The Cincinnati Enquirer from Cincinnati, Ohio • Page 20

B-4 THE CINCINNATI ENQUIRERFriday, December 1977 i Mm ltu business pulse Big Chains Report Strong Sales Gains if 411 Federated Sees 10 Yearly Gain Federated Department Stores chairman Ralph Lazarus told securities analysts In New York Thursday the company expects annual sales to reach $8 billion by 1982. Federated is the Cincinnati parent company of 20 department-store and discount-store chains throughout the United States. Asked to confirm an estimate that Federated will have $5 billion in sales for fiscal 1977, which ends January 28, 1978, senior vice president John H. Hovlng said, "That is about right." In fiscal 1977, Federated had sales of $4.4 billion and net profits of $168 million. TO REACH $8 billion within five years, Federated" sales will have to rise at a compound annual rate of approximately 10.

"We believe that sales of department-store-type merchandise in the next five years will out-pace other types of consumer spending," Lazarus said. "At this point in the Christmas period, it looks like sales will continue strong through the season Federated president Harold Krensky said operations in 19 marketing locations opened within five years, mostly in the South and West, have generated 18 of general merchandise sales. "OUR CONTINUING research program has identified additional opportunities for expansion not only within existing trading areas, but in new geographic areas which seem to hold promise for us when measured against our criteria," he said. Commitments for new investment in "people, computers and month," Dewar said. "The cooler weather experienced throughout the country in the middle of November sharply stimulated sales, particularly in the apparel lines." Among other retail firms reporting November sales figures Thursday: J.C.

Penney based In New York, reported a 13.3 November sales gain. Sales were $888 million last month, opposed to $784 million in the same period last year. The company operated 2119 retail units last month, compared to 2084 last year. Mart said its sales increased to $878.8 million from $758.5 million last year. The company had 1796 stores in operation last month, compared with 1673 in November 1976.

F.W. Woolworth Co. said in New York that November sales were $453.3 million, an Increase of 6.3 from $426.6 million last year. Montgomery Ward a Chicago-based subsidiary of Mobil said last month's sales were up 7.3 to $425.1 million from $396.1 million. Company officials said Ward's sales also were affected by the unusually warm beginning of November.

May Department Stores Co. reported from St. Louis a sales increase of 9 to $217.4 million from $199.4 million. Dayton Hudson based in Minneapolis, said its sales climbed 15.2 to $192.5 million from $167.1 million. Carter Hawley Hale Stores based in Los Angeles, said sales were up 12.2 to $151.8 million from $135.3 million.

IIi K2 ,4 could hit $5 billion in sales in Lazarus said Federated depends on implementation of four key management elements to reach its financial goals: strategic planning, executive development, intensification of all elements of our business and development of management information and communication systems. i NEW YORK (AP)-The nation's largest retail chains Thursday reported improved sales for November. Analysts said the results augured well for a busy holiday shopping season. Most of the chains posted double-digit percentage increases in November sales over the revenues reported for the same month last year. Stuart Robbins, a retail sales analyst for Mitchell Hutchins said the strong sales figures extended a recent trend.

"THE NUMBERS were pretty much what we expected," Robbins said. "Our projection for the fourth quarter is that sales gains will continue, and we're looking for a good Christmas season." Robbins said the increases apparently have been led by higher sales of clothing. "Apparel demand is strong, and that's a good sign since most of these stores are oriented toward clothing sales," he said. Sears, Roebuck the nation's largest retail chain, reported that its sales for the four weeks ending November 26 were $1.7 billion, up 14.2 from the $1.5 billion for the same period last year. The Chicago-based firm's sales for the first 43 weeks of the year rose 15.9 to $15 billion from $13 billion.

The chairman of Mart Robert Dewar, said his firm's November sales up 15.9 would have been even stronger if cool weather had arrived earlier. "SALES WERE relatively soft during the first two weeks of the a somewhat better showing than some Fed watchers had been expecting. British Petroleum, down at 16, was the most-active issue. Several blocks of 100,000 or more shares each traded at 164 and 16W. BP announced lower third quarter earnings and blamed part of that on the Stocks Have Indifferent Day is -4 ii FEDERATED DEPARTMENT Stores fiscal 77 and $8 billion by '82.

point-of-sale equipment" for a retail information system total more than $100 million, vice chairman Howard Goldfeder said. Point-of-sale equipment means computerized cash registers that Instantaneously provide information on the individual sale to the main computer. for the brokerage house of Paine, Webber, Jackson Curtis said, "The year-long trends are still considerably above the Federal Reserve's target." The Federal Reserve, the nation's central bank, has sought an Ml growth this year of between 4 and 6.5 Kudlow estimated the actual increase will be about 7.25. For the latest four weeks, Ml averaged $332.6 billion, a 5.9 rate of gain from 13 weeks ago. M2 averaged $801.2 billion, a 7.3 increase in the statistical quarter.

TO SLOW money-supply growth, the Federal Reserve in recent months has tightened sold government securities from its own account to drain money from the banking system. This has pushed up interest rates and tended to have a depressing effect on the stock market. In the Federal Reserve's report on key interest rates for the week, Federal funds averaged. 6.55, up from 6.51 the previous week. Federal funds are uncommited reserves that banks lend each other.

The three-month Treasury bill rate averaged 6.04 for the week, down from 6.06. The average rate on 90-to-119-day dealer-placed commercial paper climbed to 6.53 for the statement week from 6.52 a week earlier. Commercial and industrial loans at major New York City banks rose $296 million in the week ended Wednesday. That compared with a drop of $163 million in the previous week and a gain of $395 million in that week a year ago. lowed increases of 0.8 in September and 2.7 in August.

In March 1977, factory orders rose 4.9. Factory orders have been volatile this They are a sign of confidence by business and increase in factory oa'ers often later lead to new jobs. Shipments by manufacturers rose in October by 0.7 after rising 0.5 in September and 2 in August. Total inventories rose 0.4 close to the rates of recent months, while unfilled orders went up 2 after being virtually unchanged in September and August. AMONG INDUSTRIES other than defense, producers of non-defense capital goods reported a 1.1 Increase in new orders and a 2.5 Increase In shipments.

The primary metals Industries MEDICAL OySLDIUG Prestigious new medical building being developed in the heart of Anderson Township along Beechmont Avenue. A few remaining suites available. Designed to your specifications. Lease andor ownership opportunity For information please call: JEFFREY R. ANDERSON REAL ESTATE 381.2222 GOODYEAR TIRE Rubber the nation's largest tire manufacturer and wholesaler, has been barred for lMi years from delivering tires In Maryland to sell to marketing oil companies, the state attorney general said Thursday in Baltimore.

Goodyear also has been blocked for five years from entering agreements with such oil companies under which service station dealers must buy Goodyear tires. A consent decree ending an antitrust case Is aimed to help service station dealers and consumers "who have been paying Inflated prices for tires," the attorney general said. AN ATTORNEY for Bert Lance said Thursday Lance is negotiating to sell the Georgia bank stock that precipitated his downfall as President Carter's budget director. Robert Altman said Lance was involved with a "undisclosed purchaser regarding the acquisition of a significant percentage of. common stock of the National Bank of Georgia at a price of $20 per share." Lance owns 200,000 shares.

The negotiation may result in a tender offer to other shareholders. NBG stock was listed Wednesday at $10.25 bid and $11.25 asked. TREASURY SECRETARY W. Michael Blumenthal urged businesses to help New York City attract industry and make its municipal bonds more attractive to investors. At the New York Board of Trade, Blumenthal said the administration and Congress believe both the city and the state should use up their resources before the federal government lends New York money.

First National Finishes Deal In Circleville First National Cincinnati Corp. announced Thursday it has completed purchase of the Third National Bank of Circleville, Ohio. First National said it paid $2.9 million in cash for the Circleville bank, which has $28 million in assets. First National announced Its intention to buy the Circleville bank earlier this year. William N.

Liggett, First National chairman, said the resources of his bank holding company will aid the Circleville bank In coping with rapid technological changes and government regulation within the banking industry. First National Bank of Cincinnati, with $1.2 billion in assets, Is the largest of the five banks affiliated with First National Cincinnati Corp. Outstanding loans represented about 40 of First National Cincinnati $1.37 billion In assets at the close of 1976. Other current assets Included cash, government and corporate securities and federal funds sold. Pabst Fears Going Flat MADISON, Wis.

(AP)-Pabst Brewing Co. is not unalterably opposed to being acquired by another company, it Just wants one with "a deep pocket," its president said Thursday. Frank C. DeGulre told Wisconsin Securities Commissioner Jeffrey Bartell he is afraid A PL Corp. of Great Neck, N.Y., would raid Pabst's assets If APL went through with its plan to acquire 52 of the Milwaukee-based brewer's stock.

If an acquisition by APL prevented Pabst from undertaking necessary expansion, the brewing company would eventually die, De-Guire told a public hearing on the acquisition offer. APL, a consumer-products firm that grosses $80 million a year, already owns 400,000 shares of Pabst stock. It has offered to acquire an additional 4,050,000 shares In exchange for 10 debentures maturing in 1998. Each debenture would have a face value of $40, and the total value of the exchange would be $162 million. Pabst grosses $600 million a year and is the nation's fourth-largest brewer, having lost the third-place spot to Miller Brewing also of Milwaukee, this year.

Brewing industry analysts believe Miller has since moved ahead of Jos. Schlltz Brewing Co. of Milwaukee into the No: 2 spot behind Anheuser-Busch of St. Louis. DeGulre testified that Pabst could expect further deterioration of its competitive position unless expensive expansion plans are -undertaken.

"In the brewing Industry, either continue to grow or you die. We intend to continue to grow," De- Guire said. Midland Dividend Midland Co. directors Thursday approved a quarterly dividend of 2 cents a share, payable January 6 to shareholders of record December 22. Fed Reports Decline In Money NEW YORK (AP)-The nation's money supply fell in the latest reporting week, slowing a steady increase that has worried many economists concerned about inflation and higher interest rates.

Many experts believe that if the money supply Increases at too fast a rate, inflation will result and interest rates will climb as the Federal Reserve tries to check the expansion by tightening credit. The Federal Reserve Bank of New York reported Thursday that the Ml measure of the money supply fell $2.4 billion to a seasonally adjusted average of $331.5 billion in the week ending November 23. Ml is defined as currency in circulation plus checking accounts in the banks. The broader M2 measurement declined to an average of $802.2 billion in the week from $802.9 billion the week before. M2 is defined as Ml plus savings accounts and certificates of deposit (CDs) under $100,000 in banks.

SOME ECONOMISTS said the decline in Ml and M2 was unexpected. But one added, "Week-to-week movements are pretty hard to decipher, you have to look at trends." Lawrence Kudlow, an economist FT. MITCHELL 100 Acres Beautiful View Property Ideal For Development I mile from 1-75 at Buttermilk Pike-Zoned for Apts. and Residential Gorgeous Appoiitatit Oaly G. laapsejr Mtrrtll, Realtor.

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mm OUT OF PAWN PORTAIlf I OFFICE TYPEWRITERS FAMOUS $0095 BRANDS tt9 WILL'S PAWN Corner GILBERT i 9nd8l3-l5VINf 1T3861-M23 CINCINNATI FINEST CLOTHING STORE IS IN. NORWOOD, qiiascutum MODELS. DUTY MILfORD I JEWELRY I mchhun i Factory Orders Rise AAT. ADAMS BY KRISTIN GOFF Associated Press NEW YORK (AP)-The stock market turned in a mixed performance Thursday, reflecting continued uncertainty over a variety of issues in addition to bargain hunting. The market has been cautious since a steep selloff early this week.

Despite fairly high trading volume, there was no uniform market trend Thursday. THE DOW JONES average of 30 industrial stocks lost 3.99 points to close at 825.71, after fluctuating in a fairly narrow range throughout the session. But overall, gaining Issues outnumbered losers by about four-to-three among New York Stock Exchange-listed issues. Big Board volume came to 24.22 million shares, up from 22.67 million in the previous session. The NYSE composite index was down Just 0.02 to 52.34 by the close.

The Standard Poor's index of 400 industrial stocks slipped 0.25 to The 500-stock composite lost 0.14 to 94.69. There appeared to be little strong reaction to news developments Thursday. Some brokers suggested that traders were awaiting results of the Federal Reserve Board's weekly money supply report, which is closely followed as an indication of monetary policies and credit trends. THE REPORT, issued after the close of the NYSE, showed a $2.4 billion drop in the basic money supply, Strongly recorded declines in both new orders and shipment, mainly because of an 8.3 drop in new orders in the steel industry. The increase for all durable goods orders was 5.9, while nondurable goods went up 0.7.

For October, new orders totaled $116.3 billion and shipments $112.7 billion after adjustment for seasonal variations. USSK Buys Wheat WASHINGTON (AP)-The Soviet Union has bought 200,000 more metric tons of U.S. wheat, the Agriculture Department said Thursday. Officials said the sale, reported by private exporters, raised to 5.5 million tons the amount of grain bought by the Soviet Union for delivery in 1977-78. Co.

Thursday declared a regular quarterly dividend of 10 cents a share on the common stock payable January 5 to stockholders of record December 16. OUT-OF-PAWN STEREO RECEIVERS SANSUI, SCOTT, FISHER, PIONEER AND OTHERS WILL'S PAWN JEWELRY Corner GILBERT i McMILLAM VIM UKFT qtiu QtJ vu EXECUTIVE TOWHHOUSE 2 bedrooms, Vh baths; fireplace; river view, gourmet kitchen, sun deck, multilevel loft spaces, washer-dryer hook-ups. Price: '425. Call 559-1637 for appointment. WASHINGTON (AP)-New factory orders rose 3.4 in October, the largest rise in seven months, the Commerce Department reported Thursday.

The biggest contributor to the $3.9 billion increase was a $2.7 billion rise in orders for defense capital goods. That was the largest increase ever recorded for those goods aircraft, aircraft parts and ships. The sharp rise in defense orders resulted from a substantial number of Defense Department contracts awarded during the last few days of fiscal 1977, which ended September 30, the department said. BECAUSE OF paperwork, these were not recorded until October. The previous record increase in defense capital goods ordered was $2.4 billion set In August, 1974.

The 3.4 rise in all factory orders fol LEASING WE LEASE ALL MAKES A LIGHT TRUCKS A VANS. 12-24-38 mm PLAKS AVAILABLE. CALL JIM COLYER JANNING-VAN WINSEN Most Grain Prices Rise: Oats Strong Wilson Freight 7 Wilson Freight Wilson Freight VrDUlVl State Route 21 (744 Qmhtn Pike) at I-37J MILFORD 248-1800 found In the oat and wheat pits. Prices were" up a cent or more In most contracts except for March, which Increased 2 cents. Corn hesitated between the plus and minus columns for most of the day before finally giving, in to small declines at the close.

Prices were off less than a cent in most months. Good professional and commission house buying bolstered soybean oil prices throughout the day while meal fluctuated narrowly. Iced broilers remained even except for a loss In the December contract. At the close, wheat was 1 to 3 cents a bushel higher, December 2.664 corn was Vt to 1 lower, December 2.194 oats were 24 to 3V4 higher, December 1.35 and soybeans were V4 to 2 higher, January 5.87M! CHICAGO (AP) Oat, wheat and soybean prices advanced on the Chicago Board of Trade (CBOT) Thursday while corn was marginally lower. Prices were also up in most contracts on the Chicago Mercantile Exchange.

Oats put In the strongest showing on the CBOT as heavy commercial buying pushed prices up more than a cent after the opening and by the final bell the grain had posted gains of as much as 3 cents a bushel. Wheat was stymied for much of the morning in dull trading but gradually gained strength before midsession on a wave of commercial buying and some short-covering. Wheat closed 3 cents a bushel higher in the two near contracts. Soybeans also climbed but the hikes were less dramatic than the increases KEW OFFERING F0RKER PRINTING PLANT 92,600 SQ. FT.

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