The Cincinnati Enquirer from Cincinnati, Ohio on September 19, 1991 · Page 17
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September 19, 1991

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The Cincinnati Enquirer from Cincinnati, Ohio · Page 17

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Thursday, September 19, 1991
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THE CINCINNATI ENQUIRER THURSDAY, SEPTEMBER 19, 1991 B-5 Amex stocksB-6 Mutual fundsB-6 NYSE stocksB-7 NASDAQ selectB-8 Housing starts down eatioeally Portfolio BUSINESS NEWS, 369-1962 O) 1 - - mcmnati i area posts M M 3.9 drop 3100 3050 3000 2950 2900 BY JEFF McKINNEY The Cincinnati Enquirer Despite a drop in housing luou - starts in Greater Cincinnati in August, the local housing market is not being affected by the recession as severely as the rest of the nation. 6 iu li is io i io Sept. Dow Jones 30 Industrials Dally highs, with closes at arrow tip Area-Interest stocks In Industrial average (NYSE change from previous day) AT&T Unch. GEE 14 P&G 78 Cincinnati Stock Exchange volume Wednesday 928,300 Across the country, housing starts dropped 6.5 in August, the National Association of Home Builders said Wednesday. A total of 95,300 homes were built in August, vs. 102,000 in August, 1990. M-fm hthi k ill -r - i 'if - ' J Locally, the number of homes under construction in Cincinnati and Northern Kentucky in August was 513, down 3.9 from 534 m August, 1990, according to the Home Builders Association of Greater Cincinnati and the Home Builders Association of Northern Kentucky. But housing starts in Cincin nati rose for the second consecu Market crawls slightly ahead The stock market eked out a small gain Wednesday while Wall Street kept a cautious eye on news from the Middle East. Trading slowed in the absence of some investors who were observing the Jewish holiday Yom Kippur. The Dow Jones average of 30 industrials, which had slipped 2.02 points on Tuesday, edged up 4.70 to 3,017.89. Big Board volume came to an estimated 141.30 million shares as of 4 p.m. EDT, against 168.31 million at the same point Tuesday. Salomon selling securities Salomon Inc. said in a federal filing Wednesday that it is selling large securities holdings to help finance its operations because of increased difficulty in borrowing money. Salomon, which has admitted violating rules governing Treasury auctions, said its borrowing costs had in - -- n i , . .mi- " . . . . tive month. That may indicate lower interest rates might be causing people to buy more expensive homes after selling their existing ones, said Nancy K. Ca- The Cincinnati Enquireclile photo Housing construction in Greater Cincinnati, although down compared to August, 1990, is doing better than the nation as a whole. Housing indicators creased because of the scandal and it was hall, a spokeswoman for Cincinnati home builders. A total of 414 building permits was issued for single-family homes in August in Hamilton, Butler, Clermont and Warren counties, up 5.1 from 394 permits issued in August, 1990, Ca-hall said. "We're hoping that housing starts this year will be the same or slightly higher than a year ago," she said. In Northern Kentucky, 99 permits were issued for single-family homes in Boone, Kenton and Campbell counties, down 29.2 from 140 permits issued during August, 1990. Don Wiedeman, a spokesman for the Home Builders Association of Northern Kentucky, said making "substantial reductions in secun ties positions." In a filing with the Securi New construction of houses and apartments totaled a seasonally adjusted annual rate of 1.065 million, up from a revised 1.059 million a month earlier. The July rate was even weaker than the original estimate of 1.07 million. Although housing starts have increased 25.7 since their January low, starts in the first eight months of the year remained 20.9 below those of the same period of 1990. Analysts said the government report suggested the housing recovery was weakening, if not stopping. "These numbers show a housing recovery losing steam, at least through August," said economist Richard Peach of the Mortgage Bankers Association. housing starts might have flattened out after rising this summer because people are concerned about the economy. Walt Dunleavy, a vice president at Rauch & MacDonald Builder Inc. in Alexandria, Ky., said consumers could be concerned about the economy because it's being portrayed negatively by the national media. "Even though the local economy is strong, people seem to be holding back a little until they believe the national economy is improving," Dunleavy said. Nationally, on a month-to-month basis, new housing construction rose 0.6 from July to August, the smallest gain in three months. The three basic indicators that gauge the housing industry locally and nationally (with their latest figures): Existing homes: Homes that have been occupied and resold. The number of homes sold in July in Cincinnati and Northern Kentucky was 1,341, compared with 1,343 in July, 1990. Nationally, the number of units sold was 314,000 in July, compared with 299,000 In July, 1990. The August report will be issued Sept. 25. New homes: Homes that have been sold for the first time by a real estate agent or builder. The number sold in July in Cincinnati was 161, unchanged from July, 1991. Real estate agents in Northern Kentucky do not break down new-home sales. Nationally, the number of new units sold in July was 472,000, compared with 541,000 in July, 1990. The August report will be issued Sept. 29. Housing starts: Brand-new homes that are being built. The number of homes under construction in Cincinnati and Northern Kentucky in August was 513, vs. 534 in August, 1990. The number of homes built nationally in August was 95,300, compared with 102,000 in August, 1990. The September report will be issued Oct. 18. 5 ties and Exchange Commission, Salomon said the securities sales were designed to reduce the firm's dependence on unsecured sources of funding, which have been harder to come by because of the scandal. Borrowers losing battle Recession-pinched consumers are falling behind on loan payments at the second-highest rate in more than a decade, a trade erouo said Wednesday. The per centace ot Tristate consumer loans at least 30 days past due rose to a Local firm saluted for hot invention seasonally adjusted 2.73 in the April-June A Tristate list of delinquencies in consumer loans during the April-June quarter of 1991 and the same period a year earlier. The figures, which are unadjusted, represent the percentage of bank consumer loans 30 days or more in arrears. quarter, the American Bankers As sociation said. It was on their technological significance or because their inventions are the type of thing people say "gee whiz why didn't I think of that." Cassidy said Zesto Therm's ration heater falls in the latter category. "They've created a product that's extremely safe, that works under adverse conditions like Desert Storm and requires no technology on the part of the user," he said. Zesto Therm has sold about six million ration heaters so far. The company has also attempted to market the product to hunters and outdoors enthusiasts. tion that heats the water to boiling. The meal-in-a-pouch MREs are heated after about 10 minutes in the boiling water. Kuhn, who formed Zesto Therm in 1984, shares patent rights to the invention with the University of Cincinnati. He was traveling to Chicago Wednesday and couldn't be reached for comment. Robert Cassidy, R&D editor, said the R&D 100 is selected annually by the magazine's editors and a panel of judges from hundreds of inventions submitted each year. The winners are picked, he said, based will be featured in the magazine's October issue. Zesto Therm's invention was used by thousands of troops in Operation Desert Storm to heat millions of field rations, called Meals-Ready-to-Eat, or MRE, by the military. Developed by William E. Kuhn, Zesto Therm president and a former University of Cincinnati research professor, under a grant from the Defense Department, the ration heater is simplicity itself. Adding water to a plastic bag containing a 20-gram wafer sets off a chemical reac BY MIKE BOYER The Cincinnati Enquirer A flameless ration heater made by a small Springdale firm has been picked as one of the 100 best inventions this year by R&D magazine, an industrial research trade publication. The ration heater, produced by Zesto Therm Inc., on Northland Boulevard, is among 30 of the inventions on display today at Chicago's Museum of Science and Industry, as a preview of this year's R&D 100 Award winners. The award winners the fifth con s e c u t i v e 1990 2.43 2.74 1.90 2.36 1991 1.80 1.72 2.66 2.56 State Ind. Ky. Ohio U.S. quarterly in crease and except for temporary spurt to 2.88 in the third quarter of 1989, the highest level since the second Toyota ad War put airline orders on standby made in BY MIKE BOYER The Cincinnati Enquirer CFM execs earn Legion of Honor the U.S.A. The recession and the Persian Gulf aftermath have taken some of the thrust out of airlines' aircraft orders this year, the head of BY FREDERICK STANDISH The Associated Press most visible symbol of Franco-American industrial and technological cooperation," and noted that SNECMA has become one of brilliant engineer and a pivotal person in the fruitful Franco-American cooperation." A graduate of the University of Cincin DETROIT Toyota's U.S. television advertising for 1992 will include shots of workers inside the company's Georgetown, p i Ky., assembly plant to show the largest Japanese automaker is a good U.S. citizen. France's leading exporters as a result of its cooperation with GE. He told Bilien: "France is grateful for what you've a c c o m - Ren Rooney, corporate mar nati, Homan joined GE in 1956 and worked on the F101 engine program for the B-l bomber before being named man- keting manager for Toyota Motor quarter of 1980. Economists said the upturn, from 2.67 in the first three months of the year and 2.55 a year earlier, was a bad sign for the economic recovery because it will make banks even more cautious about credit. BankAmerica had big stake BankAmerica Corp., a founding investor in the Bank of Credit and Commerce International, had a much higher stake in the outlaw institution than previously believed, the Federal Reserve says. BankA-merica's dealings with BCCI go back to the founding of the international bank in 1972 by a group of Pakistani businessmen. Over the years, some BankAmerica executives and managers took jobs with BCCI. Minority-owned firms trail Small businesses owned by white men had far greater revenues than those owned by minorities and women during the 1980s economic boom, a Census Bureau report said Wednesday. Small businesses owned by white men on average had $189,000 in receipts in 1987, more than double the average for owners from any other group except Asian-Pacific Islander men. Firms owned by men of Asian-Pacific Islander origin on average had $107,000 in receipts. Firms owned by Hispanic men had average receipts of $66,000 apiece; by black men, $50,000 apiece; and by American Indian and Alaska native men, $47,000. Dudley Taft named to board Dudley S. Taft, 51, has been elected to the board of directors of Cincinnati-based The Future Now Inc. Taft is president and chief executive officer of Taft Broadcasting Co. With more than 300 employees, the company has six sales offices in Cin-rinnati- Cnlumhus. Ohio: Davton. Ohio; BY MIKE BOYER The Cincinnati Enquirer The Legion of Honor, France's highest award, was presented Wednesday to two Cincinnatians for their role in the growth of CFM International, the best-selling jet engine venture of SNECMA of France and GE Aircraft Engines. Jean Bilien, CFM chairman and a former SNECMA executive, and Frank R. Homan, who retired recently as CFM executive vice president, were presented the award by Jacques Andreani, France's ambassador to the United States, at GE's Jet Propulsion Museum in Evendale. Since its first order in 1979, CFM has become the world's best-selling commercial jet engine with orders of more than $30 billion. Andreani hailed the GE-SNECMA partnership as "the Bilien France s largest jet engine company said Wednesday in Cincinnati. Largely because airline passenger traffic hasn't improved as quickly as anticipated, "the market (for new aircraft) isn't very good now," said Louis Gallois, chairman of SNECMA, a partner with GE Aircraft Engines on several commercial engine programs. But he said SNECMA expects the aircraft market to rebound next year as airline traffic grows. Gallois came to Cincinnati to meet with GE executives and participate in a ceremony awarding the French Legion of Honor to two key executives of the GE-SNECMA partnership Jean Bilien, chairman of CFM International, and Frank Homan, who retired this year as executive vice president of the joint venture. Starting in 1969 when it joined forces with GE on the CF6-50 engine, SNECMA has been a major GE partner. In addition to the CF6 program, SNECMA, which stands for Societe Nationale d'Etude et de Construction de Moteurs de'Aviation, is a 50-50 partner ager of Homan CFM engine systems in 1980. Established to recognize service to the French Republic, the Legion of Honor was previously awarded to three GE executives: Jack Welch Jr., GE chairman; Brian H. Rowe, senior vice president of GE Aircraft Engines and Gerhard Neumann, Rowe's predecessor. plishcd." Bilien joined SNECMA in 1966 after graduating from college. While at SNECMA he worked on the Olympus 593, the engine that powers the French Concorde supersonic jet. He joined CFM in 1975 as manager of military applications and was named chairman in 1986. Homan, said Andreani, "is a Sales, U.S.A., Inc., on Wednesday denied the ad was an effort to counter a "Buy American" campaign some companies and organized labor have used in the past. "We just want people to know we build cars" in the United States, he said. "In the long run, it will show Toyota Motors as a participant in the United States." The Toyota ad will be the first national television ad by a Japanese automaker showing its U.S. workers. Honda Motor Co. Ltd., Mazda Motor Corp. and Nissan Motor Co. Ltd. also operate their own manufacturing plants in the United States. Toyota's Kentucky assembly plant, which began building Cam-rys in 1988, is undergoing a major ' expansion. It will be the source of about 80 of the redesigned 1992 Camry cars sold in the United States next year. Engines made by GE and SNECMA are now on about 28 Brian H. Rowe, GE's senior vice president. Gallois said the GE90 has laid the groundwork for 40 more years of cooperation between the two companies. Fort Wayne, Ind.; Indianapolis and Louis- with GE on the best-selling CFM56 engine and is a 25 partner on the new high-thrust GE90 engine. "It's what I call continuous improvement at its best," said of the world s commercial jet fleet and will be on half the jets flying by the end of the century, Compiled by Dick Benson from staff and news service reports said Bilien. T II 1 n n l I i " - r 1 ! ii 'li t AAr-i.AJiHm,

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