PRODUCTIVITY NEWS BODES WELL FOR HIRING: The productivity of America's workers grew modestly in the final three months of 2003, raising hopes that companies will step up hiring to meet demand rather than relying solely on increased efficiency. The Labor Department reported Thursday that productivity - the amount an employee produces for every hour on the job - grew at a 2.7 percent annual rate from October through December. Although that was a slowdown from the 9.5 percent rate for the three previous months, it nevertheless was a respectable pace that bodes well for the economy's recovery, analysts said. For all of 2003, productivity grew by 4.2 percent, after a 4.9 percent increase in 2002.
LAYOFFS MAY BE LEVELING OFF: New claims for unemployment benefits rose last week by a seasonally adjusted 17,000 to 356,000, the Labor Department said. Some of the increase was related to bad weather in some states, which caused weather-sensitive companies to lay off workers, a government analyst said. Even with the rise, claims have been below 400,000 for 18 straight weeks, a sign the pace of layoffs is stabilizing, analysts said.
SOUTHTRUST BUYS LAKELAND BANK: FloridaFirst Bancorp of Lakeland is being bought by SouthTrust Corp., strengthening the Birmingham, Ala., bank's foothold in Central Florida. SouthTrust is paying $146-million, or $27.12 per share, for FloridaFirst's outstanding stock, the banks said Thursday. The deal ends an odd saga for FloridaFirst, which was originally going to be sold to BB&T of Winston-Salem, N.C., for $135-million. Regulators rejected that deal early last year on procedural grounds. In the meantime, BB&T acquired Republic Bank of St. Petersburg, which was considered to be another suitor for FloridaFirst. As recently as mid December, BB&T said it was still interested in buying the Lakeland bank. FloridaFirst has $821-million in assets and operates 19 branches: 10 in Lakeland, two in Winter Haven, four in Bradenton and one each in Sebring, Avon Park and Wildwood.
SEMBLER INTEREST IN MALL BOUGHT: New Plan Excel Realty Trust Inc., a real estate investment investment trust based in New York, has bought out its joint venture partner in the redevelopment of Clearwater Mall. New Plan did not disclose the price paid to Sembler Co. of St. Petersburg, the developer and mall manager, which owned 50 percent of the project. New Plan takes over management of the shopping center, which is 95 percent leased.
DON PABLO'S OWNER FILES UNDER CHAPTER 11: Avado Brands Inc. of Madison, Ga., parent of the Don Pablo's Mexican Kitchen restaurant chain and Hops Grillhouse & Brewery, filed Wednesday to reorganize under Chapter 11 of the Federal Bankruptcy Code. Avado said it reached agreement with DDJ Capital Management LLC for a $60-million loan to help fund operations during reorganization. The company said it would continue negotiations with secured lenders and bondholders to develop a recovery plan. Avado listed $228-million of assets and $263-million of debts in the filing in U.S. Bankruptcy Court in Dallas.
MICROSOFT LAWYER TO HEAD ANTITRUST PANEL: Microsoft Corp. associate general counsel Richard J. Wallis takes over as chairman this summer of the American Bar Association's antitrust section, a committee that influences how much oversight U.S. courts exercise in antitrust settlements like the one the company negotiated with the Bush administration. The debate over how aggressively federal judges should scrutinize these settlements is pivotal in the next major ruling in Microsoft's long-running antitrust case, a decision that could come as early as today. A U.S. appeals court is considering whether the landmark settlement Microsoft negotiated with the Justice Department in late 2001 was tough enough.
EARNINGS
Medical Technology Systems Inc.: The Clearwater drug packaging company said sales rose 25 percent in the quarter ended Dec. 31 due in part to the successful sale of three packaging machines. The company said it is on track to sell six to eight of the new pill-packaging machines this year.
AutoNation Inc.: The Fort Lauderdale company, the nation's largest car retailer, reported slightly lower earnings for the quarter ending Dec. 31 even as revenues rose. It said costs cut into profit from new-vehicle sales.
PepsiCo Inc.: Buoyed by strong gains in its Frito-Lay snacks unit and its North American beverage unit, the Purchase, N.Y., corporation posted a 30 percent rise in earnings.
