Arizona Republic from Phoenix, Arizona • Page 20

REPUBLIC i CITY FINAL The Arizona Republic BEST AVAEASIE COPY Wednesday, February 18, 1987 NYSE tables C4 Amex tables C5 IU OTC tables C6 Mutual funds C7 Layoffs loom at Coca-Cola plant A move to consolidate some of its operations with a sister facility in Los Angeles will lead to some layoffs at the Phoenix Coca-Cola Bottling Co. plant. C2. 1 1 Developer plans 25-story tower Business wjjJ today mid town area MilS I Si- I i If 4 mmm I Aircraft repair site planned Firm would overhaul planes in Goodyear By KEN WESTERN I Arizona Republic Aviation Writer A Dallas-based company is working out final details to open an airline-maintenance center that could employ 300 workers within three years at the Phoenix-Good-year Municipal Airport. Dalfort Corp.

is negotiating the long-term lease of a large hangar, offices and shop at Goodyear to provide heavy maintenance for ai rcraft as large as wide-body jets. Dalfort, the parent company of Braniff Airways, selected Phoenix for the operation because of the climate, lifestyle, labor market and facilities available here, said Bruce Leadbetter, chairman of the executive committee of Braniff. The Phoenix operation is expected to handle some of the work now done by Dalfort at its facilities in Dallas, as well as new work, Leadbetter said Tuesday in a tele- phone interview. He plans to be in Phoenix today to discuss final details of the lease with airport officials and hopes to complete the contract in about a week. Dalfort plans to invest millions of dollars in sophisticated equipment to do major overhauls of transport carriers in a complex now vacant at Goodyear, Leadbetter said.

Dale States, executive vice president and general manager of Dalfort and president of Dalfort Aviation Services, said the company expects to employ about 300 people in two to three years and have an annual payroll of $10 million. Officials hope to begin working on the facility in about 45 days and to open it by this summer, he said. Airport Manager Larry Priest said the hangar had been used by the Sperry Corp. to convert F-100 planes to target drones. Continental Airlines also ex- Aircraft, C3 The Lincor building's spire will reach a height of 564 feet, or 43 stories.

Groundbreaking for the $85 million project is planned In October. U.S. businesses urged to 'get The labor secretary also briefed the council on the administration's new trade package, which was announced later in the day. At an impromptu press conference after his 40-minute session with the council, Brock said countries that engage in unfair trade practices should be' hit with punitive tariffs or should have their products barred from the United States. In encouraging U.S.

businesses to work harder at selling products abroad, Brock singled out Tokyo, South America and Brussels, Bel gium, as likely markets, 1 1 mini i i IP hoe in hi declaring thanks to business Ford earnings jump Ford Motor Co. said Tuesday that it had 1986 profits of $3.3 billion, outearn-ing industry giant General Motors Corp. for the first time since 1924. The second-ranked carmaker's net income for 1986 eclipsed GM's $2.9 billion profit and represented a 32 percent increase from the $2.5 billion earned by Ford during 1985. Net income per share for the full year was $12.32, compared with $9.09 a share in 1985.

The 1985 results were adjusted to reflect a three-for-two stock split declared in the second quarter of 1986. Ford's worldwide annual sales reached a record $62.7 billion, up from $52.8 billion in 1985. Factory car and truck sales climbed 6.6 percent to more than 5.91 million units. Piedmont studies offers Piedmont Aviation parent of fast-growing Piedmont Airlines, has received a cash takeover offer worth $1.49 billion from Norfolk Southern one of the nation's biggest railroads. Piedmont also said that it has received two alternate takeover proposals from USAir Group Inc.

but that the airline company's independent directors have recommended acceptance of the Norfolk Southern bid by Piedmont's board of directors, who are scheduled to meet Thursday. United to suspend routes United Airlines said it will suspend flights to eight cities in the United States and the Bahamas as part of a restructuring plan. The service cutbacks will take effect April 5. The cities affected by the cutbacks are Fort Wayne and South Bend, Toledo and Youngstown, Ohio; Green Bay, Corpus Christi, Texas; Lansing, and Free-port in the Bahamas. Borg-Warner cuts staff Borg-Warner Corp.

said it will reduce by 25 percent its corporate staff at its Chicago headquarters and at a Des Plaines, 111., research center. At the headquarters, 43 employees including clerical workers and vice presidents, were told their jobs would be eliminated. At the research center, 37 white-collar employees were let go. Some employees will be offered early-retirement packages. Retailer trims work force Heck's a regional Eastern retailer that recently saw a buy-out bid fall through, said it will immediately close 29 stores that employ roughly 1,000 people as part of a corporate restructuring.

Kraft unit for sale Kraft a food- and consumer-products company, plans to put the Financial a provider of lease financing for vehicles, up for sale. Kraft said it had retained Morgan Stanley Co. to sell the subsidiary. The dollar closed virtually unchanged Tuesday from previous levels in New York and slightly lower overseas as market participants await congressional testimony from key U.S. officials.

Foreign-exchange markets in the United States were closed Monday in observance of the Presidents Day holiday. Gold closed lower in New York at $392.25 an ounce, down from Friday's $397.75. In London, gold fell to $395.25 from $397.25. Silver fell to $5.39 an ounce from $5.46 Friday. Earlier in London, silver fell to $5.45 from $5.46.

Oil dipped on the spot crude-oil market, with West Texas Intermediate the key U.S. crude for immediate delivery selling at per barrel down from Tuesday on the New York Mercantile Exchange. NYSE taw, consolidated trading Tuesday, Feb. 17 Volume 218.059,110 Issues traded 2,011 NYSEindex 1 162.48 2.92 285.49 5.79 DJ Ind. 2,237.4954.14 Amex Up Highs 234: Unchanged 356 319.25 3.02 The up, unchanged end down proportions o( the sliding scale match those respective market volumes Down Lows 514 8 i in By BARBARA ROSE Thi Arizona Rtpublic i- Lincor Properties of Arizona announced plans Tuesday for a 25-story office tower at Central Avenue and Osborn Road in mid-town Phoenix.

The $85 million building, to be topped by a 250-foot spire, would be built on the southeastern corner, i Lincor said it intends to break ground in October and to complete the building in June 1989, in time "to coincide with the city's next surge in demand for Central Avenue locations." "The rapid absorption of office space along the Central Corridor is reducing the much-publicized office glut and creating a need for new, outstanding facilities," Lincor President James Kiely said. Office vacancies are declining in midtown and throughout the Valley as a result of a construction slowdown that began late in 1985. In the midtown area, about 24 percent of the office' space was vacant at the end of 1986, according to Grubb Ellis Commercial Real Estate, and vacancies are expected Touching on politics, Brock said would-be presidential candidates in both parties should be in Bal Harbour seeking the support of organized labor. Former Arizona Gov. Bruce Babbitt is scheduled to hold a reception here for union leaders this evening.

At his own press conference after the council meeting, AFLCIO President Lane Kirkland said labor enjoys "a straightforward and cordial relationship" with Brock, but he conceded that there are few areas upon which they agree. They are in accord, Kirkland said, on the concept of taking T-bill yields mixed Short-term Treasury-bill yields were mixed at the regular weekly auction. The Treasury Department auctioned $6,600 billion in 1 3-week bills at an average discount rate of 5.66 percent, down from 5.72 percent last week. The government sold $6,633 billion in 26-week bills at an average discount rate of 5.70 percent, up from 5.69 percent. Capital to The $15-per-share acquisition requires approval of Capital's shareholders, the Federal Home Loan Bank Board and the Arizona Banking Department.

These could take as long as three months. Dennis Monson, president and chief executive officer of Capital, said it operates a single office, at 6120 N. 16th St.j and has been in business for about four years. It has assets of about $32 million. to decline throughout this year.

The only major- office building under construction in midtown is a 20-story tower by Opus Southwest Corp. at 2800 N. Central about one mile south of Lincor's site. Opus' building is scheduled for completion late this year. Lincor's vice president of marketing, David Heiple, said his firm has commitments from two large tenants to lease 32 percent of the new office tower.

He declined to identify them, but Robert E.B. Allen, a partner in the law firm of Brown Bain, said, "We anticipate becoming a tenant." Brown Bain currently occupies six floors at the Security Center Building in downtown Phoenix. Allen said the firm is negotiating to lease a minimum of 85,000 square feet, with options for as much as 140,000 square feet, in Lincor's planned building. Sources said the other major prospective tenant is a large accounting firm. Heiple said that Lincor also is Tower, C2 off duffs' worker rights into consideration in determining whether trade sanctions should be imposed on a foreign country.

Brock said earlier that the United States should not trade with countries that employ "slave labor." On the minimum wage, which labor says should go to $4.61 an hour from the present $3.35, Kirkland said Brock indicated that "the administration might be willing to entertain some adjustments." The prospects of administration support for an increase are "iffy," Kirkland said, and would be tied to Brock, C3 Fire unlikely to postpone Unit 2 start By FRANK TURCO The Arizona Republic A fire at the Palo Verde Nuclear Generating Station last week apparently caused only minor damage and will not delay the restart of Unit 2 at the power plant, a spokesman said Tuesday. Don Andrews said technicians still are planning to restart the unit early next month as initially planned before the fire. "It looks like we're right on schedule now and there won't be any delay," he added. Technicians had expressed concern earlier that the fire would delay the restarting of the unit, which has been out of service since Jan. 9 when it was shut down for federally mandated maintenance and testing.

The fire, which occurred Feb. 8 in a building that houses one of two dlesel-powered backup generators' at Unit 2, has been traced to a faulty fuel line, according to Andrews. He said the line snapped at a connector, causing fuel to spill onto the generator, which was hot because it was being test-run at the time. Andrews reported that the damage was confined to the fuel lines and two cylinder heads, all of which are being replaced. No dollar estimate of the damage has been made.

Fuel lines in the other generator buildings at the triple-reactor power facility west of Phoenix are being examined, and those that show signs of a potential problem are being replaced. "It looks like we'll be replacing be acquired First Nationwide, a subsidiary of Ford Motor has assets of $15.2 billion and is the country's seventh-largest savings and loan. It operates savings banks or savings and loans in California, New York, Florida, Hawaii, Ohio, Missouri and Kentucky. It has U.S.- or state-approved expansion rights in Pennsylvania, Illinois, Michigan, New Jersey, Virginia and Maryland. By JOE COLE The Arizona Republic Phoenix and its economic-development arm sent a "Valentine's Day message" to the city's employers Tuesday with the declaration of this week as Business Appreciation Week.

Mayor Terry Goddard said the salute, the first of his administration, is an effort to improve the dialogue between the city and business. The promotion, "You're the Key to Our City," will feature visits to businesses by City Council members, mailing of certificates of appreciation to the city's "largest 1,200 employers" and a reception George discusses work with Councilman Paul Johnson (center) and Mike Nichols of the city's Economic Development Department while Edgar Parrish works at computer. Overseas markets ripe, Brock says By DON HARRIS The Arizona Republic BAL HARBOUR, Fla. Labor Secretary William Brock, urged U.S. businessmen Tuesday to "get off their duffs" in an effort to sell products in foreign markets.

Brock told the 35-member AFLCIO executive council that the Reagan administration might consider raising the minimum wage, but with a lower rate for workers under 21. Thursday night honoring more than 100 companies that either expanded in or moved to Phoenix in 1986, officials said. The visits, Goddard said, represent "the first time" some of the businesses have heard from city government in a non-regulatory context. The campaign was organized through the Phoenix Economic Growth a private, not-for-profit corporation charged with promoting growth and funded in part by the city. Goddard and Ioanna Morfessis, the Growth executive director, both stressed that the cam- Business, C3 astounded to learn Borneman had lived with a heart defect.

"If I had a heart defect, I wouldn't be in this business," he said. "It gives people heart problems anyway." Colleagues at Rauscher Pierce said the office has been overwhelmed with phone calls from other investment bankers and from school board members and school district officials from. all over the state who had dealt with Borneman. We tend to find the best to say when someone dies. The sense here is that nobody had to try at all to do that about Ross Beardsley Borneman.

Don't be surprised if the deductible amount on major medical-insurance payments rises from the typical $100 soon. Gary Petersen, consulting actuary on group benefits at the -'VP. Cole, C3 vWx "i Cole 'I Republic jr i columnist. Investment bankers mourn colleague's death at age 38 RATES AT WEEKLY TREASURY AUCTION PERCENT 5.8 5.7 TTT 24 1 8 15 22 29 5 12 2025 2 0 DEC JAN FEB SOURCE: Knlght-Ridder Firwndal Information Knight-Ridder Valley-based Capital Savings and Loan Association of Phoenix is being acquired by San Francisco-based First Nationwide Bank for $3 million. "We wanted to expand into Arizona, and this looked like a good opportunity for us to get a foothold," said Steve Johnson, a spokesman for the savings bank.

He said First Nationwide indicated Arizona has been high on its list because of its. growth potential. I 11 I 143-MONTH j3 I I I I K. I I I I I I I I I I I I I48 24 1 8 15 22 29 5 12 2026 2 0 17 DEC JAN FEB IOZ 1JZ 6.month 15 7 vtp r54 :s.2 L5.1 .5.0 .4.9 .4.8 17 1 rizona's investment-banker i community is feeling the loss of one of its best. The death at age 38 of Ross Beardsley Borneman, an assistant vice president and investment banker at Rauscher Pierce Refsnes, Phoenix, came as a shock to most in that relatively small community.

Borneman learned at age 13 or so that he had a hole in one chamber of his heart. He underwent open-heart surgery, which was rare at the time, to repair the defect and lived a moderate life jogged, didn't smoke but didn't make an issue of his condition. Few even suspected it. He went periodically to the National Institutes of Health in Bethesda, for monitoring. Doctors there told him last fall that the condition of his heart had deteriorated substantially and that he had a limited amount of time to live.

Borneman obtained a second opinion locally, which was not quite so pessimistic, and went about his life. He suffered a fatal heart attack Feb. 1, a Sunday, while playing with his children. More than 500 attended the funeral Feb. 5 at St.

Barnabas on the Desert Episcopal Church. One colleague observed that not much investment banking could have gone on in Arizona that day. A competitor said that he was Republic I i.