The Cincinnati Enquirer from Cincinnati, Ohio • Page 25

Friday, February 22, 1985 THE CINCINNATI ENQUIRER BUSINESS B-7 5 (o) O) mm GNP Growth Highest In 3 Decades Business Digest 4th Quarter's 4.9 Rate Expected To Give Early 9 85 A Lift 4th Quarter GNP Revision Real GNP Increased By $1.7 Trillion pressed optimism, some wondered whether the strong growth might prod the Federal Reserve Board Into clamping tighter controls on money growth as a way of keeping Inflation from re- 'i turning. Federal Reserve Chairman Paul Volcker told Congress on Wednesday that the Fed has ended Its policy of loosening restraints on money growth, 7" a change that is likely to halt a five-month slide in Interest rates. In 1984, the same as 1983. President Reagan, taking credit for the economy's performance, said the "harvest of good news sprang from the seeds of new policies for greater economic freedom that we planted In our first term." "The great American expansion is rolling forward, carrying us from a banner year In 1984 toward continued success of high growth, more jobs and low inflation In 1985," the president said In a statement. PRIVATE ECONOMISTS agreed that the GNP report showed an economy rebounding strongly from a sharp drop in activity last summer.

After turning in growth of 8.5 in the first half of the year, the economy slipped to a weak 1.6 growth rate from July through September, leading to worries that the recovery was in danger of toppling Into another recession. Donald Straszhelm, chief economist for Merrill Lynch said those recession worries "have surely been put to rest now. In the first half of this year, there is little doubt that we will have growth of well over 4." While other economists also ex THE ASSOCIATED PRESS WASHINGTON The economy grew at a robust 4.9 rate in the final three months of the year, far better than originally thought, the government said Thursday. Analysts reviewing the strong rebound in the gross national product, the broadest measure of the nation's economic health, said it would provide the springboard needed to ensure good growth in the first half of 1985. However, beyond that point, some economists expressed pessimism about prospects In the last half of the year.

THE COMMERCE Department report represented a sharp revision from the initial estimate of growth at a more modest 2.8 rate made in December before the final quarter had ended. That projection was revised to a stronger 3.9 last month and now upped again to 4.9. The latest revision left growth for all of 1984 at a sizzling 6.9, the best performance In more than three decades. Despite the rapid growth, Inflation remained at low levels, the new report showed. As measured by a gauge tied to the GNP, inflation rose at a rate of 3.8 "I THINK the economy Is now stronger than the central bank expected and some tightening of monetary policy Is very likely," said Allen Sinai, chief economist of Shearson Lehman Brothers.

"The emerging risk Is that a combination of rising interest rates and the strong dollar could give us a dose of what we had last summer a pause In growth." 10 9 8 7 PJEE 6 I 5 1 4-3 2 1 0J IK 11 But Robert Ortner, chief economist at the Commerce Department, said part of the fourth quarter growth spurt was based on temporary factors that will not continue. The 1984 figure was the best GNP performance since an 8.3 rise in 1951. Source: U.S. Commerce Department Dollar Again Sets Records Traders continued to bid up the dollar to uncharted levels Thursday, again lifting the U.S. currency to record highs against the British pound, French franc and Italian lira.

The price of gold, meanwhile, fell below $300 an ounce. Republic National Bank In New York quoted gold as of 4 p.m. EST at $299 an ounce, down $4.50 from Wednesday's late bid. In European foreign-exchange trading, the dollar also set new 13-year highs against the West German mark and Dutch guilder, and It reached a seven-year high against the Swiss franc. The dollar's rally was fueled earlier this week by expectations that U.S.

interest rates have bottomed, which improved the outlook for yields on dollar-denominated investments. Stock Market Prices Down The stock market declined broadly Thursday, yielding to the pressure of rising interest rates. The Dow Jones average of 30 Industrials, up 2.54 on Wednesday, dropped 4.09 to 1,279.04. Volume on the New York Stock Exchange slowed to 104.02 million shares from 118.21 million Wednesday. Analysts attributed the market's weakness to a statement by Paul Volcker, chairman of the Federal Reserve Board, that the Fed had stopped easing credit conditions.

The upward revision In fourth quarter GNP sent interest rates higher for the second straight day in the credit markets. Rates on short-term Treasury bills rose 10 to 15 basis points, or hundredths of a percentage point. Prices of long-term government bonds, which move in the opposite direction from interest rates, posted losses approaching $5 for every $1,000 in face value. Phillips Shareholders Meet Phillips Petroleum Co. shareholders gather today to decide whether to approve a company-backed recapitalization plan or side with Carl C.

Icahn, who wants the plan defeated so he can proceed with his $8.06 billion bid to acquire Phillips. The meeting, at the oil company's headquarters In Bar-tlesvllle, could last from several minutes to several hours, a Phillips spokesman said. Phillips has 154.6 million shares of common stock outstanding; passage of the plan requires the support of more than 50 of the stock, or 78.8 million shares. Tactron Hires Adviser To Evaluate KDI Stake est 13-D" filing with the SEC, Layton said. Previously, Tactron had said it might try to unseat KDI's board through solicitation of a majority of KDI's shares sympathetic to Tactron's goals.

Layton has also waged unsuccessful proxy fights against KDI in the past. Tactron is the lead member of a dissident group that at one time controlled about 25 oX KDI's 8 million common shares outstanding. However, one member of that group, the pension fund of the International Association of Machinists, has dropped out and sold Its KDI shares. Also, Tactron sold about 248,000 KDI shares last month. Ken Byrne, an attorney for KDI, said he hadn't seen Tactron's latest filing.

But he said he followed the recent pattern of divestiture on the part of the dissidents. "It's speculation, but It sounds like they're unwinding," Byrne said. BY GREGG FIELDS The Cincinnati Enquirer Tactron which has abandoned its efforts to take over KDI has hired a financial adviser to evaluate whether Tactron should sell its 13.2 stake in KDI. In a filing with the Securities and Exchange Commission, Tactron said Bear, Stearns Co. would act as its Investment adviser.

However, Tactron President Tom Layton said no firm decision has been made on whether to sell the KDI stock. "We've said all along we reserve the right to sell It or acquire more or whatever," Layton said. The 13-D filing with the SEC said Tactron might be interested in selling all or some of its stock to a party that would mount a takeover bid or proxy fight for KDI. It said It knew of no such party at the present time, however. Layton said it's correct that Tactron has no plans to try to take over KDI this year.

"We disclosed that in our lat ISP i alv) fM I The Associated Press Troubled Miller Shoe May Become Distributor ACTIVITY Is hectic on the trading floor of the New York Stock Exchange. "Tmiiin -HTT Lay Financial Foundation Before Venturing Into Stocks Atek Plans New Center Personal Finance which at one time included more than 30 shoe stores. "We are in the process of closing the majority of our stores," Schnur said. "We will be a distributor of footwear," Schnur said. Schnur said the bankruptcy petition was filed In New York rather than Cincinnati because many of the company's main investors live there.

The bankruptcy came after several years of struggling for Miller. The company was organized in 1922. In 1969 it was purchased by Amadac Industries of Albany, N.Y. Amadac changed the name to Miller Shoe Industries In 1983. THE CINCINNATI ENQUIRER Miller Shoe Industries, the troubled Northside company that entered bankruptcy proceedings last week, hopes to emerge as a distributor of footwear, Philip Schnur, a company executive, says.

The company left the manufacturing business In December, when it closed Its factory here. It had been threatening to close the facility for more than a year. At one time the company employed 350 people, but its employment rolls had dropped sharply by the time the factory was closed. The bankruptcy also means Miller will sharply reduce Its retail operations, '84 Conventions Generated $96 Million This is part of a series of articles on personal finance appearing over the next few days in The Enquirer's Business pages. Future topics include Social Security and bonds.

BY CHET CURRIER The Associated Press NEW YORK-Most any American seeking long-term growth of his or her savings sooner or later confronts the question of whether to venture into the stock market. Of all the Investment alternatives available In this country, few receive as much regular attention as the ups and downs of stock prices. Whenever the market is doing well, tales abound of friends, neighbors or relatives "making a killing." Whenever it goes into a swoon, the exuberant mood gives way to a somber silence. As investors quickly learn, the act of buying a stock is simple. After a visit or phone call to a convenient brokerage office, a choice of a stock or stocks is made.

The brokerage firm executes the order on one of the nation's stock exchanges or In the over-the-counter market, you write out your check, and, you are the owner of a part of a corporation. Atek Metals Center a steel distributor, has broken ground for a new, office and service center across the road from Its current center on Commerce Park Drive, Union Township, Butler County. Scheduled for completion in May, Atek President Barry Bucher said the new facility will mean the hiring of about 15 additional employees. Current employment Is 50. Plans for Atek's current building haven't been announced.

Atek also has facilities in Houston, Hartford and San Diego. Firms Raise Dividends Directors of several companies with operations or headquarters in Cincinnati have raised dividends. They are: American Controlled Industries, to 25 cents a share, payable March 12, to shareholders of record March 4. Vulcan to 20 cents a share, payable March 12, to shareholders of record March 4. Society to 46 cents a share, payable March 15 to shareholders of record on March 5.

Huntington Bancshares to 37 cents a share, payable April 1 to shareholders of record on March 4. First National Acquisition First National Cincinnati Corp. has finalized the acquisition of the Preble County Bank, Eaton, Ohio. Oliver W. Waddell, chairman and chief executive officer of the Cincinnati-based bank holding company, and iimiiom winstnnrl chairman and Dresi- PICKING THE right stock to buy, at the right time, is another story.

Legions of people devote huge amounts of time and effort to the task-yet the goal of big profits eludes all but a few of them almost all of the time. The market has something to offer for Just about anybody who can tolerate Its often-perplexing gyrations from volatile stocks of small companies that offer the hope of great reward, to more staid, high-yielding issues for the more conservative investor. Whatever your temperament, most financial advisers agree, you should probably not put any significant amount of money in stocks until you have seen to other basic needs food and housing for you and your dependents, insurance against unexpected hazard or untimely death, and a cash r- I tendee spent $330. The bureau's annual report said it looks for an upswing in Cincinnati's convention business in the coming years. The city booked 326 future conventions during the year, compared to 266 in 1983.

The value of future conventions booked is $81.2 million, compared to $68.9 million in 1983, the bureau said. The bureau credited the growth to an Increase In the number of downtown hotel rooms and the Convention Center expansion. Greater Cincinnati received a $96 million economic boost from the convention business In 1984, even though attendance at conventions dropped last year. That news was released Thursday by the Greater Cincinnati Convention and Visitors Bureau, a private, non-profit corporation charged with developing the convention trade. The bureau said attendance at Cincinnati conventions fell to 290,893 from 302,600 In 1983.

The average at -A (See STOCKS, Page B-8) PC Manufacturers Cater To Different Personalities T.R. Reid and Michael Schrage Computer Report are $10. Clips coupons. Likes revival movie theaters. Reads PeopJe magazine but doesn't admit It.

Coleco Adam. Devout family man. Adores Disney films. Likes computing with the children. Cringes when he hears the line, "Never give a sucker an even break." Atari.

Likes videogames. Likes color. Will only let children play with the computer if he can beat them at the game that's running. Favorite TV show is "MASH." Kaypro. Drives a Volkswagen or car of that ilk.

Functional and pragmatic. Only a nodding acquaintance with aesthetics. Cheap. As the competition to sell personal computers intensifies, manufacturers are struggling to differentiate their products. Just as Detroit markets its automobiles to fit various lifestyles, Just as hotel chains appeal to different demographics, and the cola people hype the virtues of their fizzy drinks, personal-computer companies are trying lifestyle marketing.

WASHINGTON POST A few years ago, there were two kinds of people: those who owned a computer and those who didn't. Things have grown more sophisticated. Personal computers are now like that saying about pets and their owners-they begin to look like each other. Just as you can tell a lot about someone who keeps twelve cats or drives a Rolls Royce, generalizations can be made about people based on the kind of computer company they keep. After a survey of who owns what, guidelines emerge that match personality type with PC.

Think of the following personality sketches to help you avoid a social faux pas when the chitchat turns to PCs. With personal computers, sociology is more Important than technology. (Excuse the male pronoun, but males own the majority of PCs.) If he owns: An IBM PC, XT or AT. Voted for F.ats steak and Dotatoes. Drives dent of the Preble County Bank, announced that the Eaton bank officially became a subsidiary on Feb.

15. Sears Plans Broad Use Card Sears, Roebuck Co. plans to Introduce by the end of the year a new general-purpose credit card that like Visa and MasterCard can be used at other retail businesses and for travel and entertainment. The still-unnamed card will be Introduced In pilot cities andwlll offer a package of financial services, Including a family savings account, the company said. Sears retail and catalog stores will honor both the new card and the original Sears credit card and will continue to offer the old card, the company added.

Gannett Buys Magazine Gannett Co. Inc. has agreed to acquire Family Weekly magazine, circulated on weekends to 362 newspapers from, CBS Inc. for an undisclosed amount. Family Weekly Is the third largest weekly magazine in total circulation behind Parade and TV Guide, Gannett said.

It Is Gannett's second national publication. The first was USA Today. The Cincinnati Enquirer Is a member of the Gannett newspaper group. THE CINCINNATI ENQUIRER and ENQUIRER NEWS SERVICES tax-exempt bonds, plays the stock market a little and owns shares In IBM. Skims the Wall Street Journal but reads Forbes religiously.

Buys disposable umbrellas. An Apple Macintosh. Voted for John Anderson. Jogs. Eats brie.

Favorite movie is "The Big Chill." Thinks winning Trivial Pursuit is Important. Frustrated artist. Gets wet when It rains. Wants to buy a Volvo but can't afford one because he purchased a Macintosh, so he owns a Toyota. Always drives faster than the speed limit.

Subscribes to The New Yorker but only looks at the cartoons. Does read Inc. and Venture magazines. Hides copy of People magazine In the bathroom. Favorite TV show is "Hill Street Blues." Never watches the network news prefers cable TV Instead.

Doesn't play poker unless the cards are wild. Apple Ie or lie. Same as Macintosh but not as "hip." Plays poker better, though. Commodore 64. Reads Consumer Reports religiously.

Drives used car. Eats McDonald's hamburgers and French fries. Children wear hand-me-downs and taught the Importance of an education. Plays penny-ante poker but stops when losses I Slight over-achiever but not particularly Innovative. Likes John Wayne and Paul Newman movies.

Always watches the network news. Favorite TV show is "Wall Street Week." Reads the Wall Street Journal religiously. Owns money-market funds and stock In IBM. Never draws to an inside straight. An IBM compatible.

Voted for Reagan but worries about the deficit. Eats chopped steak and baked potatoes. Will draw to an inside straight if the pot is under $10. Drives a Japanese car that almost looks like a Ford. Buys name-brand suits at discount prices.

Has immaculate taste in ties. Even at 70 mph, drives at the same speed as other cars. Lets children play games on the computer. Wants to get ahead but not sure of the cost. Watches "Wall Street Week" but prefers "Dynasty." Owns I ,4 1 a big car that almost gets good mileage.

Wears nice suits. Wears white shirts to work. Wears solid ties or ugly paisley ones. Drives at 55 mph If children are In the car. Has an umbrella at home, in the car and at the office.

Only lets the children do homework on the PC. T.R. Reid, Denver bureau chief of the Washington Post, is writing a book about computers and software, Michael Schrage covers high technology tor the Post. 1.