The Cincinnati Enquirer from Cincinnati, Ohio on October 18, 1991 · Page 21
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The Cincinnati Enquirer from Cincinnati, Ohio · Page 21

Cincinnati, Ohio
Issue Date:
Friday, October 18, 1991
Page 21
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THE CINCINNATI ENQUIRER FRIDAY, OCTOBER 18, 1991 B-7 O) Q) Amex stocksB-9 Mutual fundsB-lOD O NASDAQ selectB-6 NYSE stocksB-8 Vr7 tenner's cutbacks cost 300 jobs; Portfolio Parent Hasbro announces move as part of toymaker's restructuring EDITOR: JACK SEAMONDS, 369-1962 i m Y i M i 3100 3050 3000 2950 2900 i ii i UW" 11 -- t. f t f These moves ensure that both " our division and our company will remain strong, productive and competitive on a go-forward basis. J J ss il last step in restructuring the toy businesses it acquired in May in a $500 million purchase of debt-burdened Tonka Corp. Tonka acquired Kenner and Parker Broth-, ers games in 1987. Previously, Hasbro closed Tonka's Min-netonka, Minn., headquarters and merged. Parker Brothers with its Milton Bradley operations. "Tonka's financial difficulties, coupled with the excess capacity in their manufacturing facilities, left us with no choice but. to take these actions," said Alfred Verrecchia, Hasbro's chief operating officer. The Oakley operations, which include production of Play-Doh and a few other Kenner toys as well as distribution, will be moved to other Hasbro plants. Employment at the Oakley plant, which once approached 1,000, has steadily declined as toy production moved overseas. BY MIKE BOYER The Cincinnati Enquirer Half the 600 people employed by Ken-ner Products in Cincinnati will lose their jobs in the next four months in cost-cutting steps announced Thursday by its parent, Hasbro Inc. The Pawtucket, R.I.-based toymaker said it will, shut down most operations at Kenner's manufacturing and distribution center on Robertson Avenue, Oakley, Feb. 28, eliminating 200 jobs. In addition, Hasbro said it will eliminate 100 jobs from Kenner's headquarters in the Kroger Building in downtown Cincinnati starting next Friday. Sixty employees at the downtown office in the sales, marketing and design departments will be terminated then. Another 40 office employees will be laid off by mid-1992. "This is a difficult decision reached only after careful analysis," Kenner President Bruce Stein said in a statement. "However, these moves ensure that both our division and our company will remain strong, productive and competitive on a go-forward basis." After the cuts, Kenner will employ about 300 people in Cincinnati overseeing the design, marketing and sales of the I iTir I il I ' : : ii. i. . IV SACRIFICING vacate MUST SACniFtCI OOOOOC Bruce Stein, Kenner president Kenner product line, Wayne Charness, Hasbro spokesman, said. Kenner has been studying its office space needs here, but he said no decisions have been made. Hasbro said it will provide employees with severance benefits and help in searching for new jobs. Hasbro said the Kenner job cuts are the . '"V-. v. . Iff - : . m m. I The Cincinnati EnquirerPhaedra Singelis real estate brokers say there are no obvi ous locations available in that area big enough to accommodate Burkhardt's needs, short of Burkhardt s buying out a current tenant. Berger said Burkhardt's is not currently working with any local real estate agents to find space. He said he has met with City Manager Gerald Newfarmer and city development officials for help in finding a new store location. Sales at Burkhardt's other location, at Kenwood Towne Centre, are up 11 so far this year, and that store will not be affected by the move, Berger said. Burkhardt's parent, Tom James, sells men's custom clothing directly to businessmen in their offices, through a sales force of about 250. The two Burkhardt's stores in Cincinnati are the only retail stores the company owns. j i i t INVENTORV NOWI i J C D A D C AI l& Burkhardt's men's clothing is moving out of the Fourth Street location where it's done business for 70 years. A liquidation sale began Tuesday. Fourth St. Burkhardt's to close Owner to sell building; store seeks smaller downtown site o y iu ii it is id ii Oct. . ; 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. GE 14 P&G 18 Cincinnati Stock Exchange volume Thursday 1,818,000 Dow retreats from record high The stock market declined slightly Thursday, pulling back from Wednesday's record highs as interest rates jumped. The Dow Jones average of 30 industrials, up 20.35 points Wednesday to a new closing peak, dropped 8.72 to 3,053.00. Declining issues held a slight edge on advances at the New York Stock Exchange. Big Board volume came to an estimated 202.79 million shares as of 4 p.m. EDT, against 225.29 million at the same point Wednesday. Study tour at Good Sam A group of British business people visited Good Samaritan Hospital Thursday as part of a 19-day study tour of American companies that have been recognized for customer service. The 1991 Service Excellence Experience, sponsored by the business school at the University of Manchester, Manchester, England, heard talks by William Kirkwood, vice presidenttotal quality program, and Chuck Stelzle, manager of the hospital's guest relations program. Good Samaritan was included on the tour because its guest relations program won the 1989 award of excellence from the International Customer Service Association. Argo Foods files for protection The parent company of Lynch Foods and Lynch Fish Co., an 80-year-old Cincinnati-based food distributor, has filed for Chapter 11 reorganization in U.S. Bankruptcy Court. Richard Nelson, an attorney for the' 15-member company, said Argo Foods Inc. will continue to operate while reorganizing. He attributed the filing to "general economic conditions" but could not be more specific. An accounting of assets and debts was not available, but the firm listed liabilities of $2.4 million. Milken wants reduction Michael Milken asked a judge Thursday to reduce his prison term because he had cooperated extensively with the government, hut nrosecutors called the former junk bond financier's information limited and stale. Milken, was sentenced in ino vember to 10 vears in orison after plead inff auiltv to six felonies related to illegal trading while he ran the high-yield bond department at Drexel Burnnam Lambert Inc. IBM unveils new product TRM Thursday unveiled its first "multi media" personal computer, powered by an IRM-made microorocessor faster than the Intel Corp. chip it replaces. International Business Machines Corp. also announced a series of other products designed to mix vidpn. sound and text on computers, in cluding one that allows computer users to watch TV in a small window on meir crrppn. Compiled by Dick Benson from staff and news service reports Recovery Bad news dominates latest reports 0 8 BY MARTIN CRUTSINGER The Associated Press WASHINGTON Consumer prices, buffeted by higher costs for energy, food and housing, jumped 0.4 last month in the biggest inflation spurt since January, the government said Thursday. In other bad economic news, industrial production rose a lackluster 0.1 in September, while the country's merchandise trade deficit widened dramatically as overseas demand for American products took a nosedive. Economists blamed the worse-than-expected inflation number for the most part on 1-0.2 Sep. Soum; U S price Patomt seasonally 0.6 1M temporary worried depicted Computer dealer has bigger byte Future Now buying three new outlets BY MIKE BOYER The Cincinnati Enquirer In its largest acquisition to date, The-' Future Now, a Sharonville computer deal-' er, Thursday said it is buying three separately owned dealerships in Cleveland,; Lexington, Ky., and Moline, Ill.-Daven-port, Iowa. "These agreements demonstrate The Future Now's ongoing effort to capitalize on the consolidation taking place in the industry today," President Terry Theye said. The Future Now, which went public in June, said the total purchase price for the three separately owned dealerships is about $2.5 million, including $1.7 million in cash, $400,000 in Future Now stock and the balance in debt assumption. . The company said it also will pay $1.1, million through November, 1994, to the, selling shareholders in the form of consulting and non-compete agreements. The dealerships had combined net income of $850,000 for the first nine months of 1991 on revenues of $10.1 million. The Future Now won't report its results for the first nine months until next week, but for the first six months, it reported profits of $1.2 million, or 50$ a share, on revenues of $58 million. In the last few years, The Future Now has become one of the Midwest's largest distributors of microcomputer hardware and software by acquiring smaller resellers. . The company says it is the leading microcomputer dealer in the Cincinnati, Indianapolis and Louisville markets. It also has outlets in Columbus, Ohio; Dayton, Ohio; and Fort Wayne, Ind. The new operations, all part of the Entre computer franchise network, are: Entre Computer Centers in Moline and Davenport, which sit astride the Mississippi River; Office Automation Center in Lexington; and Multiple Connections Inc.; in the Cleveland suburb of Rocky River. ' Theye said the Cleveland acquisition is significant because it gives the company outlets in all three of Ohio's largest cities. Cincinnati Bell Inc. Third quarter 1991 1990 Chg Revenues $285.2 $263.2 8.3 Net income $18.8 $23.5 -20.2 Per share 29$ 37 -21.6 Nine months 1991 1990 Chg Revenues $816.2 $729.811.8 Net Income $26.4 $65.7 -59.8 Per share 38 $1.04 -63.5 Figures in millions except per-share earnings. also were hurt by a $12.9 million writeoff of a product developed by its software; subsidiary and to a $3.3 million charge against an investment in a now bankrupt distributor of a pagerwristwatch. Theodore J. Moreau, an analyst at Rob" ert W. Baird Inc. in Milwaukee, predicted that Cincinnati Bell probably won't have; any increase in quarterly earnings until (Please see EARNINGS, Page B-9 BY JOHN J. BYCZKOWSKI The Cincinnati Enquirer Burkhardt's men's clothing is closing the East Fourth Street store where the firm has done business for 70 of its 125 years but said Thursday it is committed to finding another location downtown. The store's parent, Tom James Co. of Brentwood, Tenn., is selling the three-story building containing the store and offices to an as-yet-unnamed buyer. Burkhardt's President Jack Berger said the firm must vacate the store by Jan. 31. Berger would not name the building's buyer and said he did not know whether another tenant would move into the building when Burkhardt's leaves. None of Burkhardt's 40 employees in the store and offices would be laid off, Berger said. takes another beating Soft economy, acquisitions take toll on Bell earnings i Burkhardt's expects to put all of its merchandise on one floor in a smaller location. "We feel that we can better serve our customer by working out of a smaller location. Two floors is very, very hard to manage," Berger said. The store's two-floor layout often blinds customers to what Burkhardt's carries, he said. They'll buy a suit on the second floor, "but often, they forget we have the fine sportswear on the first floor, so the customer walks out without seeing what we have." The store also needs remodeling. "The building is old, and frankly, we want to get a street location that we can start out fresh and portray the right image," Berger said. The company would prefer a storefront with up to 7,000 square feet, along Fourth between Walnut and Race streets. Local U.S. economy," said Allen Si nai, chief economist of the Boston Co. "We are seeing a fading of momentum on the industrial side of the economy along with higher inflation than we had been running." A new poll released by the U.S. Chamber of Commerce found that confidence among business leaders has plummeted to an 18-month low as business executives worry about weak demand. The chamber said that just 29.6 of the business people surveyed think that sales will increase in the next six months, while only 13.2 said they planned to hire new workers in that time period. "Business confidence on employment, sales and the 01 total opacity M J J A S Sep. '91 economy deteriorated sharply in all areas of the country since August," Chamber economist Lawrence A. Hunter said in releasing the new results, AP Capacity utilization Seasonally adjusted pwctnl 84 Consumer index ctmnga from prior month, adjusted 63 B BIT - Liiiii lllllnllllil BY JEFF McKINNEY The Cincinnati Enquirer Cincinnati Bell Inc.'s third-quarter earnings dropped 20.2 compared with the third quarter of 1990, the independent telecommunications company said Thursday. Hugh Anderson, Bell's manager of investor relations, said the decrease was attributed to the soft economy and the cost of financing $80 million worth of acquisitions Cincinnati Bell invested in last year. "We continue to be affected in all business segments because of the slower economy," he said. The decrease marks the third straight quarter that Bell's earnings have dropped: Share earnings in the first quarter were 24t compared with 29t a year ago; second-quarter share earnings were -15t vs. 38t a year ago; and in the third quarter, share earnings were 29$, down from 37t a year ago. Cincinnati Bell's year-to-date earnings ONOJFMAMJJAS 1991 ONO J F M A IMP 1W1 '90 Aug. '91 Sep. '91 Aug. '91 Dapt. (H Ubor AP Soua Fdal Rnv Bond Sep. 90 83.5 79.8 l79.7 sales had been among the few bright spots as the economy has struggled to break free of the 1990-91 recession. "This is not a good report card on the performance of the factors, but they that the other reports a listless economic recovery losing what little momentum it had. Manufacturing and export

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