will study the proposals. "What they are proposing is really double counting," Patrick de Saint-Aignan, managing director of swaps for Morgan Stanley and Co, said. Instead, he argues, banks should either be required to hold a percentage of the face value -- say one pct per year to maturity -- or to hold a percentage of the cost of replacing the contract in the event of a counterparty default. "The potential risk factors are very large relative to what we had expected," said a director at one U.K. merchant bank. "What they are really doing is asking you to capitalize now -- to borrow money now -- to cushion you against risk you might have 10 years from now," he added.(Adds title first paragraph). Dealers also said they believe that banks not covered by the agreement, such as those based in Japan, will have a competitive advantage because they will not have to pass the costs on to customers. Indeed, regulators are apparently also concerned about the exclusion of other countries from the new requirements. Federal Reserve Board Governor Martha Seger, following approval of the proposed guidelines by the Fed, said she is concerned that Japan was not involved in the U.K.-U.S. effort to draft new capital rules. Dealers said they were somewhat relieved to see that bank regulators recognized the concept of netting, that is, offsetting the amounts receiveable from and payable to a single counterparty against each other. The paper said that regulatory authorities "recognize that such arrangements (netting) may in certain circumstances reduce credit risk." Furthermore, the paper said, if a netting agreement could be reached that would withstand legal tests, it might be willing to reduce capital requirements accordingly. But dealers said they fear regulators may insist on an airtight netting agreement that is impossible to design. "One problem is that there has never been a major default in the swaps market. So we don't know if any of the swap arrangements will really stand up in court," said one bank official.
Dynamics Corp of America said it has reached an agreement with CTS Corp resolving all differences between the two companies. It said as a result of the settlement, CTS's special board committee has stopped soliciting orders to purchase some or all of CTS. Dynamics, which now owns 27.5 pct of CTS' outstanding stock, said it agreed to limit its shareholdings to not more than 35 pct of the outstanding shares for a year following the company's 1987 annual meeting. Dynamics said the CTS board will recommend CTS shareholders vote at the 1987 annual meeting in favor of the company paying Dynamics 2,178,000 dlrs as a reimbursement for its CTS releated costs and granting Dynamics an option to buy enough CTS common at 29.625 dlrs a share to give it ownership of 35 pct of the outstanding stock. Dynamics said the price of stock under the option, exercisable for one year, is based on the average closing price for the stock for the five days ending March two. Dynamics said CTS Chairman George F. Sommer will assume the additional title of President. Former President Robert D. Hostetler is resigning as a director, as is Chief Financial Officer Gary B. Erekson, Ted Ross and Donald J. Kacek. Dynamics said the CTS board will be reduced to seven members for eight with the remaining four members of the current board and three representatives of Dynamics as new directors.
Shr loss one cent Net loss 186,000 Revs 10.7 mln 11 mths Shr loss 7.26 dlrs Net loss 121.4 mln Revs 46.9 mln NOTE: In February 1986, Kaneb Services Inc contributed all of its domestic oil and gas operations to Kaneb Partners, which was newly formed, and exchanged approximately 3,200,000 depositary units respresenting limited partnership interests in KEP for approximately 6,400,000 million shares of the outstanding common stock of Kaneb Servies Inc. Kaneb now owns approximately 82 pct of KEP. During the 11 mths of operation, the partnership wrote down the carrying value of its oil and gas properties by 124.8 mln dlrs. The write downs reduced income by 7.46 dlrs per limited partnership unit.
Shr profit 13 cts vs loss one ct Net profit 853,000 vs loss 22,000 Sales 41.1 mln vs 20.3 mln Avg shrs 6,349,753 vs 4,403,852 Nine Mths Shr profit 57 cts vs profit 28 cts Net profit 2,869,000 vs profit 1,252,000 Sales 119.0 mln vs 67.6 mln Avg shrs 5,054,844 vs 4,403,852
Shr 1.52 dlrs vs 17 cts Net 1,306,000 vs 144,000 Rev 758,000 vs 670,000 Year Shr 2.68 dlrs vs 2.63 dlrs Net 2,313,000 vs 2,285,000 Rev 2.8 mln vs 2.7 mln NOTE: Fourth qtr and 1986 had gains on real estate investments of 933,000 dlrs, or 1.08 a share, and 970,000 dlrs, or 1.12 a share, respectively. This compares with a loss of 137,000 dlrs, or 15 cts a share, and again of 1.3 mln dlrs, or 1.45 a share, for the fourth qtr and year respectively in 1985.
Congressmen from beef producing states and representatives of the U.S. livestock industry urged the Reagan administration to press Japan and South Korea to open up their markets to imports of beef. Testifying at a House subcommittee hearing on livestock issues, Rep. Hal Daub (R-Nebr.), said the administration should push hard for greater beef imports by Japan and South Korea. Daub was joined by several other lawmakers. U.S. assistant trade representative Suzanne Earley, replied "we're not going to let Japan off the hook, or Korea." She noted trade representative Clayton Yeutter met with a senior Korean official last week on the beef issue, and that Yeutter and Agriculture Secretary Richard Lyng will visit Tokyo in April for discussions on farm trade issues. Japan maintains a quota on beef imports, set at 58,400 tonnes high quality beef in fiscal 1987. South Korea has banned beef imports but there are indications Seoul may bow to U.S. pressure and allow some imports soon, industry officials said. In testimony today, Tom Cook, director of industry affairs for the National Cattlemens Association said "the Congress, administration and the industry must take a strong, tough and united stand to impress the Japanese that we mean business and that we expect them to open their markets."
South Africa's total gold and foreign assets rose by 700 mln rand in February to 6.2 billion rand after rising by almost one billion rand in January, Reserve Bank Governor Gerhard de Kock said. De Kock, interviewed on state-run television, gave no breakdown of the reserves. He also said that to curb inflation, salary increases would have to be below the inflation rate. The state must set an example by keeping wage increases below the inflation rate, he said. Consumer prices rose by 16.1 pct in the year to January.
Whether the Soviet Union will fulfill its buying obligations under the U.S./USSR grains agreement depends entirely on the United States, a Soviet trade official told Reuters. "How can I tell that we are ready to fulfill the agreement if the United States does not want to offer us grain at competitive prices?" said Albert Melnikov, deputy trade representative of the Soviet Union to the United States. "We are in the market for grains, but it is up to the United States to be the seller ... to offer Soviets competitive prices," he said in an interview. Melnikov said that the United States has not lived up the agreement by failing to make available to Moscow U.S. grain at prevailing market prices. "We are being accused of not implementing this agreement. We do not consider we are at fault," Melnikov said. Article I in the agreement states that "purchases/sales of commodities under this Agreement will be made at the market price prevailing for these products at the time of purchase/sale and in accordance with normal commercial terms." "The United States should supply to the Soviet Union definite quantities of grain at competitive prices ... Is the United States ready to supply this?" he said. The Soviet official said that near-term corn demand has been met by the recent Soviet purchases of U.S. corn, which he confirmed at 1.5 mln tonnes, but said that if U.S. corn prices remain competitive, the Soviets will buy more if they need it. Wheat buying, however, is a different story, Melnikov said. "If the United States is interested in selling its wheat, then they must offer competitive prices, and it's up to the United States to decide how these competitive prices will be offered," he said. Last year's U.S. offer of subsidized wheat to the Soviets was rejected because of an insufficient subsidy, Melnikov said. He said that at the time of the 13 dlr per tonne subsidy offer, U.S. wheat prices were 26 dlrs over world levels.
The directors of the American Farm Bureau, the nation's largest farm organization, voted Tuesday to urge Congress to leave the 1985 farm bill in place without alterations. "We are solidly opposed to opening up the 1985 farm bill," said Dean Kleckner, president. "The current farm bill has been in place for just a little over a year and in our judgment there is more to be gained at the present time from maintaining the legislation. "Several independent studies ... indicate the 1985 farm bill is better on balance than any of the alternatives being advanced," Kleckner said. The Farm Bureau also urged Agriculture Secretary Richard Lyng to adjust the loan rate for 1987 crop soybeans as much as he deems possible under the farm bill to keep soybeans competitive in the world market. A Farm Bureau proposal suggests that producers should be eligible for supplemental payments in the form of PIK certificates for the difference between 5.02 dlrs a bushel and the new loan rate. The organization also urged Lyng to authorize deficiency payments to farmers who were unable to plant 1987 winter wheat because of adverse weather.
Browning-Ferris Industires Inc said its board declared a two-for-one stock split payable April 24 to holders of record March 31.
Qtly dividend 22 cts vs 22 cts Pay April 30 Record April 10
U.S. Trade Representative Clayton Yeutter said he plans a July trip to China to discuss trade issues including China's admission to the General Agreements on Tariffs and Trade. Yeutter told a congressional hearing it was possible China could be a member of GATT before the end of the year. "They are making major moves to becoming a full scale member of the world economy," he told the House Appropriations subcommittee which oversees his agency's budget. Depending on how the negotiations go on the terms of China's GATT membership, Yeutter said he could put the final touches on the U.S. part of the agreement during his trip. The admission of China to GATT, which is the multinational group of nations which negotiates international rules on trade, would offer both potential export markets and potential competition for U.S. industries, he said. "That has a lot of potential as well as risks for U.S. business," Yeutter said. "I think China will develop into a fine market for us," he added.
Israel will tender overnight for 33,000 long tons of U.S. sorghum and/or 22,000 long tons of U.S. corn for April shipment, private export sources said.
A meeting among government agencies today reaffirmed the strong opposition of the United States to a proposed new tax on vegetable oils and fats in the European Community, U.S. trade officials said. Representatives of the major government agencies agreed at a trade policy review group meeting, which includes officials of the deputy secretary rank, to continue diplomatic pressure on EC member states. "We (all agencies) are together on this," said one U.S. trade official. One source said the U.S. would continue to make clear to member states and to the EC commission that if Brussels proceeds with the vegetable oils tax "there will be a great cost." U.S. officials said no formal list of European products on which the U.S. might retaliate, has yet been drawn up. "I don't think we're at that point yet," said one trade official, adding that the EC has only begun deliberations on its farm price package. Suzanne Early, assistant trade representative, told Reuters the interagency meeting was to discuss U.S. strategy on the vegetable oils issue. Asked about retaliation, she said "sometimes its better not to be specific." U.S. trade representative Clayton Yeutter Monday warned another major transatlantic trade row will develop if the EC proceeds with the vegetable oils tax.
Abnormally warm and dry weather over most parts of China is seriously affecting crops, the New China News Agency said. It said the drought has made rice planting difficult in eight provinces, including Guangxi, Sichuan and Hunan. Plant diseases and insect pests have increased in wheat-producing areas, it said. The agency said some areas of Guangxi, Hubei, Shanxi and other provinces have been suffering a drought for more than seven months. The agency said the dry weather had reduced the amount of water stored by more than 20 pct compared with last March, lowered the water level of many rivers, reduced hydroelectric power supplies and caused water shortages for industry and consumers. The upper reaches of the Yangtze are at their lowest levels in a century, causing many ships to run aground and making harbour manoeuvres difficult, it said. The drought has also increased the number of forest fires. More than 1,000 fires in southern China had destroyed 13,340 hectares of forest by mid-February, it said.
Australian wheat shipments rose to 1.33 mln tonnes in February from 1.01 mln in January, an Australian Wheat Board official said. February's shipments were down on the 1.54 mln tonnes shipped in February 1986. Cumulative shipments for the first five months of the October/September wheat year were 6.12 mln tonnes, as against 6.54 mln a year earlier, the official said. The major destinations in February were: China (419,196 tonnes), Egypt (301,909), Iraq (142,055), Japan (110,261), South Korea (100,847) and the Soviet Union (100,056 tonnes).
Traded volumes for U.K. Grain and potato futures in February were down on the previous month while pigmeat and pig cash settlement futures were higher, official figures show. Combined wheat and barley futures trade declined to 892,700 tonnes from 1.19 mln in January, and the value fell to 97 mln stg from 129 mln, Grain and Feed Trade Association (GAFTA) figures show. A total of 984,960 tonnes were registered for main crop potato futures in February valued at 157 mln stg, versus 992,760 and 164 mln stg in January. Soymeal futures trade totalled 76,340 tonnes against 90,680 in January, and value declined to nine mln stg from 10 mln. Nine pigmeat contracts were traded in February, six more than in the previous month, representing 450 carcases against 150, valued at 29,347 stg against 9,847 stg. Pig cash settlement futures saw 201 contracts traded, against 19 in January, and the value rose to 659,864 stg from 119,610 stg.
The Bundesbank left credit policies unchanged after today's regular meeting of its council, a spokesman said in answer to enquiries. The West German discount rate remains at 3.0 pct, and the Lombard emergency financing rate at 5.0 pct.
Egypt's Central Bank today set the dollar rate for commercial banks for March 6 at 1.373/87 dollars, unchanged from the previous rate.
The Commodity Credit Corporation, CCC, has accepted bids for export bonuses to cover sales of 25,000 tonnes of wheat flour to Iraq, the U.S. Agriculture Department said. The department said the bonuses awarded averaged 116.84 dlrs per tonne. The shipment periods are March 15-April 20 (12,500 tonnes) and April 1-May 5 (12,500 tonnes). The bonus awards were made to Peavey Company and will be paid in the form of commodities from CCC stocks, it said. An additional 175,000 tonnes of wheat flour are still available to Iraq under the Export Enhancement Program initative announced January 7, 1987, the department said.
The Commodity Credit Corporation, CCC, has accepted a bid for an export bonus to cover a sale of 2,000 tonnes of semolina to Egypt, the U.S. Agriculture Department said. The department said the bonus was 233.91 dlrs per tonne and was made to International Multifoods Corp. The bonus will be paid in the form of commodities from CCC stocks. The semolina is for shipment during June 1987, it said. An additional 13,000 tonnes of semolina are still available to Egypt under the Export Enhancement Program initiative announced on August 6, 1986, it said.
The
The Bank of England said it had given the money market 206 mln stg of assistance this afternoon and offered the discount houses borrowing facilities to take out the rest of the 1.10 billion stg shortage, revised down from an initial 1.15 billion estimate. It made no alteration to its established dealing rates, buying 95 mln stg of band one bank bills at 10-7/8 pct and 111 mln of band two bank bills at 10-13/16 pct. This brings the Bank's total assistance so far today to 243 mln stg.
French operators have requested licences to export 40,000 tonnes of free market feed wheat, 32,500 tonnes of soft bread wheat, 375,000 tonnes of barley and 465,000 tonnes of maize at today's European Community tender, trade sources here said. Rebates requested ranged between 134 and 136.50 European currency units (Ecus) a tonne for the feed wheat, 137.39 and 141.50 Ecus a tonne for the bread wheat, 137.93 and 142.95 Ecus for the barley and 133.75 and 140.25 Ecus for the maize.
Mannesmann AG
Western Canada's resource-based economy is being hurt by international market forces and there is little Ottawa can do about it, Finance Minister Michael Wilson said. "If you can tell me how we can get the international energy price up and how we can get the price for copper up and how we can get the price for wheat up, then we will listen," Wilson told the House of Comnons Finance Committee. Although under pressure from oil companies and wheat farmers for help in battling depressed commodity prices, Wilson said it has to be recognized the area was a "prisoner of market forces outside the boundaries of this country." Wilson, appearing before the committee to discuss the government's spending estimates released earlier this week, said the government is doing what it can in the region, citing more than 3.5 billion dlrs in aid for western agriculture. "Those resources are a reflection of very real concerns on our part in dealing with a very difficult problem," Wilson said in response to questions about management of the economy from opposition party members. He said the long term answer for depressed regions of the country was reaching a free trade pact with the United States, which he claimed would improve the outlook for Western Canada.
U.S. Agriculture Secretary Richard Lyng does not intend to discuss a wheat export enhancement initiative to the Soviet Union at a cabinet-level Economic Policy Council meeting set for tomorrow, an aide to Lyng said. "He (Lyng) does not intend to bring it up," the aide said, adding that the subsidy offer remains "dormant." Lyng plans to spend "about five minutes" reviewing the status of farm legislation on Capitol Hill before the Economic Policy Council, which is responsible for guiding the administration's economic policy, the aide said. The USDA secretary met this morning with members of the House Foreign Affairs Committee, but the handful of lawmakers present did not ask whether the administration intended to offer Moscow a wheat export bonus, the aide said.
General Refractories Co said it agreed to sell its European refractories and building products operations for about 62 mln dlrs to an Austrian investor group. The European operations had sales of 186 mln dlrs in 1985, the last year for which results have been released, the company said. The sale, to a group headed by Girozentrale Bank of Austria, is subject to shareholder approval by April 24, 1987, it said. Its board has approved the deal, it said. General Refractories' mineral operations are not affected.
French cereal exports through the port of Rouen fell 6.4 pct to 725,023 tonnes during the period February 1 to 25, from 774,704 for the period February 1 to 26 last year, trade sources said. Main destinations were Saudi Arabia with 158,109 tonnes of barley, the Soviet Union 147,214 of wheat, Italy 104,704 of wheat, Spain 91,381 of wheat and maize, China 52,500 of wheat and Algeria 41,000 of wheat. Between February 26 and today, five ships have loaded 137,000 tonnes of cereals, the sources added. The 137,000 tonnes comprised 59,500 tonnes of wheat for China, 53,000 of wheat for the Soviet Union and 24,500 of wheat for Algeria. By this Friday, sources estimated a further 233,600 tonnes of cereals will have been loaded, comprising 47,000 tonnes of barley, 78,600 of wheat and 25,000 of rapeseed for the Soviet Union, 30,000 of wheat for Sri Lanka, 28,000 of wheat for China and 25,000 of wheat for Poland.
The European Community's cereal management committee rejected all bids to export free market soft wheat at today's weekly tender, traders said. The committee awarded 123,000 tonnes of free market barley export licences at a maximum export refund of 138.75 Ecus per tonne.
Oper shr 57 cts vs 73 cts Oper net 6,051,000 vs 7,818,000 Revs 50.0 mln vs 56.0 mln Year Oper shr 1.06 dlrs vs 1.24 dlrs Oper net 11,301,000 vs 13,203,000 Revs 171.9 mln vs 207.4 mln NOTE: Current oper net excludes extraordinary income of 180,000 dlrs in qtr and 1,119,000 dlrs in year vs previous losses of 2,345,000 dlrs and 515,000 dlrs, respectively.
The EC Commission rejected all bids for free market bread-making and feed wheat and all bids for the special West German tender at today's weekly EC cereals tender, trade sources said here. It granted export licences for 123,000 tonnes of free market barley at a maximum rebate of 138.75 Ecus per tonne and 25,000 tonnes of maize at a maximum rebate of 133.75 Ecus, they said. Licences for 100,000 tonnes of the barley were awarded to French trade houses, they added.
World grain trade could be turning the corner and heading toward recovery in the 1986-87 season, a Cargill, Inc. analyst said. Writing in the March issue of the Cargill Bulletin, David Rogers of Cargill's Commodity Marketing Division cited a gradual rise in world wheat trade in recent months, with a slow rise in wheat prices after recent historic lows. He said the wheat trade, because wheat can be produced in many nations, is a good barometer of world grain trade and could lead to more activity in other grain markets. Rogers said that with world grain prices at their lowest level in over a quarter of a century in real terms, demand has begun to rise while producing nations are re-examining their expensive price-support policies and reducing planted acres.
Shr 42 cts vs 1.21 dlrs Net 2,317,000 vs 5,847,000 Sales 360.0 mln vs 282.4 mln Avg shrs 5,463,000 vs 4,829,000 NOTE: 1986 net includes 4,700,000 dlr pretax charge from writedown of land and abandonment of land and pretax charges of 5,800,00 dlrs from pending rescission offer, settlements with U.S. agencies, adjustment of the prior booking of residuals arising from collateralized mortgage obligation bond issues, writedowns of land held by a joint venture, startup costs associated with entering new markets, an increase in reserves for customer service and writeoffs and reserves for mortgage-related receivables to reflect current market values.
Shr 12 cts vs 34 cts Net 787,000 vs 2,250,000 Revs 23.6 mln vs 23.6 mln Nine mths Shr 70 cts vs 1.06 dlrs Net 4,598,000 vs 6,974,000 Revs 73.1 mln vs 73.6 mln NOTE: Share adjusted for three-for-two stock split in December 1986.
SafeCard Services Inc said its board declared a three-for-two stock split and is maintaining the quarterly dividend on post-split shares at the same six cts it now pays for an effective 50 pct increase. Both the split and the dividend are payable April 30 to holders of record March 31.
Unicorp American Corp said it has signed a definitive agreement for the previously-announced acquisition of Lincoln Savings Bank. The company said the transaction is still subject to regulatory approvals.
Bishop Graphics Inc
said it completed the sale of its Newport Beach Art Supply
Center to Standard Brands Paint Co's
Shr 40 cts vs 25 cts Net 1,369,602 vs 628,193 Revs 12.5 mln vs 4,909,369 Avg shrs 3,460,217 vs 2,610,913 Year Shr 97 cts vs 54 cts Net 2,952,830 vs 1,414,369 Revs 37.0 mln vs 13.5 mln Avg shr 3,031,494 vs 2,609,313 Note: Prior qtr and year per share figures restated for 10 pct stock dividend of December 1986.
Oper shr profit 14 cts vs loss 31 cts Oper net profit 374,000 vs loss 707,000 Revs 19.1 mln vs 15.5 mln Avg shrs 2,610,000 vs 2,560,000 Year Oper shr profit 20 cts vs loss 69 cts Oper net profit 530,000 vs loss 1,376,000 Revs 69.1 mln vs 64.3 mln Avg shrs 2,603,000 vs 2,565,000 NOTE: Excludes gain of 309,000 dlrs vs loss 72,000 dlrs in qtr and gains of 458,000 dlrs vs 23,000 dlrs in year from tax loss carryforwards. Includes gains of 76,000 dlrs and 378,000 dlrs in 1985 qtr and year, respectively.
A House Agriculture Committee meeting later today to draft a disaster aid bill is expected to spark a debate between lawmakers who want to expand the 0/92, or "de-coupling," provision to cover feedgrains, and those who oppose 0/92 or want it severely limited, Congressional sources said. The disaster aid bill as it now stands calls for a one-year 0/92 pilot program for 1987 crop wheat and the 1988 winter wheat crop. The bill would allow farmers to forego planting and still receive 92 pct of deficiency payments. The administration has strongly urged that the bill be expanded to feedgrains and to more than one year. It is difficult to tell in what form the 0/92 provision will emerge from the committee, the sources said. Proponents of an expansion of 0/92 maintain there are large estimated cost savings of such a bill -- ranging from estimates by the administration of 200 to 500 mln dlrs. Opposition to a reopening of the 1985 farm bill at this time is the major reason cited by those against an expansion of the bill, committee staffers said. The 0/92 plan is scheduled to be discussed at 1530 EST. A conflicting floor vote delayed the start of the meeting, and staffers said it may have to be delayed even until next week. Such a delay would not bode well for proponents of an expanded 0/92 program, since spring planting in many areas of the country will be underway in the next few weeks and signup for the 1987 wheat and feedgrains program ends March 30. Farmers are now making their planting decisions, so something has to be done quickly if a 0/92 program is to be implemented, an Agriculture Department source said. An expansion of 0/92 to feedgrains was opposed in last week's subcommittee hearing on the bill, with subcommittee chairman Dan Glickman, D-Kan., saying that more study of the consequences of decoupling on feedgrains plantings was necessary. Major commodity groups, including the National Corn Growers, the American Farm Bureau and the National Cattlemen's Association, have voiced strong opposition to 0/92. But proponents of an expanded 0/92 argue that the bill currently is not equitable for all grains producers, so it should be extended to other crops. There will be difficulty in limiting 0/92 to wheat, said Gene Moos, aide to house majority leader Tom Foley, D-Wash. Projected cost savings, in the current atmosphere of try to decrease farm expenditures, would also be hard to ignore in the debate to expand the 0/92 application, Moos said. Rep. Charles Stenholm, D-Tex., may be planning to introduce a bill to restrict 0/92 to only 1987 crop wheat, with the argument that now is not the time to vote in favor of any major changes in the farm bill. "Stenholm's bill is not a rejection of 0/92, only of the timing," a congressional staff member said. Rep. Arland Stangeland (R-Minn.) is reported to have an amendment to expand the 0/92 provision to 1987 and 1988 feedgrains.
Oper shr 52 cts vs 51 cts Oper net 626,013 vs 613,127 Sales 4,544,929 vs 4,402,572 NOTE: Earnings exclude extraordinary securities loss of 29,532 dlrs, or two cts a share vs a gain of 81,358 dlrs, or seven cts a share
China has added 90,000 tonnes of U.S. wheat to its purchases for delivery in the 1987/88 season and cancelled 30,000 tonnes of wheat purchases for delivery in the 1986/87 season, the U.S. Agriculture Department said. According to the department's Export Sales Report covering transactions in the week ended February 26, China has outstanding wheat commitments for the 1986/87 season of 30,000 tonnes and 420,000 tonnes for delivery in the 1987/88 season. The wheat season begins June 1. China has total corn commitments for 1986/87 of 1,011,200 tonnes and soybeans commitments of 157,500 tonnes. The season for corn and soybeans began September 1.
Oper shr 1.18 dlrs vs 58 cts Oper net 2,266,000 vs 1,037,000 Revs 45.8 mln vs 41.4 mln Avg shrs 1,924,000 vs 1,800,000 NOTE: Excludes gain of 73,000 dlrs vs 290,000 dlrs from benefit of tax loss carryforward. Results for Tel Aviv, Israel-based company translated at rate of one dlr to 1.485 new Israeli shekels.
FFB Corp, parent of the First Federal Bank of Connecticut FSB, said it declared an initial quarterly dividend of five cts per share. The company said the dividend is payable March 31 to holders of record March 17.
Evans and Sutherland Computer Corp said it filed with the Securities and Exchange Commission a registration statement covering a 50 mln dlr issue of convertible subordinated debentures due 2012. Proceeds will be used for working capital, Evans and Sutherland said. The company named Hambrecht and Quist Inc as lead underwriter of the offering.
A House Agriculture Committee meeting to draft a disaster aid bill containing a controversial 0/92 provision has been postponed until next Tuesday, committee staff members announced. The bill contains a provision implementing a 0/92 acreage reduction plan for 1986 wheat and 1987 winter wheat, thereby making payments available to farmers who were not able to plant last year's winter wheat crop because of flooding. Controversy exists over whether the 0/92 provisions of the bill should be expanded, cut back or left as is.
Shr loss 28 cts vs loss 29 cts Net loss 584,100 vs loss 459,500 Sales 1,339,800 vs 1,6390,800 Year Shr loss 64 cts vs loss 79 cts Net loss 1,314,700 vs loss 1,237,100 Sales 7,249,600 vs 6,311,500
The U.S. Treasury repeated a White House statement that only President Reagan and Treasury Secretary James Baker are authorized to speak on the dollar. A Department spokesman was commenting on remarks by Commerce Department Under-Secretary Robert Ortner that the yen was undervalued 10 or 15 pct against the dollar but European currencies were fairly priced against the U.S. currency. "As Larry Speakes said on January 14 this year, only two people in this administration are authorized to speak on the dollar and that is the president and the secretary of the treasury," the spokesman told Reuters.
Corn sales gained 2,494,900 tonnes in the week ended February 26, the highest weekly total since August 1984 and two and three-quarter times the prior week's level, the U.S. Agriculture Department said. In comments on its Export Sales Report, the department said sales of 1.0 mln tonnes to the USSR -- previously reported under the daily reporting system -- were the first sales for delivery to the USSR under the fourth year of the U.S.-USSR Grains Supply Agreement, which began October 1. Japan added 689,700 tonnes to previous purchases and sales to unknown destinations rose by 429,800 tonnes. Wheat sales of 362,400 tonnes for the current season and 151,000 for the 1987/88 season were down by more than half from the previous week's combined sales, it said. Egypt, Japan and Iraq were the major wheat buyers for delivery in the current year, while sales to China decreased by 30,000 tonnes for the current season, but increased by 90,000 tonnes for the 1987/88 season, which begins June 1. Net sales of soybeans totalling 274,200 tonnes equaled the preceding week, but were nearly a third below the four week average. Major increases were for Belgium, South Korea, Mexico and Italy, it said. Soybean cake and meal sales of 103,700 tonnes were 2-3/4 times the previous week's marketing year low, but six pct less than the four week average. Major increases for West Germany, Belgium, Spain, Italy and Australia were partially offset by declines to unknown destinations. Soybean oil sales of 5,400 tonnes were the result of increases for Venezuela and reductions of 500 tonnes for unknown destinations. Combined sales activity in cotton of 75,200 running bales -- 44,700 bales for the current year and 30,500 bales for the 1987/88 bales -- were 56 pct below the prior week's good showing, the department said. Major purchasers for the current season were South Korea, Japan, Taiwan and Thailand, while South Korea and Indonesia were the major buyers for the 1987/88 season, which begins August 1.
Moody's Investors Service Inc said it may downgrade Duquesne Light Co's two billion dlrs of debt. Moody's said it would assess the likely financial consequences of the 19 mln dlr rate reduction ordered today by the Pennsylvania Public Utility Commission. The unexpected order raises significant doubts about the quality of Duquesne's regulatory support and financial prospects. The Commission's determination that Perry Unit 1's power is not needed could depress Duquesne's earnings and cash flow well into the future. Duqusne has Baa-1 senior debt and preferred stock and Baa-2 debentures and preference stock.
Shr loss four cts vs loss 34 cts Net loss 2,922,000 vs loss 19.9 mln Revs 4,071,000 vs 8,012,000 Year Shr loss 23 cts vs loss 79 cts Net loss 17.3 mln vs loss 46.2 mln Revs 22.4 mln vs 28.6 mln
Alpha Health Systems Corp, a
wholly-owned subsidiary of Pesch and Co, said it submitted a
merger proposal to the board of REPH Acquisition Co, the parent
company of Republic Health Corp, which is 64 pct owned by Pesch
interests.
The balance of REPH's common stock is owned by members of
Republic management, McDonnell Douglas Corp
ChemLawn Corp said its board rejected Waste Management Inc's 27 dlr-per-share tender offer and urged its shareholders not to tender their shares. ChemLawn said its board asked management and its financial advisor, Smith Barney, Harris Upham And Co Inc, to seek other purchasers of the company to maximize shareholder value. ChemLawn also said it adopted a shareholder rights plan, or "poison pill," during a 120-intermin safeguard period its board adopted to deter attempts to acquire the company through any means other than an all-cash tender offer while it seeks other purchasers. ChemLawn also said it began litigation against Waste Management in federal court in Columbus, seeking injunctive and other relief. The suit alleges, among other things, that certain Waste Management officers and directors purchased ChemLawn's stock before making the tender offer. ChemLawn claimed such purchases possibly violated the officers' fiduciary duties and the Securities and Exchange Commission's insider trading rules. Last week, Waste Management made a tender offer to acquire ChemLawn for 27 dlrs per share or 270 mln dlrs. ChemLawn said its board was determined that Waste's offer was inadequate and not in the best interest of shareholders, and could "adversely affect" the interests of its employees, suppliers, creditors, and customers. "Our board carefully reviewed Waste Management offer and concluded that it does not fully reflect the value of the company. We strongly urge our shareholders not to tender their shares to Waste Management," said Chairman L. Jack Van Fossen. ChemLawn said its rights plan is designed to protect shareholders against abusive tactics, such as "market accumulations by Waste Management or others." Under the plan, one comon stock purchase right will be distributed as a dividend on each outstanding share of ChemLawn common. ChemLawn said its rights holders can buy a share of its common for one dlr if any entity acquires 25 pct or more of its commmon, other than by an all cash tender offer for all its shares or an approved acquisition agreement by its board. It said the rights expire July three 1987, or 60 days after they become exercisable if later than that date. It said its board may redeem the rights for five cts per right any time prior to their exercise date. ChemLawn said the plan will not be triggered by purchases purusant to Waste Management's present tender offer. It said the dividend will be paid to shareholders of record March 20.
Brazilian Finance Minister Dilson Funaro will extend his international tour, flying to Japan for talks with government officials and representatives of banks to explain Brazil's decision to halt payment of part of its 109-billion dlrs foreign debt, Finance Ministry sources said. Funaro, who is in Rome today, will fly to Tokyo on Sunday, after having completed a week-long trip to the United States, France, England, Italy, West Germany and Switzerland. Brazil halted payment of interest rates on 68 billion dlrs owed to 700 private commercial foreign banks as part of an strategy to alleviate the burden of its commitments. Funaro, who is accompanied by Central Bank governor Francisco Gros, met only with government officials of the countries visited over the week. In Tokyo, however, he is due to meet private bankers, to whom Brazil owes some 6.8 billion dlrs, the sources said. He is due back in Brasilia next Wednesday, March 11, the sources added.
ConAgra Inc agreed to acquire Monfort of Colorado Inc in a stock transaction, both companies said. According to the letter of intent signed by the companies, ConAgra will acquire all of Monfort's 4.3 mln outstanding shares for 10.75 mln of its own shares. Based on ConAgra's closing price of 34 dlrs today, the transaction is worth about 356.5 mln dlrs. The merger is expected to be completed in June, they said. The companies said the acquisition will result in a restatement of ConAgra's earnings for the fiscal year ending May 31, but the restatement is not expected to materially change the previously reported, or upcoming, fiscal year-end earnings. In fiscal 1986, ConAgra had net income of 105.3 mln dlrs on sales of 5.9 billion dlrs. For its fiscal year ending August 1986, Monfort reported 25.1 mln dlrs in earnings on sales of 1.6 billion dlrs. The company is one of the largest lamb and beef producers in the U.S., producing, transporting and selling the products domestically and internationally.
Key members of the House Agriculture committee have agreed to scale-back the 0/92 provision of a pending disaster aid bill to cover only 1987 crop wheat, but a broader 0/92 proposal is likely to be resurrected later, Congressional sources said. The sources said key lawmakers including Reps. Glenn English (D-Okla.), and Dan Glickman (D-Kan.) agreed to support an amendment to be offered next week by Rep. Charles Stenholm (D-Tex.) which would limit 0/92 only to producers of 1987 crop winter and spring wheat. This would scale-back the 0/92 provision to the original proposal by English allowing a pilot 0/92 program for 1987 wheat only. That provision was later broadened by the subcommittee to include 1988 crop winter wheat. Under 0/92, a farmer can forego planting a crop but still collect 92 pct of deficiency payments. Earlier today, the House Agriculture committee postponed until next Tuesday a meeting to consider the disaster aid bill and 0/92. The agreement to limit 0/92 to a wheat pilot program follows vocal criticism of the proposal by some influential farm groups who are concerned about the major impact of 0/92, and by members of Congress wary of reopening the farm bill. Congressional sources said there has not been enough time to study the implications of a broad 0/92. "The timing (of the proposal) is off," said one aide to a House Agriculture committee member. However, several Congressional sources said they expect a broader 0/92 provision to emerge again when the House Agriculture committee is faced next month with the need to make spending cuts in the agriculture budget for fiscal 1988 as part of an overall deficit reduction package. Gene Moos, aide to House Majority leader Tom Foley (D-Wash.), predicted agriculture's share of budget cuts may exceed one billion dlrs. A broader 0/92 might be resurrected later because both the Congressional Budget Office and the Reagan administration estimate it would result in significant budget savings. A U.S. Agriculture Department official said 0/92 for all 1987 crops would save 300 to 400 mln dlrs and more than 1.5 billion dlrs over five years. Another factor which could affect the 0/92 debate is the approach of planting season, Congressional sources said. Some officials said it already is late for implementation of a 0/92 in 1987 because farm program signup ends March 31 for wheat and feedgrains. If Congress approved 0/92 later in the year sign-up either would have to be extended or reopened, sources said.
Brazil's recent announcement of a suspension in interest payments on 68 billion dlrs of foreign debt gave the banking system the jitters and confirmed views among many international economists and commodities analysts that Brazil will continue to flex its trading muscles in 1987. The developing world's most indebted nation is also its most prolific exporter of agricultural commodities such as coffee and soybeans, and might maximize foreign exchange revenue by selling hard on world markets, economists said. "That sounds like a reasonable strategy. But there is no way they can trade their way out of this situation," Aldo Roldan, Vice President for International Services at Chase Econometrics, said. Roldan told Reuters that Brazil not only had to tackle the problems of satisfying domestic demand and competing on glutted world markets, but also had to work to make its position on foreign exchange markets more profitable. "Domestic costs have increased (due to inflation) and exporters have not had the same offsetting movement in exchange rates," Roldan said. The Chase economist also said commodities markets were depressed and generally did not appear very promising for a country like Brazil, where pure commodities account for some 50 pct of exports and in 1986 had a total value of around 23 billion dlrs. But he added: "They are always pretty aggressive and they have good foreign marketing channels." Analysts said a key factor in Brazilian trade will be coffee, and even without background pressure from foreign creditors the world's largest producer was expected to hit the market this year with a vengeance. Negotiations between International Coffee Organization (ICO) members to re-establish producer export quotas broke up earlier this week with major producers and consumers accusing each other of intransigence. "Brazil would not tolerate a change in ICO regulations, which others wanted changed," one senior coffee dealer said. The dealer, who declined to be named, said Brazil wanted to preserve its market share. At the end of the talks, he said Brazil hinted it could sell more than anyone else and others would suffer. Brazil will be an aggressive seller under any scenario but as yet there is no sign of unusually heavy Brazilian sales, the dealer said. "If they do come into the market at this level it will go lower and you could breach a dollar, ninety or eighty cents," he said. New York coffee futures for May delivery settled 2.29 cents lower Thursday at 104.68 cents a lb, while more distant deliveries fell the six-cent maximum trading limit. President of the Brazilian Coffee Institute, Jorio Dauster told a press conference in Rio de Janeiro today that Brazil has no set target for its coffee exports following the breakdown of the ICO talks on export quotas. Many economists and analysts believe soybeans could be the focus of possible stepped-up Brazilian marketing efforts. "They will be more aggressive this year than they have ever been," according to Richard Loewy, analyst for Prudential-Bache Securities Inc. Loewy believes the foreign debt problem, a good crop, plus difficulties with storage would help motivate selling of the Brazil soybean crop. "Brazilian farmers also need cash flow and they can't afford to store the crops," he said. The Chicago soybean complex has been nervous for some time about large South American crops developing under near ideal conditions towards record yields. "We are going to see a very rapid decline, earlier than usual, this year in our (U.S.) exports," Loewy said. Tommy Eshleman, economist for the American Soybean Association (ASA), said this year's Brazilian soybean harvest could total 18 mln tonnes, versus 13.7 mln last year. Marketings will be very aggressive this summer when prices are usually high relative to the rest of the year due to the vulnerability of the U.S. crop to bad growing weather. Another incentive to sell might be trade anticipation of a reduction in the U.S. government soybean loan rate, offered to farmers who give crops as collateral, Eshleman said. He said there has been some uncertainty this year about the soybean loan rate, which acts as an effective floor for prices by keeping supplies away from the free market. Farmers can forfeit their beans to the government rather than repay the loan. "We're getting into a period when they (Brazil) are starting to harvest and starting to export," Eshleman said. But he added it will be a while before U.S. exports fall to below 10 mln bushels a week from around 20 mln bushels currently. Jose Melicias from the research department of Drexel Burnham Lambert said Brazil would be trying to export as much as it can this year because of its economic situation. He said the debt situation was a major consideration. "The Brazilian government also does not have enough money to pay for storage," he added. Asked if a return to an inflationary environment in Brazil would make farmers inclined to hold onto crops, Melicias said it would not make a big difference. On other commodity markets, Brazil's selling impact may be muted no matter its need to generate capital. Brazil is faced with a poor 1986/87 sugar harvest, which could limit exports to the world market, analysts said. The country may have oversold and be unable to honor export commitments, and this plus higher domestic demand caused by consumer price subsidies on ethanol and refined sugar, will give it little room to stretch exports, they said. Brazil's other major crop, cocoa, is in its third year of surplus. "Cocoa consumption is basically flat and last year it fell, so I don't think they can start throwing out cocoa and find many more markets for it," one analyst said. "If they come out as aggressive sellers, the market would collapse and they can't afford to do that," she added.
A majority of the Senate Agriculture Committee urged President Reagan to reverse his opposition to export subsidies to the Soviet Union as a way to get its negotiators to purchase some 500 mln dlrs in American wheat. The group, led by committee chairman Patrick Leahy, a Vermont Democrat, urged Reagan to step up negotiations with the Soviet Union by providing export subsidies to help U.S. farmers.
Trade between Argentina and Brazil jumped 90 pct in 1986 versus 1985, Foreign Minister Dante Caputo said. Speaking to reporters, Caputo said the near doubling in trade showed the "tangible and immediate results" of a wide- ranging economic integration accord signed by the presidents of both countries last July. He said trade last year totalled 1.3 billion dlrs versus 700 mln dlrs in 1985. The accord provided for capital goods trade between the two countries to rise to 2.0 billion dlrs over four years. Argentine wheat exports to Brazil will increase from 1,375,000 tonnes in 1987 to 2.0 mln tonnes in 1991, the accord said.
Shearson Lehman Brothers Inc, the
brokerage subsidiary of American Express Co
Trans World Airlines Inc said it filed
suit in Delaware Chancery Court against USAir Group Inc and its
board of directors seeking to invalidate its "poison pill"
anti-takeover plan.
TWA vice president and general counsel Mark Buckstein said
TWA also sought a declaratory judgement from the court that its
52 dlr per share takeover offer for USAir would in no way
interfer with USAir's possible buyout of Peidmont Aviation Inc
Shr loss 28 cts vs profit seven cts
Net loss 931,000 vs profit 7,000
Revs 2.3 mln vs 2.0 mln
Nine mths
Shr loss 55 cts vs profit seven cts
Net loss 1,619,000 vs profit 185,000
Revs 7.7 mln vs 7.1 mln
NOTE: Shr figures adjusted for issue of 600,000 shares in
October, 1986. Avg shrs not given.
Full name is
Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today's hog slaughter at about 300,000 to 305,000 head versus 292,000 week ago and 316,000 a year ago. Saturday's hog slaughter is guesstimated at about 30,000 to 55,000 head. Cattle slaughter is guesstimated at about 128,000 to 130,000 head versus 129,000 week ago and 119,000 a year ago. Saturday's cattle slaughter is guesstimated at about 20,000 to 40,000 head.
IMRE Corp said it has received commitments for a group of European institutions to buy about 400,000 IMRE shares for 2,500,000 dlrs, with closing expected on March 16.
Qtly div six cts vs six cts prior Pay April One Record March 20
Semi-annual div 7-1/2 cts vs five cts Pay April nine Record March 26
Pace Membership Warehouse Inc said it made a series of recent purchases of its 13 pct subordinated notes totaling about 13.6 mln dlrs. It said the amount of notes originally issued totaled 60 mln dlrs. Pace also said it may purchase additional outstanding notes in the future.
Dome Petroleum Ltd's 23.2 pct stake of
gold producer Dome Mines Ltd continues to be for sale "at the
right price," spokesman David Annesley said in response to an
inquiry.
Reaffirming remarks made last year by chairman Howard
Macdonald, Annesley said the company is considering selling its
stake in Dome Mines.
Concerning Dome Petroleum's 42 pct stake in
The failure of International Coffee Organization talks on the reintroduction of quotas has paralysed business on the Hamburg green coffee market in the past week, trade sources said. There was only sporadic activity for spot material, which was mainly requirement buying, they said, adding that pre-registered coffees were no longer available. They said they expected Brazil and Colombia to open export registrations for May shipment next week. However, the president of the Brazilian Coffee Institute, Jorio Dauster, said yesterday he had not yet decided when its registrations would reopen.
Southwest Forest Industries said it and Stone Container Corp have complied with all federal waiting period requirements for Stone's proposed 32.25 dlr per share cash acquisition of Southwest. Southwest currently has 12.3 mln shares outstanding. The companies entered into a merger agreement on January 27, and made their initial findings with the Department of Justice and the Federal Trade Commission on February three. Southwest said the waiting period expired on March 5, without receiving a formal second request for information. REUTER...^M
South Africa's director-general of finance Chris Stals said he was optimistic about reaching a mutually acceptable agreement with foreign bank creditors in debt renegotiation talks scheduled to begin next month. Stals, the country's chief foreign debt negotiator, said "we are busy finding out how they (banks) feel. They all have different opinions. There is no consensus." But asked if he was optimistic on agreement for a new debt repayment plan, Stals replied "yes" in a telephone interview from his Pretoria office. He declined to comment further before the major review of the interim debt agreement regarding the moratorium on principal repayments on 13 billion dlrs of South Africa's 24 billion dlr external debt. The agreement on the moratorium with some 330 creditor banks expires on June 30. "We have had a series of discussions with a great number of banks both bilaterally and individually on the foreign debt situation in preparation for April," Stals said. He said no date has been set for the meeting and declined to comment on published reports in the past few months that banks may demand accelerated repayments. Banking sources here said only an escalation of South African political unrest would increase foreign pressure on repayments. Finance Minister Barend du Plessis said last month that in the forthcoming talks South Africa would give a fair deal to all creditors but not agree to "unrealistic demands."
Momentum in th U.S. economy may be picking up given solid across-the board increases in the February U.S. employment report, economists said. U.S. non-farm payroll employment rose 337,000 in February, twice what the financial markets expected. This follows a 319,000 gain in January, revised down from a previously reported 448,000 increase. "Even if you look at January and February together, this is still a much stronger report than the consensus expectation in the market," said Allan Leslie of Discount Corporation. Economists stressed that gains in hours worked signal much larger gains in February U.S. production and income than previously forecast. The average work week rose 0.2 hours to 35.0 hours from 34.8 hours in January. The average manufacturing work week rose 0.3 hours to 41.2 hours, the longest factory work week since November 1966, the Commerce Department said. "The gains in manufacturing employment point to a very large increase in industrial production of between 0.5 and 0.7 pct," said Joe Carson of Chemical Bank. This compares to a 0.4 pct gain in January U.S. industrial production. Peter Greenbaum of Smith Barney Harris Upham and Co Inc noted that the average wage rate increased to 8.87 dlrs an hour in February from 8.83 dlrs in January. "Combined with the increase in hours worked, this means we'll get a pretty healthy gain in personal income vis-a-vis the wage and salary disbursement," he said. Greenbaum said that February U.S. personal income should rise at least 0.5 pct after being flat in January. He said the February employment gains are consistent with his firm's first quarter U.S. real gross national product growth forecast of 3.7 pct. Economists agreed that the employment data were negative for the credit markets in that they signal a healthier economy and no easing in the Federal Reserve's monetary policy. But most said that the market need not fear tighter policy either. "This report is another reason for the Fed to not consider easing," said Ray Stone of Merrill Lynch Capital Markets Inc. "It gives them more room to address the dollar situation," he said. "If they had to nudge policy tighter, they could do so, but it's most likely they'll sit and wait." "The data have not been uniform," Stone added. "Durable goods were weak in January and now employment is strong." In January, U.S. durable goods orders dropped 7.5 pct, followed by a 4.0 pct drop in U.S. factory goods orders. U.S. retail sales fell 5.8 pct, and the U.S. merchandise trade gap widened to 14.8 billion dlrs. "Things just aren't adding up," said Steve Slifer of Lehman Goverment Securities Inc. "Consumer spending, capital spending, goverment spending, and net exports data show very weak first quarter GNP growth of one pct," he said. "The employment and production data point to a big inventory build-up, but that's what we thought in the fourth quarter and we only got 1.3 pct GNP growth." Manufacturing employment gained 50,000 after falling 15,000 in January. Economists estimated that 30,000 of the gain was accounted for by striking workers in the steel and machinery industries returning to work. Even so, some economists said that the manufacturing gains have resulted from an improving trade outlook. Jason Benderly of Goldman, Sachs and Co noted that the U.S. trade picture improved in the fourth quarter as net exports grew at a 20 pct annual rate while the rate of increase in imports fell to only six pct, and that it continues to improve in the first quarter. "Not only the official statistics for the fourth quarter, but evidence of a pick up in orders from overseas for paper products, chemicals, high-tech goods, and capital goods show that trade is improving," Benderley said. "The economy is moving between extremes," he said. "Some reports are going to look bad and some good, but first quarter GNP is going to grow in the middle at about three pct." A 287,000 gain in services employment comprised the greater part of February's employment gain. Retail services employment rose 129,000 in February, compared to a gain of 117,000 in January, previously reported at 166,000. Construction employment rose a slim 2,000 in February. But this follows a robust 113,000 gain in January, revised down from a previously reported 142,000 gain. The U.S. civilian unemployment rate was unchanged in February at 6.7 pct. This means the jobless rate has stayed at 6.7 pct for three consecutive months, the lowest reading since March 1980, the Commerce Department noted. "The Federal Reserve has to be pleased with this report," Carson said. "This takes away the Fed's flexibility to ease, but there's no reason to tighten. It's way too early for that."
U.S. Treasury Secretary James Baker said he believes Brazil will strike an agreement with its private creditors. Answering questions from the National Newspaper Association, Baker said "Brazil is not defaulting on its debt," and pointed out its interest payments moratorium was called because of dwindling foreign reserves. He said that based on discussions with Brazilian officials here last week, he believed Brazil's approach to its problems was "nonconfrontational," adding, "We fully expect Brazil will work this out with its private creditors." Baker pointed out Brazil was paying in full and on time its debts to multilateral institutions, the U.S. government and other western creditor governments. The country has declared an interest payments moratorium on 68 billion dlrs of its 108 billion dlr foreign debt and frozen some 15 billion dlrs in trade and interbank deposits by commercial bank creditors at Brazilian institutions.
Monfort of Colorado Inc soared 21-1/2
to 75 in over-the-counter trading, responding to an
announcement late yesterday that the firm will be acquired by
Conagra Inc
The French primary bond market is showing signs of renewed effervescence after several weeks of lethargy and the trend is expected to continue if hopes of imminent interest rate cuts are fulfilled, market operators said. The Bank of France is generally expected to give a signal to the market, possibly at the beginning of next week, by announcing a quarter point cut in its intervention rate, which has stood at eight pct since January 2, or in its seven-day repurchase rate, set at 8-3/4 pct since January 5. The central bank's averaged-out day to day call money rate, the reference rate for interbank money market operators, which reached 8-3/4 pct on February 18 has fallen to 7-3/4 pct this week, dealers noted. The Bank of France's "open market" policy to regulate the money markets since December has been based on a floor and ceiling of rates within the limits of its intervention and seven day repurchase rates. For the moment the sentiment is of "wait and see" on rate cuts, but there are now more optimists than pessimists among market operators, a dealer for a major French bank said. Dealers said there is abundant liquidity on the bond market, noting that this week's monthly Treasury tap issue of 11.87 billion francs had a good reception and was fairly easily absorbed. The Treasury had set an upper limit on the issue of 12 billion francs and was likely to continue to try and sell as much paper as it could over coming months to meet its borrowing needs for this year of around 150 billion, one banker said. Dealers said there was no difficulty in placing liquidity in the primary market at the moment despite competition from the surge in investments on the Paris stock exchange. There has been a flood of large bond issues, but with formulas well adapted to market conditions and investor demand - with warrants or a mix of fixed and floating-rates - which have been snapped up, and with generally broadly negative fees. Dealers pointed to the recent Caisse d'Aide a l'Equipement des Collectivites Locales (CAECL) 8.90 pct two billion franc bond with warrants exchangeable for floating-rate bonds issued over 13 years and 80 days at 97.04 pct with payment date March 9, which was today quoted at -0.90 to -1.10 pct. Even classic fixed-rate issues, after being neglected since the end of last year, are finding buyers, one banker said. Dealers said that now the question was to see how the terms of imminent operations would be set, with great market interest focussed on the likely three next issues. These will include an expected four to five billion franc issue for Electricite de France, to be followed by a bond of around one billion francs for Auxiliaire du Credit Foncier, a subsidiary of the banking group Credit Foncier de France, and a new issue by tender from the mortgage agency Caisse de Refinancement Hypothecaire.
The investor group owning about 42 pct
of the outstanding capital stock of
Moody's Investors Service Inc said it may downgrade Service Merchandise Co's 300 mln dlrs of Ba-2 senior subordinated notes. The rating agency said it had anticipated that Service Merchandise would be able to achieve better operating results than it actually did in fiscal 1986. Moody's said it would assess future prospects for the company, as well as for the whole catalogue showroom industry. The agency will also examine the effects of recent acquisitions on Service Merchandise's operating results, financial structure and cash flow.
The U.S. National Association of Wheat Growers (NAWG) urged the Reagan administration offer the Soviet Union wheat under the export enhancement program (eep). In a letter to Agriculture Secretary Richard Lyng, NAWG stated its "strong support" for an eep offer to Moscow. "We believe that a solid case continues to exist for Soviet EEP eligibility, and the recently announced and reported Soviet purchases of U.S. corn indicate a Soviet willingness to purchase U.S. grain if it is competitively priced," NAWG said. "Consequently, we believe it is important to renew the U.S. eep offer and do all that is reasonably possible to ensure mutual adherence to the terms of the U.S.-Soviet grain agreement," the letter said.
The Reagan administration continues to debate whether to offer subsidized wheat to the Soviet Union, but would need assurances from the Soviets that they would buy the wheat before the subsidy offer would be made, a senior U.S. Agriculture Department official said. "I think it still is under active debate whether or not it would be advisable" to make an the export enhancement offer to the Soviets, Thomas Kay, administrator of the department's Foreign Agriculture Service, told Reuters. "We'd need some assurances from them (the Soviets) that they would buy if offered" the wheat under the subsidy plan, he said. Kay called reports that such an offer was imminent "premature." The Reagan administration's cabinet-level Economic Policy Council is set to meet today to discuss, among other matters, agricultural policy but is not expected to address a wheat subsidy offer to the Soviet Union, administration officials said earlier.
Dec 31 Shr loss one ct Net loss 176,639 Revs 150,300 NOTE: Company went public in April 1986.
SouthTrust Corp, a 5.1 billion dlr multibank holding company, said it entered into agreements to acquire four Florida banks with assets totalling more than 233.2 mln dlrs. Terms of the agreements were not disclosed. The four banks are: Central Bank of Volusia County, with assets of 59.3 mln dlrs, Bank of Pensacola with assets of 63.8 mln dlrs, and Vista Bank, which operates Vista Bank of Volusia County with assets of 37.8 mln dlrs and Vista Bank of Marion County with assets of 72.3 mln dlrs. It said the agreements are subject to regulatory approval.
Lloyds Bank Canada, a unit of
RJR Nabisco Inc filed with the Securities and Exchange Commission for a shelf offering of up to 500 mln dlrs of debt securities on terms to be set at the time of sale. The company said proceeds will be used for general corporate purposes including repurchases of RJR securities. Proceeds also may be used for working capital, reduction of short-term debt and capital expenditures, it said. Underwriters for the offering were not named in the draft prospectus.
Oper shr loss one ct vs loss 2.65 dlrs Oper net loss 100,000 vs loss 32.7 mln Revs 142.3 mln vs 168.8 mln 12 mths Oper shr profit 57 cts vs loss 2.76 dlrs Oper net profit 7,072,000 vs loss 34.2 mln Revs 544.0 mln vs 572.2 mln Note: 1986 oper net excludes tax credits of 2,149,000 dlrs for qtr and 2,200,000 dlrs for 12 mths. Includes restructuring charges of 120 mln dlrs for qtr, 527 mln dlrs for 12 mths.
U.S. Agriculture Secretary Richard Lyng said no decisions were taken today at a White House Economic Policy Council meeting. Speaking to reporters on his return from the meeting, Lyng said only about five minutes of the session dealt with agriculture issues. "It was not a decision making meeting," Lyng said. Aides to Lyng earlier said the administration's agriculture legislative proposals would be the farm-related topic on the agenda. Lyng would not comment on what farm issues were discussed. Asked how he would respond to farm groups and Congressmen urging the U.S. to offer a wheat bonus to the Soviet Union, Lyng said he would be listen but be "non-committal."
Advocates of a 0/92 plan for feedgrains will likely delay offering their proposals if a disaster aid bill before the House Agriculture Committee is scaled back to include only 1987 winter wheat, congressional sources said. The disaster aid bill, introduced by Rep. Glenn English (D-Okla.), sparked sharp controversy with its proposals to implement a 0/92 program for 1987 wheat and 1988 winter wheat. An agreement has been reached to trim the bill back to 1987 wheat, but supporters of a 0/92 feedgrains plan said even that scaled-down version would not be equitable for farmers. Unless the English bill pertains only to 1987 winter wheat, it is more than a simple disaster payment and feedgrains should be treated equally, they said. If the bill is narrowed to just winter wheat, then supporters of a 0/92 feedgrains amendment will probably not offer their proposals next week, sources said. English has agreed to support an amendment by Rep. Charles Stenholm (R-Tex) to narrow the bill to 1987 wheat only, but whether he would also back a further reduction is unclear. Agricultural aides to English said the congressman's first choice is to make the option available to all 1987 wheat farmers. However, if the political reality is that disaster aid for winter wheat farmers would be unavailable because of controversy over spring wheat, then English might consider an even greater cutback in the bill, they said. Under a 0/92 plan, farmers could forego planting and still receive 92 pct of deficiency payments. Rep. Arlan Stangeland (R-Minn.) and Harold Volkmer (D-Mo.) have both expressed interest in expanding the English bill to include a 0/92 program for feedgrains. An aide said Stangeland does not want to reopen the farm bill, but to be fair to all crops. Only a small percentage of spring wheat farmers would likely sign up for 0/92 since the incentives to plant are greater than to idle the land, economists said. Opponents to a 0/92 feedgrains program argue it is premature to make major changes in the farm bill and that the House Agriculture Committee needs to study more closely the impacts of such a program.
Bell and Howell Co said it
completed the sale of its computer output microfilm business to
COM Products Inc, a unit of privately-held
Bradley Real Estate Trust said it signed a 99-year lease for property in downtown Minneapolis to BCED Minnesota Inc. The lease will increase net income by about 24 cts a share on a post-February 1987 three-for-two stock split basis. For 1986, the Trust reported net income of 1.3 mln dlrs or 38 cts a share on a post-split basis. Bradley will also be entitled to a one-time additional rental payment of 30 cts a share upon BCED entering into a space lease with a prime national tenant and a share in a portion of net cash flow from operations on the property.
The Government National Mortgage Association has decided not to raise its guarantee fee on mortgage securities, Louis Gasper, Ginnie Mae executive vice president said. Ginnie Mae, which guarantees securities backed by Federal Housing Administration and Veterans Administration mortgages, had planned to raise the fee March one from six basis points to 10 basis points. Mortgage bankers strongly opposed the proposed fee increase. Gasper said it became apparent Congress was ready to pass legislation that would have rescinded the fee increase.
Diplomat Electronics Corp said it will reduce expenses by four mln dlrs a year in an effort to stem losses and return to a positive net worth. The company also said certain lenders agreed to take a 24 pct stake in the company by converting seven mln dlrs of debt into preferred stock. Diplomat said it will cut costs by several means, including dismissal of 100 workers at its corporate headquarters, consolidation of its warehousing and shipping operations and reduction of management salaries. Moreover, it said it will relocate its headquarters to Glendale, Calif.
Healthcare Services Of America Inc said it will write off about 16 mln dlrs in non-recurring expenses in 1986. It also said it expects income from operations to be about breakeven for 1986 and the estimated loss for the year to be about the same as the writeoffs. Results will be released by March 31, 1987. Included in the writeoffs were six mln dlrs in developmental costs, six mln dlrs in unamortized loan costs and debt discounts and four mln dlrs in other non-recurring costs. The company said it continues to be in default of certain financial and non-financial covenants set forth in its major loan documents. It said negotiations continue with the banks, but has no assurance that such funding will continue. It said it authorized Smith barney, Harris Upham and Co to seek a business combination with third parties. Healthcare also said the board has authorized the sale or lease of certain assets to reduce the cash required from the revolving credit line for completion of current construction projects. For the year ended December 31, 1985 Healthcare reported net income of 3.5 mln dlrs on sales of 54.4 mln dlrs
Sandoz Corp's Northrup King Co said it bought Stauffer Seeds, a unit of Stauffer Chemical Co. Terms were not disclosed.
Qtly div 43 cts vs 43 cts prior Payable May one Record April 15
At least 26 people died when a car ferry struck a pier as it left Belgium for Britain, a nurse who took part in the rescue operation said. Jan Van Moerbeke, a male nurse, said on coming off the Herald of Free Enterprise that he had found six people on top of the vessel who were dead. There were at least another 20 dead inside the boat, he added. The governor of West Flanders province said 240 people were still unaccounted for.
Broker's Choice Capital Inc said it signed a letter of intent to buy Rubbertech Inc. If approved by shareholders, Broker's Choice will issue about 71 mln shares of authorized, but unissued shares of restricted common stock to Rubbertech Inc.
The Bank of France said it invited offers of first category paper today for a money market intervention tender. Money market dealers said conditions seemed right for the Bank to cut its intervention rate at the tender by a quarter percentage point to 7-3/4 pct from eight, reflecting an easing in call money rate last week, and the French franc's steadiness on foreign exchange markets since the February 22 currency stabilisation accord here by the Group of Five and Canada. Intervention rate was last raised to eight pct from 7-1/4 on January 2. Call money today was quoted at 7-11/16 7-3/4 pct.
Sweden's Stora Kopparbergs Bergslags
AB
Three London markets which trade potato, soymeal and meat futures said they will merge to form a new Agricultural Futures Exchange. Legal advisers have been instructed to implement the amalgamation of the London Potato Futures Association, LPFA, the London Meat Futures Exchange, LMFE, and the Grain and Feed Trade Association's, GAFTA, Soya Bean Meal Futures Association, SOMFA. No timetable was given. Members of the three exchanges have been consulted, Agricultural Futures Exchange secretary Bill Englebright told Reuters, and no objections have been raised to the merger. Three markets are involved at present but the new exchange could ultimately combine five markets. Discussions are taking place with the Baltic International Freight Futures Exchange, BIFFEX, and the GAFTA London Grain Futures Market is considering the possibility of joining the other markets, market officials said. The BIFFEX board is expected to reach a decision on the merger at its meeting at the end of this month, after members are consulted at a meeting on March 16. The grain futures market also intends to consult its members soon, GAFTA director general James Mackie said. The aim of the amalgamation is to limit regulatory and administrative costs and achieve the recognition required under the 1986 Financial Services Act. This legislation requires a futures market to become a Recognised Investment Exchange, RIE, for trading to continue. Representatives of all the futures markets on the Baltic Exchange have been discussing the possibility of a single RIE structure since the beginning of the year. The new exchange now planned will apply to the Securities and Investments Board for recognition as an RIE "at the appropriate time," the Agricultural Futures Exchange said. "This commitment by the markets will enable progress to be made to develop a stronger and more effective exchange to the benefit of all those involved in the industry," the chairman of the formation committee, Pat Elmer, said. The merged markets will remain at the Baltic Exchange.
BSN Corp said its agreement to sell 1,750,000 new common shares, or a 25 pct interest, to 31 unaffiliated European institutional investors for 30.4 mln dlrs has become definitive. The company said closing is expected shortly after the filing of a registration statement with the Securities and Exchange Commission, which is expected to be made this month.
Led by the non-residential sector, Canadian building permits issued in November rose 0.7 pct to 2.18 billion dlrs, seasonally adjusted, from 2.16 billion dlrs in October, Statistics Canada said. Residential permits fell 3.9 pct to 1.25 billion dlrs from 1.30 billion dlrs in October while the number of units approved fell to 17,552 from 19,079 units. The value of non-residential projects rose 7.6 pct to 927.6 mln dlrs in the month.
A decision on final dumping duties on frozen orange juice from Brazil may not be issued until tomorrow, Commerce Department officials said. They said the department has until midnight tonight to set the duty, but may not make the finding public until tomorrow. A preliminary duty of 8.54 pct was set last Oct. 17. The final duty will be based on more detailed information, the officials said.
The National Weather Service said warnings of gale force winds remained in effect over lakes Erie, Huron and Michigan. Also, warnings have been posted for large waves and beach erosion along the shores of the Lakes. Winds gusting to 45 mph caused four to six foot waves along the western and southern shores of Lake Michigan during the morning. Advisories for low wind chill temperatures have also been posted across portions of upper Michigan and northern lower Michigan. Early morning gusty winds brought the wind chill to 15 and 25 degrees below zero. Freezing rain was scattered over central Colorado by mid morning, also over central Kansas and northeast Illinois. Snow reached from south central Montana across Wyoming, western Nebraska and western Kansas. Snow also extended across northern Wisconsin, upper Michigan and northern lower Michigan. Rain reached along the northern Pacific Coast, across northwest Utah, Maryland, Deleware, Virginia, the Carolinas, Georgia and northern Alabama.
Timeplex Inc said it completed its previously-announced redemption of its 7-3/4 pct convertible subordinated debentures due 2008. The company said there had been 35 mln dlrs total principal amount of debentures outstanding. Debenture holders were entitled to convert their debentures into shares of the company's common stock at a 22.50 dlrs per share, or 44-4/9 shares of common stock per 1,000 dlrs principal amount of debentures.
The West German Intervention Board said it accepted 962,192 tonnes of grain from the start of the current agricultural year to the end of last month, compared with 1.8 mln tonnes during the July/February period in 1985/86. It said it accepted 336,097 tonnes of bread wheat (nil in the year-earlier period), 16,818 (nil) tonnes of high quality wheat, 33,623 (523,625) tonnes of feed wheat, 3,426 (168,682) tonnes of rye, 88,494 (32,766) tonnes of high quality rye, 2,313 (105,005) tonnes of summer barley and 481,421 (972,794) tonnes of winter barley.
Over 240 mln bushels of government grain have been allocated in redemptions for commodity certificates since the program began April 30, according to the Commodity Credit Corporation. Redemptions included 11.4 mln bushels of corn valued at 17.0 mln dlrs, or an average per-bushel price of 1.492 dlrs, since the current grain catalogs were issued December 1 by CCC. Wheat redemptions totaled 9.6 mln bushels, valued at 23.7 mln dlrs, since December 1. More
American Express Co's stock fell sharply, reflecting, in part, investors' disappointment that the company did not make an announcement about its plans for brokerage unit Shearson Lehman Brothers, traders said. The company has said it is studying options for its Shearson unit. Traders said many investors anticipated an announcement this weekend that it would spin off Shearson Lehman. Also, they said, a flurry of arbitrage related sell programs that pounded the general market today accelerated the selloff of American Express, a component of the Dow Industrial Average. American Express fell 3-1/8 to 77-3/8. "It was part programs and part that there was anticipation of an announcement of a spinoff or something with Shearson this weekend, and that announcement never happened," one trader said. In the last few minutes of trading on Friday, another trader said, the stock jumped to close up 3-3/8, largely on anticipation that the company would make a weekend announcement.
This year will see a pickup in U.S. economic growth and inflation, the Shadow Open Market Committee said in its semi-annual policy statement. The SOMC, a group of basically "monetarist" private economists, said that "economic growth will accelerate in 1987 in response to powerful stimulative actions by the Federal Reserve." The group said the Fed's actions have been excessive. As a result, it said that "inflation and ultimately another recession now loom on the horizon." The SOMC said that central bank policies that rely on progressively larger swings in monetary expansion will not lead to sustainable economic growth and stable prices. The group made no specific nominal forecasts of economic or inflation growth in its policy statement. However, the Committee at its Sunday policy-making meeting said it was basically in accord with projections by Jerry Jordan, who is a member of the SOMC and economist at First Interestate Bancorp. Jordan expects real GNP growth to be about one percentage point higher than in the past two years. He expects consumer prices to rise about 4-1/2 pct this year. The SOMC said in recent months rapid money growth has been a principal cause of the devaluation. To avoid another costly inflation and disinflation, the SOMC urged the Fed to "abandon its inflationary policy and set the growth rate of the monetary base on the path toward sustained lower inflation." The Fed in February said it would no longer target the narrow M-1 money supply because the link between M-1 and economic growth has been largely severed.
wheat Ria Luna 20,000 mt Norrkoping and Djuron/EC Mexico 12.50 dlrs option loading Uddevalla at 50 cents less 4,000/1,500 16-23/3 Continental. Reference New York Grain Freights 2 of March 6, brokers say the charterer of the Saturn from US Gulf to Japan is reported to be Nordstrom and Thulin, while the Antigone is reported to have been arranged from Tilbury to the Black Sea by Soviet charterers.
National Heathcare Inc said it signed an agreement to sell five rural hospitals to a private corporation for about 18 mln dlrs, including the assumption of six mln dlrs of debt. The company said it plans to complete the sales, which are subject to various regulatory approvals, by the end of July. National Healthcare said it expects no material gain on loss on the sales and that substantially all proceeds will be used to reduce debt.
Italy has shown interest in British new crop wheat recently but the actual volume booked so far by Italian buyers has not been large, traders said. They put purchases at around 50,000 tonnes for Sept/Dec shipments but said some of the business was transacted at the start of the year. Italian interior home markets have been active in recent weeks and traders said around 200,000 tonnes have traded between dealers and home consumers. Some of this has been covered in the market here and more possibly will be, traders said.
Montedison SpA
The USDA's weekly export inspection report is expected to show a decline in soybean exports and steady to slightly lower corn and wheat exports, according to CBT floor traders' forecasts. Traders projected soybean exports at 15 mln to 16 mln bushels, down from 20.3 mln bushels a week ago and 25.5 mln bushels a year ago. Corn guesses ranged from 20 mln to 25 mln bushels, compared with 21.9 mln bushels a week ago and 28.2 mln a year ago. Wheat guesses ranged from 13 mln to 18 mln bushels, compared with 14.1 mln bushels a week ago and 17.9 mln a year ago.
The volume of European exports to South Africa carried by container line vessels has declined 40 pct in the last two years, British shipping executive Antony Butterwick said. Butterwick told reporters that despite the drop and low freight rates, the shipping conference he heads will increase the frequency of sailings to South Africa as a "very strong act of faith and confidence" in the country's future. He is chairman of the Europe South and South-East African Conference Lines and joint managing director of P and O Containers Ltd. A statement issued by the conference here said frequency of Southern Africa/Europe container service sailings is being increased from nine to seven days. "This is the most positive development on the shipping front between South Africa and its main trading partners in Europe for more than four years, when the service last operated weekly," it said.
The U.S. Agriculture Department forecast the Soviet 1986/87 wheat crop at 92.30 mln tonnes, vs 92.30 mln tonnes last month. It put the 1985/86 crop at 78.10 mln tonnes, vs 78.10 mln tonnes last month. Soviet 1986/87 coarse grain production is estimated at 103.30 mln tonnes, vs 103.30 mln tonnes last month. Production in 1985/86 is projected at 100.00 mln tonnes, vs 99.99 mln tonnes last month. USSR wheat imports are forecast at 15.00 mln tonnes in 1986/87, vs 14.00 mln tonnes last month. Imports in 1985/86 are put at 15.70 mln tonnes, vs 15.70 mln tonnes last month. USDA estimated Soviet 1986/87 coarse grain imports at 10.00 mln tonnes, vs 8.00 mln tonnes last month, and 1985/86 imports at 13.70 mln tonnes, vs 13.70 mln tonnes last month.
The U.S. Agriculture Department projected an average yield of 1.47 gallons of frozen concentrated orange juice per box (42.0 degree brix equivalent) from Florida's 1986/87 crop. That compares with 1.46 gallons per box previously and 1.38 gallons per box from the 1985/86 crop. The crop reporting board said the estimates for the 1986/87 season are based on maturity and yields tests as of March 1.
The Commodity Credit Corporation, CCC, has authorized 25.0 mln dlrs in credit guarantees to North Yemen to cover purchases of U.S. wheat under the Intermediate Export Credit Guarantee Program (GSM-103), the U.S. Agriculture Department said. Under the program credit terms extended must be in excess of three yeras, but not more than seven years. All sales under the line must be registered and exports completed by September 30, 1987, the department said.
The U.S. Agriculture Department increased its estimate of Soviet 1986/87 grain imports to 26 mln tonnes from last month's projection of 23 mln tonnes. In its monthly USSR Grain Situation and Outlook, USDA said the increase reflected the return of the Soviet Union to the U.S. corn market and continued purchases of both wheat and coarse grain from other major suppliers. USSR wheat imports were projected at 15 mln tonnes, up one mln from last month's estimate and 700,000 tonnes below the preliminary 1985/86 figure. Soviet grain for feed use was estimated at a record 129 mln tonnes. Record or near-record livestock inventories, along with a dry fall which likely reduced late season pasturage, and a cold winter have increased feed demand, USDA said. USSR meat and egg production in January rose only slightly from the previous January's level, while milk production increased by nearly six pct. Unusually cold weather in January and smaller increases in roughage supplies during 1986 than in 1985 kept livestock production from expanding as much as it did a year earlier, USDA said.
The U.S. Agriculture Department estimated Canada's 1986/87 wheat crop at 31.85 mln tonnes, vs 31.85 mln tonnes last month. It estimated 1985/86 output at 24.25 mln tonnes, vs 24.25 mln last month. Canadian 1986/87 coarse grain production is projected at 27.62 mln tonnes, vs 27.62 mln tonnes last month. Production in 1985/86 is estimated at 24.95 mln tonnes, vs 24.95 mln last month. Canadian wheat exports in 1986/87 are forecast at 19.00 mln tonnes, vs 18.00 mln tonnes last month. Exports in 1985/86 are estimated at 17.71 mln tonnes, vs 17.72 mln last month.
The U.S. Agriculture Department forecast Australia's 1986/87 wheat crop at 17.30 mln tonnes, vs 17.50 mln tonnes last month. It estimated 1985/86 output at 16.13 mln tonnes, vs 16.13 mln last month. Australian wheat exports in 1986/87 are forecast at 14.50 mln tonnes, vs 15.00 mln tonnes last month, while exports in 1985/86 are estimated at 15.96 mln tonnes, vs 15.96 mln last month.
CSX Corp's Sea-Land Corp unit said it will offer improved containership services between Puerto Rico and the East Coast and Gulf Coast of the United States, beginning March 16. The carrier said it will provide shorter door-to-door transit times, more convenient cargo availability and better rail connections for traffic moving between Puerto Rico and North America.
The chiefs of Viacom International Inc
and
The Agricultural Stabilization and Conservation Service (ASCS) bought 25.7 mln pounds of wheat flour at a cost of 2.8 mln dlrs for domestic shipment April 1-15 and April 16-30, an ASCS spokesman said. ASCS also bought 11.1 mln pounds of bakers flour for 1.1 mln dlrs, 1.9 mln pounds of pasta for 408,258 dlrs, 1.4 mln pounds of processed cereal products for 304,043 dlrs, 4.8 mln pounds of corn products for 474,944 dlrs, and 16.3 mln pounds of milled rice for 2.0 mln dlrs.
Moody's Investors Service Inc said it
may downgrade 12 billion dlrs of debt of Chrysler Corp and its
units, including Chrysler Financial Corp.
It cited Chrysler's proposed acquisition of American Motors
Corp
General Cinema Corp said
lower attendence at its theatres against last year's record
Christmas season lowered its first fiscal quarter operating
earnings nine pct to 15.9 mln dlrs.
"While we are not off to as good a start in fiscal 1987 as
we would like, business has picked up in the last few weeks,"
chairman Richard Smith said.
He said that the company expected net pricing to be higher
and unit volume to improve in the remaining quarters of the
fiscal year.
The company added that operating earnings in its theatre
unit will be higher in fiscal 1987 if the important summer
season film releases perform well.
In addition, its other key business, General Cinema
Beverages, is expected to achieve record operating results for
the full year, Smith said.
The company's superstar video business which rents video
cassettes in supermarkets continues to operate at an expected
loss, the company added.
General Cinema said the financing costs associated with its
purchase of 3.5 mln Carter Hawley Hale Stores Inc
Grain analysts said the increase of three mln tonnes in 1986/87 Soviet grain imports is unlikely to affect the market Tuesday. They said the market already has discounted higher Soviet imports, partly on news last month that the Soviet Union bought one mln tonnes of U.S. corn, and on rumors that the Reagan administration is pushing for authority to sell the Soviets U.S. wheat under the Export Enhancement Program. In its supply-demand report, the USDA raised its estimate for 1986/87 Soviet grain imports to 26 mln tonnes from 23 mln. "That was business already done, for all practical purposes," said Drexel Burnham analyst Dale Gustafson, reflecting similar statements made by other analysts.
Financier Carl Lindner, who holds a 16.2 pct stake in Taft Broadcasting Co, told the Securities and Exchange Commission he has discussed with the company the possibility of seeking control of it. Lindner, the Cincinnati, Ohio, investor who controls American Financial Corp, said his talks with some of Taft's managers and directors have been aimed at "achieving an increased ownership position" in the company. Lindner said his increase in ownership would be made either by making an offer to acquire control of Taft or taking part in a group to acquire the company. Lindner, who holds his Taft stake through American Financial and its subsidiaries, said he is also considering buying more Taft stock on the open market or in private deals. He did not say whether the talks with Taft officials led to any agreements or understandings. But Lindner said he intends to review his investment in Taft and may be involved in further talks or take other steps regarding the future control and direction of Taft. Lindner's investor group recently raised its Taft stake to 1,489,298 shares, or 16.2 pct from 1,439,498 shares, or 15.6 pct, after buying 49,800 shares for a total of 5.8 mln dlrs. Although he recently received clearance from the Federal Trade Commission to raise his stake in the company to 24.9 pct, Lindner in previous SEC filings has always stressed that his interest in Taft was for investment only and not was not seeking to control the company. An investor group headed by members of the wealthy Bass family of Fort Worth, Texas, also holds about 24.9 pct of Taft's common stock.
The Soviet Union will likely honor its commitment with the United States to buy a minimum of four mln tonnes of corn this year, an Agriculture Department official said. "They have always honoured the agreement, and there's no reason now to think they won't this year," he told Reuters. "They have an aggressive buying campaign from the European Community, from Canada, from the U.S. They're active buyers from all sources at this point," the official said in explaining why the Department raised its Soviet grain imports estimate today by three mln tonnes to 26 mln tonnes. This is a dramatic shift from just a few months ago when analysts were saying the USSR might not buy any U.S. corn for the first time in 15 years. A drawdown of corn supplies in China and Argentina, concern over Soviet winter crops, and increasing competition for U.S. corn were all cited as possible factors in creating Moscow's recent interest. Lower corn production prospects in some major supplying countries have stirred activity from big buyers such as Japan, and the Soviets are also closely watching the situation, the official said. "The Soviets will try to out-capitalize the capitalists" and buy corn before prices get too high, the official said. "As soon as they need corn, they'll buy it," he added. USDA has confirmed one mln tonnes of corn sold to the Soviet Union, but both U.S. and Soviet analysts have said the purchases stand at 1.5 mln tonnes. The USDA official would not speculate on when the Soviets would enter the U.S. market again. "There has definitely been an evolving mind set -- from the situation of slow grain buying a couple months ago to one of frenetic buying now," the official said. However, the situation in wheat is "a different story," he said. Greater world supplies of wheat, heavier Soviet purchase commitments and less competitive U.S. wheat prices make Soviet purchases of U.S. wheat less likely, he said. Speculation has continued for several days that the U.S. is considering making an export bonus wheat subsidy offer to the Soviets, but U.S. officials have provided no confirmation.
People throughout China can now open foreign exchange accounts at the Bank of China, the official Shenzhen Economic Zone Daily said. Previously only residents of Guangdong and Fujian provinces could do this. The paper also said the minimum for opening a fixed deposit account had been cut to 50 yuan equivalent, from 150 yuan. The minimum for a current account is 20 yuan equivalent. The paper said depositors could now withdraw all or part of their account, subject to a branch's reserves, instead of only a fixed amount as previously. The paper said deposits may now be opened in French francs as well as the already available U.S. Dollar, Hong Kong dollar, sterling, yen and marks. Bank of China branches in Hainan island also accept deposits in Singapore dollars, and those in Wenzhou, Zhejiang province, accept deposits in Dutch guilders, the paper said. It gave no further details.
The Sichuan government has ordered that any work or meeting which interferes with the fight against drought must be cancelled or postponed to save time, energy and manpower, the People's Daily domestic edition said. Sichuan is one of six provinces threatened by drought. Wen Wei Po, a Hong Kong daily, said the drought, the worst for more than 20 years, is affecting nearly two mln hectares in 100 counties in Sichuan, the country's biggest agricultural producer. Sichuan has experienced temperatures three degrees Centigrade higher than normal and rainfall up to 70 pct less than normal since early February, affecting wheat, oil-bearing crops, rice planting and dryland cash crops, it said. The paper said 43,000 hectares in Meixian county in Guangdong are seriously short of water. The People's Daily said Henan, Shaanxi, Gansu and Hebei are also suffering from drought. Henan's grain output fell by 2.5 mln tonnes last year from the 1985 level because of drought which has been affecting the province since May.
Japanese crushers are likely to buy at least 200,000 tonnes of Brazilian soybeans this year and another 100,000 to 200,000 if quality and shipping conditions are good against 128,089 tonnes in 1986, trade sources said. A Japanese trading house recently bought about 31,000 tonnes of soybeans for April 10/May 10 shipment, they said. "Because Brazilian soybean prices are now some 10 cents a bushel cheaper than U.S. Origin due to the bumper harvest, it is highly likely that Japanese crushers will increase their buying volume," one source said. Brazilian beans are available to Japan for shipment from May to July.
Hillsdown Holdings Plc
The joint committee of Taiwan's soybean importers will tender March 12 for a 27,000 tonne cargo of U.S. Soybeans for March 20 to April 5 delivery, a committee spokesman told Reuters. Taiwan's soybean imports in calendar 1987 are provisionally set at 1.81 mln tonnes compared with a revised 1.74 mln tonnes imported last year. The 1.74 mln tonne figure was revised from 1.76 mln tonnes. Taiwan imports all its soybeans from the United States.
Cargo handling remains halted at Bangladesh's Chittagong port since nearly 7,000 workers walked out on Monday following a pay dispute, the Port Workers Association said today. Fourteen ships are stranded at the port. Port officials said they would meet Association leaders today to try to resolve the dispute.
The Tokyo Metropolitan Government said it would float a 100 mln dlr 10-year bond with a 7.5 pct coupon in New York, its first Yankee bond issue in 21 years. The bond will be priced at 99.515 to yield 7.585 pct. The issue will be immediately swapped into Swiss francs, putting actual interest rates at around four pct, a Tokyo government spokeswoman said. The lead manager is First Boston Corp and the co-leaders are Goldman Sachs and Co and Merrill Lynch Capital Markets, she said. The funds will be used for sewerage and reclamation work.
Shr 8.1p loss vs 26.3p earnings Div 3.25p making 5.25p vs 10.5p Net loss 62.1 mln stg vs 71.6 mln profit Operating profit before tax 73.6 mln vs 273.8 mln Turnover 1.47 billion vs 1.74 billion Cost of sales 1.22 billion vs 1.39 billion Gross profit 241.8 mln vs 357.6 mln Distribution costs and administrative expenses 152.2 mln vs 123.1 mln Share of profits in associates 17.1 mln vs 68.2 mln Other operating income 15.8 mln vs 16.9 mln Financing charges 48.9 mln vs 45.8 mln Tax 63.9 mln vs 169.7 mln Exceptional items 4.9 mln debit vs 5.5 mln debit Net results of discontinued operations 15.6 mln debit vs 20.9 mln debit Loss on ordinary activities before minority interest 10.8 Mln vs 77.7 mln profit Minority interest 11.3 mln vs 6.1 mln Extraordinary debits 40.0 mln vs nil
The Bank of England said it forecast a liquidity shortage of around 300 mln stg in the market today. Among the main factors, the Bank said bills maturing in official hands and the treasury bill take-up would drain 483 mln stg from the system while below target bankers' balances and a rise in the note circulation would take out 50 mln and 100 mln stg respectively. Partially offsetting these, exchequer transactions would add around 355 mln stg, the Bank added.
Shr 28.5p vs 26.6p. Final div 8p, making 13p vs 12p. Pre-tax profit 132.4 mln stg vs 132.7 mln. Net profit befire minorities 81.0 mln vs 74.4 mln. Sales 2.06 billion stg vs 2.20 billion. Extraordinary debit 36.5 mln vs 20.4 mln. Trading surplus after depreciation 145.7 mln stg vs 158.1 Mln Investment and interest income 5.4 mln vs 3.8 mln Interest payable 42.5 mln vs 43.9 mln Profits from related companies, less losses, 23.8 mln vs 14.7 mln Tax 51.4 mln vs 58.3 mln Profit attributable to outside shareholders' interests 12.6 Mln vs 11.2 mln Note - Extraordinary debit included charge for restructuring auto parts distribution in France and loss of 10 mln stg on sale of steel stock business. Trading surplus comprised - Automotive components and products 101 mln stg vs 105 mln Industrial services and supplies 30 mln vs 21 mln Wholesale and industrial distribution 11 mln vs 22 mln Steels and forgings four mln vs 10 mln By region, Britain contributed 34 mln stg vs 47 mln Continental Europe 77 mln vs 56 mln U.S.A. 28 mln vs 51 mln Rest of world seven mln vs four mln
A spokesman for Preussag
AG
Interest in the currency futures market has shifted to the soaring British pound and the potentially explosive Canadian dollar, and away from the dull Continental and Japanese currencies, analysts said. The June pound, which added 6.3 cents over the past week-and-a-half to reach a new contract high of 1.5930 to the dollar on Monday, has spawned a new-found speculative boom. "Brokers have to push their clients somewhere...and technically, the pound is in the best shape," PaineWebber analyst Jason Gillard said. "We've tried to take a bullish approach to the pound, and we're going to stay with that, there's no reason to change," Smith Barney analyst Craig Sloane said. Many traders took on long pound/short West German mark futures positions, although some of those cross-trades were liquidated yesterday, Sloane said. The fundamental keys to the pound's rise have been relatively high U.K. interest rates and a vague optimism surrounding the British economy, analysts said. "Money seems to be chasing yields," William Byers, of Bear Stearns, said of the 10-1/2 pct U.K. base lending rate. Many analysts are skeptical about further gains in the pound, on the inference that the Bank of England will seek to relieve upward pressure on the currency by pushing down interest rates after the nation's budget is released March 17. The budget itself could have an impact, depending on how well it is received, but analysts say relative interest rates and oil income remain the main influences on the currency. However, the market may be able to absorb lower U.K. interest rates, as it has done when other countries have cut their discount rates, and extend the pound's rally, Sloane said. The Canadian dollar has not been rising like the pound, but Sloane and other analysts cautiously predicted a big move soon. The sideways price pattern in the June contract, with smaller and smaller price ranges, has formed a "bull flag" on price charts, technically-oriented analysts said. "It makes for an explosive type of situation that often leads to a breakout," in this case to the upside, Sloane said. Byers agreed there was potential for the June Canadian dollar to rally above the 77.00 cent level from the most recent close at 74.80 cents to the U.S. dollar. "At this stage of the game I'd call the market long-term positive, but for the technical burden of proof you need a close above (the previous contract high of) 75.25," Byers said. As to the traditionally more active currencies, stability was the catchword and reluctance the watchword among analysts. Sloane said it was important that June Swiss francs and June German marks held above support at 0.6400 and 0.5400, respectively, closing at 0.6438 and 0.5430. Yesterday's rebound showed the market was still very respectful of the Paris accord, and the threat of central bank intervention by the G-5 nations plus Canada. "We may still probe to see what the parameters are," Byers said, "but people are very reluctant because they don't know where the central banks will be (to intervene)." Gillard said the mark could drop to a previous price consolidation area around 0.5250 based on the profoundly sluggish West German economy, but that he would be a buyer at that level.
Sight deposits of commercial banks at the Swiss National Bank fell 2.88 billion Swiss francs in the first 10 days of March to 7.65 billion, the National Bank said. Foreign exchange reserves rose 3.30 billion francs to 33.94 billion. Sight deposits are a major indicator of money market liquidity in Switzerland. The National Bank said banks paid back 5.5 billion francs of central bank credit taken out at the end of February for the end-month liquidity requirement. This drain was offset in part by new currency swaps, which had the effect of increasing the National Bank's foreign exchange holdings. Bank notes in circulation fell 309.1 mln francs to 24.49 billion, and other deposits on call -- basically government funds -- rose 1.06 billion to 2.10 billion.
Creditanstalt-Bankverein
Shr 18 cts vs 14 cts Net 556,036 vs 403,945 Sales 15.6 mln vs 13.6 mln Avg shrs 3,132,555 vs 2,934,285 Year Shr 60 cts vs 48 cts Net 1,805,229 vs 1,400,247 Sales 60.1 mln vs 52.3 mln Avg shrs 3,012,917 vs 2,940,219 NOTE: 1985 share data adjusted to reflect three for two stock split effective June 30, 1986
The Bank of England said it gave the money market assistance worth 106 mln stg this afternoon, buying bank bills at the rates established on Monday. The Bank bought 11 mln stg of band one bills at 10-3/8 pct and 95 mln stg of band two paper at 10-5/16 pct. This is the first time that it has intervened today. The Bank has revised its estimate of the liquidity shortage in the market down to 250 mln stg from 300 mln initially.
Shr loss 30 cts vs loss 43 cts Net loss 891,000 vs loss 969,000 Revs 1,930,000 vs 1,815,000 Avg shrs 2.9 mln vs 2.2 mln Nine Mths Shr loss one dlr vs loss 1.36 dlrs Net loss 2,622,000 vs loss 3,037,000 Revs 4,638,000 vs 4,105,000 Avg shrs 2.6 mln vs 2.2 mln
Pacer Systems said it has agreed in principle to acquire the assets of Sea Data Corp, a maker of low-powered electronic systems including undersea intelligent recording sensors and high-density digital data recorders, for one mln dlrs.
Versar Inc, a technical environmental services company, said it will release an announcement this afternoon concerning the company. A Versar spokesman said he was unable to divulge any further information. The American Stock Exchange halted trading of Versar's stock this morning.
Pennsylvania Power and Light Co said it will offer 500,000 shares of 6-7/8 pct series preferred stock at 100 dlrs per share and 500,000 shares of 7-3/8 pct series preferred stock at the same price, plus accumulated dividends from the date of original issuance. The First Boston Corp, Drexel Burnham Lambert Inc, Merrill Lynch Capital Markets and Prudential-Bache Capital Funding are the underwriters offering the stock, said Pennsylvania Power. The 6-7/8 pct series preferred stock is redeemable at any time, at the option of the company at 106.88 pct per share on or before March 31, 1992, and declining to 100 pct on and after April 1, 1994, the company said. The company added that no optional redemption may be made prior to April 1, 1994, with or in anticipation of borrowed funds or senior or parity stock having an effective cost of less than 6.88 pct per annum. The 6-7/8 pct series preferred stock will have a mandatory sinking fund in the amount of 100,000 shares in each year commencing on April 1, 1993, calculated to retire the issue no later than April 1, 1997. The company has the non-cumulative option to retire an additional 100,000 shares on any sinking fund payment date, it said. Pennsylvania Power said the 7-3/8 pct series preferred stock is redeemable at any time, also, at the option of the company at 107.38 dlrs per share on or before March 31, 1992, and declining to 100 pct on and after April 1, 2002. The company said that no optional redemption may be made prior to April 1, 1992, with or in anticipation of borrowed funds or senior or parity stock having an effective cost of less than 7.38 pct per annum. Pennsylvania Power said the 7-3/8 pct series preferred stock will have a mandatory sinking fund of 25,000 shares in each year commencing April 1, 1993, calculated to retire the issue no later than April 1, 2012. It said it has the non-cumulative option to retire an additional 25,000 shares on any sinking fund payment date.
The Securities and Exchange Commission
said it charged a managing director of
The Central Issuing Office of the Swiss cantonal banks said it is launching a 150 mln Swiss franc 4-1/2 pct 12-year bond issue at 99.75 pct. Subscriptions close March 23. The funds will be partly used for the conversion or repayment of an 80 mln franc 4-3/4 pct 1972/87 bond maturing on April 15.
Frank B. Hall and Co, an
insurance and brokerage firm, said it has joined with
Genzyme Corp said the U.S. Patent Office has approved a patent for the company's method of testing for serum alpha amylase, an indicator of pancreatic disease. "The patent strengthens Genzyme's proprietary position as the leading independent supplier of diagnostic enzymes and substrates," Henri Temeer, Genzyme president, said. The company said the technology combines a unique substrate with two indicator enzymes in a diagnostic assay to measure serum amylase levels. Genzyme said that since 1985 it has entered into several licensing agreements for the technology with amylase test kit makers.
4th qtr Jan 31 Shr five cts vs 28 cts Net 2,448,000 vs 13.3 mln Revs 156.1 mln vs 225.5 mln Avg shrs 47.3 mln vs 47.8 mln Year Shr 18 cts vs 1.01 dlrs Net 8,430,000 vs 48.2 mln Revs 587.9 mln vs 843.9 mln Avg shrs 47.4 mln vs 47.9 mln
Pentair Inc said it has filed
for an offering of two mln shares of cumulative convertible
preferred stock at an expected price of 25 dlrs per share
through underwriters led by
Private exporters said China bought a total of 550,000 tonnes of U.S. wheat under the export enhancement program, with final confirmation by the U.S. Department of Agriculture of the subsidies still awaited. The purchase consisted of a total of 340,000 tonnes of hard red winter wheat for various May/Aug shipments, with 210,000 tonnes of soft red winter for Aug/Sept, the exporters said.
Synergen Inc said it agreed to
provide its human elastase inhibitor, designed to treat
emphysema, to Ciba-Geigy AG
Shr 24 cts vs 13 cts Net 704,803 vs 385,081 Revs 5,669,682 vs 4,142,095
IC Industries Inc called for redemption 113.6 mln dlrs worth of securities. IC said it will redeem 69 mln dlrs in 14 pct guaranteed notes, seven pct Swiss Franc notes of Abex International worth 40 mln Swiss francs (26.2 mln dlrs), and 18.4 mln dlrs of 11-5/8 pct Pneumo subordinated sinking fund debentures. The guaranteed notes will be redeemed May 15 at a redemption price of 100.5 pct. The Swiss Franc notes will be redeemed July 12 at 100.5 pct. The debentures will be redeemed June one, with 5.75 mln dlrs to be redeemed at 100 pct and the balance to be redeemed at 102.33 pct.
Dutch members of parliament said they could do little to help resolve the dispute over redundancies in Rotterdam port's general cargo sector and urged the union and employers to sort out their differences themselves. Both sides gave evidence to the all-party standing committee on Social Affairs today, but committee members said they saw little chance of parliamentary intervention. The dispute began on January 19 in protest at employers' plans for 800 redundancies from the 4,000-strong workforce, starting with 350 this year. The port and transport union, FNV, is to challenge the redundancies in an Amsterdam court tomorrow.
Qtly div 44 cts vs 44 cts prior Pay June One Record May Eight
Louart Corp, a Los Angeles investment firm, said it raised its stake in Amerford International Corp to 105,615 shares, or 7.8 pct of the total outstanding, from 69,715 shares, or 5.2 pct. In a filing with the Securities and Exchange Commission, Louart said it bought 35,900 Amerford common shares between March 19, 1986 and Jan 30, 1987 at prices ranging from 3.92 to 4.29 dlrs a share. It said it bought the shares for investment purposes and might increase its stake in the future.
A pressure leak in a containment building hatch at FPL Group Inc's Turkey Point nuclear plant has forced a brief reactor shutdown, a Nuclear Regulatory Commission (NRC) spokesman said. Ken Clark, the NRC's representative in Atlanta, said no radioactivity escaped during the incident last night, which he described as "a relatively minor problem that poses no safety hazard." Clark said repairs were underway and Turkey Point Unit 4, one of two nuclear reactors at the site south of Miami, was expected to be reactivated later today.
L.M. Ericsson Telephone Co of Sweden said it was awarded a 7.5 mln dlr contract to supply its Alfaskop computer terminals to the West German Bundespost, West Germany's telecommunications and postal administration. Ericsson said the contract covers 2,000 terminals, which will be used by West German post offices.
Qtly div 18 cts vs 17 cts prior Pay April 15 Record April One
Intelligent Systems Master Limited Partnership said it will make a cash distribution of 25 cts a unit in early April to unitholders of record as of March 31. The company said continued strength in its results prompted the move. Intelligent Systems added that if current plans to sell some of its assets, as previously announced, are successful, it may make further distributions estimated at 15 cts to 25 cts a unit. Earlier, the company reported fiscal third quarter ended December 31 net income of 2.3 mln dlrs, or 20 cts a share, up from fiscal 1985 third quarter results of 563,000 dlrs, or five cts a share. In addition, it reported fiscal 1986 nine months' net income of 4.4 mln dlrs, or 40 cts a share, versus a loss of 1.1 mln dlrs, or 10 cts a share, in fiscal 1985's first three quarters.
The Commodity Credit Corp (CCC) has accepted bids for export bonuses to cover sales of 340,000 tonnes of hard red winter wheat and 210,000 tonnes of soft red winter wheat to China, the U.S. Agriculture Department said. The bonuses awarded averaged 36.22 dlrs per tonne, and the wheat is scheduled for delivery during May-Oct 1987. The bonus awards were made to Cargill, Inc (305,000 tonnes), Continental Grain Co (155,000 tonnes), Mitsubishi International Corp (60,000 tonnes) and Richco Grain Co (30,000 tonnes). Bonuses will be paid to the exporters in the form of commodities from CCC stocks. The purchases complete the Export Enhancement Program initiative for China announced Jan 26.
The Wall Street Journal said the
stocks of Owens-Illinois Inc
Two U.S. government agencies are in
dispute over a proposal for U.S. firms to sell computers to
Iran, officials said.
The Commerce Department said it intends to approve export
licenses for two firms to sell computers and related equipment
to the Islamic Republic of Iran News Agency and the Iran Power
Generation Transmission, spokesman B. Jay Cooper said.
The export companies were not identified, but the sales
included computers made by Digital Equipment Co
Rochester Telephone Corp said
it agreed to buy
A Portland-based wood products company has signed a 13 mln dlr contract with the Iraqi government to supply finished softwood lumber to Iraq, Edward Niedermeyer, president of Niedermeyer-Martin Co said yesterday. Niedermeyer told the House Foreign Affairs sub-committee on International Economic Policy and Trade in Washington that the sales agreement contains an option that could make lumber exported worth more than 20 mln dlrs. The delivery of about 8.0 mln dlrs worth of plywood, in addition to lumber, hinges on whether the U.S. Department of Agriculture will interpret plywood as an agricultural commodity under the credit guarantee program, he said. Niedermeyer said the government export credit guarantee program (GSM-102) administered by the USDA was the key to opening the Iraqi market which up to now had been captured by Scandinavian lumber producers. "This is the first time we have been able to sell wood products in Iraq, he said. Without the USDA program it would not have been possible. We hope this will lead to a long term export market for U.S. lumber products." He said the contract calls for supplying 21 mln board feet to 30 mln board feet of softwood lumber for housing, construction and furniture manufacturing. He estimated the profit potential for his company on the sale at five to six pct. Niedermeyer spent two weeks in Baghdad negotiating the sale late last month and early March. He is a member of the United States-Iraq Business Forum, a non-profit group designed to promote commerce with Iraq. The forum members include Westinghouse and General Electric, but Niedermeyer's company is the only wood products firm on the membership roster.
Giant Food Inc reported sales on a 52-week basis ended last month increased 10.4 pct to 2.48 billion dlrs, compared to 2.25 billion dlrs for the prior 52-week period.
Reliance Electric Co said its Reliance
Industrial Co unit will redeem on April 10 all outstanding
7-1/4 pct debentures due 1996 and 9-5/8 pct debentures due
1994.
Reliance Industrial will buy back the 7-1/4s at 101 plus
accrued interest and the 9-5/8s at 102.344 plus accrued
interest.
Reliance Electric was a unit of Exxon Corp
Harper and Row Publishers Inc said it received an acquisition offer from Harcourt Brace Jovanovich INc to acquire all of Harper and Row's shares at 50 dlrs a share in cash. Harper said it will consider the proposal, including such possible concerns as anti-trust and other legal considerations. On Monday, Harper and Row received a surprise 34 dlr-a- share bid from investor Theodore Cross, owner of six pct of the shares, for the stock he does not own. Harcourt made clear in its offer that it will step aside if Harper's directors and shareholders reject the bid, Harper said. Harper said the board has previously expressed a strong determination to remain an independent publishing enterprise. Harper also said that New World Pictures, a shareholder, has requested a copy of Harper's shareholder list to be used in soliciting proxies. New World has 30,800 shares of the total 4.4 mln shares. Harper and Row's stock closed off 3/4 to 33-1/2 after rising 9-1/4 points yesterday. Shareholders are due to vote April 2 on a shareholders rights plan designed to thwart hostile takeovers. Ivan Obolensky, an analyst with the investment banking for of Sterling Grace and Co said Harper and Row is one of the few remaining independent publishers with a "back list" of authors stretching back 200 years. He said as long as the company maintains copyrights with the estates of deceased authors, it controls all motion picture and television rights to the stories. And he said new printing technologies make new editions a profitable business. "Harcourt Brace needs a back list of that nature and is willing to pay up for it," Obolensky said. But he said Harper and Row "has plenty of beef to warrant a 50 dlr bid.
Mason Benson, former president and chief operating officer of Empire of Carolina Inc, a toy maker, today was sentenced in Manhattan federal court to a year and one day in jail for his involvement in a kickback scheme. Benson pleaded guilty to charges of conspiracy, tax evasion, filing false corporate tax returns and defrauding the company's shareholders. He was also fined 5,000 dlrs. Benson was charged with demanding kickbacks from sales representatives who were asked to turn over a portion of their commisisons as a condition for doing business with Empire.
Shr 25 cts vs 36 cts Net 1.4 mln vs 1.4 mln Revs 56.9 mln vs 35.1 mln Year Shr 86 cts vs 75 cts Net 4.7 mln vs 3.0 mln REvs 201.4 mln vs 140.0 mln NOTE:1985 4th qtr includes 99,000 loss from carryforward. Shares restated to give effect to 1.4 to one stock split in the form a 40 pct class A dividend in August 1985.
Phillips Petroleum Co Chairman C. J. "Pete" Silas said his company's stock, ranked fourth on the most active list of stocks traded today, rose partly because of steps it took to pare its debt. Silas told Reuters in an interview today, "part of this strength results from the rise in oil prices and also because some of the analysts have been happy with the steps we've taken in 1986 to pare our debt." Phillips stocks rose 1/4 to 14 dlrs a share following recommendations by some oil analysts, a company source said. Phillips debt stood at 5.9 billion dlrs in December 1986 down from a 1985 high of 8.6 billion dlrs, analysts said. "At 14 dlrs a share, Phillips is priced closer to the actual price of oil," he added. Silas said, "if the analysts are right that oil prices will rise to 20 dlrs or higher, then it seems to make sense to buy Phillips." He is, however, more cautious about the strength in crude prices, expecting the price to fluctuate between 16-18 dlrs a barrel for the year. Oil industry analysts said one reason for the stock's popularity of the stock is that it traded at a strong discount to its appraised value and was attractively priced for small investors. Charles Andrew, an analyst who follows Phillips for John S. Herold Inc of Greenwich, Conn said that the appraised value of the company, based on available data is 34.25 dlrs. "The stock is trading at about 1/3 its appraised value. The company has tremendous leverage and if it can get its act together and if oil prices are steady to higher there is good room for improvement," he said. But, he added, "if oil prices turn lower, there will be a lot of pressure on Phillips." Phillips' shares fell as low as eight dlrs a share over the last 52 weeks with a 1987 low of 11-3/4 dlrs in 1987. Analysts say that the appraised value of the company could be revised due to asset sales of their oil and gas reserves. Silas told Reuters that the asset sales which amount to about two billion dlrs for 1986 were completed and that none were planned.
Michigan General Corp said it began an exchange offer for its 110 mln dlrs outstanding principal amount of 10-3/4 pct senior subordinated debentures due December 1, 1998. Pursuant to the exchange offer, each 1,000 dlr principal amount will receive 500 dlr principal amount of senior subordinated notes due March 1, 1992, 200 dlr principal amount of non-interest bearing convertible senior subordainted notes due March 1, 1997 and 12 shares of delayed convertible preferred stock, liquidation preference 25 dlrs per share. The offer will expire April nine. Michigan General said the exchange offer is crucial to is attempt to restructure and reduce its risk from Chapter 11. The principal purpose of the offer is to reduce its debt service on the 10-3/4 pct debetures, increase stockholders' equity and induce its lender to continue to fund. Assuming a 90 pct acceptance of the offer, Michigan's annual cash interest requirements will be reduced by about 10.6 mln dlrs, it said. Completion is subject to the tender of at least 90 pct of the debentures and its lender to waive it from default under its loan agreements.
Shr 17 cts vs 16 cts Net 1,019,000 vs 985,000 Revs 7,997,000 vs 7,492,000 YEAR Shr 1.18 dlrs vs 64 cts Net 6,959,000 vs 3,778,000 Revs 36.5 mln vs 29.8 mln
Soviet first deputy prime minister Vsevolod Murakhovsky said at the end of a brief visit here his country wanted to boost joint business with France, but that a reduction of France's trade deficit with the Soviet Union depended on the French. Murakhovsky, who is also chairman of the State Agro-Industrial Committee (GOSAGROPROM), told a news conference he had discussed a variety of possible deals with French companies Rhone-Poulenc, Pechiney and Imec. Declining to put figures on possible contracts he said he had discussed plant protection and the processing of highly sulphuric gas with Rhone-Poulenc, packaging technology for agricultural products with Pechiney, and fruit and vegetable juice processing with Imec. An official for Pechiney said an agreement of intent on packaging could be signed soon, but could not give any other details. The other two companies were not immediately available for comment. Asked whether he foresaw a reduction this year of France's trade shortfall, at 7.6 billion francs in the first 11 months of 1986 against 5.1 billion for the whole of 1985, Murakhovsky told Reuters: "It all depends on France." At a meeting in Paris last January French and Soviet foreign trade ministers said they were committed to increased efforts to reduce the deficit. Estimates at the time showed a French 190 mln franc surplus for December 1986. Murakhovsky said the Soviet Union was prepared to talk with anybody with "interesting" proposals offering latest technology and assuring "a mutual advantage." He said the Soviet Union had many tasks ahead of it and would deal rapidly with proposals it considered interesting. He encouraged companies to take advantage of new laws guaranteeing "the interests of foreign partners" in joint ventures. But he said no agreements had yet been finalised under the new joint venture laws. He said concrete deals had not yet been finalised as a result of a one billion dollar accord signed in Moscow last month with French businessman Jean-Baptiste Doumeng. He said Doumeng's Interagra company was preparing proposals for further examination by the Soviet Union. Doumeng last month said the agreement was to exchange one billion dollars worth of goods. Murakhovsky said the agreement was one of intent, and designed primarily to renew and increase the Soviet Union's food production capacity.
U.S. Treasury Secretary James Baker declined comment on the February 22 Paris accord between the six major industrial nations under which they agreed to foster exchange rate stability. Asked by reporters after a speech before the National Fitness Foundation banquet what, if any, currency intervention levels had been set in Paris, Baker replied: "We never talk about intervention." Baker also declined to comment on his views about the foreign exchange markets' reaction to the accord.
Ecuador will ask OPEC to raise its oil export quota by 100,000 barrels per day to 310,000 to compensate for lost output due to last week's earthquake, deputy Energy Minister Fernando Santos Alvite said. Santos Alvite, who arrived in Caracas last night to discuss an aid plan for Ecuador, did not say when the Organisation of Petroleum Exporting Countries (OPEC) would be approached. The additional output would be related to plans now under discussion for Venezuela and Mexico to lend Ecuador crude while it repairs a pipeline damaged by the quake. Earlier, Venezuelan Energy and Mines Minister Aturo Hernandez Grisanti said his country would supply an unspecified part of Ecuador's export commitments. But Santos Alvite told reporters he hoped a first cargo of 300,000 barrels could leave Maracaibo this weekend to supply refineries near Guayaquil. He added Ecuador also wanted to make up for 50,000 bpd it shipped to Caribbean destinations. Mexico might supply Ecuador's South Korean market. Ecuador may be unable to export oil for up to five months due to extensive damage to a 25 mile stretch of pipeline linking jungle oilfields to the Pacific port of Balao.
The Australian Wheat Board's (AWB) 1986/87 export program is well advanced with over 10 mln tonnes already sold, AWB general manager Ron Paice said. "We are certainly within reach of our 15 mln tonne export target for the year," he said in a statement. He did not detail the commitments already made, but an AWB spokesman said they include sales to Egypt, China, Iran, the Soviet Union and Iraq. In the 1985/86 wheat year ended September 30, the AWB exported a record 15.96 mln tonnes. Paice also said the 1986/87 Australian wheat harvest has ended after a long, cool summer with 15.14 mln tonnes delivered to the AWB. The season produced another good crop, with only 0.2 pct of receivals being downgraded to feed quality, he said. However, it is likely that some weather-damaged grain was still being held on farms and further milling and feed wheat may be delivered following the recent announcement of the final Guaranteed Minimum Price for 1986/87, he said. Paice did not give a crop estimate, but the AWB's February Wheat Australia publication put the crop at 16.7 mln tonnes. But the AWB spokesman said it is likely this estimate could turn out to be too high, based on the receivals level, and the final crop figure would probably be nearer to 16.2 mln tonnes. The official estimate is not yet available. In the 1985/86 season, the AWB received 15.08 mln tonnes of the 16.13 mln tonne crop. Another 422,000 tonnes was retained on-farm and 620,000 sold under the permit system introduced in 1984/85 to allow farmers to sell feed wheat to the grain trade outside the AWB's receival system, according to Bureau of Agricultural Economics data.
Group loss after financial income and expenses 1.08 Billion vs loss 71 mln crowns Sales - 12.38 billion crowns vs 6.16 billion. No proposed dividend vs 10 crowns. Note - The company this year consolidated wholesale and investment conglomerate Ahlsell AB.
China's wheat imports in January were 218,000 tonnes, down from 393,000 in January 1986, the China Daily Business Weekly said, quoting customs figures. It said imports of sugar were 25,165 tonnes, down from 54,000, but exports of rice rose to 71,144 tonnes from 20,000. It gave no more details.
Dutch sugar traders deny involvement in a plan to offer more than 850,000 tonnes of sugar to intervention in protest at EC export policy and prices, traders told Reuters. Although some 2,500 tonnes of sugar have been offered to intervention in the Netherlands, Dutch producers and traders said this sugar was actually Belgian and was being offered by the Belgian industry. "We sympathise with the actions of the French, West German and Belgian traders and producers, but we are not party to it," a spokesman said. EC Commission sources said yesterday French traders planned to sell 775,000 tonnes into intervention stocks, West German traders 75,000 tonnes and Dutch traders 2,500. Dutch trade sources gave the same figure for France, but estimated up to 110,000 tonnes offered by German traders and producers. The Dutch spokesman added, "The weekly export tender policy and prices are squeezing the European sugar industry, and this is the only way in which they can really register their protest. "These are desperate actions, but we believe that most of this offered sugar will be withdrawn within the three-week breathing space allowed."
Shr 7.67p vs 5.34p Div 1.5p vs 1.08p Pretax profit 30.12 mln stg vs 12.40 mln Net interest payable 2.55 mln vs 200 stg Net after tax 19.58 vs 7.44 mln Turnover excluding VAT 257.66 mln vs 74.09 mln Note - The company said it intends to issue a second interim statement for the six months to July 1987 and to pay a related dividend in early 1988.
Shr loss 17.4 H.K. Cents (no comparison)
Dividend nil (no comparison)
Net loss 11.49 mln dlrs.
Notes - Net excluded extraordinary losses 27.91 mln dlrs.
Property valuation reserve surplus 67 mln dlrs.
Results reflected trading in subsidiary
The tin price is likely to rise to 20 ringgit a kilo this year because of the producers' accord on export quotas and the reluctance of brokers and banks to sell the metal at lower prices, a Malaysian government bulletin said. The Malaysian Tin bulletin said it is in producers' interest to keep to their quotas to limit total exports to 90,000 tonnes and to gradually deplete the 80,000 tonnes overhang. It said consumption by industrialised countries should stay at 160,000 tonnes and that International Tin Council creditors and brokers are not likely to dump their stocks excessively unless there is a large and abrupt price jump. The continued depreciation of the dollar could also help push up the price of tin, the bulletin said. A depreciation of the dollar means the depreciation of the ringgit which is closely pegged to it, making the price of tin cheaper in sterling terms, it added. "Even in the absence of economic rationale in the tin market, psychological optimism alone is sufficient to secure a price recovery of up to 20 ringgit per kilo," the bulletin said.
Shr 48.4 cents vs 40.6 Yr div 37 cents vs 15 Net 60.50 mln dlrs vs 50.76 mln Turnover 134.54 mln vs 100.63 mln Other income 1.02 mln vs 920,000 Shrs 125 mln vs same. NOTE - Company paid total 37 cents in previously declared quarterly divs vs 15. Net is after tax 173,000 dlrs vs 285,000, interest 9.67 mln vs 8.05 mln and depreciation 11.76 mln vs 9.59 mln.
The Bank of England does not favour the introduction of rules to shield companies from hostile takeover attempts, its governor, Robin Leigh-Pemberton, said. Instead, merchant banks advising bidding companies must show restraint and responsibility to avoid the excesses that have marred recent takeovers, he told the Yorkshire and Humberside Regional Confederation of British Industries' annual dinner. Leigh-Pemberton also called on companies to improve ties with institutional investors, suggesting representatives of those institutions be granted seats on the boards of directors of companies they invest in. "Boards cannot expect protection from unwelcome predators, for that is but a short step from saying that they should be protected from their own shareholders -- who are, after all, the proprietors of the company," Leigh-Pemberton said. He added takeovers and mergers had an important role to play in furthering economies of scale, integration and more efficient market penetration. "The degree of success or failure (of a takeover) has not in my experience depended on whether or not the takeover was contested," he said. Leigh-Pemberton noted there had been excesses in takeover activity in the recent past. "The aim is to pressurise a company's management into action dedicated solely to a favourable impact on the share price in the short-term, partly or even primarily at the expense of the future," he said. Such bids "often depend for their success on creating a highly-charged and artificial situation in the share market, and give rise to temptations, on both sides of the battle, to engage in aggressive, even manipulative tactics that are immensely damaging to the interest of the shareholders," he said. In a clear reference recent events, he said "those in the City who act for companies or individuals .. Must, I suggest, be ready to accept a full measure of responsibility -- even if it entails opprobrium -- for the transactions that may result." They "should exercise the most careful judgment at the outset with respect to the clients for whom they act and the activities contenplated. Those who sow wind cannot expect the whirlwind to visit elsewhere," he added.
Prime Minister Brian Mulroney said he held "frank" discussions with the Canadian province premiers on the pace of free trade talks with the United States, but the longstanding issue of provincial ratification remains to be settled. Speaking to reporters after nearly five hours of meetings with the 10 premiers, Mulroney said further discussions would be held in June and September to discuss the role of the provinces in approving any new trade deal. But he maintained progress was being made in the sweeping talks with the Unites States that got under nearly two years ago. "It appears reasonable progress is being made (in the talks)," Mulroney said. Alberta Premier Don Getty agreed, "Things are running pretty quickly now." The talks, launched by Mulroney's Progressive Conservative government after concerns about protectionist sentiment in the U.S., are aimed reducing the remaining barriers between the world's largest trading partnership. But the provinces are expected to play a major role in any new trading arrangement, and some of the provincial leaders complained of a lack of progress on reaching a ratification formula. "It's my view that we should be thinking about these things right now, along with the questions of the substance of the agreement," commented Ontario Premier David Peterson, who has been highly critical of the talks in the past. But Newfoundland Premier Brian Peckford said an agreement was more likely to emerge by consensus and there would be no need for a "hard and fast formula." Peckford said it appears Canada is prepared to make concessions to the United States on financial services in order to make inroads on other bargaining areas, such as agriculture. Canadian published reports, quoting government sources, say the two countries are close to reaching a trade deal and it will involve eliminating border tariffs and many non-tariff barriers over the next 10 to 12 years. A rough draft of the accord is expected to be presented to the premiers at the June meeting while the finished document is hoped to be presented to Congress in October. "It's a very tight time frame," Ontario's Peterson said last night. "But at this moment it is tough to say what will transpire."
Shr profit eight cts vs loss 10 cts Net profit 622,000 vs loss 564,000 Revs 7,508,000 vs 1,913,000 Year Shr profit 15 cts vs loss 28 cts Net profit 933,000 vs loss 1,548,000 Revs 19.8 mln vs 4,799,000
Concorde Ventures Inc said it has signed a letter of intent to acquire Englewood, Colo., homebuilder Winley Inc for 12 mln common shares. The investment company said after the merger the combined company will have 15 mln shares outstanding. For the year ended January 31, Winley earned 116,000 dlrs pretax on revenues of 11.7 mln dlrs.
Telco Systems Inc said its plan to distribute a dividend of common stock purchase rights to shareholders of record on March 16 has been delayed pending the completion of necessary regulatory approvals.
The Panamanian bulk carrier Juvena is still aground outside Tartous, Syria, despite discharging 6,400 tons of its 39,000-ton cargo of wheat, and water has entered the engine-room due to a crack in the vessel bottom, Lloyds Shipping Intelligence Service said. The Juvena, 53,351 tonnes dw, ran aground outside Tartous port basin breakwater on February 25 in heavy weather and rough seas.
The EC Commission said it was adopting an "open attitude" about whether a system of production quotas should remain for the indefinite future on heavy steel products which account for about 45 pct of all EC steel goods. In a statement, the Commission reiterated its view that the industry needs to lose between 25 and 30 mln tonnes of capacity by 1990. It had previously said the quota system, started in 1980, should be wound up completely by the end of next year. The industry has argued for the maintenance of existing quotas, which cover almost 70 pct of all output, saying almost all steelmakers are losing money due to the depressed market.
Phillips Petroleum Co will emphasize improving its short-term cash flow this year to pare its debt, C.J. "Pete" Silas, chairman, told Reuters in an interview. "Our priority is to get cash flow increased from the assets already installed," he said, but he declined to estimate annual cash flow for 1987. Analysts estimate Phillips" cash flow at over one billion dlrs for 1987, while long term debt, which resulted from restructuring to find off corporate raiders in 1985, hovers about 5.9 billion dlrs as of December 1986. Silas said Phillips hope to achieve its goal by raising the capital expenditures budget to develop its oil and gas properties. "We plan to develop the properties with short-term high cash flow prospects," he said. He projected a capital expenditure budget of 730 mln dlrs, up from the 1986 expenditure of 655 mln dlrs. Nearly half of that will be spent on exploration and production, and most of that will be spend overseas, Silas said. "Phillips' top priority in 1987 will be to get the waterflooding in Norway and jack up the (Ekofisk) oil fields to improve our ability to extract oil and increase earnings," Silas said. Phillips estimates that the project, which is expected to cost 1.5 billion dlrs, will increase recovery by 170 mln gross barrels of oil over a period of 24 years. Phillips is also pursue opportunities in China where Silas said he was seeking "a modification of terms with the Chinese government to make oil discoveries (in the offshore Xijang fields) commercially viable." In the U.S. Silas said Phillips hopes to get the Point Arguello, Calif., field started up by the fourth quarter. "We expect to start up the first platform then," Silas said. But emphasis on short-term cash flow has also forced the company to part with several oil and gas assets. Phillips sold its interests in the T-Block in the U.K. North Sea and U.S. reserves totaling about 1.3 billion dlrs in 1986 as part of a two billion dlrs asset sales program that is now completed, Silas said. "We sold high cost producing assets. They were not good value for us but possibly so for someone else," Silas said. Silas said the 1986 assets sales will not affect earnings for the company. "Everything we are doing is to manage our cash flow and we are using that to manage our debt. Even the asset sales, while regrettable, were necessary to reduce debt," Silas said. He said no asset sales are planned this year as long as oil prices don't fall sharply lower and stay at lower levels for several months. "Then, everyone would be looking at sales (of assets), and we're no different from the others," Silas said. In other areas, Silas looks for improved earnings from Phillips chemical operations, which provided 299 mln dlrs in earnings for 1986, up from 219 mln dlrs in 1985. "This was our second best year pushed by a good supply and demand balance for products, low feedstocks and energy costs for our operations," Silas said, "In 1987 we think the market's supply and demand balance will be just as good but feedstock and energy costs will rise due to price recovery."
The White House welcomed the February retail sales figures showing a 4.1 pct rise, following a slow performance in January. Spokesman Marlin Fitzwater told reporters: "The February sales growth was broad-based and good news for the economy." Commerce Department figures showed a larger than expected rise following depressed levels of sales and factory orders in January.
An agreement in the debt rescheduling talks between the Philippines and its commercial bank advisory committee seems to be close at hand, said David Mulford, Assistant Secretary of the U.S. Treasury. "The Philippines negotiations resumed in early March and agreement now appears to be very near," Mulford told a debt conference, organized by the Euromoney magazine. Mulford gave no further details. He told reporters after his speech that he had no information on the banks' response to the Philippines' revised proposal, based on partial payment of interest with investment notes instead of cash. Progress in the Philippines talks, following recent agreements with Mexico, Chile and Venezuela, will help to dispel concerns of a new debt crisis, Mulford told the conference. However, he said there will continue to be difficulties and periods of significant risk, requiring creative thinking on the part of the banks. In particular, he urged the banks to develop a "menu of options for supporting debtor reforms as a means of maintaining broad bank participation in new financing packages." Mulford said the banks should be able to offer a range of options to members of the lending syndicates, provided that the liquidity value of the total transactions to the debtor nations is equivalent to the banks' new money obligation. He said it is more important to find ways of encouraging banks to remain in the syndicates than to find ways of enabling them to quit the lending groups. Mulford said his menu of options could include more trade credits, direct portfolio investments, debt/equity swaps, project loans, co-financings and the invesmtent note concept, which has been proposed by the Philippines.
Norsk Hydro is issuing a 100 mln dlr bond due April 9, 1997 carrying a coupon of 8-1/4 pct and priced at 101-5/8, said Swiss Bank Corp International as lead manager. The issue is non-callable and will be listed on the London Stock Exchange. Payment date is April 9. Fees for the issue include a 1-1/4 pct selling concession and a 3/4 pct combined management and underwriting fee. The securities are available in denominations of 5,000 dlrs each. They are priced to yield 97 basis points over 10-year U.S. Treasury notes.
Instinet Corp said its board has
scheduled a special shareholders' meeting for May 21 to vote on
its proposed merger into Reuters Holdings PLC
The European Community's, EC, cereal management committee granted export licences for 5,000 tonnes of quality soft bread-making wheat at a maximum export rebate of 134.75 European currency units, Ecus, per tonne, traders said. The committee also granted export certificates of 35,000 tonnes of barley at 137.35 Ecus per tonne, but rejected all bids for the export of soft feed wheat, they said. Certificates were also granted for the export of 15,000 tonnes of maize at a maximum rebate of 132.90 Ecus per tonne, the traders said.
Waste Management Inc said it
received notice of early termination of the Hart-Scott-Rodino
waiting period for its 270 mln dlr takeover bid for Chemlawn
Corp
The Indian State Trading Corp bought one, or possibly two, 6,000 tonne cargoes of Malaysian refined bleached deodorised palm olein at its vegetable oil import tender today for Mar 15/Apr 15 shipment at 355 dlrs per tonne cif, traders said.
Budapest Bank Rt has become the first of the commercial banks operating since January to issue bonds to expand its resources, the official Hungarian news agency MTI said. The seven-year bonds totalling 500 mln forints may be taken up by companies, cooperatives and enterprises, MTI said. The interest rate will always be 0.5 points above that charged to commercial banks by the National Bank of Hungary for loans exceeding one year. This year's rate will thus be 11 pct. The funds raised will be used to increase the bank's investment loan offer for small and medium-sized companies.
Shr 67 cts vs six cts Net 1.6 mln vs 131,630 Revs 6.5 mln vs 4.5 mln Year Shr 85 cts vs 19 cts Net 2.0 mln vs 427,749 Revs 25.1 mln vs 17.4 mln NOTE: 1986 net includes 1.4 mln dlrs in tax loss carryback. Reuter Inc is a spindle maker. It is not connected with Reuters Holdings PLC.
U.S. Agriculture Secretary Richard Lyng said the Reagan administration had not decided on offering the Soviet Union subsidized wheat but that such an offer had not been ruled out. In an interview with Reuters, Lyng also said that he had no knowledge of any upcoming discussion of the matter within the cabinet. Asked if the administration had ruled out offering to subsidize wheat exports to the Soviet Union under the department's export enhancement program, Lyng said, "No. We haven't made a decision on it, haven't even talked about it, haven't even looked at it." Reminded that there have been reports that Moscow would buy U.S. wheat if competitively priced, Lyng responded, "If they (the Soviets) would offer to buy some wheat, would we accept it? It would depend on what price they offered." Lyng added that he did not think the price of U.S. wheat was far off the world price. Asked about persistent speculation that the administration would offer Moscow a wheat subsidy, Lyng said, "Some people think they're doing it to see if they can get a little spurt in the market." Agriculture Undersecretary Daniel Amstutz last week asked the Commodity Futures Trading Commission to investigate reports that wheat prices were being manipulated by reports that a U.S. wheat subsidy offer was imminent.
Financial and industrial holding company Nord Est plans to make a convertible bond issue for a total of 400 mln francs, President Gustave Rambaud said. He told a news conference Nord-Est expected to receive approval from the Bourse supervisory body COB in the next two week, when terms would set according to market conditions. He said the issue was meant to boost capital ahead of new investments. Rambaud said the company would pay a 1986 dividend of 5.25 francs, unchanged on 1985. Parent company net profit last year rose to 99.5 mln francs against 71.1 mln in 1985. Provisional consolidated profits were lower at 185 mln francs compared with 200 mln in 1985, of which 120 mln, against 147 mln, was attributable to the group. He said the lower profit was mainly due to losses made by steel-tube maker Vallourec, in which Nord Est has a 12.5 pct stake. Rambaud said he forecast a 1987 parent company net profit before provisions of around 135 mln francs.
U.S. Agriculture Secretary Richard Lyng said he was not sure a long-term U.S.-Soviet grain agreement would be worth extending when it expires next year. "It hasn't been worth much in the last two years....They haven't lived up to the agreement as I see it," Lyng said in an interview with Reuters. "It would be my thought that it's not worth any effort to work out an agreement with someone who wants the agreement to be a one-sided thing," he said. However, Lyng said he did not want to make a "definitive commitment one way or another at this point." Under the accord covering 1983-88, the Soviets agreed to buy at least nine mln tonnes of U.S. grain, including four mln tonnes each of corn and wheat. Moscow bought 6.8 mln tonnes of corn and 153,000 tonnes of wheat during the third agreement year, which ended last September, and this year has bought one mln tonnes of corn. Lyng said he had no knowledge of how much U.S. grain Moscow would buy this year. "I've seen people making comments on that and I don't know how they know, unless they talk to the Soviets," he said. "I have no knowledge, and I really don't think anyone other than the Soviets have any knowledge." Lyng said he thought the Soviets bought U.S. corn last month because "they needed it and because the price was right." "Our corn has been pretty reasonably priced. And I think they've always found that our corn was good," he said.
Shr loss 1.5 cts vs loss five cts Net loss 17,334 vs loss 51,507 Sales 245,560 vs 179,839 Six mths Shr profit four cts vs loss 17 cts Net profit 47,749 vs loss 174,373 Sales 721,937 vs 284,809
Standard and Poor's Corp said it affirmed the ratings on W.R. Grace and Co's 575 mln dlrs of debt following its fourth-quarter 1986 loss of 560 mln dlrs. Affirmed were the company's BBB-minus senior debt, BB-plus subordinated debt and A-3 commercial paper. S and P pointed out that the fourth-quarter loss resulted from the write-off of nearly 600 mln dlrs in assets, especially in agricultural chemicals and natural resources. Because that write-off had no effect on Grace's cash, S and P affirmed the current ratings, noting that Grace intends to sell its agricultural business. Proceeds from the sale of the agricultural segment could be used to reduce Grace's debt, Standard and Poor's said. However, S and P said it is less clear whether Grace can also extricate itself from the project debt from its phosphate mining joint venture at Four Corners. Despite today's rating affirmation, S and P cautioned that Grace has greater-than-usual vulnerability to rating change in the next year or two. "Uncertainty abounds as to the firm's future ownership, management and direction," the rating agency said.
Argentine Vegetable oils shipments during January/November 1986 totalled 1,693,951 tonnes, against 1,469,208 tonnes in the same 1985 period, the Argentine grain board said. The breakdown was: cotton 4,000 (27,900), sunflower 929,847 (816,727), linseed 113,827 (132,954), groundnutseed 26,248 (25,508), soybean 603,335 (448,344), tung 8,402 (10,633), olive 2,234 (3,465), maize 6,058 (3,677), rapeseed nil (nil), grape nil (nil), the board added. Shipments during November 1986 amounted to 138,257 tonnes, against 109,250 tonnes in the same month of 1985. The breakdwon was, in tonnes, cotton nil (nil), sunflower 27,715 (43,064), linseed 5,228 (4,473), groundnutseed 819 (3,647), soybean 104,314 (56,901), tung 20 (nil), olive 161 (858), maize nil (307), rapeseed nil (nil), grape nil (nil), the board said. The ten principal destinations during January/November 1986, with comparative figures for the same 1985 period in brackets, were, in tonnes: Holland 201,660 (204,391), Iran 182,042 (181,228), Soviet Union 163,150 (266,389),Egypt 158,119 (159,350), Algeria 116,330 (11,492), Brazil 101,116 (59,430) , South Africa 94,700 (101,062) , Cuba 89,957 (98,740) , United States 80,109 (nil), India 67,182 (17,403), the board added.
Phillips Petroleum said it raised the
contract price it will for all grades of crude oil 50 cts a
barrel, effective today.
The increase brings Phillip's posted price for the West
Texas Intermediate and West Texas Sour grades to 17.50 dlrs a
bbl.
Phillips last changed its crude oil postings on March 4.
The price increase follows similar moves by USX's
Oper shr loss 48 cts vs profit 50 cts Oper net loss 11.3 mln vs profit 18.1 mln Revs 262.8 mln vs 399.7 mln Note: 1986 net excludes tax gain of 1.1 mln dlrs or three cts shr vs yr-ago gain of 5.6 mln dlrs or 17 cts shr. 1986 net includes 15 mln dlr charge for reduction in carrying value of refinery and related assets. 1985 net includes 10.8 mln dlr gain on sale of Canadian natural gas property. U.S. dlrs.
The U.S. Agriculture Department said private U.S. exporters reported purchases from foreign sellers of 120,000 tonnes of wheat for delivery to unknown destinations. The wheat, consisting of 60,000 tonnes of hard red winter and 60,000 tones of soft red winter, is for delivery during the 1987/88 season, which begins June 1. A purchase from a foreign seller is a transaction in which a U.S. exporter contracts to buy U.S.-produced commodities from a foreign firm, the department said.
Implementation of a one-year 0/92 pilot program for wheat and feedgrains was strongly promoted today by the chairman of a key house agriculture subcommittee as a way to cut farm costs and simultaneously give farmers another option when making their planting decisions. "We have a budget driven farm policy. It may be a shame, but we are locked into this," said Dan Glickman, (D-Kans.), chairman of the subcommittee on wheat, soybeans and feed grains. "We need to look at ways to cut costs and not hurt the farmer. A 0/92 plan, if properly done, could do both." Glickman announced this week plans to introduce a 0/92 bill for 1987 and 1988 wheat and feedgrains. An aide to Glickman said that it will probably be introduced next week. Glickman said a 0/92 program, which allows a farmer to forego planting and still receive 92 pct of his deficiency payment, would not be a major revision of the 1985 farm bill -- only an extension of the 50/92 option already provided under the current bill. It is premature to make any major changes in the farm bill, he said, but if agriculture has to make further cuts to meet budget goals, a voluntary 0/92 plan would be better than sharply cutting target prices, as USDA has proposed. A 0/92 plan, however, would not be decoupling, but simply a different type of acreage diversion program, Glickman said. Decoupling -- delinking planting decisions from government payments -- is too much of a policy change to approve at this point, he said. "I don't think there is any interest in pursuing a decoupling bill this year. Period. Unequivocal," Glickman said at the hearing. Sen. Rudy Boschwitz (R-Minn.), cosponsor of the Boren/Boschwitz decoupling plan, said he supports a short term 0/92 program as a move to a more permament decoupling plan. Boschwitz plans to introduce a 0/92 plan in the senate. His plan would guarantee a certain deficiency payment to participating farmers, require that idled acreage be put to conservation use only, prohibit haying and grazing on extra idled acreage, limit participation to a certain number of acres in a county and provide tenant protection provisions. "I know we cannot obtain complete decoupling in 1987, but we can at least move in that direction," Boschwitz said. Robbin Johnson, vice president of Cargill, Inc., testified in favor of decoupling. Decoupling would end the current bias in U.S. farm policy towards overproduction and reduce farmers' dependency on the government, he said. A 0/92 plan does not go far enough in decoupling, Johnson said, and would still encourage farmers to plant. Officials from the National Corn Growers Association and the National Cattlemen's Association said their groups oppose any 0/92 or decoupling plan due to concerns about reopening the farm bill and creating more confusion among farmers. But when asked if his association were forced to choose between a ten pct cut in target prices or a 0/92 program, Larry Johnson of the Corn Growers said they would agree to 0/92 rather than take sharp cuts in target levels.
Shr loss two cts vs profit 10 cts Net loss 79,000 vs profit 507,000 Revs 10.6 mln vs 2,238,000 12 mths Shr profit two cts vs profit 23 cts Net 89,000 vs 1,130,000 Revs 21.4 mln vs 7,766,000
Shr 53 cts vs 34 cts Net 2,253,742 vs 1,332,652 Avg shrs 4,251,553 vs 3,932,064
A marketing loan for U.S. wheat, feedgrains and soybeans would do nothing to help the surplus production situation and would be extremely costly, Sen. Rudy Boschwitz (R-Minn.) said. "I think I would not support a marketing loan now," he told the House agriculture subcommittee on wheat, soybeans and feedgrains. Boschwitz was one of the original supporters of a marketing loan for cotton and rice, but has since focused support on decoupling legislation, the Boren/Boschwitiz bill. A market loan for grains and soybeans would encourage more production, especially in high-yielding areas, would be much more expensive than the current cotton and rice marketing loans and not increase exports significantly, he said.
AmVestors Financial Corp said it declared a 25 pct stock dividend payable June 19 to holders of record June one, subject to an increase in authorized shares. It said shareholders will vote at the April 23 annual meeting to increase authorized shares to 25 mln from 10 mln. The company also said it plans to pay an initial quarterly dividend of five cts a share on the shares.
president jaime lusinchi defended the 20.3 billion dlr debt rescheduling accord his government recently signed, saying it will open new credit flows and bring needed foreign investment to venezuela. In his annual state of the nation speech, lusinchi also said venezuela supports other latin american debtors, despite having reached a rescheduling accord on its own. In the 90-minute speech to the congress, lusinchi summed up the achievements of his administration, which took office in february 1984. He pointed to the 3.3 pct growth in non-oil gdp in 1986 and to a "moderate" 12 pct inflation rate. Lusinchi said the 20.3 billion dlr debt rescheduling signed feb. 27 put an end to a process which had been 'the calvary of our nation over the post four years.' In the refinancing accord, he said, venezuela managed to achieve 'the most inmportant thing, which is the reopening of financial flows from abroad, essential for the financing of development and the (financing) of trade and investment.' Once all the details of the agreement are finalized, he said, venezuela will seek new financing for the imported components of new development projects. "our intention is not to continue being net exporters of capital, but to protect our balance of payments with a flow of capital towards venezuela," he said. Under the agreement signed february 27, venezuela extended payments on the debt from 12 to 14 years, while the interest rate was lowered from 1 y 1/8 to 7/8 of a pct over libor. At the same time, payments over the next three years were lowered from 3.450 to 1.350 billion dlrs. Lusinchi defended the rescheduling accord against critics who said it merely deferred the weight of payments to future governments.
Brazil's state-oil company, Petrobras, cancelled a 40 mln dlr crude oil purchase from Saudi Arabia after the Saudis refused to accept credit guarantees from the Bank of Brazil, a Petrobras official said. Export director Carlos Santana told a press conference the Saudis were the first suppliers of oil to impose such conditions after Brazil's decision to halt interest payment of its commercial debts last month. The shipment of 2.2 mln barrels represents two days of oil consumption in Brazil. But Santana said if the Saudis change their minds and decide to respect the terms of the contract, then Petrobras will lift the order to cancel the shipment. Santana said if the Saudis do not accept Brazil's terms by Monday then Petrobras will negotiate elsewhere. "Petrobras has been Saudi Arabia's traditional client since 1955. If they do not accept our conditions now, it will be much better for us, because with the market prices more or less the same, buying from Iraq and China is an advantage," he said. Iraq and China have barter deals with Brazil, importing Brazilian goods in exchange for oil, but the Saudis buy nothing from Brazil, he said. Santana said despite a strike threat by oil industry workers and a two-week stoppage by Brazilian seamen, Petrobras oil stocks are "reasonably balanced." Saudi Arabia is Brazil's second biggest oil supplier, with an average 115,000 bpd. Iraq is the main supplier with 235,000 bpd. China comes third, with 58,000 bpd. "If the Saudis wish to stop our trade relationship, fine, I am sure that if they do, we will be getting dozens of offers from elsewhere," Santana added.
There were no shipments of U.S. grain or soybeans to the Soviet Union in the week ended March 12, according to the U.S. Agriculture Department's latest Export Sales report. The USSR has purchased 1.0 mln tonnes of U.S. corn for delivery in the fourth year of the U.S.-USSR grain agreement. Total shipments in the third year of the U.S.-USSR grains agreement, which ended September 30, amounted to 152,600 tonnes of wheat, 6,808,100 tonnes of corn and 1,518,700 tonnes of soybeans. Shipments to the USSR in the second year of the agreeement amounted to 2,887,200 tonnes of wheat and 15,750,100 tonnes of corn.
Gerber Scientific Inc said its GST Acquisition Corp purchased 444,646 shares of its 84 pct owned Gerber Systems Technology pursuant to a January 15 tender offer. Following the purchase, Gerber made a capital contribution to GST of all the shares it owned resulting in 95.6 pct ownership by GST.
United Medical Corp said it it has requested a meeting of holders of its Swiss Francs 30 mln 5-1/8 pct convertible subordinated notes due 1991. The meeting has been requested in order to amend the negative pledge and financial covenants which have proved to be too restrictive in light of the company's activities, it said. United also said it plans to acquire some of these notes to reduce its exposure to foreign exchange fluctuations.
China's grain exports in January totaled 386,157 tonnes, down 22.1 pct from January 1986, customs figures show. They gave no detailed breakdown. The official China Economic News quoted the figures as showing tea exports rose 9.7 pct to 8,474 tonnes during the month. Imports of wool rose 117.6 pct to 10,248 tonnes over the same period, the figures show.
The Reserve Bank of Australia said it would offer 500 mln dlrs of 13-week treasury notes and 200 mln dlrs of 26-week notes for tender next week The Bank said it would take up 300 mln dlrs of the 13-week notes at the average yield. It is not taking up any 26-week notes.
Swiss wholesale prices fell by 0.3 pct in February, giving a drop of 4.3 pct from February 1986, the Federal Office of Industry, Trade and Labour said. Prices had been unchanged in January, giving an annual drop of 4.6 pct. They fell by 2.6 pct in the year to February 1986. The wholesale price index, base 1963, stood at 168.5 in February from 176.1 last year. The office said the fall was largely due to lower prices for energy, raw materials and semi-finished goods. Consumer goods prices rose slightly.
Group shr 53 yen vs 22 Net profit 3.58 billion vs profit 1.47 billion Pretax profit 4.94 billion vs loss 248 mln Operating profit 5.36 billion vs profit 789 mln Sales 127.34 billion vs 130.22 billion Nine months ended January 15 Group shr 134 yen vs 119 Net 9.10 billion vs 8.03 billion Pretax 19.78 billion vs 14.77 billion Operating 17.35 billion vs 16.00 billion Sales 430.06 billion vs 446.26 billion
The National Australia Bank's Hong Kong branch is planning a 75 mln Australian dlr floating rate certificate of deposit (CD) issue, banking sources said. The three-year issue, which matures April 9, 1990, is in two tranches. Tranche A of 50 mln dlrs carries interest at 30 basis points below one-month bank bill rate, payable monthly, and tranche B of 25 mln dlrs carries interest at 25 basis points below three-month bank bill rate, payable quarterly. Fee for co-managers is 1/8 pct. Lead manager is BT Asia Ltd, and syndication is expected to close on March 16.
South African year-on-year producer price inflation fell to 14.9 pct in January against 16.4 pct in December, Central Statistics Office figures show. The all items index (base 1980) rose a monthly 0.8 pct in January to 233.9, after also rising 0.8 pct in December to 232.1. A year ago the index stood at 203.6 and year-on-year producer price inflation at 22.2 pct.
A total of 1.886 mln hectares was sown to wheat in Britain, excluding Northern Ireland, up to December 1, 1986 for the 1987 crop, a Ministry of Agriculture census shows. It compares with 1.925 mln planted in the same period 1985. The barley area was unchanged at 952,000 ha, but oilseed rape increased to 393,000 from 333,000 ha.
State-owned Indian Railway Finance Corporation's first ever bond issue has been oversubscribed by 3.5 to 6.0 billion rupees, brokers said. The 2.5 billion rupee issue consisted of 10-year maturity bonds of 1,000 rupees each, earning 10 pct tax free interest. They were listed for subscription on major stock exchanges from March 2 to March 7. The Corporation has sought Finance Ministry permission to retain the entire oversubscribed amount, brokers said. "The collection of such a large amount within just one working week is a record for the Indian capital market," one broker said.
Brazil's state oil company Petrobras has cancelled a 40 mln dlr crude oil purchase from Saudi Arabia after the Saudis refused to accept credit guarantees from the Bank of Brazil and did not disclose reasons, a Petrobras official said. Export director Carlos Santana told reporters the Saudis were the first suppliers of oil to impose such conditions after Brazil's decision to halt interest payment of its commercial debts last month. The shipment of 2.2 mln barrels represents two days of consumption. He said the Saudis reported they would no longer accept letters of credit from the Bank of Brazil or even from Saudi banks and that Brazil would have to obtain credit guarantees from leading international banks. In February, Brazil had contracted to buy 125,000 bpd from the Saudis until June. Saudi Arabia is Brazil's second biggest oil supplier, with an average 115,000 bpd. Iraq is the main supplier with 235,000 bpd. China comes third, with 58,000 bpd. "If the Saudis wish to stop our trade relationship...I am sure that if they do, we will be getting dozens of offers from elsewhere," Santana added. Santana said if the Saudis change their minds and decide to respect the terms of the contract, then Petrobras will lift the order to cancel the shipment. The Saudis had put similar conditions on a previous shipment, he added. "We telexed them saying that if they insisted, we would rather cancel the contract and buy the product elsewhere," Santana said. After Petrobras threatened to cancel the contract, the Saudis changed their minds and decided to accept the Bank of Brazil's credit guarantees, he said.
The U.S. Is to lend Sudan 57 mln dlrs to buy 309,000 tonnes of wheat and 73,000 tonnes of wheat flour, according to an agreement signed here. Under the agreement Sudan will receive 50 mln dlrs for the commodities and the rest for sea transportation. The loan is repayable in 40 years, including a 10-year grace period. Interest will be two pct for the grace period and three pct over the repayment period of 30 years.
Oesterreichishce Kontrollbank AG is issuing a 100 mln Canadian dlr eurobond due March 20, 1997 at nine pct and priced at 101-7/8 pct, Morgan Guaranty Ltd said as joint book-runner with LTCB International. The bond is available in denominations of 1,000 and 10,000 dlrs and will be listed in Luxembourg. Fees comprised 1-1/4 pct selling concession with 3/4 pct for management and underwriting combined.
The Finnish metal and mining group Outokumpu Oy said it will close its nickel refinery at Harjavalta in central Finland for six weeks in July and August this year due to current low prices on the nickel market. "We consider nickel prices as bad at the moment, although they have been rising slightly since January," refinery sales manager Pekka Purra said. He said the closure will mean a drop in production of 3,000 tonnes in 1987 from last year's output of 17,800 tonnes. The closure was also a move to cut labour costs as no extra staff have to be employed during holidays to keep the plant open.
Conseco Inc said it has signed a definitive agreement to acquire Western National Life Insurance Co from Beneficial Corp for 275 mln dlrs in cash. Western National had assets of 1.9 billion dlrs at the end of 1986 and 1986 premium and investment revenues. Western issues structured settlement annuities for the settlement of personal injury and damage claims and sells tax-sheltered annuities. The acquisition is subject to regulatory approval. Conseco said the acquisition would raise its assets to 2.7 billion dlrs and annual revenues to about 800 mln dlrs. Beneficial had previously announced plans to leave the insurance business. On March Three, it said it agreed in principle to sell its American Centennial Insurance Co, Beneficial International Insurance Co, Consolidated MArine and General Insurance Co Ltd, Consolidated Life Assurance Co Ltd, Wesco Insurance Co and Service General Insurance Co subsidiaries to a management-led group for 98 mln dlrs in notes mostly contingent on performance of the units and 10 mln dlrs in cash. Conseco had 1986 operating earnings of 4,968,000 dlrs on revenues of 84.9 mln dlrs.
Long delays at the railway crossing on the Kenyan border have led Uganda to re-route its coffee exports through a ferry link with the Kenyan port of Kisumu across Lake Victoria, Ugandan officials based in Kenya said. Uganda has a direct rail link with the Kenyan port of Mombasa through which it conducts 70 pct of its external trade but there is a chronic shortage of railway wagons, they said. Customs at Kisumu take less than a day compared with two to three at the Malaba rail border crossing, a Ugandan Railways official said. "Malaba is now handling only 10 pct of the trade and all the coffee and oil goes through Kisumu," he said. However, an accident recently damaged the wagon ferry which plies between Kisumu and the Ugandan port of Jinja, causing bottlenecks on the lake route too. Sources at the Coffee Marketing Board in Kampala reported delays in coffee export shipments last January due to congestion on the lake ferries. Coffee accounts for about 95 pct of Uganda's export earnings and last November President Yoweri Museveni ordered all coffee shipments to be carried by rail in order to avoid the higher costs of road haulage.
Shr two cts vs 36 cts Net 182,000 vs 3,433,000 Revs 20.1 mln vs 21.4 mln Year Shr 71 cts vs 98 cts Net 6,706,000 vs 9,275,000 Revs 85.7 mln vs 75.4 mln NOTE: 1985 net both periods includes gain 743,000 dlrs from cancellation of debt. 1986 quarter net includes reversal of 216,000 dlrs in investment tax credits.
Davis Water and Waste Industries Inc said it has restated its earnings on a pre- stock split basis for fiscal 1987's third quarter and nine months ended January 31, which were reported March 10 on a post four-for-three stock split basis. The company said its earnings per share for the third quarter on a pre-split basis, converts to 16 cts from 12 cts post-split, versus three cts pre-split from two cts post-split for fiscal 1986's third quarter. For the nine months, Davis said, earnings per share would convert to 77 cts and 44 cts for fiscal 1987 and 1986 respectively, from 58 cts and 33 cts, respectively.
Elder-Beerman Stores Corp said owners of about 70 pct of its stock have offered to take the company private by offerring 30 dlrs per share for the remaining 30 pct of its stock. The company said the proposal will be considered at a regularly scheduled board meeting on March 17. It said the offer was made by members of the Beerman family holding about 70 pct of the company's stock, Chairman Max Gutmann, and certain members of the board.
Citicorp denied financial market rumors that it has written off some of its loans to Latin American debtors, "Rumors that we have written off any of our Latin American debt are unfounded," a Citicorp spokesman told Reuters in response to London-based rumors in the money markets. Citicorp is the largest bank group in the U.S. and one of the biggest lenders to Latin America, with some eight to nine billion dlrs outstanding to Brazil, Mexico and Argentina, bank analysts said. In response to more specific market rumors that it had taken action on its exposure to Brazil, Citicorp said it made an 8-K filing on the subject with the Securities and Exchange Commission on Tuesday in relation to a registration statement for a preferred stock issue. Citing the filing, Citicorp said that Brazil's recent suspension of interest payments on 68 billion dlrs of commercial bank debt and related actions "may require Citicorp to place 3.9 billion dlrs of intermediate and long-term Brazilian loans on a cash basis." When loans are placed on a cash basis, interest or principal payments are only booked when received instead of being accrued on their due dates, analysts noted. However, Citicorp said in the 8-K filing that "it is premature to make such a decision at this time in view of the fluidity of the situation and management's high confidence in the long-term outlook for Brazil." Brazil's new central bank governor Francisco Gros met senior commercial bankers here on Wednesday and Citicorp said formal talks on Brazil's recent actions and future financing needs should begin in "the near future". Citicorp said in the filing, "the issue will be re-evaluated at the end of the first quarter." The bank group continued, "if it is decided that these loans to Brazil should be placed on a cash basis, Citicorp estimates, based on existing interest rates, that the impact in the first quarter would be approximately 50 mln dlrs after tax and for the full year would be approximately 190 mln dlrs after tax." It added that these amounts include interest accrued in 1986 that has not yet been collected. Although Citicorp denied earlier rumors of major loan writedowns, its warning that it may have to place some of its Brazilian loans on non-accrual unnerved many Wall Street investors. The common stock price was down one dlr to 51-1/8 after the first hour on a volume of over 500,000 shares. However, Lawrence Cohn, analyst at Merrill Lynch and Co Inc, said that the market's nervousness was not really warranted. "Citicorp can afford it," he said. "The amounts they are talking about are peanuts." REUTER...^M
Shr 61 cts vs 42 cts Net 6,247,000 vs 5,587,000 Rev 65.4 mln vs 53.6 mln NOTE: 1986 net includes investment gains of 25 cts a share, versus six cts a share for 1985, and extraordinary gain of seven cts a share.
The Bank of England said it gave the money market late, unspecified assistance of around 185 mln stg. This takes the total liquidity injected into the system by the bank today to 1.026 billion stg compared with a shortage it estimated at around one billion stg. Overnight interbank sterling dipped to 10 nine pct after the bank's announcement compared with levels around 10-1/2 pct shortly before and 11-1/4 11 pct initially today, dealers said.
West Germany and Sierra Leone signed an agreement to reschedule 26 mln marks of principal and interest payments on loans, the West German Foreign Ministry said. A statement said the agreement related to interest and principle and obligations from previous reschedulings due between July 1, 1986 and November 13, 1987 as well as arrears from the period up to June 30, 1986. The statement said the payments were rescheduled for 1992 to 1996 under the accord, which followed a multilateral rescheduling pact agreed by "Paris Club" creditor nations on November 19, 1986.
Moody's Investors Service Inc said it downgraded to Ba-2 from Baa-3 Southdown Inc's 140 mln dlrs of senior debt. The agency also assigned an initial rating of B-1 to the company's 90 mln dlrs of senior subordinated notes due 1997. Moody's said the action reflected increased leverage and reduced interest resulting from lower earnings. It also cited Southdown's repurchase of 28 pct of its common stock and the financing of that transaction by debt. Moody's said the lower ratings anticipate certain debt reduction in the coming year from the sale of assets.
Allegheny International Inc said Sunter Acquisititon Corp, formed by First Boston Inc, began a cash tender offer in accordance with their previously announced merger agreement for all the outsanding shares of Allegheny's common stock, 2.19 dlr cumulative preference stock and 11.25 dlrs convertible preferred stock. The offer expires April 9, unless extended. Under terms of the agreement, tendering shareholders will receive 24.60 dlrs per common share, 20 dlrs per preference share and 87.50 dlrs per preferred share. Allegheny said the offer is conditioned upon the valid tender of stock representing a majority of the voting power and at least two-thirds of outstanding shares of preference stock and preferred stock. The merger agreement was announced earlier this week.
Shr 35 cts vs 13 cts Net 531,840 vs 188,362 Revs not given Year Shr 83 cts vs 41 cts Net 1,249,000 vs 620,000 Revs 10,800,000 vs 5,600,000
Antonio Ortiz Mena, president of the Inter-American Development Bank, warned that if Latin countries were unable to speed up their economic growth, then in the long run there would be a default. He told a press conference foreshadowing the bank's annual meeting next week, "For the banks it is convenient to be repaid. But to achieve that, the countries need to grow. If they don't, then in the long run there will be a default." Ortiz Mena warned that Latin America needed to reverse the capital outflows from the region and beyond that needed more resources. Ortiz Mena declined to agree with estimates that capital outflows from Latin America last year totaled 35 billion dlrs and that therefore he was calling for an inflow into the region above that sum. He said the U.S. debt strategy, which envisaged stepped up lending by commercial and multilateral banks to major debtor nations of 29 billion dlrs over three years, was insufficient to achieve the necessary rates of growth. But he did stress the U.S. plan was important and the right approach. Ortiz Mena said, "It is in the interest of the creditors, not only the debtors, to push forward the development process in Latin America and that has happened." He added, "The only problem is the resources have not been enough." Turning to Brazil, whose growth rate he predicted will decline slightly this year from 1986, Ortiz Mena said the country's moratorium was the right action in order to avert a long term default. "So it's preferable they negotiate now," a move which would eliminate any chance of panic in the markets. Ortiz Mena also said that Brazilian authorities have opened negotiations already with commercial banks. He pointed out Brazil took the action because of its deteriorating economic situation.
Cyclops Corp said its board rejected a request by Cyacq Corp, an investor group, for more non-public information about Cyclops, a maker of specialty steels and an electronics retailer. Cyclops cited its agreement to be acquired by Britain's Dixons Group PLC for 90.25 dlrs a share under a tender offer that expires midnight March 17. Cyacq, comprising Audio/Video Affiliates Inc, Citicorp Capital Investors Ltd and other investors, yesterday said it would increase its tender offer for Cyclops to 92.50 dlrs a share from 80 dlrs, subject to certain conditions. The conditions were that Cyclops provide Cyacq with non-public data given to Dixons and that Cyacq be satisfied with financial projections made by Dixons in its offer. Cyclops also said its board determined that Cyacq's announcement was not an offer. "Cyacq's press release does not amend Cyacq's outstanding tender offer which remains at 80 dlrs per share and it does not state that Cyacq has financing commitments necessary to carry out its original offer or any increased offer that it may make," Cyclops said in a statement. Its agreements with Dixons are binding and Dixons indicated it will not rescind or waive any provisions of the pacts, Cyclops said. The company also said it was advised that Dixons' shareholders approved the merger, satisfying that condition of the agreement.
Mobil Corp increased net proven reserves of natural gas liquids in 1986 from the previous year according to data in its 1986 annual report. The report states that total net proved reserves at year's end stood at 2.5 billion barrels, an increase of 94 mln barrels or four pct above the previous year and detailed data show that the gains resulted from an increase in net proved reserves of natural gas liquids. Mobil said gains were in Indonesia where a sixth production facility began operation in October with a capacity to manufacture 1.7 mln tonnes of liquified natural gas. The company also said that new capacity brought onstream last year replaced 120 pct of Mobil's production, which declined by about four pct in 1986 from the previous year. Detailed data on reserves shows that U.S. net proved reserves of crude oil fell to 837 mln barrels from 853 mln barrels in 1985, natural gas liquid reserves were also lower in 1986 from the previous year. Net proved crude oil reserves also fell in Canada to 224 mln barrels and in Europe to 403 mln barrels from the previous year's level of 231 mln barrels and 439 mln barrels, respectively.
Shr loss 48 cts vs loss 10 cts Net loss 1,234,000 vs loss 259,000 Revs 715,000 vs 1,941,000 Year Shr loss 1.26 dlrs vs loss 34 cts Net loss 3,229,000 vs loss 870,000 Revs 3,001,000 vs 9,767,000 NOTE: 1986 net both periods includes 672,300 dlr writedown of value of seismic laboratory and 165,000 dlr increase in reserve for doubtful accounts.
CitiCorp
The American Meat Institute, AME, said it intended to ask the U.S. government to retaliate against a European Community meat inspection requirement. AME President C. Manly Molpus also said the industry would file a petition challenging Korea's ban of U.S. meat products. Molpus told a Senate Agriculture subcommittee that AME and other livestock and farm groups intended to file a petition under Section 301 of the General Agreement on Tariffs and Trade against an EC directive that, effective April 30, will require U.S. meat processing plants to comply fully with EC standards. The meat industry will seek to have the U.S. government retaliate against EC and Korean exports if their complaints are upheld.
State-owned
Armatron International Inc said it negotiated a new seasonal line of credit with three lenders for 10 mln dlrs for working capital requirements to support its lawn and garden product line.
Authorizations to purchase 50 mln dlrs worth of U.S. wheat and wheat flour under Public Law 480 were issued to Sudan today, the Agriculture Department said. The authorization provides for 34 mln dlrs -- about 309,000 tonnes -- worth of wheat, grade U.S. number two or better (except durum which shall be number three or better). It also provides for 16 mln dlrs -- about 73,000 tonnes -- worth of wheat flour. The contracting period for both commodities is March 20 through August 31, 1987. The delivery period for wheat is March 20 through September 30, 1987 and for wheat flour is April 10 through SEptember 30, 1987, USDA said.
Prices of wholesale finished energy goods in the United States were up in February, rising by 4.0 pct after a 9.8 pct rise in January, the Labor Department said. The Producer Price Index for finished energy goods has fallen 20.9 pct in the past 12 months. Heating oil prices rose 3.0 pct in February after a 18.0 pct rise in January, the department said. Gasoline prices rose by 5.5 pct last month after a 15.7 pct January rise, the department said. Natural gas prices rose 1.8 pct after a 4.2 pct rise in January. Energy goods at the intermediate stage of processing rose 2.7 pct in February after rising 3.5 pct in January and were down 16.1 pct over the past 12 months, the Labor Department said. Prices for crude energy goods, such as crude oil, coal and gas at the wellhead, rose 2.6 pct last month after a 10.0 pct January rise. They were down 11.6 pct from February 1986, the department said. At the intermediate stage, liquefied petroleum gas prices rose 10.1 pct last month after a 5.0 pct January rise and were 41.0 pct below prices a year earlier, the department said. Residual fuel prices rose 16.7 pct in February after a 13.4 pct rise a month earlier and were off 17.4 pct in 12 months. Electric power prices fell 0.3 pct last month, after a 1.3 pct January decline, and were down 3.6 pct from a year ago. Crude oil prices rose 4.4 pct in February, after a 19.7 pct January rise and were off 21.3 pct from the year ago level. Prices of natural gas at the wellhead rose 1.8 pct in February after rising 4.2 pct a month earlier and were 14.8 pct lower than they were 12 months earlier, the department said. Coal costs were down 0.3 pct last month after rising 0.4 pct in January and were down 0.8 pct from a year ago.
Weyerhaeuser Co said it should have significant increases in earnings in 1987 and 1988 should be another very good year. Weyerhaeuser reported 1986 earnings of 276.7 mln dlrs, or 1.91 dlrs per share, on 5.65 billion dlrs in revenues. Anticipated improved cash flows will allow the company to invest and acquire much more aggressively than it has in the past few years, Weyerhaeuser also said. Weyerhaeuser, principally a lumber products company, said the forecast was made by the company's chief financial officer during a meeting of institutional investors in Tokyo. It also said its expects to see opportunities in the building products area, particularly in composite panels and in other engineered products directed toward specific, rather than commodity, end-use markets. But it said growth may be higher in added-value products, in financial services and in other diversified businesses. In addition, the company said rising product prices and demand for pulp and paper are reflected in all the major world markets, except in the case of some light-weighted paper grades where overcapacity remains a problem. Weyerhaeuser further stated that it has lowered its manufacturing cost structure and is obtaining significant productivity increases.
Infortext Systems Inc said it finalized a two-year agreement under which GTE Services Corp and eight affiliates will sell Infortext's line of personal computer-based telephone call accounting systems. GTE Services, a unit of GTE Corp, evaluated 23 competitive call accounting systems, the company said.
Qtly div 20 cts vs 20 cts previously Pay April 15 Record March 23
Borg-Warner Corp said its directors approved the sale, for about 240 mln dlrs, of its industrial products division to a New York-based private investment firm, Clayton and Dubilier Inc, and senior management of the group. Yesterday, the company said it agreed to sell the division, which has annual sales of about 300 mln dlrs and is based in Long Beach, California.
Central Bank president Francisco Gros said possible retaliation by Brazil's creditors would not be an intelligent measure because it would affect both sides. "If our creditors considered retaliation, Brazil would lose its capacity to export, thus would never be able to pay its debt," Gros said in a news conference. Gros said that during their 12-day globe-trotting tour of several countries, he and Finance Minister Dilson Funaro warned creditors that Brazil could no longer continue representing the role of merely an exporter of capital. "We made it very clear to our creditors that we must find other means to pay our debt. We told them we wish to pay but that first we must make sure that the country grows," Gros said. "We pointed out to them that in the last two years Brazil paid 24 billion dlrs just in interest rates, while only receiving two billion dlrs in new loans over a similar period." Gros reiterated that Brazil will not accept interference from the International Monetary Fund (IMF), as creditors suggested. "The performance of the IMF over the years has not been convenient to our needs. It is an important institution, but we do not accept it to monitor our economy," he said. "The banks would welcome us going to the IMF. We would welcome if they pardoned half our debt," Gros said. Brazil announced suspension of interest payment of 68 billion dlrs owed to commercial foreign banks on February 20. No deadline was established for the renewal of the payment. "Our major commitment is with the country's growth. Therefore, we need more money to invest on new projects," Gros said. He said that before the announcement of the suspension of interest payment, Brazil was paying about 500 mln dlrs a month to its commercial foreign creditors. "We can say that at least we are saving some money," he said. Gros said Brazil has not submitted specific proposals to creditors, and instead hopes that proposals would come through bilateral negotiations. The Central Bank president said he will be going next week to Washington to take part in a meeting of the Inter American Development Bank . In Brasilia, sources linked to the Presidency said Brazil was preparing a new program of economic readjustment to strengthen its negotiations on its 109 billion dlr foreign debt. The sources said the new program could be announced by the end of the month and calls basically for preservation of the country's growth.
venezuela's biggest private company, la electricidad de caracas, will meet with bank creditors in new york on monday to discuss the danger of a default on its 622 mln dlr foreign debt, a company spokesman said. "we are in an impossible situation. Unless we get government relief, the company will be bankrupt in three years," he told reuters. La electricidad's problems stem from the government's december decision to set private debt payments at 7.50 bolivars per dollar instead of 4.3. Company officials estimate that the currency change raised the debt to 4.67 billion bolivars from 2.67 billion. additional preferential dollar premiums put the total cost at 7.47 billion, not including interest payments. Under the government plan for repaying the 7.8 billion dlr private debt, the central bank will guarantee debtors their dollars at 7.5 with a premium of 4.50 per dollar. La electricidad president francisco aguerrevere will meet his bank advisory committee, led by morgan guaranty, to explain that unless government assistance is forthcoming the company cannot meet its obligations. La electricidad ceased principal payments under a five-year refinancing plan last year, althouigh interest has been paid, the officials said. They said exchange contracts, which the government no longer recognizes, were signed with the central bank for this refinancing at 4.3 per dollar. The company spokesman said the new york meeting will be held to inform the committee, representing 72 banks, of the latest developments on efforts to lobby the government. "the banks are anxious to know the situation on debt payments, but we can only tell them we are waiting for a government response to our proposals," he said. La electricidad is seeking permission for a 50 pct rate increase, which officials say would bring in an extra 1.3 billion bolivars this year. The 30 pct tariff increase introduced in january will only bring in an extra 600 mln bolivars per year against additional debt costs of 900 mln. Without relief, the company will incur losses of 287 mln bolivars this year, 556 mln in 1988, 733 mln in 1989 and 1.47 billion in 1990. In 1990 the company would be decapitalized 874 mln bolivars. As alternatives to the rate increase, the company has also proposed allowing la electricidad a grace period on payment of the exchange risk premium to the central bank, a longer period to pay it, or a soft loan from the government. The company spokesman said the government has not responded to the proposals and there have been no formal meetings since january. "if these solutions are not agreed to, we face the final resort of either the government buying the debt or the company being nationalised," he said.
Oper shr 35 cts vs 34 cts Oper net 2,313,000 vs 1,646,000 Revs 100.1 mln vs 77.3 mln Note: 1986 net excludes extraordinary loss of 294,000 dlrs or four cts vs shr vs yr-ago loss of 579,000 dlrs or 12 cts shr. 1986 net includes non-cash loss of 1,436,000 dlrs or 22 cts shr vs yr-ago loss of 1,922,000 dlrs or 39 cts shr from depreciation and amortization allowances on U.S. cable TV operation. Fewer shrs outstanding.
A decision by Colombia to open coffee export registrations for an unlimited amount does not imply the country will heavily sell coffee until recently withheld, Gilberto Arango, president of the private exporters' association, told Reuters. Colombia today opened export registrations for april and may, with the National Coffee Growers' Federation setting no limit. Since the start of the coffee year last october, private exporters were on average allowed 350,000 bags of 60 kilos per month. "Traders will initially interpret this measure as announcing heavy sales. Even today it pressured the market. But it will quickly become apparent that Colombia does not intend to go over the top," Arango said in an interview. "Colombia's marketing policy is to sell without haste but consistently. No targets for volume will be set. We will react to market factors adequately. Colombia has no intention to give its coffee away," he added. Arango described measures adopted here yesterday, including a lower export registration price, as a major change in Colombia's coffee marketing policy. The export registration price, or reintegro, was lowered to 1.10 dlr per lb ex-dock new york, or 155.83 dlrs per bag of 70 kilos, from 1.35 dlrs (194.33 dlrs). The government announced a more flexible policy of reintegro, in order to closely reflect market trends, which arango warmly welcomed saying private exporters will undoubtedly be more actively present in the market. A frequent gap between international market prices and the reintegro was unlikely to recur, he said.
Negotiators at a United Nations conference on a new International Natural Rubber Agreement (INRA) have agreed on basic elements in a new pact, conference chairman Manaspas Xuto said. "We have resolved major differences of opinion," he told Reuters. Xuto said the way is now cleared for drafting a new accord, to replace the current one which expires in October. Xuto said: "I welcome the friendly and cooperative atmosphere that has prevailed without interruption" since the talks began last Monday. "It is my hope that delegations will go back home and try to ratify the new agreement," he added. The renegotiation conference, under the auspices of the U.N. Conference on Trade and Development (UNCTAD), is the fourth such meeting in two years. Xuto said producers and consumers had agreed on four points: 1) Regular price reviews will be held every 15 months. Previously consumers were proposing 12-month intervals between price reviews instead of 18 in the current pact. 2) If the average of the daily market indicator prices over six months prior to a review is below (or above) the lower intervention price (or the upper intervention price), the reference price will be automatically revised downwards (or upwards) by five pct unless the International Natural Rubber Organisation council decides on a higher percentage. If buffer stock purchases or sales reach 300,000 tonnes, the reference price will be lowered or raised by three pct unless the council decides on a higher percentage. 3) If the buffer stock reaches 400,000 tonnes, the price at which the additional contingency stock of 150,000 tonnes is brought into operation will be two Malaysian/Singapore cents above the floor price -- or 152 cents. 4) The floor price will not be breached. Throughout the talks producers had adamantly resisted a consumer proposal to lower the floor price of 150 cents if the buffer stock, currently 360,000 tonnes, rose to 450,000 tonnes. The proposal, initiated by the U.S., Was withdrawn last night, setting the stage for compromise. Legal drafting of provisions will start next week and formal adoption of the new accord by the 40 countries taking part in the conference is expected to take place on March 20. The current conference was widely seen as the last chance to clinch a deal. Three previous attempts to negotiate a new five- year pact had failed, the last round breaking down in October over consumer demands for tighter controls of the buffer stock. The United States, Japan, West Germany, France, Italy and Britain are the major consumers. UNCTAD's latest estimates project an increase of 8.5 pct in rubber prices this year and 4.1 pct in 1988.
India will get 104.65 mln stg as
grants from Britain to develop its coal, zinc and lead
industries, the British Information Services said in a
statement.
It said a 31 mln stg grant would be disbursed over three to
four years under an agreement signed here yesterday between the
Indian Finance Ministry and the British Overseas Development
Administration.
The British grants for developing the Indian coal industry
using British mechanised longwall technology totalled 52 mln
stg in the past 10 years, it said.
Under a separate agreement, the British government agreed
to provide 73.65 mln stg as a grant to develop a zinc and lead
mine at Rampura-Agucha and an associated smelting complex at
Chaneriya, both in India's northern state of Rajasthan, the
statement said.
The grant will finance the basic engineering for the
smelter complex to be undertaken by Britain's
U.S. Commerce Secretary Malcolm Baldrige predicted Congress will pass a reasonable trade bill this year and said tough protectionist legislation could prompt a trade war. "The mood of the Congress right now is as tough on trade as I've ever seen it in six years in Washington," Baldrige said in a television interview. "I think we'll still be able to get a reasonable trade bill out in spite of that because the whole Congress is trying to work together with the administration, but there is a hardening trade attitude," he said. President Reagan opposes protectionist legislation, but agreed to support a trade bill when it became apparent that opposition Democrats would pass such legislation. However, Baldrige warned measures that would penalise trading partners such as Japan, South Korea and Taiwan for failing to cut their trade surpluses with the U.S. Could lead to retaliation and he said he would urge Reagan to veto any such bill. When asked if there is a rising danger of a worldwide trade war, Baldrige said: "Yes, I don't think there's any question about that."
The cabinet has approved a finance ministry plan to raise the amount of outstanding government bonds as a percentage of the total budget in financial year 1987/88 starting July 1, to meet growing demand for funds for major construction projects, a cabinet official said. The increase would allow outstanding bonds to total 40 pct of the 1987/88 budget, up from 25 pct in the current year. He said the increase would allow the government to issue bonds worth up to about 105 billion Taiwan dlrs in the next financial year, up from 49.6 billion in the current year. The proposal will go to parliament for final approval. A finance ministry official told Reuters the increase in bond issues was necessary to finance 14 major projects, including highways, power plants, an underground railway and a receiving terminal for liquefied natural gas. Spending on major projects is expected to total more than 120 billion Taiwan dlrs in 1987/88, compared to 89 billion in the current year, he said.
Year to December 31, 1986
Net profit 78 mln N.Z. Dlrs vs 45 mln
Pre-tax profit 147 mln vs 88 mln
Total assets 7.7 billion vs 6.4 billion
Notes - The company is 100 pct owned by Lloyds Bank Plc
Shr 37.4p vs 30p. Final div 7p, making 12p vs 10p. Pre-tax profit 121.1 mln stg vs 109.3 mln. Net profit before minorities 76.6 mln stg vs 62.8 mln. Turnover 952.6 mln vs 970.1 mln. Pre-interest profit 132.1 mln vs 124.6 mln. Net interest 11 mln vs 15.3 mln. Tax 44.5 mln vs 46.5 mln. Minority interests 3.1 mln vs 5.2 mln. Extraordinary debit 9.1 mln vs credit 11.5 mln. Note - Extraordinary debit reflected full provision for discontinuing the Financial Times's printing operations at Bracken House in 1988, partly offset by gains on disposals.
The volume of U.K. Retail sales rose a provisional, seasonally adjusted 2.2 pct in February after falling a final 2.2 pct in January, figures released by the Department of Trade and Industry show. The February sales index, base 1980, was put at a preliminary 125.0 after a final 122.3 in January. In the three months from December to February, the level of sales was little changed over the previous three months but was nearly six pct higher than the same year ago period. On a non-seasonally adjusted value basis, retail sales in February were a provisional 9.0 pct higher than a year earlier. The Department noted the latest figures were similar to the average in the fourth quarter last year but well above the January index, which was depressed by the effects of severe weather. The February trading period comprised the four weeks February 1 to 28. Final February retail sales figures will be published on April 6.
Madagascar's vital rice crop is estimated at 2,286,000 tonnes of paddy this year, up from 2,138,000 in 1986, the Ministry of Agriculture said. The Trade Ministry said rice imports quadrupled in local currency value during the first nine months of last year as the government established a buffer stock of the country's staple food. Rice imports increased to 82.4 billion Malagasy francs during the first nine months of last year from 20 billion in the same period of 1985, the ministry said, without disclosing the tonnages involved.
Turkey's trade deficit rose to 3.65 billion dlrs in 1986 from 3.39 billion in 1985 following increased imports from Western countries, figures from the State Statistics Institute show. Exports were down 6.3 pct at 7.45 billion dlrs, compared with 7.95 billion in 1985, while imports were down 2.1 pct at 11.10 billion dlrs from 11.34 billion. Total trade with Mid-East Gulf states fell some 40 pct due to lower oil prices, with imports at 1.55 billion dlrs, compared with 2.74 billion, and exports at 1.65 billion after 2.72 billion. Exports to Organisation for Economic Cooperation and Development countries rose to 4.29 billion dlrs from 4.11 billion in 1985, while imports were 4.56 billion after 3.55 billion. Turkey's trade deficit in December narrowed to 216 mln dlrs from 340 mln in November, and compared with 277 mln in December 1985.
The Bank of England said it provided the money market with a further 30 mln stg assistance. This brings the Bank's total help so far today to 120 mln stg and compares with its upward revised estimate that the system would face a shortage of some 1.15 billon stg. The central bank bought bills for resale to the market in equal amounts on April 1, 2 and 3 at an interest rate of 10-7/16 pct.
Shr 16 cts vs 22 cts Net 1,574,000 vs 1,725,000 Sales 104.2 mln vs 116.0 mln Avg shrs 10.1 mln vs eight mln 1st half Shr 37 cts vs 37 cts Net 3,675,000 vs 2,925,000 Sales 244.5 mln vs 230.6 mln Avg shrs 10.0 mln vs eight mln
Shr profit four cts vs loss two cts Net profit 247,970 vs loss 57,341 Revs 2,393,622 vs 2,627,612 Avg shrs 5,958,423 vs 2,440,100 Year Shr profit 71 cts vs loss 35 cts Net profit 3,213,310 vs loss 849,180 Revs 14,571,434 vs 9,099,767 Avg shrs 6,177,666 vs 2,440,083 NOTE: 1986 earnings include a loss from carryforward of investment tax credits of 85,000 dlrs in the quarter and a gain of 250,000 dlrs, or four cts a share for the year
Shr 52 cts vs 25 cts Net 5,154,000 vs 2,496,000 Revs 17.7 mln vs 14.4 mln Nine months Shr 1.16 dlrs vs 70 cts Net 11.5 mln seven mln Revs 50.3 mln vs 41.2 mln NOTE: 1987 periods include pretax investment income of 2.9 mln dlrs in capital gains distributions from mutual fund investment.
WTD Industries Inc said it filed with the Securities and Exchange Commission a registration statement covering a 30 mln dlr issue of senior subordinated debentures due 1997. Proceeds will be used mainly for the acquisition of additional woods products manufacturing facilities and related properties, WTD said. The company named Kidder, Peabody and Co Inc as lead underwriter of the offering.
Kawasaki Steel International Finance Plc is issuing a stepped coupon 30 mln dlr eurobond due March 26, 1994 priced at 101-7/8 pct, lead manager Wako International Europe Ltd said. The deal, guaranteed by Mitsui Trust and Banking Co Ltd, will carry a seven pct coupon in year one, rising to 8.44 pct in the final year. Payment date is March 26. The bond is available in denominations of 100,000 dlrs and will be listed in Luxembourg. Fees were not disclosed but a Wako official confirmed the deal was a targetted issue.
Representatives of cocoa consuming countries at an International Cocoa Organization, ICCO, council meeting here have edged closer to a unified stance on buffer stock rules, delegates said. While consumers do not yet have a common position, an observer said after a consumer meeting, "They are much more fluid ... and the tone is positive." European Community consumers were split on the question of how the cocoa buffer stock should be operated when the ICCO met in January to put the new International Cocoa Agreement into effect, delegates said. At the January meeting, France sided with producers on how the buffer stock should operate, delegates said. That meeting ended without agreement on new buffer stock rules. The EC Commission met in Brussels on Friday to see whether the 12 EC cocoa consuming nations could narrow their differences at this month's meeting. The Commissioners came away from the Friday meeting with an informal agreement to respond to signs of flexibility among producers on the key buffer stock issues, delegates said. The key issues to be addressed at this council session which divide ICCO members are whether non-member cocoa should be eligible for buffer stock purchases and what price differentials the buffer stock should pay for different types of cocoa, delegates said. A consumer delegate said producers and consumers should be able to compromise on the non-member cocoa question. A working group comprising delegates from all producing and consuming member countries met briefly this morning, then broke up into a producer meeting and an EC meeting, followed by a consumer meeting. Producers, who are in favour of the buffer stock buying a variety of grades of cocoa and oppose non-member cocoa being accepted, reviewed their position ahead of the working group meeting this afternoon. "We are waiting to see what consumers say," a producer delegate said. "We hope they will be flexible or it will be difficult to negotiate." The ICCO comprises 33 member countries. Non- members include the U.S., a consumer, and Malaysia, an increasingly important producer.
The Commodity Credit Corportion, CCC, has accepted a bid for an export bonus to cover the sale of 15,000 tonnes of U.S. wheat to West African countries, the U.S. Agriculture Department said. The dark northern spring wheat is for shipment May 15-June 15, 1987. The bonus of 40.05 dlrs per tonne was made to Peavey Company and will be paid in the form of commodities from the CCC inventory, it said. An additional 315,500 tonnes of wheat are still available to West African countries under the Export Enhancement Program initiative announced October 30, 1986, it said.
The Commodity Credit Corporation (CCC) has accepted a bid for an export bonus to cover the sale of 380 head of dairy cattle to Kuwait, the U.S. Agriculture Department said. The dairy cattle are for shipment on or before May 31, 1987, it said. The bonus of 1,465.00 dlrs per head was made to American Marketing Services, Inc, and will be paid in the form of commodities from the CCC inventory, it said. An additional 761 head of dairy cattle are still available to Gulf countries (kuwait, Bahrain, Oman, Qatar and the United Arab Emirates under the Export Enhancement Program initiative announced October 30, 1986, it said.
Net 38 mln vs 5.7 mln Revs 1.71 billion vs 1.69 billion NOTE: Fully owned subsidiary of Hoechst AG.
Net profit 34 mln dlrs vs 43 mln dlrs.
Turnover 1.82 billion dlrs vs 1.83 billion.
NOTE: Company lowered to nine pct from 13.5 pct interest
rate on outstanding subordinated loan for period august 1,
1987, to July 31, 1988.
TBG, formerly known as
A group of affiliated New York-base investment firms and funds told the Securities and Exchange Commission they have acquired 453,300 shares of Purolator Courier Corp, or 5.9 pct of the total outstanding. The group, led by Mutual Shares Corp, said it bought the stock for investment purposes. It also said it is studying the 35 dlr a share leveraged buyout offer made by Purolator managers and E.F. Hutton LBO Inc but has not decided whether it will tender its stock in the offer. The group said it has held talks with the Hutton LBO group before and may do so again.
Barclays De Zoete Wedd Ltd said it today began market-making in Japanese convertible eurobonds denominated in dollars. This venture will be followed within a few months by the establishment of a trading operation for Japanese U.S. Dollar-denominated equity warrant issues. Director in charge of the Japanese convertible operation is Kelvin Saunders, who said the desk was currently staffed by seven traders and salespeople. This number would be doubled with the addition of the equity warrant operation, "an even more important element in the current market environment," he said.
Cambridge Analytical Associates Inc said it expects to incur a loss for the first quarter of fiscal 1987 equal to or greater than its loss of 240,697 dlrs for the fourth quarter ended December 31, 1986. Cambridge said it expects revenues for the first quarter to be approximately the same as those recorded for the fourth quarter ended December 31, 1986, of 1,025,961 dlrs. Cambridge recorded a profit of 2,204 dlrs on revenues of 847,000 dlrs for the first quarter of fiscal 1986, the company said. The company attributed the expected loss to lower than expected sales from its laboratory and consulting business and planned major investment in its proprietary treatment technology. The company said winter is traditionally its slowest season.
A 0/92 program would have very little impact on U.S. acreage, prompting farmers to idle only an additional 3.5 mln acres of cropland every year, according to a report from the Agriculture Department. The savings resulting from the additional 3.5 mln acres idled would be a little over 400 mln dlrs in loan savings, 35 mln dlrs in transportation and storage savings, and 10-20 mln dlrs per year in deficiency payment savings, the report said. The USDA report asssessed the impacts of the proposed 0/92 acreage program for wheat, corn, cotton, sorghum and barley. Last year, almost 245 mln acres of those crops were harvested. "The likelihood that the 0-92 provisiion will cause very large acreages to be removed from crop production is quite small," the report said. "The returns on typical farms still favor participation in the usual acreage reduction programs and seeding the permitted acreage," the USDA report said. The 0/92 program, which would allow farmers to forego planting and still receive 92 pct of their deficiency payment, would be most used by producers in high production/high risk areas where cost of production is high, said Keith Collins, director of USDA's economics analysis staff. "In the heart of the corn belt, you would not get that much participation," Collins said. USDA estimated that an additional one mln acres of wheat would be ildled under 0/92, 1.5 mln acres of corn, 500,000 acres of sorghum and barley and 500,000 acres of cotton. Production from these idled acres would be equivalent to 40 mln bushels of wheat, 180 mln bushels of corn, 20 mln bushels of sorghum, 10 mln bushels of barley, and 500,000 bales of cotton, the report said. "In determining whether to participate, a producer would need to weigh the expected cash costs of production against the loan rate ... The risk that market prices may rise above the expected levels and reduce the deficiency payment also must be considered," according to the analysis. "What you're giving up under 0/92 is the difference between the loan rate and the cost of production," Collins said. For producers with low production costs, that difference is greater and can be applied to paying variable costs, he said. Under these cicumstances, farmers would not want to go along with 0/92. But for high cost producers, 0/92 would be more attractive. Also, as loan rates get lower, Collins said there would be more incentives to participate in a 0/92 program. "I would admit that its impacts would be very marginal at first, but it is a step towards the goal of separating production decisions from government payments," Collins said. In a speech earlier today before the National Grains and Feed Association, USDA Secretary Richard Lyng said it is too late to implement 0/92 for 1987 crops since program signup will be over by the end of this month.
Machine Technology Inc said it expects to report a second quarter loss of 13 to 17 cts per share on sales of about 4,400,000 dlrs. A year earlier, it lost 139,000 dlrs or three cts per share on sales of 4,271,000 dlrs. The company said it booked over six mln dlrs in the quarter and its backlog has risen 35 pct since the end of its fiscal year, leading it to expect improved results in the second half.
Rainier Bancorp said it completed the
acquisition of Tacoma, Wash.-based United Bank, for 59 mln dlrs
worth of Rainier stock.
United, a savings bank with 607 mln dlrs in assets and 23
offices, will operate as a wholly-owned subsidiary, Rainier
said.
Rainier, which last month agreed to merge with Security
Pacific Corp
Shr loss three cts vs loss 12 cts Net loss 25,836 vs loss 88,819 Revs 50.3 mln vs 45.2 mln Six mths Shr profit nil vs loss 18 cts Net profit 2,843 vs loss 137,653 Revs 109.3 mln vs 99.3 mln
The USDA's weekly export inspection report is expected to show steady corn and wheat exports and lower soybean exports, according to CBT floor traders' forecasts. Traders projected soybean exports at 16 mln to 18 mln bushels, down from 18.6 mln bushels a week ago and 20.3 mln bushels a year ago. Corn guesses ranged from 22 mln to 26 mln bushels, compared with 25.2 mln bushels a week ago and 22.4 million bushels a year ago. Wheat guesses ranged from 13 mln to 17 mln bushels, compared with 16.8 mln bushels a week ago and 13.4 mln bushels a year ago.
Integrated Circuits Inc said it set March 17 as the record date for its previously announced 10 pct stock dividend. The company said it will distribute the dividend on March 31.
Oper shr loss nil vs loss nil Oper net loss 112,000 vs loss 125,000 Revs nil vs nil Avg shrs 26.7 mln vs 21.9 mln Year Oper shr loss two cts vs loss two cts Oper net loss 450,000 vs loss 503,000 Revs nil vs nil Avg shrs 24.8 mln vs 20.8 mln NOTE: Net excludes losses from discontinued oil and natural gas operations of 44.7 mln dlrs vs 9,489,000 dlrs in quarter and 92.3 mln dlrs vs 80.7 mln dlrs in year. Company sold all its operations at the end of 1986.
Finance Minister Palle Simonsen said today's downgrading of Denmark's credit rating by Standard and Poor's Corp should not be over-dramatised. Standard and Poor's said it had downgraded the Kingdom of Denmark's long-term external debt to AA from AA-Plus, following the country's loss of the top AAA rating in January 1983. "This change is regrettable but there is no reason to dramatise. This is a change of nuance. Standard and Poor's defines the AA category as only slightly different from the top AAA rating," Simonsen said in a statement. "The direct effect of the lower rating on our borrowing capability is unlikely to be very great. But if, against expectation, we fail to reduce permanently the external account deficit... This will inevitably affect borrowing terms and capability," he added. "Standard & Poor's has noted that in 1986 there was a series of austerity measures designed particularly to cut lending and encourage saving. Tax reforms have also gone into effect. "If and when it becomes necessary, the government will be ready to take any necessary economic and political initiatives as it has in the past," Simonsen said. Standard and Poor's said weaker international competitiveness in the face of rising labour costs would mean a deteriorating current account balance and a rise in external debt. The external current account deficit rose to a record preliminary 34.5 billion crowns in 1986 from 29.1 billion in 1985, bringing total foreign debt to 265 billion crowns, according to government statistics. Government economists forecast that the external current account deficit will fall to 19 billion crowns this year. Denmark's net foreign debt rose to 129 pct of total exports in 1986 from 83 pct in 1983, S and P said.
Shr 77 cts vs 84 cts Net 17 mln vs 19 mln Sales 650 mln vs 614 mln
Oper shr 45 cts vs 24 cts Qtly div six cts vs six cts prior Oper net 1,766,000 vs 950,000 Revs 9,321,000 vs 5,298,000 Year Oper shr 1.25 dlrs vs one dlr Oper net 4,985,000 vs 3,894,000 Revs 28.3 mln vs 19.9 mln NOTE: Net excludes losses from discontinued operations of 161,000 dlrs vs 66,000 dlrs in quarter and 464,000 dlrs vs 226,000 dlrs in year. Dividend pay May Five, record April 13. Share adjusted for three-for-two stock split.
Qtr ends Jan 31 Shr profit one ct vs loss two cts Net profit 74,000 vs loss 122,000 Revs 1,657,000 vs 1,416,000 Nine mths Shr profit five cts vs loss 10 cts Net profit 299,000 vs loss 624,000 Revs 5,134,000 vs 3,744,000 NOTE: Full name Precision Target Marketing Inc. Nine months 1987 includes extraordinary gain of two cts per share.
Qtly div 13 cts vs 13 cts prior Pay April 17 Record April 3.
Farmers enrolled over 6.5 mln acres of program crops in the latest conservation reserve program signup and around four mln acres of non-program crops, Agriculture Department conservation specialists said. Soybean acreage amounted to less than two mln acres of the non-program crop acreage enrolled, a USDA analyst said. Heavy enrollment of non-base acreage in wheat states, of which a big percentage would be fallow and non-soybean land, accounted for a large portion of the non-program acreage, the analyst said. Wheat and corn acreage comprised slightly over 40 pct of the total 10,572,402 acres accepted into the ten-year program. USDA analysts gave the following enrollment breakdown: -- wheat 2,615,140 acres -- corn 1,894,764 acres -- barley 705,888 acres -- sorghum 585,552 acres -- cotton 417,893 acres -- rice 2,035 acres -- peanuts 611 acres -- tobacco 285 acres -- total program crops 6,512,700 acres -- total nonprogram 4,059,702 acres -- total enrollment 10,572,402 acres USDA analysts are currently working on a complete state breakdown of crop acreage enrollment and should have it ready for publication later this week, they said.
Philip Crosby Associates Inc said its fourth quarter and annual earnings report will be delayed two more weeks. The company cited the recent in-house embezzlement and a subsequent review by auditors of its international situation as reason for the delay. Philip Crosby, however, said it believes its December estimate calling for earnings per share between 10 cts and 15 cts, on revenues of 11 mln dlrs, was still valid.
The United States has signed a Public Law 480 agreement with Honduras to provide for the sale of 12.0 mln dlrs worth of U.S. agricultural commodities, the U.S. Agriculture Department said. The agreement, signed March 11, provides for the sale of about 75,000 tonnes of wheat/wheat flour worth 8.5 mln dlrs, 15,000 tonnes of corn/sorghum worth 1.5 mln dlrs and 6,000 tonnes of tallow worth 2.0 mln dlrs, the department said. The commodities will be supplied in the current fiscal year, ending September 30, and sales will be by private U.S. traders on a competitive bid basis. Purchase authorizations will be announced as issued.
Missouri Republican Senators John Danforth and Christopher Bond have introduced a bill that would allow wheat and feedgrain producers along the Mississippi and Missouri Rivers hurt by flooding last year to collect at least 92 pct of their deficiency payments this year without planting. Danforth aide Austin Schlick said the bill was similar to a provision included in a House Agriculture Committee-passed emergency disaster assistance bill scheduled to be taken up by the House tomorrow. Schlick said flooding destroyed a number of levees along the two rivers last October, leaving farmland there vulnerable to further damage this year.
U.S. exporters will have the opportunity to sell an additional 300,000 tonnes of U.S. durum wheat to Algeria under the Export Enhancement Program, EEP, the U.S. Agriculture Department said. The department said the sales will be subsidized with commodities from the Commodity Credit Corporation, CCC, inventory and the subsidy will enable U.S. exports to compete at commercial prices in the Algerian market. Algeria has already purchased 300,000 tonnes of U.S. durum wheat under a previous export enhancement initiative announced November 10, 1986, it said. Details of the latest initiative, including an invitation for offers from exporters, will be issued in the near future, the department said.
American International Petroleum Corp
The Senate budget committee sits down tomorrow to start drafting a fiscal 1988 budget, with the budget writers expected to look at several proposals for fuel taxes and other tax options to cut the budget. In a briefing book for the drafting sessions, a number of revenue raising tax options are proposed, including a five dlrs a barrel fee on domestic and imported oil, a fee just on imported oil, and a broad based tax on domestic energy consumption based on five pct of value. Other proposals include various excise taxes and combinations of import surcharges or tariffs, including a 10 pct import across the board import surcharge that would raise 22 billion dlrs next year alone, more in later years. The committee, however, will only include revenue numbers in its proposed budget with the actual revenue decisions left to the House and Senate tax-writing committees. The committee will draft a budget which its chairman, Sen Lawton Chiles, a Florida Democrat, said he hopes would raise at least 18 billion dlrs in revenues, or about half the minimum 36 billion dlr deficit reduction he has in mind. The House Budget Committee also plans to start drafting a separate budget plan later this week, which would have to be reconciled with the Senate version. The final budget would be the fiscal 1988 spending and revenue blueprint.
Qtrly div 34 cts vs 34 cts prior Pay May 1 Record April 15
Farm subsidies and protectionist moves threaten healthy trade on both sides of the Atlantic, Michael Jopling, British minister of Agriculture, Fisheries and Food, warned. "It would not be sensible to provoke another dispute between Europe and the United States," Jopling said in remarks prepared for an evening speech. "But some things are clear and they apply on both sides of the Atlantic. We cannot continue to pile up stocks while world demand shrinks," he said. "Governments must not operate farm policies as if they were purely domestic affairs with no impact on others. They also have to recognize that they cannot in the long run develop a healthy and stable farm sector on the basis of protectionism and excessive subisdies. "And above all, Europe and the United States have too many common interests to make it worthwhile to engage in trade wars and competitive export subsidies which end by benefitting no one." He added, "It is crucial that the United States and the European Community remain friends." Jopling, who is a member of the EC agriculture committee, was in Indiana to visit several farms prior to talks with U.S. officials in Washington later this week. Jopling also criticized a recent proposal still under consideration by the EC for a tax on vegetable and fish oils. He said his government would oppose such a move because "We do not think it is correct that a shortage of funds to support (EC) farmers should be alleviated by raising money at the consumer's expense."
BankAmerica Corp Chairman A.W. Clausen said the bank holding company plans to go foward with its one-billion-dlr debt offering, but declined to specify when. Speaking to the San Francisco Chamber of Commerce, Clausen said that during the coming months, "at the appropriate time, we will be placing or underwriting for equities." "We do need to improve our capital. We are in registration. For the moment, we filed a one-billion-dlr shelf registration for approval by the SEC, which we believe will be approved very shortly," he said. On January 26, BankAmerica filed a shelf offering for up to one billion dlrs of preferred stock and subordinated capital notes. The offering was seen by the banking industry as one of the major deterrents to First Interstate Bancorp's take over bid, which it withdrew on February 9. Since then, banking analysts have speculated BankAmerica may do well to defer action on the offering, while it continues to attempt to improve its financial situation. Clausen said despite improvement in the past quarter, BankAmerica must do more to improve its capital ratios.
Morgan Stanley Mortgage Trust, a unit of the Morgan Stanley Group, is offering 313.87 mln dlrs of collateralized mortgage obligations (CMOs) in seven classes. These consist of 79 mln dlrs of adjustable rate class J-1 bonds to be fully paid by November 20, 2013 priced at 99.80 pct to yield 7.49 pct. The notes will bear an interest rate of seven pct for one year from April 20, 1987, rising to 7.50 pct until April 1989 and an eight pct rate thereafter. Morgan also will offer 89.60 mln dlrs of floating rate, class J-2 bonds to be fully paid by 2013, priced at par to yield three-month Libor plus 0.45 pct. There is an 11 pct cap. Also among the issues are 24.417 mln dlrs of class J-three bonds to be fully paid by May 2015 and priced at par to yield 8.26 pct and 11.491 mln dlrs of floating rate class J-four bonds to be fully paid by the same date and priced at par to yield three-month Libor plus 0.50 pct. The cap is 12 pct. The class J-five bonds totalling 49.987 mln dlrs will be fully paid by August 2017 and priced at par to yield 8.57 pct. The 17.25 mln dlrs of floating rate class J-six bonds of the same maturity are priced at par at a rate of three-month Libor plus 0.65 pct with a 13 pct cap. The 42.125 mln dlrs of 8.75 pct class J-seven bonds due August 2018 are priced at 99.25 pct to yield 8.85 pct. Interest on all classes of bonds will be payable quarterly. Morgan Stanley is sole manager of the offering which will be rated AAA by Standard and Poor's Corp.
Aero Services International Inc
said it signed an agreement with Dibo Attar, who controls about
39 pct of its common stock, under which three nominees to
Aero's board have been selected by Attar.
In addition to Attar, the nominees are Stephen L. Peistner,
chairman and chief executive officer of
China's grain imports will rise in 1987 because of a serious drought and increasing demand, but will be not be as large as in the past, Chinese officials and Japanese traders told Reuters. They said foreign exchange constraints and national policy would not allow a return to large-scale imports, which peaked at 16.15 mln tonnes in 1982. An agricultural official of the Shanghai government put maximum imports at about 10 mln tonnes this year, against 7.73 mln in 1986 and 5.97 mln in 1985. Officials said grain imports rose in 1986 because of a poor harvest and rising domestic demand, but remained below exports, which rose to 9.42 mln tonnes from 9.33 mln in 1985. "China is short of foreign exchange," the Shanghai official said. "We cannot rely on imports, even at current low world prices. Only if there is a major disaster will we become a major importer." A Japanese trader in Peking said Chinese grain imports would rise and exports fall this year because of the drought, low world prices and rising domestic demand for human and animal consumption. "At current prices, China loses yuan on every tonne of grain it exports, though it earns foreign exchange which it badly needs," the trader said. The People's Daily said last Saturday a serious drought is affecting 13.3 mln hectares of arable land, which will reduce the summer grain harvest from last year's level. The paper added that leaders in some areas were not paying enough attention to agriculture, especially grain, making it difficult to achieve the 1987 grain output target of 405 mln tonnes against 391 mln in 1986. "All areas must spare no effort to raise the autumn harvest area, especially of corn, sweet potatoes, paddy rice and high-yield cash crops," it said. It added factory production might have to be reduced to provide electricity for agriculture if it was needed to fight the drought. Since January, the press has devoted much attention to grain, stressing that growth in output is vital to China's economic and political stability and that prices paid to farmers are too low. Officials in east China have repeatedly said stable grain production is a key state policy and outlined the measures being taken in their areas to encourage output. The Shanghai official said that in one suburb, 10 pct of the pre-tax profits of factories are used to subsidise agriculture. He said rural industries in other suburbs also set aside money for grain and pay the salaries of some of the 70,000 workers available to help farmers. Chu Jinfeng, an official of Fengbing county outside Shanghai, said factory workers get 60 yuan a month and three years unpaid leave to grow grain and can keep the profits. Pan Huashan, an official of the agricultural department of Zhejiang Province, said rural industry also subsidises grain output in his province. "In addition, we are setting up grain production bases, raising the level of science and technology on the farms and improving the supply of raw materials, roads and other infrastructure," he said. The Shanghai official said rural residents who work in industry or commerce usually keep their land to farm in their spare time, or let other family members farm it. In some cases, they lease the land to grain farmers. The China Daily said last month that grain output should reach between 425 and 450 mln tonnes by 1990 and between 480 and 500 mln by 2000. It said growing grain should be made profitable. "The advantages the state promises grain growers actually yield tangible profits for them and are not siphoned off by intermediate agencies because of bureaucracy or corruption. Only this will boost enthusiasm," it said.
Schlumberger Ltd's
The Agriculture Ministry is expected to reduce official intervention prices for beef and pork in 1987/88 starting in April, but the cutback ratio has not been set yet, industry sources said. Production prices, the basis for setting intervention prices, have been falling because of declining compound feed prices due to low coarse grain import prices, they said. Last November an advisory panel urged the government to work on reducing officially set high farm product prices to levels closer to international values, the sources added. In Japan the government maintains a price stabilisation zone system for beef and pork to support domestic producers. The stabilisation zone is kept by the semi-government Livestock Industry Promotion Corp (LIPC) through a buffer stock operation in the wholesale market. The 1987/88 beef and pork price stabilisation zone will be set by the end of March after an advisory panel to the Agriculture Ministry recommends the price zone at a meeting on March 25, ministry officials said. At present, the standard or bottom price of castrated wagyu beef, known as marbled beef, is 1,400 yen per kilo, while its ceiling is 1,820, they said. The standard price of other beef, mainly produced from dairy steers, is now 1,090 yen per kilo and the ceiling is 1,420, the officials said. The pork standard price is now 540 yen per kilo and the ceiling 760. They said the domestic beef intervention price influences imported beef selling prices on the domestic market. Japan sets an annual beef import quota. A semi-government body imports most of this and releases it to wholesalers or processors in line with the standard price of other beef categories in an attempt to avoid jeoparadising domestic beef prices, they said.
Year ended January 31 Parent shr 5.73 yen vs 5.80 Div five yen vs same Net 7.01 billion vs 6.77 billion Current 24.06 billion vs 23.76 billion Operating 37.62 billion vs 45.26 billion Sales 630.08 billion vs 810.89 billion NOTE - Company forecast for current year parent div five yen, net seven to eight billion, current 24 billion, sales 610 billion.
Further talks will be held this morning at Cargill U.K. Ltd's oilseed processing plant at Seaforth, after yesterday's meeting between management and unions failed to produce a solution to end the three month old strike, a company spokesman said. Talks will be extended to tomorrow if there is no breakthrough in today's session, he said.
Toronto Dominion Bank is issuing a 20 billion yen eurobond due April 6, 1992 with a 4-5/8 pct coupon and priced at 101-5/8, lead manager Nomura International Ltd said. The bonds will be listed in London and will be issued in denominations of one mln yen. Fees consist of 5/8 pct for management and underwriting, including a 20 basis point praecipuum, and 1-1/4 pct for selling. Pay date is April 6.
Orion Royal Bank has decided to withdraw from making markets in floating rate notes (FRNs), an official of Orion said. He said the decision to withdraw was made about 11 days ago before the market was battered by a loss of confidence, which resulted in sizeable losses in these securities. The official, who declined to be identified, said Orion, the merchant banking arm of Royal Bank of Canada, had operated profitably in the market from 1984 to date. However, the decline in the market made it appear that they could no longer justify the overhead. The official said Orion would redeploy the three traders who had been in the FRN sector, mostly to their Euro-commercial paper operation, an area the bank believes has a greater growth potential. Officials at several other firms, who also declined to be identified, said they were reviewing their position to decide whether to continue making markets in FRNs. In trading earlier today, traders said prices of several dated FRNs had firmed slightly and that some buyers were beginning to re-enter the market.
A Cypriot tanker was set ablaze in the Persian Gulf yesterday after an Iranian gunboat fired missiles at it, shipping sources quoting reports from Japanese tankers said today. No casualties were seen and the tanker Pivot, laden with crude oil, was towed towards Dubai by tugs after they put out the fire, the sources said. Iranian gunboats usually check a ship's nationality and cargo before attacking but the Pivot was hit near Bu Musa island without warning, they added.
Commercial International Corp said it has completed the previously-announced acquisition of most of the assets of Growers Distributing International Corp, a table grape marketer, for an undisclosed amount. It said the entire purchase price will be payable over a three-year period and based on a percentage of pre-tax earnings of the acquired operation. The company said it has an option to acquire Growers' cold storage facility and related assets in Tulare County, Calif. Growers is owned by Commercial chairman Sid Schuman Jr. and director Arnold T. Cattani Jr.
Shr loss 26 cts vs loss 12 cts Net loss 289,649 vs loss 138,372 Revs 5,944,286 vs 5,902,074
Japan told the General Agreement on Tariffs and Trade that South Korea's five-year import diversification plan violated the spirit of the world trade governing body, a Foreign Ministry spokesman said. The notification came in Japan's answer to a recent GATT questionnaire on unfair trade practices, the spokesman said. In the five-year plan, which starts this year, South Korea aims to reduce its dependency on Japan as a source of imported goods and to increase imports from the U.S. And Europe. Japan's move came after several unsuccessful bilateral negotiations on the plan, the spokesman said. "The notification does not represent anything resembling a formal complaint, nor is it intended to pressure South Korea. It is a routine procedure followed by all other GATT member states."
The Bank of England said it had provided the money market with 16 mln stg help in the afternoon session. The Bank did not operate in the market in the morning and earlier revised its estimate of the shortage in the system today down to 400 mln stg from 450 mln. The central bank purchased bills outright in band one at 10-3/8 pct comprising two mln stg of local authority bills and 14 mln stg of bank bills.
Shr 12 cts vs 10 cts Net 1,683,000 vs 1,407,000 Revs 42.2 mln vs 28.8 mln 12 mths Shr 83 cts vs 70 cts Net 11.9 mln vs 10.0 mln Revs 160.3 mln vs 126.5 mln NOTE: prior qtr and yr ended Jan 26.
Gruen Marketing Corp said it expects to report earnings for the year ended January 31 of 60 to 65 cts per share on about 7,309,000 average shares, down from 78 cts on 6,545,000 shares a year before. It said sales fell about 10 pct from the year-earlier 104.9 mln dlrs.
Already strained relations between the U.S. And the European Community (EC) are likely to get worse before they get better, director general of the Dutch Economics Ministry's foreign affairs division Frans Engering said. Speaking at an American Chamber of Commerce lunch in The Hague, Engering noted the developing history of crises over steel, citrus and pasta, and warned of more to come. "I consider the strident tone of US declarations on Airbus ill-advised, and the EC fats and oils tax proposal a dangerous provocation," he said. "I feel that we shall probably have to deal with quite a few more crises in the foreseeable future." Not only is the US Congress clearly very determined to get the American balance of payments into better shape, but the risks of brinkmanship are all the greater because the EC has its own constraints in meeting outside pressure, Engering noted. "If we ask ourselves whether it is perhaps inevitable that we keep pushing each other to the brink of actual trade war, then I think the answer is probably yes," he said. In order to reduce these tensions, decision-making in the EC must become less self-centred, and the US Administration will have to exercise the authority to convince Congress and pressure groups of the need for accommodation, he added.
There is a slightly better than even chance that the Federal Reserve will enter the U.S. Government securities market to add temporary reserves, economists said. They said the Fed would supply the reserves indirectly via around 1.5 billion dlrs of customer repurchase agreements. Federal funds, which averaged 6.25 pct yesterday, opened at 6-1/16 pct and moved in a narrow range between there and six pct in early trading.
U.S. Rep. Dan Glickman, D-Kan., chairman of the House Agriculture subcommittee on wheat, soybeans and feedgrains, said he would today introduce a bill to apply the so-called 0/92 concept to wheat and feedgrains producers. Glickman told Reuters the measure would allow 1987 winter wheat producers and 1988 feedgrains producers the possibility of receiving no less than 92 pct of their income support payments regardless of how much acreage they planted. He also said his bill would protect program participants from reduced income payments in the event market prices rose above the loan rate.
Oper net 46.6 mln Revs 392 mln 12 mths Oper net 65 mln vs 47.1 mln Revs 590 mln vs 591 mln NOTE: Eight months represents earnings following acquisition in May 1986 when company went private. Period ending Jan. 3, 1987 excludes 42.3 mln dlrs of interest expenses, 41.6 mln dlrs of acquisition adjusments, and 1.7 mln dlrs of income taxes.
Development Corp of America
said its merger with Lennar Corp
The Federal Reserve entered the U.S. Government securities market to arrange two billion dlrs of customer repurchase agreements, a Fed spokesman said. Dealers said Federal funds were trading at 6-1/16 pct when the Fed began its temporary and indirect supply of reserves to the banking system.
Treasury Secretary James Baker said the United States was not seeking loan veto in its negotiation for voting power at the Inter-American Development Bank. Discussing the ongoing negotiation, Baker said the U.S. position is that the countries that pay in the most should have the greatest say over the loan decisions. The U.S. is seeking the power to block loan votes with one other country, and the issue will be discussed in Miami later this month at the annual meeting of the Latin development bank.
Oper shr 29 cts vs 22 cts Oper net 3.9 mln vs 1.8 mln Year Oper shr 63 cts vs four cts Oper net 10.1 mln vs 855,000 NOTE: Excludes gain one ct per share vs loss two cts in the quarter, and gain 41 cts per share vs gain six cts in the year from investments. Also excludes extraordinary gain of one ct per share in fourth quarter 1985, and gain of one ct per share vs one ct in the full year period.
A proposal by two U.S. House Democrats to target government farm benefits to small- and medium-sized farms was warmly received by Democrats on a House subcommittee today. "On balance, this is the best new idea I have seen," said Rep. Dan Glickman (D-Kan.), Chairman of the House Agriculture Subcommittee on Wheat, Feedgrains and Soybeans. "This is the first hard constructive proposal coming out as an alternative to the (Reagan) administration's farm proposal." The plan, offered by Reps. Tim Penny (D-Minn.) and Byron Dorgan (D-ND), would raise target prices for wheat to 5.00 dlrs per bushel and for corn to 3.50 dlrs. Producers could receive deficiency payments on up to 80 pct of normal yield but not more than on 30,000 bu of corn and 20,000 bu of wheat. The proposal also would require acreage reductions of 20 pct, eliminate generic certificates and prohibit persons not actively engaged in farming from receiving program benefits. Dorgan said the bill would save 24 billion dlrs over five years, protect family farms and eliminate government accumulation of stocks because nonrecourse loans would be halted. However, Rep. Pat Roberts (R-Kan.) said the measure would "involve the federal government in deciding and defining who a family farmer is." Roberts said the bill, for example, would restrict program payments to 500 acres of wheat production in western Kansas. Other Republicans on the panel questioned how the bill would determine if a person was actively engaged in farming and therefore eligible for payments.
The European Commission is to consider proposed new higher minimum standards for sales of durum wheat into intervention stores, European Community sources said. They said a document drawn up by Commission officials proposes a reduction in the maximum humidity level to 13 pct from 14, an increase in the minimum weight to 78 kilos per hectolitre from 76, a tightening of other technical standards and introduction of some new ones. Current public stocks of durum wheat in the EC are 1.15 mln tonnes, of which almost 1.12 mln are in Italy.
British bank base lending rates are likely to fall by as much as one full point to 9-1/2 pct this week following the sharp three billion stg cut in the U.K. Central government borrowing target to four billion stg set in today's 1987 budget, bank analysts said. The analysts described Chancellor of the Exchequer Nigel Lawson's budget as cautious, a quality which currency and money markets had already started to reward. Sterling surged on foreign exchange markets and money market interest rates moved sharply lower as news of the budget measures came through, the analysts said. Lloyds merchant bank chief economist Roger Bootle said he expected base rates to be cut by one full point tomorrow. "This is very much a safety-first budget in order to get interest rates down," he said. Bootle said the money markets had almost entirely discounted such a one point cut, with the key three month interbank rate down to 9-11/16 pct from 9-13/16 last night, and it would be rather conservative for banks to go for a half-point cut now. Midland Bank treasury economist David Simmonds said he, too, expected base rates would be a full point lower by Friday, but this would likely happen via two half-point cuts. "This budget is designed to please both the markets and the electorate. The implications for interest rates are very favourable, we could have a half-point cut tomrorow and another such cut before the end of the week," Simmonds said. Pointing to buoyant U.K. Retail data released yesterday, he said Lawson had done well to resist pressures for a sharp cut in income tax rates at the expense of a lower borrowing target. "There is no real need to boost private consumption," he said. National Westminster Bank chief economist David Kern said the lower borrowing target set in the budget had increased the likelihood of an early one-point base rate cut. Kern said the budget would have to be analysed carefully, in particular to see how exactly Lawson planned to achieve the sharper than expected borrowing target cut, before a one-point base rate cut could be implemented. But providing the budget small-print was convincing, "and I suspect it will be, it is entirely possible that we see one point off base rates by the end of this week," Kern said. Bootle of Lloyds said the expected base rate cut would pave the way for an early one-point cut in mortgage lending rates. This would help achieve Lawson's lower than expected consumer price inflation target of four pct at end-1987, he said. U.K. Base rates were cut last week to 10-1/2 pct from 11 pct after sustained pressure from the foreign exchange, money and government bonds (gilts) markets. But building societies said they would not cut lending rates until base rates had fallen by one full point.
Siebel Capital Management Inc, a California investment adviser, told the Securities and Exchange Commission (SEC) it bought 1.3 mln CooperVision Inc common shares or 5.9 pct of the total outstanding. In its SEC filing, the firm said it "intends to acquire more stock and may attempt to influence management of the company to make major changes in the company's business or corporate structure." Siebel said it made net purchases of 163,200 CooperVision shares since Jan. 1.
The western industrialised nations have agreed reforms in rules by which they provide credit for exports to developing countries, the Organisation for Economic Cooperation and Development (OECD) said. The reforms tighten the rules for the use of foreign aid to subsidise export credits in so-called "mixed credits," the OECD said. The agreement, to be implemented in two stages in July this year and July 1988, means the minimum aid component in mixed credits will be raised to 35 pct from 25 pct, and to 50 pct for credits covering exports to the world's least developed nations. Additionally, a new formula will be used for calculating the aid element in mixed credits, to take account of different interest rates in the exporting countries, the 24-nation OECD, which hosted the reform negotiations, said. Minimum interest rates for officially subsidised trade loans have also been revised with the aim of cutting the subsidies, and ending them completely on loans to relatively rich developing countries by July next year. The reforms follow several years of pressure by the U.S. To stop competitors, notably France and Japan, using foreign aid to subsidise exports, putting U.S. Firms at a disadvantage. OECD officials said the agreement was based on a provisional accord reached in January subject to ratification by member governments. Some governments, including Austria, had linked their final approval to other trade credit issues which would be discussed at a meeting here in mid-April, they added. By raising the minimum amount of aid required in mixed credits the agreement aims to make such hidden subsidies too costly for frequent use. "A major loophole in the General Agreement on Tariffs and Trade has been closed today," a senior U.S. Official here commented.
Oper shr 24 cts vs 19 cts Oper net 1,096,332 vs 794,711 Revs 803,085 vs 442,420 Six mths Oper shr 53 cts vs 43 cts Oper net 2,375,844 vs 1,741,437 Revs 1,471,257 vs 768,683 NOTE: Prior year excludes income from discontinued operations of 19 cts per share in the quarter and 17 cts per share in the year.
The dollar is near appropriate levels against European currencies and the yen, and a further fall could damage confidence in the currency while endangering world economic growth, a top Bundesbank official said. Board member Leonhard Gleske also told a Forex Association conference current exchange rates of major currencies "can be viewed as equilibrium levels in a medium-term perspective." He said the recent Paris agreement on currency stabilisation and policy coordination between the Group of Five and Canada may herald "an era of greater exchange rate stability." The Paris agreement was not, however, an attempt to set up permanent target zones for exchange rates, Gleske stressed, adding such targets would be extremely difficult to agree and enforce on an international level. "At present levels the dollar can no longer be considered grossly overvalued in relation to the European currencies and the yen," Gleske said. He said the dollar had fallen much less against currencies of important trading nations such as Canada, Korea, Taiwan and Hong Kong, and further falls there may still be necessary. But "a further dollar depreciation against major European currencies and the yen may not be the best way to restore the dollar to a fully competitive position, as measured by its weighted external value," he said. In fact, a further marked decline in the dollar rate would hold two major dangers, Gleske said. First, in countries with large balance of payments surpluses such as Japan and West Germany, it threatened to hamper economic growth and thus slow down the expansion of real income and domestic expenditure necessary to wipe out surpluses. Second, in the United States, it could damage investors' confidence in the dollar and thus reduce their willingness to finance huge fiscal and external payments deficits, Gleske said. Gleske also was strongly sceptical that an international system of binding target zones for currencies, fluctuating in narrow bands against each other, can be established. Such targets threatened to cause policy conflicts, "both within countries and between them." For instance, the U.S. Reliance on foreign capital to fund its deficits requires interest rates there be set at high levels, but domestic considerations call for low ones. If target zones were established, this would put "pressure on other countries to reduce their interest rates even more, even though this may be in conflict with their own domestic situation and priorities," he said. Gleske added, "targeting the exchange rate even within a wide margin will meet with serious objections where there is a clearly perceived potential for conflict between domestic and external policy priorities." Commenting on the Paris currency accord, Gleske said its chances of stabilising exchange rates rested heavily on current interest rate differentials being maintained. These chances "seem to me to rest critically on the expectation that the current configuration of interest rates, and the monetary policies behind them, will assure smooth financing of current account imbalances in the months ahead." Gleske said past experience of currency adjustments had learned "that markets are inclined to be impatient and will thus tend to overshoot." He said this "would seem to be unnecessary and should be avoided if at all possible." Monetary policies can help achieve this, but only if markets believe that pledged changes in fiscal policies will lead to balanced international payments, he said.
Light, scattered showers covered winter wheat areas in the North China Plain in the week ended March 14, moistening topsoils for wheat, just breaking dormancy in most central and northern areas, the Joint Agricultural Weather Facility of the U.S. Agriculture and Commerce Departments said. In its International Weather and Crop summary, the agency said southern winter wheat areas are in the early vegetative stage. Above-normal February temperatures over the North China Plain caused winter grains to break dormancy early in the south. Moderate to heavy rains in southern Jiangsu, Anhui, eastern Hebei, Hunan , Jiangxi, Fujian, and Zheziang, reversed February's below normal precipitation pattern. The agency said the wet weather in these areas provided ample moisture for rice planting and lessened the need for irrigation. Mostly dry weather in early-rice areas of Guanxi and Guandong resulted in irrigation for continued rice planting, it said.
Shr profit 26 cts vs loss nine cts Net profit 10.3 mln vs loss 1.0 mln Revs 208.2 mln vs 123.3 mln Year Shr profit 38 cts vs profit nine cts Net profit 13.0 mln vs profit 2.8 mln Revs 635.5 mln vs 429.3 mln Note: 1986 full year results include extraordinary loss of one mln dlrs or three cts per share.
Secretary of Agriculture Richard Lyng will meet with representatives from major grain exporting companies today, and the subject of subsidized wheat to the Soviet Union will likely be discussed, an aide to Lyng said. Today's meeting, set to begin at 1500 EST (2000 gmt), was scheduled at the request of the exporters, the aide said. "The EEP (export enhancement program) is pretty obviously one of the things they (the exporters) want to talk about, but they haven't any agenda as far as I know," Lyng's aide said. Private industry export officials have met periodically with Lyng to discuss farm policies and the export situation. Whether this meeting will prompt any U.S. action on the issue of whether Moscow will be offered export bonus wheat is uncertain, the aide said. "I don't know what they'll tell us that we don't already knwo, but we'll hear what they have to say," Lyng's aide said. The USDA official said that as far as he knows there has been no further action on offering the Soviet Union wheat under the EEP.
Shr 10 cts vs 11 cts Net 255,000 vs 242,000 Sales 7,166,000 vs 6,486,000 Avg shrs 2,438,000 vs 2,118,000 Year Shr 50 cts vs 40 cts Net 990,000 vs 849,000 Sales 29.0 mln vs 22.8 mln Avg shrs 1,972,000 vs 2,118,000 NOTE: Share adjusted for five-for-four stock split declared today.
Dry weather covered most European crop areas in the week ended March 14, except for those in southwestern France, southern Italy, and Greece, the Joint Agricultural Weather Facility of the U.S. Agriculture and Commerce Departments said. In its International Weather and Crop sumary, the agency said mixed rain and snow covered Greece. Winter grains in England, France, and northern Italy remained dormant. Grains usuaually break dormancy in March. Winter grains in Eastern Europe usually break dormancy in early April, it said. Showers improved irrigation supplies in winter wheat areas of northern Pakistan and northern India, it said. Normally, wheat harvesting is well underwaty in central India and just beginnning to the north, ending in most areas by late April. Showers improved irrigation supplies in southern India, reversing February's below-normal trend. Summer rice is usually in or nearing reproduction in most southern areas, it said. In the Philippines, most rainfall was restricted to the central islands, continuing February's drying trend in Luzon and southern Mindanao. Locally heavy showers dotted Indonesia and Malaysia as rainfall generally decreased eastward through the islands. In February locally heavy showers may have caused flooding in Java, it said. The second cnsecutive week of dry weather stressed Moroccan winter grains, approaching teh heading stage, the agency said. Light to moderate rain spread from northern Thailand to Northern Vietnam as dry weather prevailed elsewhere in Southeast Asia. Dry weather covered winter grain areas in western and central Algeria, but soil moisture was likely adequate to meet crop demands, it said. Light showers in eastern Algeria and Tunisia maintained adequate moisture for crop growth, it said. Timely rains will be needed in the next several weeks as winter grains advance through the critical reproductive phase, the agency said.
The Bank of France expects a continued revival in short-term industrial activity, but the outlook for any improvement in France's record 10.9 pct unemployment rate remains bleak, the Bank of France said in its monthly review. The upturn in activity in all industrial sectors except the agro-food sector in February more than compensated for the fall in January, while construction and civil engineering experienced a recovery which appears likely to extend over the next few months. Internal demand rose and the export situation improved, in particular toward the European Community (EC), the Bank said. Stocks decreases and order book levels, with the exception of the agro-food industry, improved substantially. In addition, retail prices and salaries stabilised last months. Production rose in all sectors except agricultural machinery and aeronautics, where it stabilised, and ship construction, where it declined. The car industry was the major beneficiary of the upturn in activity in February, with both domestic and export orders rising. In the consumer goods sector, actitity rose sharply despite a fall in the household goods sector and stability in pharmaceuticals. Among semi-finished products, output rose sharply, helped by a strong growth in construction materials. But activity in the retail sector declined slightly over the past two months.
A White House-ordered report said that growing U.S. reliance on foreign oil into the year 2000 could have potentially damaging implications for national security. The Energy Department study discusses several options to curb reliance on foreign oil, but makes no recommendations. President Reagan and most Congressmen have previously ruled out a tax on foreign oil as a way to curb imports and to help the depressed domestic oil industry. Energy Secretary John Herrington said in a statement that "although we have made gains in energy security in the last six years, this report shows that there is justification for national concern both over declining competitiveness of our domestic oil and gas industry and over rising oil imports." The report said imports last year were 33 pct of U.S. consumption and by the mid-1990s could rise to 50 pct. Among the report's options to ease U.S. reliance on foreign oil are several already advocated by the Reagan Administration. President Reagan ordered the study last September, citing a determination that the country never again become captive to a foreign oil cartel, referring to the OPEC-led oil shortages and sharp prices increases of the 1970s. The report said an import fee would raise prices and help make it economical for U.S. oil firms to find and produce new oil, as well as to cut imports, but on the whole the tax would depress the nation's economy. The study was outlined in a New York Times report today.
Feb 28 Oper shr six cts vs two cts Oper net 189,683 vs 47,499 Revs 2,874,930 vs 2,594,574 NOTE: Prior year net excludes 33,000 dlr tax credit.
Shr 1.53 dlrs vs 18 cts Net 841,893 vs 95,477 Revs 50.3 mln vs 35.1 mln
The House of Representatives approved a bill to enable 1987 winter wheat and feedgrains farmers hit by midwestern flooding last year to receive at least 92 pct of their federal income support payments even if they did not plant. The one-time pilot 0/92 program, designed to assist farmers in Kansas, Oklahoma, Michigan and parts of Missouri, was passed by a 304-100 vote and sent to the Senate. Although the bill includes a narrow version of the 0/92 provision endorsed by the Reagan administration, the U.S. Agriculture Department withheld its support from the measure. USDA said the bill would discourage farmers from buying crop insurance and fall short of the administration's proposed broad-scale revision of farm programs. The bill would permit winter wheat producers prevented from planting their 1987 crop last fall to receive 92 pct of the deficiency payments they would have received. To be eligible, winter wheat farmers could not plant a different crop on that land this spring, although they could use the land for grazing or to plant hay. USDA estimated this provision would save 30 mln dlrs, largely because of reduced crop forfeitures. The bill also would aid about 200 feedgrains producers along the Missouri and Mississippi Rivers who were prevented from planting crops this year because of residual damage from last fall's flooding. In addition, the measure would require USDA to make full payment to farmers eligible for emergency assistance approved by Congress last fall. Currently, because claims have outstripped the 400 mln dlrs in appropriated funds, USDA plans to offer farmers in the region 74 cents for every dollar in disaster losses. The administration said it opposed the bill because, by expanding the 400 mln dlrs in disaster relief, it would thwart efforts to encourage farmers to buy crop insurance as an alternative to federal disaster assistance. USDA also said the 0/92 provisions in the bill were narrower than the administration's proposal to offer the option to all major commodities and would produce insignificant savings. USDA said the 0/92 option for 1987 winter wheat farmers would produce a net savings of about 30 mln dlrs, while the requirement to compensate fully disaster-struck farmers would cost about 135 mln dlrs, which must be appropriated by Congress. The feedgrains provision would cost about five mln dlrs. USDA estimated the overall cost of the bill to be 111 mln dlrs. In January the Senate approved a bill that would make 1987 winter wheat farmers eligible for disaster assistance payments. But the Senate bill would not offer the 0/92 option to wheat and feedgrains producers or raise the 400-mln dlr ceiling on the disaster assistance program.
Honduras has been authorized to buy about 75,000 tonnes of U.S. wheat, about 15,000 tonnes of U.S. corn, and about 6,000 tonnes of U.S. tallow under an existing PL 480 agreement, the U.S. Agriculture Department said. The department said it may buy the wheat, valued at 8.5 mln dlrs, the corn, valued at 1.5 mln, and the tallow, valued at 2.0 mln dlrs, between March 24 and August 31, 1987, and ship it from U.S. ports and/or Canadian transshipment points by this September 30. The purchase authorizations cover the entire quantity provided under the agreement, signed March 11.
The U.S. Agriculture Department said private U.S. exporters reported sales of 350,000 tonnes of corn for delivery to unknown destinations during the 1986/87 marketing season. The marketing year for corn began September 1. This is the second day running that exporters have reported corn sales to unknown destinations. Yesterday, they reported sales of 150,000 tonnes to unknown.
Shr nil vs nil Net loss 77,879, vs loss 65,501 Revs 3,895,741 vs 4,872,163 Nine mths Shr profit nine cts vs profit two cts Net profit 488,898 vs profit 118,208 Revs 13.0 mln vs 15.8 mln
Period ended Jan 31 Shr loss 89 cts vs loss 82 cts Net loss 5,187,000 vs loss 5,362,000 Revs 128.4 mln vs 50.3 mln Six mths Shr loss 1.27 dlrs vs loss 1.04 dlrs Net loss 7,015,000 vs loss 6,790,000 Revs 264.7 mln vs 97.3 mln NOTE: Full name is Great American Management and Investment Inc
From April through December 1986, the Commodity Credit Corporation (CCC) issued 3.85 billion dlrs worth of generic certificates and about 1.8 billion had not been exchanged by January 1, 1987, the U.S. Agriculture Department said. The department said an additional 4.3 billion dlrs in certificates has been authorized for issuance during January-August, 1987. These certificates will provide ample free supplies of corn and wheat for the remainder of the crop year, the department said in a summary of its Agricultural Outlook report. Freeing of stocks through certificates is making U.S. grain more competitive on world markets, it said. The department said last summer, for example, certificates were exchanged for 215 mln bushels of corn. This helped increase marketable supplies, so farm-level corn prices averaged about two dlrs per bushel -- somewhat lower than they would have otherwise. The lower prices probably led to an increase in usage of 40 to 50 mln bushels, it said. The department said government spending on farm programs in fiscal year 1987 is projected to fall half a billion dlrs from 1986's 25.8 billion dlrs. During 1988 and 1989, the cost escalation of the first half of the 1980's will reverse. If current policy remains in force, annual farm program spending by 1992 will be down from last year's record by more than eight billion dlrs, it said. The department said the President's budget proposals for 1988-1992 would cut farm program spending an additional 24 billion dlrs. In 1987, foreign economic growth is expected to remain close to 2.6 pct, the same as in 1986, but above the 2.4 pct average of 1980-86, it said. Partially because of this improvement, U.S. export volume is expected to rise in fiscal 1987 for the frist time in seven years, the department said.
Shr profit six cts vs profit 17 cts Net profit 269,000 vs profit 833,000 Revs 28.0 mln vs 30.8 mln Nine mths Shr loss 4.16 dlrs vs profit 74 cts Net loss 20.0 mln vs profit 3,543,000 Revs 93.1 mln vs 117.7 mln Note: Current qtr net includes writedown of 20.4 mln dlrs of net investment in company's oil and gas properties. Year-ago results restated to reflect reclassification of coal mining and marketing segment as ongoing operation rather than discontinued operation.
Brazilian Planning Minister Joao Sayad resigned, a presidential spokesman said. His resignation was accepted during a meeting with President Jose Sarney this afternoon, the spokesman said. No official reasons for the resignation were immediately available, but sources close to the government said Sayad had pressed for a three-month price freeze and sharp government spending cuts to combat inflation. Neither Sarney nor Finance Minister Dilson Funaro accepted the proposals, the sources said. Sayad was one of the architects of last year's "Plano Cruzado" program, which froze prices, ended widespread indexation of the economy and introduced the new cruzado currency to replace the cruzeiro in a bid to cut the 250 pct annual inflation rate. After holding prices for nearly nine months, the plan was unable to withstand the inflationary pressures of booming consumer demand and widespread shortages. In the first two months of this year prices rose by around 30 per cent. A sharp deterioration in Brazil's foreign trade surplus caused President Sarney to announce last month the suspension of interest rate payments on 68 billion dollars of commercial debt. Finance Minister Funaro told reporters last week new measures to correct the economy would be announced within a month, although he gave no further details. Earlier today U.S. Treasury secretary James Baker said Brazil should come up with a new economic plan if it hopes to get additional assistance from commercial banks and others. Sayad's resignation might foreshadow other changes in the Brazilian cabinet. Presidential spokesman Frota Netto told journalists earlier today the government was considering a suggestion by the Chief of Civilian Staff at the Presidency Marco Maciel that a new multi-party cabinet be formed to deal with the country's current economic difficulties.
Kansas Republican Congressman Pat Roberts urged the Reagan administration to offer export enhancement program, eep, subsidies to the Soviet Union. Speaking at a House foreign agriculture subcommittee, Roberts said the U.S. has offered eep to China and Poland, and should also include the Soviet Union. Rep. Roberts said there had been some talk that the issue of an eep to Moscow had not been raised within the Reagan administration recently because Secretary of State George Shultz was out of the country. "That very well may be the case," said Tom Kay, U.S. Agriculture Department Foreign Agricultural Service administrator. However, Kay told Reuters later that his reply to Roberts was not based on any particular knowledge. Rep. Roberts urged Kay to convey to top officials of the USDA that some in Congress favor a wheat eep to Moscow. "I'd be delighted to deliver the message," Kay replied. Earlier, Kay had repeated Agriculture Secretary Richard Lyng's statement last week that "the door is not yet closed on an eep to the Soviet Union."
Shr 10 cts vs 10 cts Net 358,941 vs 299,838 Revs 8,645,289 vs 4,532,175 Avg shrs 3,446,752 vs 2,921,173 Nine mths Shr 23 cts vs 12 cts Net 705,799 vs 491,076 Revs 21.5 mln vs 11.0 mln Avg shrs 3,093,491 vs 4,068,000 Note: Net includes tax credits of 164,000 dlrs vs 123,634 dlrs for qtr and 311,000 dlrs vs 207,719 dlrs for nine mths.
U.S. Agriculture Secretary Richard Lyng told representatives of several of the largest grain exporting firms and two farm organizations that he was not in a position to comment on their request that the Reagan administration offer subsidized wheat to the Soviet Union, according to participants in today's meeting. "He (Lyng) simply told us he was not in any position to talk about an EEP (export enhancement program) initiative to the Soviet Union," said Glen Hofer, vice president of the National Council of Farmer Cooperatives. Another participant in the meeting, who asked not to be identified, said Lyng was "unresponsive" to the group's request. Participants in the meeting included Cargill Inc, Continental Grain Co, Louis Dreyfus Corp, Union Equity Cooperative Exchange, the National Association of Wheat Growers, the National Council of Farmer Cooperatives, among others, participants said. Deputy Agriculture Secretary Peter Myers and Under Secretary Daniel Amstutz also attended the 30-minute meeting. Hofer described Lyng as "sympathetic but noncommittal," and said he thought he detected "a sense of frustration" on Lyng's part at not being able to respond more positively to the group's urging. A grain industry representative said some participants were "puzzled" by USDA's apparent reluctance to bring before the cabinet council an EEP wheat offer to the Soviets. "There is a feeling that there is more receptivity (to the idea) within the cabinet council now than there ever has been," this official, who asked not to be identified, said, referring to an EEP wheat offer to the Soviets. This official said there was not a significant amount of pressure being exerted by lawmakers on Lyng to make an EEP offer to Moscow. Reminded that Senate Agriculture Committee Chairman Patrick Leahy (D-Vt.) had written two letters to Lyng urging such an offer, this official said Lyng had received virtually no phone calls from lawmakers on the subject. But Hofer said other important matters at the White House, rather than an absence of political pressure, might have restrained Lyng.
Trade sources here confirmed earlier tentative reports that Bangladesh had bought 200,000 tonnes of optional origin feed wheat late last week and over the weekend. They said the Continental Grain Co, of the United States, won the contract to supply the wheat from the EC and other parts of Europe. It will supply 100,000 tonnes at a rate of 96.92 U.S. Dlrs a tonne as a first consignment by April 7. It will supply the remaining 100,000 tonnes at a rate of 93.42 dlrs by April 16.
Shr basic 39.2p vs 36.0p Shr fully diluted 37.2p vs 34.3p Div 7.0p making 10.5p vs 8.5p Pretax profit 82.19 mln stg vs 68.82 mln Tax 27.25 mln vs 27.42 mln Minority interest 986,000 debit vs 124,000 credit Extraordinary items 411,000 credit vs 219,000 debit
Turner and Newall Plc said it planned to
raise a net 71.7 mln stg with a one-for-six rights issue of
36.15 mln shares.
The shares would be offered at 205p, compared with Turner's
price which fell to 227p from last night's close at 241p.
The group said the funds would be used to cut borrowings,
which had risen to 234 mln stg at end-February, largely as a
result of the takeover of
A leading Soviet economist said the practice of padding figures was significantly inflating the country's industrial production data. "According to the information of state monitoring organs, the padding of figures makes up one-and-a-half to three per cent of the volume of production," Alexei Sergeyev told the official newspaper Sovetskaya Rossiya. "In my opinion, it is significantly higher," Sergeyev, who works at the Economics Institute of the Soviet Union's Academy of Sciences, said. Most Western economists have for years allowed for a certain padding of figures when analysing Soviet statistics for industrial production. Sergeyev said about 600 mln roubles was lost annually in raw material industries by paying wages and bonuses for work which was not in fact performed. He said the elimination of figure-padding and other malpractices would save billions of roubles and would pay for the Soviet Union's social development program up to the year 2000.
Spain's consumer price index rose 0.4 pct in February after increases of 0.7 pct the previous month and 0.4 pct in February last year, National Statistics Institute figures show. Year-on-year inflation was six pct compared with the government five pct target for 1987. It rose 8.3 pct last year.
Far West Financial Corp
said its Far West Savings and Loan Association unit has reached
an agreement in principle to acquire all the outstanding stock
of Progressive Savings and Loan Association
French regional financing group
Qtr ends Jan 31 Shr three cts vs one cent Qtrly div seven cts vs seven cts prior Net 106,185 vs 28,871 Revs 46.9 mln vs 30.3 mln 12 mths Shr 33 cts vs 23 cts Net 1,306,595 vs 878,484 Revs 187.2 mln vs 140.8 mln NOTE: effective July One, 1986, the company acquired the outstanding stock of Western American Forest Product Inc for cash and convertible debentures. the acqustion is accounted for as a purchase and consolidated statements include Western's results of operations from July One, 1986. payout for dividend is may six to stockholders of record on April 13.
Qtrly div five cts vs five cts Pay April 20 Record March 30
The Great Atlantic and Pacific
Tea Co said its three-year 345 mln dlr capital program will be
be substantially increased to accommodate growth and expansion
plans for Waldbaum Inc and Shopwell Inc over the next two
years.
A and P said the acquisition of Shopwell in August 1986 and
Waldbaum in December "helped us achieve better than expected
results in the fourth quarter" ended February 28. Its net
income from continuing operations jumped 52.6 pct to 20.7 mln
dlrs, or 55 cts a share, in the latest quarter as sales
increased 48.3 pct to 1.58 billion dlrs.
A and P gave no details on the expanded capital program,
but it did say it completed the first year of the program
during 1986.
A and P is 52.4 pct owned by
Shr 85 cts vs 24 cts Net 2,381,000 vs 754,000 Revs 35.3 mln vs 32.6 mln Avg shrs 2,777,620 vs 3,161,603 Six mths Shr 1.35 dlrs vs 44 cts Net 3,756,000 vs 1,388,000 Revs 65.8 mln vs 64.3 mln Avg shrs 2,777,620 vs 3,161,603
The Icelandic government said it will privatise the state-owned bank Utvegsbanki, the country's second largest. Parliament also granted an 800 mln crown cash infusion to ease cash flow problems that arose when the bank lost 600 mln crowns in a shipping firm bankruptcy two years ago. Utvegsbanki director Halldor Gudbjarnarson told Reuters the decision to privatise the bank was a relief and that foreign banks had already expressed interest in taking a share. A quarter of the one billion crown total share capital will be available to foreign investors, government officials said.
ANIMED Inc said it expects to return to profitability during the current year. Today it reported a loss for the first quarter ended in January of 368,188 dlrs compared with a 149,334 dlr profit a year before.
Deutsche Babcock AG
Exovir Inc said it sold to an investor group led by Mark Hammer 200,000 shares of company common stock and warrants to purchase an additional 200,000 shares. Exovir said the transaction increases the group's stake from 12.9 pct to 18.5 pct. The net proceeds to the company total 2.8 mln dlrs, the company said. The warrants are exerciseable over the next three years at 19.50 dlrs per share of common stock, according to Exovir.
Teikoku Kako Co Ltd is launching 40 mln Swiss francs of five-year notes with warrants with a 1-1/2 pct indicated coupon, lead manager Credit Suisse said. Terms will be set on March 24 with payment due April 23. The notes are guaranteed by Dai-Ichi Kangyo Bank Ltd.
Rhode Island Democratic Sen. Claiborne Pell introduced legislation to permit eight states along the northeast corridor to sell tax-exempt transportation bonds to improve high speed rail service. His legislation, which also rejects President Reagan's call to sell the Amtrak rail line, would affect the states of Massachusetts, Rhode Island, Connecticut, New York, Pennsylvania, New Jersey, Delaware and Maryland. His plan is an outgrowth of a study by a coalition of northeast governors.
The government announced a three billion
franc program to combat long-term unemployment amid speculation
among political and economic analysts that it is positioning
itself for a period of economic reflation.
The package presented to the cabinet of Prime Minister
Jacques Chirac by Social Affairs and Labour Minister Philippe
Seguin today is to be financed out of a 7.5 billion franc
contingency fund announced on February 25.
Finance Minister Edouard Balladur previously ruled out a
reflationary program.
Long-term unemployment, defined as being out of work for
more than one year, affects about 830,000 people or one third
of French unemployed, government figures show.
The main measures of the employment program give employers
financial incentives to offer short-term work contracts of at
least two years and stress retraining to help the long-term
unemployed return to the labour market.
Training subsidies and exemptions from social security
contributions are the main incentives for employers.
"Companies tell us that we have to give them a strong
incentive to take on people who have fallen out of the labour
market and that's why the proposals...Are costly," an aide to
Seguin said.
The analysts said speculation the government is considering
a reflationary program was sparked by Chirac spokesman Denis
Baudouin, who said yesterday that ministers were generally
agreed on the desirability of relaunching the economy.
He appeared to contradict statements by Balladur ruling out
economic stimulation despite the government's revision of its
1987 growth forecast to about 2.0 pct from 2.8.
Finance ministry officials later clarified Baudouin's
remarks, saying there was no question of any move to stimulate
the economy through a boost to consumer spending although
government policy allowed for increased industrial investment
from the proceeds of France's five-year privatisation plan.
The 1987 budget allowed for 30 billion francs in revenue
from privatisation, to be split between repaying national debt
and providing state enterprises with fresh capital.
Some political analysts said Baudouin's comments possibly
reflect widening differences within the RPR-UDF coalition on
social issues ahead of next year's presidential elections.
Divisions began to show last December, when a wave of
strikes led by transport workers paralysed the country and
drove the government into a new mood of conciliation with
labour.
Officials said that after the success of the privatisation
of Cie de Saint Gobain
Mexican Finance Minister Gustavo Petriccioli said Mexico will sign its 7.7 billion dlr commercial bank loan on Friday. Petriccioli, speaking to reporters after a visit to the World Bank, said the loan was currently 98.5 pct subscribed, a figure Treasury Secretary James Baker used in Congressional testimony yesterday.
St. Joseph Light and Power Corp said its board declared a three-for-two stock split and raised the quarterly dividend on presplit shares to 49 cts per share from 47 cts. The company said the dividend is payable May 18 to holders of record May 4 and the split is subject to approval by shareholders at the May 20 annual meeting.
A House subcommittee voted to give
President Reagan authority to block foreign takeovers of U.S.
companies similar to the takeover of Schlumberger Ltd's
Shr 1.38 dlrs vs 1.24 dlrs Net 213,000,000 vs 195,000,000 Revs 3.37 billion vs 3.12 billion Avg shrs 153,000,000 vs 156,000,000 Year Shr 2.44 dlrs vs 2.20 dlrs Net 381,000,000 vs 347,000,000 Revs 10.38 billion vs 9.54 billion Avg shrs 154,800,000 vs 156,000,000 NOTE: 1985 period ended Feb 1, 1986 Share data restated for common stock split of July 21, 1986 1986 and 1985 earnings reflect a charge of one ct a share resulting from use of the LFIO method of inventory valuation 4th Qtr 1986 earnings include pretax capital gain of 71.2 mln dlrs, or 30 cts a share from sale of Joseph Horne Co Division in Pittsburgh NOTE: 4th Qtr 1986 earnings include a 62 mln dlr, or 20 cts a share, pretax charge for costs associated with combining May D and F and the Denver operating divisions 4th Qtr 1986 earnings include a pretax charge of 26 mln dlrs, or nine cts a share, for costs associated with several debt repurchase transactions including retirement of 10 mln dlrs of 11-7/8 pct debentures
Fleet Financial Group said that its board and the board of Norstar Bancorp have agreed to merge the two bank holding companies in a transaction which would create a 23 billion dlr asset bank holding company. Under terms of the transaction, each Norstar shareholder will receive 1.2 shares of Fleet common stock based on the number of Fleet shares after giving effect to a previously announced April one Fleet stock split. The two-for-one stock split will increase Fleet's currently 25.7 mln outstanding shares to 51.5 shares. There are about 34.9 mln Norstar shares outstanding. Fleet said the deal is expected to be completed by July one 1988, the date on which the nationalization of Rhode Island's interstate banking law takes effect. For the full year ended december 31, Fleet, a Rhode Island based bank holding company, reported net income of 136.7 mln dlrs and assets of 11.7 billion dlrs. Norstar, an Albany N.y. holding company, reported net income of 104.8 mln dlrs and assets of 11.1 billion dlrs. Fleet comptroller Irv Goss said it is estimated that the transaction will result in minimal dilution in Fleet/Norstar earnings per share. It is the intention of both companies that cash quarterly dividends following the combination not decline for either company's stock holders, the company said. For 1986, Norstar issued 1.31 dlrs annually in cash dividends on its common stock. Fleet's current annual distibution on a pre-split basis would be equivalent to 1.68 dlrs a share. In addition, Fleet and Norstar have each granted the other an option to purchase such number of authorized buy unissued shares of common stock, that will constitute 24.99 pct of the fully diluted shares outstanding. The transaction is subject to both regulatory and shareholder approval. The companies said that after the proposed merger, the combined banking holding wil be among the 25 largest in the country.
Qtly div six cts vs six cts prior Pay May Eight Record April 10
The 1988 agriculture budget will have to be cut by an additional one to two billion dlrs, the chairman of a key house agriculture subcommittee said. Implementation of a 0/92 program, a tightening up of the use of commodity certificates, and reconstitution of farms are possibilities that will be studied to reduce farm spending, said Dan Glickman, D-Kans., chairman of the House agriculture subcommittee on wheat, soybeans and feedgrains. Speaking at the annual meeting of the National Grain and Feed Association, Glickman said he learned this week from the House budget committee that the agriculture committee will have to reduce the fiscal year 1988 farm budget by up to two billion dlrs from the 30 billion dlrs level already approved. Decisions on how to cut the farm budget will have to be made very quickly in order to make any impact on the FY 1988 budget, Glickman added. Glickman also said his committee will not approve USDA's proposal to cut target prices by ten pct per year. "The administration's target price proposals are dead in the water," he said. To cut the budget, Glickman said, "everthing is on the table," except those moves that would reduce farmers' income. Glickman offered a list of possibilities that his committee will study in order to cut farm spending. Implementation of a 0/92 program for 1987 winter wheat and 1988 feedgrains crops has been introduced by Glickman, which he said would result in a 150-200 mln dlr savings for one year. Tightening up on the use of generic (in-kind, or "pik') certificates will also be another option his committee will study, Glickman said. While not committing himself for or against such action, he said lawmakers have to examine recent government findings which indicate certificates cost more than cash payments. Glickman said rules for the reconstitution of farms and tightening up of the person definition for annual payment limitations is another option and could save 100-200 mln dlrs. He also said increasing acreage set-aside requirements by five pct for wheat and feedgrains at program sign-up was a move that could save about one billion dlrs, but added that he would not be in favor of such a change. Glickman also said that the Export Enhancement Program's, EEP, spending authority of 1.5 billion dlrs is quickly being used up, and Congress will have to decide whether to expand this program while making cuts in other areas. Cuts in the EEP program are unlikely, he said. "I don't see right now that the EEP will be on the chopping block," Glickman said.
The Soviet Union's recent corn purchases from the United States could total as much as 3.5 mln tonnes, U.S. Agriculture Undersecretary Daniel Amstutz said. "We are not sure how much (Soviets have bought) but we think it could be as high as 3.5 mln tonnes," Amstutz told a House Agriculture Appropriations Subcommittee. He added that China also will need to import more corn this year than earlier anticipated, but he gave no figures.
The National Association of Wheat Growers, NAWG, board of directors is scheduled to meet Secretary of State George Schultz and Undersecretary of State Allen Wallis to discuss the Department's current role in farm trade policy, the association said. NAWG President Jim Miller said in a statement that the organization wanted to convey to Secretary Schultz the importance that exports hold for U.S. agriculture and the degree to which farmers are dependent upon favorable State Department trade policies to remain profitable. "Foreign policy decisions of the U.S. State Department have in the past severely hampered our efforts to move our product to overseas markets," he said. Miller noted Secretary Schultz is scheduled to meet next month with representatives of the Soviet Union, and the NAWG "wanted to be certain the secretary was aware of our concerns regarding the reopening of wheat trade with the Soviet Union." The annual spring NAWG board of directors meeting is held in Washington to allow grower-leaders from around the country to meet with their state congressional delegations and members of the executive branch. The purpose is to discuss the current situation for producing and marketing wheat and help set the legislative and regulatory agenda for the coming year, the NAWG statement said.
Jamaica has been authorized to purchase about 56,000 tonnes of U.S. wheat under an existing PL 480 agreement, the U.S. Agriculture Department said. It may buy the wheat, valued at 7.0 mln dlrs, between March 25 and August 341 and ship it from U.S. ports and/or Canadian transshipment points by September 30, 1987.
mexico's proven reserves of liquid hydrocarbons at end-1986 were 70 billion barrels, slightly down from 70.9 billion a year ago and 71.75 billion in 1984, the state oil company petroleos mexicanos (pemex) announced. Reserves were just 5.77 billion barrels in 1974, rose sharply to 40.19 billion in 1978 and flattened out at 72 billion in both 1981 and 1982. In its annual report, pemex said average crude output in 1986 was 2.43 mln barrels per day, 202,000 bpd down on 1985. Average exports were 1.29 mln bpd, down from 1.44 mln bpd. The company did not say what percentage of hydrocarbons was crude oil, but has previouly said it was about 48 pct. Natural gas output in 1986 was 3.43 billion cubic feet per day, down from 3.6 billion in 1985. Due mainly to the fall in oil prices to around 12 dlrs from 25 dlrs in the year, 58 wells, both exploratory and production, were suspended, 38 of them in less productive areas than the offshore campeche fields which accounted for 64 pct of production.
KeyCorp is offering 75 mln dlrs of subordinated capital notes due 1999 with an 8.40 pct coupon and par pricing, said sole manager First Boston Corp. That is 122 basis points more than the yield of comparable Treasury securities. Non-callable for life, the issue is rated A-3 by Moody's Investors Service Inc and A-minus by Standard and Poor's Corp.
Qtrly div 30.1 cts vs 34.1 cts prior Pay April 14 Record March 31 NOTE: company said prior qtr includes end of year additional four cts dividend.
Shr 14 cts vs 12 cts Net 1,017,000 vs 877,000 Sales 68.1 mln vs 61.2 mln Nine Mths Shr 40 cts vs 17 cts Net 2,986,000 vs 1,215,000 Sales 205.3 mln vs 174 mln Note: Per share figure reflects two-for-one stock split of July 1986.
Arkansas Best Corp said its 1987 first quarter earnings will be significantly lower than fully diluted earnings of 22-1/2 cts per share in last year's first quarter. The company said pricing competition and lower traffic levels in the motor carrier industry hurt its first quarter results. However, the company said its furniture and tire operations are more profitable this year than last year. Arkansas Best also said that if the industry sustains the upcoming 2.9 pct motor carrier rate hike it will offset the Teamster labor increase scheduled for April 1. It said the labor increase then will be 3.2 pct for ABF Freight System, its largest unit.
A U.S. House subcommittee voted to give President Reagan authority to block foreign takeovers of U.S. companies similar to the takeover of Fairchild Semiconductor Corp. by Fujitsu Ltd which was withdrawn. The Energy and Commerce Subcommittee on Commerce approved as an amendment to the overall House trade bill a provision giving Reagan the power to block sales to foreign companies if the sale was not in the national or economic interest. The subcommittee rejected a proposal requiring the U.S. to pay investors one pct for the right to hold their gold investments in government storage. His amendment called for the government to sell gold coins and gold-backed bonds with maturities of 30 to 50 years to investors to reduce the federal debt.
Emhart Corp said it plans to increase worldwide revenues and earnings at an annual compounded growth rate of 15 pct and about 13 pct, respectively. It said these objectives were based on several assumptions, including a four pct average inflation rate through 1989 and a two pct to three pct GNP real growth. In 1986, Emhart reported a net loss of 10 mln dlrs or 35 cts a share, after a 90 mln after-tax restructuring charge, which realigned the company's assets. Emhart has divested itself of many of its units to focus on three primary markets--industrial products, consumer products, and information and electronic systems. Emhart said industrial products should account for about 62 pct of projected 1987 revenues of 2.3 billion dlrs, while consumer products should account for about 20 pct of those revenues and information and electronic systems about 18 pct.
Brazilian red meat production in 1986 fell more than 20 pct to 1.9 mln tonnes due to drought which reduced slaughter weight and to herd rebuilding which started because of high cattle prices, the U.S. Agriculture Department said. In its report on World Production and Trade Developments, USDA said that in 1987, beef production is expected to reach 2.3 mln tonnes. Pork production in 1986 rose 83 pct to 1.1 mln tonnes due to the sharp rise in beef prices and is expected to remain at that level this year, USDA said.
Canadian Pacific Ltd said it retained Wood Gundy Inc to seek a buyer for Maple Leaf Mills Ltd of Toronto. The company said Maple Leaf had 1986 sales of 819 mln dlrs and an after tax profit of 16.3 mln dlrs. It is a diversified agriproducts company which produces and sells industrial and consumer flour, flour-based products and baked goods. It also operates a fully integrated poultry business and a rendering businesses, markets livestock and poultry feed and distributes grain through a network of country and terminal elevators.
XTRA Corp said it agreed to acquire all the stock of RentCo Trailer Corp, a wholly owned subsidiary of Fruehauf Corp for about 70 mln dlrs. RentCo had revenues of about 70 mln dlrs. The transaction is expected to be completed in April and is subject to regulatory approval.
Metro Mobile CTS Inc said it declared a 10 pct stock dividend. The dividend will be distributed on April 13 to holders of record March 30.
East Rand Proprietary Mines Ltd said that barring any major disruption in production, it expects 1987 gold output to top 10 tonnes after dropping to 9.223 tonnes last year from 10.251 in 1985. Chairman Clive Knobbs said in the annual report the mine was expected to mill a higher tonnage while capital expenditure during 1987 will be around 118.5 mln rand. The decline in gold production last year was due to a four pct drop in tonnage milled and a seven pct decline in grade.
Snyder Oil Partners LP said it acquired 1.2 mln shares, or 12 pct, of Cenergy Corp. It said it is continuing to review its investment and has made no determination of its future course of action.
Qtly div 18 cts vs 18 cts prior Pay April 30 Record March 26.
Asked what the U.S. State Department's policy is on offering subsidized wheat to Moscow, Secretary of State George Shultz told a group of farm leaders that U.S. products must be competitive in the world market. "If we are going to sell our products, whatever they may be, wheat or anything else, then we have to meet the market," Shultz told the board of directors for the National Association of Wheat Growers. "We have to be competitive. It's ridiculous to say that somebody is going to buy your product if they can get the same thing at a lower price somewhere else. They just aren't," he said. "That is our approach in the negotiations with the Soviets, and it must be our approach as we look at the American farm program and try to figure out what we should do to make it better," Shultz told the Wheat Growers. Schultz said that while he does not favor a situation that would allow the Soviet housewife to buy food cheaper than the American housewife, he realizes the importance of American agricultural products being competitively priced. Speculation has been in the market for some time that the United States is considering offering wheat to the Soviet Union at subsidized prices. Soviet officials have said they would buy U.S. wheat if it were competitively priced. Agriculture Department officials have declined to take any official position on the issue.
Results were awaited on Egypt's tender today for 200,000 tonnes of U.S. soft or white wheat for April shipment under PL 480, private export sources said.
U.S. Agriculture Undersecretary Daniel Amstutz indicated the world wheat supply/demand situation has become more bullish recently because of developments in the world market and increased consumption. Speaking to a House Agriculture Appropriations subcommittee, Amstutz cited three factors which have improved the wheat outlook. He said world consumption of wheat is increasing by about 20 mln tonnes this year, primarily for feed use. There are also reports from Australia, Canada and Argentina that plantings have been reduced, he said. Furthermore, he cited reports of greater than normal winterkill in the Soviet Union. "It seems reasonable to expect production and consumption to be in far better balance than a year ago," Amstutz said.
Argentina's total oil and gas production fell 9.4 pct in February to 2.78 mln cubic metres from January's total of 3.11 mln cubic metres, the state oil company Yacimientos Petroliferos Fiscales (YPF) reported. A YPF statement blamed the drop on momentary problems owing to the summer season but gave no further details. February's production figure fell slightly short of YPF's target figure of 2.90 mln cubic metres. Oil production totalled 1.76 mln cubic metres last month and natural gas production 1.02 mln cubic metres, down from 1.95 and 1.15 mln cubic metres in January, respectively.
Soybeans produced in the United States face a competitive price problem because of the loan rate provisions of the 1985 farm bill, U.S. Undersecretary of Agriculture Daniel Amstutz said. Amstutz told a House Agriculture Appropriations subcommittee hearing that soybeans are caught in a "squeeze" because the Farm Bill allowed steep cuts in grain loan rates while limiting the soybean reduction. As a result, he said U.S.-produced soybeans "have a price problem" in competing with other soybean producing countries. Amstutz called the situation a "dilemma" for the USDA, and said "we have spent hours in ASCS (Agriculture Stabilization and Conservation Service) looking at this." He did not say what may be done to rectify the situation.
Brazil rejected all offers at tonight's wheat tender, a Brazilian Wheat Board spokesman said. He said no date had been set for the next tender.
About 9,000 miners employed by the state corporation Comibol went on hunger strike to press for higher wages, a miners union spokesman said. Victor Lopez, executive secretary of the miners union, told a news conference the strikers began to fast in the major tin mining districts of oruro and potosi and the action would spread tomorrow to la paz and other areas. The government has charged that the strike by the miners union, crippled by massive layoffs, is part of a left-wing destabilisation plan to coincide with the visit of West German president Richard von Weizsaecker, who arrives on a four-day official tour on Friday. But miners union chief Simon Reyes told reporters the strike had nothing to do with subversion and was to press for more government investment in Comibol. The government of president Victor Paz Estenssoro has streamlined the deficit-ridden state mining corporation laying off about 20,000 miners, two-thirds of the workforce, following a collapse of the international tin price in 1985.
The Taiwan Flour Mills Association will import 81,000 tonnes of wheat from Canada in calendar 1987, unchanged from the 1986 level, an association spokesman told Reuters. He said the total will be delivered in three shipments. The first will be shipped to Taiwan between March 20 and April 20 and the other two will be made later this year, he said. The total wheat import target this year has been set at 700,000 tonnes, down from actual imports of 758,770 last year. Most of Taiwan's wheat imports come from the U.S., The spokesman said.
The Australian Wheat Board (AWB) expects to sell about 900,000 tonnes of wheat to the Japanese Food Agency this year after renewing its annual supply agreement, AWB general manager Ron Paice said. Under the agreement, the AWB makes the wheat available and sells into the Food Agency's regular tenders, he said in a statement. He noted that the Board has sold more than three mln tonnes to Japan in the past three years.
Finnish wholesale prices rose 0.2 pct in February after a rise of one pct in January and a drop of 1.2 pct in February 1986, the Central Statistical Office said. Year-on-year wholesale prices fell 1.9 pct in February after drops of 3.3 pct in January and 1.8 pct in February 1986. The wholesale price index, base 1980, was 136.5 in February, 136.3 in January and 139.2 in February last year.
Pyongyang and a group of Tokyo-based
North Korean businessmen plan to resurrect a North Korean
goldmine and boost annual output to almost one tonne within two
years from 600 pounds at present, said Li Sangsu, a spokesman
for
Higher world oil prices, coupled with a new realism ushered in by austerity, could lift Saudi Arabia's economy after five years of falling revenue and growing budget deficits, bankers and diplomats said. The months ahead will prove critical as the government attempts a balancing act between defending higher oil prices and fostering recovery through a bigger role for the private sector. Economists said oil earnings could recover this year to about 20 billion dlrs and nominal gross domestic product could grow by about three pct, the first rise since 1982. But the economists said this will be possible only if the Organisation of Petroleum Exporting Countries (OPEC) succeeds in defending world oil prices and if Saudi Arabia is not forced to curtail output for too long. Saudi Arabia is now keeping production down to defend OPEC's newly-established 18 dlr a barrel benchmark price. Oil Minister Hisham Nazer told Reuters output is running at about three mln barrels per day (bpd), well down on Saudi Arabia's OPEC quota of 4.13 mln set for the first half of 1987. King Fahd has stamped his personal authority on OPEC's new-found determination to defend prices in a move Western diplomats believe underlines the kingdom's need to secure a stable source of income for its economy. Saudi Arabia, still the world's largest oil exporter, is a hugely wealthy country. But the past five years of declining revenue have taken their toll. Economists estimate gross domestic product fell 10 pct last year and 8.6 pct in 1985. Oil revenue last year, when prices briefly dipped below 10 dlrs per barrel, probably totalled no more than 17.5 billion dlrs, compared to a peak 101.8 billion in 1981. "Austerity is still the watchword, but Saudi Arabia will not be allowed to dip further into recession ... The Saudis can afford to draw down reserves temporarily to offset the worst effects," a diplomat said. In the short-term, the kingdom can lessen the impact of lower oil revenues and a gaping budget deficit by drawing on foreign reserves, still put at around 100 billion dlrs. But such a policy cannot be pursued indefinitely. Bankers and diplomats said it would amount to fiscal recklessness in the longer term. It also increases the dominance of the public sector at a time when the government is publicly urging private enterprise to take over the lead role in the economy. Bankers and diplomats said the government is well aware of the risks attached to this policy but is determined to "tough it out" on the oil front even if that means a short-term depletion of reserves. The 1987 budget deficit is targetted at a huge 52.7 billion riyals or 31 pct of total outlay. The budget explicitly recognises the need to draw down reserves while foreign borrowing has been ruled out. Commerce Minister Suleiman Abdulaziz al-Salim told Saudi businessmen this week the government had carefully considered the need to stimulate the economy when drawing up its budget plans late last year. "It therefore took the bold step of withdrawing more than 50 billion riyals from its reserves and pumping it into the economy," he said. Reserves were built up during the late 1970's and early 1980's when Saudi Arabia's breakneck pace of construction and tales of high spending became legendary. The shrinking economy has wrought huge changes in the fabric of the Kingdom's private sector where poor management had gone unpunished in the easy days of the oil boom. Modern techniques of cost control have been introduced, markets expanded and outsized labour forces and inventories cut back. The expatriate workforce has fallen sharply. The number of new bankruptcies appears to be declining but Saudi banks, hit hard by non-performing loans to the corporate sector, have become highly selective in extending new credit. Government moves to encourage lending and investigate company complaints about late public sector contract payments could boost confidence but recession has slowed the nation's industrialisation program and discouraged foreign investment. Private wealth is still very high and banks report more and more cash being placed on deposit. As Saudi Arabia attempts to shift the weight of economic development from the public to the private sector, one of the biggest tasks will be to convince businessmen to channel personal savings into industrial projects within the kingdom and refrain from the temptation to invest abroad.
Clearing bank sterling lending to the U.K. Private sector in February is estimated to have risen by an underlying, seasonally-adjusted 1.6 billion stg after a 1.2 billion stg rise in January, the Banking Information Service said. The unadjusted rise was 1.31 billion stg, compared with an 813 mln stg increase in January. The Banking Information Service said the adjusted rise of 1.6 billion stg was well above the recent monthly average of about 1.0 billion stg. Of the increase, 297 mln stg was accounted for by personal lending, which the Banking Information Service said was taken up entirely by lending for home purchases. Lending for consumption fell around 17 mln stg while about 182 mln stg of credit card debt was repaid during the month. Lending to the manufacturing industry was up 370 mln stg, and to leasing companies by 308 mln stg. The Banking Information Service said February fell within the governmemnt tax season, so much of the lending was probably the result of industry's need to pay its tax bills. Deposits by the private sector rose an unadjusted 1.1 billion stg in February and by a seasonally-adjusted 1.75 billion stg. Deposits from the public sector rose 185 mln stg in February while deposits from overseas residents rose by 43 mln.
AB Volvo is issuing a 70 billion eurolire bond due May 31, 1990 paying 10-1/8 pct and priced at 100-1/2 pct, lead manager Banca Commerciale Italiana said. The bond is available in denominations of two mln lire and will be listed in London. Fees comprise 7/8 pct selling concession with 1/2 pct for management and underwriting combined. Payment date is April 24 and there will be a long first coupon.
The Bank of England said it revised down its estimate of the deficit in the system today to 400 mln stg from 450 mln.
Cheltenham and Gloucester Building Society is issuing a 50 mln stg eurobond due April 22, 1992, paying 9-1/4 pct and priced at 101-1/4 pct, lead manager Union Bank of Switzerland (Securities) Ltd said. The bond will be available in denominations of 1,000 stg and will be listed in Luxembourg. Fees comprise 1-1/4 pct selling concession and 5/8 pct management and underwriting combined.
The results of a controversial study of farm subsidies conducted by the Paris-based Organisation for Economic Cooperation and Development, OECD, show Japan has the highest agriculture subsidies in the world, and that dairy farmers benefit more than any other commodity producers from subsidies. Results of the study, which has not been released by OECD because of objections from some countries, were provided to Reuters by officials of several countries on condition they not be identified. The OECD study calculates the level of farm subsidies for the years 1979-81 using a new measure called the producer subsidy equivalent, PSE. The study shows that on dairy products Japan's PSE, or the amount of aid to farmers expressed as a percentage, averaged 83.3 pct over 1979-81, with the European Community at 68.8 pct and the United States 48.2 pct. For wheat Japan's PSE averaged 95.8 pct, the EC 28.1 and the U.S. 17.2. Japan's rice PSE was 68.8 pct compared to the EC 13.6 and the U.S. 5.4 pct, the OECD calculations show. In coarse grains, Japan's subsidies reached 107.1 pct compared with 27.9 pct for the EC and 13.1 pct for the U.S. Japan's beef subsidy was 54.9 pct versus 52.7 pct for the EC and 9.5 pct for the U.S., OECD concluded. For sugar, Japan's PSE was 48.4 pct versus 27.9 pct in the EC and 13.1 pct for the U.S., the study shows. The OECD calculated farm subsidies for other industrial countries such as Canada, Australia and New Zealand but in most cases the results were much lower than for the U.S., EC and Japan, the sources said. Subsidies in Argentina and Brazil, two major developing country producers of commodities, were not included in the OECD work. Officials said they hope to persuade reluctant countries to release the study soon, perhaps coinciding with the OECD ministerial meeting in Paris during May. Some officials hope the OECD results will be used as a basis for negotiations during the Uruguay round of global trade talks now underway in Geneva. British Agriculture Minister Michael Jopling during a visit to Washington this week endorsed the OECD work as a starting point for the Uruguay round negotiations on agriculture. He said the PSE calculations provide a tool to negotiate down domestic farm support levels, which are a major cause of the present crisis in world agriculture. However, the OECD study results are controversial because they highlight the levels of assistance to farmers, officials familiar with the study said. The U.S. Agriculture Department's Economic Research Service recently published a study of farm subsidies in an attempt to verify the OECD results and update them to 1982-84. In some cases the results were substantially different than the OECD's, in part because farm policies in both the U.S. and elsewhere had changed markedly by 1982-84 from the OECD base period of 1979-81, U.S. officials said. For example, the USDA study found the United States subsidies to corn producers were higher in 1982-84, at 25 to 49 pct, than in the EC, at zero to nine pct. French Maize Producers Association president Marcel Cazale, citing the result of the USDA calculation for corn, told reporters last week that the United States subsidizes its farmers more than the EC. However, the sources said EC corn subsidies are probably higher than the U.S. now because of increases since 1984. Officials of several countries have been asked to contribute data to OECD so that the study can be updated to 1985 subsidy levels, a much more relevant measure of the current world farm situation. The updated calculations, which may take several months to complete, are expected to show substantial increases in U.S. subsidy levels for sugar because the U.S. imposed restrictive import quotas in 1982 as aid to the domestic industry. U.S. subsidy levels also are increased by the 1985 farm bill, which sharply boosted government deficiency payments to grain farmers and applied a marketing loan for rice, officials added.
Iomega Corp announced it expected revenues for the first quarter of 1987 to be significantly lower than planned and that it anticipated a loss for the quarter. In its annual report to be mailed to stockholders tomorrow, the company will announce its first quarter loss will be in excess of 10 mln dlrs primarily as a result of lower than anticipated revenues. The company said it recored net income of 4,572,000 dlrs, or 30 cts per share, for its first quarter fiscal 1986, on revenues of 35.0 mln. The company said it lowered its revenue plan for the balance of 1987 and also expects to record a loss for the entire 1987 year. Iomega said the first quarter loss will place the company in default under certain covenants in its bank line of credit unless these covenants are modified. The company is currently exploring alternatives for raising additional funds through a debt for equity financing.
Hamburgische Landesbank Girozentrale is issuing a 50 mln Canadian dollar issue due May 6, 1990 carrying a coupon of 8-1/4 pct and priced at 101-3/8, said Merrill Lynch Capital Markets as lead manager. The notes are available in denominations of 1,000 and 10,000 dlrs, with payment set for May 6. The securities will be listed in Luxembourg. There is a 7/8 pct selling concesssion and a 1/2 pct combined management and underwriting fee.
Current interest by Soviet charterers in taking Panamax vessels on timecharter, mainly from the U.S. To carry grain, is seen as the chief factor behind the recent surge in values on the Baltic International Freight Futures Exchange (BIFFEX), dealers said. Futures soared through the 1,000 points barrier today for the first time in the spot position since the market opened in May 1985. However, the market tends to be nervous, with values some 100 points above the Baltic Freight Index, which is calculated on spot physical rates. No specific figure has been put for Soviet bookings but they have been sufficient to drain Panamax tonnage (about 50,000 to 65,000 tonnes dw) from the U.S. Gulf which would normally operate on the trip to Japan, dealers said. "It appears that the Chernobyl disaster had a worse effect on its (the Soviet) grain harvest than reported," one said. Freight rates on the Gulf/Japan grain route have subsequently been the main beneficiary of current chartering conditions, with very few, if any, Panamax sized ships left for the remainder of this month in the Gulf. Rates have risen steadily for vessels loading next month. Dealers said there is even talk that owners are considering taking older vessels out of lay-up to meet current demand. Sentiment has also been aided by suggestions that Chinese operators may be in the market for similar timecharter business later in the year, they said. They anticipate this would appear around June and it has prompted keen demand in the July BIFFEX contract, despite it normally being a slack time in the shipping year. Market sentiment has fluctuated in recent weeks. Rates turned down as an earlier rise in bunker prices, which had supported the market at the start of the year, faltered but then recovered on the reported Soviet interest.
Oper shr 11 cts vs 11 cts Oper net 164,000 vs 161,000 Revs 2,598,000 vs 2,241,000 Nine mths Oper shr 28 cts vs 18 cts Oper net 419,000 vs 276,000 Revs 6,983,000 vs 5,019,000 NOTE: Net excludes tax loss carryforwards 11,876 dlrs vs 83,045 dlrs in quarter and 36,684 dlrs vs 144,590 dlrs
Shr 56 cts vs 63 cts Net 48,500,000 vs 55,400,000 Sales 1.53 billion vs 1.46 billion Avg shrs 86.6 mln vs 87.3 mln Nine mths Shr 1.73 dlrs vs 1.79 dlrs Net 150,300,000 vs 156,200,000 Sales 4.60 billion vs 4.30 billion Avg shrs 86.7 mln vs 87.3 mln NOTE: 1987 results include gain of 9.7 mln dlrs, or 11 cts a share from sale of assets 1986 results include gain of 161 mln dlrs, or 18 cts a share, from sale of assets, offset partly by a restructuring provision Fiscal 1987 results restated to give effect to adoption of financial accounting standards relating to pension costs. Segment data for Foods restated to include results of commodity marketing, previously reported separately. Earnings restated for two-for-one stock split, effective Nov 30, 1986
Preliminary talks are on between two state-owned Philippine banks and Soviet metal trading and equipment sales company Tsvetmetpromexport on rescuing Nonoc Mining and Industrial Corp (NMIC) which operates the Philippines' only nickel refinery, a Soviet official said. G.I. Valentchits, Deputy Trade Minister at the Soviet embassy, told Reuters a report earlier this week that Tsvetmetpromexport had asked the Philippine government whether it could help rehabilitate or operate NMIC was incorrect. "It is the other way round," Valentchits said. He said the Development Bank of the Philippines (DBP) and the Philippine National Bank (PNB), which own NMIC, had approached the Soviet state-owned firm in August last year. "We studied the question and asked the banks in which field and what area they can help in the project," Valentchits said. He said there had been no reply yet from NMIC and the talks were "only just initial." NMIC President Arthur Aguilar and other company officials were not available for comment. Manila banking sources said the situation was serious at NMIC, set up by DBP and PNB in August 1984 after the two banks foreclosed on the assets of Marinduque Mining and Industrial Corp over a 17 billion peso obligation. The bankers said NMIC itself has recently filed with the Securities and Exchange Commission (SEC) for placing the company under receivership and the suspension of its debt payments in order to protect it from threats of foreclosure. Business Day newspaper said the latest credits extended to NMIC include a 127 mln dlr loan, with Chemical Bank as the lead agent. The newspaper said another 33 mln dlr loan was lead managed by Citicorp. It said the government's privatisation program has listed NMIC at a price of at least 700 mln dlrs, adding that foreign investors were wary of taking over the ailing nickel firm. The bankers said NMIC was currently burdened with debts of at least 15.8 billion pesos and is facing 10 civil lawsuits for foreclosures from major creditors. The Business Bulletin newspaper said the firm had assets totalling 12.2 billion pesos, while DBP and PNB exposures with the firm were estimated at 14.9 billion pesos. NMIC has not operated its plant in the southern Philippines since March 1986 after workers struck demanding payment of salaries delayed because of the firm's financial difficulties. The firm produced 1,863 tonnes of nickel in the first two months of 1986, compared with 2,364 tonnes in the same period in 1985. The mine's capacity is 2,000 tonnes a month.
Energy Secretary John Herrington said he would rule out a tax on gasoline as one option to help avert what his departmet has called the threat of increased reliance on foreign oil in the coming years. He said at a news conference that any recommendation he would make would have to increase domestic production, not cause widespread economic hardship and have a minimal cost to the U.S. taxpayer. On the grounds of increasing production, he said, "I would rule out a gasoline tax." Herrington also repeated he would rule out an oil import fee because of the widespread dislocation it would cause -- the loss of about 400,000 jobs nationwide due to higher oil prices and a drop in the gross national product by about 32 billion dlrs. He said an increased depletion allowance, to 27.5 pct, on new and enhanced production of oil and natural gas would be a cheap way to spur domestic production. He estimated this cost at about 200 mln dlrs a year. Herrington proposed the increased depletion allowance to the White House Tuesday but the White House reaction was cool. The White House said it would study the proposal, but was generally oppposed to altering the national tax code, just passed last year. Herrington, asked his reaction to the White House reaction, said, "If I were the White House, I would be cool, too."
Shr 26 cts vs 21 cts Net 5,553,000 vs 4,307,000 Revs 45.1 mln vs 34.2 mln Year Shr 86 cts vs 67 cts Net 18.2 mln vs 14.0 mln Revs 161.1 mln vs 118.3 mln NOTE: Share adjusted for stock dividends.
The Agricultural Stabilization and Conservation Service (ASCS) is seeking offers to process rough rice owned by the Commodity Credit Corporation (CCC) and deliver about 27.0 mln pounds of milled rice for export shipment May 6-20 and May 21-June 5, an ASCS spokesman said. Offers must be received by 1300 CDT April 7, and successful offerors will be notified April 10.
Qtly div 17.5 cts vs 17.5 cts in prior qtr Payable April 15 Record March 31 (Company corrects amount of previous payment in MARCH 18 item to show there was no change)
Blinder International
Enterprises Inc said it will loan four mln dlrs to Cattle Baron
Inc, a subsidiary of Source Venture Capital
The EC Commission granted 25,000 tonnes of free market barley export licences at today's tender and 80,000 tonnes of French maize, grain traders said. The maximum export rebate for barley was set at 137.25 Ecus and for maize at 129.75 Ecus per tonne. All bids for wheat were rejected, they said.
Carson Pirie Scott and Co said the Tax Reform Act of 1986, which repealed investment tax credits, had a negative impact of 22 cts a share on earnings for the year ended January 31. Earlier, Carson reported yearly per-share earnings of 1.83 dlrs, down from 1.86 dlrs a year ago. Average shares increased to 10.2 mln from 9.9 mln a year earlier. Sales gained to 1.41 billion dlrs from 1.30 billion dlrs. Carson said it was "extremely optimistic about improved profit performance in 1987." It said in the first half of 1987 it hopes to reduce seasonal-type losses sustained in the 1986 first and second quarters. The company said that in early April its Oak Brook Hills Hotel and Conference Center in suburban Chicago will open under its management. Provisions for startup expenses have been made, it added.
Shr 55 cts vs 93 cts Net 1.6 mln vs 2.6 mln Revs 5.3 mln vs 1.2 mln Year Shr 73 cts vs 1.36 dlrs Net 2.0 mln vs 3.0 mln Revs 9.1 mln vs 11.0 mln NOTE:1985 net includes 2.7 mln dlrs gain on disposal of unit. 1986 includes operations of Dependable Insurance Gruop Inc.
Shr three cts vs 16 cts Net 127,000 vs 605,000 Sales 14.4 mln vs 9,726,000 Six Mths Shr 17 cts vs 30 cts Net 678,000 vs 1,141,000 Sales 24.6 mln vs 19.2 mln
Champion International Corp, based in Stamford, Conn., said it will expand its mill in Hinton, Alberta, at a cost of about 285 mln Canadian dlrs. The expansion will double the facility's pulping operation to 424,000 short tons per year. The mill produces softwood kraft pulp which is sold to other Champion facilities and on the open market. Champion said it estimates the project will be completed by the end of 1989.
A statement yesterday by Secretary of State George Shultz after he met with wheat growers that U.S. agricultural products must be competitively priced was significant in that he recognized the importance of the Soviet market and the need for U.S. prices to be at world market levels, U.S. grain trade industry officials said. They said that Shultz's comments, while not explicitly endorsing subsidized wheat sales to the USSR, were noteworthy because they were not negative towards such action. In response to a query on what the State Department's position is on selling subsidized wheat to Moscow, Shultz told the leaders of the National Association of Wheat Growers that prices must be competitive if the U.S. is going to trade. The Soviet Union, the world's largest grain importer, has bought no U.S. wheat for more than a year, complaining the price was far above world market levels. A U.S. offer last fall to sell the Soviets lower-priced wheat through the export enhancement program, EEP, was also rebuffed due to the price. Shultz was said to be adamantly against the U.S. wheat offer last year and has been reported to be one of the major obstacles in making another subsidy overture to the Soviet Union, grain industry sources said. Intense speculation the U.S. might make a fresh EEP wheat offer to the Soviets has boosted grain prices significantly in recent trading sessions. Kansas City hard wheat futures rose another 2-1/4 cents by midday at 2.88-1/4 dlrs per bushel, while CBT March wheat was up 1-1/2 cents at 2.92-1/2 dlrs. "I'm not sure this is an about-face, but it's clearly a recognition that unless we're competitive, we won't sell to the Soviet Union," said a lobbyst for a major commodity group. "We have to be competitive. It's ridiculous to say that somebody is going to buy your product if they can get the same thing at a lower price somewhere else," Shultz told the farm leaders. "That is our approach in negotiations with the Soviets," he said. If those comments do signal that the State Department is no longer opposed to the U.S. selling wheat to the USSR under EEP, it certainly improves the chances for an EEP wheat offer to Moscow, an industry lobbyst said. National Wheat Grower's officials were taking a cautious attitude towards the secretary's comments. "His comments were not discouraging, but they didn't in our judgment promise any immediate action on EEP," an official with the wheat group said. The Wheat Growers official noted, however, that "there is significance in that fact that we haven't seen any significant negative commentary on the idea of EEP wheat to the Soviets." In a meeting with exporters this week, Secretary of Agriculture Richard Lyng refused to comment on their request that the administration offer subsidized wheat to Moscow, the officials said. An aide to USDA undersecretary Daniel Amstutz, who is reported to be strongly opposed to EEP wheat to the Soviets, said that the Shultz comments "are consistent with what he (Shultz) has taught for years as an economist," but said they don't necessarily relate to the Soviet Union. Amstutz could not be reached for comment, and an aide to Lyng said Lyng would not comment on Shultz's statements. But trade sources were hopeful that the Shultz comments may indicate some movement towards EEP wheat to Moscow. "If he didn't say no, then there's a chance. This is potentially a positive development," a commodity source said.
The European Community Commission has decided to abolish a special tax of eight Ecus per tonne imposed on exports of Spanish maize, Commission sources said. They said the tax, which applies to Spanish sales to EC and non-EC countries alike, would no longer be required on exports from Spanish ports south of Valencia. The decision was taken at a meeting of the authority's cereals management committee today. The tax had been introduced last September at the same time as a subsidy of eight Ecus per tonne was brought in for exports of maize to Spain from other EC member countries. The aim of the tax was to prevent the maize imported into Spain from the other EC states with the help of subsidies from being reexported back to them. The sources added that Spain had received no answer from the committee to its request that tenders be opened for the sale to third countries of 450,000 tonnes of maize. The request will be considered at the committee's next meeting, the commission sources said. Madrid estimates that it needs to import 1.7 mln tonnes of maize this year, while an EC-U.S. accord guarantees non-EC producer sales to Spain of two mln tonnes of maize and 300,000 tonnes of sorghum annually for the next four years.
First Financial Management corp said it
has offered to acquire Comdata Network Inc for 18 dlrs per
share in cash and stock, or a total of about 342.7 mln dlrs.
The company said for each Comdata share it would exchange
half a First Data share and enough cash to bring the total
value up to 18 dlrs per share, provided that the market price
of First Financial stock were not less than 28 dlrs per share.
It said the cash payment would be based on the average
market price of First Financial during a period shortly before
closing.
First Financial said it would not pursue the offer if
Comdata's board rejected it. Comdata has already agreed to be
acquired by a partnership for either 15 dlrs a share in cash or
at least 10 dlrs in cash and uniuts of securities.
The partnership that made the first offer for Comdata was
Welsh, Carson, Anderson and Stowe. Comdata had previously
entered into an agreement, which collapsed, for a repurchase of
six mln shares at 14.50 dlrs each and for the sale of one mln
shares by a director to
Erbamont N.V. said its major
shareholder
Scott and Stringfellow Financial Inc said it declared its first quarterly dividend of three cents per share payable April 15 to shareholders of record April one.
Odyssey Filmpartners Ltd
said is terminated discussions to acquire
Victory Markets Inc is raising 60 mln dlrs through an offering of subordinated debentures due 1999 with a 12-1/2 pct coupon and par pricing, said sole underwriter Drexel Burnham Lambert Inc. Non-callable for five years, the debt is rated B-2 by Moody's Investors Service Inc. The issue was increased from an initial offering of 50 mln dlrs because of investor demand.
First City Bancorp said two
subsidiaries sold 54 mln dlrs of energy-related loans and loan
participations to
Shr loss 18 cts vs profit 11 cts Net loss 1.5 mln vs profit 868,000 Revs 29.3 mln vs 41.1 mln Year Shr loss 41 cts vs profit five cts Net loss 3.1 mln vs profit 409,000 Revs 99.2 mln vs 231.7 mln
Shr loss 17 cts vs loss 19 cts Net loss 213,000 vs loss 217,000 Sales 6,788,000 vs 6,254,000 Year Shr loss 22 cts vs loss five cts Net loss 270,000 vs loss 61,000 Sales 27.0 mln vs 27.0 mln
Secretary of State George Shultz has decided not to oppose any U.S. wheat subsidy offer to the Soviet Union and has left the final decision on whether to sell subsidized wheat to Moscow up to President Reagan and the Agriculture Department, a State Department official said. "Shultz feels like he fought the battle against a subsidy last summer, and he's not going to the mat again. It's now basically the USDA who has to make their decisions as to what they want to do," the official said. If USDA decides to go ahead with a subsidy offer to the Soviet Union, he said, "Shultz will not wage a vigorous campaign against it. He might not come out in favor of it, but he won't go to the President and voice his objections." In an official statement clarifying Shultz's remarks yesterday to leaders of the National Association of Wheat Growers, the State Department said, "Secretary Shultz expressed his belief that whenever possible, U.S. grain should be competitive on world markets, including the Soviet Union. The Agriculture Department is in the best position to determine whether consideration should be given at this time to extending to the Soviets a subsidy under the Export Enhancement Program." Although Shultz will not oppose a wheat subsidy to the Soviets, there remain obstacles to another subsidy offer to Moscow, the State Department official said. "Everyone in the government agrees that if there is a subsidy to be offered, we would not offer it unless we had a firm commitment from the Soviets that they would buy." USDA does not want a repetition of last summer when the USSR baulked at its offer of four mln tonnes of subsidized wheat, the official, who asked not to be identified, said. The Soviets rejected the U.S. offer then on the grounds that the 13 dlr per tonne subsidy was insufficient to bring U.S. prices down to competitive levels. The Soviets want a higher subsidy offer this time, the State Department source said. "What the Soviets want is something equivalent to the lowest price being paid by anyone in the world," he said. The Soviets argue that they are the best customer of the U.S. and that they are entitled to the best price, he said. Government and commodity sources also said there are elements in the USDA, most notably undersecretary Daniel Amstutz, who remain opposed to a wheat subsidy to the Soviets. "Subsidized wheat to the Soviet Union is still not a foregone conclusion," the State Department official said.
Qtly div 19 cts vs 19 cts prior Pay April 15 Record April three
Frank B. Hall and Co Inc said its independent accountants will issue a qualified report on its financial statements. The company said the opinion is the result of ongoing litigation over its discontinued operations. Earlier it said it lost 2.1 mln dlrs in the fourth quarter against a loss of 2.3 mln dlrs a year ago before discontinued operations. It also said it decided to sell its claims adjusting and admininistrative operations and its automobile dealer insurance unit, creating a reserve of about nine mln dlrs in the fourth quarter 1986 for the sale. The company said it will vigorously defend the litigation arising from the discontinued units. It also said it will concentrate on its direct brokerage and service business.
Intermark Inc, which together with one of its subsidiaries already holds a 43.4 pct stake in Pier 1 Imports Inc, told the Securities and Exchange Commission it plans to acquire a majority of the company's voting stock. Intermark said it already holds 6,839,827 Pier 1 common shares, or 35.66 pct, and its Pier 1 Holdings Inc holds 1,484,516 shares, or 7.74 pct. Intermark said it also has 341,991 shares of Pier 1 preferred stock, or 35.2 pct of the outstanding, while Pier 1 Holdings has 74,225 shares, or 7.6 pct.
Josten's Corp said it agreed to sell its proprietary school business to CareerCom Corp, for 20 mln dlrs in cash and about 1.7 mln CareerCom common shares. Upon completion of the proposed transaction, Josten's will own 20 pct of CareerCom's stock, which it intends to hold for investment purposes, it said. Proprietary school sales totaled about 56 mln dlrs and accounted for less than 10 pct of Josten's total revenue, it added.
Qtly cash distribution 30.5 cts vs 18.4 cts prior Pay May 15 Record March 31 Note: Prior-quarter dividend was an initial payout based on operations for a partial fourth quarter in 1986.
Shr 26 cts vs 18 cts Net 2,102,000 vs 1,415,000 Revs 44.1 mln vs 42.2 mln Year Shr 21 cts vs 91 cts Net 1,678,000 vs 7,105,000 Revs 155.1 mln vs 149.2 mln Note: Current year figures include 10.1 mln dlr writedown of costs and investments associated with ethanol refinery project.
Oper shr 31 cts vs 34 cts Oper net 3,005,000 vs 2,835,000 Revs 13.1 mln vs 9,478,000 Year Oper shr 1.49 dlrs vs 1.15 dlrs Oper net 28.7 mln vs 16.9 mln Revs 47.8 mln vs 32.0 mln Note: Oper net excludes loss from discontinued operations of 726,000 dlrs vs gain of 737,000 dlrs for qtr and gain of 581,000 dlrs vs gain of 2,350,000 dlrs for year. Note: Full name is Western Tele-Communications Inc.
Qtly div 12 cts vs 12 cts Pay April 8 Record April 1
Federal Reserve Board Chairman Paul Volcker said the U.S. Trade deficit is a challenge for the U.S. Equal to the Soviet Union launching of Sputnik. "The international challenge implicit in our huge trade deficit has become the 1980s equivalent to the launch of Sputnik by the Russians in the 1950s, when we suddenly feared we were to be left in the wake of Soviet technological achievement," he said in an address to Florida educators. He said the trade problem underscored the need to reform the U.S. Educational system to improve economic performance. The Commerce Department reported last week that the nation's trade gap, calculated on a balance-of-payments basis, swelled to a record 38.37 billion dlrs in the fourth quarter, bringing the 1986 deficit to a record 147.71 billion dlrs. Volcker called on educators to stress the development of basic reading, writing and mathematics skills and urged them to help students adapt to the fast-changing economic climate. Volcker said the challenge was greatest in the education of low-income minority groups such as blacks and Hispanics.
Japanese short-term interest rates, buoyed recently by seasonal factors, are likely to fall from the beginning of April when the new financial year begins, money traders said. The Bank of Japan is expected to encourage the trend following its attempts to pressure rates to enhance its discount rate cut on February 23, they said. The Bank cut the rate to 2.5 pct from three, and began actively injecting funds into the money market to offset rate rises resulting from the end-of-fiscal-year surge in demand for funds from financial institutions. Despite its attempts to dampen rates with measures such as aggressive commercial bill purchases, the central bank has failed to remove all upward pressure, money traders said. Attractive interest rates offered by domestic banks to compete for time deposits of more than 600 mln yen has underpinned short-term rates, they said. Interest rates on time deposits of more than 600 mln yen were decontrolled by the Finance Ministry last September. This resulted in such deposits with domestic banks rising to 17,830 billion yen by the end-December, a three-fold increase on end-December 1985 levels, bankers said. On March 31, the money market expects to see a 2,000 billion yen surplus resulting from government payment of fiscal funds, money traders said. From April 1, they predict the unconditional call rate will fall to 3.5000 pct from 3.7500 pct today and the one-month commercial bill discount rate to drop to 3.7500 pct from 4.0635 pct. They predict the three-month bill discount rate to slip to 3.875 pct from 4.0000 today and the three-month certificate of deposit rate to slide to 4.10/4.15 from 4.35/25.
The Reserve Bank said it would offer 400 mln dlrs of 13-week treasury notes and 100 mln of 26-week notes for tender next week The bank said it would not take up any stock at next week's auction.
South Korea's current account surplus narrowed to 419 mln dlrs in February from 679 mln in January compared with a deficit of 112 mln dlrs in February last year, provisional Bank of Korea figures show. The current account in the two months of January and February swung to a surplus of 1.1 billion dlrs from a deficit of 494 mln dlrs in the same 1986 period. The February trade surplus narrowed to 235 mln dlrs from 582 mln in January compared with a deficit of 98 mln dlrs a year ago. The overall balance of payments surplus rose to 840 mln dlrs in February from 716 mln in January and 76 mln in February 1986. Exports were 2.86 billion dlrs in February against 2.83 billion in January and 2.23 billion in February last year. Imports were 2.63 billion against 2.25 billion and 2.32 billion. The February invisible trade surplus rose to 109 mln dlrs from 24 mln in January and compared with a deficit of 74 mln a year ago. The transfer payments surplus widened to 75 mln dlrs in February from 73 mln in January and 60 mln a year ago. The long-term capital account surplus was 198 mln dlrs in February against 211 mln in January and 55 mln in February last year. The short-term capital account surplus was 87 mln dlrs against 46 mln and 158 mln. The errors and omissions account left a surplus of 840 mln dlrs in February against deficits of 220 mln in January and 25 mln in February 1986.
Three geographically diverse droughts
in Asia are being linked by some scientists to a
reintensification of the complex and little-understood El Nino
weather pattern,
West German M3 money supply rose a seasonally adjusted 2.6 billion marks in February to 1,035.1 billion, the Bundesbank said. The rise compares with a revised 14.8 billion mark increase in January and a 2.2 billion rise in February 1986.
Guinness Plc
The death of the world's tropical rain forests could trigger a new debt crisis and social and biological disasters, scientists and ecologists involved with the International Tropical Timber Organisation (ITTO) said. At stake is the ability of developing nations, including Brazil, Mexico and the Philippines, to service their debts and the loss of trade worth hundreds of billions of dollars in important sectors such as agriculture and pharmaceuticals, they said. The experts, gathering ahead of an ITTO meeting of consumers and producers near Tokyo next week, said the problem is already acute. The Philippines offers a textbook case of the economic dangers. "For many third world nations, the loss of the forest is not just a loss of resources," said Delfin Ganapin, a Philippine government consultant on environmental impact. "In the 1960s we had 16 mln hectares of commercial forest, now we have one mln. We have only around 10 years of profitable logging left. With a 26 billion dlr debt, the loss of logging foreign exchange earnings is serious," he said. About 14 mln Philippine people depend on upland areas that are now denuded and farmers cannot grow crops. Government security advisers say that as a direct result, the most likely source of revolution in the Philippines is in the upland areas, said Ganapin. Replanting is uneconomic and replanted tropical hardwoods have less than a 50 pct chance of survival. There is no known way to reproduce the wood, or the millions of species within. "No replanting programme has been successful," said Almy Hafild from the Indonesian Network for Forest Conservation. Ganapin said three billion dlrs would be needed in the next two years alone to save five mln hectares of critically denuded land in the Philippines. The experts say that without a major initiative from the development banks, the vicious circle will continue with countries cutting more forest to help service short-term debts at the cost of long-term insolvency. Yet timber, a five billion dlr a year industry, is not necessarily the most direct economic product of the forests, and nations must be educated in how best to "farm" them, said Peter Kramer, World Wildlife Fund (WWF) conservation director. There is a four billion dlr annual global trade in the end products of rattan, and Brazil nuts earn Brazil 16 mln dlrs a year, he said. U.S. Pharmacologist Norman Farnsworth has calculated that 25 pct of all U.S. Prescriptions owe their active ingredients to higher plants growing in the forests. Deforestation would wipe out the chance of further discoveries and force major corporations to research, develop and produce man-made substitutes, at a cost which scientists say is incalculable. By the year 2000, only 10 developing nations will still be exporting timber, from 33 currently, and their export earnings will drop from a 1980 peak of 6.8 billion dlrs to less than two billion, a World Bank and U.N. Sponsored survey said. Of the 20.3 billion dlrs advanced by the World Bank, Inter-American, African and Asian Development Banks in 1980-84, only 100 mln dlrs went to forestry projects, it said. WWF statistics show half of the world's tropical forests have vanished since the 1940s. Of 2,000 mln hectares remaining, up to 16 mln are destroyed each year by destructive logging practises and by local farmers.
The Agriculture Ministry said it revised its April-June sugar consumption estimate down to 623,300 tonnes on a refined basis, from 637,800 estimated at the end of December. It said the estimate for domestically produced sugar supply for the same period was revised to 190,400 tonnes from the earlier estimate of 195,100 tonnes, while imports were revised to 402,000 tonnes from the earlier 435,800 tonnes. It did not revise its sugar consumption estimate of 2.53 mln tonnes for the 1986/87 sugar year ending September 30. The ministry said the estimate for the 1986/87 year's supply of domestically produced sugar was revised to 881,000 tonnes, from the earlier estimate of 863,000. The estimate for 1986/87 imports was revised to 1.642 mln tonnes, from an earlier 1.645 mln tonnes.
A solution to Brazil's debt problems is unthinkable without the involvement of the International Monetary Fund, Juergen Sarrazin, management board member of Dresdner Bank AG responsible for Latin America said. Sarrazin told the business daily Handelsblatt that Brazil's interest payments moratorium had cost it the goodwill of many banks. "Now there will certainly be no solutions without the IMF," he said. "Alternatives which could be imagined before, such as bringing the IMF in with us in a loose form, are over," he said. Sarrazin, who through Dresdner represents German banks in several rescheduling coordinating committees, noted that Brazil was still prepared to negotiate. But he said work in the coordinating committees had already run into difficulties before Brazil's interest moratorium. Justified calls by debtors for more flexibility from the banks were blocked because U.S. Regulations made solutions such as capitalising of interest virtually impossible, he said. Although many European banks were opposed to the use of interest capitalisation, "this was an alternative which has to be brought in," Sarrazin said.
The Swiss Finance Ministry said it was calling two bond issues of a total 550 mln Swiss francs as part of its effort to retire outstanding high-interest debt. The calls, to be made effective June 30 and September 30, affected respectively the 7-1/4 pct bond of 1975 for 250 mln francs and the 6-1/2 pct bond of the same year for 300 mln. A spokesman said the ministry had not yet decided whether to convert the issues into new bonds, but it had outlined plans for two new bonds, each of 250 mln francs. The strong state of government finances might permit it not to issue one or both of them, he said.
India's state-owned National Thermal Power Corp said it has signed an agreement to borrow 169.1 mln marks at a fixed annual 6.48 pct interest for 15 years and eight months, an NTPC official said. The agreement signed last Saturday in Hong Kong with a syndicate of eight Indian and foreign banks including State Bank of India (London), Bankers Trust Co (Hong Kong) and Grindlays Bank Plc (London) fixes the draw-down period at 68 months, the official said. Repayments are in 20 half-yearly instalments starting from the 68th month.
The Bank of England said it gave the money market another 31 mln stg in assistance in the morning session. This brings the Bank's total help today to 759 mln stg and compares with its estimate of a 1.05 billion stg money market shortage which it earlier revised up from 950 mln stg. The central bank bought 31 mln stg of bank bills outright in band two at 9-13/16 pct.
Italian industrial production fell 3.4 pct in January, compared with the same month last year, the national statistics institute Istat said. The rise follows a year-on-year increase in December 1986 of 4.5 pct. Istat's industrial production index, base 1980, not seasonally adjusted, registered 93.3, compared with 96.6 in January 1986. Istat said there were 20 working days in January, the same as December, but one fewer than January last year. Istat said the year-on-year fall reflected poorer performances in the footwear, clothing, textiles, chemicals and metals industries. It said office machinery and data sectors, wood and furniture, precision mechanics, oil and electricity showed improved activity. Calculations based on Istat figures showed industrial production rose 2.4 pct in January, on a month-on-month basis, after falling 12.0 pct in December over November.
President Reagan said the United States must do more to lessen its reliance on imported oil. President Reagan said during a nationally televised news conference that the rising U.S. reliance on foreign oil is a problem that the administration is studying. "We have to study this more," Reagan said. "This is why we increased the Strategic (Petroleum) Reserve, but we have to do more," he said. Reagan said his administration has already proposed deregulating natural gas and eliminating the windfall profits tax on crude oil production. However, he complained that Congress had not yet approved those measures. The Department of Energy earlier this week released a report that warned of rising U.S. reliance on foreign oil imports at a time when domestic production is declining. It suggested options for the administration to consider, but made no specific recommendations.
The Bank of Spain suspended its daily money market assistance and offered to drain funds with three- and seven-day repurchase agreements at 12-1/2 pct, money market sources said. The sources said the measures were a further attempt to rein in money supply and were likely to force some institutions to scramble for funds before the 10-day accounting period for reserve requirements closes on Monday. The bank, which raised its rate for ordinary overnight assistance to 13-3/4 from 13-1/2 pct on Wednesday, opened its special borrowing facility for overnight funds at 14-1/2 pct. Money market sources said institutions in need of funds were likely to have to return to the bank tomorrow for further assistance. The bank rarely invites applications for ordinary assistance on a Saturday and the sources said it was more likely to open its special borrowing facility again.
Trico Industries Inc said it has received a six mln dlr contract to supply hydraulic lift equipment for heavy crude oil production for the Chinese Ministry of Petroleum Industry. The company said the equipment is for use in the Laiohe oilfield 350 miles northeast of Peking and will equip a 140-well program.
Qtly div 30 cts vs 30 cts prior Pay April 16 Record April Three
Louisiana Pacific Corp has agreed to pay 3,475,000 dlrs for the bankrupt Harris Pine Sawmill in Pendleton, Ore., the mill's bankruptcy trustee said. Louisiana Pacific refused to indicate whether it would repoen the lumber mill which was closed after the sawmill owned by the Seventh Day Adventist Church filed a bankruptcy petition in Portland federal court in December. The trustee said the company outbid WTD Industries Inc for the lumber mill, harvested logs and contracts to harvest timber in the national forest. It outbidhell bankruptcy trustee said.
South African year-on-year broadly defined M-3 money supply growth slowed to 8.62 pct in January from 9.32 pct in December, Reserve Bank figures show. M-3 fell to 77.98 billion rand in January from 79.31 billion in December, while preliminary February figures show M-3 at 79.42 billion rand for a year-on-year rise of 10.63 pct. M-2 showed a rise of 5.09 pct for January at 55.68 billion rand after 4.30 pct in December, M-1 16.72 pct at 5.12 billion after 12.80 pct and M-1A 22.79 pct at 14.30 billion rand after 20.54 pct.
Illinois Tool Works Inc said it completed the sale of its Drill and End Mill division, Pine Bluff, Arkansas and Eclipse Counterbore division, Detroit, to newly-formed Eclipse Industrial Pruducts Inc, based in St. Louis. Terms were not disclosed. All employees at both locations will be retained, it added.
The Federal Farm Credit Banks Funding Corp said its will offer a total of 1.7 billion dlrs worth of bonds on March 25. The package includes 540 mln dlrs of three-month bonds and 1.17 billion dlrs of six-month bonds. The issues will be dated and delivered on April 1. The system has 1.6 billion dlrs of bonds maturing on that date.
Mthly div 14.248 cts vs 4.912 cts prior Pay April 10 Record March 31
The Federal Reserve is expected to intervene in the government securities market to add temporary reserves indirectly via 1.5-2.0 billion dlrs of customer repurchase agreements, economists said. Federal funds, which averaged 6.06 pct yesterday, opened at 6-1/16 pct and remained there in early trading.
Shr 58 cts vs 57 cts Net 4,313,000 vs 3,824,000 Sales 72.8 mln vs 61.5 mln Avg shrs 7,492,000 vs 6,740,000 Year Shr 1.33 dlrs vs 1.23 dlrs Net 9,592,000 vs 8,257,000 Sales 226.4 mln vs 184.4 mln Avg shrs 7,228,000 vs 6,740,000
Standard and Poor's Corp said it cut to BBB-plus from A-minus Data General Corp's 184 mln dlrs of senior debt. S and P cited expectations of continued profit pressure for this maker of minicomputer products. The rating agency noted that incoming orders remain lackluster and will probably inhibit any significant rebound in profits this year from the recent near breakeven levels. In the longer term, S and P said an adequate generation of returns on capital would depend on Data General's successful broadening of its customer base.
Shr loss not given Net loss 1,300,000 Sales 3,300,000 NOTE: Company incorporated in June 1985. Fourth quarter loss 895,000 dlrs.
Qtly div 22 cts vs 22 cts prior Pay April 10 Record March 30
Duff and Phelps said it lowered its rating on Delmarva Power and Light Co first mortgage bonds to DP-3 (middle AA) from DP-2 (high AA) and on preferred stock to DP-4 (low AA) from DP-3, affecting approximately 646 mln dlrs in debt securities. The rating change reflects expectations of lower fixed charge coverages and lower internal funding over the next several years, Duff and Phelps said. An interim cut in electric rates in Delaware and Maryland to reflect a lower allowed return on equity was made in the second half of 1986. A final decision is expected in April.
Moody's Investors Service Inc said it downgraded 1.6 billion dlrs of debt of Standard Chartered PLC and its units, Standard Chartered Bank and Union Bancorp. Moody's cited concerns over the asset quality of Standard Chartered Bank. Cut were the parent's junior subordinated debt to A-3 from A-2 and Standard Chartered Bank's long-term deposit rating to Aa-3 from Aa-2. Moody's lowered Union Bancorp's senior debt and preferred stock to A-1 from Aa-3, subordinated debt to A-2 from A-1 and long-term deposits to A-1 from Aa-3. Union's commercial paper and short-term deposits were unchanged. Also left unchanged were Standard Chartered Bank's ratings for short-term deposits. Although Moody's cited Standard Chartered Bank's long-standing position in a number of regional markets and improved risk control procedures, it pointed out that the bank still lacks the stabilizing effect of a more significant presence in the U.K. market. The rating agency reiterated that it is concerned about the relative levels of risk in the bank's widely dispersed asset portfolio.
The Agriculture Department is not considering any major changes in its pricing system for posted county prices, an Agriculture Department offical said. "We do not have current plans to make any major adjustments or changes in our pricing," said Bob Sindt, USDA assistant deputy administrator for commodity operations. U.S. grain traders and merchandisers said earlier this week USDA might act soon to reduce the cash corn price premium at the Gulf versus interior price levels by dropping ASCS posted prices to encourage interior PIK and roll movement. But Sindt denied USDA is planning any such changes. "If people are suggesting that we are going to make wholesale changes in pricing, we are not considering this," he said. Sindt, however, did not rule out the possiblity of implementing more minor changes in its pricing system. "We are continually monitoring the whole nationwide structure to maintain its accuracy," he said. "If we become convinced that we need to make a change, then appropriate adjustments will be made." Sindt acknowledged that concern has been voiced that USDA's price differentials between the New Orleans Gulf and interior markets are not accurate because of higher than normal barge freight rates. He said commodity operations deputy administrator Ralph Klopfenstein is currently in the midwest on a speaking tour and will meet with ASCS oficials in Kansas City next week. Sindt said a number of issues will be discussed at that meeting, including the current concern over the gulf corn premiums. He defended the USDA differentials, saying that these price margins reflect an average of prices throughout the year and that seasonal factors will normally cause prices to increase or decrease. The USDA official also said that only those counties that use the Gulf to price grain are being currently affected by the high barge freight tariffs and increased gulf prices. When asked if the USDA emergency storage program which allows grain to be stored in barges was taking up barge space and accounting for the higher freight rates, Sindt discounted the idea. He said USDA has grain left in only about 250 barges and that, under provisions of the program, these all have to be emptied by the end of March.
A panel of four leading economists told a congressional hearing today that foreign economies will need to expand to avoid recession as the U.S. trade deficit declines. C. Fred Bergsten, a former senior Treasury Department official, and Robert Solomon of the Brookings Institution told the Senate Foreign Relations Committee, the major exporting countries risk recession if they do not expand because U.S. demand for imports is expected to fall. "They need to beef up domestic demand as their trade surplus falls," or unemployment will keep growing, Bergsten said. Bergsten predicted the U.S. trade deficit, which hit 169 billion dlrs last year, will fall 30-40 billion dlrs a year for the next two years as a result of the dollar's 35-40 pct decline since September 1985. The government should intervene to push the dollar down further if the previous declines do not lead to an improvement in the trade picture, if the U.S. budget deficit is not reduced and if foreign expansion does not occur, he added. Solomon said the dollar must fall further to compensate for the huge interest payments required on U.S. foreign debt. The Paris agreement between the major industrialized countries provided only for a pause in its decline, he said. Rimmer de Vries, senior vice president of Morgan Guaranty Trust Co., said the U.S. trade deficit problem is a problem of lagging growth in industrial economies, prolonged currency misalignment, debt problems of the developing countries, and unbalanced growth in the Asian industrializing countries. John Makin of the American Enterprise Institute, suggested foreign tax cuts to increase demand and pick up the slack from the U.S. trade deficit fall.
Celina Financial Corp said shareholders at a special meeting approved a transaction in which the company transferred its interest in three insurance companies to a wholly owned subsidiary which then sold the three companies to an affiliated subsidiary. It said the company's interests in West Virginia Fire and Casualty Co, Congregation Insurance co and National Term Life Insurance Co had been transferred to First National Indemnity Co, which sold the three to Celina Mutual for cash, an office building and related real estate.
Mark IV Industries Inc
Qtly div 50 cts vs 50 cts prior Pay April 20 Record March 31
Qtly div 22 cts vs 22 cts prior Pay April 10 Record March 30
A new International Natural Rubber Agreement, INRA, was formally adopted by a United Nations Conference today. The new accord is due to replace the current one, which expires in October. Conference chairman Manaspas Xuto of Thailand said the formal adoption represented "a historic moment." The latest round of talks, which began March 9, represented the fourth attempt to negotiate a new INRA in nearly two years. Xuto described the negotiations as "by no means easy, and we often faced problems." The new pact is due to enter into force provisionally when ratified by countries accounting for 75 pct of world net exports and 75 pct of net imports. The new INRA will enter into force definitively when governments accounting for at least 80 pct of net exports and 80 pct of net imports have ratified it. It will be open for signature from May 1 to December 31 this year. It is expected that provisional entry into force will take at least 12 to 14 months from now, delegates said. During the hiatus between the two agreements buffer stock operations will be suspended, but the International Natural Rubber Council will remain in place. Xuto told the conference both the 1979 agreement and its successor were aimed at meeting the needs of producers and consumers of natural rubber over the long term. Both had interest in stabilising prices and supplies, Xuto added. He also praised "the spirit of 'give' and 'take' that prevailed throughout this session." Ahmed Farouk of Malaysia, speaking on behalf of producers, said the conclusion of the new pact showed that the mutuality of interests between producers and consumers is now as valid as it was when negotiations of the first agreement began in the 1970s. Farouk said the ability to manage inventories on the basis of predictable stable prices is "a vital consideration for multinational tire companies, whether or not consuming countries as a whole claimed to be no longer so seriously concerned about security of the rubber supply." He said producers considered that the 1979 agreement had served the purpose for which it was created. Farouk urged consuming countries to promote early accession to the new pact "to avoid an undue gap between the old and the new. Gerard Guillonneau of France, speaking for consumers, agreed that the 1979 agreement had worked relatively well. But as economic conditions had changed, he said, consumers had been led to make proposals for improving its functioning. He added that the adoption of the new agreement "attests to the importance of rubber and confidence in the rubber industry."
ended January 31
Oper shr profit 3.98 dlrs vs profit 4.35 dlrs
Oper net profit 123.6 mln vs profit 108.3 mln
Revs 1.88 billion vs 1.76 billion
Year
Oper shr profit 32 cts vs loss 1.23 dlrs
Oper net profit 33.0 mln vs loss 9,055,000
Revs 5.69 billion vs 5.27 billion
Note: 1986 excludes writeoff of 40.4 mln dlrs, primarily
due to investment in Dome Petroleum Ltd
Banco di Roma (London branch) has arranged a 200 mln dlr nominal Euro-commercial paper program, Swiss Bank Corporation International Ltd said as sold dealer. The borrower will be able to issue paper with maturities of seven to 365 days in other avialable currencies, such as European Currency Units. However, it could not issue sterling commercial paper because Bank of England rules prohibit an issuer of certificates of deposit to issue paper denominated in stg. Banco di Roma (London branch) has a certificate of deposit program in the market under which the securities are traded. The program will be aimed at end investor placement.
Bally Manufacturing Corp's proposed
public offering of 24 pct of its Health and Tennis Corp unit is
seen as the first step towards the sale of the entire unit,
analysts said.
"In the longer-term horizon, Bally wants to concentrate on
its gaming businesses," said analyst Dennis Forst of Seidler
Amdec Securities Inc.
Last week, Bally said it was considering the sale of
another non-casino unit, its Six Flags amusement park unit,
which analysts said could fetch about 300 mln dlrs.
Bally spokesman Bill Peltier said "the company currently
has no hard plans to the sell any more of the health club
company, but in the long term we'll wait and see how the
offering goes."
Once Bally's biggest revenue producer, the health club unit
had 1986 operating income of 60 mln dlrs on revenues of 456.2
mln dlrs, 28 pct of Bally's revenues. Analysts estimate the
unit could be sold for for 300-500 mln dlrs.
Analysts said Bally's decision to offer shares in the unit
could be the first step to selling it.
"It would seem obvious that an offering would decrease the
health club unit's debt, increase its cash flow and operating
income, making it an attractive buy to a third party," Steven
Eisenberg of Bear Stearns said.
On Monday, Bally said it filed with the Securities and
Exchange Commission for an initial offering of 24 pct, or 5.8
mln shares, of the unit's common stock at 13-15 dlrs a share.
About half the proceeds, 40 mln dlrs, will be used to reduce
parent Bally Manufacturing's debt which has swelled to 1.6
billion dlrs due to recent hotel acquisitions and the purchase
of shares from Donald Trump who had threatened a hostile
takeover, according to Bally treasurer Paul Johnson.
Remaining proceeds from the stock offering and from a
separate offering of 50 mln dlrs of 20-year convertible
subordinated debt would be used to repay about 75 mln dlrs of
short term senior bank debt of the health chain unit, a Bally
spokesperson said.
Analysts said Bally's health club unit's profits have
remained strong, but are skeptical about the industry's long
range prospects.
"The fitness club industry, over the last 10 years, has
grown tremendously, but the question is whether its a fad or a
permanent part of our lifestyle," said Eisenberg of Bear
Stearns.
Analysts said fitness clubs will likely flourish if the
public stays at its peak of health consciousness, but that
overcapacity is likely to occur as consumer enthusiasm wanes.
In addition, "the returns in the fitness club industry are
just not as high as they are in the gaming industry," said one
analyst.
There are about 6,500 fitness clubs in the U.S., excluding
clubs run by not-for-profit organizations, according to the
Association of Physical Fitness Centers who estimates it to be
an 8.0-billion-dlr-a-year industry.
Asked if anyone has offered to buy the unit, which is the
nation's largest health club chain, Peltier said, "no one has
the money to offer to buy it."
"The fitness industry is a fragmented industry with no
leader and there is a great opportunity for growth through
acquisition and then standardization," said Wayne LaChapelle,
chief financial officer of Livingwell INc
Commercial Credit Co said its
American Health and Life Insurance Co sold its ordinary life
insurance business to American National Insurance Co
The Soviet Union's winter grain crop is likely to have suffered losses due to dry planting conditions last fall and severe cold this winter, an analyst of world weather and crop conditions said. Grain analyst and meteorologist Gail Martell, author of the EF Hutton publication "Global Crop News," said in her latest report that the Soviets may import more grain, possibly wheat, from the U.S. due to potential crop damage. "Compared with last year, the outlook (for the Soviet winter grain crop) is far more pessimistic," she said. "But it's still too early to talk about disastrous losses. A lot will depend on spring weather, not only for the outcome of the troubled winter grain crop, but also for spring planting." Martell said the dry weather conditions last fall probably prevented optimal seed germination for winter grains. Key wheat growing areas of the southern Ukraine and North Caucasus received on 25-35 pct of autumn precipitation, she said. The bitter winter cold temperatures -- which broke record lows that had stood for four decades -- also may have taken its toll on Soviet winter crops, she said. However, she noted that most of the southern grain belt had ample snow cover, which should have well-insulated the majority of crop areas from severe frost damage. The USSR has already bought 20 to 21 mln tonnes of grains in the July 1986/June 1987 marketing year, primarily from Canada, the European Community, Argentina and Australia, Martell said. She cited a number of reasons besides possible crop problems that might point to additional Soviet import demand. Last fall's dry weather may limit livestock grazing on moisture-depleted pastures, while the cold winter weather necessitated supplemental feeding to keep livestock healthy. Martell was also skeptical of a Soviet claim for a 1986 grain harvest of 210 mln tonnes, and said the Chernobyl accident may have contaminated more grain than originally thought and have to be made up with imports. However, she said the U.S. remains a supplier of last resort for the Soviet Union, noting that the Soviets have only just recently begun their first U.S. grain purchases of the 1986/87 season by buying 2.25 mln tonnes of corn. Martell cited USDA statistics showing that since the 1980 grain embargo the U.S. is only a major supplier of grain to the USSR during years of heavy Soviet demand. In 1984/85, the U.S. supplied 41 pct of record Soviet grain imports of 55.5 mln tonnes. But in 1985/86, the Soviet Union bought 29.9 mln tonnes of grain and turned to the U.S. for only 24 pct of that total. While the USDA Soviet import target for grain for 1986/87 was 22 mln tonnes, many U.S. grain analysts have revised their estimates of Soviet imports up to 25-28 mln tonnes, she said.
The Commodity Credit Corporation, CCC, has accepted a bid for an export bonus to cover a sale of 6,000 tonnes of semolina to Egypt, the U.S. Agriculture Department said. The department said the semolina is for shipment April-October, 1987, and the bonus awarded was 224.87 dlrs per tonne. The bonus was made to International Multifoods Corp and will paid to the exporter in the form of commodities from CCC stocks, the department said. An additional 7,000 tonnes of semolina are still available to Egypt under the Export Enhancement Program initiative announced August 1, 1986, it said.
Champion Parts Rebuilders Inc
said it asked the Federal District Court in Chicago for a
declaratory judgment upholding its recent 5.4 mln dlr sale of
common shares and warrants to Echlin Inc
Marcus Corp said its board voted a 50 pct stock dividend to be distributed May 1, record April 15. It said the dividend applies equally to holders of its common stock and Class B common.
Emerald Homes L.P. said its general partners declared an initial 30-ct per unit distribution payable May 15 to unitholders of record March 31. Emerald made its initial public offering February 6.
Total food aid needs in 69 of the least developed countries declined in 1986/87, as requirments fell in many countries in Africa, the Middle East and Asia, the U.S. Agriculture Department said. In a summary of its World Agriculture Report, the department said grain production in sub-Saharan Africa was a record high in 1986, with gains in almost every country. However, food needs in Central America rose, worsened by drought-reduced crops and civil strife. Record wheat production in 1986/87 is pushing global wheat consumption for food to a new high, and higher yielding varieties have been particularly effective where spring wheat is a common crop, it said. However, may developing countries in tropical climates, such as Sub-Saharan Africa, Southeast Asia, and Central America, are not well adapted for wheat production, and improved varieties are not the answer to rising food needs, the department said. World per capita consumption of vegetable oil will rise in 1986/87 for the third straight year. Soybean oil constitutes almost 30 pct of vegetable oil consumption, while palm oil is the most traded, the department said.
Shr 24 cts vs 26 cts Net 1.5 mln vs 1.3 mln Revs 40.5 mln vs 33.5 mln Year Shr 80 cts vs 82 cts Net 4.9 mln vs 4.1 mln Revs 143.0 mln vs 121.1 mln Avg shrs 6.1 mln vs 5.0 mln
Oper shr loss five cts vs loss six cts Oper net loss 157,688 vs loss 96,573 Revs 1,094,331 vs 1,378,973 Avg shrs 3,315,654 vs 1,661,023 Six mths Oper shr loss seven cts vs loss 24 cts Oper net loss 198,555 vs loss 394,589 Net 2,243,377 vs 2,440,850 Avg shrs 2,796,848 vs 1,637,592 NOTE: Current year 2nd qtr and six mths excludes a loss 10,767 dlrs for discontinued operations. Prior year 2nd qtr and six mths excludes a loss of 54,686 dlrs and 112,565 dlrs for discontinued operations. Full name of company is Marcom Telecommunications Inc.
Oper shr loss 11 cts vs profit 33 cts Oper net loss 132,000 vs profit 408,000 Revs 25.2 mln vs 23.0 mln NOTE: 1986 and 1985 oper net excludes a loss of 636,000 dlrs or 52 cts per share and a loss of 994,000 dlrs or 80 cts per share for discontinued operations.
Bolivia, once Latin America's most delinquent debtor, is preparing for a second International Monetary Fund agreement after an economic stabilisation program has effectively slowed inflation and reduced public spending. A fund spokesman said an IMF team would visit La Paz shortly to discuss terms of the new agreement. He said the IMF had disbursed 130 mln dlrs here and 20 mln dlrs are pending under the one year agreement that ends this month. The accord provided for a stand-by loan, a compensatory financing facility and a structural adjustment facility. The spokesman said that if the agreement is renewed, Bolivia can expect a further 60-mln-dlr stand-by loan over the next 12 months. Bolivia's agreement with the IMF, its first since 1980, opened the door to rescheduling negotiations with the Paris Club and Argentina and Brazil, which hold 2.5 billion dlrs of Bolivia's 4.0-billion-dlr foreign debt. Central Bank President Javier Nogales told Reuters the negotiations with the Paris Club, which have yet to be finalised, had been extremely successful. Nogales said the Paris Club had agreed to reschedule Bolivia's debt over 10 years with five to six years grace and had waived all interest payments until the end of 1988. Bilateral discussions on interest rates continue, he said. Nogales said Bolivia was expecting some 400 mln dlrs in disbursements this year from lender countries and international agencies, including the World Bank and the Inter-American Development Bank, although diplomatic and banking sources put the figure at closer to 300 mln dlrs. Nogales said Bolivia's net international reserves are around 250 mln dlrs, up from one mln dlrs when President Ictor Paz Estenssoro took office in august 1985. Nogales said the capital flow on Bolivia's debt servicing versus new credits had changed from a net outflow of 200 mln dlrs in 1985 to a net inflow of 130 mln dlrs in 1986. Bolivia's return from the financial wilderness follows paz estenssoro's economic stabilisation program. He inherited inflation of 23,000 pct a year, state enterprises that were losing hundreds of mlns of dlrs and a currency that traded on the black market at up to 16 times its official rate. Paz estenssoro froze public sector wages, set a market- related rate for the peso, introduced tax reforms and laid off thousands of workers in state corporations. Inflation has been running at 10 pct a year for the past six months, according to the Central Bank, and the government expects the economy to grow three pct this year after a 14 pct contraction over the last six years. The government is also proposing a novel solution to its debt to commercial banks, some 900 mln dlrs, on which interest has not been paid since March, 1984. Nogales said that over the next few months Bolivia would make a one-time offer to buy back all its commercial debt at the price it trades on the international secondary market -- 10-15 cents on the dlr. He said Bolivia's commercial bank steering committee agreed at a meeting in New York to consider the proposal, but it is still unclear what proportion of the country's creditor banks will take up the offer. One foreign banker speculated that Bolivia might be able to buy back up to 30 pct of its commercial debt paper under the deal, mostly from small banks who have written off their loans to the country. But he said the larger creditors were more interested in a scheme of debt-equity swaps, similar to that which has operated in Chile for the past two years. The Bolivian government has yet to draw up proposals for debt-equity swaps, but the banker said it was planning to privatise more than 100 state companies and these could serve as a basis for such a scheme. Foreign bankers said this type of proposal might prove attractive to Bolivia in the long run, especially as the government realises that it will have to attract a large amount of new capital in order to grow. Planning Minister Gonzalo Sanchez de Lozada told Reuters that Bolivia was hoping for five to six billion dlrs in new investment over the next 10 to 12 years. The government realises that in order to remain viable, Bolivia will need to develop new exports. The price of tin, which accounted for some 45 pct of Bolivia's exports in 1984, has collapsed on the world markets, and gas, the country's major revenue earner, is in abundant supply in the region.
Cooper Basin oil producer Santos Ltd
Shr 27.89p vs 24.24p Div 9.0p vs 7.75p making 13.75p vs 12.0p Turnover 1.26 billion stg vs 1.19 billion Pretax profit 54.6 mln vs 46.5 mln Tax 16.5 mln vs 13.5 mln Interest paid 2.2 mln vs 2.4 mln Minority interests 2.3 mln debit vs same Extraordinary items 42.3 mln profit vs 5.4 mln loss Pretax profit includes - Agribusiness 28.3 mln vs 22.5 mln Health products 6.5 mln vs 5.4 mln Wholesale food distribution 8.3 mln vs 7.3 mln Retail food distribution 4.2 mln vs 5.9 mln U.K. 28.7 mln vs 27.2 mln U.S. 21.1 mln vs 16.1 mln
The entire British Petroleum Co PLC refinery at Grangemouth in Scotland has been shut down following the explosion and fire that severely damaged the hydrocracker at the site, a refinery spokesman said. He said the rest of the 178,500 bpd refinery, including the 19,000 bpd catalytic cracker, was undamaged. The whole refinery was closed pending enquiries but a decision when to reopen the main units will be taken in the next couple of days, he said. But there was extensive damage to the central part of the 32,000 bpd hydrocracker, which upgrades heavy oil products to gasoline, and it will be out of operation for some months. The spokesman said BP will not suffer supply shortages as a result of the explosion as it will be able to bring in product from other sources. BP has a 437,000 bpd refinery in Rotterdam, a 181,900 bpd unit at Ingolstadt, West Germany, a 181,900 bpd plant at Lavera in France and a smaller Swedish plant. He said the explosion and fire, in which one worker was killed, occurred when the hydrocracker was not in operation. The refinery as a whole had been operating at about half of its capacity since the end of January while an extensive overhaul was carried out on the North Side of the complex where the hydrocracker is sited, he said. This work was scheduled to be completed by mid-April, but this is now being assessed following the hydrocracker accident. Two people were killed in an explosion and fire in a flare line at the Grangemouth refinery on March 13, but the spokesman said this incident was some 100 yards from the latest accident.
Gross domestic product is expected to grow by 4.4 pct in the year ending June 30, Finance Minister Mohammad Syeduzzaman told reporters. Inflation fell to an estimated 12 pct this fiscal year from 17 pct in 1981/82, he said last night. The World Bank and other independent sources have said inflation would be around 15 pct in 1986/87. Syeduzzaman said remittances from expatriates would rise to 600 mln dlrs this year from 425 mln in 1981/82. Foreign exchange reserves at end-June are projected at 680 mln dlrs compared with 105 mln in 1981/82, he said. Syeduzzaman said the export target has been set at 900 mln dlrs this year against 626 mln in 1981/82. Commitments for foreign loans and grants total more than five billion dlrs in 1986/87, against 3.54 billion five years previously, he said. The government's liberal industrial policy has attracted investment commitments totalling 250 mln dlrs, he said Foodgrain output is estimated at 16.4 mln tonnes this year, up from 16.12 mln in 1985/86 and 14.4 mln in 1981/82. Government officials have said Bangladesh must import nearly two mln tonnes of grain annually up to 1990, when the government expects to attain self-sufficiency in food.
The Tasmanian Public Finance Corp, guaranteed by the state of Tasmania, is issuing a 46 mln Australian dlr eurobond due April 23, 1992 paying 14-3/4 pct and priced at 101-1/8 pct, lead manager Deutsche Bank Capital Markets said. The bond will be available in denominations of 1,000 and 10,000 dlrs and will be listed in Luxembourg and Frankfurt. Fees comprise 1-3/8 pct selling concession and 5/8 pct management and underwriting combined.
French gross domestic product should grow by 2.3 pct in 1988 after two pct growth this year and 2.1 pct in 1986, the Finance Ministry said. The latest forecast, prepared by the National Accounts and Budget Commission, assumed an exchange rate of 6.20 francs to the dollar this year and next and an average oil import price rising to 18.9 dlrs a barrel next year from 17.4 dlrs this year and 14.7 in 1986. The Commission, headed by Finance minister Edouard Balladur, forecast a fall in consumer price inflation to two pct year-on-year at end-1988 from 2.4 pct at end 1987 and 2.1 pct last year. In annual average terms inflation would fall to two pct in 1988 from 2.5 pct this year and 2.7 pct last year, it said. Trade should show a one billion franc annual surplus this year and next after last year's 0.5 billion surplus, it added. Employment should rise by 0.1 pct a year over the next two years while the state budget deficit should be cut to 2.2 pct of GDP in 1988 from 2.6 pct this year and 2.9 pct in 1986. Other forecasts prepared by the Commission indicated a 1.8 pct 1988 rise in household purchasing power, up from 1.1 pct this year but less than last year's 2.9 pct, and a 1.6 pct rise in household consumption, compared with this year's 1.5 pct and last year's 2.9 pct. Business investment is forecast to rise four pct a year this year and next after 3.7 pct last year, with private sector productive investment rising 4.9 pct in 1988 after a six pct rise this year and 5.5 pct in 1986. The Ministry said updated forecasts would be prepared before the autumn to serve as the basis for the 1988 budget, which the government is now preparing for presentation in September.
Denmark's balance of payments on current account was provisionally put at zero in February, against a 181 mln crown surplus in January and a 1.5 billion deficit in February 1986, the National Statistics Office said. Exports rose to 13.94 billion crowns in February from 12.53 billion in January, against 14.16 billion in February last year. February imports rose to 13.94 billion from 12.35 billion in January, against 15.67 billion in February 1986. The February figure provisionally gives a trade surplus for 1987 of 180 mln crowns, against a 3.04 billion deficit in the same 1986 period.
Australian wheat plantings are forecast to fall to 10.40 mln hectares in 1987/88 from 11.72 mln sown in 1986/87, Australian Wheat Forecasters Pty Ltd (AWF) said in its first preliminary crop forecast. But there was no reason to expect Australian production in 1987/88 would be less than the 16.5 mln tonnes of last year, the private forecaster said, as crops in New South Wales and Queensland suffered from poor yields last season. Most of the fall in plantings was expected in Western Australia while state average yields would be assisted by growers sowing wheat on fallows and rest paddocks, it said. The main reason for a low Western Australia estimate was a poor profit outlook under cost, credit and yield pressures. But in the eastern states the wheat area should hold up provided that rainfall between now and June is not less than average, AWF said. Although some farmers were saying they intended to cut back wheat area by 20 pct, AWF said this was unlikely since they needed cash flow and there were problems with alternative crops. "The lack of statutory marketing for oilseeds, pulses and oats is a cause for concern if those crops are to comprise a high proportion of growers' income," AWF said. AWF's state area forecasts in mln hectares, with 1986/87 production in mln tonnes, are as follows (crop forecasts were not given for the new wheat year) Area Crop 1987/88 1986/87 1986/87 Queensland 0.82 0.82 0.95 N.S.W. 3.07 3.17 4.40 Victoria 1.53 1.63 3.25 S.Australia 1.45 1.64 2.30 W.Australia 3.53 4.46 5.60
Brazil's attempt to seek better terms for paying off its 109 billion dlr foreign debt is responsible and modest, a former chairman of President Reagan's Council of Economic Advisers said. "I think that what Brazil is calling for -- limiting its debt payments to two and one half pct of GNP -- is a responsible request on their part," economist Martin Feldstein said at a weekend news conference. "It requires additional money on the part of the banks, but rather modest additional amounts." Feldstein is attending the annual meeting of the Trilateral Commission, a foreign policy group of more than 300 business and government leaders from North America, Europe and Japan. Feldstein, one of four members of a task force on Third World debt, said that Brazil's request would mean an additional credit of three billion to four billion dlrs from banks and international agencies. "Brazil's debt would increase in dollar terms but remain constant in real terms. The four billion dlr increase in Brazil's 100 billion dlr debt would represent no increase in the real inflation-adjusted size of its liability," he said. Feldstein said he believed current Third World debt problems were less serious than those faced by the international monetary system in 1983 and 1985. However, the European representative on the task force, Herve de Carmoy, chief executive international for Midland Bank PLC, disagreed. He called the present situation more difficult and, in a draft proposal included in the task force's report, suggested setting up an institution, possibly within the World Bank, with a fund that could deal with a future debt crisis. Commission discussions were closed to reporters but it was apparent from the news conference that task force members did not agree on all points in their report. One point of agreement, Feldstein said, was that debtor countries would need additional credit in the coming years if they are to enjoy satisfactory growth. Feldstein said the task force, which also included Koei Narusawa, economic adviser to the president of the Bank of Toyko, and Paul Krugman, professor of economics at the Massachusetts Institute of Technology, did not agree on how much credit would be needed. He said they also did not reach a consensus on how willing international banks, particularly those in Japan and Europe, would be to lend the money. The Trilateral Commission was set up in 1973 by David Rockefeller, former head of Chase Manhattan bank, and others to promote closer cooperation among the three regions.
The world's dependency on the Mideast
as the source for its petroleum is growing and nothing is going
to stop it, Donald K. McIvor, an Exxon Corp
Fruit of the Loom Inc said it agreed to sell its General Battery Corp subsidiary to Exide Corp for about 145 mln dlrs in cash. The proposed sale will complete Fruit of the Loom's previously announced plan to divest itself of unrelated businesses. Proceeds from the proposed transaction are more than the price projected in the company's recent initial public offering, it said. Completion of the transaction is subject to a definitive agreement, regulatory approvals, financing and certain other conditions and is expected to close May one, 1987, the company said.
Winchell's Donut Houses LP said it has declared an initial quarterly dividend of 45 cts per unit on Class A and Class B limited partnership units, payable May 29 to holders of record March 31.
Nigeria's Central Bank has changed the rules governing its foreign exchange auctions in what analysts see as a means of defending the naira currency, which has depreciated steadily. The bank said in a statement that from April 2, banks bidding for foreign exchange would have to pay at the rate they offered and not, as presently, at the rate of the lowest successful bid made at the auction. This should discourage banks from bidding high to ensure that they were successful while paying the lower "marginal" rate, analysts said. The Central Bank also announced the auctions would be fortnightly, not weekly, beginning on April 2.
The Bank of England said it had given the money market a further 485 mln stg assistance in the afternoon session. This takes the Bank's total help so far today to 582 mln stg and compares with its forecast of a 750 mln stg shortage in the system today. The central bank bought bank bills outright comprising 345 mln stg in band one at 9-7/8 pct and 75 mln stg in band two at 9-3/16 pct. It also purchased 65 mln stg of treasury bills in band one at 9-7/8 pct.
Because its novel financing deal sold
quickly last week, General Motors Corp's
Sen. David Pryor, D-Ark., said he was considering amending the Senate Finance Committee's trade bill with a provision to require a marketing loan for soybeans, corn and wheat. Pryor told the Futures Industry Association that there was great reluctance among members of the Senate Agriculture Committee to reopen the 1985 farm bill, and that a marketing loan might have a better chance in the Finance panel. The Arkansas senator said the marketing loan -- which in effect allows producers to pay back their crop loans at the world price -- had led to a 300 pct increase in U.S. cotton exports in 14 months and a 72 pct increase in rice exports. Pryor serves on both the Senate Finance and Agriculture Committees.
Shr profit 0.2 cts vs loss 2.2 cts Net profit 2,900 vs loss 43,500 Sales 1,660,000 vs 950,000 Year Shr loss 30 cts vs loss 37 cts Net loss 578,900 vs 713,300 Sales 5,112,100 vs 3,659,600
Greece will hold a buying tender on April 8, for reply by April 10, for 40,000 tonnes of white sugar from EC member countries, for delivery in four equal tranches in May, June, July and August, traders said.
Tonka Corp said it expects results for its fiscal first quarter to end April four, to decline from the record earnings of 3.8 mln dlrs or 57 cts a share and revenues of 53.2 mln dlrs. The toy manufacturer attributed its anticipated lower financial results to an an expected moderate decline in shipments of its Pound Puppies product line. Tonka also said it expects revenues and earnings to remain lower through the 1987 first half compared with 1986 record results of 125.4 mln dlrs in revenues and 10.3 mln dlrs in net earnings or 1.47 dlrs a share. The company said its level of shipments is good despite a conservative buying pattern on the part of retailers industry wide. Tonka's first quarter shipments will be down somewhat from 1986 record levels and gross profit margins will be down slightly from a year ago, it said. Second half sales are expected to be stronger based on a return to a more traditional seasonal shipping pattern in which retailers order and stock conservatively early in the year and time large shipments for the second half, it said. Tonka said that while the pace of order writing is trailing last year's, bookings are "very good" for orders on several of its new product introductions for 1987.
Bayerische Vereinsbank AG
Argentina expects to reach agreement with its commercial bank creditors in the near future on a new financing package including 2.15 billion dlrs in new loans, Treasury Secretary Mario Brodersohn said. Addressing Argentine businessman during the Inter-American Development Bank (IADB) meeting here, he said the two sides will meet again next Thursday in New York. "We have made significant progress over the last 30 days and we should have an agreement in a shorter lapse of time than managed by Mexico, Venezuela or Chile," he said. Brodersohn reiterated that Argentina's goal is to reach an agreement which permits four pct growth this year, following last year's 5.5 pct and negative growth in 1985. He said discussions were still continuing on debt-capitalization plans and schemes for on-lending, in the light of certain Argentine concerns. The government is anxious that debt that is capitalized should represent new investment in the country on a dollar invested per dollar capitalized basis, rather than a simple transfer of ownership of the debt, he said. At the same time, it wants to avoid an expansionary monetary impact from on-lending schemes, whereby debt repayments are recycled by banks into new loans. Brodersohn said also agreement was close on the proposal for so-called exit bonds, whereby creditors can sell out their debt. Argentina's 1987 financing needs come to 3.53 billion dlrs, including the 2.15 billion from banks and a 1.38 billion dlr IMF loan already agreed. It is projecting a current account deficit of 2.2 billion dlrs after one of 2.4 billion last year. It estimates export earnings will have dropped by 7.1 billion dlrs between 1985-87 as a result of falling commodity prices. Argentina, owing 50 billion dlrs, is Latin America's fourth biggest debtor.
McDonald's Corp rose sharply today after receiving a second recommendation in as many sessions, traders said. Today, analyst Richard Simon of Goldman Sachs and Co reaffirmed his recommendation of the stock and put it on his "focus list," traders familiar with the recommendation said. Simon was unavailable for comment. The stock jumped 2-3/4 to 79-7/8. On Friday, analyst Daniel Lee of Drexel Burnham Lambert Inc reiterated a recommendation of the stock focusing on increased comparable store sales and consistent annual earnings growth. Friday, the stock closed 1-5/8 points higher. Wendy's, another operator of fast food restaurants, rose one to 12-3/4 in active trading. Vague rumors that Wendy's is a takeover candidate continued to circulate Wall Street, traders said.
The European Community (EC) cereals trade lobby organisation Coceral said it has written to EC Farm Commissioner Frans Andriessen to propose a new system for sales into intervention, which it claims could save the EC budget money. It proposes that applications for intervention be made through a certificate valid for execution three months later. If during the three months the trader found a market elsewhere, he could buy back the certificate on payment of a one pct premium. Coceral argues that this would restore the original function of intervention as a safety net and would end the present situation in which produce is often sold into intervention as a precaution.
Communaute Urbaine de Montreal is issuing a 75 mln Canadian dlr bond due April 22, 1997 carrying a coupon of 8-7/8 pct and priced at 101-5/8, Banque Nationale de Paris said as lead manager. The notes are available in denominations of 1,000 and 10,000 dlrs and will be listed on the Luxembourg Stock Exchange. Payment date is April 22, 1987. The issuers' outstanding securities are rated A-plus by Standard and Poor's Corp. There is a 1-1/4 pct selling concession and 5/8 combined management and underwriting fee. REUTERS
Iraq's Oil Minister Qassem Ahmed Taqi has been moved to the Heavy Industries ministry, the official Iraqi news agcny INA said tonight. It quoted a Presidential decree appointing Oil Ministry undersecretary Isam Abdul-Rahim Al-Chalaby as the new Oil Minister. The Ministers of Industry and Communication and Transport had both been relieved of their posts, the news agency said. No immediate explanation was given for the changes. Al-Chalaby is the head of the Iraqi National Oil Company. INA said the decree, signed by President Saddam Hussein, relieved the Minister of Heavy Industries, Subhi Yassin Khadeir of his post and appointed him a Presidential adviser. His ministry was formerly known as the Industry and Mineral Resources Ministry. The Minister of Communications and Transport, Abdel-Jabbar Abdel-Rahim al-Asadi was also relieved of his post and replaced by a member of the ruling Baath party regional command, Mohammed Hamza al-Zubeidi. Al-Zubedei is also a Presidential adviser. All three ministers involved in the reshuffle had spent more than four years in their posts.
Shr 43 cts vs 32 cts Net 1,991,000 vs 1,485,000 Sales 11.7 mln vs 9,479,000
LSI Logic Corp said it intends to offer 100 mln dlrs of convertible subordinated debentures due 2002, outside the U.S., through Morgan Stanley International and Prudential-Bache Capital Funding. The company said it is issuing the debentures with an indicated coupon range of 5-3/4 pct to 6-1/4 pct and an indicated conversion premium range of 24-26 pct. The debentures will be convertible into common stock through the life of the bonds. The company said the debt is expected to be listed on the Luxembourg Stock Exchange.
The Senate this week might take up proposed legislation that could serve as a lightning rod to expose broad initiatives to change U.S. farm policy. The Senate could consider a House-passed bill that would allow wheat and feedgrains farmers to receive at least 92 pct of their income support payments if flooding last year prevented, or will prevent, them from planting their 1987 crops, Senate staff members told Reuters. Also pending is a bill extend the life of the National Commission on Dairy Policy. Sen. Rudy Boschwitz, R-Minn., intends to offer an amendment to one of the bills that would suspend the minimum planting requirement for all 1987 wheat, feedgrain, cotton and rice producers, an aide said. Under current law, producers must plant at least 50 pct of their base acreage to be eligible for 92 pct of their deficiency payments. Most major U.S. farm groups have lobbied hard against making any fundamental changes in the 1985 farm bill out of fear a full-scale debate could expose agricultural problems to budget-cutting pressures. Representatives of these farm groups have said they also fear efforts by Midwestern Democrats to force a floor vote on a bill that would require large acreage set-asides in return for sharply higher support prices. However, Sen. Tom Harkin, D-Iowa, sponsor of the bill, told Reuters he did not intend to offer his measure as a floor amendment but to bring it through the committee.
Qtly div 15 cts vs 15 cts previously Pay May 15 Record April 18
Wolverine World Wide Inc said it signed a letter of intent to sell to an investment group two subsidiaries, Kaepa Inc, an athletic footwear maker, and its international marketing arm, Kara International Inc. Terms were not disclosed. Wolverine said the action continues the restructuring operation begun last July to make the company more competitive and profitable. Wolverine said it will concentrate its effort in the athletic footwear market in its Brooks footwear division. Wolverine said it expects "favorable results in the second half as a result" of its restructuring. In 1986 it said restructuring helped improve its financial capabilities. The company reported a 12.6 mln dlr loss, or 1.75 dlrs a share, in 1986 due largely to a 9.0 mln dlr restructuring charge and a 4.0 mln dlr inventory evaluation readjustment taken in the second quarter. Since that time, it has sold two small retail operations, closed and consolidated five domestic footwear factories and closed about 15 retail locations.
Oper shr loss 20 cts vs loss 81 cts Oper net loss 1,042,000 vs loss 4,077,000 Revs 38.5 mln vs 50.3 mln 12 mths Oper shr loss six cts vs loss 43 cts Oper net loss 336,000 vs loss 2,176,000 Revs 137.8 mln vs 209.1 mln NOTE: qtrs 1986 and prior exclude net realized investment gains of 74,000 dlrs and 644,000 dlrs, respectively, and years 1986 and prior exclude realized investment gains of 642,000 dlrs and 1,979,000 dlrs, respectively.
Coca-Cola Enterprises Inc is raising 600 mln dlrs through offerings of 10-year notes and debentures due 2017, said lead manager Salomon Brothers Inc. A 300 mln dlr issue of notes was given a 7-7/8 pct coupon and priced at 99.65 to yield 7.926 pct, or 70 basis points over Treasuries. The notes are non-callable for seven years. An equal-sized offering of debentures was assigned an 8-3/4 pct coupon and priced at 99.40 to yield 8.807 pct, or 115 basis points over the off-the-run 9-1/4 pct Treasury bonds of 2016. Non-refundable for 10 years, the debentures will be subject to a sinking fund beginning in 1998. The sinking fund for the debentures will retire five pct of them a year. The issuer has an option to increase the sinker by 200 pct, giving the debentures an estimated average life of 21.5 years, Salomon said. Moody's Investors Service Inc rates the issue A-2, compared to a AA-minus rating by Standard and Poor's Corp. Allen and Co Inc and Merrill Lynch Capital Markets co-managed the two issues, which were each increased from initial offerings of 250 mln dlrs.
Shr loss eight cts vs profit 10 cts Net loss 714,905 vs profit 889,679 Revs 1,091,461 vs 3,156,569 Year Shr loss five cts vs profit 22 cts Net loss 422,037 vs profit 1,850,637 Revs 6,642,490 vs 7,948,312 Avg shrs 8,808,323 vs 8,412,822
Iraqi President Saddam Hussein carried out his first major government shakeup in five years tonight, naming a new oil minister in shuffling three posts. One minister was dropped in the shuffle, announced in a presidential decree. It gave no reason for the changes in the government of the Arab Baath Socialist Party which has ruled Iraq since a revolution in 1968. The decree named the head of the Iraqi National Oil Company (INOC), Isam Abdul-Rahim al-Chalaby, to take over as oil minister replacing Qassem Ahmed Taqi. Taqi, appointed oil minister in the last significant government reorganization in 1982, was moved to be minister of heavy industries.
U.S. Agriculture undersecretary Dan Amstutz indicated the United States is willing talk with the Soviet Union about the competitiveness of U.S. wheat prices but would not discuss making U.S. wheat prices "cheap." "There sometimes is a difference between being competitive and being cheap," Amstutz told a Senate Agriculture Appropriations hearing. Amstutz said the difference of opinion between Moscow and Washington last summer on the level of the U.S. subsidy offered on wheat to the Soviet Union, was over whether the U.S. wheat price was competitive or cheap. "I think there is a (U.S.) willingness to explore this issue as it pertains to competitiveness," Amstutz said. However, Amstutz added that the United States would not be willing to discuss wheat prices with Moscow "if the issue is being cheap." Asked later by a reporter what he meant by the distinction between competitive and cheap, Amstutz would not elaborate. Amstutz said it is the U.S. judgment that the long-term grain agreement between the two countries calls for Moscow to buy at least four mln tonnes each of wheat and corn annually at "prices in effect in this country." Amstutz made the comments in response to a question from Sen. Charles Grassley, R-Iowa, about expanding the export enhancement program to include grain sales to the Soviet Union.
U.S. Treasury Secretary James Baker said leading Latin American nations have delayed accepting a U.S. compromise proposal on major reforms of the Inter-American Development Bank. In an interview with a small group of reporters, Baker said discussions on far-reaching reforms of the bank would resume around the fringes of the semiannual meeting of the International Monetary Fund in two weeks time. But Baker said his compromise proposal, which he would not disclose, was no longer on the table. "I made it clear that the proposal was not one that I expected to leave out there if we could not resolve it at this meeting," Baker said. The U.S. had pressed for virtual veto power over IADB loans which were made on terms Washington considers far too lax. In a bid to integrate the Bank into the U.S. debt strategy, Washington has suggested it would be ready to subscribe nine billion dlrs to a new four-year capital replenishment of the Bank. In return Latin nations would have to give up their 54 pct simple majority voting power over IADB lending. Baker said, "In my view, they have not rejected it out of hand at all and that it will be considered, should we choose to advance it at the April meeting." A U.S. contribution of that size would lead to an effective four-year lending program by the Bank of 22.9 billion dlrs. The actual capital increase would amount to 27 billion dlrs, but usable resources would be less because the callable capital of Latin debtors is theoretical and does not take place in practice, U.S. officials explained. In return Latin nations would have to give up their 54 pct simple majority voting power over IADB lending. Initially, the U.S. wanted 65 pct of votes to proceed with a loan, a position that would have given the U.S. a virtual veto since it holds almost 35 pct of the votes. But it seemed clear from Baker's remarks he was at one point ready to concede an increased voting power, such as 62.5 pct or 60 pct as the majority for approving loans, that would amount to a compromise between the original U.S. and Latin American positions. Baker said, "In my view, they have not rejected it out of hand at all and that it will be considered, should we choose to advance it at the April meeting." Baker made clear that since Mexico, Brazil, Venezuela and Argentina, representing the Latins, had declined to accept the plan today, the U.S. had reverted to its original position, but he added, "It's possible the proposal could be revived." U.S. officials, who asked not to be named, said they believed a decision was not forthcoming because several top Latin finance officials were absent from the IADB annual meetings here. And one official added that the key Latin officials would be present at the semi-annual meetings of the IMF and the World Bank. The Treasury Secretary warned that if the issue is left unresolved "we can't look towards a greater (capital) replenishment here." That would mean the U.S. would use another multilateral development bank, like the World Bank, as its principal vehicle for lending tied to fundamental economic reforms in debtor nations. The IADB has tended to make loans for projects rather than sectoral loans aimed at reforming Latin economies and hence has never fully participated in Baker's third world debt plan.
Qtly div 10 Canadian cts vs 10 Canadian cts prior Pay May 25 Record April 20
Avalon Corp said that
The Quaker Oats Co said it sold its Vernell's Fine Candies Inc unit to privately-held Keystone Partners Inc for an undisclosed price. The company said Vernells had sales of around 30 mln dlrs in the year ended in August, 1986. Quaker Oats acquired Vernells in August, 1986 when it purchased Golden Grain Macaroni Co.
Oper shr loss 20 cts vs loss 81 cts Oper net loss 1,042,000 vs loss 4,077,000 Revs 38.5 mln vs 50.3 mln 12 mths Oper shr profit six cts vs loss 43 cts Oper net profit 336,000 vs loss 2,176,000 Revs 137.8 mln vs 209.1 mln (Company corrects to show profit rather than a loss for current 12 mths oper shr and oper net.)
West German aid to Bolivia will rise to 91 mln marks in 1987 from 50 mln in 1986, West German President Richard Von Weizsaecker said. Weizsaecker, speaking to the Bolivian Congress yesterday, said of Latin America's 380 billion dlr foreign debt, "Debtor countries and creditors must cooperate with the banks and international financial organizations to find long-term solutions." Bolivia's debts total 4.4 billion dlrs. "We wish to reach a reasonable agreement with Bolivia so that the country can experience a significant financial respite," Weizsaecker said. The two countries earlier signed two technical and financial cooperation treaties. West German officials said aid last year included 35 mln marks in financial cooperation. Bolivian Foreign Minister Guillermo Bedregal told reporters West Germany would provide 300 mln marks to help fight Bolivia's cocaine trade. The illegal trade in cocaine is West Germany's most worrisome drug problem, West German officials said.
Britain and Australia have offered a total of 129,250 tonnes of wheat to Bangladesh as grants to contain rising cereal prices and help support rural employment projects, officials said. They said 79,250 tonnes of wheat promised by Britain would be shipped next week and used for the government's "Food for Work" program in the villages. Under the program, workers building roads, digging irrigation canals and engaged in other rural development activities get their daily wages in wheat instead of money. The 50,000 tonnes of Australian wheat would arrive in Bangladesh next month and be sold under open-market operations designed to stop price increases, the officials said. Prices of rice and wheat have risen at least 15 pct in the past month, market sources said. But the government expects prices to fall after the wheat harvest next month.
French domestic bond issues totalling 4.45 billion francs have been approved by the bond issuing committee for publication in the Official Bulletin of March 30, the committee announced. The largest of the issues will be a three-billion franc bond for the Caisse d'Aide a l'Equipement des Collectivites Locales (CAECL), comprising a two-billion franc fixed-rate tranche and a one billion franc variable-rate tranche. Financement Local et Regional (FLORAL), a finance house managed by CAECL, will issue an 800 mln franc bond and Caisse Nationale de l'Energie will issue a 650 mln franc bond, of which one of the lead-managers will be Banque Nationale de Paris. Details will be released later, the committee said.
China's fifth securities market will open on April 1 in the industrial port city of Tianjin, the People's Daily overseas edition said. It said the market will in its first phase trade four bonds, two issued by banks, one by a well-known city bicycle factory and one issued by the city government to finance construction of a road. Buyers and sellers can either agree on a price between them and register the deal with the Industrial and Commercial Bank that will run the new market or entrust the bank to make the deal, it said. The paper said that only financial organisations and not other firms or individuals could handle such trading. China's first securities market opened last year in the northeast city of Shenyang and, since then, others have opened in Shanghai, Peking and Harbin.
The Central Bank said it issued 4.96 billion dlrs worth of certificates of deposit (CDs) today, after issuing 4.03 billion of similar CDs yesterday, bringing the total value of CD issues in 1987 to 139.46 billion. The new CDs, with maturities of six months, one year and two years, carry interest rates ranging from 4.07 pct to 5.12 pct, a bank official told Reuters. The issues are designed to help curb the growth of m-1b money supply, which is expanding as a result of large foreign exchange reserves. The reserves hit a record 53 billion U.S. Dlrs yesterday.
Barbados is making its annual trip to the international capital markets a bit earlier this year and has mandated Barclays Bank Plc to arrange a 25 mln stg revolving credit, Barclays said. The financing will be for seven years, with four years grace, and will allow the borrower to make drawings in U.S. Dollars. The credit will be transferable and carry interest at 1-1/8 pct over the London Interbank Offered Rate. There is a commitment fee of 1/2 pct. Banks are being invited to join at four mln stg for 50 basis points and at 2.5 mln stg for 40 basis points. The terms represent an improvement over those obtained last year, when Barbados tapped the market for a 25 mln dlr transferable loan facility, which carried the same maturity but had interest at 1-1/4 pct over Libor. The facility was subsequently increased to 40 mln dlrs. However, the loan was not signed until November 5, and bankers said that this year Barbados wanted to have the financing in place early to give it greater flexibility in drawing the funds over the course of the year. Last year Barbados boosted its capital market borrowings with a small private yen placement in the Japanese market. At the signing of the 40 mln dlr facility, Winston Cox, advisor to the Central Bank of Barbados, said he was looking to make greater use of the international capital markets to reduce the country's dependence on multi-national orgainsations. However, bankers believe this will be the country's only major financing for this year, although another small private placement in Japan could be arranged later in the year.
Finance Minister Kiichi Miyazawa said the time has come for major industrialised nations to take action on exchange rates in line with their agreement last month in Paris. In Paris, Britain, Canada, France, Japan, the U.S. And West Germany agreed to coooperate to hold currency rates around their then current levels. Miyazawa would not say what specific measures major nations would take, but told reporters the measures had been discussed in Paris. The dollar fell to a record low against the yen this morning, piercing the 150 yen barrier. Asked if major nations were now negotiating on what measures to take, Miyazawa said they were not as measures had already been agreed in Paris.
U.S. Trade Representative Clayton Yeutter said he was unsure whether some of the trade issues straining U.S.-Japanese relations would be resolved before the two countries open trade talks in late April. "We are having high level discussions on them (the issues) within the United States...The relationship on some of those is very strained between us (Japan) at the moment and we need to relieve those strains at the earliest possible date," he said. "I am not sure we can wait until late April," he added. Yeutter is in New Zealand for a two-day informal meeting of trade ministers who are reviewing the Uruguay round of the General Agreement on Trade and Tariffs (GATT). He said he will meet the Japanese delegation over the next few days but declined to discuss methods of relieving the strain between the two countries. Yeutter said earlier the three most contentious trade issues were semiconductors, Japanese government unwillingness to allow public entities to buy U.S. Super-computers and the barring of U.S. Firms from the eight billion U.S. Dlr Kansai airport project near Osaka. The Japanese delegation to the GATT talks said in a statement yesterday they are making major efforts to dismantle trade barriers in their country. "I am convinced that they are attempting to move their policies in the right direction. The question is how far and how fast," Yeutter said.
The Bank of England said it had provided the money market with 115 mln stg assistance in the morning session. This compares with the Bank's forecast of a 300 mln stg shortage in the system today. The central bank bought bills outright in band two at 9-13/16 pct comprising 73 mln stg bank bills and 42 mln stg local authority bills.
The 1992 deadline for abolishing economic barriers within the European Community should help French economic growth and create jobs, president of the French employers' federation CNPF Francois Perigot said. "Having a market at our disposal which is as homogeneous and accessible as that of Europe is an incredible piece of luck," he told Le Figaro in an interview. He said that the majority of French business leaders were enthusiastic about the abolition of barriers and saw it as an opportunity rather than a danger for their companies. "It can permit us to return to a growth rate which is much better than we could achieve in isolation. We know that we have to reestablish growth at three pct a year to solve the enormous problems confronting us -- and I am referring mainly to unemployment," Perigot added. Finance Minister Edouard Balladur said yesterday that French growth would be just two pct this year, the same as last year and compared with the government's original 2.8 pct target.
Eurofima is issuing a 125 mln ECU, 7-3/8 pct bond due March 3, 1997 at 101-1/2 pct, lead manager Societe Generale said. Fees are 1-1/4 pct for selling and 3/8 pct each for management and underwriting including a 1/8 pct praecipuum. The non-callable deal of unsecured, unsubordinated debt is in denominations of 1,000 and 10,000 ECUs and will be listed in Luxembourg. Payment date is April 21 giving a short first coupon. Co-lead managers are DBCM and SBCI.
The Bank of England said it provided the money market with assistance of 104 mln stg in the afternoon session. This takes the bank's total help so far today to 219 mln stg and compares with its estimate of a 300 mln stg shortage. The central bank bought outright 104 mln stg in bank bills in band two at 9-13/16 pct.
Columbia First Federal Savings and Loan Association said it has acquired the insured deposits of first Federal of Maryland, based in Hagerstown, from the Federal Savings and Loan Insurance Corp and reopend First Federal's six former offices as Columbia First branches. The Federal Home Loan Bank Board had closed First Federal on March 20 because it was insolvent. First Federal had assets of 115.2 mln dlrs.
Honduras will tender March 26 under PL480 for U.S. and non-U.S. flag vessels to import 1,500 tonnes of tallow in bulk, an agent for the country said. The agent said delivery includes laydays of April 5-15. Offers are due by 1200 hrs EST, March 26, and will remain valid until the close of business the following day, the agent said.
Shr 90 cts vs 97 cts Shr diluted 82 cts vs 88 cts Net 42.1 mln vs 43.0 Revs 379.3 mln vs 352.7 mln Avg shrs 46.8 mln vs 44.3 mln Avg shrs diluted 52.6 mln vs 50.0 mln Year Shr 1.58 dlrs vs 1.81 dlrs Shr diluted 1.50 dlrs vs 1.76 dlrs Net 73.7 mln vs 77.9 mln Revs 1.20 billion vs 1.16 billion Avg shrs 46.8 mln vs 43.0 mln Avg shrs diluted 52.6 mln vs 45.6 mln
Rice and corn farmers will receive the largest payments from the U.S. government during 1987 if the subsidies are calculated per planted acre, the U.S. Agriculture Department said. USDA said government outlays to rice farmers in 1987 are expected to reach 403 dlrs per acre planted, followed by corn at 135 dlrs per planted acre. Government outlays include mainly deficiency payments and price support loans. On a per acre basis, cotton payments will reach 73.24 dlrs in 1987, wheat 60.30 dlrs, sorghum 54.38 dlrs, barley 27.41 dlrs and oats 2.31 dlrs, USDA said. USDA estimates farm subsidies will reach 25.3 billion dlrs in 1987. The figures were given by USDA officials at a Senate Agriculture Appropriations hearing yesterday.
Claremont Group Ltd, a New York investment banking firm, said it intends to boost its current 10 pct stake in Champion Products Inc to as much as 15 pct of the total outstanding common stock. Claremont added that it asked Champion to put two representatives on its nine-member board of directors. Claremont previously disclosed in December that it had agreed to act in concert with Walsh, Greenwood and Co, an affiliated investment firm, to acquire Champion Products. Claremont said it made net purchases of 7,800 Champion Products shares between Jan. 28 and March 18. In a March 20 letter to Champion Chairman John Tanis, Claremont and Walsh representatives Stephen Walsh and John Cirigliano said they were pleased with the company's performance but wanted to take an active management role. "We believe that Champion Products has just begun to evolve into the market leader it will eventually become," they said. "As significant shareholders with mutual interests with the company, we would like to actively participate in this process." Claremont's intentions and the letter were made public in a filing with the federal Securities and Exchange Commission.
National Semiconductor Corp said improved results at its Semiconductor Group helped reduce losses in the third quarter and nine months. In the quarter ended March 8, the group had a modest sales increase and major improvement in operating performance compared to the year-ago quarter, the company said. But results softened from the prior quarter because of low bookings last fall for third quarter shipment and holiday shutdowns, it said. The semiconductor maker cut net losses to 25.6 mln dlrs or 31 cts a share from 39.4 mln dlrs or 47 cts in the quarter. Losses in the nine months were reduced to 32.7 mln dlrs or 44 cts from 84.4 mln dlrs or one dlr. Sales grew 23.5 pct in the quarter to 398.1 mln dlrs and 25.5 pct in the nine months to 1.36 billion dlrs. Bookings recovered in the latter part of the third quarter, the company said. Despite the improvement in order rates and operating results year-to-year, pricing continues to be "aggressive for many products," it said. Nevertheless, it expects the semiconductor business will continue to improve this year. The Information Systems Group will continue strong sales growth based on recent order trends and new product introductions, it said.
Representatives of South Africa's Standstill Coordinating Committee (SCC) and its commercial bank creditors have agreed new terms covering repayments of 14 billion dlrs of debt, banking sources said. The debt is covered by a standstill agreement that expires June 30. Under the new accord, the standstill will be extended for three years to June 30, 1990. There will be an immediate repayment of three pct to all the banks, to be followed by various payments at six-month intervals over the life of the agreement totalling some 1.5 billion dlrs. The three pct payment will be due July 15, 1987. Subsequent repayments will be determined under a complex structure which will be based on the maturity structure of individual banks' loans, the bankers said. The bankers, who declined to be identified, said the agreement also will give banks the option to convert their existing debt into term loans for 10-years, with five years grace. An agreement reached last year allowed for the conversion of the short-term debt covered by the standstill into three-year loans. Bankers said today's talks concluded months of intense negotiations. They said the South African Finance Ministry is expected to make a statement on the agreement later today. A review of South Africa's economy by the economic subcommittee of commercial banks is nearing completion and should be announced shortly, the bankers said. No further details were immediately available.
Robert Heller, a member of the Board of Governors of the Federal Reserve System, said commodity prices could form a useful guide for setting domestic and international monetary policy. Speaking to the conservative Heritage Foundation, Heller said, "A broadly based commodity price index may be worth exploring" as a guide to monetary policy. "In times of rising commodity prices, monetary policy might be tightened and in times of falling commodity prices, monetary policy might be eased," he said. Commodities are also standardized to avoid measurement problems and occur at the beginning of production so as to give "early warning" signs of wholesale and retail changes. "There is no need to react to every small fluctuation in commodity prices or to do so on a daily basis," Heller said in a prepared text. "But if commodity prices exhibit a broad trend, a policy action might be considered," he said. Heller said using a broad-based commodity price index as an indicator for monetary policy would also contribute to stabilized currency exchange rates. Commodity prices are generally uniform worldwide and prices for them are more consistent than for other types of goods, he said. He said other beneficial effects would be to stabilize export commodity prices for developing countries by using a commodity basket as a guidepost for monetary policy.
The Soviet Union supports the freedom of navigation in the Gulf and does not support any act which would cause the deterioration of the situation in the region, its ambassador to Kuwait, Ernest Zverev, told the Kuwaiti news agency KUNA. "We support the freedom of navigation in the Arabian Gulf and the Strait of Hormuz," the agency quoted Zverev as saying. KUNA also said the envoy had discussed the deployment of Iranian missiles near the Strait of Hormuz with Kuwaiti Foreign Undersecretary Suliman Majed al-Shaheen. A British naval source in the Gulf said today Iran had test-fired its new Silkworm missiles and set up launching sites in the area. The tests had been successful and the missiles could be used against shipping in the strait, the source added. But Iranian Parliamentary Speaker Hojatoleslam Akbar Hashemi Rafsanjani said Iran did not need missiles to close the strait because "we can close it with artillery only." The U.S. Has said it will not allow Iran to use missiles to choke off oil shipments and offered its warships to escort Kuwaiti tankers past the missile batteries in the strait.
Shr 19 cts vs 14 cts Net 487,000 vs 344,000 Revs 7,492,000 vs 5,883,000
Hecla Minging Co said it
has agreed to purchase a 28 pct interest in the Greens Creek
Joint Venture from British Petroleum Co PLC's
The move by foreign exchange markets to test the strength of the Paris currency accord has thrown into question the near-term outlook for sterling, until recently one of the main beneficiaries of the agreement, analysts said. Since the six-nation accord last month, sterling has risen sharply, adding almost five pct on its trade-weighted index. While the accord effectively stifled dollar/yen and dollar/mark movements, the markets turned their attention to sterling as foreign investors rushed to take advantage of relatively high U.K. Interest rates. But analysts say the pound has been sidelined by the first tentative test of the Paris accord seen yesterday. The market now looks set sooner or later to push the dollar down further in a test of the willingness of central banks to intervene. Analysts say if the banks do not intervene effectively, the Paris accord could collapse. "On balance, sterling would be a net sufferer if G-6 collapses," Phillips and Drew analyst Stephen Lewis said. He said sterling would lose out as markets turned their attention to capital movements whereas previously they had been restricted to looking only at the interest yield on currencies. However, although most analysts and foreign exchange dealers were forecasting a brief period of consolidation or even retracement for sterling, none were expecting a very sharp drop in the U.K. Currency. Sterling remained supported by optimism on the U.K. Political and economic outlook, firmer oil prices and relatively high interest rates, they said. Bullish sentiment on the U.K. Economic outlook has been running especially high after last week's budget, seen as popular both with the markets and with British voters. Sterling was also supported by signs of a weakening in the West German and Japanese economies, where growth for 1987 is trailing behind the three pct forecast for the U.K. Recent opinion polls showing Britain's ruling conservative party ahead of opposition parties in popularity have also supported the pound. In addition, sterling has so far shrugged off two half-point cuts in U.K. Bank base lending rates in less than two weeks. A further half-point cut, widely expected in the next week or so, has already been largely discounted. U.K. Base rates, now running at 10 pct, are still relatively high compared to other western countries, and analysts said a further base rate cut to 9-1/2 pct was unlikely to affect sterling. Sterling today appeared resilient to the dollar's decline, dropping only slightly on a cross-rate basis. Worries about renewed turbulence in the foreign exchange markets, however, were reflected in the U.K. Government bond (gilt) market, where prices dropped by up to 5/16 point. Until now foreign investor interest in the gilt market has been one of the major reasons behind the rise in sterling. Dealers said they expected the pound to hold quietly steady for the next few days while the market awaits further developments on the dollar and this Thursday's U.K. Current account figures for February. Market forecasts are for a deficit of around 250 mln stg after January's small surplus.
Oper shr 11 cts vs five cts Oper net 248,000 vs 122,000 Sales 7,269,000 vs 5,481,000 Year Oper shr 55 cts vs 14 cts Oper net 1,288,000 vs 333,000 Sales 26.2 mln vs 17.6 mln NOTE: Net excludes discontinued operations nil vs gain 103,000 dlrs in quarter and losses 82,000 dlrs vs 50,000 dlrs in year. 1986 year net excludes 133,000 dlr provision for loss on disposal of discontinued operations.
Standard Chartered Plc
Cincinnati Gas and Electric Co filed with the Securities and Exchange Commission for shelf offerings of up to 1.3 mln shares of cumulative preferred stock and of up to 200 mln dlrs of first mortgage bonds. The utility said terms would be set at the time of sale. An underwriting group will be led by Morgan, Stanley and Co Inc. Proceeds will be used for general corporate purposes, including the financing of new construction and refunding of cumulative preferred stock.
A member of the Federal Reserve Board, Robert Heller, said he wanted to see stronger Japanese demand for American goods. "What I was advocating here was more Japanese purchases of American goods," Heller said in response to a question about the dollar's weakness in currency markets. He told a Heritage Foundation forum, "I'd be very happy to see that." In his formal remarks, Heller said he supported the idea of using commodity prices as an indicator for monetary policy. Asked if he would raise the issue at the next Federal Open Market Committee meeting, he said, "Even at previous meetings commodity prices were raised." He added, "I would not expect future meetings to be different from past meetings in that respect."
President Reagan signed a bill limiting fees that may be charged by the Government National Mortgage Association (GNMA) for its guarantees of privately issued mortgage-backed securities but voiced serious reservations about the measure. He said the bill's provision barring GNMA from increasing its current fee of .06 pct charged to issuers of single-family mortgage backed securities "is an unnecessary and risky congressional intrusion into GNMA's ability to respond quickly and flexibly to changes in financial markets." Reagan said his reservations "must be addressed promptly through remedial amendments." Reagan said the provision hampered GNMA's ability to maintain reserves necessary to meet its obligations, "particularly in light of a disturbing increase in claims and in GNMA's contingent liabilities." Reagan said the legislative cap on fees "could well call into question the adequacy of GNMA's current reserve of 1.4 billion dlrs, given the 250 billion in GNMA-guaranteed securities presently outstanding and GNMA's monthly contingent liability of three billion dlrs." Reagan said he had instructed Housing Secretary Samuel Pierce to work with Congress to draft revisions to the legislation.
Qtly div 31 cts vs 31 cts prior Payable APril 22 Record April three
Shr 57 cts vs 72 cts Shr diluted 57 cts vs 66 cts Net 2,699,000 vs 3,250,000 Revs 190.8 mln vs 195.9 mln Six mths Shr 45 cts vs 84 cts Shr diluted 45 cts vs 79 cts Net 2,092,000 vs 3,784,000 Revs 304.2 mln vs 304.6 mln NOTE: includes a change in accounting for investment tax credit of 1,408,000, or 31 cts per share, in six mths prior. first qtr 1987 includes non-recurring charge of 1,488,000 for company's abandoning of its plan to convert to a limited partnership.
The U.S. Agriculture Department said private U.S. exporters reported 200,000 tonnes of corn previously to unknown destinations have been switched to the Soviet Union. The corn is for delivery during the 1986/87 marketing year and under the fourth year of the U.S.-USSR Long Term Grain Supply Agreement. The marketing year for began September 1. Sales of corn to the USSR for delivery during the fourth year of the agreement -- which began October 1, 1986 -- now total 2,600,000 tonnes, it said. In the third agreement year sales totaled 6,960,700 tonnes -- 152,600 tonnes of wheat and 6,808,100 tonnes of corn.
Shr loss 57 cts vs loss 30 cts Net loss 5.9 mln vs loss 3.2 mln Revs 5.6 mln vs 16.3 mln Year Shr loss 2.11 dlrs vs loss 95 cts Net loss 22.0 mln vs loss 9.9 mln Revs 29.3 mln vs 66.3 mln
The Commodity Credit Corporation (CCC) has switched 25.0 mln dlrs in wheat credit guarantees to Jordan under the Export Credit Guarantee Program to the Intermediate Export Credit Guarantee Program, the U.S. Agriculture Department said. The switch reduces the total value of GSM-102 guarantees for the current fiscal year to 30.0 mln dlrs. The credit terms extended for export sales under the Intermediate Export Credit Guarantee Program (GSM-103) must be in excess of three years but not more than seven years. All sales must be registered and exports completed by September 30, 1987, the department said.
Borg-Warner Corp said it has had
discussions with Irwin Jacobs on his interest in the
possibility of Minstar Inc
Travelers Mortgage Services Inc, a unit of Travelers Corp, is issuing nearly 75.2 mln dlrs of mortgage pass-through certificates, said sole manager Morgan Stanely and Co Inc. The certificates have a 6-1/2 pct coupon and initial price of 89.6 for a bond equivalent yield of 8-1/2 pct. Morgan said the certificates will be reoffered at various prices and have an average life of 9.6 years. Principal and interest will be payed each month beginning May 25. Standard and Poor's is expected to rate the certificates AA, Morgan said.
Shr 25 cts vs 21 cts Net 2.8 mln vs 2.3 mln Revs 135.0 mln vs 119.0 mln Nine months Shr 80 cts vs 70 cts Net 8.9 mln vs 7.7 mln Revs 407.7 mln vs 403.7 mln
Sri lanka will tender overnight for 52,500 tonnes of U.S., Canadian and/or Australian wheats for April 8/16 shipment, under the Export Enhancement Program if U.S. origin, U.S. exporters said.
Chapman Energy INc said it is launching a major restructuring which, if not approved, it will have no alternative but to seek protection under Chapter 11. Under the plan, Chapman will exchange securities and cash for all outstanding 12 pct senior subordinated debentures due 2000 and will sell a controlling interest to Troon Partners Ltd. The agreement with Troon requires Troon to advance 6.5 mln dlrs partially secured by a first mortgage lien on the company's interest in its natural gas pipeline partnership and Troon to tender 100,000 principal amount of debentures to Chapman. Proceeds of the loan will be used for the cash portion of the restructuring. Troon will acquire a majority stock interest and control of the board. In addition, Chapman and Troon will establish a 10 mln dlrs acquisition joint ventures, it said. The plan also contemplates establishing a restructured loan providing for one master credit agreement having an aggregate balance of 22.4 mln dlrs. The plan also contemplates the recapitalization of preferred stock whereby each share will be converted into three shares of common stock. Chapman also said it also plans to negotiate settelment and discharge of a substantial portion of its accounts payable and settlement of certain litigation. If approved by various creditors and shareholders, the company expects the plan to be completed by May 29. Chapman also repoted a loss of 43.4 mln dlrs for the year, including asset writedowns of 35.5 mln dlrs, compared to December 31, compared to a net income of 177,243 in 1985. The 1986 loss resulted in shareholders' deficiency of 15 mln dlrs compared to shareholder's equity of 28.9 mln last year. Total assets decreased to 35.6 mln dlrs from 81.8 mln dlrs.
Middle East currency dealers meet in
Abu Dhabi this weekend at a time of fundamental change in their
business, which has seen a growing volume of trade shift from
the Arab world to London.
The 14th congress of the Inter-Arab Cambiste Association
also comes at a time when the prospect of a unified Gulf
currency system is more real that at any time this decade.
Foreign exchange traders and bank treasurers said these
issues, and the slide of the Lebanese pound, can be expected to
be major talking points.
About 250 traders and treasurers from some 115 banks --
including some in London and other major non-Arab financial
centres -- are expected to attend the conference which begins
on on Saturday.
Bankers said it is hard to avoid the impression that a
growing proportion of transactions in the Saudi riyal market,
by far the largest in the region, is being carried out in
London.
The market had been dominated by Saudi Arabia's 11 banks,
foreign exchange houses in the Kingdom and offshore banks in
Bahrain. But bankers said more and more Saudi and Bahrain-based
banks are boosting their treasury operations in London.
As recession hit the Middle East and the need for trade
finance in the region declined, many offshore banks in Bahrain
ran down their currency operations. None of the four major U.K.
Clearing banks now has a dealing room on the island.
The two major Bahrain-based international banks,
Citibank NA is issuing up to 50,000 currency warrants which give the holder a call right on U.S. Dollars from marks or yen, Citicorp Investment Bank Ltd said as sole manager. Each warrant, priced at 47.50 dlrs, gives the holder the right to purchase a nominal sum of 500 dlrs for either 182.50 marks or 149.50 yen between March 31, 1987 and March 31, 1989. The warrants will be listed in Luxembourg and pay date is March 31. Exercise, requiring one day's notice, must be for a minimum of 100 warrants through one currency only.
China should tighten imports of ordinary goods and restrict or even forbid import of goods which can be made domestically, Premier Zhao Ziyang said. He told the National People's Congress, China's parliament, that the country's foreign exchange is limited and must be used where it is most needed. "We should expand production of import substitutes and increase their proportion," he said. On exports, China should increase its proportion of manufactured goods, especially textiles, light industrial goods, electronics and machinery, he said. Zhao said China should lower the cost of exports and control the export of goods that incur too much loss. In 1986 China had a trade deficit of 11.9 billion dlrs, down from a record 14 billion in 1985. Zhao said China should work to provide a more favourable investment environment for foreign businessmen. It should use foreign funds for production and construction, with stress on firms making goods for export or import substitutes. China should also earn more foreign exchange from tourists and contracted labour abroad, he added.
Singapore's gross domestic product will grow six pct in the first quarter and five pct in the second quarter this year, with further growth expected in the second half, Trade and Industry Minister Lee Hsien Loong told parliament. The figures compared with 3.4 pct contraction and 1.2 pct growth respectively for the first and second quarters of 1986. The estimates were based on a tentative leading indicator incorporating new business orders, company inventories and share prices used by his ministry, Lee said, without giving further details of the new indicator. Singapore's economy grew 1.9 pct last year, after shrinking 1.8 pct in 1985. The government has forecast growth rate of three to four pct for 1987.
Ciba-Geigy AG
Abu Dhabi's offshore Abu al-Bukhoosh
oilfield in the Gulf, shut since an aerial attack last
November, will reopen when new anti-aircraft defences are
ready, and this could be in the next two months, oil industry
sources said.
They said the Abu Dhabi government and Compagnie Francaise
des Petroles (Total)
The Bank of Japan bought a modest amount of dollars this morning, possibly around 200 to 300 mln, dealers said. One dealer said the central bank bought about 200 mln dlrs through brokers and the rest through banks. The buying began when the dollar was at about 149.60 yen, and helped drive the U.S. Currency up to around 150, he said. Another said the central bank seemed to be trying to push the dollar up above 150 yen. But heavy selling at around that level quickly pushed the dollar back down towards 149 yen, dealers said.
The Ministry of International Trade and Industry (MITI) has asked about 30 Japanese trading houses and exporters to refrain from excessive dollar selling, trading house officials said. The officials told Reuters MITI asked them to moderate their foreign exchange trading because the excessive rise in the yen will have unfavourable effects on the economy. It made the request by telephone. A MITI official said the ministry has conducted a survey of foreign exchange trading by trade houses and exporters. But he said it was not aimed at moderating dollar selling. The trading house officials said MITI had asked them to undertake foreign exchange transactions with due consideration to the adverse effects excessive exchange rate movements would have on the economy. The MITI official said MITI undertakes such surveys when exchange rates fluctuate widely. A similiar survey was made when the currency fell to the previous record low of 149.98 on January 19. It hit a new record low of 148.20 yen yesterday. He said the survey showed currency transactions by trade houses and exporters contributed little to the dollar fall.
Olson Industries Inc said it is in final negotiations on the sale of its remaining egg operations and expects the sale to generate a charge of about two mln dlrs against 1987 net income. The company said, however, that the sale will generate substantial cash flow to pay off bank debt and improve working capital, eliminate unmanageable effects on profits of the price instability of the egg business and allow it to concentrate on its plastics packaging business.
The U.K. Based commodity house E.D. And F. Man Ltd and Singapore's Yeo Hiap Seng Ltd jointly announced that Man will buy a substantial stake in Yeo's 71.1 pct held unit, Yeo Hiap Seng Enterprises Ltd. Man will develop the locally listed soft drinks manufacturer into a securities and commodities brokerage arm and will rename the firm Man Pacific (Holdings) Ltd.
Duriron Co Inc said it has completed the acquisition of Valtek Inc for 11.75 dlrs per share following Valtek shareholder approval yesterday.
Citibank NA is issuing up to 50,000 currency warrants that give the holder a call right on U.S. Dollars from marks or yen, Citicorp Investment Bank Ltd said as sole manager. Each warrant, priced at 47.50 dlrs, gives the holder the right to purchase a nominal sum of 500 dlrs for either 182.50 marks or 149.50 yen between March 31, 1987 and March 31, 1989. The warrants will be listed in Luxembourg and pay date is March 31. Exercise, requiring one day's notice, must be for a minimum of 100 warrants through one currency only.
Shr 19 cts vs 10 cts Net 653,464 vs 287,606 Revs 10.6 mln vs 7,600,000 Year Shr 68 cts vs 46 cts Net 2,309,181 vs 1,408,813 Revs 38.4 mln vs 26.0 mln
United Medical Corp said it
has reached a definitive agreement to sell its hospital
distribution unit to
Shr profit 1.17 dlrs vs loss 12 cts Net profit 11.3 mln vs loss 1,038,000 Revs 104.6 mln vs 128.7 mln NOTE: Current year net includes gain 9,500,000 dlrs from the sale of its specialty restaurants unit, charge 1,200,000 dlrs from addition to insurance reserves, 4,600,000 dlr tax credit and 660,000 dlr charge from debt repayment.
South Africa's new foreign debt agreement sparked a rally in local financial markets, but bankers and economists said the pact only removes one source of anxiety from a still depressed economy. "We have not gone from "no confidence" to "full confidence" yet," commented one banker, who saw the agreement as having marginal influence on fundamental economic problems. Money market analysts cited the debt renegotiation as the main impetus behind increases today in both the commercial and financial rand. The commercial rand, used for current account transactions, rose 0.5 cts to 49 U.S. Cts while the financial rand jumped nearly two cts to 33 U.S. Cts. All equity and fixed investment flows of foreigners take place through the financial rand, which is considered the main barometer of South Africa's attractiveness to overseas investors. Analysts predicted the debt arrangement plus further gains in the gold price could push the commercial rand over 50 U.S. Cts and the financial rand to 35 cents in the next few weeks. They said the financial rand in particular was being driven by a tentative provision in the new debt agreement that could favourably affect the currency. Foreign creditors may get permission to convert loan balances and short-term claims into equity investments in South Africa. Finance Minister Barend du Plessis said the Reserve Bank was "investigating the implications of such conversions in light of terms and restrictions of the financial rand system." Du Plessis in disclosing the new agreement last night said the recent sharp rise in the financial rand was an example that "some foreign investors are again taking a more realistic view of South Africa." Terms of the debt agreement call for South Africa to repay 1.42 billion dlrs of 13 billion dlrs of frozen debt over the next three years. The agreement extends a standstill arrangement, expiring June 30, that has been in place since August, 1985. Bankers said the repayment amounts essentially confirmed their private estimates and could be comfortably met by the monetary authorities. "They (creditors) asked for the maximum amount and we offered the minimum," said one banking source, reacting to reports from London that creditors were hoping for larger repayments. Reserve Bank governor Gerhard de Kock said South Africa should have "no difficulty whatsoever" with the terms. Economists said the debt agreement would have no significant impact on economic problems continuing to face South Africa including high rates of inflation and unemployment, labour unrest and political uncertainty. Johannesburg Stock Exchange president Tony Norton, speaking yesterday before the debt agreement, said the economy was "in bad shape" and there was "an awful lot of talk but little action" to cure serious problems.
Shr 82 cts vs 76 cts Net 4,200,000 vs 3,954,000 Sales 58.7 mln vs 60.6 mln Year Oper shr 2.68 dlrs vs 2.47 dlrs Oper net 13.8 mln vs 13.0 mln Sales 274.3 mln vs 276.8 mln NOTE: Prior year net excludes loss 1,120,000 dlrs from discontinued operations and loss on disposal of 922,000 dlrs.
Easco Hand Tools Inc of Hunt Valley, Md., filed with the Securities and Exchange Commission for the sale of 67,275,000 dlrs in common stock, its first public stock offering. It said proceeds would be used to reduce indebtedness. PaineWebber Inc was named underwriter.
Noranda Aluminum Inc. said it has increased its primary aluminum prices by two cents a lb, effective with new orders as of March 25 and all shipments beginning May 1. The new price for unalloyed ingot will be 64.5 cents a lb while the new price for extrusion billet will be 72.5 cents a lb.
The Federal Reserve will probably intervene in the government securities market to add reserves today, economists said. They expected the Fed will supply temporary reserves indirectly via 1.5 to two billion dlrs of customer repurchase agreements. Fed funds hovered at a relatively high 6-1/4 pct this morning after averaging 6.14 pct on Tuesday. Early this afternoon the Fed also is expected to supply reserves permanently, effective Thursday, by offering to buy all maturities of Treasury bills.
Feb 28 end Shr 18 cts vs 13 cts Net 1,541,000 vs 1,122,000 Sales 36.7 mln vs 33.5 mln Avg shrs 8,517,000 vs 8,441,000 NOTE: Share adjusted for five pct stock dividend in August 1986.
Trade house sources said China is expected to step up its sugar purchases following yesterday's steep drop in world sugar prices. The consensus is that the Chinese will buy between 200,000 and 400,000 tonnes of raw sugar. "China is short of foreign exchange and a drop in prices is usually taken as a buying opportunity by Peking," one trader said. Yesterday, prices on the New York world sugar market plummeted by 0.58 to 0.50 cent on heavy liquidation by speculators, disenchanted over the market's lack of rallying power. Speculation is that China will need the sugar for the May/July period.
Qtly div 67 cts vs 67 cts prior qtr Pay 30 April Record 10 April
Real estate magnate Donald Trump told UAL Inc Chairman Richard Ferris that he was interested in UAL stock as an investment, according to a UAL executive. Trump, who was unavailable for comment, is believed by market sources to have a sizeable position in UAL, which he began accumulating several weeks ago. UAL stock today was up three at 63 in active trading. "They (ferris and Trump) talked last week. Apparently, Trump said he was interested in it as an investment. He didn't say how much stock he had. He didn't say what he would or wouldn't do about it," said UAL senior vice president Kurt Stocker. Trump is believed to have close to five pct of UAL's stock, market sources said.
Shr loss 19 cts vs loss 2.37 dlrs Net loss 1,140,000 vs loss 13,608,000 Revs 1,069,000 vs 1,940,000 Year Shr loss 53 cts vs loss 2.34 dlrs Net loss 3,012,000 vs loss 13,433,000 Revs 4,945,000 vs 6,705,000
Oper shr loss three cts vs loss four cts Oper loss 40,870 vs loss 39,827 Revs 584,855 vs 727,432 Six mths Oper shr loss two cts vs loss two cts Oper loss 24,311 vs loss 26,947 Revs 1,246,992 vs 1,497,251 NOTE: Current periods exclude net gain of 150,865 dlrs from termination of retirement plan for salaried employees. Also excludes gain of 83,100 dlrs from in current qtr and gain 90,400 dlrs in six mths from benefit of tax loss carryforwards. Company went public in September 1986.
A group led by New York investor Asher Edelman said Morse Shoe Inc agreed to provide it confidential company information and that his group would make an offer to buy Morse only in a friendly, negotiated deal. The group also said in a filing with the Securities and Exchange Commission that its members would not, without Morse approval, buy or offer to buy any company securities giving the group a 10 pct or more stake in the company. Edelman and his group said his terms held until the earlier of 90 days from March 3 or the date on which Morse announces a definite agreement for its sale. At the same time, the Edelman group said it cut its stake in Morse to 8.4 pct from 9.7 pct.
Qtly div 45 cts vs 44 cts prior Pay May one Record April 10
Columbia Gas System Inc said a Federal Energy Regulatory Commission decision today on natural gas cost recovery could reduce its 1987 earnings by about 1.25 dlrs a share. The company said "this could bring earnings for 1987 below Columbia's stated goal of earning no less than its 3.18 dlrs per share dividend." It earned 2.12 dlrs a share in 1986. It said management expects to recommend to the board that the dividend rate be maintained in 1987. Columbia Gas said the impact of the FERC decision may be offset by a one-time accounting change rleated to future tax liabilities under the new federal tax laws. The company recorded these liabilities based on older, higher tax rates, but an action being considered by the Financial Accounting Standards Board could result in a gain of about 1.20 dlrs a share in 1987, it explained. "Thus there is a good chance that we will attain our 1987 earnings goal -- although not in the way originally planned," Columbia Gas said. Columbia Gas said the FERC decision would limit the recovery of certain gas contract costs by Columbia Gas Transmission Corp, the company's principal pipeline subsidiary. It said the decision specifically excluded from a purchased gas adjustment filing by the pipeline costs related to amortizing payments made to producers to reform gas purchase contracts. These were excluded on the grounds the subsidiary failed to sufficiently support cost recovery. The company said its subsidiary is not precluded from making a new filing to provide sufficient support.
Shr 12 cts vs 30 cts Net 4,255,000 vs 11.5 mln Revs 199.4 mln vs 258.7 mln Nine mths Shr 64 cts vs 1.19 dlrs Net 24.4 mln vs 45.5 mln Revs 639.7 mln vs 824.3 mln
Texaco Inc's oil and gas reserves
declined in 1986 despite reduced production and upward
revisions in the company's previous reserve estimates, its
annual report said.
The statement of the report's auditor was qualified -- as
was the previous one -- because of the unkonwn final impact of
the judgement won by Pennzoil Co
U.S. oil demand as measured by products supplied rose 0.1 pct in the four weeks ended March 20 to 16.16 mln barrels per day from 16.15 mln in the same period a year ago, the Energy Information Administration (EIA) said. In its weekly petroleum status report, the Energy Department agency said distillate demand was off 0.1 pct in the period to 3.258 mln bpd from 3.260 mln a year earlier. Gasoline demand averaged 6.72 mln bpd, off 1.2 pct from 6.80 mln last year, while residual fuel demand was 1.38 mln bpd, off 2.1 pct from 1.41 mln, the EIA said. Domestic crude oil production was estimated at 8.35 mln bpd, down 7.8 pct from 9.06 mln a year ago, and gross daily crude imports (excluding those for the SPR) averaged 3.44 mln bpd, up 16.3 pct from 2.95 mln, the EIA said. Refinery crude runs in the four weeks were 11.90 mln bpd, up 1.4 pct from 11.74 mln a year earlier, it said. In the first 78 days of the year, refinery runs were up 1.8 pct to an average 12.25 mln bpd from 12.04 mln in the year-ago period, the EIA said. Year-to-date demand for all petroleum products averaged 16.32 mln bpd, up 1.8 pct from 16.04 mln in 1986, it said. So far this year, distillate demand rose 0.1 pct to 3.31 mln bpd from 3.30 mln in 1986, gasoline demand was 6.60 mln bpd, up 0.1 pct from 6.59 mln, and residual fuel demand fell 0.4 pct to 1.42 mln bpd from 1.43 mln, the EIA said. Year-to-date domestic crude output was estimated at 8.41 mln bpd, off 7.7 pct from 9.11 mln a year ago, while gross crude imports averaged 3.96 mln bpd, up 28.1 pct from 3.09 mln, it said.
Kansas City Southern Industries Inc
said it is ready to promptly purchase the Southern Pacific
Transportation Co from Santa Fe Southern Pacific Corp
Campbell Resources Inc said it raised
its voting stake in
Central Bank President Jose Luis Machinea said Argentina could adopt the same posture as Brazil and suspend payments on its foreign debt if it failed to meet creditor bank demands. "If Argentina had the same difficulties in being unable to refinance (its debt) under the desired (creditor) conditions, that (Brasil's) is a path to take," Machinea said. Brasil last month suspended payments on a large part of its 109-billion dlr debt, the highest in the developing world. Machinea said Brasil did not suspend payments because it wanted to but because it lacked reserves. Argentina has since last month been negotiating a 2.15 billion dlr loan with the steering committee for its international creditor banks to meet 1987 growth targets. But Machinea said the talks were difficult and Argentina wanted to conclude them as soon as possible. "What the (creditor) banks are demanding is not the same as what Argentina is prepared to concede," Machinea said. Argentina has a global foreign debt of 50 billion dlrs. Its debt with private banks is about 30 billion dlrs.
The House Banking Committee adopted legislation to direct the U.S. Treasury to begin negotiations aimed at seeking regular adjustment of exchange rates by countries such as Taiwan and South Korea whose currencies are pegged to the value of the U.S. dollar. The measure was adopted as part of a wide-ranging trade bill that will be considered by the full House in April before it moves onto the Senate. The bill's many provisions also set as a priority for the U.S. the negotiation of stable exchange rates and urge government intervention as necessary to offset fluctuations.
Bank of Japan Governor Satoshi Sumita said a further yen rise would have adverse effects on the Japanese economy. He told Japanese business leaders the Bank of Japan will continue to take adequate measures, including market intervention, to stabilize exchange rates if necessary, in close cooperation with other major industrialized nations. He said the current instability of exchange rates will not last. Six major nations - Britain, Canada, France, Japan, the U.S. And West Germany - agreed in Paris last month to act together to hold currencies stable. Sumita said the Bank of Japan will continue to pursue adequate and flexible monetary policies while watching economic and financial developments in and outside Japan. He said the decision to cut the discount rate on February 20 was a hard choice for the Bank because monetary conditions had already been sufficiently eased. To prevent a resurgence of inflation, the Bank will take a very cautious stance regarding developments stemming from easy credit conditions, he said. He said the latest discount rate cut to 2.5 pct should stabilize exchange rates and expand domestic demand. Commenting on the dollar's fall below 150 yen, Sumita reiterated he cannot find any specific reason for the currency's weakness. The market undertook speculative dollar selling by reacting to overseas comments by monetary authorities and trade tension, he said. Sumita repeated that the Japanese economy may gradually recover in the latter half of the 1987/88 fiscal year ending April 1, 1988, provided exchange rates stabilize.
Peruvian President Alan Garcia said his government was not trying to convince other nations to follow its decision to limit foreign debt repayments. "We do not want to export a model," Garcia told a press conference at the end of an official two-day visit to Mexico yesterday. He was referring to Peru's policy of limiting payments on its 14 billion dlr debt to 10 pct of its export earnings. Peru's attitude contrasts with that of Mexico, which followed a more conciliatory route and last week signed a 7.7 billion dlr loan package with its creditor banks. Since it decided to put a ceiling on debt payments, Peru has been barred from International Monetary Fund lending. Despite their different approaches to debt, Garcia and Mexican President Miguel de la Madrid issued a joint declaration yesterday calling the foreign debt problem an "expression of the present unjust international economic order." But the declaration said that no Latin American debtors' club was about to appear. "We affirm the sovereignty of our economic decisions and the capacity for mobilising our own resources," it said. The two presidents also signed a variety of agreements aimed at boosting trade and tourism between their countries as well a number of technical cooperation pacts. Garcia was scheduled to return to Lima tomorrow.
The Bank of France said it set a money market intervention tender today to inject funds to the market against first category paper. Money market sources said the surprise announcement might herald a quarter percentage point cut in the central bank intervention rate from the 7-3/4 pct level set March 10, but they added such a cut was relatively unlikely. The intervention rate was cut from eight pct on March 10 after being raised from 7-1/4 pct on January 2 to head off speculative pressure against the franc. Dealers said market fundamentals could justify a further easing, but a combination of technical factors and renewed currency uncertainties surrounding the dollar had put short-term upside pressure on interest rates in recent sessions. Call money rose yesterday to 7-7/8 eight pct from 7-3/4 7/8 pct. Today it was first indicated at 8-1/8 1/4 before easing on news of the tender to 7-13/16 7/8 pct. Technical factors making for a slight shortage of liquidity in the market included the settlement yesterday of the latest monthly treasury tap stock tender, on March 5, market sources said.
British Petroleum Co Plc
Australia's largest company, The Broken
Hill Pty Co Ltd
Treasurer Paul Keating forecast economic growth at slightly under two pct in the financial year ending June this year, down from the 2.25 pct forecast contained in the 1986/87 budget delivered last August. Australia's terms of trade also fell, by 18 pct, over the past two years, he told Parliament. Terms of trade are the difference between import and export price indexes. Despite the figures, the budget forecast of about 1.75 pct annual growth in employment would be met, Keating said. Unemployment is currently at 8.2 pct of the workforce. "This government is dragging Australia through a trading holocaust the kind of which we have not seen since the Second World War," Keating said. "We are not pushing this place into a recession. We are not only holding our gains on unemployment, we are bringing unemployment down," he said, adding that the government had help the country avoid recession.
The International Wheat Council (IWC) lifted its estimate for 1986/87 world wheat and coarse grain production by one mln tonnes to a record 1,377 mln, compared with 1,351 mln tonnes the previous season. In its monthly market report, the IWC said it is leaving unchanged its forecast of world wheat production for the coming 1987/88 season at between 520 and 530 mln tonnes against a record 534 mln in 1986/87. The one mln tonne upward revision in 1986/87 wheat production reflects several minor adjustments. The IWC raised the 1986/87 coarse grain trade figure two mln to 87 mln tonnes. It left wheat trade unchanged at 86 mln. The IWC 1986/87 estimate for world trade in wheat and coarse grain is thus estimated two mln tonnes higher at 173 mln against 169 mln the previous season with the forecast three mln rise in Soviet imports offset by small reductions elsewhere. The IWC said the area harvested for wheat in 1987/88 is likely to be down from last year as low world prices and restrictive national policies measures begin to take effect. At least four of the five major exporters expect to see a drop in wheat sowings without offset in other countries. There is still potential for even higher average wheat yields but the IWC said there are increasing signs world output may level off. Although it is still early to assess the coarse grain outlook, the IWC said barley acreage is likely to fall in the European Community but increase in Canada. U.S. Maize area is expected lower but oat sowings could rise. After damage to its maize crop last year, the Soviet Union plans to expand this area by as much as 50 pct to over six mln hectares in a year when many frost damaged wheat fields are likely to be resown to this and other spring crops. Improved weather and a further increase in the use of intensive cultivation methods could therefore see a marked rise in Soviet maize output in 1987, the IWC said. Any reduction in world coarse grain output would be bolstered by the large carryover stocks from 1986/87, the IWC said. It left its estimates of wheat and coarse grain stocks at endof different marketing years unchanged at 178 and 210 mln tonnes, respectively, against 160 and 167 mln a year earlier. After record world durum wheat production of 218.8 mln tonnes last season, the IWC said there are already signs of another large crop this coming season with higher output expected in the EC, Canada, the U.S. And North Africa.
Efforts by governments to control wheat surpluses by cutting support prices have met with only partial success, the International Wheat Council (IWC) says in its latest monthly report. Faster results could be achieved by a policy of reducing both price and areas, as employed in the United States, the IWC says in a survey of support prices in the five main wheat exporters - Argentina, Australia, Canada, the EC and the U.S. In some countries, for example Australia and Argentina, which are highly dependent on wheat shipments for export income, there may be problems in reducing production. A policy of cutting wheat production could lead to unemployment, with job prospects outside agriculture limited. Alternative crops may offer inferior returns which could then lead to lost export revenue and balance of payments problems. The IWC outlines three courses of action open to governments in wheat exporting countries. They could continue to support prices in the hope that when the world economy improves demand for wheat will rise and surpluses wil be reduced or eliminated. Alternatively, support could be limited to wheat which could be easily sold, without needing to be stored for a long period. This option may prove to be the most politically unattractive and would result in many producers abandoning wheat production, the report said. The third option would be for governments to distinguish between the commercial and social aspects of agriculture, possibly varying support prices according to farm size or overall production. The IWC review covers support prices in the major exporting countries since 1982. At some time during that period all the producers cut support prices in response to growing surpluses. These changes did not always result in lower export subsidies as on several occasions currency fluctuations more than offset lower prices in the domestic currency. For example between 1985/86 and 1986/87 the EC intervention price for bread wheat fell from 209.30 to 179.44 European currency units (Ecus). It dollar terms, the currency in which most export transactions are denominated, the intervention price however rose to 193 dlrs from 168. The high cost of supporting farm prices has put a strain on national exchequers and some governments are now searching for ways to cut expenditure, the report says. The proportion of world wheat output produced by the five major exporters declined in the period covered by the survey from 40 pct in 1982 to 35 pct in 1987. This was partly due to increased production in China and India. The period saw an upward trend in yields, although this was countered in the Argentina, the U.S. And Australia by lower acreages. In Argentina a reduction in the sown area of about 20 per cent was put down to low prices causing producers to switch to other enterprises, particularly livestock while lower U.S. Acreages are attributed to official incentives.
First Interstate Bancorp Chairman Joseph Pinola said the bank holding company would lose about 16 mln dlrs per year, after taxes, if it had to put its medium and long-term debt on non-accrual status. In an interview, he said that could result in about a 4.5 pct decline in annual earnings per share. Pinola said First Interstate, like other banks, has not yet decided to put the loans, which Brazil stopped paying interest on last month, on non-accrual status. "None of us really wants to injure negotiations that might be going on," he said. First Interstate reported to the Securities and Exchange Commission last week that it has about 339 mln dlrs in medium-to long-term loans to Brazil. It said on December 31, 1986 its nonperformind Brazilian outstanding debt totaled about 4.1 mln dlrs. First Interstate also has about 168 mln dlrs in short-term loans or trade lines to Brazil. Pinola said he believes the solution to the Brazilian debt crisis will be more political than economic, which he said he finds, "very disquieting and discomforting."
The price of gold bullion is likely to rise in the second half of the year on increased private investor demand, West German analysts said. Gold could rise as high as 500 dlrs per ounce later this year, said Peter Witte, director of Westdeutsche Landesbank Girozentrale's trading division, after a presentation by the U.S. Mint to promote its gold and silver Eagle series coins. "A lot will depend on oil prices and developments on stock exchanges," Witte said, adding he saw gold positioned for further rises once it breaks out above 450 dlrs. Gold was fixed this morning in London at 411.30 dlrs. Despite current strong interest in gold mine stocks, many investors still want to buy physical gold, Witte said. Interest in gold mine stocks may also wane if stock exchange rallies under way in many countries start to waver. Hermann Strohmeyer, vice president of Commerzbank AG's foreign exchange trading and treasury department, said gold is poised to rise to 460 to 470 dlrs an ounce in the second half of this year. The price is unlikely to fall much below 380 or 390 dlrs an ounce, and probably will continue in a range between 380 and 430 dlrs in the first half of this year, he said.
French operators have requested licences to export 675,500 tonnes of maize, 245,000 tonnes of barley, 22,000 tonnes of soft bread wheat and 20,000 tonnes of feed wheat at today's European Community tender, traders said. Rebates requested ranged from 127.75 to 132.50 European Currency Units a tonne for maize, 136.00 to 141.00 Ecus a tonne for barley and 134.25 to 141.81 Ecus for bread wheat, while rebates requested for feed wheat were 137.65 Ecus, they said.
Credit Lyonnais Australia is issuing a 40 mln Australian dlr eurobond paying 14-1/2 pct and priced at 101-1/8 pct, lead manager Hambros Bank Ltd said. The bond is due April 24, 1990 and is guaranteed by Credit Lyonnais. It will be available in denominations of 1,000 dlrs and will listed in Luxembourg. Fees comprise one pct selling concession with 1/2 pct management and underwriting combined.
Shr 15 cts vs 11 cts Net 900,334 vs 482,705 Revs 28.7 mln vs 18.8 mln Avg shrs 6,195,527 vs 4,551,105 Shr 51 cts vs 31 cts Net 2,713,912 vs 1,402,696 Revs 98.7 mln vs 67.9 mln Avg shrs 5,369,833 vs 4,551,105 NOTE: Share adjusted for three-for-two stock split effecitive March 2, 1987. Weston said earnings for the firstg quarter will be about flat due to the recent substantial addition of management and technical staff and an expansion in the Southeastern and Northwestern U.S. The company said full-year earnings and revenues are expected to be higher. The company today reported 1986 earnings of 2,713,912 dlrs, up from 1,402,696 dlrs in 1985, and revenues of 98.7 mln dlrs, up from 67.9 mln dlrs. Weston earned 492,000 dlrs in last year's first quarter.
Blockbuster Entertainment Corp said it
agreed to buy
Siemens AG's
Shr loss two cts vs loss four cts Net loss 44,000 vs loss 85,000 Sales 370,000 vs 299,000 Nine mths Shr loss seven cts vs loss three cts Net loss 134,000 vs loss 56,000 Sales 1,211,000 vs 1,069,000 NOTE: Prior nine mths net includes 10,000 dlr loss on sale of marketable securities. Prior quarter net includes 1,000 dlr tax credit. Current year net includes provisions for loss on investment in preferred stock of 4,000 dlrs in quarter and 15,000 dlrs in nine mths.
The Federal Reserve is expected to enter the U.S. government securities market to add reserves during its usual intervention period today, economists said. With federal funds trading at a steady 6-3/16 pct, most economists expect an indirect injection of temporary reserves via a medium-sized round of customer repurchase agreements. However, some economists said the Fed may arrange more aggressive system repurchase agreements. Economists would also not rule out an outright bill pass early this afternoon. Such action had been widely anticipated yesterday but failed to materialize.
President Nobuo Ito of International Telecom Japan Inc (ITJ), one of two rival firms seeking to enter Japan's international telecommunications market, said it will offer a stake in the company to 10 foreign firms. But he declined to specify what share the firms would take, and told Reuters they would not participate in its management. ITJ and International Digital Communications Planning Inc (IDC), in which both Cable and Wireless Plc and Pacific Telesis Group own 20 pct stakes, are set to merge into a new entity to compete against Kokusai Denshin Denwa Co Ltd.
House of Fabrics Inc said it expects growth in earnings and revenues as the current fiscal year progresses. It said it will open about 50 super stores this year. House of Fabrics now operates 703 stores. The company today reported earnings for the year ended January 31 of 6,191,000 dlrs on sales of 316.4 mln dlrs, up from prior year earnings of 4,257,000 dlrs on sales of 286.7 mln dlrs. The prior year earnings included a 2,100,000 dlr charge for the disposition of Craft Showcase stores.
Standard and Poor's Corp said it downgraded 360 mln dlrs of debt of Fluor Corp and its units Fluor Finance N.V. and St. Joe Minerals Corp. Cut were the firms' senior debt to BB from BBB and the parent's commercial paper to B from A-2. S and P cited industry overcapacity and weak pricing conditions in Fluor's core businesses. It said profitability and cash flow protection are not expected to rebound in the foreseeable future to levels that would support the former ratings. Restructuring has not compensated for a greater than anticipated deterioration in market conditions, S and P said.
Entertainment Publications Inc said it expects an after-tax loss of 31 cts a share in its third quarter from the disposal of three units it closed. The company said its board approved a plan to discontinue the operations of three subsidiaries, which are primarily involved in direct mail marketing. "The discontinued units were not likely to meet the growth and profit goals of the company in the future," Entertainment Publications said. The three units lost 900,000 dlrs, or 19 cts a share in the six months ended December 31.
Louisiana-Pacific Corp said it plans to sell its sawmill in Lakeview, Oregon and 18,000 acres of timberland to Ostrander Construction Co. The company said the transaciton shoould be finalized in early April. Terms were not disclosed.
Transworld Liquidating Trust said it
will distribute proceeds from the sale of Hilton International
Co to UAL Inc
Moody's Investors Service Inc said it downgraded BankAmerica Corp and the unit BankAmerica Overseas Finance Corp but affirmed ratings of the units Bank of America N.T. and S.A., Seafirst Corp and Seattle-First National Bank. The actions affect 5.5 billion dlrs of debt. Moody's said the downgrade reflected its concern over prospects for material improvement in the holding company's operating profitability in the medium term. Cut were BankAmerica's senior debt to Ba-1 from Baa-3, subordinated debt to Ba-3 from Ba-1, preferred stock to B-1 from Ba-3 and commercial paper to Not-Prime from Prime-3. BankAmerica is the second-largest bank holding company in the U.S. Moody's reduced the subsidiary BankAmerica Overseas Finance's senior debt to Ba-1 from Baa-3 and subordinated debt to Ba-3 from Ba-1. That debt is guaranteed by the parent. The rating agency also cited the holding company's continuing high level of problem assets, including significant exposure to Latin American debtor countries, that will continue to pressure profitability. However, Moody's noted that BankAmerica Corp remains liquid and owns considerable marketable assets. Moody's said it affirmed the ratings of the Bank of America unit because of that bank's franchise value, significant core deposit base and an expectation of regulatory support if further stresses develop. The agency confirmed Bank of America's Baa-1 long-term rating and Prime-2 short-term rating, as well as Seafirst's Ba-1 senior debt and Seattle-First's short and long-term ratings of Baa-1 and Prime-2 respectively.
China has switched purchases of U.S. wheat totaling 60,000 tonnes from the 1986/87 season, which began June 1, to 1987/88 season delivery, the U.S. Agriculture Department said. The department said outstanding wheat sales to China for the current season amount to 90,000 tonnes and sales for delivery in the 1987/88 season amount to 910,000 tonnes. Total corn commitments for the 1986/87 season total 1,015,800 tonnes, the department said.
There were no shipments of U.S. grain or soybeans to the Soviet Union in the week ended March 19, according to the U.S. Agriculture Department's latest Export Sales report. The USSR has purchased 2.40 mln tonnes of U.S. corn for delivery in the fourth year of the U.S.-USSR grain agreement. Total shipments in the third year of the U.S.-USSR grains agreement, which ended September 30, amounted to 152,600 tonnes of wheat, 6,808,100 tonnes of corn and 1,518,700 tonnes of soybeans.
Corn sales of 2,806,300 tonnes in the week ended March 19 were the highest level since mid-November, 1979, the U.S. Agriculture Department said. The department said the USSR dominated the week's activity with purchases of 1.4 mln tonnes (which were earlier reported under the daily reporting system). Other large increaes were posted for Japan and unknown destinations, it said. Taiwan purchased 296,300 tonnes for the 1986/87 season and 170,000 tonnes for the 1987/88 season, it said. Wheat sales of 317,200 tonnes for the current season and 125,000 tonnes for the 1987/88 season were down about one-third from the preceding week and the four-week average. Wheat sales to China of 60,000 tonnes were switched from 1986/87 to the 1987/88 season, it noted. Soybean sales of 483,100 tonnes were 11 pct above the prior week and two-thirds above the four-week average. Japan, the Netherlands, Mexico and Portugal were the main buyers, the department said. Soybean cake and meal sales of 289,400 tonnes were two-thirds above the previous week and the largest of the marketing year, with Venezuela the dominant purchaser. Sales activity in soybean oil resulted in decreases of 4,400 tonnes, as reductions for unknown destinations more than offset increases for Canada, the Dominican Republic and Panama, the department said. Cotton sales of 57,900 running bales -- 43,800 bales for the current year and 14,200 bales for the 1987/88 season -- were off 25 pct from the previous week and 50 pct from the four-week average. Turkey, Thailand, South Korea and Canada were the major buyers for the current season, while Thailand, Britain and Japan were the major purchasers from the upcoming season, the department said. Sorghum sales of 178,800 tonnes were two-thirds above the prior week and 75 pct over the four-week average. Venezuela was the leading buyer it said. Sales of 41,800 tonnes of barley were 10 times the previous week and 10 pct greater than the four-week average. Israel, Cyprus and Saudi Arabia were the main buyers, it said.
Standard and Poor's Corp said it
affirmed the ratings on 19 billion dlrs of debt of Chrysler
Corp and related entities.
S and P cited the acquisition of AMC as strongly negative.
It questioned the long-term srategic value, as well as a high
price of about two billion dlrs.
Affirmed were the BBB senior debt of Chrysler and its unit
Chrysler Financial, Chrysler Financial's A-2 domestic and
Eurocommercial paper, Chrysler Capital Realty Inc's A-2
commercial paper and Chrysler Financial's BBB-minus
subordinated debt.
The BBB senior debt of two international units, Chrysler
Credit Canada Ltd and Chrysler Overseas Capital Corp, was also
affirmed.
Chrysler's debt issues were put on creditwatch on March
nine after the automaker announced plans to acquire American
Motors Corp
The International Development Association said it approved a 114 mln dlr credit for India to support several water irrigation projects. IDA, the World Bank arm which lends to the poorest countries, said the projects are designed to increase agricultural productivity and farm incomes. Irrigation development has been a major factor in improving agricultural performance and yields in many areas but fall short of their potential due to unreliable water supply and often inequitable distribution, it noted. IDA said the credit supports a 7-year program to plan, implement and monitor improved operation of selected projects. In addition to the 50-year credit, the Indian government and participating states will provide 43 mln dlrs to the plan.
The United States' emphasis on its foreign trade deficit is misplaced and the country's real problem lies in its large federal budget deficit, the General Agreeement on Tariffs and Trade (GATT) said. By stressing its record trade deficit of 169.8 billion dlrs last year, the U.S. Was fuelling protectionist pressure which threatens the world trading system, it said in an annual report. The fundamental problem, the size of the U.S. Federal budget deficit, could be remedied only by cutting government spending or encouraging personal savings to finance the debt, it said. GATT also predicted world trade would grow by only 2.5 pct in 1987 -- a full percentage point lower than in each of the previous two years. GATT experts urged Washington to resist protectionism and instead seek macroeconomic changes to reduce the current account payments deficit -- higher private savings, lower investment and a smaller federal budget deficit. Raising U.S. Trade barriers "would result in little or no reduction in the current account deficit. It would, however, increase inflation and reduce world trade," it said. "The basic cause -- some combination of insufficient domestic savings and an excessive budget deficit -- would remain," the report said. GATT economists said trade expansion would slow this year because of slower growth forecasts in Japan and some West European nations as they adjust production and workforces to a low dollar, risk of higher U.S. Inflation, concerns over Third World debt management and looming protectionism. The report also said imbalances in the current accounts of Japan, West Germany and the U.S. Had increased in 1986. The most likely explanation was that exchange rate changes were not backed by changes in macroeconomic policies, it added. "Thus the prediction that these imbalances would be reduced as a result of the major realignment of exchange rates was not borne out last year," the report said. GATT warned there was a risk of a sizeable increase in the U.S. Inflation rate under the combined impact of a rapidly expanding money supply and low dollar. "Such a development could worsen the business climate by increasing uncertainty and pushing up interest rates, which, in turn, would adversely affect world trade." But the report noted a surprising rise in imports to the United States, despite the dollar's depreciation which makes foreign products more expensive. It suggested that resources idle in the U.S., Both human and in underutilised factories, were not geared to produce the goods and services sought from abroad. World trade in manufactures grew by only three pct in 1986, about half of the rate of the previous year. Trade in agricultural goods expanded by just one pct, continuing a stagnant pattern in that sector this decade, GATT said. Developing countries' exports declined significantly, while their imports increased moderately, although full statistics are not available yet, GATT said. The combined export earnings of 16 major indebted nations were sharply lower, and only five of them (Chile, Colombia, Philippines, South Korea, and Thailand) had higher exports.
Prime Minister Yasuhiro Nakasone will make an official week-long visit to the United States from April 29 and hold talks in Washington with President Reagan, Chief Cabinet Secretary Masaharu Gotoda told reporters. Government sources said Nakasone would try to resolve growing bilateral trade friction and discuss the June Venice summit of Western industrial democracies. Foreign Minister Tadashi Kuranari will accompany Nakasone, ministry officials said. U.S. Industry sources in Washington said the White House Economic Policy Council was recommending trade sanctions against Japan for violating the two countries' agreement on semiconductor trade. Under the pact, Japan pledged to stop dumping microchips in the U.S. And Asia and open its domestic market to U.S. Semiconductors.
India is searching for non-communist countertrade partners to help it cut its trade deficit and conserve foreign exchange. Wheat, tobacco, tea, coffee, jute, engineering and electronic goods, as well as minerals including iron ore, are all on offer in return for crude oil, petroleum products, chemicals, steel and machinery, trade sources told Reuters. Most of the impetus behind countertrade, which began in 1984, comes from two state trading firms -- the State Trading Corp (STC) and the Minerals and Metals Trading Corp (MMTC). "The two state trading corporations are free to use their buying power in respect to bulk commodities to promote Indian exports," a commerce ministry spokeswoman said, adding that private firms are excluded from countertrading. One trade source said India has targetted countries that depend on an Indian domestic market recently opened to foreign imports. However, countertrade deals still make up only a small part of India's total trading and are likely to account for less than eight pct of the estimated 18.53 billion dlrs in trade during the nine months ended December, the sources said. Countertrade accounted for just five pct of India's 25.65 billion dlrs in trade during fiscal 1985/86 ended March, against almost nothing in 1984/85, official figures show. However, the figures exclude exchanges with the Eastern Bloc paid in non-convertible Indian rupees, the sources said. Total trade with the Soviet Union, involving swaps of agricultural produce and textiles for Soviet arms and crude oil, is estimated at 3.04 billion dlrs in fiscal 1986/87, against three billion in 1985/86. Indian countertrade, which is being promoted mainly to help narrow the country's large trade deficit, is still insignificant compared with agreements reached by Indonesia, Venezuela and Brazil, the trade sources said. The trade deficit, which hit an estimated record 6.96 billion dlrs in 1985/86, is expected to decline to 5.6 billion in the current fiscal year. But the push to include non-communist countries in countertrade is also due to other factors, including the slow growth of foreign reserves, a tight debt repayment schedule, shrinking aid and trade protectionism, businessmen said. One source said India is showing more dynamism in promoting countertrade deals than in the past, when the deals were made discreetly because they break GATT rules. As a member of the General Agreement on Tariffs and Trade (GATT), India cannot officially support bartering. The MMTC's recent countertrade deals include iron ore exports to Yugoslavia for steel structures and rails. "MMTC's recent global tenders now include a clause that preference will be given to parties who accept payment in kind for goods and services sold to India," a trade official said, adding that the policy remains flexible. "We also take into account other factors such as prices at which the goods and services are offered to India," the trade official said. Early this year the commerce ministry quietly told foreign companies interested in selling aircraft, ships, drilling rigs and railway equipment to India that they stood a better chance if they bought Indian goods or services in return, the trade sources said. Illustrating the point, the official said a South Korean firm recently agreed to sell a drilling platform worth 40 mln dlrs to the state-run Oil and Natural Gas Commission. In return, the South Koreans gave a verbal assurance to buy Indian goods worth 10 pct of the contract, against the 25 pct sought by New Delhi, the trade official said. "We selected the Korean firm because its bid was the lowest," he added. Countertrade is helping African countries short of foreign currency to import goods. India has signed a trade protocol to buy up to 15,000 tonnes of asbestos fibre from Zimbabwe in exchange for Indian goods, including jute bags and cars. But despite India's new drive, countertrade has some inherent problems, they added. "It is not always easy to meet the basic requirement that the trade should always be balanced," one trade source said. "The other problem is it is often difficult to supply or buy commodities which the other party wants." Another added, "Barter is also restrictive. We look upon it as a temporary measure to get over the current balance of payments difficulty. "This is why countertrade has not been made a law in India. It does not even figure in the country's foreign trade policy."
Outgoing United States Ambassador Stephen Bosworth told a news conference he did not think the Philippines would follow Brazil's example and suspend interest payments on foreign loans from commercial banks. "I see no evidence that the Philippine government even contemplates doing that. It has said at the outset that it accepts the legitimacy of these debts and it is determined over time to meet its obligations fully," he said. Philippine officials and a 12-bank committee have been meeting for the past four weeks in New York in a bid to reschedule 9.4 billion dlrs of foreign debt. Bosworth said the United States strongly supports Manila's bid to put its international financial situation in order and that the private bank creditors were aware of that. "I think there is no question that the private banks are aware of the views of the U.S. Government ... I am confident they will take those views into account when they make their own decisions," Bosworth said. He added: "These are private banks. They are responsible to their shareholders and they have to make their decisions on their own. But I am confident they understand the views of the United States and our strong support."
Sri Lankan Food Department officials said the U.S. Department of Agriculture rejected a U.S. Firm's offer of 80 U.S. Dlrs per tonne CAF to supply 52,500 tonnes of soft wheat to Colombo from the Pacific Northwest. They said Sri Lanka's Food Department subsequently made a counter-offer to five U.S. Firms to buy wheat at 85 U.S. Dlrs CAF for April 8-16 delivery. The company which obtains USDA approval for the proposed price must inform the Department before 1330 gmt, they said.
Thailand exported 1,120 tonnes of tin metal in February, down from 1,816 tonnes the previous month and 2,140 tonnes a year ago, the Mineral Resources Department said. It said major buyers last month were Britain, Japan, the Netherlands, West Germany and the U.S.
Alcan Australia Ltd
Recent slackness on Dutch capital markets has led some bankers to question the Central Bank's policy of pegging the guilder firmly to the West German mark and to ask for more flexiblility in exchange rate policy. While agreeing with the Bank's commitment to defend the guilder strongly, some bankers want the Bank to make more use of the range within which the guilder and the mark can fluctuate against each other in the European Monetary System (EMS). Roelof Nelissen, chairman of Amsterdam-Rotterdam Bank NV (Amro) said the Central Bank's policy was overcautious. "I would like to suggest that the Bank use more freely the range given to the guilder in the EMS," Nelissen said at the presentation of Amro's 1986 annual report last week. Within the EMS, the mark is allowed to fluctuate against the guilder between 110.1675 and 115.235 guilders per 100. The Central Bank maintains a stricter policy and tries to keep the mark below the 113.00 guilders per 100. It regards a stable exchange rate as its main target, using interest rate policies to influence the exchange rate. The preference of exchange rate goals above interest rate aims goes almost undisputed in the Netherlands. Critics say the Bank keeps the reins unnecessarily short. Rabobank Nederland said in its latest economic bulletin: "By maintaining the 113.00 limit, the Central Bank raises the expectation it will always intervene above that level. If it suddenly needs more flexibility it will find it very hard to obtain." Amro's Nelissen said relatively small changes in interest rates and exchange rates could cause substantial flows of securities business and sharp fluctuations on the Dutch capital market. Large interest rate changes were often needed to bring about small changes in the guilder/mark exchange rate, he added. Unlike Amro, Algemene Bank Nederland NV (ABN) says this is a price the Dutch have to pay. It fully agrees with the Central Bank's policy, director-general Julien Geertsema told Reuters, noting a 1983 decision not to revalue the guilder fully with the mark in the EMS hurt confidence in the Dutch currency. "It is a pity we need such a wide interest rate difference between West Germany to maintain the exchange rate," he added. Interest rate differentials between West Germany and the Netherlands are the main factors that trigger capital flows between the two countries, as the economic performance of the two does not differ much, economists said. Data on 1986 capital flows between West Germany and the Netherlands have not yet been released, but in 1985 they accounted for only 10 pct of total trade flows between the two countries, put at 110 billion guilders for 1986 by the Dutch-German Chamber of Commerce earlier this month. Economists say capital flows are more sensitive to interest and exchange rates. West Germany is the Netherlands' largest single trading partner, taking 28 pct of Dutch exports and providing 26 pct of imports in the last quarter of 1986, Central Bureau of Statistics figures show. At the moment, the rates for three month euromark deposits trade around 4.0 pct while the same deposits in guilders have a rate of around 5-7/16 pct. Amro bank argues that the Dutch real interest rate will even rise further because of expectations of deflation here in 1987, contrasting with slight inflation in West Germany. In the Netherlands, the cost of living is expected to decrease by 1.5 pct at a GNP growth rate of two pct, the Dutch Central Planning Agency said in its 1987 forecast last month. German GNP is seen rising by two to 2.5 pct, but with inflation between zero and 1.0 pct, according to most German forecasts. But despite this upward push on real Dutch rates, money dealers do not expect the Central Bank to cut official rates independently without prior moves by the Bundesbank. Following the West German interest rate cuts on January 22, the Dutch Central Bank did not lower its rates but set a 0.5 pct lower tariff for special advances and abandoned its credit surcharge. Most traders were surprised by this move as they had expected the Bank to follow suit unconditionally, they said. The Bank said it lowered the rate with the largest impact on the money market as far as the exchange rate permitted. While not entirely unsympathetic to critics of its policies, the Central Bank keeps its grip firm and the range narrow. "The European Monetary System is not only a relationship between the guilder and the mark. Many times widening of the margin between the two would implicate we have to buy or sell large amounts of a third currency," Central Bank vice-director Jan-Hendrik Du Marchie Sarvaas said. "If we allowed the guilder to become a little cheaper, the markets would start to believe it was weak. We don't want that. We want to make clear that the guilder is just as strong as the mark," he said.
Japan's current account surplus rose to 7.38 billion dlrs in February from 3.89 billion a year ago and from 4.95 billion in January, the Finance Ministry said. The trade surplus rose to 8.14 billion dlrs in February from 4.77 billion a year earlier and 5.70 billion in January. The long-term capital account deficit widened to 11.40 billion dlrs from 8.06 billion a year ago, but it narrowed from 12.32 billion in January, the Ministry said. Japan's February exports rose to 16.74 billion dlrs from 14.89 billion in February 1986 and from 14.65 billion in January, the Ministry said. Imports fell to 8.61 billion from 10.12 billion a year earlier and 8.94 billion in January. The invisible trade deficit fell to 617 mln dlrs in February from 693 mln a year earlier, but was up from a 527 mln deficit in January. Figures do not tally exactly because of rounding. Transfer payments narrowed to a 140 mln dlr deficit last month from a 185 mln deficit a year earlier and a 225 mln deficit in January. The basic balance of payments deficit in February fell to 4.02 billion dlrs from 4.17 billion in February 1986 and 7.37 billion in January. Short-term capital account payments swung to a 1.28 billion dlr deficit in February from a 1.60 billion surplus a year earlier and a 1.44 billion dlr surplus in January. Errors and omissions were 2.65 billion dlrs in surplus, compared with a 1.27 billion surplus a year earlier and a 1.10 billion deficit in January. The overall balance of payments deficit rose to 2.65 billion dlrs from 1.30 billion a year earlier but was down from 7.04 billion in January.
One Luxembourg and three Danish banks are tapping the Euro-Danish crown market in a three tranche zero coupon eurobond deal of 600 mln Danish crowns nominal for Denmark, senior vice-president Lars Thuesen of Privatbanken, which is the lead manager, told Reuters. The three 200 mln crown tranches are tranche A, due May 16, 1989 priced at 82 1/8, tranche B, due May 15, 1990 priced at 73 7/8 and tranche C, due May 15, 1991, priced 66 1/2. Fees are 3/4 pct for selling and 5/8 pct for management and underwriting combined with 1/8 pct praecipium. The payment date was given as April 24, 1987 with denominations at 10,000 crowns and listing in Luxembourg. The co-leaders in the new Danish eurobond deal are Copenhagen Handelsbank, Den Danske Bank and Kredietbank Luxembourg, Thuesen added.
India is searching for non-communist countertrade partners to help it cut its trade deficit and conserve foreign exchange. Wheat, tobacco, tea, coffee, jute, engineering and electronic goods, as well as minerals including iron ore, are all on offer in return for crude oil, petroleum products, chemicals, steel and machinery, trade sources told Reuters. Most of the impetus behind countertrade, which began in 1984, comes from two state trading firms -- the State Trading Corp (STC) and the Minerals and Metals Trading Corp (MMTC). "The two state trading corporations are free to use their buying power in respect to bulk commodities to promote Indian exports," a commerce ministry spokeswoman said, adding that private firms are excluded from countertrading. One trade source said India has targetted countries that depend on an Indian domestic market recently opened to foreign imports. But countertrade deals still make up only a small part of India's total trading and are likely to account for less than eight pct of the estimated 18.53 billion dlrs in trade during the nine months ended December, the sources said. Countertrade accounted for just five pct of India's 25.65 billion dlrs in trade during fiscal 1985/86 ended March, against almost nothing in 1984/85, official figures show. However, the figures exclude exchanges with the Eastern Bloc paid in non-convertible Indian rupees, the sources said. Total trade with the Soviet Union, involving swaps of agricultural produce and textiles for Soviet arms and crude oil, is estimated at 3.04 billion dlrs in fiscal 1986/87.
Venezuela will shortly send creditor banks a term sheet specifying the changes agreed last month in the country's 20.3 billion dlr public sector debt rescheduling, finance minister Manuel Azpurua said. Azpurua told reporters yesterday the document is in its "final phase' of preparation, and will be soon be sent to banks for approval. "We expect that once the term sheet is received and analysed by the banks, it will be approved in a relatively short time,' Azpurua said. Under the new rescheduling agreement reached February 27, payments on Venezuela's public debt were extended from 12 to 14 years and the interest rate dropped from 1 and 1/8 to 7/8 of a pct above LIBOR. In addition, payments for the 1987-1989 period were lowered from 3.82 billion dlrs to 1.350 billion dlrs. Venezuelan officials said this amounted to an effective grace period, something the banks had refused to grant. The agreement replaced a February, 1986 rescheduling accord which Venezuela asked banks to revise, citing a 40 pct drop in oil revenues last year.
Metropolitan Financial Corp said it signed an agreement to acquire the stock of closely held Rothschild Financial Corp, St. Paul, Minn. Details of the purchase were withheld. It said Rothschild in 1986 originated 500 mln dlrs of mortgage loans, and its loan servicing portfolio stands at 1.4 billion dlrs. Officials of both companies estimated their combined efforts could produce originations of 800 mln dlrs and a loan servicing portfolio "well over 2.0 billion dlrs by yearend."
The Commodity Credit Corporation, CCC, has accepted bids for export bonuses on 36,000 tonnes of durum wheat to Algeria, the U.S. Agriculture Department said. The department said the bonuses awarded averaged 40.42 dlrs per tonne and will be paid to exporters in the form of commodities from CCC inventories. The bonuses were made to Cam USA, Inc, the department said. The wheat is for shipment May 1-10, 1987. An additional 264,000 tonnes of durum wheat are still avaiable to Algeria under the Export Enhancement program initiative announced on March 16.
Standard and Poor's Corp said it downgraded 1.7 billion dlrs of debt of United Technologies Corp and subsidiaries. S and P cut to AA-minus from AA the senior debt, and to A-plus from AA-minus the subordinated debt, of the parent and units UT Financial Services Corp, UT Credit Corp, UT Finance N.V. and Carrier Corp. A-1-plus commercial paper was affirmed. The agency said new management would be challenged to reverse operational problems that hurt profitability and cash flow in the past two years. And business risk will be greater because of stricter government procurement practices.
Honeywell Inc said it has
completed the sale of 57.5 pct of its Honeywell Information
Systems
Drought has resulted in a reduction in China's estimated wheat crop this year to 87.0 mln tonnes, 2.0 mln below last year's harvest, the U.S. Agriculture Department's officer in Peking said in a field report. The report, dated March 25, said imports in the 1987/88 season are projected at 8.0 mln tonnes, 1.0 mln tonnes above the the current season's estimate. Imports from the United States are estimated at 1.5 mln tonnes compared to only 150,000 tonnes estimated for the 1986/87 year, it said. After travelling to major wheat producing areas and obtaining more information on the planted area, the total planted area was estimated down 290,000 hectares due to the dry fall, it said. The report said to compensate for the below normal precipitation irrigation has increased as has the use of fertilizer. While there are pockets where irrigation is not possible, most of the wheat crop has access to some water and therefore has emerged from dormancy and is doing well, the report said. It said scattered rain in many parts of China in the past 10 days has improved the situation but information on hail damage in Anhui is incomplete.
Qtr ends Feb 28 Shr 18 cts vs 10 cts Net 2,051,000 vs 901,000 Revs 25.8 mln vs 19.2 mln Avg shrs 10.7 mln vs 9,059,600 12 mths Shr 87 cts vs 63 cts Net 9,020,000 vs 5,680,000 Revs 94.4 mln vs 73.7 mln Avg shrs 10.3 mln vs 9,059,600
Glamis Gold Ltd said it will ask shareholders at an April 1 extraordinary general meeting to approve a one-and-one-half for one common share split. Record date for the split will be set in the near future, the company said.
Marine Midland Banks Inc said in a filing with the Securities and Exchange Commission that it may reclassify as "nonperforming" 359 mln dlrs of medium- and long-term loans to Brazil. The company added that it expects first quarter 1987 earnings to be "down moderately" from year-earlier levels. "Continued suspension of interest payments on the medium- and long-term debt could result in such loans being classified as nonperforming and placed on nonaccrual," it said. However, it added its belief that it was "premature to decide at this time" whether to reclassify the loans. Brazil announced Feb. 20 that it was temporarily suspending interest payments on all its medium- and long-term foreign bank debt. Marine Midland said its total Brazil outstandings as of the end of 1986 were 653 mln dlrs, including 359 mln dlrs of medium- and long-term loans and 294 mln dlrs of short-term outstandings. As of Dec. 31, it had interest receivable of about five mln dlrs on its medium- and long-term Brazil outstandings. If debt restructuring talks between Brazil and its creditor banks are not completed by the end of the third quarter, the company estimated Brazil's action would reduce its net income for the year by about 22 mln dlrs. In the first quarter of 1986, Marine Midland reported record earnings of 38.2 mln dlrs, bolstered by certain non-recurring securities gains. It said it expected lower first quarter 1987 earnings because the money market cost of funds had increased, "narrowing net interest spreads somewhat." It said the earnings projection was based on "preliminary" 1987 data.
Jamaica bought U.S. corn, wheat and rice at its tender earlier this week using PL-480 funds, a U.S. Department of Agriculture official said. The purchase consisted of the following cargoes - - Cargill sold 1,503.5 tonnes of number two soft red winter (SRW) wheat for May 5/30 shipment at 117.44 dlrs per tonne FOB Gulf ports. - Continental Grain 8,250 tonnes of number two northern spring/dark northern spring (NS/DNS) wheat (14.5 pct protein) for April 15/May 10 at 123.97 dlrs FOB Gulf, excluding Brownsville. - Nichemen 10,000 tonnes number two SRW wheat for June 12/July 7 at 103.43 dlrs FOB Gulf. - Nichemen 10,000 tonnes number two NS/DNS wheat (14.0 pct protein) for May 25/June 20 at 121.89 dlrs FOB Gulf. - Cargill 10,000 tonnes number two SRW wheat for April 10/May 5 at 120.88 dlrs FOB Gulf. - Cargill 8,469.5 tonnes number two SRW wheat for May 5/30 at 117.44 dlrs FOB Gulf. - Louis Dreyfus 4,500 tonnes number three yellow corn (15.0 pct maximum moisture) for April 10/May 5 at 76.09 dlrs FOB Gulf. - Louis Dreyfus 5,300 tonnes same corn April 20/May 15 at 75.89 dlrs FOB Gulf. - Louis Dreyfus 5,300 tonnes same corn May 10/June 5 at 75.49 dlrs FOB Gulf. - Louis Dreyfus 5,300 tonnes same corn June 1/25 at 75.49 dlrs FOB Gulf. - Loius Dreyfus 3,700 tonnes number two yellow corn (14.5 pct maximum moisture) for Apirl 10/May 5 at 76.29 dlrs FOB Gulf. - Louis Dreyfus 3,700 tonnes same corn for May 10/June 5 at 75.68 dlrs FOB Gulf. Exporters have not received final PL-480 approval on their sale of a total of 9,500 tonnes of U.S. number five or better long grain brown rice (10 pct maximum broken) for April 10/May 25 shipments. But the USDA official said he saw no hold-up in obtaining that approval.
Hungary's economy and hard currency trade have failed so far this year to reverse a two-year unfavourable trend, the official Hungarian news agency MTI said. Industrial production in January and February was only 1.3 pct up on the same 1986 period, MTI said, while hard currency exports fell six pct as imports rose 10 pct. Hungary's hard currency trade fell into a deficit of 539.4 mln dlrs last year from a surplus of 295.3 mln in 1985 and 1.2 billion in 1984. MTI quoted a government spokesman saying last December's wage freeze decree would expire on April 1 as envisaged. Gross domestic product grew a sluggish one pct in 1986 after stagnating in 1985 and growing 2.6 pct in 1984.
Noble Affiliates Inc said it
found natural gas on Ship Shoal 80, located about 10 miles
offshore Louisiana in the Gulf of Mexico.
The discovery well, Samedan Oil Corp's OCS-G 5537 Well
Number One, was drilled in 25 feet of water to a total depth of
7,500 feet and found 38 feet of net gas pay in a 48-foot gross
sand interval, the company said.
The well tested gas at a rate of 6.2 mln cubic feet a day
through a 26/64-inch choke with 1,548 pounds flowing tubing
pressure. Gas sales should begin in the first quarter of 1988,
it said.
Samedan, a Noble unit, is operator and owns a 60 pct
working interest in the well. Other owners are a New England
Electric System
Shr profit nil vs loss nil Net profit 68,895 vs loss 160,893 Revs 3.3 mln vs 104,801
Shr loss two cts vs loss 1.38 dlrs Net profit 34,000 vs loss 3,296,000 Revs 3,121,000 vs 1,546,000 Year Shr profit 28 cts vs loss 1.61 dlrs Net profit 1,088,000 vs loss 3,546,000 Revs 5,266,000 vs 4,169,000 Note: Current qtr per share figure adjusted to reflect provision for preferred stock dividends.
U.S. cotton farmers are likely to plant about 10.6 mln acres in the coming season, based on an average of estimates offered by cotton market analysts gearing up for the U.S. Agriculture Department's 1987 planting intentions report next Tuesday. The annual report gives cotton traders their first glimpse of what U.S. production might be in the 1987/88 season, which begins August 1. Trade and commission house forecasts ranged from 10.2 to 10.9 mln acres. On March 18 of last year, the USDA reported that cotton farmers in 1986 intended to plant 9.71 mln acres. Four months later, the USDA estimated that 9.67 mln acres had been planted as of June 1. By January, its estimate of 1986 planted acreage nationwide was 10.06 mln. Analysts said their forecasts for even greater acreage in 1987 were spurred in part by belief that this year's good demand and firm prices will be repeated next year. Analysts said those factors make cotton a profitable crop. "With cotton more attractive price-wise, I think there is going to be a switch in acreage from soybeans to cotton. Soybeans are dirt cheap," said Lisbeth Keefe of Cargill Investor Services, whose comments were echoed by other cotton market specialists. Changes in the U.S. cotton program also could lead to increased acreage, analysts said. They recalled that under the 1986 program, cotton farmers who used part of their crop as collateral for government loans were not responsible for the cost of storing that cotton in government warehouses. But under the 1987 plan, the government will not pick up the tab for storage. Analysts said the change will discourage some farmers from participating in the program, which could result in more cotton. "The cotton program stipulates a mandatory set-aside of 25 pct of a farmer's base acreage," noted Judy Weissman of Shearson Lehman Brothers. But farmers who elect not to participate in the program are free to plant all the acreage they have. Some analysts said cotton farmers in the high-yielding Western states would be most likely to steer clear of the program. "Western acreage should be up at least 20 pct," said one commission house analyst, whose estimate was based in part on forecasts made by the National Cotton Council during its annual meeting in late January. But others disagreed. "I think some Western growers have decided they should be in the program for security reasons. There's a lot of comfort in knowing you'll be guaranteed the government's loan price of 52.25 cents a lb. Anyone outside the program is subject to the wiles of the market," said Walter Brown, market analyst for a major California cotton producer. Some cotton specialists said their expectations for increased acreage might not be verified in Tuesday's planting intentions report. "Anything the USDA is announcing now is based on information they gathered before their cotton program was announced (on March 20)," one analyst cautioned. She said traders will get a better idea of next year's cotton output when the USDA's planted acreage report is released on July 9. Brown took that opinion a step further. "I don't think planted acreage is important. What counts is the abandonment rate," the difference between acreage planted and acreage harvested. Brown said the abandonment rate this year was "pretty high" at 15.5 pct because of weather problems in key producing states. "More normal would be about six pct," he said.
Greece and Turkey's NATO allies today called on both countries to avoid any action that could aggravate an explosive situation in the Aegean and "avoid recourse to force at all costs." After an emergency meeting of NATO ambassadors, a statement was issued saying "the present situation damages the interests of Greece and Turkey, and of the Alliance as a whole." Secretary-General Lord Carrington also offered himself as a mediator in the dispute on the Western Alliance's southern flank. The meeting was called after reports that warships of both countries were sailing towards a disputed oil exploration zone of the Aegean. The statement said the tensions in the area had reached a serious level and called on both countries to begin immediate discussions. "Any intensification would make things worse," it added. No attempt was made at the meeting to resolve the complex dispute which was aimed at damage-limitation. Carrington said, "I am of course anxious to help in any way I can, provided that both Greece and Turkey, and the other allies, wish me to do so."
Valhi Inc reported earnings of LLC Corp and the Amalgamated Sugar Co for the six month period ended December 31. Effective March 10, Amalgamated merged into LLC, which changed its name to Valhi. The following results reflect the operations of the companies prior to the merger. LLC Corp reported net income of 18.4 mln dlrs or 60 cts a share on revenues of 55.6 mln dlrs compared to 23.2 mln dlrs or 75 cts a share on revenues of 79.3 mln dlrs a year ago. This year's net includes an extraordinary loss of 201,000 dlrs and a gain of 4.7 mln dlrs. 1985's net included an extraordinary gain of 6.3 mln dlrs, Valhi said. Amalgamated reported net income of 10.65 dlrs per share or 69.7 mln dlrs on revenues of 371.3 mln dlrs compared to a net loss of 700,000 dlrs or 10 cts a share on revenues of 254.7 mln dlrs last year. Valhi said effective December 31, it changed its fiscal year-end from June 30 to December 31.
A cold air mass working its way south from Canada may pose a threat to developing hard red winter wheat in Oklahoma, according to Eugene Krenzler, wheat specialist for the Oklahoma Cooperative Extension. "There is some threat. Some of the crop is far enough along so that it's probably vulnerable," Krenzler said. Accu Weather meteorologist Dale Mohler said cold air moving from the north could put temperatures in the middle 20's fahrenheit as early as tonight, depending on development of a low pressure area over southeast Colorado which could stall the system. If impeded by the low-pressure area, the cold air could hit Oklahoma and Texas as late as Monday morning. Temperatures could stay in the mid-20's for up to eight hours, Mohler said. Krenzler said less than 10 pct of the Oklahoma wheat crop has advanced to boot stage. The closer to that stage the more vulnerable the head of the wheat is to cold weather, he said. "We can handle probably an hour or so down to 25 or 26 degrees (fahrenheit)," Krenzler said, "as long as we don't have a lot of wind." "If we do get six hours down below 25 degrees I'd say we have a good chance of significant damage to the heads," he said. Krenzler said early planted stands in the north-central and southwestern parts of the state are probably most vulnerable. Crops in the panhandle of Oklahoma and Texas are less developed and have some snow cover protection from the cold, he noted.
The International Cocoa Organization (ICCO) council agreed standard price differentials for different origin cocoas to form part of the buffer stock buying and selling procedure, consumer delegates said. The buffer stock manager will accept offers for different origin cocoas according to a sliding scale of price differentials, under which Ghana cocoa will be pegged at a 137 stg premium to Malaysian. Thus, if the buffer stock manager was buying cocoa based on a Malaysian price of 1,200 stg a tonne, he would accept Ghana offers up to 1,337 stg. Differentials were fixed as follows, Country Differential stg/tonne Malaysia 0 Brazil 55 Ivory Coast 67 Cameroun 77 Nigeria 120 Togo 130 Ghana 137 Nigeria's differential is on "landed weight" terms. Shipping weight terms will be accepted at a 15 stg discount to this rate.
Edouard Kouame, Ivorian delegate to the International Cocoa Organization (ICCO), was chosen Executive Director of the ICCO, effective October 1, ICCO officials said. Kouame will succeed Dr. Kobena Erbynn of Ghana in the post.
South Korea signed with Japan for a 44.6 billion yen credit facility, part of a four billion dlr aid package for South Korea's economic development plan to 1988, Foreign Ministry officials here said. The facility, to be used mostly for building a multi-purpose dam and modernising educational and medical facilities and for sewer projects, bears interest of 4.25 pct per year and is repayable over 18 years after a grace period of seven years.
U.S. roastings of green coffee in the week ended March 21 were about 250,000 (60-kilo) bags, including that used for soluble production, compared with 195,000 bags in the corresponding week of last year and about 300,000 bags in the week ended March 14, George Gordon Paton and Co Inc reported. It said cumulative roastings for calendar 1987 now total 3,845,000 bags, compared with 4,070,000 bags by this time last year.
Prime Minister Yasuhiro Nakasone said that Japan and other industrialized nations committed themselves in Paris last month to stabilize the dollar above 150 yen. He told a Lower House Budget Committee in Parliament that the six nations have taken measures, including market intervention, to support the dollar above that level. Finance Minister Kiichi Miyazawa told the same committee that the six - Britain, Canada, France, Japan, the U.S. And West Germany - had intervened aggressively since the dollar fell below 150 yen. Miyazawa said major nations are trying hard to stabilize exchange rates. Asked if there had been any change in the fundamentals of each nation since the February 22 Paris accord, he said he did not think the fundamentals themselves had changed substantially. But he said the market is sensitively looking at what is happening in major nations. He did not elaborate. Miyazawa added that it was difficult to say why there has been such speculative dollar selling in the market.
Woolworth Holdings Plc
Gillette Canada Inc is launching a 500 mln French franc bond, due April 30, 1992, paying nine pct and priced at 101-5/8, Banque Paribas said on behalf of Banque Paribas Paris, the lead manager. Morgan Guaranty Ltd will co-lead manage the issue, which will be sole in denominations of 10,000 francs and be listed in Luxembourg. Fees are 1-1/4 pct for selling and 5/8 pct for management and underwriting combined. The bonds are non-callable and payment is April 29.
The Philippines' restructuring of 13.2 billion dlrs of foreign debt will provide a welcome boost for the economy, but last Friday's accord with the country's 12-bank advisory committee does not imply an overnight boom, bankers and businessmen polled by Reuters said. "The successful negotiations form an important piece in the mosaic," Christian Roeher, Secretary-General of the European Chamber of Commerce, said. "Now is really the time for the government to start implementing its ideas. There has been a lot of talking and loud thinking." Business leaders said the 17-year rescheduling of commercial bank debt would give President Corazon Aquino some badly-needed breathing space, but warned her government was still in the midst of political consolidation. "There is a lot of interest among foreign investors in the country, but now they are waiting to see what happens in the congressional and local elections later this year," said American Chamber of Commerce president George Drysdale. The government is serious about getting down to work, but there are many individual agendas for growth and no consensus. But each step brings a unanimity of opinion closer, he said. Aurelio Periquet, President of the Philippine Chamber of Commerce and Industry, told Reuters the debt accord had positively translated the international banking community's confidence in the country's economy and Aquino's government. "This government needs less pressure and more time and happily our creditors seem to see it that way," he said. "This accord may not result in an immediate boom, but at least it enhances the image of the country for foreign investors." But Periquet said domestic and foreign investments fell short of targets in 1986. "The accord does not solve all our problems," he added. Periquet said the question of political stability no longer worried Filipino businessmen, who had already started expanding existing businesses or investing in new areas. "A number of us have already put in new money and there are plans for the export market," he said. "President Aquino has shown her ability to pull the nation out of one crisis after another." Roeher said foreign investment would probably be held back until after the congressional polls in May and the local elections in August. "The two elections will probably have a more decisive effect on the way business reacts," he said. "Some foreign companies are not waiting, but they are more the exception than the rule," Roeher said. He said it was important the government ensure the creation of more jobs was not just a transitory development. "The absorption of enormous aid given to the Philippines is also poor. A lot of it has not been put to use. The government should act without further delay to absorb the 1.7 billion dlrs of development aid it will receive in 1987," he said. A foreign banker close to the debt negotiations said he did not foresee any real boom until 1989. "The problem is that Aquino has inherited her political system from (former President Ferdinand) Marcos," the banker said. "There is still a clamour for the sharing of benefits, different sectors claiming their rights and duties. If they go too fast there could be another bust two years down the road." Businessman Raul Concepcion, whose brother Jose is the country's trade and industry minister, said everyone could heave a sigh of relief. "Now that the debt agreement is out of the way, our economic and financial officials can concentrate on their work, like increasing government revenue and efficiency," he said.
Japanese Finance Minister Kiichi Miyazawa expects the dollar to rebound soon, a Ministry spokesman said. He quoted Miyazawa as telling Japanese reporters that major industrial nations are aggressively intervening in currency markets worldwide to prevent a dollar free-fall. The minister believes that market forces will push the dollar back up from its record low of 144.70 yen today, according to the spokesman. Miyazawa told the Japanese reporters the U.S. Unit fell because Japanese investors sold dollars to hedge currency risks before the close of the 1986/87 fiscal year on March 31.
Bank of Japan governor Satoshi Sumita said the central bank will carefully consider its monetary policy in light of the recent sharp fall of the dollar. Asked if the Bank of Japan will consider a further cut in its discount rate, he said he now thinks the bank will have to carefully consider its future money policy. He told a Lower House Budget Committee in Parliament that credit conditions have been eased by the five discount rate cuts by Japan since the beginning of last year. Japan must now be especially careful about a flare-up in inflation, with money supply growth accelerating, he said. Sumita said the central bank would continue to make a judgement on monetary policies while watching consumer prices, exchange rates and economic and financial conditions both in and outside Japan. Asked if the September 1985 Plaza agreement was a failure because the dollar had fallen too far, Sumita said he still thought the pact was a good one in the sense that it had corrected the overvaluation of the dollar. But the Plaza accord did not set any target for the dollar's fall, he said. The dollar's steep fall stems from the market's belief that the trade imbalance will continue to expand, he said.
Japan is seeking to prevent its computer chips dispute with the U.S. From erupting into a full-scale trade war, government officials said. "We hope that the dispute on this specific issue won't have an adverse effect on our overall relationship with the United States," a Ministry of International Trade and Industry (MITI) official said. On Friday, Washington announced plans for as much as 300 mln dlrs in tariffs on Japanese electronic goods for Tokyo's alleged failure to live up to a bilateral computer chip pact. That agreement, reached last year after heated negotiations, called on Japan to stop selling cut-price chips in world markets and to buy more American-made semiconductors. Foreign Ministry officials immediately tried to isolate the fall-out from the dispute by seeking to separate it from Prime Minister Yasuhiro Nakasone's planned trip to Washington at the end of April. While Japan has already done about all it can to make sure the chip pact is working, the government is studying measures it can take in other fields to defuse American anger and ensure the trip's success, they said. "The perception of Japan in the (U.S.) Congress is very bad," one official told Reuters. "We would very much like to do something to respond to that." In an apparent effort to prevent the chip dispute from spreading to other areas, MITI officials sought to depict the U.S. Action as a severe warning to Japanese semiconductor makers, not to the government. Faced with a belligerent domestic chip industry and an angry American Congress, the Japanese government has been forced to walk an increasingly fine line in the semiconductor dispute, trade analysts said. They said that it was an open secret that Japan's largest chip maker, NEC Corp, was not happy with what it viewed as the draconian measures MITI was taking to implement the pact, included enforced production cuts. The angry response of Japanese chip makers yesterday to the announcement of the U.S. Tariffs highlighted the difficulties the government faces in taking further action. "Japanese semiconductor manufacturers have complied with the U.S./Japan agreement," said Shoichi Saba, Chairman of the Electronic Industries Association of Japan. He accused the U.S. of being "irrational." He said the U.S. action had made the bilateral chip pact "meaningless." Saba's comments contrasted with those of Prime Minister Yasuhiro Nakasone, who said Tokyo wanted to solve the dispute through consultations. Japan is expected to send a high-level official to Washington early next month to try to convince the U.S. Not to go ahead with the tariffs on April 17. Trade analysts say Tokyo is likely to outline industry plans to step up purchases of U.S. chips and to propose a joint investigation into U.S. allegations of chip dumping.
The United States and Japan will soon settle their trade dispute over semiconductors, U.S. Commerce secretary Malcolm Baldrige said on television. Baldrige, referring to the U.S.-Japan trade agreement on semiconductors, said: "Their government wants to live up to it. Their industries haven't been doing it, and I think we'll have a good settlement to spare both sides." "I think the Japanese understand full well that they haven't lived up to this commitment," he said. He added: "I do not think there will be a trade war at all." On Friday, Washington announced plans to put as much as 300 mln dlrs in tariffs on Japanese electronic goods from April 17, because of Tokyo's failure to observe the agreement. The officials said the tariffs would be ended as soon as Japan started adhering to the agreement. But they said there was little chance Japan could react quickly enough to avert the higher tariffs. Baldrige said the Reagan administration hoped the strong U.S. Action against Japan would convince Congress to tone down protectionist trade legislation now being drafted. He denied the action had been taken for that reason.
An investor partnership, seeking to acquire GenCorp Inc, said it would attempt to unseat the company's board of directors and take other hostile actions if the firm refuses to discuss its 2.3 billion dlr takeover bid. General Acquisition Co, comprising investors Wagner and Brown and glass-maker AFG Industries, also reiterated its willingness to negotiate with Gencorp. The partnership has earlier offered 100 dlrs per share for GenCorp -- a tire, broadcasting, plastics and aerospace conglommerate. Analysts have speculated that GenCorp, on a break-up basis, could fetch more than 110 to 120 dlrs per share. GenCorp officials had no comment on General Acquisition's statement but a spokesman reiterated an earlier request to shareholders to wait until its board renders an opinion before making a decision on the General Acquisition tender. Gencorp said its statement would be made on or before the company's annual meeting, scheduled for Tuesday. General Acquisition made its statement in a letter sent to the GenCorp board on Friday. The partnership said it was willing to negotiate all points of its offer, including price. The group the board cannot fully carry out its fiduciary duties to GenCorp shareholders and make a fully informed decision about its offer until it has "thoroughly explored with us the ways in which our offer can be revised to provide greater value to your shareholders." General Acquisition said it is aware the board may be reviewing alternative transactions which might provide GenCorp shareholders with a payment other than cash. "If that is the case, you should recognize that our additional equity capital may very well enable us to offer cash and securities having greater value than GenCorp could provide in any similarly structured transaction," the partnership said. General Acquisition also said it believes that GenCorp's board has an obligation to present any alternative transaction it may propose to shareholders in a manner that would allow for competing offers. The partnership requested that if any other proposal is under consideration that it be given the same information available to GenCorp's managers and advisers in constructing a proposal. General Acquisition said that if GenCorp agrees to accept another buyout proposal that it also be given an opportunity to bid on a competitive and fair basis before any final decision is made. General Acquisition repeated its request that GenCorp remove its "poison pill" or shareholders rights plan. General Acquisition said if GenCorp does not allow an "environment for fair competition," it will take all steps necessary to create such an enviroment. It said it may take legal action or seek the support of shareholders in calling a special meeting to replace the board and to consider other proposals it might develop. General Acquisition also said if the board decides to accept an alternate proposal it asked that it not accept a plan that would include defensive features.
Prime Minister Andreas Papandreou has withdrawn a request to Washington to suspend operations at an American army base near Athens as a Greek-Turkish row over oil rights in the Aegean eased. A Turkish research ship which Greece had threatened to tackle if it sailed into disputed waters in the Aegean Sea kept to Turkish territorial waters yesterday, avoiding a potential clash. Papandreou expressed qualified optimism after briefing opposition leaders on Aegean developments early yesterday. The Greek government later withdrew Friday's request to Washington to close down its telecommunications base at Nea Makri, north of Athens, saying that the reasons which had prompted it to make the request were no longer valid. Under the terms of the U.S.-Greek bases accord, Greece has the right to ask for suspension of operations at times when its national interests are threatened. The row in the Aegean erupted after Turkey said it would search for oil round three Greek islands off its coast following an announcement from Greece that it planned to drill east of Thassos island after taking control of a Canadian-led oil consortium operating in the northern Aegean. Turkey accused Greece of breaching the 1976 Berne Agreement under which both sides agreed to preserve the status quo in the Aegean until their continental shelf dispute was settled. Athens says it considers the accord inactive. The Turkish Foreign Ministry said in a statement it had received an assurance from Greece that it would not carry out oil activities outside its territorial waters. Greece declined comment on the statement. Papandreou repeated an invitation to Turkey to take the long-standing continental shelf dispute to the International Court of Justice at The Hague. Conservative opposition leader Constantine Mitsotakis said he had urged Papandreou to accept an offer from NATO General Secretary Lord Carrington to help resolve the row.
Wedgestone Realty Investors Trust said it has issued institutional investors 10-year warrants to buy 575,000 shares at 16.50 dlrs each in connection with the previously-announced sale of 10-year promissory notes to the investors. It said the exercise price of the warrants may be reduced and the number of shares increased in certain circumstances.
Remarks by Japan's Prime Minister Yasuhiro Nakasone that last month's G-6 meeting agreed to stabilize the dollar above 150 yen have come too late to influence currency trading, dealers said. After Nakasone's statement the dollar rose to 146.40/50 yen from an initial low of 144.20/40 and New York's Friday finish of 147.15/25. But the rebound was largely on short-covering, they said. "I think (Nakasone's) desperate," said a U.S. Bank foreign exchange manager. Nakasone told a Lower House Budget Committee in Parliament that Japan and other industrialized nations committed themselves in Paris last month to stabilize the dollar above 150 yen. Finance Minister Kiichi Miyazawa told the same committee that the six - Britain, Canada, France, Japan, the U.S. And West Germany - had intervened aggressively since the dollar fell below 150 yen. "His (Nakasone) remarks should have been made and should have had a bigger influence when the dollar was still above 150 yen," said P.S. Tam of Morgan Guaranty Trust. Tam said the dollar has hit short-term chart targets and is likely to rebound. But he warned of another dip to below 145 yen. Dealers said the worsening trade relations between the U.S. And Japan will continue to depress the dollar. The trade issue has now become a political issue since the Reagan Administration is facing uproar in Congress over th3pYgks in cutting the country's 169.8 billion dlr trade deficit, they said.
Idec Izumi Corp is issuing a 35 mln dlr Eurobond with equity warrants, due April 23, 1992 with an indicated coupon of 2-3/8 pct and priced at par, lead manager Daiwa Europe Ltd said. The non-callable bonds are guaranteed by Fuji Bank Ltd and final terms will be set on April 6. The warrants will be exercisable between June 1, 1987 and April 2, 1992. Gross fees of 2-1/4 pct comprise 3/4 pct for management and underwriting and 1-1/2 pct for selling. Listing will be in Luxembourg.
Walbro Corp said it expects
its first-quarter results to reach "all-time highs."
It projected sales exceeding 32 mln dlrs, or up 21 pct from
the 26,488,000 dlrs reported for the 1986 first quarter. It
said the previous high for a single quarter was 27,179,000 dlrs
for the 1986 fourth quarter.
Walbro estimated income for the quarter will exceed
first-quarter 1986 income, which was 1,953,000 dlrs, or 66 cts
a share, by at least 40 pct. It said the first quarter of 1986
had been the previous income record for a single quarter.
Walbro cited strong demand for its fuel systems products,
especially automotive electronic fuel injection components and
carburetors for lawn and garden applications.
However, it said it is unlikely the company will sustain
the same record pace of sales and income throughout 1987, due
to an expected reduction in throttle body sales.
"It now appears likely that the company's throttle body
business with General Motors Corp
Sri Lanka has appealed to 24 countries for emergency aid to help 2.4 mln villagers affected by the country's worst drought in 36 years, government officials said. Embassies received letters over the weekend outlining aid needed for a sixth of Sri Lanka's population in 13 districts. The letter said the government had to step in "to avert serious economic hardship" and because the Social Services Ministry had already used up its entire 1987 budget provision of 23 mln rupees by distributing help to the worst hit areas. The letter said 548.76 mln rupees were needed for a six month period, at least until the May-September (Yala) rice crop was harvested. Over 25,000 tonnes of wheat, rice, flour and other cereals were required, it said, along with supplies of sugar, lentils, dried or canned fish and milk. In some of the most seriously affected districts, the Maha (October 1986-April 1987) crop had been "almost completely devastated," the letter said. Maha paddy output was now estimated at 70 mln bushels, 20 mln less than originally expected. There were two scenarios for the Yala crop, with a high forecast of around 40 mln bushels conditional on adequate rainfall within the next three to four weeks. "Should the present drought continue, however, production is estimated at around 20 mln bushels," the letter added. Total estimated paddy output for 1987 would be between 90 and 110 mln bushels, or 1.35 to 1.65 mln tonnes of rice. Last year's output was 124 mln bushels, down from 127 mln in 1985. The letter said villagers in most seriously affected districts had been deprived of any means of subsistence because subsidiary crops had also failed. It said the government's current budget did not permit it to provide sustained and adequate relief to those affected. "Revenue has been adversely affected by depressed commodity prices and slowing of the economy. Defence commitments continue to exert pressure on the expenditure side." The 548.76 mln cash would cover payments of 150 rupees per month for each family, as well as handling, transport and distribution of emergency food. But such an outlay of funds by the government would not be possible without seriously impairing development projects, or "greatly fuelling inflation" in the economy, the letter said. The letter said the Food Department would be able to release wheat and rice from the buffer stock to meet the immediate cereal requirements "provided such stocks are replaced subsequently." The Meteorological Department said the country was experiencing its worst drought since 1951 and the four-month dry spell prevailing in most of the areas would only break when the monsoon rains fell in late May. The letter said some areas had been experiencing the drought since August, and in the rice growing district of Kurunegala there had been no effective rainfall since June 1986.
Morrison Inc, a diversified food service company, said it acquired Custom Management Corp, based in Kingston, Penn., for an undisclosed amount. Custom manages some 215 food contract management operations and about 65 environmental service accounts, producing about 100 mln dlrs in annual revenues.
Creditanstalt-Bankverein
Grain traders and analysts expect lower wheat and soybean exports and higher corn exports than a year ago in the USDA's export inspection report today. Corn export guesses ranged from 27.0 mln to 32.0 mln bushels, compared with the 27.6 mln inspected last week and 20.5 mln a year ago. Soybean export guesses ranged from 14.0 mln to 16.0 mln, up from the 13.4 mln inspected last week but below the 25.5 mln reported a year ago. Wheat estimates ranged from 11.0 mln to 14.0 mln bushels, compared with 12.0 mln reported last week and 18.3 mln a year ago.
Oppenheimer, the brokerage and
investment subsidiary of Oppenheimer Group Inc, told the
Securities and Exchange Commission it has acquired 243,400
shares of Cyclops Corp, or 6.0 pct of the total outstanding.
Oppenheimer said it bought the stake in connection with
risk arbitrage and other investment activities in the ordinary
course of its business. It said it has no plans to seek control
of the company.
As of Friday,
Dow Chemical Co said it increased prices by nine cts a pound (solids) for styrene-butadiene latex and plastic pigments, effective May One. Dow did not release the percentage increase. It said the increase will affect the floor covering markets, paper, paperboard and specialty markets. It said the increase is in addition to a previously announced seven cts a pound (solids) increase, effective March One.
Centronics Corp said its board declared a dividend distribution of one preferred share purchase right on each outstanding common share payable to holders of record April 9. The rights, which will expire 10 years later, will entitle shareholders to buy one-hundredth of a share of a new series of preferred at an exercise price of 20 dlrs. The rights will be exercisable only if some one acquires 30 pct or more of Centronic's common or announces an offer which would result in ownership of 30 pct or more of the stock. Centronics said its board will be entitled to redeem the rights at two cts per right at any time before a 30 pct position has been acquired. If the rights become exercisable, the company said, those held by shareholders other than the owner of 30 pct or more of the stock will entitle the holder to purchase a number of common shares having a market value twice the right's exercise price.
The Federal Reserve said it will enter the U.S. Government securities market after the 1300 EST weekly bill auction to purchase around 900 mln dlrs of Treasury bills for customers, a spokesman said. He said the Fed will purchase bills with maturities from May through September 10. Dealers said Federal funds were trading at 6-3/8 pct when the Fed announced the operation.
Computer Microfilm corp said it expects revenues of over 12.5 mln dlrs and higher earnings in 1987. The company today reported 1986 earnings of 439,100 dlrs on revenues of 9,918,413 dlrs, up from earnings of 259,948 dlrs and revenues of 9,683,392 dlrs a year before.
McDonald's Corp said it is offering to buy the 25 mln dlrs in its outstanding 10-7/8 pct debentures due July 15, 2015. It said debentures will be purchased at 1,118.30 dlrs per 1,000 dlrs principal amount, plus accrued interest. The original debenture issue was for 100 mln dlrs. It said the buyback offer expires April Eight, unless extended.
Sierracin Corp said it completed the repayment of its entire 14 mln dlr bank debt and entered a new, unsecured revolving credit term loan agreement. The new arrangement provides for borrowings of up to 10 mln dlrs at the bank's prime rate and replaces a secured credit line which expired in February, Sierracin also said.
Exports of French soft wheat for the period July 1, 1986, to March 1, 1987, fell 27.6 pct to 8.21 mln tonnes from 11.34 mln tonnes in the same 1985/86 period, the national cereals office ONIC said quoting customs figures. Of this total, exports to non-EC countries totalled 3.76 mln tonnes, 34 pct down on 5.70 mln, and exports to EC nations 4.45 mln tonnes, 21.1 pct down on a previous 5.64 mln. Main EC destinations were Italy with two mln tonnes versus 1.9 mln, Belgium 500,000 tonnes (one mln), Netherlands 500,000 (600,000), West Germany 500,000 (800,000), Spain 300,000 (zero), Britain 300,000 (700,000), Greece 200,000 (300,000), and Ireland 100,000 (200,000). In flour, exports totalled 980,000 tonnes, up 6.5 pct on a previous 920,000 tonnes. Exports of maize totalled 4.11 mln tonnes, 37.4 pct up on a previous 2.99 mln. Exports to non-EC countries were 190,000 tonnes against 140,000 and to EC countries 3.92 mln tonnes against 2.84 mln. Main EC desinations were Netherlands 900,000 (600,000), Belgium 800,000 (one mln), Britain 700,000 (500,000), West Germany 400,000 (same), Italy 300,000 (200,000) and Greece 300,000 (zero).
Rochester Telephone Corp said it completed its acquisition of the Enterprise Telephone Co, based in New Holland, Pa., in exchange for stock valued at 26.3 mln dlrs. Enterprises serves about 16,000 access lines in Lancaster County. Enterprise becomes the third operating telephone subsidiary of Rochester Telephone in Pennsylvania and its sixth largest overall, the company said.
City Resources Ltd said it has agreed in principle to sell a 50 pct interest in a group of mineral properties in the southwest Pacific to a buyer it did not name for 30 mln Canadian dlrs. The company said a preliminary estimate of the geological resources of one of the properties to a depth of 200 meters indicates a potential of 1.2 mln ounces of gold, and by the middle of 1987 it expects to establish proven ore reserves containing at least 500,000 ounces of gold. Mining could start in 1988, subject to a satisfactory feasibility study. The company said completion of the transaction is subject to regulatory and shareholder approvals. City Resources is controlled by City Resources Ltd of Australia.
Home Shopping NEtwork Inc said its Silver King Broadcasting Co INc unit entered a definitive contract to buy the broadcasting assets of TV station KWVT, Channel 22 in the Portland/Salem, Ore. area for undisclosed terms. Additionally, the company said KWVT, which serves 785,000 homes, began broadcasting Home Shopping Network full time this morning under an affiliation agreement. Home Shopping also said it entered a definitive contract to buy TV Station KPST, Channel 66 in San Francisco and KLTJ, Channel 49 in Dallas.
U.K. Chancellor of the Exchequer Nigel Lawson said the meeting of six major industrial nations in Paris last month agreed not to publish any bands in connection with their pact to stabilise currencies. Questioned by a parliamentary select committee about why the participating countries had not announced any bands, Lawson replied, "we all agreed it would be much more sensible not to." When asked whether that meant an informal joint currency float with set ranges was arranged in Paris, Lawson said "I do not want to reveal the precise nature of the agreement, so as not to make it easy for" speculation against the accord. Lawson said the Paris accord presumed that individual countries would take corrective action if their currency began reacting significantly to domestic macroeconomic factors. But if such movements were due to extraneous factors, Lawson said the other pact countries would come to its aid through concerted intervention on the foreign exchanges. "It is clear that both Germany and Japan are having difficulty adjusting to their very large exchange rate appreciations and making their economies more domestically oriented, just as it is taking time for the United States to make its own economy more export oriented," Lawson said. In his oral evidence to Parliament's Select Treasury Committee, Lawson repeated that he was happy with the pound's current level, adding that "It is an objective ... To try to keep it around that level." He said the perception of sterling on foreign exchanges had changed since the steep drop in oil prices, largely because the pound had weathered that period so successfully. "There has been a reassessment of sterling's fundamentals," Lawson said. He disagreed with what he termed "the grossly exaggerated claim" that real U.K. Interest rates were much higher than those of other major industrialsed countries. Using as a reference the key three-month sterling interbank rate as quoted in London, Lawson said Britain now had a real interest rate level of 5.75 pct - the same as Japan did and only a 0.75 percentaage point above the Group of Five average. Lawson confirmed that "over the medium and longer term, the government's objective is zero inflation." He said the government's intention of its PSBR constant at 1.0 pct of GDP "is the modern equivalent of the balanced budget doctrine." He added that "to allow the debt/GDP ratio to remain constant on anything other than zero inflation basis is simply a recipe for accelerating inflation."
Steel production rose 1.3 pct to 1,696,000 short tons in the week ended March 28 from 1,675,000 short tons, the American Iron and Steel Institute reported Production so far this year was 18,810,000 tons adjusted off 14.6 pct from 22,016,000 tons produced by the nations mills a year ago. Utilization for the week of March 28 was 78.7 pct and for the week of March 21 was was 77.8 pct.
The U.S. Agriculture Department said it will update its estimate of winter wheat seeded acreage in the prospective planting report, scheduled for release at 1500 est (2100 gmt) tomorrow, March 31. The original estimate of seedings of winter wheat was published in January. It said the new survey is possible because of the new integrated nationwide survey program that uses probability sampling procedures that combine information from farmers operating in selected areas and farmers identified on special lists.
Scallop Petroleum Corp, a subsidiary of Royal Dutch/Shell group, said today it raised contract prices for heavy fuel 25 cts to 1.75 dlrs a barrel, effective today. The increase brings the price for 0.3 pct sulphur to 22.50 dlrs, up 1.75, 0.5 pct sulphur to 21.50 dlrs, up 1.50, 0.7 pct sulphur to 20.25 dlrs, up 75 cts, one pct sulphur to 19.50 dlrs, up 25 cts, two pct sulphur to 18.75 dlrs, up 75 cts, 2.2 pct sulphur to 18.50 dlrs, up 75 cts, 2.8 pct sulphur to 18.00 dlrs, up 75 cts.
The Federal Reserve's move to easier monetary policy, begun with four quick half-point discount rate cuts in 1986, will likely end with a final rate drop in the second quarter, analysts said. A poll of 10 economists shows most expect interest rates to edge lower, with the Fed likely to drop its basic lending rate from 5-1/2 pct late next quarter to help the economy. "The Fed is not likely to ease policy much further without a full-blown recession," said Raymond Stone, chief financial economist at Merrill Lynch Capital Markets. Stone said economic data available by late June may be just weak enough to prompt one more discount rate cut. But he said it may only be a quarter-point drop instead of the usual half point, to avoid hurting the dollar further. All of the economists agreed that the Federal Open Market Committee tomorrow will leave Fed policy unchanged. The average forecast of those surveyed projects roughly quarter-point drops by the end of June in both the Treasury bond yield, to 7-1/2 pct, and the Federal funds rate at which banks lend to one another, to 5-7/8 pct. Most expect the prime lending rate at major banks to remain at 7-1/2 pct. Other broad predictions of the survey, relating mainly to the April-June quarter, follow: - The dollar is likely to decline five to 10 pct further against other major currencies because of a large U.S. budget deficit and a wide, but narrowing, trade gap. Contacted after the dollar's steep drop in the last two business days, the economists reaffirmed this view but stressed the risk is that the dollar will fall more, rather than less, than they expect. - Oil prices in the second quarter are likely to continue trading roughly between 16 and 19 dlrs a barrel and could well test the lower end of that range. - Stocks will continue to outperform bonds next quarter and probably for all of 1987. Stocks should gain on strong foreign demand and a modest second-half economic rise. The outlook for bonds also is less favorable later in the year since both inflation and interest rates may be edging up. - Inflation as measured by the GNP implicit price deflator will rise to around 3.3 pct this year from 2.7 pct in 1986. The sharp fall in the dollar to date will add to inflation, as will a mild economic pickup in the second half of this year. - U.S. real gross national product, which grew at a two pct annual rate in the 1986 second half, should expand at respective rates of about 2.3 pct and 2.5 pct in the 1987 first and second halves. First-quarter growth is put at a 2.4 pct annual rate, slowing to 2.1 pct next quarter. Robert Brusca of Nikko Securities Co International sees both the strongest economy and the highest interest rates among those surveyed. He expects real GNP, which grew at a 1.1 pct rate in fourth-quarter 1986, to expand at a 3.3 pct rate this quarter and 3.5 pct next quarter. "The economy will bounce back more strongly than many expect," Brusca said. He said an involuntary buildup in inventories, largely in autos, will add to first-quarter economic growth, with consumer spending helping later. "We're running out of special factors to keep the economy afloat," said Philip Braverman of Irving Securities Corp. His interest rate and economic forecasts were among the lowest. Braverman said tax law changes and inventory accumulation helped lift fourth and first quarter GNP growth, respectively. He expects 2.5 pct first quarter growth but said that second quarter growth could be zero or negative. Braverman said economic activity next quarter will suffer from a paring of inventories, lower capital investment, slow government spending and less construction. Only a marginally narrower trade deficit will add to growth. He sees a 7.10 pct end-of-June yield on Treasury bonds, with Federal funds and prime rates at 5.50 and seven pct, respectively. Nikko's Brusca projects rates of 8.25 pct for bonds, 6.15 pct for funds and 7.75 pct for the prime rate. Two of the 10 economists revised rate forecasts up mildly after the dollar's fall to 40-year lows versus the yen in past days and news of pending U.S. trade sanctions against Japan. David Resler of Nomura Securities Co International Inc raised his end-June bond yield forecast to 7.50 pct from 7.20 pct and a Fed funds rate estimate to six pct from 5.80 pct. Raul Nicho, president of Money Market Services Inc, lifted his forecast of bond and Fed funds rates an eighth of a point to eight pct for bonds and 6-1/4 pct for funds. Both Nicho and Resler left their end-June prime rate forecast at 7-1/2 pct. The higher rate forecasts reflected a belief that Japanese investors will be less eager to buy U.S. bonds because of fear about further dollar erosion and perhaps in response to U.S. trade sanctions. Yields may have to rise to lure other buyers. ......END-JUNE U.S. INTEREST RATE FORECASTS.... ....................T-bonds..Fed funds..Prime.. Nikko Securities.....8.25......6.15......7.75.. Money Mkt Services...8.00......6.25......7.50.. Discount Corp........7.75......6.25......7.50.. Merrill Lynch........7.30......5.75......7.50.. Bankers Trust........7.25......5.50......7.50.. Wells Fargo Bank.....7.30......5.60......7.00.. Irving Securities....7.10......5.50......7.00.. Dean Witter..........7.00......5.50......7.00.. .FORECAST AVERAGE....7.50......5.875.....7.50.. .CURRENT LEVELS......7.80......6.125.....7.50..
The Louisiana weekly USDA state crop report said there were 2.4 days suitable for fieldwork. Soil moisture supplies rated 41 pct adequate and 59 pct surplus. Winter Wheat - fair to good condition. eight pct headed vs 27 pct a year ago and 17 pct average. Corn - eight pct planted vs 64 pct a year ago and 51 pct average. two pct emerged vs 45 y/a and 23 avg. Spring Plowing - seventeen pct completed vs 66 pct a year ago and 48 pct avg.
Imperial Bancorp said it declared a five pct stock dividend, payable May 29 to shareholders of record April 17.
The Texas weekly USDA state crop report said stormy winter weather limited fieldwork before conditions improved later in the week. A snowstorm caused some cattle deaths in the Panhandle, and cold, wet weather covered many areas. Windy weather followed to dry fields and limit planting delays. Small grains made good progress despite cool temperatures which slowed growth. Additional moisture was needed in some areas. Many fields were booting and some were beginning to head. Wheat was rated 16 pct fair, 56 pct good and 28 pct excellent. Corn and sorghum planting progressed, and land preparation was ahead of schedule in the Plains despite snowy weather. Cotton planting progressed in the Lower Valley.
The Student Loan Marketing Association announced an offering of Australian 100 mln dlrs (approx. U.S. 70 mln) in two-year fixed rate notes priced at par and bearing interest at 14 pct per annum. Sallie Mae said semiannual interest payments and principal at maturity will be paid in Australian dollars, adding it will enter into a separate currency and interest exchange agreement to convert its payment obligations to U.S. dollars. The notes, offered in U.S. capital markets by Salomon Brothers Inc, are due April 14, 1989, and are for settlement April 14 with the first interest payment being made Oct 14.
The Oklahoma weekly USDA crop report said cold weather slowed crop development and caused some cattle deaths. Wheat growth was halted by cold weather, and rain early in the week prevented fertilizer application and weed spraying. Fields in the west were short of nitrogen, and moderate insect activity was noted in the southwest region. Wheat condition was rated 15 pct fair, 84 pct good and one pct excellent. Row crop activity was very slow amid wet conditions. Topsoil moisture was rated 30 pct adequate and 70 pct surplus, and subsoil moisture was rated 100 pct adequate. Only two days were suitable for fieldwork.
Shr loss five cts vs profit 36 cts Net loss 784,000 vs profit 4,793,000 Revs 90 mln vs 79 mln Year Shr profit 27 cts vs profit 65 cts Net profit 4,010,000 vs profit 8,539,000 Revs 273 mln vs 214 mln
Imperial Corp of America said it declared a 10 cts dividend and four pct stock dividend on APril 25 to holders of record April 10. This is the first dividend payment since 1981, the company said.
Japan's seasonally adjusted unemployment rate fell to 2.9 pct in February from the record 3.0 pct in January, the government's Management and Coordination Agency said. The January level was the worst since the Goverment started compiling unemployment statistics under the current system in 1953. Unemployment was up from 2.8 pct a year earlier. Unadjusted February unemployment totalled 1.86 mln people, up from 1.82 mln in January and 1.64 mln a year earlier. Male unemployment in February remained at 2.9 pct, equal to the second-highest level set in January and December. Record male unemployment of 3.1 pct was set in July 1986. Female unemployment rose to a record 3.1 pct in February from the previous record 3.0 pct marked in January 1987 and in April, August, September and December last year. "Japan's employment condition was still severe in February as the non-rounded rate of unemployment in February fell only 0.03 percentage points to 2.93 pct from 2.96 pct in January," an agency official said. Employment in manufacturing industries fell 430,000 from a year earlier to 14.22 mln people in February due to the yen's continued appreciation, while employment in non-manufacturing industries rose 380,000 to 12.11 mln. In manufacturing industries, employment in the textile industry fell 180,000 to 1.94 mln in February, while in ordinary and precision machinery industries it fell 160,000 to 1.50 mln.
Commerzbank AG
The U.K. Exported 612,000 tonnes of wheat and 498,800 tonnes of barley in February, the Home Grown Cereals Authority (HGCA) said. Based on the previous provisional figures issued for February, wheat exports were increased by 480,200 tonnes and barley by 283,800 tonnes. The new figures bring cumulative wheat exports for the period July 1-March 13 to 3.66 mln tonnes and barley to 3.50 mln, compared with 1.47 and 2.09 mln tonnes respectively last season.
The Bundesbank declined to comment on rumours in Tokyo that it was intervening heavily to support the dollar, but dealers here said they had not seen the German central bank in the market all morning. The dollar was quoted at around 1.8040 marks shortly after midday in nervous but quiet trading, up from its 1.7975/85 opening. Spreads against the mark remained around 10 basis points, with some banks quoting only five point spreads. Dealers said spreads would widen and the dollar would move more sharply if the Bundesbank did intervene.
Consuming countries, chastened by the collapse of International Tin Council (ITC) price support operations in 1985, are insisting more than ever before that commodity pacts reflect the reality of the markets they are serving, a Reuter survey showed. They want price ranges to be more responsive to market trends - to avoid overstimulating output and straining the accords' support operations - and intervention rules that avoid the risk of exports by non-members undermining the pacts. Consumers and producers, mindful of ITC buffer stock losses, have also sought strict conditions for buffer operations. Importers and some key exporting countries have shunned a generalised approach to commodity price stabilisation and prefer to assess each commodity case by case, the survey showed. The International Cocoa Organization (ICCO) last week set precise limits on what the Buffer Stock Manager (BSM) could do under the new agreement. It imposed daily and weekly purchase limits, prohibited the BSM from operating on futures markets and stipulated, after consumer insistence, that up to 15 pct of total buffer stock purchases could be of non-member cocoa. This will help prevent lower quality cocoa from Malaysia, the world's fourth largest producer, undermining the market. The cocoa pact establishes precise differentials the Buffer Stock Manager must use when purchasing varying grades. A new International Natural Rubber Agreement (INRA) was adopted earlier this month in Geneva. Importing and exporting countries agreed several changes to make the reference price more responsive to market trends and they eliminated provisions under which the buffer stock could borrow from banks to finance operations. Direct cash contributions from members will fund buffer stock purchases. Bank financing was a particular feature of the failed ITC buffer stock which suffered losses running into hundreds of millions of sterling. Legal wrangles continue. Recent International Coffee Organization (ICO) negotiations in London exemplified the degree to which consumers insist that agreements reflect market reality, commodity analysts said. Consumers and a small group of producers argued that "objective criteria" should be used to define export quota shares, which would have meant a reduction in the share of Brazil, the world's leading producer. Brazil wanted to maintain its previous quota share of 30 pct. The talks broke down and, although an ICO executive board meeting starts in London today, delegates and trade sources see chances of any near term negotiations on export quota distribution as remote. International agreements exist for sugar and wheat. These do not have any economic clauses but provide a forum for discussions on possible future economic agreements, collect statistics and draw up market analyses. Analysts said differences between sugar exporting countries have held up any progress towards an accord with economic teeth, while sheer competition between major exporters amid a world grain glut militate against any pact with economic provisions for wheat. An alternative focus for commodity discussions are international study groups, made up of governments with advice from industry, such as those for lead and zinc and rubber. The U.N. Common fund for commodities, with a planned directly contributed capital of 470 mln dlrs, has failed to become operational because neither the U.S. Nor the Soviet Union has ratified it. U.S. Officials in Washington said the U.S. Doubts the fund would be able to fulfil its objectives, citing the lack of widespread support. U.S. Officials in Washington and Malaysian officials in Kuala Lumpur expressed a policy of looking at each commodity pact case by case. U.S. Officials said it has been willing to study individual cases for economically sound, market-oriented commodity accords balancing producer and consumer interests. "We see little to be gained by attempting to increase the price of a commodity whose long-term trend is downward," official Administration policy states. The U.S. Currently belongs to only two international commodity agreements that have economic clauses - the International Coffee Agreement (ICA) and INRA - but it is also a member of the sugar and wheat pacts. The U.S. Did not join the International Cocoa Agreement because it considered its proposed price ranges unrealistic and not designed to protect the interests of consuming countries, the State Department said. U.S. Officials singled out the INRA as the one commodity agreement that seems to be working. U.S. Negotiators were successful in getting other members of the pact to agree that the price review and adjustment mechanism of the rubber agreement would accurately reflect market trends and also to continue the accord as a market oriented agreement, U.S. Officials said. Canadian officials in Ottawa also said they have consistently tried to look at membership of commodity pacts on the merits of each case. Malaysian Primary Industries Minister Lim Keng Yaik told Reuters in Kuala Lumpur his country, the world's top producer of rubber, tin and palm oil, decides its participation in international commodity pacts case by case. Malaysia is a member of the Association of Tin Producing Countries (ATPC) which produce 65 pct of world tin. The ATPC launched a plan to limit member tin exports to 96,000 tonnes for a year from March to cut the tin surplus to 50,000 from 70,000. Economist in the West German Ministry of Agriculture and delegate to cocoa, wheat and sugar agreements Peter Baron told Reuters in London, "Agreements with economic clauses to stabilise prices could function if fixed price ranges were close to market reality, if there was full participation by producers and consumers, and if participants were prepared to take their obligations in the framework of the agreement seriously." But Baron added, "No real sanctions are available for a country that doesn't stick to its obligations...The German approach is sceptical. We don't think agreements are the best instrument to help developing countries. They were never meant to be a vehicle for the transfer of resources and that is how developing countries often interpret them." Traditionally Britain has always been supportive of commodity agreements, reflecting its strong links with Third World producing countries. But recently demands for more stringent and justifiable pacts with emphasis placed on the need for "intellectual honesty" and "objective criteria" have grown. British officials stress the need for commodity pacts to be a two way partnership in trade rather than a disguise for aid. It is now seen as essential that any pacts involving direct market participation through a buffer stock have a high degree of transparency and do not contain the risk of open-ended borrowing that occurred in the tin pact, they said. U.K. Delegates talk of stabilisation and the need for prices to reflect changes in market structure and price trends rather than dictate what prices should be. A Foreign Ministry official in Tokyo said Japan urges price realism in commodity pacts, adding high prices inflate supply. A government spokesman in Paris said France is favourable to commodity pacts. France, a large consumer and producer of sugar, favours a sugar pact as long as it reflects the real market situation, particularly regarding stocks. Indonesia's Foreign Minister Mochtar Kusumaatmadja told Reuters in Jakarta: "These agreements can work as long as the problems are cyclical..But it's another matter when there are structural problems..But we are still committed to commodity agreements as an act of faith." Nicaraguan External Trade Minister Alejandro Martinez Cuenca said in London producers cannot afford not to give their backing to commodity agreements. "The political will is not there on the part of some consumers to make agreements work," Martinez Cuenca said. The head of the economics department in the Brazilian Foreign Ministry, Sebastiao do Rego Barros, told Reuters an agreement can be successful if it keeps a link with market reality. If you have an agreement such as coffee with a system of quotas, with a link between prices practised inside the pact and actual market prices, it can work. UNCTAD spokesman Graham Shanley said consuming countries realise steady export earnings enhance developing countries' ability to service debt and mean greater demand for industrialised nations' capital goods.
Executive board members of the International Coffee Organization, ICO, passed over the issue of export quota negotiations at its regular meeting here, delegates said. No move was made to reopen dialogue on export quotas and no further discussion on the issue is likely during the three-day talks, they said. Producer and consumer members of the ICO council failed to agree export quota shares in early March. Neither Brazil, the largest producer, nor the U.S., the largest consumer, are ready to be flexible, delegates said. "The situation is unchanged," consumer spokesman Abraham Van Overbeeke told reporters. "As long as Brazil sticks to its position there will not be quotas -- there is no point in meeting." At the last council meeting, Brazil wanted to maintain its previous quota share of around 30 pct of the market. Consumers and a splinter group of eight producers favoured redistribution of export shares using "objective criteria," which would likely have reduced Brazil's share. Brazilian delegate Lindenberg Sette said that, if quota negotiations were to resume, the 1.0 mln bag shortfall Brazil was willing to give up in early March if the producer proposal was accepted would no longer be on the table. "As we said from the start...No agreement, no one million bags," he told Reuters. Shortfalls of 200,000 bags offered by OAMCAF, the African and Malagasy Coffee Organization, and 20,000 bags offered by Angola, are also no longer valid, delegates said. The closest the board came to discussing quotas was a briefing by the Guatemalan ICO delegate Rene Montes on a recent Latin American producers meeting in Managua, delegates said. There, the producers expressed their political will to negotiate basic quotas, particularly in the face of the damaging drop in coffee prices after the council failed to agree quotas, Montes said. The ICO board also reviewed export statistics and stock verification. They expected talks on stock verification to take up the remainder of today's session, delegates said.
Jewelmasters Inc said it expects to report net income for the year ended January 31 20 to 25 pct below analysts' estimates of 1,750,000 dlrs or 95 cts per share. Jewelmasters sales sales for the year just ended were about 52.5 mln dlrs. In the prior year it earned 1,650,000 dlrs on sales of 45.1 mln dlrs. Jewelmasters said net income for the year was hurt by disappointing sales in December and January, a high level of advertising spending in the fourth quarter, higher than expected opening expenses for 34 additional units and an adjustment to inventory associated with a shift to a more comprehensive inventory system. Jewelmasters said it expects to report audited results for the fourth quarter and year in about three weeks.
J.C. Penney Co Inc said its board declared a two-for-one stock split and raised the quarterly dividend 12 cts per share on a presplit basis to 74 cts. Both are payable May One to holders of record April 10.
Shr 31 cts vs 28 cts Net 11.9 mln vs 10.9 mln Revs 167.2 mln vs 154.0 mln
The Soviet Union featured prominently in U.K. Grain exports outside the EC for the period July 1/March 13, taking a combined total of 1.10 mln tonnes of wheat and barley out of all-destination U.K. Exports of 7.16 mln tonnes, the Home Grown Cereals Authority said, quoting provisional Customs and Excise figures. The Soviet total comprises 634,000 tonnes of wheat and 472,000 tonnes of barley. Grain traders said the figures understate shipments already made by several thousand tonnes and they expect total U.K. Grain exports to the USSR this season to reach 2.5 mln tonnes, comprising 1.5 mln wheat/1.0 mln barley.
Treasury Secretary James Baker said that the agreement in Paris to cooperate in exchange rate changes showed that the process of coordination agreed to at the Tokyo summit was working. He told the House Appropriations Committee the meeting "demonstrated that the process is working." He noted that the industrial surplus countries committed themselves to strengthen their growth prospects while the deficit countries agreed to reduce their domestic imbalances. Baker said that for its part, Japan announced a cut in its discount rate to 2.5 pct and committed itself to prepare a comprehensive economic program to stimulate domestic demand after the Diet completes action on the current budget. He said the United States must also do its share pressing for reductions in the federal budget deficit through spending cuts. "And we must continue to oppose protectionist pressures," he added.
The Coffee, Sugar and Cocoa Exchange has expanded the normal daily trading limit in Coffee "C" contracts to 6.0 cents a lb, from the previous 4.0 cents, effective today, the CSCE said. The new daily limits apply to all but the two nearby positions, currently May and July, which trade without limits. In addition, the 6.0 cent limit can be increased to 9.0 cents a lb if the first two limited months both make limit moves in the same direction for two consecutive sessions, according to the CSCE announcement. Before the rule change today, the CSCE required two days of limit moves in the first three restricted contracts before expanding the daily trading limit. Under new guidelines, if the first two restricted deliveries move the 6.0 cent limit for two days the Exchange will expand the limit. The expanded 9.0 cent limit will remain in effect until the settling prices on both of the first two limited months has not moved by more than the normal 6.0 cent limit for other contracts in two successive trading sessions, the CSCE said.
The Kansas City Board of Trade, KCBT, has asked federal futures regulators to modify a proposal to raise the Chicago Board of Trade's, CBT, speculative position limits on wheat futures contracts, saying the plan would put the the Kansas exchange "at a serious competitive disadvantage." The Commodity Futures Trading Commission, CFTC, last month proposed raising CBT wheat speculative limits to 1,200 contracts all months net from 600 contracts, and to 900 contracts for any single month from 600 contracts. At the same time, CFTC proposed leaving KCBT's wheat speculative position limits unchanged. "Higher limits for CBT wheat than for KCBT wheat would significantly impair the KCBT's ability to compete with the CBT for speculative interest," Michael Braude, president of the Kansas exchange, said in a letter to CFTC. A CFTC spokesman said the commission took into account open interest affected by existing speculative limits in proposing to raise CBT's limits. KCBT said the CFTC proposal would reduce hedging efficiency, constrain growth of intermarket spreading and of the exchange's wheat options contract and impair its ability to attract large speculators. The Kansas City exchange asked the commission to amend its proposal to change the limits for KCBT wheat to the exact same bushel amount as specified for CBT wheat. CFTC will consider public comments on the proposal until June 3.
Tamura Corp is issuing 70 mln Swiss francs of five-year straight notes with a 4-3/4 pct coupon and par issue price, lead manager Swiss Bank Corp said. Payment is due April 15. The notes are guaranteed by the Sumitomo Bank Ltd.
Keycorp said it has signed a
definitive agreement to acquire Commercial Security Bancorp
The Senate's Democratic and Republican leaders praised President Reagan for retaliating against Japan for violating a semiconducter accord but dashed cold water on ideas it was the first shot in a trade war. Senate Democratic Leader Robert Byrd and Republican leader Bob Dole both told the Senate Reagan's decision was long overdue and urged Japan to open its markets to U.S. goods and stop dumping on world markets. Each noted in separate speeches that they saw no trade war over the issue, despite concerns in financial markets. "That fear has no basis in fact," Byrd said.
Moody's Investors Service Inc said it launched today a new index of investment grade U.S. corporate bonds based on 100 issues. The rating agency noted that Commodity Exchange Inc, Comex, filed with the Commodity Futures Trading Commission in October 1986 a proposal to list a futures contract based on the index. Trading is expected to start later this year. Moody's said it calculated end-of-month index values back to December 1979. Corporate bond prices closed on Friday at 274.01, up from the index's initial value of 100.00 on December 31, 1979, the agency said. The Moody's index includes a sample of liquid bonds Moody's chose to mirror the credit quality, maturity, duration and coupon distribution of bonds in the industrial, utility and financial sectors of the U.S. secondary market. However, it excludes convertible subordinated debenture issues and tax-exempt bonds, as well as bonds with maturities under five years or with variable-rate coupons. The rating agency said the index has been designed to reflect changes in corporate bond prices as they occur throughout the trading day.
Audio/Video Affiliates Inc said it
will receive an undisclosed amount from
Poland met the Paris Club of western creditor nations for renewed talks on rescheduling its debt repayments but no conclusive result was expected, diplomatic sources said. They said the discussions, led on the Polish side by deputy Finance Minister Andrzej Doroscz, were to renew contacts agreed after an inconclusive meeting in January and the talks were described as a "technical meeting." The January talks focussed on the rescheduling of about 500 mln dlrs of interest and principal due by end-1986 and also touched upon delays in debt repayments recheduled previously. Poland has a 33.5 billion dollar debt to western creditor countries and commercial banks and has already indicated it will not be able to meet interest payments this year after falling behind for the past two years. "The Paris Club is demanding repayment but Poland needs new credits and has made certain supplementary proposals, but it is up to the Club to show an initiative," one of the diplomatic sources said without elaborating. Poland is still continuing a dialogue with the International Monetary Fund but this is progressing slowly, the source said. One diplomatic source said the key to Poland's debt problem lay in London, saying that the commercial bank creditors there must take a practical position before a Paris Club decision. "But their position seems to be hardening," the source said. "One really cannot expect a positive conclusion to today's talks," the source added.
Rep. Pat Roberts, R-Kan., predicted the Reagan administration within the next ten days to two weeks will offer subsidized wheat to the Soviet Union under the Export Enhancement Program, EEP. Roberts made the comment at a press conference held by Republican members of the House Agriculture Committee. He did not say on what he based the comment, but an aide said Roberts had been in touch with top Republican officials recently. The possibility of an expansion of EEP to include wheat to Moscow has been rumored for some time, and some industry sources believe a decision on the issue will be made by the Reagan administration before Secretary of State George Shultz goes to Moscow in April.
Sun City Industries Inc said preliminary unaudited results of ongoing operations for the fiscal year ended January 31, 1987 are expected to rise over 580 pct to 700,000 dlrs or 70 cts per share from the 125,313 dlrs or 12 cts reported last year. Total net income is expected to reach 2.4 mln dlrs, which includes 1.7 mln dlrs of net income realized from sale of property. The combination will result in record earnings of 2.40 dlrs a share, the wholesale distributor and processor of eggs said.
Unfavorable late winter weather conditions in the main wheat growing areas of Yugoslavia indicate dimmed prospects for the emerging winter wheat crop, the U.S. embassy's agricultural officer in Belgrade said. The officer, who travelled through an area from Belgrade to Subotica, said in a field report dated March 27 the wheat crop had been set back at least three weeks because of a cold spell that followed a period of warm weather. He said unseasonably warm weather in late February that brought the wheat crop out of winter dormancy early was followed by three weeks of unusually cold weather. Damaging effects were seen in the fields, most of which show stands with a yellow-brown cast indicating extensive leaf and possible root damage from repeated freezings, he said. The report said that since much of the early growth in February was from late seeding rather than from normal development, his view was that the damage may be more extensive than some local observers say. The most seriously affected fields were late-seeded fields on normal maize soils. Stands in these fields were thin and chances of recovery appeared less favorable, he said. However, he said soil moisture conditions were favorable and many of the fields had already been top-dressed, which would aid recovery.
Roy F Weston Inc said it filed with the Securitites and Exchange Commission a registration statement covering a 30 mln dlr issue of convertible subordinated debentures due 2002. Plans for the proceeds include capital expenditures such as new office buildings, equipment and facilities, the company said. Weston also anticipates using the proceeds for possible acquisitions of related businesses as well as for general corporate purposes. Weston named Drexel Burnham Lambert Inc as sole manager of the offering.
U.S. Agriculture Secretary Richard Lyng declined to confirm statements made today by a farm state congressman that the United States will offer subsidized wheat to the Soviet Union within the next 10 days to two weeks. When asked to clarify comments by Rep. Pat Roberts of Kansas that the administration would soon offer Export Enhancement wheat to the Soviet Union Lyng said, "well it won't be today," and then added, "we have no official comment one way or the other." Lyng would not comment on whether a wheat subsidy offer to the USSR is under more active consideration at the USDA, saying that any remarks by him would be tantamount to an official announcement and could be construed inappropriately.
Chevron Corp said its Chevron U.S.A. Inc unit and Tokyo-based Nippon Oil Co Ltd agreed to conduct a joint-venture oil exploration and development program on selected Chevron leaseholds in the United States. About 50 onshore and offshore exploratory wells will be drilled under the agreement and Chevron will be the operator of the project and pay some costs, the company said. It said Nippon will contribute an initial investment of more than 100 mln dlrs. The Japanese government will also participate in the venture by providing financing to Nippon through the Japanese Oil Corp, Chevron said. It said drilling will begin during the second quarter. Properties to be evaluated are located in California, Colorado, Kansas, Oklahoma, Mississippi, Montana, North Dakota, Texas, Utah, and Wyoming, along with Federal Outer Continental Shelf leases offshore Southern California and in the Gulf of Mexico, Chevron said.
Tunisia is expected to tender shortly for 100,000 tonnes of soft wheat for shipment between April and June, covered by COFACE export credits, trade sources said. Over 300,000 tonnes of French soft wheat have been sold to Tunisia since the beginning of the 1986/87 campaign, of which 225,000 to 250,000 tonnes have already been shipped, they said.
Shifts from mild to very cold weather in East Germany damaged winter barley and late sown winter wheat in central regions and barley north of Berlin, the U.S. agricultural officer in East Berlin said. In a field report, the officer said indications were that winter kill might well be more than 100,000 hectares compared with 38,000 last year. He said the damage was probably more limited in southern and central regions and most widespread in the north. Damage was most severe on plants above the ground where little or no snow cover was present, he added. The officer said heavy frosts at night followed by sunshine during the day led to some heaving, particularly for well developed plants and for winter barley. Furthermore, as the ground surface thawed, some standing water occurred in the fields. The officer said repairing damage will probably call for special measures this spring in fields with damaged plants and where stands are thin. Harrowing, as well as well-timed applications of nitrogen, will be necessary, he added.
National Bancshares Corp of Texas
said it has completed the previously-announced sale of 90,000
credit card accounts of to Lomas and Nettleton Financial Corp
Syria may have bought 80,000 tonnes of French soft wheat, some traders here said. But others said it may instead have given payment guarantees to allow for the shipping of an old contract to go ahead. Syria has bought around 320,000 tonnes of soft French wheat since the beginning of the 1986/87 campaign, of which only 121,000 tonnes had been exported by the end of last month. The country also bought around 30,000 tonnes of EC soft wheat 12 days ago at 80 to 81 dlrs a tonne, fob, they said.
The Dutch Finance Ministry said it accepted bids totalling 3.25 billion guilders on its 6.25 pct bullet bond due 1995, which it priced at 100.8 pct at tender today for an effective yield of 6.12 pct. The ministry accepted 50 pct of bids at the issue price. Higher bids were met in full. The loan, which has a May 1 coupon and paydate, will go towards the government's financing of an estimated 1987 borrowing requirement of about 42 billion guilders. The 1987 budget deficit is some 29 billion guilders and early repayments on state loans are estimated at 13 billion. Because of projected early redemptions to the state of loans by building corporations, analysts predict the state has to raise 32 billion guilders on the capital markets this year, of which it has found 4.5 billion guilders on the private placement market. The finance ministry described today's tender as successful and said the amount raised reflected a change in market circumstances since the last loan issue together with international demand for guilder-denominated paper. Following today's tender, the fourth state loan for payment in 1987, a nominal 10.55 billion guilders has been raised by public issues, bringing the total raised this year to 18.55 billion guilders, or some 44.2 pct of the state's 1987 borrowing requirement. The previous state loan, a 6.25 pct issue due 1998/2002 last month, raised a mere 300 mln guilders. Analysts said the small amount raised on the last issue was because it was a return to a split maturity issue, seen as only attractive to domestic institutions, from bullet loans. The finance ministry said then the amount was low but noted a number of unfavourable market conditions at the time. Bullet loans have only been permitted in the Dutch market since January, 1986, as part of a financial liberalization plan. Bullet loans have attracted considerable foreign demand but have also given rise to worries their fixed repayment date might interfere with intricate redemption schemes built up around previously issued split maturity bonds, dealers said.
A. William Reynolds, chairman and
chief executive of GenCorp Inc, told shareholders he expects to
announce a company alternative to a 100-dlr-per-share hostile
tender within a week.
Last night the company urged shareholders to reject the
tender. Reynolds urged shareholders to be patient, saying the
group sponsoring the tender offer had months to evaluate
GenCorp while "we have had only 10 days to respond."
Reynolds also disclosed the company has resolved legal
challenges to its planned sale of WOR TV, serving the New York
City market, and expects to complete the sale by Friday.
Reynolds said the company expects to book an after tax gain
of 250 mln dlrs from the sale of WOR TV. The company plans to
sell the station to MCA Inc
Borg-Warner Corp will vigorously
resist GAF Corp's 46-dlr-per-share takeover offer, but the
Midwest conglomerate may fall prey to another offer,
either from GAF or its own management, analysts believe.
Analysts also said Borg-Warner may attempt to escape GAF
through a restructuring. The speculation pushed Borg-Warner's
stock up 1-3/8 to 48-1/2 in heavy trading.
Analysts predicted feisty GAF Chairman Samuel Heyman will
stage a tough campaign to gain control of Borg-Warner so he can
add its profitable plastics and chemical business to GAF.
"It seems from at least their dealing with (raider Irwin)
Jacobs that they don't want to be taken over. The question is
now do they acquiesce to GAF. I think instinctively, they want
to remain independent," said Dudley Heer of Duff and Phelps.
Borg-Warner has been under siege by takeover speculation
for almost a year. Last week, Jacobs' investment vehicle,
Minstar Inc, and an investor group sold its 10.1 mln
Borg-Warner shares. The same day, GAF Corp raised its stake by
9.1 mln shares to 19.9 pct of the outstanding.
Jacobs was interested in buying the company, but took no
steps toward a transaction.
"Their (Borg-Warner) policy has been to stonewall them for
the last nine months. It's been one of the dullest corporate
battles I've seen," said one analyst.
The battle, however, has heated up, and the range of
breakup values on Wall Street span from the current market
price to almost 60 dlrs per share. Most analysts said they
think a price in the low 50s would be appropriate.
Arbitragers speculate that GAF will not give up easily on
its 3.16 billion dlr offer to buy the balance of Borg-Warner.
Analysts who know GAF predict Heyman will either end up
with Borg-Warner or enrich his chemicals and building materials
company in some other way. Heyman two years ago attempted an
unsuccessful takeover of Union Carbide Corp, but GAF benefited
from that company's restructuring.
"Borg Warner can't quibble that it's not a legitimate
offer. It seems to me the short of it is Borg Warner is kind of
between a rock and a hard place. They either have to accept a
46 dlr proposal or perhaps work a deal where it's sweetened. I
personally think the company is (worth) around 55 dlrs per
share," said Pershing analyst Richard Henderson.
Henderson also speculated the company might attempt a
restructuring such as the one carried out by Goodyear Tire and
Rubber Co last year when it was being courted by Sir James
Goldsmith. The company bought back the financier's stock and
carried out a wider share repurchase.
Arbitragers, however, said they do not believe Heyman is
seeking "greenmail," or the repurchase of his stock by the
company at a premium.
Analysts noted that Heyman seems to have no problems with
financing the transaction.
Previously associated with "junk bond" experts, Drexel
Burnham Lambert Inc, GAf said it would finance its Borg-Warner
takeover with bank financing. GAF said it would make a tender
offer following a merger agreement approved by the Borg-WArner
board and conditioned on the board's recommendation of the
tender offer and merger.
Heyman said in a letter to Borg-Warner that he expects a
merger would provide job security for Borg-Warner employees
since the two companies businesses overlap. Analysts, however,
believe Heyman would sell off assets he did not want to repay
debt from the transaction.
GAF's stock rose 1-5/8 today, to 48-5/8.
"I believe, obviously, if GAF takes over Borg-Warner at the
level it is proposing it would enhance GAF share values
substantially," said Oppenheimer analyst Charles Rose.
He said at 46 dlrs per share, Heyman's average cost for the
company's stock would be 44 dlrs per share based on GAF's
current holdings.
Rose said the Borg-Warner plastics and chemical business,
which makes thermo-plastics is the asset attracting Heyman.
Analysts said it accounts for a third of Borg's earnings.
The plastics are used in telephone equipment, office
equipment and appliances. "Borg has half the market in the U.S.
and is the leading technical player and the leading innovator,"
Rose said. Its competitors are Dow Chemical Co
Computer Network Technology Corp
(CNT) said that
Wilson Brothers said it completed the sale of most of the assets of its Enro Shirt Co Inc, Enro-At-Ease Inc and Foxcroft Shirt Ltd subsidiaries to Enro Acquisition Corp for about 24.2 mln dlrs, half in cash and half in subordinated promissory notes. Enro Acquisition is a newly formed corporation and owns Ramar Intercapital Corp and Wilson's chief operating officer, V. Jerome Kaplan, and other managers. Enro Acquisition also assumed most of the units' liabilities including a 6.2 mln dlrs term loan. Completion of the sale and recent sales of substantially all the assets of the company's 50 pct owned affiliate GMW Industries INc, are expected to result in a net gain of about nine mln dlrs in the first quarter of 1987. For the year ago first quarter, Wilson reported net income of 28,000 dlrs, including a 103,000 dlrs credit, on sales of 15.8 mln dlrs.
Treasury Secretary James Baker told the House Appropriations Committee the United States is still pressing newly industrialized south Asian nations that have tied their currencies to the dollar to let those currencies strengthen against the U.S. currency. "We have seen some strengthening of those currencies (but) not as much as we would like," he said. "We have been somewhat disappointed in the results so far, but we intend to continue these discussions," he said.
Sterling Drug Inc said it sold the assets of its subsidiary Greene Dental Products Inc to Rinn Corp, of Elgin, Ill. The cash purchase price was not disclosed. Greene produces and sells dental X-ray tabs, mount products and record systems.
Shr loss 92 cts vs profit one ct Net loss 2,487,439 vs profit 48,709 Revs 1,788,141 vs 4,167,070 Year Shr loss 1.50 dlrs vs profit 48 cts Net loss 4,073,724 vs profit 1,309,412 Revs 8,193,455 vs 15.7 mln NOTE: 1986 year net includes 3,095,305 dlr writedown of oil properties and reserves.
The Treasury said it would expand on May 1 its computerized program for separate trading of registered interest and principal securities, called STRIPS, to permit reconstituting of securities. Reconstitution is the term used to describe reassembling a treasury security into a book-entry security after it has been separated into its principal and interest components. In order to reconstitute a treasury security, a deposit-taking institution will have to obtain the appropriate principal component and all unmatured interest components, the Treasury said. The Federal Reserve Bank of New York will act as the central processing site for reconstituting securities, the Treasury said. It said reconstitution would enhance the flexibility, liquidity and marketability of treasury securities.
Shr loss 9.31 dlrs vs loss 1.62 dlrs Net loss 16.2 mln vs loss 2,770,243 Revs 99.4 mln vs 96.2 mln
Feb One end Oper shr 89 cts vs 1.31 dlrs Oper net 3,348,000 vs 4,885,000 Sales 126.8 mln vs 120.1 mln Year Oper shr 1.67 dlrs vs 2.15 dlrs Oper net 6,302,000 vs 8,013,000 Sales 380.9 mln vs 352.1 mln NOTE: Prior year net both periods excludes gain 1,998,000 dlrs from reversion of overfunded pension plans. Corrects current year operating net.
Imperial Oil Ltd, 70 pct-owned by Exxon
Corp
The U.S. Agriculture Department said it has extended until April 17 the date by which Agricultural Stabilization and Conservation county offices must determine eligibility of individuals or other entities for payments under 1987 farm programs. Jerome Sitter, director of ASCS's Cotton, Grain and Rice Price Support Division, said the decision meant farmers have until April 17 to file a farm operating plan indicating how many persons would be involved in their farming operations. Earlier this year USDA extended the deadline to April 1 from March 1, Sitter said. ASCA Administrator Milton Hertz said in a statement that the extension was necessary because of heavy workloads at county ASCS offices. Hertz said ASCS county officials "have had to make a large number of eligibility determinations for individuals and other entities, such as corporations and partnerships, in preparation for imposing the 50,000-dlr-per-entity cap." "These offices already had a very heavy workload due to the large number of applications for both the 1987 farm programs and the Conservation Reserve Program," Hertz said.
Shr loss 9.31 dlrs vs loss 1.62 dlrs Net loss 16.2 mln vs loss 2.8 mln Revs 99.4 mln vs 96.5 mln NOTE: 1986 includes loss of 3.9 mln dlrs from restructuring. NOTE: loss 1986 includes 3.9 mln dlrs for restructuring costs associated with disposal of property. Loss also includes the sale-at-a-loss of the company's aircraft.
The U.S. Agriculture Department said it had accepted a bid for an export bonus to cover a sale of durum wheat to Algeria. USDA General Sales Manager Melvin Sims said the Commodity Credit Corp accepted one bid from Cam USA Inc on a sale of 18,000 tonnes of durum wheat. Sims said the bonus was 42.44 dlrs per tonne and shipment was scheduled for June 20-30, 1987. An additional 246,000 tonnes of durum wheat are still available to Algeria under the export enhancement program.
The Commodity Credit Corporation (CCC) has switched 10 mln dlrs in credit guarantees to Mexico to cover purchases of U.S. wheat, the U.S. Agriculture Department said. The credit guarantees were previously earmarked for sales of U.S. dry edible beans and rice, it said. The action reduces the guarantee lines previously authorized of dry edible beans to by five mln dlrs to 45 mln dlrs and for rice from five mln to zero and increases coverage for wheat sales from five mln to 15 mln dlrs.
The Commodity Credit Corporation (CCC) switched five mln dlrs in credit guarantees to Ecuador to provide for more sales of U.S. vegetable oil, the U.S. Agriculture Department said. The credit guarantees were previously earmarked for sales of U.S. cotton, feedgrains and wheat. The action reduces the guarantee lines previously authorized for sales of cotton from 1.5 mln dlrs to 500,000 dlrs, for feedgrains from four mln to two mln and for wheat from 45 mln dlrs to 43 mln dlrs and increases coverage for vegetable oil sales from two mln to seven mln dlrs, the department said.
Philadelphia Suburban Corp said it acquired Mentor Systems Inc, a Lexington, Ky., computer software company, for common stock. Detailed terms were not disclosed. Mentor specializes in public sector accounting systems. It has 73 employees at its Lexington facility, four branch offices in the Midwest and one in New York.
Honduras will tender April 2 for U.S. and non-U.S. flag vessels to import 19,369 tonnes of wheat in bulk, an agent for the country said. The agent said Honduras is seeking vessels to deliver 7,369 tonnes during a period that includes laydays of April 15-30, and 12,000 tonnes with laydays of May 15-30. Offers are due no later than 1200 hrs EST, April 2, and will remain valid through the close of business the following day, the agent said.
Shr eight cts vs 30 cts Net 1,100,000 vs 3,900,000 Revs 14.9 mln vs 20.7 mln
First City Bancorp of Texas, which lost a record 402 mln dlrs in 1986, said in its annual report it expected operating losses to continue "for the foreseeable future" as it continues to search for additional capital or a merger partner. The Houston-based bank's 1986 financial statements received a qualified opinion from its auditors, Arthur Andersen and Co. The auditors said their opinion was subject to First City eventually obtaining additional capital. "The company believes that in order to address its long-term needs and return to a satisfactory level of operations, it will ultimately need several hundred million dollars of additional capital, or a combination with a more strongly capitalized entity," First City said in a note to its financial statements included in the annual report. "Management believes that sufficient resources should be available to cover interim capital concerns while additional capital is being sought," the bank said. To raise cash in the near-term, First City said it may sell or mortgage non-strategic assets, recover excess contributions to its pension plan and obtain special dividends from some of its member banks. "The losses for 1987 are expected to be substantially less than in 1986," First City chairman J.A. Elkins said in a letter included in the annual report. "However, the ultimate return to satisfactory operating conditions is dependent on the successful resolution of the related problems of credit quality, funding and the eventual need for substantial additional capital." First City said it anticipated that certain covenants of a credit agreement with unaffiliated banks requiring most of First City's excess cash to be applied to debt repayments would be modified by the end of the first quarter in order to avoid default. The banks agreed to similar amendments to the covenants last year and First City has reduced its borrowings from 120 mln dlrs at 1986 yearend to 68.5 mln dlrs in recent weeks. Although the parent company's capital adequacy ratios exceeded regulatory minimum requirements at the end of 1986, First City said its two largest subsidiaries did not. First City National Bank of Houston had a primary capital ratio of 5.34 pct and First City Bank of Dallas had a 4.75 pct ratio. Hard-hit by the collapse in oil and Texas real estate prices, First City's net loan chargeoffs totaled 366 mln dlrs last year, up from 261 mln dlrs in 1985. The bank more than doubled its loan loss provision to 497 mln dlrs at the end of 1986. First City said chargeoffs and paydowns reduced its total energy loan portfolio by 32 pct during 1986, to 1.4 billion dlrs at year-end, adding that future energy chargeoffs "should be more modest." The amount represented 15 pct of First City's total loans. In real estate, First City said its nonperforming assets nearly doubled last year to 347 mln dlrs at year-end. Chargeoffs of real estate loans rose to 32 mln dlrs, or nine pct of total loan chargeoffs, and the bank said the amount could go higher. "The company still faces uncertainties in the real estate market and anticipates further deterioration in the pportfolio so long as the regional recession persists," First City said. "Because the carrying value of many of these loans is collateral dependent, a further decline in the overall value of the collateral base could cause an increase in the level of real estate-related chargeoffs."
Qtly div 7.5 cts vs 7.5 cts prior Pay May 19 Record April 24
The following proposed securities
offerings were filed recently with the Securities and Exchange
Commission:
Mississippi Power Co, subsidiary of Southern Co
Commerzbank AG
The economy will grow by an average rate of 2.2 pct a year in real terms between now and the end of 1991, Westdeutsche Landesbank Girozentrale (WestLB) said in an annual report. A year ago WestLB had forecast average growth of just under three pct for 1986-1990. The 1987 report said gross national product would only expand a real 1.7 pct this year -- below previous expectations -- because of weaker exports. Growth rates will pick up later, however, producing a 2.2 pct increase on average for the five-year period. MORE
The Bank of England said it had provided the money market with early assistance of 689 mln stg in response to an early round of bill offers from the discount houses. This compares with the Bank's estimate that the system would face a shortage of around 1.2 billion stg today. The central bank made outright purchases of bank bills comprising 347 mln stg in band one at 9-7/8 pct, 207 mln stg in band two at 9-13/16 pct and 135 mln stg in band three at 9-3/4 pct.
The Rural Banking and Finance Corporation of New Zealand is issuing a zero coupon eurobond with a total redemption amount of 19 billion yen, lead manager Nomura International Ltd said. The issue matures on April 15, 1992 and is priced at 81.22 pct. The deal is being sold through the Bank of New Zealand and is guaranteed by New Zealand. The selling concession is 85 basis points while management pays 70 basis points. The payment date is April 15 while listing will be in Luxembourg.
Grain traders said they were still awaiting results of yesterday's U.K. Intervention feed wheat tender for the home market. The market sought to buy 340,000 tonnes, more than double the remaining 150,000 tonnes available under the current tender. However, some of the tonnage included duplicate bids for supplies in the same stores. Since the tenders started last July 861,000 tonnes of British feed wheat have been sold back to the home market.
The public offer by Glaverbel SA,
Europe's third biggest glassmaker, of 755,000 shares was more
than 100 times oversubscribed, a statement by banks and share
dealers responsible for the issue said.
Glaverbel offered the shares at 1,850 francs in an
operation under which its parent company, Asahi Glass Ltd
A total of 126,031 tonnes of U.K. Intervention feed wheat was sold to the home market at this week's tender, provisional results show, the Home Grown Cereals Authority (HGCA), said. Actual prices were not reported but the wheat was sold at, or above, the March intervention price of 119.17 stg per tonne. Grain traders sought to buy about 340,000 tonnes.
The Sri Lankan cabinet approved recommendations to upgrade the quality of coconut fibre products, the government said. It said the recommendations also suggested that encouragement be given for the manufacture of value-added products from coconut fibre and a market development programme be launched for traditional and value-added products. It also suggested the setting up of a marketing mission on coconut fibre to be sent this month to principal target markets. Sri Lanka is the world's second largest exporter of dessicated coconut after the Philippines.
Year to Dec 31
Shr profit 63.6p vs loss 8.7p
Final div 24p making 34p vs total 28.75p
Pretax profit 143.8 mln stg vs 3.5 mln
General underwriting loss on short-term business 79.8 vs
154.3
NOTE - Company's full name is Guardian Royal Assuance Plc
The Bank of England said it has revised its estimate of today's shortfall to around 1.25 billion stg from 1.3 billion before taking account of 775 mln stg morning assistance.
Citadel Holding Corp said it
has settled its litigation with Great Western Financial corp.
The company said under the terms, Great Western has agreed
not to acquire or seek to acquire any voting securities of
Citadel or propose a merger with Citadel for five years, and
Citadel has paid Great Western six mln dlrs.
Citadel said it is continuing to pursue its claims against
Salomon Inc
Antonovich Inc said an initial offering of 750,000 Class A common shares is under way at 9.625 dlrs each through underwriters led by Evans and Co Inc. It said it is selling 500,000 shares and shareholders the rest.
Shr 40 cts vs 36 cts Net 2,309,000 vs 2,076,000 Revs 28.2 mln vs 30.4 mln
French cereals exports through Rouen port rose to 751,563 tonnes between March 1 and March 25 from 603,413 tonnes in the same 1986 period, freight sources said. The Soviet Union took 263,051 tonnes of wheat and barley, Saudi Arabia 90,944 tonnes barley, China 87,259 wheat, Algeria 64,896 wheat, Bangladesh 30,000 wheat, Morocco 27,500 maize, Greece 26,700 wheat and barley, Spain 25,124 wheat, Poland 24,683 wheat, Brazil 24,082 wheat, Italy 21,659 wheat, Cyprus 20,700 wheat and maize, Israel 16,500 maize and the U.K. 8,797 tonnes wheat. Six ships are loading 120,000 tonnes of wheat, the sources said. They include 30,000 tonnes for China, 31,000 for the Soviet Union, 25,000 for Turkey, and 35,000 for Italy. Another ship is loading 17,000 tonnes of colza for the Soviet Union. Another 12 ships should arrive to load 344,000 tonnes of cereals by the end of the week. Six are to load 186,000 tonnes of wheat for the Soviet Union. Two will load 60,000 tonnes of barley for Saudi Arabia, one 28,000 tonnes of wheat for China, two 25,000 tonnes of wheat each for Algeria and Turkey and one 20,000 tonnes of wheat for Italy. Another is expected to load 20,000 tonnes of colza for the Soviet Union. Flour exports through Rouen rose to 23,457 tonnes in the 25 day period from 5,500 in the equivalent 1986 period, the sources said. Sudan took 19,327 tonnes and west coast Africa 4,130. Four ships are currently loading 32,000 tonnes, including 24,000 for Egypt, 6,000 for Tanzania and 2,000 for Mauritania. A ship is expected later this week to load 12,000 tonnes for China.
The United Nations Food and Agriculture Organization, FAO, said it approved emergency food aid worth more than 14.3 mln dlrs for drought victims in Ethiopia. The aid will include 30,000 tonnes of wheat and 1,200 tonnes of vegetable oil for farmers in the Wollo and Illubabor regions. FAO said it has also approved more than 1.4 mln dlrs of food aid for 8,000 families in Sri Lanka. In addition, 583,225 dlrs of aid will be made available to Malawi to feed 96,700 people displaced from Mozambique and a further 340,200 dlrs for cyclone victims in Vanuatu in the South Pacific.
Japan has reiterated it has no plans to bow to pressure to give foreign telecommunications companies a major role in a planned new firm. An official at the Ministry of Post and Telecommunications told Reuters the ministry's position is unchanged despite mounting pressure from London and Washington. He declined comment on local press reports which said the ministry would back a plan aimed at cooling British anger on the issue. The press reports said Fumio Watanabe, head of the Federation of Economic Organisations, would propose that Britain's Cable and Wireless Plc be given a five pct stake in a telecommunications firm and a seat on the board. Watanabe was unavailable for comment. He has the tacit backing of the government in his efforts to merge two telecommunications companies into one competitor to Kokusai Denwa Denshin (KDD), which has a monopoly on international telephone services here, industry analysts said. In London yesterday, a Cable and Wireless spokesman said the latest reported proposals are unacceptable. Cable and Wireless has a 20 pct stake in one of the two companies involved in the mooted merger. British Prime Minister Margaret Thatcher has personally taken up the company's cause, charging that Japan is discriminating against foreigners. The United States also has vented its anger at what it sees as Japanese attempts to limit foreign participation. Watanabe originally proposed Cable and Wireless be given up to 3.0 pct of the merged firm. The press reports said this could be raised to 5.0 pct, equal to the largest share of any Japanese firm. Britain opposes the proposed merger.
Oper shr loss 2.27 dlrs vs loss 1.62 dlrs Oper net loss 12.7 mln vs loss 12.1 mln Revs 60.0 mln vs 26.2 mln Year Oper shr loss 5.16 dlrs vs loss 1.56 dlrs dOper net loss 29.0 mln vs loss 12.4 mln Revs 139.3 mln vs 110.0 mln NOTE: 1985 operating losses exclude profits of 19.5 mln dlrs, or 2.64 dlrs a share, in quarter and 20.6 mln dlrs, or 2.74 dlrs a share, in year from discontinued operations 1985 loss in both periods includes pre-tax charge of 16.9 mln dlrs on write down of oil properties. 1986 year loss includes pre-tax charge of 23.0 mln dlrs for write down of oil and gas properties.
Oper shr loss 19 cts vs profit one ct Oper net loss 1,495,000 vs profit 50,000 Revs 52.3 mln vs 48.9 mln NOTE: Earnings exclude gains from utilization of tax loss carryforwards of 82,000 dlrs, or one ct a share vs 300,000 dlrs, or three cts a share
Qtly div 30 cts vs 30 cts prior Pay April 30 Record April 15
Conrac Corp said its board has
rejected MArk IV Industries Inc's tender offer for all Conract
shares at 25 dlrs each, and no Conract director of officer
plans to tender any shares.
The company said financial advisor
Groupement pour le financement des Ouvrages de Batiment, Travaux Publics et activites annexes (GOBTP) plans to launch two variable-rate domestic bonds totalling 700 mln francs, lead managers Credit Commercial de France (CCF) and Caisse Centrale des Banques Populaires (CCBP) said. The first 500 mln franc 12-year bond, led by CCF, will be issued at 99 pct with interest based on the annualised money market rate (TAM) and payable on April 21 every year with the first coupon paid next year. The second 200 mln franc 12-year bond, led by CCBP, will be issued at 99 pct with interest also based on TAM with the same coupon payment date. Both bonds will in principle be redeemable at par on April 21, 1999.
First National Bank in Mount Clemens, Mich., said it is seeking final regulatory approval to form First National Bank Corp, a bank holding company, following shareholder approval Tuesday. It said formation of First National Bank Corp will result in a one-for-one stock exchange for shareholders of First National Bank in Mount Clemens. First National Bank Corp is the parent company of First National Bank in Mount Clemens and Bankers Life Insurance Co, a newly created insurance subsidiary. At the shareholders' meeting, the bank also reported 1986 First National Bank earnings of 2,008,000 dlrs, or 2.22 dlrs a share, up 11 pct from 1985's earnings of 1,811,000 dlrs, or 2.00 dlrs a share. Bank assets climbed to 276 mln dlrs from 240 mln dlrs in 1985, it said.
The American Stock Exchange said it today opened put and call options trading in the common stock of Harcourt Brace Jovanovice Inc. The exchange said Harcourt Brace is a replacement selection for LTV Corp. The Amex said the initial expiration months for HBJ options are April, May, July and October.
Autospa Corp said it has signed an agreement to purchase 2,400,000 shares of eight pct convertible preferred stock of Cardis Corp -- representing voting control -- for 15 mln dlrs. The company said the preferred purchase will be financed by an investment group led by Autospa. It said it will also receive from Cardis five-year options to buy 2,400,000 Cardis common shares at 6.25 to seven dlrs each, depending on the time of exercise, and warrants to purchase about 3,200,000 shares at 6.60 to 7.60 dlrs each. The company said the exercise of all options and warrants by Autospa would result in a tital investment of 50 to 55 mln dlrs. Execution of a definitive agreement is expected by April 22, it said, subject to the completion of financing arrangements, and closing is expected by May 15.
Shr loss 40 cts vs loss 1.30 dlrs Net loss 3,619,000 vs loss 11.3 mln Revs 24.1 mln vs 34.1 mln Year Shr loss 4.36 dlrs vs loss 2.09 dlrs Net loss 38.7 mln vs loss 16.8 mln Revs 104.6 mln vs 133.9 mln
Shr 51 cts vs 36 cts Net 2,543,285 vs 1,686,559 Sales 153.2 mln vs 120.7 mln
Speculation the United States will offer subsidized wheat to the Soviet Union appears to have reached a new level of intensity in the run-up to Secretary of State George Shultz' visit later this month to Moscow. Rumors of an impending deal have coursed through wheat markets since officials from the two countries held their customary, semi-annual grain talks in February. Moscow's decision at that time to reenter the U.S. corn market strengthened the perception of warming farm trade prospects. Shultz is set to arrive in Moscow April 13. Shultz' statement two weeks ago that he would not stand in the way of a wheat subsidy offer under the Export Enhancement Program, EEP, coupled with the announcement of his visit to Moscow, was interpreted by many grain trade representatives here as a clear signal that the Reagan administration was preparing an offer. Administration officials -- in and out of the U.S. Agriculture Department -- have been extremely tight-lipped about the prospects of a subsidy offer. But USDA officials for the most part have abandoned the contention the proposal is dormant, suggesting that an offer, while not a "done deal," is a live possibility. Prominent U.S. grain trade representatives -- many of whom asked not to be identified -- continue to maintain that an offer to subsidize four mln tonnes of wheat is imminent. Others, who one month ago claimed a deal was not possible, are saying they would not rule one out. Rep. Pat Roberts, R-Kan., yesterday went so far as to predict a subsidy offer would be made within the next ten days to two weeks. Aides to Roberts said he had spoken to Republican leaders who had been in contact with administration officials. Richard Fritz, director of international marketing at U.S. Wheat Associates, said he was confident an export enhancement offer would be made by the middle of this month. Fritz also said he thought the value of the bonus would end up being close to the offer Washington made Peking earlier this year when USDA approved subsidies to China of around 36 dlrs per tonne on one mln tonnes of wheat. Some grain trade representatives say a four-mln-tonne wheat subsidy offer might help stimulate more Soviet purchases of U.S. corn and open the door to U.S. sales of soybeans. As ever, one of the crucial sticking points in a wheat deal would appear to be price. Last summer the administration took the controversial step of offering the Soviets subsidized wheat -- but were embarrassed when Moscow spurned the proposal on the grounds that the 15-dlr-per-tonne subsidy still left U.S. wheat prices far above world market prices. The administration's decision to set the subsidy level up front instead of accepting bids from exporters appeared to be a means of controlling the price while attempting to dampen criticism, grain trade sources said. Nonetheless, the pricing procedure did not prevent Shultz from saying the Soviets were "chortling" because Washington was offering Soviet housewives cheaper grain than that available to U.S. housewives. The conventional wisdom among grain trade representatives here is that a general warming of relations between the two countries since last summer, combined with continued hard times in the U.S. grain belt, would favor a subsidy offer. In addition, the USSR has made it clear it would consider buying U.S. wheat if it were priced more competitively. However, observers have not forgotten the circumstances surrounding the administration's announcement of the wheat subsidy offer last summer. Up until the time of the announcment, congressional and industry leaders were led to believe the White House had decided to expand the Export Enhancement Program to include not only the Soviets, but also a much broader list of countries. Instead, the administration scaled back the offer to include only the Soviets. That last-minute change of heart adds a measure of uncertainty even to the predictions of those most convinced that the administration will not now pass up the opportunity to sell four mln tonnes of wheat to the Soviet Union.
Speculation the United States will offer subsidized wheat to the Soviet Union appears to have reached a new level of intensity in the run-up to Secretary of State George Shultz' visit later this month to Moscow. Rumors of an impending deal have coursed through wheat markets since officials from the two countries held their customary, semi-annual grain talks in February. Moscow's decision at that time to reenter the U.S. corn market strengthened the perception of warming farm trade prospects. Shultz is set to arrive in Moscow April 13.
Shr loss 34 cts vs loss 2.14 dlrs Net loss 2,275,000 vs loss 9,560,000 Revs 17.0 mln vs 19.9 mln Year Shr loss 49 cts vs loss 2.11 dlrs Net loss 2,661,000 vs loss 9,283,000 Revs 73.5 mln vs 93.6 mln NOTE: Results have been restated to reflects equity investment in WellTech Inc for one month ended Dec 31, 1986 and its investment in American Well Servicing for the 11 months ended Nov 30, 1986 and full year 1985. 1986 and 1985 net include loss of 3,512,000 dlrs and 5,944,000 dlrs, respectively, for equity in WellTech and predecessor operations.
The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY NEW RATE OLD RATE MATURITY 30-123 days 5.00 pct 5.00 pct 30-123 days 124-150 days 5.90 pct 5.93 pct 124-150 days 151-349 days 5.00 pct 5.00 pct 151-349 days 350-360 days 5.96 pct 5.98 pct 350-360 days
MacAndrews and Forbes Group Inc said it began an 18.50-dlr-a-share cash offer for all common stock of Revlon Group Inc it does not already own. The offer, which is being made by a wholly owned subsidiary, Revmac Acquisition Corp, is subject to financing and at least 28.5 mln shares being tendered, the company said. MacAndrews and Forbes, wholly owned by Ronald Perelman, chairman of Revlon Group, held about 31.8 pct of the voting power of Revlon as of March 27, a spokesman said. The stake includes about 15.1 pct of Revlon common and 95 pct of its series A preferred stock, he said. More
United Cities Gas Co said it placed privately on March 18 20 mln dlrs of 8.69 pct first mortgage bonds. Proceeds will be used to retire short-term debt and fund the company's current construction program, United Cities said. The company said more than 30 lending institutions participated in the bidding for the bonds and that 25 pct of the issue was placed with the U.S. unit of a Canadian firm.
Shr seven cts vs 10 cts Net 127,000 vs 168,100 Revs 2,807,400 vs 3,042,900
The National Association of Securities Dealers Inc. denied Kirk Knapp's application to become a registered member of the firm. NASD's board of governors said it denied the application of Knapp to become registered with K.A. Knapp and Co, located in Grand Rapids, Mich. The board said it based its decision on two statutory disqualifications. In the first case, the board said it found Knapp failed to maintain rquired net capital, filed inaccurate Focus Part 1 reports and inaccurately calculated the amount required to be on deposit in the Special Reserve Account. The second case involved Knapp being enjoined from violations of sections of the Securities Exchange Act, the NASD said.
Standard and Poor's Corp said it raised to B from CCC 268.9 mln dlrs of equipment trust certificates of Texas Air Corp's Eastern Air Lines Inc unit. S and P cited its new policy on rating secured airline debt with special protection under Section 1110 of the Bankruptcy Code. But the agency cautioned this did not reflect a change in the unit's underlying credit strength. The certificates and 225.9 mln dlrs of CC subordinated debt remain on S/P creditwatch with positive implications. Eastern lost 130.8 mln dlrs in 1986 because of competition and customer uncertainty over its future, S and P noted.
McDonnell Douglas Corp
First Bank Minneaplois and First Bank Saint Paul, both units of First Bank Systems Inc, said they raised their reference rates to 7-3/4 pct from 7-1/2 pct.
Webcor Electronics Inc said
its principal creditor, its bank, has demanded payment of all
Webcor obligations to it.
Webcor said as previously announced it has failed to make
payments to the bank and is also in technical default of loan
agreement covenants.
It said to date it has been unable to restructure its
obligations to the bank and is now evaluating its options.
Webcor said the
Shr loss 2.65 dlrs vs loss 2.31 dlrs Net loss 14.3 mln vs loss 12.5 mln Revs 2,887,000 vs 5,321,000 Year Shr loss 4.38 dlrs vs loss 2.50 dlrs Net loss 23.7 mln vs loss 13.5 mln Revs 13.2 mln vs 22.4 mln NOTE: 1986 net includes oil and natural gas writedowns of 12.1 mln dlrs in quarter and 19.0 mln dlrs in year.
BankAmerica Corp said it completed
the sale of its Consumer Trust Services division to Well Fargo
and Co
Rio Grande/Azores and Leixoes 26,000 mt hss 14 dlrs basis one to two 4,000/1,500 Azores and 3,500 Leixoes 25/4-5/5. Paranagua/one-two ports Spanish Med 35,000 mt hss 11.50 dlrs basis one to one 10 days all purposes 20-30/4. USG/Taiwan 54,000 mt hss 10,000 shex/4,000 shex 20/4-5/5. USG/ARA-Ghent option Seaforth 40,000/45,000 long tons hss 10 days all purposes 9-15/4 try later. Dieppe/one-two ports Italian Adriatic 9,500/11,000 mt bulk wheat 3,000/2,000 6-12/4. St Lawrence/one-three ports Marseilles-Manfredonia range 20,000/35,000 mt bulk wheat 5,000/222,500 10-15/4. Chimbote/Kaohsiung 9,500 mt bulk/bagged fishmeal 250 ph/200 ph 20/4-5/5. Immingham or Foynes/Red Sea 25,000 mt bulk barley 4,000/3,000 10-15/4 alternatively try t/c. USG/Maracaibo 10,000 mt wheat (three grades) three days/1,000 1-15/4.
The Federal Reserve bought about 550 mln dlrs of U.S. Treasury bills for a customer, a spokeswoman said. She said the Fed bought bills maturing from May through September 24 for regular delivery tomorrow. Federal funds were trading at 6-3/16 pct when the Fed announced the operation.
U.S. farmers who reorganize their operations to circumvent a cap on federal payments could add 2.3 billion dlrs to the cost of the government's agricultural programs by 1989, the General Accounting Office, GAO, said. "We estimate that should the trend in farm reorganizations continue, reorganizations since 1984 could be adding almost 900 mln dlrs annually to program costs by 1989," GAO Senior Associate Director Brian Crowley said. "Cumulative costs for the six-year period, 1984 to 1989, could approach 2.3 billion dlrs," he said. Between 1984 and 1986, reorganizations added almost 9,000 new persons to U.S. Agriculture Department payment rolls, Crowley told the House Agriculture Subcommittee on Wheat, Soybeans and Feedgrains.
Shr 54 cts vs 40 cts Net 11,105,000 vs 8,310,000 Sales 282.7 mln vs 290.3 mln Avg shrs 20,599,000 vs 20,760,000 NOTE: Per-share results restated for May 1986 three-for-two stock split
Argentine subproducts shipments during January/December 1986 totalled 5,618,315 tonnes, against 4,815,188 tonnes in the same period of 1985, the Argentine Grain Board said. Breakdown was as follows: cotton 26,992 (41,933), sunflower 1,403,230 (1,190,862), linseed 261,600 (309,191), groundnutseed 23,595 (22,809), soybean 3,275,225 (2,415,492), bran/pollards wheat 606,352 (659,271), fiber cotton 3,256 (107,752), wheat flour 18,065 (67,878), rape nil (nil), the board added. Shipments during December 1986 amounted to 418,755 tonnes, against 257,844 tonnes in the same month of 1985. The breakdown, was as follows, in tonnes: Cotton 3,002 (6,234), sunflower 86,612 (38,347), linseed 23,954 (38,290), groundnutseed nil (nil), soybean 264,650 (104,571), bran/polards wheat 37,724 (49,946), fiber cotton 987 (2,121), wheat flour 1,826 (18,335), rapeseed nil (nil), the board said. The ten principal destinations during January/December 1986, with comparative figures for the same period of 1985 in brackets, were as follows, in tonnes: Holland 2,444,260 (2,234,049), Belgium 546,423 (595,635), Italy 430,029 (338,766), Czechoslovakia 365,897 (236,836), Cuba 253,067 (222,842), Iran 250,646 (192,430), West Germany 232,049) (158,491), Bulgaria 207,030 (300,488), Spain and Canary Islands 176,287 (113,751), Corea 163,304 (37,416), the board added.
The United States department of agriculture estimated live poultry slaughter for the week ending April 1 as follows, in thousands - Current Previous Class week week Bro/Fry 92,552 95,563 Lt Fowl 2,840 3,354 Hvy Fowl 651 789 Check Total 96,043 99,706
The Soviet Union would likely be more interested in purchasing new crop wheat than in booking any grain for immediate shipment if offered a subsidy on U.S. wheat, an executive with a major grain export company said. Lower prices and the desire to delay any big purchases until the condition of winter and spring crops is better known make new crop wheat more attractive, said George Hoffman, director of commodity analysis for The Pillsbury Company. "Pillsbury is assuming that they (Soviets) will be offered a subsidy and that it will be a subsidy that they can respond to," Hoffman told Reuters in an interview at an agribusiness education conference here. But if there are too many constraints placed on a subsidy offer, the USSR will take less than an anticipated four mln tonnes, he said. Hoffman said Pillsbury's internal statistics put Soviet Union wheat purchases at only two mln tonnes under a subsidy offer. However, if a subsidy is offered at competitive levels, Moscow would likely buy more, he said. "If we give the Soviets the same deal as the Chinese, I expect they'll take it," said Vernon McMinimy, director of commodity research for A.E. Staley Manufacturing Co. McMinimy told Reuters spring weather and its impact on crops will determine how much wheat Moscow would buy under a subsidy offer. Soviet winter crops did not get off to a good start because of a dry autumn last year, and because of the severe winter "they probably have had more damage due to winter weather than normal," McMinimy said.
Egypt has been authorized to purchase about 125,000 tonnes of U.S. wheat flour under an existing PL 480 agreement, the U.S. Agriculture Department said. It may buy the wheat flour, valued at 23.0 mln dlrs between April 8 and August 31, 1987 and ship it by September 30, the department said.
The Commodity Credit Corporation (CCC) interest rate on loans disbursed in April will carry a six pct ionterest rate, the U.S. Agriculture Department said. The April rate is up from March's 5-7/8 pct and reflects the interest rate charged CCC by the U.S. Treasury, the department said.
Procter and Gamble Co said it appointed the New York ad agency of Wells, Rich, Greene, Inc to handle its Duncan Hines Ready-to-Serve Cookies, effective immediately. The account was previously handled by Grey Advertising Inc of New York. The company declined to discuss the reason for the change in accounts, nor would it dislose its advertising expenditures for the brand. Procter and Gamble said Grey will continue to handle many of its brands, including Crisco, Bold, Joy, Downy and Puritan Oil, Monchel and Jif. Wells, Rich, Green handles Procter's Pringle's, Gain, Safeguard, Spic and Span, Prell, Sure Banner, and Oil of Olay brands.
New Zealand may need about 100,000 tonnes of wheat this year, which would normally come from Australia, but may be from the United States, the U.S. Agriculture Department said. In its report on Export Markets for U.S. Grains, the department said with the deregulation of the New Zealand Wheat Board, which normally imports wheat from Australia, there is the possibility of wheat purchases from the united states since the shipping cost between New Zealand and the Eastern Coast of Australia and the West Coast of the United States are about equal.
AMR Corp's American Airlines and
Citibank are expected to announce a joint marketing program at
a press conference tomorrow, analysts said.
The program will probably allow consumers using a credit
card issued by Citibank to pay for flights on American and earn
frequent flyer miles, they said.
"It's an incentive to use the card and it potentially
builds traffic for the carrier," said one analyst, who asked
not to be named.
One analyst noted that Texas Air Corp's
After an already steep fall in the past week, U.S. interest rate futures may be in for further declines in the near term, financial analysts said. However, some analysts said recent sharp losses in bond futures have left the bond market somewhat oversold, and the contracts on long-term debt could stage a recovery before resuming their decline. Key to the near-term direction of futures will be the course of the dollar, they said. "As the dollar goes, so goes the bond market," said Dean Witter analyst Karen Gibbs. The recent decline in the dollar, which hit a 40-year low against the Japanese yen Monday, was reversed Wednesday when several large U.S. money center banks unexpectedly raised their prime lending rates by a quarter point, to 7-3/4 pct. "Even though the prime rate cut was good for the dollar, foreign exchange traders are not convinced the dollar decline is over," Gibbs said. The dollar decline was key in recent weakness in debt futures as it rekindled concern about a pickup in inflation. Indeed, the falling dollar may have been a key topic at the meeting of the Federal Reserve's policy making arm, the Federal Open Market Committee, this week, analysts said. "To the Fed, the combination of a falling dollar, a steepening yield curve, and rising commodity prices look suspiciously like the traces of expectations of accelerating inflation," said Denis Karnosky, analyst at Carroll, McEntee and McGinley Inc. Such expectations could mean that "a shift in policy toward restriction of bank reserves is likely to get very serious consideration," at the FOMC meeting, he said. Any such restriction of reserves will not be a highly visible form of monetary tightening, Karnosky said. Rather, the key to detecting a change will be found in seasonal and adjustment borrowing at the discount window, he said. Borrowings have held near a weekly average of 300 mln dlrs over the past several months, he said. In the meantime, however, "the market looks a bit oversold," said Jim Wysoglad, analyst at Golden Gate Futures. Wysoglad said a recovery from the oversold condition could drive June bonds to a high near 99 before falling back to test chart support near the recent low of 97-13/32. Technician Leslie Keefe of Technical Data Corp of Boston said that the key test for June bonds will be whether the nearby contract holds above chart support at 96-24/32. "All previous selloffs since mid-November have stopped and buyers have surfaced at that level," Keefe said. If that level is broken, and the dollar continues to decline, Keefe said she expects the June bond contract to decline to test support between 92 and 93, the primary uptrend line dating back to 1984.
Shr six cts vs three cts Net 1.7 mln vs 3.1 mln Revs 187.3 mln vs 129.7 mln NOTE:Increase in earnings due to elimination of preferred dividend requirements.
Bangor Hydro-Electric Co said the Maine PUblic Utilities Commission approved changes in rates effective today that will decrease revenues by about 412,000 dlrs or 0.5 pct. The decrease results from changes in the base rates and in the fuel cost adjustment rate charged by the company. Base rates will decrease by 6.25 mln dlrs due largely to its sale in the Seabrook nuclear power project, a reduction in federal income taxes and lower costs of capital. The base rate assumes a rate of return of 11.57 pct, down from 13.1 pct. Offsetting the decrease, however, is an authorization to increase fuel rates by 5.84 mln dlrs, it said.
Western Carolina Savings and Loan Association said the Federal Home Loan Bank Board approved the completion of its conversion to a state chartered stock savings and loan from a state chartered mutual bank. Carolina said 575,000 shares were subscribed for at 10 dlrs per share during its initial offering. It said trading will begin in its stock April eight on NASDAQ under the sumbol WCAR.
The U.S. House Agriculture Committee approved proposals to extend the life of the Export Enhancement Program, EEP, through fiscal 1990 and urged the Reagan administration offer EEP wheat to the Soviet Union. The proposals were approved as amendments to a comprehensive trade bill moving through Congress this year. In addition to the amendments on EEP, the committee approved several proposals which could restrict imports of lamb, casein, sugar-containing products and tobacco. Those amendments affecting imports face an uncertain future because the House Ways and Means Committee, which has overall jurisdiction over trade legislation, will oppose them, Congressional sources said. The effect of the EEP amendments would be to extend the life of the program five years through fiscal 1990 rather than the current three years through fiscal 1988. The amendments, offered by Rep. Dan Glickman, D-Kan., also would increase funding for the program to 2.5 billion dlrs from 1.5 billion now. Furthermore, the committee passed an amendment offered by Rep. Glickman which instructs the U.S. Agriculture Department to value EEP bonus commodities at market value, not acquisition value. Glickman said the change would make the program 30 pct less expensive to operate. The provision on EEP wheat to the Soviet Union, offered by Rep. Bob Smith, R-Ore., does not require the administration make an offer, but urges such action. The committee approved an amendment, offered by Rep. Glenn English, D-Okla., requiring the Secretary of Agriculture to begin discussions with other major grain producing countries aimed at jointly reducing world grain production. Trade Representative Clayton Yeutter yesterday opposed the amendment, saying such commodity agreements do not work. Among the host of amendments to restrict imports approved by the panel, the most significant would require quotas on imports of goods containing more than 25 pct of a bulk farm product that is subject to U.S. quotas. The amendment, offered by Rep. Arlan Stangeland, R-Minn., is aimed primarily at curbing imports from Canada of products containing sugar and foreign foods containing dairy products. It also may affect peanut, cotton and tobacco imports, Committee sources said. Another amendment would place a quota on U.S. imports of casein, a dairy product shipped to the U.S. primarily by New Zealand and Ireland. The panel also voted to apply to lamb imports the same countercyclical import quota law which is operating for U.S. beef imports. Other miscellaneous amendments included: -- Urging the administration consider retaliating against Japan and South Korea if those countries do not remove restrictions on beef imports. -- Boosting the amount of U.S. grain which must be shipped each year under a food aid program called Section 416 to 800,000 tonnes from 500,000 tonnes now. -- Requiring the Agriculture Secretary conduct a study of the Canadian Wheat Board import licensing system for wheat to determine if it is a non-tariff trade barrier. -- Requiring the Agriculture Secretary reimburse the National Corn Growers Association up to 500,000 dlrs for the costs of defending the U.S. feedgrains program against a Canadian countervailing duty case this year. -- Urging the administration oppose the Canadian decision to apply a duty on U.S. corn imports, and a proposal by the European Community to apply a vegetable oils tax. -- USDA conduct a study of the findings of a National Commission on Agricultural Export Policy, which recommended a reorganization of USDA's trade policy apparatus.
General Motors Corp's Hughes Aircraft Co said it named Albert Wheelon as chairman and chief executive officer, succeeding Allen Puckett who retired after more than 38 years with the company. Wheelon has served in key management positions at Hughes since joining in 1966.
LIfetime Corp said Retirement Housing Corp has accepted its previously announced acquisition offer. Retirement will operate autonomously as a separate subsidiary.
Manufacturers Hanover Corp said it placed 1.4 billion dlrs of medium- and long-term loans to Brazilian borrowers on non-accrual as of yesterday, meaning that income will be recorded only when actual cash payments are received. As a result, net income for the first quarter will be reduced by 18 mln dlrs. If Brazil, which suspended interest payments on its term debt on February 20, continues to defer interest payments for the rest of the year, net income for the whole of 1987 would be reduced by a total of 72 mln dlrs. U.S. bank accounting guidelines do not require loans to be placed on nonaccrual unless interest payments are past due 90 days or more. However, Manufacturers Hanover said that, in light of current circumstances, it was more appropriate to record income on its Brazilian loans only when cash payments were received. It added that it believes Brazil will reach agreement with its banks on a debt restructuring and that all interest payments will be received later in 1987. The company earned 102.1 mln dlrs in first-quarter 1986 and 410.7 mln dlrs for the whole of the year.
India's state-owned Oil India Ltd (OIL) said it received a 3.5 billion yen credit under an agreement signed with Dai Ichi Kangyo Bank of Tokyo last week. A statement from OIL said the 10-year loan carries a rate of interest 0.5 pct below Japanese long term prime. The loan, to finance imports of plant, machinery and raw materials, will be repaid in nine equal instalments from the seventh year. The credit is the first foreign commercial loan raised by OIL. It was arranged under a bilateral treaty to avoid double taxation, it said.
An international protocol to severely limit the use of industrial chemicals which are believed to damage the earth's protective ozone layer could be signed this year, officials and scientists here said. "By the end of this year, we should have an international protocol in place we can all be proud of," U.S. Environmental protection agency officer Bill Long told reporters. The chemicals are chiefly chlorofluorocarbons (CFCs) which are used in refrigeration and making foam plastics, solvents and aerosols. The earth's upper ozone layer absorbs most of the harmful ultraviolet rays from the sun. The officials and scientists were meeting in Tokyo, ahead of an international conference on the problem later this month in either Vienna, or Geneva, Long said. Robert Watson, a program manager for atmospheric problems at the U.S. National Aeronautics and Space Administration said a protocol should demand an initial freeze on the use of CFCs by industry. This should be followed by a gradual reduction in CFC volume until no CFC gases are released into the air, he said. The U.S. Has already banned use of use CFCs in aerosols and Japan has asked for voluntary restraint, but both still use CFCs in industrial processes.
The 2,500 tonnes of sugar offered to intervention in the Netherlands has been refused by the intervention board because of wrong packaging, a spokeswoman for the Ministry of Agriculture said. She said the sugar could be offered again to intervention. EC producers have threatened to sell over 800,000 tonnes of sugar to intervention stocks as a protest against EC export licensing policies. Last month Dutch traders said the sugar on offer in the Netherlands was Belgian, but the ministry could not confirm this.
Australia is risking wheat export sales by not providing enough specific quality grades to meet buyer requirements, the Australian Wheat Board (AWB) said. "Many AWB customers are becoming increasingly quality conscious, demanding strict adherence to contractual quality specifications," the board said in a submission to the Royal Commission into Grain Storage, Handling and Transport. "Many of the specifications are more specific than the current categories used in Australia," it said. The commission is trying to identify ways of saving costs and boosting efficiency of the grain handling system. Australia must rely on quality to retain its wheat market share because its competitors are supplying cheaper but lower-quality grades, the AWB submission said. It stressed the need to segregate wheat categories at every stage from receival to shipping. Better industrial relations at grain terminals, more uniform transport systems across the states and extensive stock control were vital to improved marketing, it said. The submission also said Australia's federal system impeded the AWB's role of coordinating and managing the marketing of wheat. The AWB called for an end to physical and legislative constraints at state borders that prevent the efficient transport of grains to other states for shipment. "It is essential that wheat moves by the most economic mode to the nearest efficient port, irrespective of the state in which the wheat is grown or stored," it said. For example, wheat grown in northern New South Wales (NSW) might move more efficiently to Brisbane, in Queensland, than to Sydney or Newcastle in New South Wales, it said. Similarly, southern NSW wheat might better be shipped to Portland or Geelong, in Victoria. Legislation giving state rail authorities a monopoly over grain shipments was one notable impediment, it said. The AWB said the current approach of state-based bulk handling authorities is not essential, although it said it favoured the authorities maintaining at least their current level of control of storage and transport as long as quality was maintained. An appendix on port loading costs showed it cost between 26,500 and 34,700 U.S. Dlrs to load a 50,000-tonne vessel at various Australian ports compared with 21,200 dlrs at Houston and 16,300 at Port Cartier, Quebec, for a 60,000-tonner.
The U.K. Exported 517,600 tonnes of wheat and 315,800 tonnes of barley in the first 25 days of March, the Home Grown Cereals Authority (HGCA) said, quoting provisional Customs and Excise figures. This brought combined wheat and barley exports since the season started on July 1 to 7.60 mln tonnes, substantially up on the 4.02 mln exported in the same 1985/86 period. This season's total comprises 3.94 mln tonnes of wheat and 3.66 mln barley, compared with 1.63 mln and 2.39 mln, respectively, a year ago.
Bank of Zambia general manager Michael Mwape has accused the International Monetary Fund of ignoring social conditions when drawing up its economic reform programmes for African countries. Mwape said in a speech to businessmen in the southern town of Livingstone yesterday that the IMF's approach had caused social and political unrest across the continent. There was widespread rioting and looting in Zambia last December after the government abolished subsidies on refined maize meal in line with IMF recommendations. Mwape said told businessmen "The question which should be asked and answered when designing programmes is who is going to bear the brunt of adjustment ... And what cushion is available to minimise the burden ?" Zambia has had five IMF adjustment programmes since 1976, the last of which was cancelled in February last year, he said. "In spite of these, the economy has shown signs of stress, with no significant improvement in a number of areas," he added. Zambia has just completed a new round of IMF talks on its foreign exchange system and has obtained enough commercial loans to pay off its IMF arrears for 1985 and 1986, paving the way for a new stand-by credit. Zambian politicians have frequently criticised the fund, however, and diplomats say President Kenneth Kaunda faces consistent opposition inside the ruling party's central committee over dealings with the IMF.
France has sold between 50,000 to 100,000 tonnes of wheat flour to China, the Director General of France's Cereal Intervention Board (ONIC) Bernard Vieux said. He gave no further details of the sale, but added French millers were worried about the unfair competition facing French flour due the lack of end-of-season storage premiums for wheat. ONIC raised its estimate of 1986/87 flour exports to 1.70 mln tonnes compared 1.65 mln forecast in March and the 1.87 mln exported in 1985/86.
und Frankfurter Bank (BHF) is raising 30 mln Australian dollars through a five-year bullet eurobond with a 14-1/4 pct coupon and priced at 101-1/4, sole manager BHF said. The bond, for BHF Finance Jersey Ltd, pays annual interest on April 28, and investors pay for the bond on the same day. It will mature on that day in 1992. The bond is guaranteed by the parent. Listing is in Luxembourg. Denominations are 1,000 and 10,000 dlrs. Yield at issue is 13.89 pct. No fees were stated.
Weekly figures published by the Bank of France showed its gross foreign assets rose by about two billion francs last week, when it was reported by banks to have intervened on the foreign exchange markets to support the dollar against the yen. The figures showed its gold, foreign currency and other external assets rose to 415.1 billion francs from 413 billion, mainly reflecting a rise to 116.7 billion from 114.7 billion in foreign exchange holdings.
International Technology corp said it expects to report a loss for the fourth quarter ended March 31 of about 20 cts per share, compared with a year-earlier profit of 11 cts. The company blamed the expected loss on regulatory and permitting issues that limited the full utilization of hazardous waste treatment cites in Califoirnia, continued startup delays for major remediation projects, the writeoff of an investment in a subsidiary and a settlem,ent with the California Attorney General's Office and Department of Health Services. The company said the settlement relates to regulatory violations alleged by the U.S. Environmental Protection Agengy and the California Health Services department at the company's Vine Hill and Panoche treatment facilities in Northern California. It said under the agreement, it will pay the state 2,100,000 dlrs in civil penalties over a two-year period and pay 500,000 dlrs over five years to local medical facilities as part of a community awareness and emergency response program developed by local communities. The expenses will be charged against fourth quarter results, it said. The company said it has agreed as well to make compliance and public safety capital expenditures of about 600,000 dlrs. It said it has now received an operating permit for a new 250,000 cubic yard landfill cell at its Imperial County, Calif., from the Health Services department. The company said the Panoche facility remains closed but is expected to reopen for liquid and sludge receipts in the near future. But it said receipts of solid material, which had accounted for the majority of the revenue at the site, could be restricted until 1988 pending resolution of capacity issues in the Panoche site permit.
Coffee producers belonging to the "Other Milds" group will meet May 4 in Guatemala to discuss the possibility of restoring export quotas, producer delegates told reporters after the closing session of the International Coffee Organization, ICO, executive board meeting. The "Other Milds" group, comprising Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, India, Mexico, Nicaragua, Papua New Guinea and Peru, might consult with Brazil and Colombia on this meeting, but it was not certain whether these two countries would attend, they said. The ICO board meeting ended without moves to restart negotiations on quotas, which broke down last month, producer delegates said. Producers are expected to hold other consultations in the coming months on how to proceed with quota negotiations, but no date for a full producer meeting has been mentioned, they said. The board completed reports on stock verification and the next regular board session will be in Indonesia June 1-5, delegates said.
French operators have requested licences to export 422,000 tonnes of free market maize, 212,000 tonnes of barley and 20,000 tonnes of feed wheat at today's EC tender, trade sources said. For the maize, rebates requested range between 129.25 and 138.74 European currency units per tonne, for the barley between 138.94 and 145 Ecus and for feed wheat 141.75 Ecus.
Mauritius has lifted import duties on textiles and other goods connected with the textile industry as part of its economic liberalisation programme, Finance Minister Vishnu Lutchmeenaraido said. Lutchmeenaraido said the move was aimed at boosting the local textiles industry and making this Indian Ocean island a shopping paradise for textile goods. He said all types of textiles, textile machinery and associated goods such as sewing thread, buttons and collar supports would be placed on the duty-free list, effective from April 1. Official sources said the government was also planning to abolish import duties on fertiliser and agricultural equipment, with the liberalisation measures would be extended to other areas of industry later. The textiles industry dominates Mauritius's Export Processing Zone, and the island has become a major exporter of woollen knitwear.
Hokkaido Takushoku Bank Ltd is issuing a 100 mln dlr convertible eurobond due March 31, 2002 paying an indicated coupon of two pct lead managed by Takugin International, bookrunner Yamaichi International Ltd said. The par-priced issue is callable from 1990 at 104 pct declining by 1/2 pct per annum to par thereafter but is not callable until 1991 unless the share price exceeds the conversion price by 150 pct. Final terms will be fixed on April 9. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. The payment date is April 30 and there is a short first coupon.
North East Insurance Co said due to the magnitude of its losses in 1986 and 1985, it may be found in violation of minimum capital and surplus requirements by officials in Maine and New York and be subject to sanctions and administrative actions in those and other states. The company today reported a 1986 loss of 236,469 dlrs, after realized investment gains of 734,609 dlrs, compared with a 1985 loss of 2,522,293 dlrs, after investment gains of 645,438 dlrs. Its fourth quarter net loss was 1,653,386 dlrs, compared with 2,646,876 dlrs. The company said its fourth quarter and year losses resulted from additions to loss reserves.
Shr profit nil vs loss three cts Net profit 140,022 vs loss 882,869 Revs 13.3 mln vs 8,870,035 Avg shrs 45.0 mln vs 35.0 mln Backlog 1,683,000 vs 978,000 NOTE: Current year net includes tax credit of 51,000 dlrs.
Colombia recently bought 25,000 tonnes of French soft wheat at 108 dlrs per tonne, c and f, for end-April shipment, trade sources said. This follows the country's tender for 25,000 tonnes of optional origin wheat for shipment April 20-30, they said. France had not sold wheat to Colombia for several years.
Shr loss one ct vs loss seven cts Net profit 108,419 vs loss 241,192 Revs 2,044,882 vs 317,266 Year Shr loss 18 cts vs loss 23 cts Net loss 430,027 vs loss 432,982 Revs 5,088,065 vs 416,777 NOTE: Share after preferred dividends.
Toyo Trust and Banking Co Ltd is issuing a 100 mln dlr convertible eurobond due March 31, 2002 paying an indicated two pct and priced at par, lead manager Toyo Trust International said. The issue is callable after three years at 104 pct declining by 1/2 pct per annum to par thereafter. It is not callable unless the share price exceeds the conversion price by 150 pct. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. Final terms will be fixed on April 10. The payment date is April 30 and there will be a short first coupon period. The issue will be listed in Luxembourg.
An big expansion in bilateral trade is expected as a result of Swedish Prime Minister Ingvar Carlsson's visit to China, a official of China's Foreign Economic Relations and Trade Ministry official said. He told the China Daily that petroleum, coal, cotton, non-ferrous metals and electric engines could help balance the trade running at over three-to-one in Sweden's favour. Total trade reached 290 mln dlrs last year, up 32 pct on 1985, according to Chinese statistics. Swedish sources said major paper mill projects and an aviation agreement would be discussed during Carlsson's one week visit.
U.K. Domestic wheat markets dropped about one stg per tonne early this morning following overnight news that the EC is releasing a further 300,000 tonnes of wheat from British intervention stores for the home market over a three month period. April deliveries of denaturable wheat were offered in East Anglia at 124 stg and May at 125 stg per tonne, both one stg down on yesterday's traded rates. The market is expecting U.K. Wheat futures to show a similar loss at today's opening.
Spain has revised some of its main economic targets for 1987 after studying the performance of the economy in the first quarter, the economy ministry said in its monthly bulletin. Internal demand is now forecast to rise four pct against a previous target of 3.5 pct. Mariano Rubio, governor of the Bank of Spain, the central bank, yesterday said internal demand was currently growing at an annual rate of six pct and it had to be brought down to four pct if the government were to meet its five pct inflation target this year. Inflation was 8.3 pct in 1986. The forecast for private consumption growth remains unchanged at three pct, although public consumption is revised upwards to 2.5 pct from 2.0 pct. Growth in domestic demand will fuel imports, expected to increase by 8.6 pct against an originally estimated 7.1 pct. Export growth has been revised downwards to 3.7 pct from 5.2 pct due to the peseta's continuing strength against the dollar and slack external demand. Slow growth of exports and a tight rein on state spending has lowered estimated GDP growth to three pct in 1987 from an earlier forecast 3.5 pct. GDP grew by three pct last year. The economy ministry is holding its inflation forecast to five pct, in spite of minister Carlos Solchaga's doubts last week on whether this target could be maintained if wage settlements continue to rise above the government's recommended five pct ceiling. Unions and employers dispute the average wage increases agreed so far this year. Trade unions calculate wage settlements have produced average rises of 7.3 pct against 5.5 pct estimated by the employers' federation CEOE.
French sugar producer Beghin-Say is not currently planning to withdraw the sugar it has placed into intervention, despite the exceptionally high rebate awarded at this week's European Community (EC) sugar tender, Beghin-Say President Jean-Marc Vernes told Reuters. The maximum rebate of 46.864 Ecus per 100 kilos on Wednesday was the largest ever granted, according to traders. Vernes said he was satisfied the European Commission has started to move in the right direction, but said his company had no plans to change its decision to put sugar into intervention. But Vernes said he hoped that in the next few weeks a final agreement would be reached with the commission which would allow operators to withdraw the sugar from intervention. European operators offered 854,000 tonnes of sugar into intervention to protest about export rebates which they say are too low. Over 785,000 tonnes of this sugar was accepted by the commission on Wednesday, according to commission sources. Under EC regulations, however, operators have another four to five weeks to withdraw the sugar from intervention before payment is made for it. A total of 706,470 tonnes of French sugar and 79,000 tonnes of West German sugar has been accepted into intervention, trade sources said here. This amount represents about a third of annual EC exports to non-EC countries. Beghin-Say declined to specify the amount of sugar it had offered into intervention, but said it was below 500,000 tonnes. Producers say they have been losing 2.5 to 3.0 Ecus on every 100 kilos exported due to the failure of rebates to fully bridge the gap between EC and world prices. Wednesday's rebate was 0.87 Ecus short of what producers say is needed to get an equivalent price to that for sales into intervention, traders said. Vernes said operators hope to get a rebate which equates to the full intervention price and said Wednesday's tender was a step in the right direction. Sugar producers here said the volume of sugar authorised for export since the begining of the current campaign had been inadequate and that more should be exported now to compensate. Trade sources said new regulations governing export rebates, which are due to be adopted shortly, may smooth the path for the commission to award larger export rebates in future. One source at a leading French sugar house said it seemed the commission had understood the protest action and was now moving towards adapting the situation accordingly, thereby allowing the operators to withdraw their sugar from intervention once they got satisfaction.
U.K. Physical wheat values recovered from initial losses of one to two stg per tonne caused by overnight news of the release of an additional 300,000 tonnes of intervention feed wheat for U.K. Weekly home market tenders. Consumer buyers were attracted by the cheaper offers, traders said, and by early afternoon the market had recovered to one stg down to unchanged. U.K. Wheat futures also rallied to end the morning unchanged to 0.05 stg easier. In East Anglia, April deliveries of feed wheat traded at 123 and May at 124 but were subsequently bid one stg a tonne The market for denaturable wheat in Liverpool held comparatively steady with sellers holding back due to uncertain conditions. April deliveries made 127.50 and June 129.50 stg per tonne, basis Liverpool. The fob market for wheat started easier but here again selling pressure lifted around midday. Apr/Jun shipments traded fob east coast at 123 stg per tonne. This compared with 124 paid for April yesterday and 125 for May/June.
Qtly div eight cts vs eight cts in prior qtr Payable April 30 Record April 15 Company said its board intends to declare cash dividends quarterly and plans to pay a five pct stock dividend annually following the close of each fiscal year. The initial five pct stock dividend was paid December 22 to holders of record November 30.
Santa Fe Southern Pacific Corp may have
more difficulty combining its two railroads than fending off a
possible takeover by Henley Group
Belgian total money stock rose to 1,140.4 billion francs at the end of 1986 from 1,115.4 billion at the end of the third quarter of last year and 1,055.0 billion at the end of 1985, Belgian National Bank figures showed. Paper money rose to 404.1 billion francs from 394.1 billion and 383.5 billion respectively, other forms of privately held money to 679.5 billion from 652.7 billion and 616.0 billion. Money held by the public authorities fell to 56.8 billion francs from 68.6 billion at the end of the previous quarter but was above the 55.5 billion at the end of 1985, the bank said. The government does not set money supply targets, arguing they are inappropriate to a small economy with major trading and monetary links with much larger trading countries.
Amid new concerns about inflation, interest rate increases and trade confrontations, finance ministers and central bankers meet next week to discuss a deteriorating global debt and economic situation. The meetings, under the auspices of the International Monetary Fund and World Bank, come as interest rates are turning higher and the already-weak dollar has sunk further, upsetting bond and stock markets. Uncertainty is growing about the vitality of the global economy and whether the heavily-indebted countries can continue to carry the burden of their growing debt without vast new assistance. Monetary and diplomatic sources said there are no signs any new debt initiative of the sort that Treasury Secretary James Baker unveiled 18 months ago in Seoul is in the works. The strategy has drawn a serious challenge from Brazil, which suspended interest payments on 67 billion dlrs of commercial bank debt last month. The Banks have responded by laying the groundwork for writing down Brazilian loans. Separately, French Prime Minister Jacques Chirac, in a visit earlier this week with President Reagan, sounded out the administration on a plan to funnel worldwide grain surpluses to the very poorest states. The French plan is certain to be discussed by the ministers in detail during next week's meetings and will undoubtedly be embraced by the developing countries. "There's interest on the part of some countries for looking at the support of the special problems of the very poorest countries, because their position is so extreme," a Reagan administration official said. He suggested Washington was open to disussing the issue. The meetings will also assess the success of the Baker debt initiative, which called for new funding to help debtor countries grow out of their problems. The largest industrial countries have been attempting to coordinate economic policy in the hope of controlling the decline of the dollar, U.S. trade and budget deficits and other problems. At the same time, the industrial countries see little evidence of a strengthening of economic activity and the Fund forecasts they will grow 2.5 pct. The United States sees 3.2 pct growth for itself, continuing its expansion for a fifth year, and has asked other industrial countries to stimulate their economies. These issues directly affect the debt problem and the ability of the debtor countries to grow out of their difficulties. In recent years, U.S. markets have absorbed the exports of developing country, allowing them to earn critical foreign exchange. But the United States wants to cut its trade deficit, running at a record 169.8 billion dlrs, and is pressing others to import more from developing countries. The discussions, from April six to 10, will be wide-ranging, touching everything from interest rates to the impact of development loans on the environment, according to monetary sources. The talks will include an examination of trade protectionist pressures in the wake of a decision by the Reagan administration to place some 300 mln dlrs in tariffs on microchip products from Japan, the sources said. The move accelerated the dollar's decline as financial markets grew alarmed that trade war was in the offing. There is concern that the action, prompted by U.S. charges that Japan has been selling computer chip products below fair market value and has kept its own market closed to imports, further undermining the international trading system. At the same time, the ministers will discuss the fundamental price weakness in basic commodities, the export mainstay of many developing countries. The so-called Group of Five industrial countries -- the United States, Japan, West Germany, France and Britain -- will gather for the first time since their February talks in Paris, where they agreed to keep the dollar from sliding further. The Five will be joined later by Italy and Canada for further debate on economic policy coordination. As part of the Paris accord, surplus countries such as Japan agreed to stimulate their economies, while America said it would reduce its federal budget deficit. Other major issues of the meetings include a U.S. bid to to have a larger say in approving loans of the Inter-American Development Bank, strengthening the link between loans and economic policy changes in debtor nations. Washington is also pressing the World Bank to take more account of the environment when making loan for dams and other projects. The new head of the Bank, Barber Conable, has said this issue is being reviewed and will be part of a reorganization plan for the Bank, now being prepared.
Net 90,501 vs 56,960 Assets 42.0 mln vs 34.9 mln Deposits 35.9 mln Loans 27.6 mln vs 23.9 mln NOTE: earnings per share and 1985 deposits figure not supplied by company.
Pakistan is not emerging as a major wheat exporter as world market prospects are not good enough, Sartaj Aziz, Special Assistant on Food and Agriculture to the Pakistani Prime Minister, said in an interview. No exports are planned for the next 12 months or so and plans last year to sell one mln tonnes to Iran came to nothing because they could not agree a price, he said. Aziz forecast that Pakistan may have exportable surpluses of one mln tonnes or a half mln tonnes over the next few harvests in years when the weather is favourable. The government does not wish to increase output much above this because of low world prices, and the land would be better used for other crops. Aziz said the Pakistani government does not want area sown to wheat to increase from the current seven mln hectares. Some 10 pct of that area which gives low yields could be switched to more profitable crops such as oilseeds. The aim is to concentrate on raising yields from the current 1.8 to 1.9 tonnes per ha to at least 2.5 tonnes per ha over the next five to seven years, he said. Aziz said the current 1986/87 crop, harvesting of which is just beginning, is expected to yield around a record 14.5 mln tonnes. This compares with a target of 14.7 mln and last year's yield of 14.0 mln. He said rains some six weeks ago helped the crop but more recent rains reduced prospects slightly. The long-term wheat production target is for some 17 mln tonnes by mid-1993, taking into account Pakistan's annual population growth rate of more than three pct. Current consumption is some 12.5 mln tonnes. The current wheat reserve is 2.5 mln tonnes, Aziz said. This compares with a minimum reserve commitment of one mln tonnes, which Pakistan will maintain at all costs, and a "strategic reserve" target of two mln tonnes. Despite the fact that stocks are a half-mln tonnes over target, the surplus will not be exported at present, he said. The government wants to keep an extra "safety margin" until it sees what effect the abolition of a 44-year-old wheat rationing system will have on domestic consumption. New exports will be considered only in about a year's time when the 1987/88 crop can be gauged as well, he said. The new domestic policy, introduced on March 15, is for the government to supply unlimited quantities of wheat at two rupees per kilo. With other costs this means a price in Pakistani markets of between 2.30 and 2.50 rupees per kilo. Under the old system, introduced during World War Two and due to be phased out by April 15, some 50 mln ration cards were issued enabling poor people to buy wheat cheaply. Aziz said following the introduction of a government support price in the 1970s the system become so corrupted that only 20 to 25 pct of subsidised wheat was actually reaching the consumer, the rest being diverted illicitly to the mills. The ration system had also not had the stabilising effect on the internal wheat market that was intended, Aziz said. Prices have already begun to fall with the introduction of the new system. The wheat price in Karachi, the most expensive Pakistani city, had dropped from 3.11 rupees per kilo on March 1 to 2.85 rupees on March 30. Aziz said he does not expect the change in system to have a major effect on total consumption, but it may encourage better use of side-products such as bran.
Gerber Products Co said it has given management of its CWT Inc trucking subsidiary 60 days to pursue a leveraged buyout of the subsidiary. It said CWT Inc, which has operations in the Midwest and Southeast, has annual revenues of approximately 135 mln dlrs.
Enserch Corp said that it has called for redemption on May four all its outstanding 16-3/8 pct sinking fund debentures due 2007, pursuant to the optional redemption provision of the indenture at 111.981 pct of par.
Land's End Inc said its board declared a dividend of 10 cts a share payable April 30, record April 13. It is the company's first dividend since it became a public entity last October.
The European Commission's decision to release an additional 300,000 tonnes of British intervention feed wheat for the home market will provide only moderate relief in an increasingly tight market, traders said. Some operators had been anticipating a larger tonnage, pointing out that at this week's U.K. Intervention tender the market sought to buy 340,000 tonnes but only 126,000 tonnes were granted. The new tranche of intervention grain is unlikely to satisfy demand, they said, and keen buying competition for supplies in stores is expected to keep prices firm. The release of the feed wheat followed recent strong representations by the U.K. Grain trade to the Commission. There has been growing concern that rising internal prices, triggered by heavy exports, were creating areas of shortage in interior markets. The latest EC authorisation will add 70,000 tonnes at the April 14 tender and a further 30,000 tonnes later in the month. The remaining 200,000 tonnes will be made available in May and June. News of the release produced an early downward reaction in local physical markets, but by midday some sections had halved early two stg losses while others were unchanged. Ministry of Agriculture figures for March indicate 1.85 mln tonnes of wheat and 1.74 mln tonnes of barley remain in the free market. However, some traders believe these figures are overstated and, while some may still be held on the farm, the bulk of wheat is already sold. Some of the grain is also off the market in futures stores. A total of 2.10 mln tonnes of intervention wheat has been sold for export or to the home market since the season started July 1, leaving an unsold balance in intervention of about 1.59 mln tonnes. Intervention barley sales have reached just over 1.0 mln tonnes, leaving about 753,000 tonnes, traders said. This season's U.K. Export performance has surpassed all early expectations and has created the present nervous situation in domestic markets where the fear now is free market supplies may not last out until new crop becomes available in August. The market is sticking to its recent prediction of total barley and wheat exports of around 10.5 mln tonnes, a new record and nearly double the previous record of 5.9 mln tonnes achieved in the 1984/85 season. Traders expect U.K. Wheat exports to reach 6.0 mln and barley around 4.50 mln tonnes. The Soviet Union has booked a record total of 2.5 mln tonnes of British wheat and barley this season, but only 1.28 mln had surfaced in Customs export figures by March 25, traders said. Other EC countries have bought large amounts of British grain and for the July 1/March 25 period had taken 2.59 mln tonnes of wheat and 2.06 mln tonnes of barley. This compares with 1.28 mln and 868,700 tonnes last season. The market is expecting prices, particularly wheat, to stay buoyant for the remaining few months of the season. If supplies become more difficult and prices strengthen further, feed compounders may increase cereal substitute usage, traders said.
The United Food And Commercial
Workers said that more than 1,000 rank-and-file members of the
union will demonstrate Monday at Dart Group Corp's headquarters
protesting Dart's proposed 1.73 billion dlr takover of
Supermarkets General
Ameron Inc said its board adopted a rights plan designed to protect shareholders from potentially unfair takeover tactics. The plan calls for distribution of one right for each of its outstanding common shares and each right entitles the holder to buy one/one-hundredth of a share of newly authorized Series A Junior Participating cumulative Preferred stock at an exercise price of 55 dlrs, Ameron said. It said the rights are exercisable if a group acquires 20 pct or more of its common stock or announces a tender offer for 30 pct or more of its shares.
Bell Petroleum Services Inc said it agreed to begin talks with Regal International Inc to form a plan of reorganization under which Bell would become a subsidiary of Regal. The plan would be subject to Bankruptcy court approval due to Bell's status as a debtor-in-possesion under Chapter 11. the company's expect to file a plan by the end of May. This agreement terminates litigation between the companies concerning previous attempts at a plan of reorganization.. Bell is also free to continue talks with any third parties interested in an acquisition, it said.
Anadarko Petroleum Corp is raising 100 mln dlrs via an offering of convertible subordinated debentures due 2012 with a 5-3/4 pct coupon and par pricing, said sole manager Kidder, Peabody and Co Inc. The debentures are convertible into the company's common stock at 32.625 dlrs a share, representing a premium of 23.11 pct over the stock price when terms on the debt were set. Non-redeemable for two years, the debentures have a mandatory sinking fund beginning in 1998 calculated to retire 70 pct of the issue prior to maturity, Kidder said. Moody's and S and P ratings are pending.
The U.S. Agriculture Department said it has accepted a bid for an export bonus to cover the sale of 50,000 tonnes of hard red winter wheat to Sri Lanka. A bonus of 37.44 dlrs per tonne was awarded to Continental Grain Co on the shipment scheduled for April 8-16, Melvin Sims, USDA general sales manager said. An additional 10,000 tonnes of wheat are still available to Sri Lanka under the export enhancement program, Sims said.
The U.S. Agriculture Department said it has accepted a bid for an export bonus to cover the sale of 18,000 tonnes of U.S. durum wheat to Algeria. A bonus of 43.25 dlrs per tonne was awarded to Cam USA Inc on the shipment scheduled for June 20-30, Melvin Sims, USDA general sales manager, said. An additional 228,000 tonnes of durum wheat are available to Algeria under the department's export enhancement program, Sims said.
There were five grain ships loading and three ships were waiting to load at Portland, according to the Portland Merchants Exchange.
Shr 32 cts vs 28 cts Net 2,194,000 vs 1,929,000
The U.S. Agriculture Department said Turkey has been made eligible for the sale of up to 70,000 tonnes of medium grain milled rice under the department's export enhancement program, EEP. As with the 65 previous EEP initiatives, the export sales would be subsidized with commodities from the inventory of the Commodity Credit Corp and made at competitive world prices, USDA said.
Brazil's state oil company Petrobras is pledging to export 4.6 mln cubic meters of fuel, or 28.9 mln barrels in 1987, a company spokesman said. He said that represents a total sale worth 600 mln dlrs. The volume is 27 pct higher over 1986 sales, which totalled 3.6 mln cubic meters, or 22.6 mln barrels. The United States, Africa and Latin American are Brazil's main fuel buyers, the spokesman said.
Grain and oilseed complex export business reported since yesterday by government agencies and private exporters - Japanese crushers bought 4,000 to 5,000 tonnes of Canadian rapeseed in export business overnight for May shipment...Greece has agreed to buy 27,000 to 33,000 tonnes of Spanish corn for spot shipment, with Italy buying 6,000 to 7,000 tonnes of Spanish corn for last/half April shipment, a spokesman for cargill's spanish unit said...Taiwan bought 54,000 tonnes of U.S. soybeans for April 20/May 5 delivery C and F... (Continued) - The India State Trading Corp bought 20,000 tonnes of optional origin soybean oil for May 20/June 20 shipment and 6,000 tonnes of RBD palm olein for April 25/May 25 shipment at its import tender yesterday...Pakistan rejected offers at its tender for 12,000 tonnes of RBD palm oil, but is expected to retender next week...The U.S. Department of Agriculture (USDA) said it has accepted a bid for an export bonus to cover the sale of 50,000 tonnes of U.S. hard red winter wehat to Sri Lanka for April 8/16 shipment, with an additional 10,000 tonnes of wheat still available to Sri Lanka under the Export Enhancement Program (EEP)... (Continued) - The USDA said it has accepted a bid for an export bonus to cover the sale of 18,000 tonnes of U.S. durum wheat to Algeria for June 20/30 shipment, with an additional 228,000 tonnes still available to Algeria under the EEP. Tenders - Jordan will tender Monday, April 6, for 225,000 tonnes of U.S. hard and soft wheats for various April/Nov shipments under the EEP. Market talk and comment - The USDA said Turkey has been made eligible for the sale of up to 70,000 tonnes of medium grain milled rice under the EEP... Market talk and comment (continued) - The USDA announced Colombia has been made eligible for sale of up to 15,000 tonnes of U.S. barley malt under the EEP...The Canadian Grain Commission reported Canadian wheat exports in the week ended March 29 totalled 447,200 tonnes, compared with 277,700 the previous week, with 1986/87 season exports so far up to 10,228,600 tonnes versus 10,637,500 for the 1985/86 season, with barley exports 38,800 tonnes, 106,700 tonnes, 4,804,500 and 1,892,600 respectively, rapeseed 43,900 tonnes, 50,700 tonnes, 1,292,600 and 920,000 respectively and flaxseed 20,700 tonnes, 13,600 tonens, 450,900 and 392,600 respectively... Market talk and comment (continued) - Pakistan is not emerging as a major wheat exporter as World market prospects are not good enough, a government official said...Active timecharter fixing by Soviet operators to cover USSR grain imprts featured the ocean freight market this morning, ship brokers said...Dry cargo futures on the BIFFEX extended yesterday's strong advance, with sharp gains of 22 to 17 points in response to rumors of higher rates for grain business from the U.S. Gulf to Japan, dealers said.
Time Inc said the acquisition of Scott, Foresman and Co last year will dilute earnings per share by about 17 cts a share for the full year in 1987. For the first quarter the acquisition will have a negative impact of about 20 cts per share, chief financial officer Thayer Bigelow told security analysts. He said Scott, Foresman, a textbook publisher, will contribute more than 50 mln dlrs in operating income before depreciation and amortization for the full year. N.J. Nicholas, president and chief operating officer, said Soctt Foresman will have over 200 mln dlrs in revenue in 1987. Bigelow said the textbook business, which normally has its highest profit in the third quarter and incurs a loss in the first quarter, will have an "adverse impact of 15 mln dlrs' on book publishing income for the first quarter. "First quarter performance for the rest of Time Inc will be better than last year," Bigelow said. The dilution of 17 cts per share for 1987 includes the effects of financing the acquisition. Bigelow also said the company is "comfortable" with estimates that earnings will be between 3.75 dlrs and 4.25 dlrs per share for the year.
First Quarter Anchor Financial Corp shr 31 cts vs 31 Nine Months Biomet Inc shr 49 cts vs 36 Federal Co shr 3.55 dlrs vs 1.66 Richardson Electronics shr 59 cts vs 53 Year Eac Industries Inc oper shr loss 65 cts vs loss 97 cts Fine Art Acquisitions shr 15 cts vs 10 Mangood Corp oper shr loss 6.07 dlrs vs loss 7.64
Sturm, Ruger and Co Inc said it submitted a bid in excess of 60 mln dlrs for Smith and Wesson, a manufacturer of law enforcement firearms, and a unit of Lear Siegler. Smith and wesson is among a number of companies being sold by Forstman and Little after its recent acquisition of Lear Siegler.
The Brazilian Coffee Institute (IBC) confirmed having closed May export registrations, effective April 6. On Friday night exporters said they had heard of the closure from IBC officials, but the officials could not at the time be reached for confirmation.
The Zambian currency further depreciated yesterday at the second auction since the introduction of a two-tier foreign exchange system last month. The (central) Bank of Zambia said the kwacha was pegged at 16.99 to the dollar, compared to last week"s rate of 15 to the dollar. The bank, which offered six mln dlrs at the auction, reported demand for 13.4 mln dlrs. At the previous auction, the government offered eight mln dlrs. Last month the government set a fixed exchange rate of nine kwacha per dollar, subject to adjustment against a basket of five currencies, for certain official transactions. It also introduced a new weekly foreign exchange auction only for parastatal organisations and the private sector, where the exchange rate is allowed to float in accordance with market demand. The new auction system is designed to be more restrictive than the previous one, suspended in January after the central bank fell 10 weeks in arrears to successful bidders. Under the new system, no bidder, except the the state oil company Zimoil and the national airline Zambia Airways, is allowed to bid for more than five pct of the foreign exchange on offer.
Wheat and rapeseed crops in east China suffered considerable damage because of frost during a spell of unusually cold weather in late March, the China Daily said. It said average temperatures for the last 10 days of March in most of east China were three to five degrees centigrade below average. Snow fell in Jiangsu, Anhui, Hubei and Henan, making early rice sowing difficult. Heavy snow blanketted central and south Jilin and north Liaoning, leaving farmland too muddy for spring ploughing and sowing, the paper said. The paper said rainfall during the last 10 days of March in areas south of the Yangtze had been much higher than normal. Heavy rain fell last Sunday in parts of Guangdong, ending a particularly arid dry season and marking the start of the flood season, it said. It gave no further details. The New China News Agency said rain and snow in Henan had improved the prospects for wheat, sown on 4.8 mln hectares, and caused a drop in grain prices at rural fairs since late February. It gave no 1986 figures for comparison.
The Finance Ministry auctioned 280 billion yen of four-year government notes, the first auction of fiscal 1987 which started on April 1. The coupon was set at 3.7 pct, a record low for any government note and below the 3.8 pct set on the last two-year notes, auctioned in February. Today's issue was the first for four-year notes since last May, which produced an average price of 99.79, average yield of 4.561 pct and a coupon of 4.5 pct, the Ministry said. The auction results will be announced tomorrow afternoon.
The International Cocoa Organization (ICCO) buffer stock could face an uphill battle to halt the downtrend in world cocoa prices when it begins buying operations in the next few weeks, cocoa traders said. Traders said they believed buffer stock purchases could reach 75,000 tonnes in a matter of weeks without lifting prices significantly, given the amount of surplus cocoa overhanging the market. The buffer stock may begin buying shortly as the ICCO 10 day average indicator price is now at 1,578.03 Special Drawing Rights (SDR) per tonne, below the 1,600 "must buy" level. Rules governing buffer stock operations were agreed last month by the ICCO council. Buying will begin once the buffer stock manager has completed preparations, traders said. Some traders said the buffer stock manager may delay buffer stock buying until mid or end-April when changes in months used to calculate the ICCO indicator may lift the 10 day average above the 1,600 SDR "must buy" level. The ICCO indicator price is calculated from the average of the second, third and fourth positions on the London and New York futures markets. The daily price was 1,577.61 SDR per tonne yesterday. Months used currently for the indicator are May, July and September, but these are set to change to July, September and December on April 15, prior to May becoming the New York spot month, traders noted. The introduction of December into the calculations may lift the daily SDR price as December is currently quoted about 75 stg above May on the London terminal market. But the buffer stock manager would have to wait for the higher daily price to feed through into the 10-day average, the indicator which governs his activities, traders said. "The buffer stock manager is obviously looking at the implications of delaying until forward prices lift the indicator since it might mean he has to buy less cocoa," an analyst from a leading cocoa trade house said. Traders said the buffer stock purchases could reach 75,000 tonnes fairly quickly once buying starts. If purchases reach this level within six months, buying is suspended pending an ICCO council review of price ranges. But some cocoa market watchers said the buffer stock may benefit from recent forecasts for a poor Brazilian Bahia temporao crop at 1.5 mln to two mln 60 kilo bags against initial expectations of up to three mln. A lower than expected Brazilian crop may cut the 1986/87 world surplus to between 50,000 and 70,000 tonnes, compared with a recent forecast by the ICCO statistics committee of 94,000 tonnes, traders said. In these circumstances, the buffer stock may only need to buy between 20,000 and 30,000 tonnes to lift prices above the "must buy" level. But some dealers said the ICCO buffer stock rules may put constraints on how quickly and effectively the buffer stock manager can remove cocoa from the market. The buffer stock system of price differentials set according to quality and a 15 pct limit on purchases from non-members could limit the buffer stock's scope for action, dealers said. Most of the cocoa readily available to the buffer stock is nearby in-store material of Malaysian and Ivory Coast origin. But the buffer stock can only buy 15 pct Malaysian cocoa as Malaysia is not an ICCO member, while purchases of nearby cocoa can only reach 40 pct in any one day, which forces the buffer stock to buy some intermediate and forward shipment material. Limits on buffer stock purchases of nearby and non-member cocoa will reduce the impact on terminal prices which are pressured by the overhang of Malaysian material, traders said. Buffer stock purchases of forward shipment cocoa from quality producers such as Ghana will have only a limited impact on futures, but is likely to widen physical market premiums for this cocoa over futures. Ghana's premium to the terminal has risen to about 50 stg from 25 to 30 stg a month ago partly in anticipation of buffer stock buying, dealers said. "The buffer stock may not help the terminal market, but will provide a backstop for quality cocoas," one trader said. Traders cautioned that views on the impact of the buffer stock were "all prognostication" and that no one could hope to predict accurately what the result would be. Psychologically buffer stock buying should help prices, but since the buffer stock already holds a carryover of 100,000 tonnes from the previous cocoa agreement and the market is in surplus, dealers expressed doubts purchases can counter bearish pressure. In June the ICCO is due to discuss rules for a withholding scheme as an additional market support mechanism.
The Bank of England said it had provided the money market with 224 mln stg help in the morning session. This compares with the Bank's forecast of a shortage in the system today of around 850 mln stg which it earlier revised up from 800 mln. The central bank bought bank bills comprising 27 mln stg in band one at 9-7/8 pct, 21 mln stg in band two at 9-13/16 pct and 171 mln stg in band three at 9-3/4 pct. It also purchased three mln stg of treasury bills and two mln stg of local authority bills in band three at 9-3/4 pct.
Cardinal Industries Inc said it restated earnings for the first nine months of 1986 to 235,000 dlrs, or nine cts per share, from 485,000 dlrs, or 18 cts, reported previously due to the failure of an automated accounting system installed in mid-year and replaced in the fourth quarter. The company said its Reliance segment sustained a significant operating loss for the full year 1986 due to the accounting problems and increased promotional and advertising expenses. For the full year, it said it earned 284,000 dlrs, or 10 cts a share, up from 271,000 dlrs, or 10 cts, in 1985. Cardinal Industries said revenues for the year were 30.7 mln dlrs, up from 23.0 mln dlrs in 1985. The company said for the first quarter of 1987, earnings were about 48,000 dlrs, up from 13,000 dlrs or nil per share in the year ago period. The year-ago first quarter earnings, however, have been restated from 101,000 dlrs or four cts per share. It said sales for the first quarter were about 8,363,000 dlrs, up from 6,636,000 dlrs. For the first half of 1986, the company said it restated earnings to 141,000 dlrs or five cts per share from 340,000 dlrs or 12 cts per share reported previously.
FMD Inc said it has agreed to acquire Bankers Protective Financial Corp for 28,836,000 common shares, subject to approval by the Texas State Board of Insurance. Bankers Protective is a life insurance company based in Texas.
A total of 14,685 tonnes of British intervention feed wheat were sold at today's tender for the home market, the Home Grown Cereals Authority said. Bids amounted to 19,115 tonnes against offerings of 31,528. Prices paid were at, or above, the prevailing intervention feed wheat price of 120.71 stg per tonne. Grain traders said a large part of the tonnage on offer was in stores, which would mean high transport costs to deficient areas. The European Commission recently made available 70,000 tonnes for next week's tender.
A unit of Banca Nazionale del Lavoro is issuing a 15 billion yen eurobond due May 12, 1992 paying 4-1/2 pct and priced at 101-1/2 pct, market sources said. The joint bookrunners are Tokai International and Daiwa Europe Ltd. The formal name of the borrower is Banca Nazionale del Lavoro (London Branch) (Through the Law Debenture Corporation Plc). The non-callable bond is available in denominations of one mln yen and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct. The payment date is May 11 and there will be a long first coupon period.
The Bank of England said it provided the money market with a further 284 mln stg assistance in the afternoon session. This takes the bank's total help so far today to 508 mln stg and compares with its revised estimate of a 900 mln stg shortage in the system which it earlier revised up from 850 mln. The central bank made outright purchases of bank bills comprising 100 mln stg in band one at 9-7/8 pct, 56 mln stg in band two at 9-13/16 pct, 112 mln stg in band three at 9-3/4 pct and 16 mln stg in band four at 9-11/16 pct.
Sesostris, the Spanish subsidiary of the international grain trader Dreyfus, sold 18,000 tonnes of barley to Greece for delivery from Mediterranean ports from April 14 to 30, a company spokesman said. He gave no details on price. The barley has a 14 pct humidity.
The U.S. Agriculture Department gave a preliminary breakdown of grain in the Farmer-Owned Grain Reserve as of April 1, with comparisons, based on telephone reports from farmers filed with the department's Kansas City field office, in mln bushels -- April 1 Previous Wheat 657.6 659.7 Corn 1,406.5 1,397.0 Sorghum 95.8 95.5 Barley 122.1 122.0 Oats 3.7 3.7
The U.S. Agriculture Department gave the following breakdown of grain remaining in the farmer-owned grain reserve as of April 1, in mln bushels, by reserve number -- I II III IV V VI Wheat nil nil 0.1 0.3 10.5 479.7 Corn -- -- -- 4.1 1,231.9 -- Sorghum-x -- -- -- 0.1 38.8 -- Barley -- -- -- 0.1 73.9 -- x - mln cwts. Note - USDA says above totals may not match total in reserve numbers.
Kuwait has asked at least four countries, including the United States, Soviet Union, Britain and China, for temporary use of their flags or tankers to protect Kuwaiti oil shipments in the troubled Persian Gulf, Reagan Administration officials said. The officials confirmed a New York Times report that Kuwait wants to transfer some of its oil tankers to U.S. or Soviet registration in hopes Iran would be reluctant to launch new "Silkworm" missiles at superpower flags. The United States has vowed to keep the gulf open to international oil traffic and has warned Tehran against using the Chinese-made missiles recently installed in Iran near the mouth of the gulf. "They (the Kuwaitis) have also asked Britain, China and possibly some other European countries to lease tankers to carry their oil," one of the administration officials, who asked not to be identified, told Reuters. The United States is considering the request to temporarily transfer Kuwaiti ships to American registration, but such a move could create insurance and other problems, the officials said. U.S. defense officials told Reuters yesterday that Kuwait had decided for at least the time being not to accept a U.S. offer to use American warships to escort its tankers in the gulf, where both Iran and Iraq have been attacking shipping.
The European Commission has not taken a decision on applications from the British government for the release of 200,000 tonnes of intervention feed wheat onto the British market in May and June, Commission sources said. They said last week's cereals management committee agreed to release 70,000 tonnes of feed wheat through weekly tenders between April 14 and May 26. It also indicated it planned to allow the release of another 30,000 tonnes from April 23. However, it decided to leave consideration of the release of further wheat until later. The British government had applied for the release of a further 100,000 tonnes in both May and June from British intervention stores to prevent market prices rising. However, the sources said, the Commission wanted to review the market situation nearer the time before giving its approval. The Commission was given new powers last year to control the release of intervention cereals onto the market, the sources noted. Following last week's committee meeting, the U.K. Ministry of Agriculture said the Commission had given an assurance that additional quantities of intervention wheat would be made available in May and June. It also said that it was envisaged that monthly releases would be at least 100,000 tonnes, depending on the state of the market. This lead to the widespread assumption that the Commission had actually approved the release of 300,000 tonnes during the three months of April, May and June at last week's meeting.
There is no consensus so far among industrial countries on an agreement providing debt relief for the world's poorest nations, a senior U.S. Treasury official said. The official said, "There has not been a consensus reached yet," when asked about reports the Paris club of western creditors had agreed to long-term stretch outs of African debt at concessional interest rates. The official, briefing reporters on this week's semiannual IMF meetings, said the issue would be discussed this week and the U.S. had an open mind on the proposal but it did object to concessional interest rate relief.
Artistic Greetings Inc said it expects a rebound in profits and an increase in sales in 1987 as costs connected with computerization, staffing, traning and catalog sales start to taper off. Today it reported 1986 earnings of 294,650 dlrs, down from 371,064 dlrs a year before, on revenues of 8,157,864 dlrs, up from 7,054,709 dlrs.
The amount of coffee stored in New York and New Orleans warehouses and certified for delivery against the New York Coffee "C" futures totalled 585,555 bags as of April 3, compared with 585,794 bags the previous week, a net decrease of 239 bags, the New York Coffee, Sugar and Cocoa Exchange said. The total comprised 392,845 bags in New York, an increase of 261 bags, and 192,710 bags in New Orleans, a drop of 500 bags. The exchange said there were nil bags pending classification. There were 56,578 bags pending certification, including 32,553 in New York and 24,025 in New Orleans, the exchange said.
Cuban president Fidel Castro told a Congress of the Union of Young Communists here that the production of crude sugar during the harvest still in progress is 800,000 tonnes behind schedule. In a speech Sunday, published in today's official paper GRANMA, Castro said unseasonable rains since January seriously interrupted harvesting and milling operations especially in the central and western parts of the island. The Cuban leader said the mechanical cane harvesters scheduled to cut over 60 pct of the cane this year were particularly "vulnerable," as muddy fields prevent operations. Neither Castro nor the Cuban press have given out figures to estimate tonnes of crude production during the present harvest or the goals for the sugar campaign. However, a cuban sugar official told Reuters that the country will be lucky if crude output reaches last year's 7.2 mln tonnes. Output of crude for the previous 1984-85 harvest was 8.2 mln tonnes. The harvest was scheduled to end April 30 but due to the present shortfalls it will be extended into May and June, the official said.
Honduras will tender April 13 under Public Law 480 for U.S. and non-U.S. flag vessels to deliver approximately 52,500 tonnes of various wheats in bulk, an agent for the country said. The agent said deliveries of northern spring/dns wheat will include laydays of July 1-10 for 7,500-9,500 tonnes, August 1-10 for 8,000-10,000 tonnes, and September 15-25 for 12,500-14,500 tonnes. Deliveries of hard red winter wheat will have laydays of June 20-30 for 5,000-7,000 tonnes, July 15-25 for 6,500-8,500 tonnes, and September 15-25 for 7,000-9,000 tonnes. Offers are due by 1200 hrs EDT, April 13, and will remain valid until the close of business April 14, the agent said.
The Commodity Credit Corporation (CCC) has reallocated 5.0 mln dlrs in credit guarantees previously earmarked for sales of U.S. wheat to provide coverage for sales of U.S. vegetable oil to Bangladesh, the U.S. Agriculture Department said. USDA said the action was taken at the request of the Bangladesh government and reduces the guarantee line authorized for wheat sales from 25.0 mln dlrs to 20.0 and creates a new line of 5.0 mln dlrs for vegetable oils. To be eligible for coverage under the CCC's Intermediate Export Credit Program, credit terms must be in excess of three years, but not more than seven years. All sales covered by the credit guarantees must be registered and shipped by September 30, 1987, USDA said.
The Commodity Credit Corporation (CCC) has authorized 2.0 mln dlrs in credit guarantees to cover sales of seeds for planting to Algeria, the U.S. Agriculture Department said. The department said the additional guarantees increase the cumulative fiscal year 1987 program for sales of U.S. agricultural products to Algeria to 466.0 mln dlrs. To be eligible under the new seed credit guarantees, all sales must be registered by September 30, 1987, and shipped by December 31, 1987, USDA said.
Shr nine cts vs seven cts Net 1,356,000 vs 1,041,000 Revs 9.7 mln vs 8.4 mln
Cannon Group Inc said it agreed in
principle to sell its 50 pct interest in the HBO/Cannon Video
joint venture to the Home Box Office unit of Time Inc
Sun Co's Sun Refining and Marketing Co subsidiary said it raised the price it charges contract barge customers for heating oil in New York harbor by 0.50 cent a gallon, effective today. The increase brings the contract barge price to 50.50 cts a gallon, Sun said.
(La Confederation des Caisses Populaires et d'Economie Desjardins), the Quebec credit union group, said it is lowering the interest rate on unpaid balances on its Visa credit card to 15.9 pct from 18.0 pct, effective with June billing statements. The move follows cuts in credit card interest rate charges by several Canadian banks.
Shr profit eight cts vs loss 1.84 dlrs Net profit 785,000 vs loss 4,279,000 Revs 10.4 mln vs 8,464,000 Avg shrs 9,649,000 vs 2,664,000 Six Mths Shr loss nine cts vs loss 4.09 dlrs Net loss 262,000 vs loss 9,689,000 Revs 19.2 mln vs 15.6 mln Avg shrs 2,874,000 vs 2,660,000
Egypt has cancelled its Export Bonus tender for 200,000 tonnes of soft red winter wheat for May-June shipment after failing to bid a price acceptable to USDA, private export sources said.
Jordan has boosted its bids for U.S. soft and hard wheat under Export Bonus, private export sources said. Jordan today bid 74 dlrs per tonne for soft wheat and 75 dlrs per tonne for hard red winter wheat in its tender for 225,000 tonnes of hard and soft wheat for April through November shipment. Earlier today, USDA rejected its bids of 70 dlrs for both varieties, they said.
Morocco will tender Thursday for 120,000 to 210,000 tonnes of U.S. wheat, cheapest variety preferred, for May and June shipments under PL 480, private export sources said. The tender will consist of three lots of up to 70,000 tonnes each for shipment May 1-30, May 10-June 10, and May 25-June 25, they said.
Allegheny International Inc, which has agreed to a merge with a jointly-formed First Boston Inc affiliate in a deal worth 500 mn dlrs, said shareholders of its preferred stock have filed a class action complaint against the company. The complaint alleges, among other things, that the company and its board agreed to pay First Boston an illegal seven mln dlr topping fee if it received a higher offer for the company prior to the buyout. The suit contends that this fee hampers Allegheny's ability to attract other offers or take other actions that would benefit holders of preferred stock. The complaint also alleges federal securities laws violations and breach of fiduciary duty. The suit requests an injunction against proceeding with the pending offer being made by Sunter Acquisition to acquire Allegheny. Sunter Acquisition Corp and Sunter Holdings Corp were formed by First Boston and Allegheny. Allegheny said it and the Sunter concerns intend to vigorously defend the complaint's charges. The complaints were filed by Robert Moss and other parties who are believed to own about 230,000 shares of Allegheny's preferred stock.