Business today

Compiled from Times wires

© St. Petersburg Times, published October 20, 2000

TRADE DEFICIT FALLS: America's trade deficit shrank to $29.4-billion in August, the lowest level in six months. The Commerce Department said U.S. exports and imports climbed to record levels. The August imbalance between what America sells abroad and what it buys from foreign nations dropped by 7.1 percent from the record high of $31.7-billion set in July. Even with the August improvement, the deficit for this year is running at an annual rate of $353-billion, far above last year's record deficit of $265-billion.

WEEKLY JOBLESS CLAIMS DROP: The number of U.S. workers filing new applications for state unemployment benefits fell by 7,000 to a seasonally adjusted 307,000 in the week ended Oct. 14, Labor Department figures showed. The four-week moving average for claims, considered a less volatile gauge of labor market conditions, dropped to 302,750 last week from 303,500 the previous week.

HOSPITAL SALE: Quorum Health Group Inc. of Brentwood, Tenn., is being acquired by Triad Hospitals Inc. of Dallas for $2.4-billion in cash, stock and assumption of debt. The deal will create the third-largest, for-profit hospital chain in the nation, with 53 hospitals and 14 ambulatory surgery centers in small and midsize markets. The two companies have a similar heritage: In 1989, Quorum was spun off from Hospital Corporation of America, which became Columbia/HCA Healthcare Corp. Triad was spun off from Columbia in May 1999. Last month, Quorum agreed to pay a $95.5-million fine to settle Medicare fraud charges. Neither company has facilities in the Tampa Bay area.

MONEY MANAGER FACES FRAUD CHARGE: Naples money manager David M. Mobley, 44, was charged with 20 counts of fraud and money laundering in connection with a scam that cost investors $120-million in an indictment unsealed Thursday. U.S. Attorney Donna A. Bucella said Mobley bought houses, luxury cars and jewelry with money investors turned over to his Maricopa International Investment Corp. for management. He also is accused of diverting funds to several failed business ventures and charities.

TECH DATA NAMES INFORMATION CHIEF: Clearwater-based Tech Data Corp. appointed Joseph A. Osbourn to be its new chief information officer. Osbourn, who held senior management posts at Kmart Corp., Walt Disney and Price Waterhouse, will be responsible for managing Tech Data's worldwide information technology systems. He will report to Nestor Cano, Tech Data's president of worldwide operations. Osbourn replaces H. John Lochow, who left Tech Data in August to pursue another opportunity.

NEW CALL CENTER FOR TAMPA: Computer Generated Solutions Inc., a New York company that helps businesses set up and operate information technology systems, will open a 42,000-square-foot customer support center in Tampa next month. The center will house 400 agents, who will help answer questions about computer systems deployed by Computer Generated's customers.

NAMING DEAL FALLS APART: A $13-million deal to put the Miami Herald's name on the Broward County convention center has collapsed over a ticket surcharge dispute. Herald publisher Alberto Ibarguen said the proposed 15-year deal fell apart Wednesday after the sponsors of the center's annual boat show objected to a $1-a-ticket surcharge, which the newspaper planned to deposit with its charities. The Herald had agreed to pay $7.1-million cash and give $6.3-million in free advertising in return for the naming rights.

GILLETTE OUSTS CEO: Gillette Co. ousted chief executive Michael Hawley after 18 months on the job following a series of lowered sales and earnings forecasts. Its shares rallied 15 percent to $32.63. Warren Buffett, chairman of Berkshire Hathaway Inc. and Gillette's largest investor, said on a conference call with analysts that the board unanimously concluded that a change in management was needed. "We can do better with a new CEO than we were doing," Buffett said. President Edward DeGraan was named acting CEO. Buffett said a CEO search will include inside and outside candidates.

IRS TARGETS OFFSHORE CREDIT CARD ACCOUNTS: In a sweeping tax-evasion probe that could affect thousands of people, the Internal Revenue Service went to court to seek records on U.S. taxpayers with credit card accounts in three offshore banking havens. Credit, debit and charge cards at banks in the Bahamas, Cayman Islands and the country of Antigua and Barbuda are covered by federal court petitions filed Wednesday against American Express Travel Related Services Co. and MasterCard International. The IRS expects thousands of accounts created by U.S. citizens and residents to be involved. The investigation, under way for two years, targets tax evaders and non-filers.

TWO ANALYSTS RATE WINN-DIXIE "SELL': Two analysts have advised investors to sell shares of Winn-Dixie Stores Inc. Last week, Credit Suisse First Boston analyst Edward P. Comeau rated Winn-Dixie a "sell," joining UBS Warburg analyst Neil Currie, who has maintained a "sell" rating since July. "Two strong sells is highly unusual," said Chuck Hill, director of research at First Call Corp., a Boston firm that compiles analysts' forecasts. Said Winn-Dixie spokesman Mickey Clerc, referring to the two sell ratings: "We don't know why they would be recommending that." Winn-Dixie's stock has fallen out of favor because of a string of disappointing earnings reports. The stock fell as low as $13.44 in August, its lowest level in 11 years. Winn-Dixie shares closed at $17.25, up 31 cents.

Earnings

First Union Corp.

Shares in the Charlotte, N.C., bank rose 4 percent as it beat Wall Street consensus estimates on third-quarter profits by 2 cents a share.

The bank, the sixth-largest in the country and second-largest in Florida, blamed rising interest rates and expenses in posting a 12 percent drop in operating income to $702-million. Including a net gain of $150-million in the latest quarter from selling credit car and mortgage servicing portfolios, net income was up 6 percent from a year ago.

Chief executive G. Kennedy Thompson said First Union has "turned the corner" in customer service problems and saw a net increase in customers in the quarter ended Sept. 30. First Union shares rose $1.19 to $28.38.

Net Income 3rdQtr $852-mil, Year Ago $802-mil

Per Share 3rdQtr 87 cents, Year Ago 84 cents

UAL Corp.

Flight cancellations and delays resulted in the first money-losing quarter in five years for the parent of United Airlines. UAL's report includes several one-time adjustments that, if excluded, made the Chicago company's loss $1.29 a share -- still far worse than the 54 cents a share loss expected by analysts. UAL's third quarter ended Sept. 30.

Revenue 3rdQtr $4.9-bil, Year Ago $4.8-bil

Net Income 3rdQtr -$116-mil, Year Ago $359-mil

Per Share 3rdQtr -$2.30, Year Ago $2.89

McDonald's Corp.

The Oak Brook, Ill., restaurant chain said income rose 1.4 percent in the quarter ended Sept. 30, its smallest increase in almost three years. McDonald's cited falling foreign currencies for much of its problems in the quarter. Results met analysts' revised estimates.

Revenue 3rdQtr $3.75-bil, Year Ago $3.44-bil

Net Income 3rdQtr $548.5-mil, Year Ago $540.9-mil

Per Share 3rdQtr 41 cents, Year Ago 39 cents

Sears, Roebuck and Co.

Sales of appliances, electronics, lawn and garden and sporting goods offset lackluster results in apparel sales. The Hoffman Estates, Ill., company bought back 6.4-million shares during the quarter ended Sept. 30, improving the per-share earnings figure. Results beat Wall Street estimates by a penny.

Revenue 3rdQtr $9.63-bil, Year Ago $9.20-bil

Net Income 3rdQtr $278-mil, Year Ago $236-mil

Per Share 3rdQtr 81 cents, Year Ago 62 cents

Equifax Inc.

The Atlanta-based provider of consumer credit information reported an 11 percent increase in net income. Equifax also said it sold its collection services businesses in the United States, Canada and United Kingdom. Results beat analysts' forecasts by a penny.

Revenue 3rdQtr $517.9-mil, Year Ago $444.4-mil

Net Income 3rdQtr $64.3-mil, Year Ago $58.1-mil

Per Share 3rdQtr 47 cents, Year Ago 42 cents

Allstate Corp.

The Northbrook, Ill., company, the nation's No. 2 auto and home insurer, reported strong growth in its auto and homeowners insurance lines and lower catastrophe losses during the quarter ended Sept. 30.

Revenue 3rdQtr $7.44-bil, Year Ago $6.55-bil

Net Income 3rdQtr $644-mil, Year Ago $490-mil

Per Share 3rdQtr 87 cents, Year Ago 62 cents

Raytheon Co.

Earnings from continuing operations for the Lexington, Mass., company met Wall Street's expectations of 39 cents per share for the quarter ended Sept. 30.

Revenue 3rdQtr $4.16-bil, Year Ago $4.12-bil

Net Income 3rdQtr $105-mil, Year Ago -$163-mil

Per Share 3rdQtr 31 cents, Year Ago -48 cents

BellSouth Corp.

The Atlanta phone company said it added more than 1-million international wireless customers in the quarter ended Sept. 30, while its digital subscriber line customers grew 81 percent since June. This month, the company finalized its new wireless joint venture with SBC Communications, named Cingular Wireless, creating the nation's No. 2 wireless carrier. Analysts had expected BellSouth to show a net profit of 54 cents per share.

Revenue 3rdQtr $6.9-bil, Year Ago $6.42-bil

Net Income 3rdQtr $1.04-bil, Year Ago $994-mil

Per Share 3rdQtr 55 cents, Year Ago 52 cents

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