The Cincinnati Enquirer from Cincinnati, Ohio • Page 17

0 NYSE C-3 AMEX C-7 MUTUALS C-4 NASDAQ C-6 EDITOR: KERRY KLUMPE, 369-1009 THE CINCINNATI ENQUIRER WEDNESDAY, JULY 10, 198S Portfolio Tax Credits Aid AFC Quarterly Profits 1340. 5 1320 -H- 1300. 1280. 1260. 1240.

ny reported net Income of $8.52 million for the period. That was substantially below the $18.95 million it earned in the first quarter last year, however. "The provision (credit) for income taxes reflects effects of substantial amounts of tax-exempt Interest, dividend credits, long-term capital gains, as well as amortization of goodwill," the report said. "No significant amount of federal Income taxes is payable or recoverable at March 31, 1985." Mission has lost large sums of money In the last year, and last March American Financial agreed to provide Mission with an additional $75 million in new statutory capital and surplus. American Financial also owns major Investment positions in Fisher Foods United Brands Penn Central FMI Financial Corp.

and Circle Corp. It also wholly owns Hunter Savings Association, which recently bought the failed Home State Savings Bank of Cin-. cinnatl. BY GREGG FIELDS The Cincinnati Enquirer American Financial losses In the property and casualty insurance business increased dramatically In the first quarter of the year, and the company reported a profit only after accounting for income tax credits, according to a report filed with the Securities and Exchange Commission. The report says American Financial had losses of $279.28 million on Its property and casualty Insurance business In the first quarter.

That was up $48.1 million from $231.18 million during the same period last year. "Earnings were insufficient to cover fixed charges and preferred dividends by $34.6 million in the first quarter of 1985," American Financial's report says. The privately held company Is controlled by financier Carl Lindner, who is chairman. Company officials weren't available for comment. AMERICAN FINANCIAL Is a holding company that derives about 75 of its $2 $317.86 million, up $40.1 million from $277.73 million in the first three months of 1984.

Sean Mooney, senior vice president of the Insurance Information Institute in New York City, said American Financial's situation mirrors the difficulties of other propertycasualty Insurers. "There's a definite turnaround under way in terms of revenues coming In," he said, noting that premiums paid, rose 15.3 in the first quarter. "On the other hand, concerning money going out, things still don't look so good," Mooney said. "On an annualized basis, the first quarter results (for the industry) were worse than all of 1984." THE PROPERTY and casualty industry operated at a loss In 1984, Mooney said. American Financial recorded a loss of $45.36 million for the year.

American Financial said it lost $4.06 million during the quarter before income taxes. However, because of income tax credits of $12.58 million, the compa billion In annual revenues from Insurance operations. American Financial's largest insurance operation Is Great American Insurance Cos. The company Is also a controlling shareholder In the deeply troubled Mission Insurance Group, which recently received $75 million in new statutory capital and surplus from American Financial. Lindner was recently elected chairman.

AFC is also a major Investor in and Lindner is chairman of Fisher Foods United Brands Co. and Penn Central Corp. Hunter Savings Association, which recently purchased the failed Home State Savings Bank of Cincinnati, Is an AFC subsidiary. In its SEC report, American Financial blames the Insurance deficits on "continued unfavorable underwriting results in the personal and commercial lines of business." American Financial also said it has undertaken efforts to turn the situation around. "Significant rate increases" resulted in premium income increasing to 25 26 27 28 1 2 3 6 8 June July Dow Jones 30 Industrials High And Oom (by whit dot) Turner Concedes CBS Stock Plan Could End Bid On The Inside SEC's proposed merger rules, Page C-2.

FCC's media merger agenda, Page C-2. BY BILL McCLOSKEY The Associated Press and TOM BRINKMOELLER The Cincinnati Enquirer Broadcaster Ted Turner said on Tuesday CBS offer to buy back close to $1 billion of its stock would make it extremely difficult "if not Impossible" for his offer for the media company "to have any chance whatsoever." Turner has asked the Federal Communications Commission to block the CBS offer as "an unauthorized and unapproved change of control" of the corporation. The CBS proposal, made last Wednesday, offers $40 cash and $110 In securities per share for up to 21 of CBS' stock. It expires July 31. Turner said the offer "puts incredible time pressure on us." He refused to discuss the possibility of sweetening his offer to trade high-yield, high-risk securities which he values at $175 a share in a cashless exchange for CBS stock.

Analysts have estimated the value of Turner's offer at $150 a share. TURNER WAS asked during an appearance In Washington, "Are you going to put up a cash offer to counteract the CBS proposal to the shareholders?" "I really can't comment on that at this time," Turner replied. "We are investigating right now since last Wednesday changed everything we're looking at a number of possible options." Turner also told the National The Cincinnati EnquirerDick Swaim DENNIS YABLONSKY sits at his desk at dncom Systems Inc. Press Club he has "no plans to get rid of Dan Rather" if the Atlanta-based Turner Broadcasting System were to get control of CBS. Rather Is the anchorman of the "CBS Evening News" and the conservative group, Fairness in Media, has singled him out as a symbol of what It calls the network's liberal bias.

However, Turner said he would take steps to make sure that CBS makes its airwaves available to a wide range of speakers with various points of view. THE LUNCHEON speech was Turner's first comprehensive discussion of his effort to wrest control of CBS from the current management. He said his effort has cost his Turner Broadcasting System $15 million so Turner accused CBS of short-changing its stockholders by including "sweetheart deals" in these proposals which would unduly benefit the company's current chairman, Thomas Wy-man, and the CBS founder and former chairman, William Pa-ley. He called last week's CBS actions "drastic measures" designed to prevent a takeover. (Please see TURNER, Page C-2) Yablonsky Rockets To Top Cincom President, 33, Rose Quickly Through The Ranks lIMfcMifeHMraHTil 3 Uncertainty Mars, Stock Averages The stock market fell for the second straight session Tuesday amid uncertainty over the outlook for interest rates and the economy.

Computer issues showed a broad loss in a session of moderate activity on Wall Street. The Dow Jones average of 30 industrials, down 6.04 on Monday, dropped another 6.50 to 1,321.91. Volume on the New York Stock Exchange reached 99.06 million shares, up from 83.67 million the day before. EARNINGS IBM DOWNPLAYED: International Business Machines is at the forefront of a broad decline in technology stocks following a cut in earnings esti mates for the firm by Merrill Lynch analyst Daniel Mandresh. Man- dresh reportedly told Merrill Lynch's sales force Tuesday morning that he cut his estimate for' IBM's second-quarter profit to $2.30 a share from $2.45, and his full-year earnings estimate to $11 a share from a range of $11 to $11.25.

Last year, IBM earned $2.65 a share in the second quarter and $10.77 for the full year. ANNOUNCES DIVIDEND: Procter Gamble Co. announced a regular quarterly dividend of 65 cents per share. The company said the dividend Is payable Aug. 15 to shareholders of record July 19.

FIRST NATIONAL SETS RECORD: First National Cincinnati Corp. reported Its best quarterly profit in its history Tuesday. Net income for the second quarter, ended June 30, was $8.5 million, or 84 cents per share, 12.5 higher than a year ago. For the first half of the year, profits are up 10.9 to nearly $16 million, or $1.59 per share. The acquisition in the second quarter of 10 branches and $157 million in deposits from Home State Savings Bank helped boost the holding company's total assets to $3.02 billion, up from $2.69 billion a year ago.

First National also completed acquisition of the Ohio State Bank of Columbus July 1. CENTRAL BANCORP. UP: Central Bancorporation the Cincinnati-based bank holding company, has reported record earnings for the second quarter and first half of the year. Net earnings for the f.pcond quarter, ended June 30, rose 24.3 to $8,455 million from $6,803 million a year ago. On a per share basis, net earnings were $1.54 compared with $123 last year.

For the six-months, net earnings Increased 22.9 to $15,741 million, from $12,805 million for the first half of 1984. On a per share basis, net earnings were $2.86 compared with $2.33 for the same period last year. The company completed three acquisitions during the second quarter, increasing its banking offices to 114. The Southern Ohio Bank and Molitor Loan and Building Co. merged with Central Trust Cincinnati, and Surety Savings Loan Co.

merged with Central Trust Co. of Canton. APPOINTMENTS ITT NAMES CARPENTER: Edmund M. Carpenter was named president and chief operating officer and a director of ITT Rand V. Araskog, ITT's chairman and chief executive, said.

Carpenter had beeti executive vice president of ITT Corp. and president and chief executive of ITT Industrial Management Corp. TRANSPORTATION PASSENGER MILES LISTED: USAir a subsidiary of USAir Group said it flew 955,156,000 revenue passenger miles in June, up 29.1 from 739,645,000 miles a year ago. Load factor for the month was 69.6, compared with 63.6 in June 1984. Pan American World Airways said the 14.3 decrease in revenue passenger miles for the six months ended June 30 resulted primarily from a strike during March that greatly reduced the airline's operations.

Midway Airlines said its June traffic rose 89.2 to 133,017,000 revenue passenger miles from 70,311,000 miles In Jane 1984. Load factor rose to 67.7 from 58.2. UNITED REBATE LAUDED: United Airlines' "50 State Rebate" last week accomplished what It was supposed to do in returning the carrier to Its market share following a 29-day strike. "We're extremely pleased with last week's results," said John R. Zee-man, executive vice president-marketing and planning.

Compiled By Dick Benson from staff and wire reports CBS Profits Drop 22 During 2nd Quarter Dennis Yablonsky President and Chief Executive Officer, Cincom Systems Born: June 5, 1952; Pittsburgh, Pa. Career Highlights: Graduated from University of Cincinnati and joined Cincom, 1975; appointed Cincom vice president of marketing and sales, 1982; appointed Cincom president and chief executive officer, October, 1984. Personal: Wife, Ronnie; two daughters. Residence: Blue Ash. Memberships: American Management Association, Ohio Chamber of Commerce, World Trade Week Committee.

BY MARGARET JOSTEN The Cincinnati Enquirer One of his employees puts it concisely: "Dennis Yablonsky's career at Cincom Systems has been like a rocket." In the 10 years since he was graduated from the University of Cincinnati and took his first job at Cincom, the worldwide computer software company based in Cincinnati, yablonsky has received one substantial promotion after another. The last giant step came in October 1984. Yablonsky was named president and chief executive officer by Thomas M. Nles, chairman and founder of the company expected to do more than $100 million business In fiscal 1985. When Yablonsky, 33, talks, he gives the impression he has far more going for him than brains, talent, energy and the ability to put them all to proper use.

After he recites the steps leading to his appointment as president and chief executive officer, Yablonsky acknowledges that he moved up the ladder unusually fast. "But I try to keep It In perspective," he said. OTHER PEOPLE in Cincom have moved quickly, too, he said. It also is Important to remember the fast-moving nature of the Industry and of Cincom itself, he added. "I always try to remember I still have a lot to learn," Yablonsky continued as he sat in pulling Chrysler out of the hole.

"That's one of the things Tom Nies (Cincom chairman) taught you never stop learning," Yablonsky said. The minute you think you know everything or that you have "arrived," you're in trouble because lethargy will set In, he emphasized. YABLONSKY'S LEARNING at UC was exceptionally well thought-out. The Pittsburgh native set out to learn about chemical engineering in the College of Engineering, but switched after two years to industrial management, where he remained another two years. His reason: "I felt a pure technical degree would not fit my needs.

I was 20 years old when I made that decision, and it turned out to be pretty good." Yablonsky spoke enthusiastically about the excellence of UC's co-op program, which permits a student to alternate three months of school with three months of work in business or Industry. He said his off-campus work (as an Internal auditor at the Tresler Oil Co. and as an analyst at the Mosler Safe Hamilton) had prepared him for the first job at Cincom. "I walked into Cincom with a very practical view of what the business world was like," he said. "I believe it gave me a two-year lead on my peers." (Please see PROFILE, Page C-2) THE ASSOCIATED PRESS NEW YORK-CBS Inc.

said Tuesday its second-quarter profit fell 22 from a year ago, and earnings declined 32 in the first half of the year. The company, currently the target of a -hostile takeover bid by Atlanta broadcaster Ted Turner, blamed Its poor profit performance on an additional $8.8 million loss associated with the disposal of Its musical instruments operations, which were discontinued In 1984. The total loss for disposing of that unit now totals $37.8 million, CBS spokeswoman Anne Luzzatto said. The company also cited ongoing softness in the recorded music business, interest expenses and the anticipated ad verse effect of the company's acquisition earlier this year of Ziff-Davis Publishing consumer magazines on the results of CBS's publishing group. In addition, CBS noted disappointing toy sales and costs, associated with an ongoing res- tructuring of CBS Toys.

CBS said net income for the three months ended June 30 to-' taled $69.3 million, or $2.33 a share, compared with $88.6 million, or $2.98 a share, in the same period a year ago. Revenue rose 4 to $1.23 bil-1 lion from $1.19 billion. First-half 1985 net Income came to $86.1 million, or $2.89 a share, vs. $127.5 million, or $4.29 a share, a year earlier. Revenue for the six months edged up 1 to $2.35 billion from $2.34 billion.

his office in the Cincom headquarters at 6300 Montana Falrmount. Beyond the window, the trees of Mount Airy Forest and summer sky fill the view. Then he pointed across the room to the rows of books he keeps In his office. Many are professional and technical, but at least one is of a lighter nature: Lee Iacocca's story about Many In Class Of '85 Find Job Hunting Easier 'VBi P. A tered the best job market of any time since 1979," said Richard Hearln, director of placement for Miami University.

Hearln said 1984-85 recruiting by companies at his school was up nearly 20 over last year. OTHER SCHOOLS said the Just-completed academic year had strong recruiting, but reported hiring levels only slightly above the previous year. "Although we were slightly down insignificantly so in terms of Interviews, we had an Increase of about 100 Job offers, which is significant," said Jennifer B. Kahnweller, director of the UC Office of Career Development and Placement. Final figures are not complete, but Kahnweller said her office scheduled about 8,000 Interviews for 1,200 registered students.

More than half received job offers from those BY ROB HEIDENREICH The Cincinnati Enquirer Margaret Kacher left the University of Cincinnati In June smiling: she had both a degree and a Job. "Hard work really does pay off," the marketingfinance major said. Kacher, a native of Lorain, Ohio, interviewed with nine companies before ultimately accepting 'a position with Procter Gamble as a brand assistant. She attributes her job-search success to her numerous campus activities and communication skills. Kacher's good fortunes typify the experiences of local unl-'verslty graduates.

Job placement officers at UC, Xavier University, Northern Kentucky University and Miami University at Oxford all said Tuesday the Class of 1985 faced a healthy job market. "This year's graduates en "The bigger the company, the earlier their ranks are going to be filled," said Hearln. Smaller firms and non-profit organizations are more likely to have surprise openings during the summer because their forecasting for personnel needs is not as accurate, he said. Most on-campus recruiting Is done by large although some schools including UC-are working to attract more small companies. Kahnweller suggested graduates seek continued assistance from their university's placement office even after they are graduated.

Job-seekers should also read business publications to find out which firms are growing and expanding, she said. (Please see JOBS, Page C-2) Continuing recent trends, local universities reported Increased hiring of students who majored In engineering, technical disciplines, computer-related fields and accounting. Opportunities for education majors especially those certified In mathematics, sciences or elementary education were also up. LIBERAL ARTS and humanities majors continued to face the toughest times finding Jobs, although opportunities are slowly Increasing. Salary offers for graduates of all majors kept 'pace with Inflation, but didn't increase much beyond that, the universities reported.

For graduates not as fortunate as Kacher, the college career offices suggest perseverance and a focus on small and medium-sized companies. i MARGARET KACHER a degreee and a job.