The Tennessean from Nashville, Tennessee • Page 41

Dilbert 2E Livestock 3E Classified Looking for a pal? Try our pet listings 7-14E BUSINESS THURSDAY, MARCH 14, 2002 LEADERS BRING THEIR EXPERTISE TO THE MIDSTATE Bush economist says tax cut aiding recovery Hotel magnate warns against knee-jerk cuts hit 1 i -r -i slow time, winners are still winning." One winner, in Schulze's eyes, Nashville's Gaylord Entertainment Co. He praised its "fine organization" with "immaculate hotels," one of which is Nashville's Gaylord Opryland Resort Convention Center. Schulze, who headed the Ritz-Carlton chain from 1988 until he retired about two weeks ago, spoke to members of Belmont University's Peer Learning Network. The group brings top executives together to share practices and learn from one another. Please see SCHULZE, 6E By GETAHN WARD Staff Writer MURFREESBORO A recovery is under way in the U.S.

economy, buoyed in part by last year's tax cut, the chairman of the White House Council of Economic Advisers said yesterday. "The tax cut is a big underpinning of the recovery," R. Glenn Hubbard said at Middle Tennessee State University after addressing the 10th Financial Industry Outlook conference. His remarks on the economy reiterated comments he made last week and came as some congressional Democrats have criti cized the tax cut for reducing the federal budget surplus. Besides his role as the Bush administration's chief economist, Hubbard is a member of the National Bureau of Economic Research, which in November declared that a recession had begun last March.

Hubbard, an economics and finance professor on leave from Columbia University in New York, branded as "reasonable" a private-sector forecast of modest economic growth in the first half of this year and growth in the Please see HUBBARD, 6E By KATHY CARLSON Staff Writer Businesses need to look beyond quarterly financial results and focus on their missions to excel, former Ritz-Carl-ton Hotel Co. Vice Chairman Horst Schulze told a group of Nashville executives yesterday. Even in a slowdown such as the one the nation experienced after the Sept 11 attacks, "You should save by improving your processes, not by taking away from the customer," he said. Hotels have pretty much bounced back now, he said after his half-hour talk, and "even in a GEORGE WALKER IV STAFF Bush administration economist R. Glenn Hubbard talks at a financial conference about effects of the president's policies.

KATHY CARLSON Horst Schulze speaks to a Belmont University executive program about keeping customers happy and companies healthy. TRW plans to spin off ffinWn4a or sell unit -viLILULl IL Grocer ranked 4th in Nashville market Albertson's closed four other Nashville-area stores last month, after having lost local market share. The chain has been under pressure to hold costs down, having spent more than expected to absorb its $125 billion purchase of American Stores in 1999. The company, which ranks behind Kroger as the nation's No. 2 grocery company, also is moving out of the Houston and San Antonio markets, saying the Please see STORES, 6E The Boise, Idaho-based chain is actually leaving the state of Tennessee, also closing its 13 Seessel's stores in Memphis and a division office there.

"We will tell our employees which stores are on the quick-close list (and) could be closed within the next month," Duwe said. "The rest of the stores will continue to operate until, hopefully, we find a buyer." However, it is possible that those stores could be shut down as well if a buyer is not found, she said. By CANDY McCAMPBELL Staff Writer Albertson's which came to the Nashville area in 1998 when it bought the FoodMax and Bruno's supermarkets, said yesterday it couldn't make enough money and is pulling out. Whether the seven stores will be closed immediately leaving 675 workers jobless or sold to another chain won't be announced until after store officials meet with employees today, spokeswoman Jeannette Duwe said. Albertson's leaves market Albertson's Inc.

is closing its remaining seven stores in the Nashville market. It closed four last month. vfWsiimnerCo. Gallatin Associated Press TRW board said yesterday that it planned to spin off or sell its automotive parts business, which includes plants in Lebanon and Cookeville, within nine months. The company makes commercial steering parts in Lebanon and other parts in Cookeville.

Its other plants in Tennessee are in Rogersville, Sevierville and Vonore. The five sites employ more than 2,000 people total. Cleveland-based TRW, also a major defense manufacturer, said it had begun talks with others that have expressed interest in buying all or part of its automotive business and its aeronautical systems business. TRW said it intended to create shareholder value by cutting its debt and spinning off or selling its automotive parts business while keeping its defense business. Also yesterday, TRWs board for a second time rejected Northrop Grumman unsolicited $5.9 billion buyout offer, which is well below the current market price of TRWs common stock.

Shares closed at $5L17 yesterday, up 89 cents. Mark Koznark, an analyst with Midwest Research, said TRW already had been thinking about spinning off the automotive unit: "Northrop clearly accelerated this, but it is not anything that wasn't already contemplated." The automotive business yields 64 of the company's sales and 58 of its profit. In a conference call, TRW Chairman Phillip Odeen said the automotive business would be an attractive public company that would benefit from an increase in auto production this yean "It will do just fine on its own." Related story on Page 6E f( Hendersonville 2i Davidson Co. yL I CLOSING 1. 110 Indian Lake Boulevard, Hendersonville 2.

4670 Lebanon Pike, Hermitage 3. 7604 U.S. 70s, Bellevue 4. 8105 Moores Lane, Brentwood 5. 2020 Fieldstone Parkway, Franklin 6.

1 021 Center Pointe Place, Franklin 7. 845 Nashville Highway, Columbia ALREADY CLOSED I -S Brentwood 7T- V. I JT a TSV LaVergne Franklin Q' I Williamson 5 1 Maury CoNW Rutherford Co. 1. 1100 S.

Gallatin Pike, Madison 2.2381 Murfreesboro, Pike, Nashville a 5527 Edmondson Pike, Nashville 4. 710 Memorial Boulevard, Mufreesboro LARRY MCCORMACK STAFF This empty parking lot at the Albertson's store in Hendersonville is representative of the reason the grocery chain is pulling out of Tennessee. Although it is No. 2 behind Kroger in nationwide customer market share, it ranks fourth in the Nashville area. Seven Midstate Albertson's will either be sold or closed in the near future.

Columbiap 412; f3 KENT TRAVIS STAFF Gasoline prices rise with spring temps Closing figures for March 13, 2002 DowJones 10,501.85 130.50 T1.23 Pumping up Gasoline prices, which declined significantly after September, have begun to rise again as demand increases and import levels drop. Price per gallon 11.49 .99 35.08 T1.85 .48 21 3.45 .69 1154.09 Nasdaq 1862.04 Tenn. Index 227.04 Russen2000 495.45 Btoombeig News $1.70 said. The speculative price of crude oil has gradually risen in the past two weeks on the spot commodities market. Oil scheduled to be delivered in April closed at $24.16 for a 42-gallon barrel yesterday.

That's down 4 cents from Tuesday, but up 99 cents from the week before. Spot market oil prices stayed above $24 during the first three days of this week, their highest level since Sept 21, when the price closed at $2555 a barreL Bush Bernard covers manufacturing, labor and transportation. He can be reached at 259-8092 or improved. OPEC cuts are likely to continue into the late spring, the agency reported "When they decide to cut production, that raises the price," said Jim Bruhn, district manager for AAA Auto Club South, the local AAA affiliate. The price increases, which began about two weeks ago, come as people prepare for spring break and Easter travel, Bruhn said.

Yesterday's average gas price was 14.8 cents less than a year ago, and people are gearing up to drive. "We are expecting a real busy spring and summer," Bruhn weekly increases since the federal Energy Information Agency began tracking weekly gas prices in 1990. The agency, an arm of the U.S. Department of Energy, blames the price rise on tight oil supplies. "Whatever windfall consumers may have enjoyed this winter is over," a report the agency released yesterday said.

The effect of the Organization of Petroleum Exporting Countries' decision to cut production in January is starting to be felt at U.S. refineries, the agency reported. At the same time, demand for gasoline has increased as the economy has By BUSH BERNARD Staff Writer Gasoline prices jumped 8.8 cents a gallon in Nashville during the past week as oil supplies shrank amid demand increases. The average price for a gallon of self-service regular unleaded gasoline in Nashville was $L181 yesterday, up from $1,093 the week before, according to www.fuelgaugereport.com, a Web site run by the American Automobile Association. The average price a month ago was $L063 cents a galloa The weekly price increase was about 7.9 cents a gallon nationwide, one of the largest 1.60 -pr 1 .40 I I 4 nn Business Editor: Bill Choyke, 664-2156 bchoyketennessean.com Assistant Business Editor: Kevin Paulk, 259-8284 kpaulktennessean.com To report business news: rwwstipstennessean.com MAMJJASONDJFM 2001 2002 SOURCE: AAA Auto Club South MATT GARTON STAFF www.tennessean.com Working for Small Business.

First Tennessee has all the tools you need to make your business dollars work harder. Tools like First ResourceSM Checking and Online Banking for Business. To learn more, stop by a First Tennessee financial center, call us toll-free at 1-888-FTB-8998, or visit us online at www.firsttennessee.com. EFirstTennessee A All Things Financial..