By Compiled from Times wires
Published September 4, 2003
CONSTRUCTION SPENDING UP IN JULY: U.S construction spending rose for a second month in July as home building increased on the heels of a drop in mortgage rates the previous month, a Commerce Department report showed. The 0.2 percent increase to $879.8-billion at an annual rate followed a revised 0.7 percent rise in June that was more than double the previous estimate, the department said. Residential construction, which accounts for more than half the total, rose 0.6 percent, the highest since January.
"BEIGE BOOK' REPORTS GAINS: The U.S. economy "continued to improve" in July and August, the Federal Reserve said in its survey of regional economies. Eleven of the Fed's 12 regional districts, including Atlanta, said business activity picked up during the period. The survey found gains in retail sales and manufacturing, while the blackout that struck the Northeast and Midwest on Aug. 14 had little effect on the economy. The Atlanta region, which includes Florida, reported "a modest improvement in economic activity from late July through mid August. Retail contacts were positive about sales activity and the manufacturing sector displayed some welcome signs of improvement."
CHICO'S NAMES SUCCESSOR: On a day when Chico's FAS Inc. stock hit a 52-week high, the co-founder and chief executive of the high-flying Fort Myers apparel chain said he is stepping down and named as his replacement Scott Edmunds, the company's chief operating officer. Marvin Gralnick, who started the company with his wife, Helene, in 1982, will continue to be chairman. The company said sales in stores open more than a year were up 14 percent in August. Chico's stock peaked at $33.94 a share on Wednesday before closing at $33.57.
RATE HIKE DISMISSAL SOUGHT: The state Office of Public Counsel asked the Florida Public Service Commission on Wednesday to dismiss petitions filed by Verizon, Sprint and BellSouth seeking sharp increases in basic local phone rates. The utilities sought the rate increases Aug. 27 to offset lost revenue from proposed cuts in the instate long-distance access fees charged to long-distance carriers. The companies say they are seeking to implement the rate changes over two years, but the public counsel, the state's consumer advocate before the PSC, argued in Wednesday's filings that they will actually be put in place before the minimum two-year period required under the law.
SYKES NAMES OFFICER: Sykes Enterprises of Tampa appointed a former Gateway Inc. employee to supervise its call center operations in North America, Latin America, India and the Asia Pacific Rim. James Hobby, who served as Gateway's vice president of customer care, will report to chief operating officer Chuck Sykes. Sykes Enterprises handles customer inquiries for clients like Microsoft and SBC Communications via a global network of call centers.
PURNELL PLANS EXPANSION: Purnell Furniture Services, a delivery service for Norwalk Furniture, Restoration Hardware, Pottery Barn and the Crate and Barrel web site, is expanding its Hillsborough County operation. The Manassas, Va., company paid $265,000 for 2.9 acres at the Interstate Industrial Park near Interstate 4 and U.S. 301, according to Colliers Arnold, which brokered the deal. Purnell plans to almost double its local payroll of a dozen by the time its new 35,000-square-foot facility is completed in spring.
WALTER STOCK STUMBLES: Walter Industries' stock tumbled 21 percent Wednesday to $9.51 per share, a day after the Tampa conglomerate reduced its 2003 earnings forecast for the third time this year. By the close of business, 2.1-million shares had traded hands, 15 times the average daily volume of 140,000. Walter blamed problems at its Alabama coal mines, homebuilding division and pipe-making unit for the reduced earnings forecast.
IMSG NAMES NEW CFO: Insurance Management Solutions Group Inc. said that Anthony R. Marando left the St. Petersburg company Aug. 15 and was replaced as chief financial officer by Michele K. Morgan. Morgan had been vice president and controller of the company. Marando received $86,000 severance upon departure. The insurance outsourcing company is holding a shareholder meeting Sept. 23 to vote on its previously announced merger with Fiserv Solutions Inc.
INDUSTRIAL VACANCIES INCREASE: There was additional vacant industrial space in the Tampa market at mid-year, and rental rates continued to fall, according to Advantis, the commercial real estate division of the St. Joe Co. The total vacancy rate was 9.9 percent at the end of June, up from 8.9 percent at the end of the second quarter last year. The average asking rental rate fell 25 cents to $4.82 per square foot over the same period.
CIGNA TO PAY $540-MILLION: Cigna Corp. will pay about $540-million to settle a lawsuit claiming it routinely shortchanged the nation's doctors on payments for their services. Cigna's cash payout is a guaranteed $140-million and an expected $170-million for reimbursement on claims up to 12 years old, attorneys' fees and a new health care foundation, the Associated Press reported, quoting sources it did not name. The insurer also committed to spending $400-million to change its claims processing procedures, and doctors expect to save $300-million, largely by reducing their claims processing overhead.
EBBERS PLEADS NOT GUILTY: Former WorldCom chief executive Bernie Ebbers pleaded not guilty Wednesday to charges that he violated Oklahoma securities laws, the first charges brought against the man who presided over the telephone company's $11-billion accounting scandal. Ebbers, 62, was freed on $50,000 bail, and a pretrial conference was set for Oct. 30. Earlier in the day, Ebbers was fingerprinted and photographed for a mug shot.
ALBERTSONS FOUND GUILTY: California Superior Court Judge Lisa Foster ordered Albertsons, the nation's second-largest grocery chain, to pay $1.85-million for scanner overcharges in its California stores. Her ruling covers penalties, costs and improvements at Albertsons stores to ensure accurate pricing, according to a statement Tuesday from the San Diego district attorney's office. Albertsons also must hire a scan coordinator whose sole duty is to make sure that prices advertised in the media and in the store are the same prices charged at checkout.
NORTEL GETS $1-BILLION CONTRACT: Verizon Wireless said Wednesday it awarded Nortel Networks Corp. a contract for network equipment valued at $1-billion. Under the contract, Nortel is to expand and upgrade Verizon Wireless' voice and data network in numerous markets. The agreement also includes deployment of a third-generation network in Myrtle Beach, S.C. The build-out will give Verizon Wireless additional network capacity to provide digital voice and data services like Web browsing and streaming audio and video.
FIVE NEW WINDOWS FLAWS: Microsoft Corp. reported five new security flaws in its software, including one of "critical" severity that affects nearly all programs in its Office suite of software. The flaw appears in nearly all programs included in Microsoft Office 97, 2000 and XP - Word, Excel, PowerPoint and Access. It also affects other programs that use Microsoft Visual Basic technology, including its Visio 2000, 2002 and Project 2000 and 2002. The other four flaws are in Microsoft Office, Access, Word and Windows.
