The Akron Beacon Journal from Akron, Ohio • Page 6

The Beacon Journal Page BS, Wednesday, March 22, 1995 bad management" under Antonini and "superb execution" by its rivals, said analyst Robert Buchanan in a report for NatWest Securities Corp. Kmaet New leadership might increase store closings Continued from Page B7 Loral wins bid for Unisys system Company to buy military, aerospace units for $862 million. Acquisition has no effect on Akron operations military division. As the Pentagon's budget has dwindled, Schwartz has sought to keep pace with the quickly consolidating industry by acquiring other companies. "The acquisition will substantially increase our business with the Navy, Unisys' largest customer, and puts Loral in a good position to expand its business with the Navy into additional areas," Schwartz said.

"Mr. Schwartz certainly has been explicit that he's looking at further acquisitions," said Wolfgang Demisch, an analyst at BT Securities. "There's no question that he has a pretty good understanding of making money. He has an outstanding track record." The acquisition will have no effect on Loral's Akron operations. Loral bought IBM Federal Systems Co.

for $1.57 billion in 1993. Loral bought a missile business from LTV Corp. in 1992, and Goodyear Aerospace in 1987. Not including IBM Federal, Loral ranked ninth in fiscal 1993 in terms of sales to the Pentagon, with $1.7 billion in contracts. From staff and win reports New York: Loral Corp.

agreed yesterday to buy Unisys' defense and aerospace businesses for $862 million, beating bids from Raytheon Co. and General Motors Hughes Aircraft Co. unit. After contractual adjustments, the effective purchase price will be about $798 million, Loral said. Unisys Defense Systems "represents a strategic building block for Loral," said Bernard Schwartz, Loral's chairman and chief Unisys, based in Blue Bell, designs and makes computer-based information systems.

Unisys Defense Systems, made up of four business units, watched its annual revenue fall last year to $1.4 billion from above $2 billion. New York-based Loral makes defense electronic systems. The transaction, which has been approved by the boards of both companies, is expected to close in the second quarter. Loral has long been considered the most likely Duyer of Unisys' EPA extends negotiations with Warren's WCI Steel Inc. The next CEO will also have to work with a team of top executives handmcked bv Antonini.

"It just makes the job of whoev er comes in harder, in thathose people aren't beholden to him or her for their job," said Michael Zucker, spokesman for the Amalgamated Clothing and Textile Work ers Union, which holds Kmart shares and represents some warehouse workers. Kmart General Counsel Anthony Palizzi will take over as interim president, and Executive Vice President Ronald Floto will serve Is interim chairman of the management executive committee, while the company seeks a new chief executive. Kmart's shareholders 3iave blasted Antonini for the company's decline, criticizing his decision to invest in several specialty chains such as OfficeMax and The Sports Authority when the Kmart, discount stores were in need ofeno-vation or replacement. Wal-Mart has roared ahed of Kmart, posting roughly twice Kmart's sales in the fiscal year that ended in January. Kmart's $34.03 billion in sales still put it 5.9 percent ahead of the No.

3 retailer, Sears, Roebuck Co. Rft Ticker symbol: KEY (NYSE) Corporate headquarters: Society Building, Cleveland. Assets: $66.8 billion Chairman and CEO: Victor J. Riley President: Robert W. Gillespie Branches: 1,300 in 25 states Local subsidiary: Society National Bank First Choice conies on the heels of painful financial news for the company.

Plagued by rising interest rates, KeyCorp and other financial institutions have had to swallow hefty losses after selling off certain securities. KeyCorp took a $14 million onetime charge in the fourth quarter last year, and expects to take another $31 million in losses from sales in the first quarter of this year. -j Still, 1994 earnings came in! at a strong $853.5 million, or $3.45 per share, compared to $709.9 million, or $2.89 per share in 1993. At least one Wall Street firm seemed unimpressed with yesterday's news. S.G.

Warburg Co. lowered KeyCorp's rating to "hold" from "buy." In a research Warburg said KeyCorp shares have significantly outperformed the market and the brokerage firm's group of regional banks so far this year, but now the stock's price has caught up. Shares of NYSE-listed KeyCorp closed yesterday up to 285iL Beacon Journal wire services contributed to this report. ber 1992. More than anything even the company's performance it was shareholder criticism that forced Antonini's resignation, Chairman Donald Perkins said.

"I thought, frankly, that we were getting more done than we needed to do, but it became apparent as I listened to shareholders that they didn't agree," he said. Kmart, which has closed more than 100 stores in a year, has to decide whether hundreds of others are worth renovating and expanding or should be shuttered. Kmart has about 2,300 discount stores in the U.S., including two of its largest superstores in Montrose and Medina. Inventory management has been a continuing headache for Kmart, which in recent years put new computer systems in place but still cannot keep goods in stock. Kmart's problems may be too severe to fix as a result of "years of Key N.Y.

brokerage lowers firm's rating to 'hold' Continued from Page B7 real estate. Its goal is to sell corporations more trading, retirement planning and investment banking services. The bank also hopes to do more business with small companies, which now account for 422,000 customers and $2 billion in loans. Private banking services for the wealthy also will be expanded, Riley said. And the bank expects to use its automobile, credit card, student-loan and other consumer lending businesses to boost sales to younger people.

Eight months in the making, First Choice comes a little more man a year after KeyCorp and Society Corp. completed their much-touted "merger of equals." The combination created the nation's loth largest bank holding company. While Riley, who came to Cleveland from Albany's KeyCorp, is launching First Choice, Gillespie will see it through. Riley will turn the CEO reins over to Gillespie at the end of the year. An Akron banker will also have a hand in implementing the plan.

William S. Hann, who until last week served as Society's district president of the Akron area, is now working on the program with Gillespie in Cleveland. Canton district president Michael Gill is filling in for him in the interim. Both say talks about violations of water act have been going very well By Janet Moore Beacon Journal business writer The U.S. Environmental Protection Agency has agreed to extend negotiations with WCI Steel Inc.

through June over the Warren steelmaker's alleged violations of the Clean Water Act. WCI Steel was cited by the EPA in May 1992 for a number of alleged violations of the federal law some of which date back to April 1990. Among the violations cited in the le ,0 a tx j'C S( th cl CI "'Si "'si ai a ii -V ii "4 1 4 I 3 Advanced Elastomer Systems LP. is inching closer to Akron each day Acquisition Summervilles buys North Canton store Summervilles Inc. of Akron recently bought Whipple Office Sup-! ply, a 13-year-old business in North Canton.

Terms were not disclosed. However, Summervilles plans to close its site at 6605 Whipple Ave. NW and open a new facility in Canton. The new location has not been decided. Whipple Office Supply is the fourth acquisition in four years for Summervilles, a family-owned business started in 1940.

Contracts Goodrich division has a deal with Delta B.F. Goodrich Aerospace Lighting Systems will supply new aft anti-collision lights to retrofit Delta Air Lines' fleet of 120 MD-88 aircraft for an undisclosed amount. The lighting supplier is a division of B.F. Goodrich Co. of Bath Township.

CoMPcnnoN Judge says lawsuit fiy Ragu is too tardy Campbell Soup Co. has won the right to stir up more television commercials comparing the thickness of its Prego spaghetti sauce to that of Unilever's Ragu brand. A federal judge in New York, ruling in a suit brought by the maker of the rival sauce, found yesterday that Unilever took so long to sue that barring the ads would unfairly harm Campbell Soup. Television spots, first broadcast in 1988, compared Prego's Spaghetti Sauce to Ragu's Old World Style sauce. Utilities Job cuts are coming at East Ohio Gas Cleveland's East Ohio Gas Co.

is considering work force reductions, a spokesman said yesterday, but how many and when is unclear. Flat earnings and increased competition in the natural gas in-, dustiy is prompting the utility to pare the number of its employees, the company said. East Ohio hopes the cuts will be achieved through buyouts, but it isn't ruling out layoffs. An announcement on the reductions may come within weeks. Reports have said the cut may total 10 percent, or 250, of the company's employees.

Wall Street Market stages retreat in late profit-taking Stocks pulled back from their peaks yesterday after a sudden afternoon sell-off in the bond market prompted investors to collect profits. The retreat on Wall Street snapped a three-session string of record-setting advances in the Dow Jones industrial average, 1 which temporarily traded above 4,100 yesterday before abruptly reversing course in late action. It finished at 4,072.61, down 11.07 points from Monday's close. 'Exports Clinton appoints two from TRW, Ameritech President Bill Clinton appointed TRW Inc. Chairman Joseph T.

Gorman and Ameritech Corp. Chairman Richard Notebaert yesterday to serve on the Export Council, the White House said. The council advises the president on ways to expand U.S. exports. Economy Auto dealers tell Fed rates are high enough Car dealers warned the Federal Reserve yesterday against raising interest rates further, saying such a move would run the risk of a "serious downturn" in automobile sales.

"Dealers are currently experiencing a slowdown in retail sales," said the trade group's president, Leon Edwards, in a letter to Fed chief Alan Greenspan. The Fed has already raised rates seven times in just over a year. Higher lending rates tend to slow consumer spending and act as a brake on the economy. Computers Apple underestimated demand, chief admits Apple Computer Chief Executive Michael Spindler acknowl- edged the company had problems filling orders for top-of-the-line Power Macintosh PCs and other models because of poor planning and component shortages. were a little timid," in forecasting, Spindler said at a London press briefing.

"As a re- suit we left some money on the an agreement will be reached," she said, adding that a lesser fine could be involved. Jack Walter, a spokesman for WCI, declined to comment on the matter except to say: "We've been negotiating for quite a while and we're hopeful we'll reach a reasonable settlement." Recently, both sides agreed to extend talks to June 30 "based on recent progress in the talks," WCI said in a press release. WCI Steel makes flat-rolled steel used primarily by steel service centers, electrical equipment manufacturers, strip converters and the automotive and construction industries. came from the Crown. Divisions of the Allen Group.

Environmental coordinator Susanne Edmunds came from the Akron law firm of Guy, Lammert Towne. And buyer David Sexton came from General Tire. Company officials said AES remains on schedule to move its headquarters to Akron on Aug. 1. All of the new hires are currently splitting their time between Akron and St.

Louis. Ginter said the bulk of the 125 employees to be employed at the Akron headquarters will come from the current St. Louis headquarters. ing is impossible," he said. "Clearsighted vision will serve us well now and in the next century." Michelin declined to answer questions from reporters, although he did take questions from the audience at University of Akron's Shrank Hall for his morning lecture.

Michelin did not say why he accepted the Tire Society's request for him to speak when he usually shuns the spotlight. However, he said he does feel a certain kinship with the researchers. "As I look around this room, I am reminded of myself many years ago," he said. "Now I am managing partner of the company. But I have a secret to share with you: I will always be a researcher at heart.

I remember the hunger to explore, the challenge of testing, and the thrill of discovery." Is Your CD Costing You Too Much? Interest Rates Falling? Income Taxes Due? There Are Better Ways! For more information, call or write today! Ron Flowers, Jr. 3200 W. Market Ste. 201 Akron, OH 44333-3380 (216) 867-0550; 1-800-537-2183 THE OHIO NATIONAL COMPANIES EPA's administrative order: discharging wastewater into the Mahoning River with amounts of oil and grease, zinc and copper beyond EPA limits, and failing to maintain equipment to monitor discharge from the plant, said Phillippa Cannon, an EPA spokeswoman. If an agreement cannot be reached between the two, WCI could face a civil lawsuit and a mul-.

ti-million dollar fine. Technically the company could face fines of $25,000 a day since April 30, 1990, Cannon said. However, Cannon said such a fine is unlikely. "The fact that they've extended negotiations is a positive sign that ing personnel landscape of Akron-area companies as executives sip on to join the St. Louis company.

"We are very fortunate that Akron has such a large and talented work force," said William J. Ginter, AES vice president. "We expect to be able to select from some of the finest people in the polymer industry." Of the seven new AES executives announced yesterday, four came from Akron-area companies. Senior systems analyst Teresa Boyer worked for GenCorp Inc. Lead systems analyst Dana Emch a joint venture with its fiercest European competitor, Continental AG of Germany.

And there was no discussion of the company's 1994 sales, which were up for the first time since 1991. There was also no mention of Michelin's ongoing relocation of Uniroyal Goodrich headquarters from Akron to Greenville, S.C. Instead, Michelin, known as the developer and first marketer of the radial tire, focused on the company's use of new technology. "At Michelin, we say that 100 years of history has taught us noth- Cards Creator shrugs off suggestions of sexism Continued from Page B7 the differences between men and women. One card, designed for men to send, talks about never stopping for directions.

"I'd be lost without you. Although I'd probably refuse to admit it and just keep driving," it reads. Another, for women to send to men, talks about a woman's clothing compulsion. "I love you even more than shoes! Besides, you're more fun in the closet." McGrath shrugs off the suggestion these sentiments are somehow sexist. After all, the very premise of the line is the differences between the sexes that can't be ignored.

"People really feel this way. Test marketing shows these sorts of cards do really well," she said. "It comes down to the fact that relationships are important to people. No matter how much we complain, we all want to be in love." Staying in tonight? Check the viewing choices on The Beacon Journal TV page. age monthly aga monthly 49 23.50 60 7D.Z8 60 $31.90 65 $122.80 Sava money ill amounts CU NOW for FRFE QUOTE 1 I- mi -T.

Mi. 1 a.lUfKIHJ Complete Printing Service Call for an Estimate Full Color Pocket Folders Carbonless Forms Envelopes Broch ures Binding Newsletters Pickup Delivery Service mmmnm saps by Glenn Gamboa BeaconJoumal business writer Signs that Advanced Elastomer si Systems L.P. Is moving its world headquarters to Akron are becoming more visible every day. There's the towering crane that looms over the former B.F. Good-.

rich buildings. There's the constant buzz of workers readying the downtown structures at the comer of Main and Exchange streets for the headquarters of the world's leading maker and marketer of thermoplastic rubber. And now there's the ever-chang Tire Michelin usually shuns the spotlight Continued from Page B7 his company and its role in the future of the tire industry. No mention was made of what analysts call an innovative agreement to launch BEACONLine For the latest prices of your stocks or funds call: 996-3999 HOW TO USE BEACONLINE BEFORE YOU CALL, find out the ticker symbol for your stocks or funds. The ticker is not the abbreviation in the Beacon Journal's stock pages.

CONVERT the ticker symbol to a BeaconLine numerical code: A21 B22 C23 D31 E32 F33 G41 H42 1 43 J51 K52 153 M61 N62 0 63 71 Q01 72 S73 T81 82 V83 W91 X92 Y93 Z03 tn -12 "13 EXAMPLE: GT 41 81, press CALL 996-3999. Once connected press 1999 and, when prompted, enter the appropriate stock code followed by FOR MORE historical information on stocks press To inquire about another stock or mutual fund, press at any time and start again. NOTE: Stock information is delayed by no more than 15 minutes: fund information is updated at 6 p.m. Quotes received through BeaconLine are not intended for the purposes of buying or selling securities but for information only. Sponsored by: The Beacon Journal Selected world gold prices, Tuesday.

Hons Kong late: $382.55, off 10.20. London morning fixing: $382.60, up $0.40. London afternoon fixing: $382.90, up 10.70. London late: 1383.25, up $1.00. Paris afternoon fixing: $383.45, up $2.97.

Frankfurt fixing: $383.18, up $0.07. Zurich late afternoon: $383 00, up $1.00. NY Handy Harmon: $382.90, up $0.70. NY Handy Harmon fabricated: $384.40, up $0.70. NY Engelhard: up $0.70.

NY Engelhard fabricated: $403.41, up $0.73. NY Comex gold spot month close Tue. $382.30, off $0.60. NY Republic National Bank 4 p.m. Tue.

$381.80, off $0.90. 03-21 95 1559 AT AKRONC ANTON'S PREMIER BUSINESS SHOW am Tttil Weds. March 22, 1995 John Knight Center 4 to PM Small Business News Presents mm 1. l'M- Mi -j- Win $5,000 in the Money Bubble free Hots d' oeuvres Cash Bar Ooor Prizes Mertainment 1-800-539SHOW National City Bank I860.