KMART LOSS AGAIN TOPS $1-BILLION: Kmart Corp. lost $1.45-billion and saw sales dive more than 8 percent in its first full quarter since filing for bankruptcy protection. Kmart's heavy losses resulted from reorganization items, including store closings, and mark the second straight quarter of losses exceeding $1-billion. Its loss for the quarter ended May 1 was $2.88 a share, compared with a loss of $233-million, or 48 cents a share, a year ago. Kmart chairman and chief executive James B. Adamson said while the losses are significant, the company is making progress. Revenues for the quarter were $7.64-billion, down from $8.34-billion a year ago. In the fourth quarter, Kmart lost $1.5-billion, or $3.49 per share.

PRODUCTION EDGES UP: The industrial sector is back on track, but isn't bursting with vitality. The Federal Reserve said production at factories, mines and utilities rose a fifth straight month in May, nudging up 0.2 percent, the smallest increase this year. Production of cars and parts, and communications equipment declined. But higher output was reported for home electronics, computers and office equipment, and appliances, furniture and carpeting. "It's good news, but not exuberantly good news," said Tim O'Neill, chief economist at Bank of Montreal. "... The industry is back on track. But it's not going to be the engine on the economic train."

CATALINA NAMES FINANCIAL CHIEF: Christopher Wolf was promoted to chief financial officer of Catalina Marketing Corp., replacing Joseph Port, who resigned for personal reasons. Catalina chairman and chief executive Daniel Granger said the resignation was in the works for several months and was not related to performance. The St. Petersburg electronic coupon distributor also is changing auditing firms from Arthur Andersen LLP to Ernst & Young.

REPUBLIC PICKS AUDITOR: Republic Bancshares of St. Petersburg has chosen Deloitte & Touche LLP as its new external auditor. Republic, the parent of Republic Bank, dropped beleaguered Arthur Andersen in April, expressing concern over the accounting giant's uncertain future. Republic paid Andersen $342,707 for audit and tax services in 2001. Deloitte's appointment, disclosed in a regulatory filing, took effect Friday.

MICROSOFT NOW BIGGEST COMPANY: General Electric Co., beset by slowing growth and investor concern that it relies too much on short-term debt, lost its spot as the world's largest company by market value to Microsoft Corp. A decline of $103-billion of value this year cut GE's worth to $295-billion. Microsoft has shed $59.6-billion, lowering its market capitalization to $299-billion. GE has ranked as the biggest company since April 3, 2000, when it passed Cisco Systems' $524-billion. Cisco is now worth $107-billion.

TWA PLAN TO PAY CREDITORS APPROVED: Trans World Airlines Inc., the bankrupt carrier bought last year by American Airlines parent AMR Corp., won court approval of its liquidation plan to pay creditors. TWA's plan calls for the distribution of as much as $270.5-million to some secured and other creditors. Unsecured creditors will receive a share of 3.33 percent of recoveries from property transfers made before the filing. Shareholders will receive nothing. TWA filed for Chapter 11 protection from creditors in January 2001 to speed the sale. AMR completed its $4.2-billion purchase in April 2001.

ADELPHIA HIRES NEW ACCOUNTANT: Adelphia Communications, which fired its accounting firm this week amid controversy over off-the-books debt, has hired PricewaterhouseCoopers as its new independent accountant. Adelphia suspended work by its previous accountant, Deloitte & Touche, on May 14 to sort out off-the-books debt estimated at more than $3-billion. Adelphia fired the firm Sunday after learning that past audits had failed to detect the questionable business arrangements between the company and the family of its founder, John J. Rigas.

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