TECH DATA GETS LCD DEAL: Tech Data Corp. has been selected by Westinghouse Digital as the first broadline distributor to carry its complete line of LCD displays. The Clearwater distributor of computer equipment will provide LCD displays to resellers nationwide. Tech Data did not project how much the deal could add to revenues. But it pointed out one industry forecast that the LCD panel market could rise 56 percent to $37-billion this year because of increased demand for LCD TVs and computer monitors.
OIL PRICES DROP: Oil futures dropped by nearly $1 per barrel Monday despite more sabotage of Iraqi oil infrastructure, reinforcing the view among traders that prices had risen too fast this summer. There were also signs Monday that a peace deal reached in Najaf, Iraq, last week could spread to other parts of the country, raising hopes that saboteurs might stop attacking oil pipelines. Light sweet crude for October delivery plunged by 90 cents to $42.28 on the New York Mercantile Exchange. Also Monday, the Commodity Futures Trading Commission said a seven-month investigation into last year's surging natural gas prices yielded no evidence that markets were manipulated.
TWINKIE MAKER'S STOCK SINKS: Interstate Bakeries Corp. shares fell 42 percent Monday after the nation's largest wholesale baker said it had missed another deadline for its annual report. The Kansas City, Mo., maker of Wonder bread and Hostess snack cakes also said it has retained the turnaround firm of Alvarez & Marsal, and it is talking to its lenders. Interstate Bakeries shares closed at $4.56, down $3.34, on the New York Stock Exchange, after 3.9-million shares changed hands, compared with normal daily trading of 456,000 shares.
TYSON PULLS BACK FORECAST: Shares in Tyson Foods Inc. fell more than 8 percent Monday after the company lowered its earnings forecast for the fiscal year, saying attempts to hedge grain prices backfired as demand for beef weakened. The Springdale, Ark., company said it expects to earn between $1.08 and $1.15 per share for the fiscal year ending Oct. 2, down 18 cents a share from its earlier forecast, which was raised after third quarter profits more than doubled. Tyson said Monday its earnings will include a charge of 11 cents per share for the effects it has felt from the drop in beef business that followed the mad cow scare. The company also said it expects to see earnings reduced by 7 cents per share for plant closings in the first nine months of the fiscal year. In trading on the New York Stock Exchange, Tyson shares fell $1.47 to close at $16.26.
JAPANESE COURT APPROVES BANK MERGER TALKS: Japan's Supreme Court on Monday said merger talks could proceed between troubled UFJ Holdings Inc. and Mitsubishi Tokyo Group Inc. - the latest development in an escalating battle among the country's top banks to potentially create the world's largest banking company. The decision was a setback for rival Sumitomo Mitsui Financial Group, which has offered $29-billion to purchase UFJ and taken unusually aggressive steps to block a tie up between the other two. Presiding judge Toyozo Ueda upheld a previous court decision to allow UFJ to carry on negotiations with Mitsubishi Tokyo, said Supreme Court spokesman Takeshi Mamada. With combined assets of about $1.7-trillion, UFJ and Mitsubishi Tokyo would create the world's largest bank with assets, surpassing U.S.-based Citigroup Inc.'s $1.19-trillion. A combination of UFJ and Sumitomo Mitsui would also create the world's biggest banking group with assets of $1.67-trillion.
AARP NAMES BEST EMPLOYERS: Thirty-five employers from across the United States have been selected by the AARP as this year's "Best Employers for Workers Over 50." The three Florida businesses included on the list were Lee County Electric Cooperative in North Fort Myers; WELBRO Building Corp. in Maitland; and Westgate Resorts in Orlando. Others included the Methodist Hospital in Houston; Pitney Bowes, Inc.; Principal Financial Group; Scripps Health in San Diego; the Vanguard Group; and Volkswagen of America, Inc. In the annual evaluation by AARP, companies are reviewed in categories such as recruitment practices, continuing opportunities for advancement, flexible work schedules, and benefits for current and retired employees. "The winning employers stand as exemplary models for others who have yet to plan for the graying of their workforce," said Deborah Russell, who directs the annual Best Employers program for AARP. Fourteen percent of the U.S. workforce today is 55 and older, and by 2012 the number is expected to increase to 19 percent.
SHERWIN-WILLIAMS GETS ANTITRUST CLEARANCE TO BUY PAINT SUNDRY: Sherwin-Williams Co. has received antitrust clearance from the Federal Trade Commission to buy Paint Sundry Brands Corp., a privately held maker of paint brushes and rollers. The agency said it granted early termination Thursday of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act. Sherwin-Williams agreed early this month to acquire Paint Sundry Brands for about $295-million. Paint Sundry of Philadelphia sells products under several brand names, including Purdy, Bestt Liebco and Symphony. Its primary markets are professional contractors and do-it-yourself users. Sherwin-Williams, a Cleveland maker of paint, coatings and accessories, has been targeting those markets under its strategic plan.
MARTHA STEWART'S FORMER STOCKBROKER BANNED: Martha Stewart's former stockbroker, convicted of helping her lie about a 2001 stock sale, has been barred from ever again working for a broker or investment adviser. Peter Bacanovic and the Securities and Exchange Commission agreed to the ban Friday. Bacanovic and Stewart were each sentenced to five months in prison and five months of house arrest after their conviction in March. They are free pending appeal. Bacanovic spokesman Lou Colasuonno said, "We're happy to have this behind us, and we're still moving forward on the appeals process." Bacanovic would have to reapply to the SEC if he wanted to work again for a brokerage. It was not immediately clear if he would have to go through a waiting period. Prosecutors alleged Bacanovic tipped off Stewart that her friend Sam Waksal was dumping shares of his biotechnology company, ImClone Systems. Waksal had advance word of a negative government report on an ImClone cancer drug. Stewart and Bacanovic maintained she sold because they had a standing agreement to unload the stock when it fell to $60.
US AIRWAYS TALKS RESUME: Talks between US Airways Group Inc. and the union representing pilots have resumed, the Air Line Pilots Association said Monday. The pilots' negotiating committee met with management Sunday, a week after talks broke down, said Jack Stephan, spokesman for the pilots' group. The pilots offered a proposal on Saturday, and the company presented a counterproposal Sunday, said Stephan, who declined to comment on specifics. Discussions resumed Monday morning after both sides recessed for the night, union officials said. US Airways has said that new labor deals with unions are necessary to avoid a return to bankruptcy court and possible liquidation. The airline has warned that bankruptcy looms if deals are not reached by at least Sept. 30. US Airways shares rose 27 cents, or nearly 15 percent, to $2.12 Monday on the Nasdaq Stock Market.
WORLD BEER OUTPUT UP: Global beer production increased for the 19th consecutive year in 2003, with China remaining the top producer with its output accounting for 17.1 percent of the world production, Kirin Brewery Co. said Monday. The world's beer output in the reporting year totaled 147.16-million kiloliters, up 2.0 percent from 2002, according to Japan's major beer brewer. China produced a total of 25.10-million kl of beer in 2003, up 7.0 percent from the previous year. It ranked top for the second consecutive year. The United States came second, with output of 23.08-million kl, or 15.7 percent of the world output. But its annual output represents a 1.6 percent fall from that in 2002. Germany ranked third with an output of 10.53-million kl, down 2.1 percent, followed by Brazil with 8.52-million kl, down 2.3 percent, and Russia with 7.57-million kl, up 7.8 percent. Japan was at seventh place with 6.53-million kl, including output of "happoshu" low-malt beer, down 6.5 percent. In 2002, Japan was at sixth, but in 2003 Mexico surpassed Japan with output of 6.64-million kl, up 4.3 percent, to rank sixth.
