The Cincinnati Enquirer from Cincinnati, Ohio • Page 36

C-8 TUESDAY, NOVEMBER 21, 1989 THE CINCINNATI ENQUIRER EDITOR: JOHN MORRIS, 369-1009 NYSE listC-9 NASDAQ stocksC-10n AmexstocksC-11 Mutual fundsC-11 o) Portfolio U.S step hoe profits take a bi Retailing turnaround paces surge 2700 2675 2650 2625 2600 2575 gained 4 to $213.2 million. Strong orders for the Easy Spirit shoes have improved operating rates at U.S. Shoe's plants in Ohio, Kentucky and Indiana, Barach said. Operating earnings at the LensCrafters chain increased 93 to $13.4 million from $7 million a year ago. Sales increased 27 to $140.1 million.

LensCrafters operated 330 stores at the end qf the third quarter up from 272 a year ago. LensCrafters is on track to top $500 million in sales this fiscal year, U.S. Shoe said. By year-end the chain will have added 70 optical superstores bringing its total to more than 350 in the U.S. in Canada.

Next year LensCrafters plans to add up to 100 new units as part of the chain's goal to top $1 billion in sales by 1993. Most of the new stores will be in existing markets, enhancing profitability through economies of scale. 10 to $645.6 million from $587.1 million last year. "It's a combination of good stability in our shoe business, a turnaround in women's specialty and explosive growth at Len-sCrafters," said Philip G. Barach, U.S.

Shoe chairman. For the first nine months, U.S. Shoe had net income of $33.4 million, or 74t a share, compared to a loss of $5.03 million in the same period last year. The year-ago earnings included one-time charges from the closing of the Front Row apparel stores and other nonrecurring items. Sales for the nine months gained 9 to $1.81 billion from $1.66 billion a year ago.

Earnings for the year are on a pace to dramatically rebound from last year's $13 million, or 29C a share, on sales of $2.3 billion. Sales in U.S. Shoe's women's apparel group led by the 750-store Casual Corner chain increased 7 from a year ago and operating income increased to $13.8 million from $2.5 million. Earnings in the women's apparel group could approach a record this year if third quarter trends in the Casual Corner stores continue through the important Christmas shopping season, U.S. Shoe said.

"There's a lot of anxiety about Christmas, but we haven't seen anything to justify it," said Barach. "Recent consumer research shows that Casual Corner's customers are finding strong appeal in the stores' merchandise styling and quality and customer service," Barach said. The footwear division also rebounded, reflecting continued strong performance of its Easy Spirit dress and walking shoe brand. Operating earnings increased 71 to $16.7 million from $9.7 million in the year-ago period. Third-quarter sales 2550 2525 2500 BY MIKE BOYER The Cincinnati Enquirer The continuing rebound in its shoe and women's apparel businesses helped United States Shoe Corp.

post the highest third quarter earnings in its history. The Cincinnati company said Monday net profits for the third period ended Oct. 28 increased to $19.8 million, or 44C a share, from $1.3 million, or 3C a share, last year. According to Zacks Investment Research, the consensus among investment analysts was that U.S. Shoe would earn about 8 9 10 13 14 15 1617 20 Nov.

Dow Jones 30 Industrials Dally highs, with closes at arrow tip Area-interest stocks in Industrial average Philip G. Barach good stability" 39C in the quarter, so the results were about 13 better than expected. Third quarter sales increased (NYSE change from previous day) -38 GE-14 PAG unch. Cincinnati Stock Exchange volume 857,700 shares Tuesday's focus: travel Scheduled flights may return to Lunken Cleveland-based airline aims for start on Dec. 4 Central States 000 0 000 fw'K i Zw Stock market slides as contractors suffer The stock market declined broadly Monday in selling that hit defense contractors especially hard.

The Dow Jones average of 30 industrials dropped 20.62 to 2,632.04. Volume on the floor of the Big Board came to 128.17 million shares. Government T-BILLS SLIDE: Interest rates on short-term Treasury securities fell in Monday's auction with rates on six-month bills dropping to their lowest level since July. The Treasury Department sold $8.0 billion in three-month bills at an average discount rate of 7.61, down from 7.68 last week. Another $8.0 billion was sold in six-month bills at an average discount rate of 7.40, down from 7.51 last week.

a Corporate moves BELL BUYBACK: Cincinnati Bell will repurchase up to 300,000 shares of its own stock, the company said Monday. If purchased at the recent market price of $25 a share, the company could spend $75 million. "At the current price, Cincinnati Bell stock is a very good value," said Chairman Dwight Hibbard. NEW STAR: Star Banc Corp. said Monday it will acquire Verona Bank in Verona, Ky.

Terms of the purchase were not disclosed. Verona Bank has assets of $37.4 million and, upon its acquisition, will be renamed Star Bank, Boone County. MOVING DAY: Systecon a 40-year-old Cincinnati manufacturer of water management systems, will relocate its operations to Shumaker Commerce Park in Butler County next spring. The company now is in Sharonville. The company said its five-year projections how it needs to double the size of its plant.

BUYING FUNERAL SUPPLIES: Hillenbrand Industries Inc. said Monday it will acquire Service Corporation International's funeral supply division. Hillenbrand did not disclose the purchase price. WRAPPING IN RUSSIA: The makers of Reynolds Wrap aluminum foil on Monday announced a joint venture to build a $200 million aluminum foil production plant in the Soviet Union. In other business LINDNER SELLS: Cincinnati financier Carl Lindner said he sold his 6.2 stake in preferred series stock in troubled Southmark Corp.

In a filing with the Securities and Exchange Commission, Lindner said he sold 252,691 shares for between 16.25$ a share and 47.50C a share. He acquired the shares earlier this year at an average of $32 per share. EASTERN DEALING? Eastern Airlines is trying again to work out a deal to sell its Latin American routes and other assets to rival American Airlines, the Wall BY RICHARD GREEN The Cincinnati Enquirer A Cleveland airline company wants to bring daily commercial flights back to Cincinnati's Lunken Airport after 42 years. Central States Airlines aims to begin three non-stop commuter flights from the Kellogg Avenue airport to Cuyahoga County Airport, just south of Euclid on the east side of Cleveland, starting Dec. 4.

Three major airlines Delta, TWA and American served Lunken from 1941 until 1947, when they moved to the larger Greater Cincinnati International in Northern Kentucky. No ticketed commercial service has been based at the smaller Lunken field since then. But that will soon change, says Rob Kuhlenschmidt, vice president of passenger service for CSA Inc. The company will be catering to a time-pressed business community that needs quick flights without the waiting. "We're offering a service with quick accessibility from the ticket area to the departure gate and to the airplane.

We know it costs companies money to have employees sitting around," he said. The company will also operate shuttles from Cleveland to Detroit and Pittsburgh. For Cincinnati flyers, however, the only direct link initially, at least will be to Cleveland. "We have already gotten input from Cincinnati's business community, though, saying direct flights to Detroit and Pittsburgh would be used," Kuhlenschmidt said. The company stresses speed and efficiency.

Dramatic growth at Greater Cincinnati, as well as Cleveland's John Hopkins International Airport, is bogging down the schedules of business travelers, Kuhlenschmidt said. "Cincinnati is a major hub for Delta, Central States Airlines will use a 19-seat British Aerospace Jetstream 31 aircraft in service between Cincinnati and Cleveland. land costs $193 coach, $179 discount and $198 round-trip weekend excursion. "To be successful, we know we have to be competitive," Kuhlenschmidt said. "We know cost is important.

But we also do not want to sacrifice reliability or passenger comfort. We'll be a full-line, full-service airline." The firm, awaiting final FAA approval, will use 19-seat British Aerospace Jetstream 31 aircraft. These turboprop commuter planes generate a noise level of only 63.7 decibels quieter than some of the private planes now flying out of Lunken Kuhlenschmidt said. CSA's commuter flights will provide another chapter in Lunken's storied past. After a drop-off in business in the late 1940s when the major carriers moved to Greater Cincinnati, Lunken became home to many private planes.

In the mid-1960s and 1970s, corporations began utilizing the facility as a landing place and roost for company jets. Today, Lunken has three runways and 30 buildings and serves as a base for 240 aircraft. Annual takeoffs and landings have reached 185,000. Almost 100 area corporations take chartered flights out of the airport, or operate their own aircraft there. and at Cleveland, Continental and U.S.

Air operate mini-hubs there. That usually means some congestion. Because we use smaller air facilities, those kind of delays are not a factor." And the location of Lunken, close to the flourishing northwest and Interstate 71 corridor business markets, also is an asset, Kuhlenschmidt said. "Our studies have shown that the population and business community is moving north of the city, farther away from Greater Cincinnati. Lunken is a more convenient site." Rates for the new air service are competitive with major carriers.

A one-way flight from Lunken to Cleve Machinists vote on pact Boeing, union officials, workers expect approval Shearson reduces staff commissions I think our people will approve this offer overwhelmingly. Tom Baker 1AM district president Street Journal reported Monday. Earnings APOLLO PROFITS: Apollo Savings Loan Co. reported that net income in the quarter that ended Sept. 30 was $153,000, or 50C a share, compared to a profit of $170,000, or a share, during the same period a year ago.

Compiled by Mark Braykovich from staff and news service reports ly," said Tom Baker, president of District Lodge 751, International Association of Machinists Aerospace Workers. Baker said the best of both previous contract offers was retained in the new proposal and that more money is included in bonuses, hourly wages and cost-of-living increases. He said there are further reductions in mandatory overtime, that the company agreed to pay all costs of medical benefits, and that there is a good promotional system. A substantial part of the first year's cost-of-living increase is to be paid right away and that will increase the hourly wage above the 4 offered this year. In the years following, workers will get 3 increases.

George Shapiro, stock analyst with Salomon Brothers in New York, said he believes the proposal is good and he doesn't believe the strike or the new wage agreement will hurt Boeing's profits. SEATTLE TIMES SEATTLE Striking Boeing production workers may be back on the job Wednesday if, as expected, they approve the company's latest offer Monday night at the Kingdome. The offer that could put 57,800 machinists back to work was hammered out under the direction of federal mediator Doug Hammond. It resulted from a marathon 14-hour bargaining session that began Saturday afternoon and stretched into the early hours of Sunday morning, the strike's 47th day. Everyone is optimistic, including union and company officials and the workers who have been walking picket lines in the rain and cold since Oct.

4. Stock analysts say effects of the strike that cost workers more than $4 million a day in wages and put the company's delivery schedules in disarray will be slight over the long term though it will dampen fourth-quarter results. BY STEFAN FATSIS The Associated Press NEW YORK Shearson Lehman Hutton Inc. said Monday it is cutting stockbroker commissions for the first time in 15 years, reflecting an industry-wide slowdown in brokerage activity by individual investors. Shearson, the nation's second-largest retail brokerage, said the portion of the commission that a broker gets for selling investment products "would be trimmed by 1 to 2 percentage points in 1990.

Analysts said the reduction was the first direct commission cutback by a brokerage house on Wall Street, where profits have lagged partly because of an exodus of individual investors since the October, 1987, stock market crash. In the past year, other firms have imposed a variety of customer fees that go directly to the brokerage but do not affect the size of brokers' commission. Shearson, which is 61 owned by American Express has been contemplating trimming the commission a broker gets known as the payout rate by 4 to 5 percentage points over the next four to five years, said Shearson representative Michael O'Neill. Shearson retail brokers brought in commissions averaging $228,000 this year. Shearson paid 46.5 of the total back to brokers and their supervisors in direct payments, employee benefits and deferred payments.

The firm earlier this month announced it was laying off up to 800 employees and restructuring its senior management. Boeing representative Harold Carr called the latest proposal "a darned good offer" and Larry McKean, Boeing's chief negotiator, said he's looking forward to a favorable vote and a return to normal operations." The union leadership was optimistic, too, although Justin Ostro, international union vice president, disagreed with the tentative settlement, saying it isn't good enough because it doesn't increase the general hourly wage. But the local president disagreed. "I think our people will approve this offer overwhelming Inside today McCAW: McCaw Cellular Communications Inc. increased its offer for LIN Broadcasting Corp.

to $3.4 billion. Page C-10. CHRYSLER: Lee lacocca said Monday that sluggish car and truck sales may force the company to increase budget cuts. Page C-10..