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Compiled from Times wires
© St. Petersburg Times, published May 2, 2001
MANUFACTURING INDEX SLOW TO RECOVER: An index of U.S. manufacturing was little changed in April, a sign factories are making slow progress digging out of their slump. The National Association of Purchasing Management's factory index increased to 43.2 last month from 43.1 in March. A reading below 50 signals contraction; the index has been below that level since August. The index dropped to 41.2 in January, the lowest level in nearly a decade. More than a third of manufacturers surveyed said they are concerned about business this year.
CONSTRUCTION SPENDING STILL CLIMBING: Construction spending rose in March for a fifth straight month, led by work on office buildings, home improvements and public works, the Commerce Department said. Spending increased 1.3 percent in March to a record $854.4-billion at an annual rate. Analysts expected total construction spending to rise 0.2 percent. Mortgage rates that fell in March to the lowest in two years allowed consumers to refinance and use proceeds for home improvements. Lower rates also have kept home sales strong.
DANKA OFFER EXTENDED AGAIN: Danka Business Systems for the second time has rolled back the deadline for short-term noteholders to accept a watered-down return on their investment. The St. Petersburg copier distributor pushed back the deadline from April 30 to May 31 as it tries to convince at least 95 percent of noteholders to buy into the plan. Holders of about $145-million in notes, or 73 percent of the $200-million in short-term debt, had tendered offers as of Monday. The option of an all-cash payout has been oversubscribed, so some investors who want cash will have to settle for receiving new notes. As part of its restructuring, Danka also is trying to reach a new long-term debt agreement with its senior lenders.
DOW CHEMICAL EXPANDS JOB CUTS: Dow Chemical Co. plans to cut 4,500 jobs, or 8 percent of its work force, doubling its earlier estimate as it looks to bolster savings from its purchase of Union Carbide. Dow Chemical said it plans to cuts annual costs by $1.1-billion by early 2003, more than twice its $500-million projection when the takeover of Union Carbide was announced in 1999. The $7.3-billion deal was completed Feb. 6.
NEWSPAPER LAYOFFS: The New York Times Regional Newspaper Group has cut staffs at its 14 newspapers in six states, laying off about 100 employees in a response to slowing advertising and a cloudy economic outlook. The cuts were part of reductions parent company the New York Times Co. announced in April. The regional newspaper group, based in Tampa, includes newspapers in Florida, North Carolina, South Carolina, Alabama, Louisiana and California. The Sarasota Herald-Tribune had the largest number of cuts to make, with 19 people laid off from a staff of about 630. The newsroom lost three people, including controversial art and architecture critic Joan Altabe. Altabe, 66, questioned the decision to eliminate her position. "I'm all the visual-arts community has, and you're not going to have it," she said.
MUSIC MERGER CANCELED: EMI Group PLC has called off talks aimed at merging its music publishing business with that of German media group Bertelsmann AG, blaming insurmountable regulatory hurdles. A combined EMI-Bertelsmann would have been the world's largest recorded music company, with a market share of 26 percent. EMI owns the Virgin, Priority and Capitol record labels. Bertelsmann Music Group's roster includes Whitney Houston, the Backstreet Boys and Britney Spears.
NEXTEL PLANS JOB CUTS: Nextel Communications Inc. plans to cut 850 jobs, or 5 percent of its work force, to reduce costs after reporting a larger than expected $428-million loss for the first quarter. All of the cuts will be in the United States, the company said. The wireless telephone company's loss of 56 cents a share exceeded analysts' estimates by 5 cents a share.
FIRST CITRUS CONSIDERS OFFERING: First Citrus Bank, a fast-growing Tampa bank near Citrus Park Mall, is trying to raise $2-million in a secondary stock offering. President and CEO John Barrett said the funds will be used to open a branch in North Tampa and possibly additional locations. Launched in early 1999, First Citrus has more than doubled over the past year, recently surpassing $50-million in assets. It opened a second branch in South Tampa five months ago.
ICAHN SEES NEW TARGET: Billionaire financier Carl Icahn is trying to take control of Visx Inc., the leading manufacturer of laser eye surgery machines. Icahn, who wants to buy Visx for $32 per share, halted an effort to install his own board of directors, saying he believes Visx "has a sincere interest" in selling. Visx chief executive Liz Davila said she was pleased with the latest development in the contentious takeover battle, adding she would let Icahn review the company's books if he signs a confidentiality agreement. Visx shares closed at $20.72, up 47 cents.
DROP THE DOT-COM: Given today's beaten-up market for tech stocks, Kforce.com Inc. officials think the dot-com part of their company's name has lost its usefulness after a two-year run. They want shareholders of the Tampa staffing company to approve changing the name to Kforce Inc. at the company's annual meeting June 18.
ATLANTIC GULF DECLARES BANKRUPTCY: Atlantic Gulf Communities Inc., once one of Florida's largest landowners, filed for Chapter 11 bankruptcy protection in the face of continuing financial losses. The Miami developer of home lots in Florida, Texas, North Carolina and Colorado listed $148.5-million in assets and $170.2-million in debts in papers filed in U.S. Bankruptcy Court in Wilmington, Del. The land development company once was known as General Development Corp., which filed for bankruptcy in 1990. Four former GDC executives were convicted in 1992 of conspiring to bilk 10,000 Florida home buyers out of $117-million through deceptive sales practices. The company pleaded guilty to fraud, agreed to set up a $169-million restitution fund and reorganized with new management.
WINDOWS 2000 PATCH RELEASED: Microsoft Corp. has released a patch to fix a security flaw in a printing component that could allow a hacker to gain complete control, in a matter of seconds, of a Web site running Windows 2000 Internet server software. A fix is available on the company Web site.
Publix Super Markets Inc.
The Lakeland supermarket chain said net income rose 6 percent during the first quarter while sales in stores open more than one year increased 4.1 percent. Publix, which is employee-owned, said the price of its privately traded stock increased 25 cents a share to $48.50.