Arizona Republic from Phoenix, Arizona • Page 50

THE ARIZONA REPUBLIC HEALTH CARE IN MEXICO It's undergoing dramatic change that offers many business opportunities, a conference in Phoenix is told. E6. COMICS Page 7. if THURSDAY MAY 5, 1994 Editor, Don Nicoson 271-8142 It It 3 Phelps Bodge expamdin RETAIL SALES BY CATEGORY Percentage change in Arizona retail sales for the first quarter of 1-994, compared with the same period of 1993. New mine at Safford part of 50 growth goal Category chg.

DOW JONES INDUSTRIALS Stocks slip Stocks lost ground Wednesday, driven lower by increasing concern over corporate profits and continuing worries about rising interest rates. The Dow Jones industrial average fell 16.66, to 3,697.75. Story and By Guy Webster The Arizona Republic Phelps Dodge Corp. plans to open a new mine near Safford as part of a 50 percent expansion of- the Phoenix company's total copper production in the next few years, Chairman Douglas C. Yearley told shareholders Wednesday.

The open-pit mine would operate with about 600 employees, said J. Steven Whisler, president of Phelps Dodge's mining subsidiary. Construction could begin in less than five years, contingent on obtaining environmental permits, Whisler said. Other sources for increasing Phelps Dodge's total copper output to 1.65 billion pounds, from 1.1 billion pounds in 1993, will be an expansion of the company's largest mine, at Morenci, and the start of production this year at a mine in Chile, Yearley said. Phelps Dodge had planned in the past to mine the Dos Pobres ore deposit near Safford, but recent exploration increased the economic appeal of the project.

"We're ready to go as soon as we can get the permitting," Yearley said. Test drilling has found that reachable See PHELPS DODGE, page E6 Building materials 1 6.4 General merchandise 5.7 Food stores 1.6: Automotive dealers 13.6 Gasoline stations 6.4 Apparel, accessories 3.3 Furniture 9.1 Restaurants, bars 8.9 Drugstores 5.0 Miscellaneous 4.9 Total retail trade 7.6 Source: First Interstate Bank of Arizona and University of Arizona Douglas C. Yearley Heading for a new home March i fantastic; for state Building materials, cars set sales marks -tiM chart, E3 Auto sales rise The Big Three automakers Wednesday reported a combined April sales gain of about 3.5 percent as compared with the same period in 1993, despite a decrease in overall sales at General Motors. Chrysler Corp. said the month was its best April ever, with overall sales up 10 percent from the same period of 1993.

Ford Motor Co. vehicle sales rose 5.8 percent, but GM reported a decrease of 0.9 percent. GM said its car sales fell 4.3 percent for the month and blamed the decline in part on shortages of some high-demand models, such as the Chevrolet Cavalier and Camaro, and Pontiac Firebird and Sunbird. Phone-company merger offer Long-distance phone company LDDS Communications Inc. has offered $2 billion to buy rival Williams Telecommunications Group, saying it wants WilTel's technology and base of large private customers.

LDDS, based in Jackson, is the nation's fourth-largest long-distance phone company, serving mostly small- to medium-size customers nationwide. WilTel, based in Tulsa, caters mostly to large business clients. LDDS had more than $1 billion in revenues last year, while WilTel had just under that amount. WilTel officials said the offer would be considered, but they are "comfortable" keeping ownership. JjJ w-m Lv i mm wh II I li 2 'fUJ-lSPr 1,1, 1 (7 1 1 inn mull V-Vr- HIV "i By Phyllis Gillespie The Arizona Republic Arizona's retail-sales statistics'Jfor March are one superlative after another.

It was the first month eveC in which auto sales exceeded $600 million, i Building-materials sales were up a record 15.7 percent. Restaurants and taverns set a record by taking in more than $300 million in one month. The strength of the statistics 3ias prompted one of their compilers, economist Brian Cary of First Interstate Bank of Arizona, 2 to consider heightening his alreadyp-timistic 1994 forecast of a 6.5 percent increase in sales over previous year. "We're already a full percentage point ahead of my prediction for 1994," Cary said. "For the first quarter of 1994, we are ahead of last year's sales by 7.6 percent." Monthly retail-sales estimates Tor Arizona are compiled by the bank and the University of Arizona.

The sale of such durable goods' as automobiles, building materials and furniture surged last year, and Cary said he expected non-durable goods such as apparel and restaurant food to move ahead this year and steal strength from durable goods. Instead, both major categories are getting stronger. "Sales at automotive dealers jumped 14 percent in March, shattering the previous record set last March," Cary said. "Car and truck sales exceeded the $600 million mark in one month for the first time, and they did so by a wide margin, topping out at $653.5 million." 2 Restaurant and bar sales were up 8.9 percent, and service-station sales were up 6.4 percent for March, evidence the state had an excellent winter-visitor season, he said. Time Warner cuts spending Time Warner Cable, the nation's second-largest cable-television company, blamed increased federal regulation for a decision to freeze hiring and reduce 1994 capital spending by $100 million.

The measures announced Wednesday are part of a sweeping cost-cutting program, forced in reaction to stiff new government-imposed rate limits on cable-TV service, the Stamford, Conn. -based company said. In February, the Federal Communications Commission ordered cable-TV operators to roll back rates by 7 percent, on top of a 10 percent rollback that went into effect in September 1993. 2 medical labs to merge Two medical testing labs are merging to create a company with nearly $1 billion in annual sales. National Heath Laboratories Inc.

of La Jolla, Calif, said Wednesday it is acquiring Allied Clinical Laboratories Inc. of Nashville, for roughly $193.2 million. Under the agreement, a subsidiary of National would offer $23 cash per share for Paul F. GeroThe Arizona Republic Courtesy clerk Jeff Li gathers the carts at the Smitty's Super Valu store across the street to The Colonnade shopping center late this year or in in the Town Country Shopping Center at 20th Street and Highland early 1995. The new building will be 65,000 square feet, considerably Avenue.

The store, one of the chain's oldest Valley locations, will move larger than the current 43,500 square feet 110 Parent firm selling Channe all Allied common stock. Allied has approximately 8.4 million shares outstand ing. The deal is the latest in a bevy of stations in major markets around the country. Great American would receive $350 million for the four stations, plus a warrant to be able to buy 5 million shares of New World Communications stock at $15 per share for up to five years after the deal's close. Other stations in the sale are WBRC-TV in Birmingham, WGHP-TV in High Point, N.C.; and WDAF-TV in Kansas City, Mo.

See PARENT, pagcE3 Great American said it would use the funds to add to its 15-station radio holdings and to reduce debt. The company, which emerged at the beginning of the year from Chapter 11 bankruptcy protection, would be left with two television stations. The acquisitions, if approved, would strengthen purchaser New World Communications Group position as a broadcasting chain and producer of television programming offered to By William H. Carlile The Arizona Republic CBS affiliate KSAZ-TV (Channel 10) and three other TV holdings of its Cincinnati-based parent company are being sold to a group headed by Revlon cosmetics Chairman Ronald 0. Perelman.

The deal would raise cash for Great American Communications which owns Channel 10 through a subsidiary. health-care mergers announced in the past week as companies seek ways to boost their market share and cut costs. At a glance General Dynamics Corp. told shareholders Wednesday that it is considering a number of options as part of an on-going restructuring program, including buying or selling businesses or merging with another company. Mercedes-Benz AG said it will build a new sport utility vehicle at a plant being built in Tuscaloosa, Ala.

Advocate for small business appointed Compiled by Robert Ogle from reports by The Associated Press and Bloomberg Business News. Dean, who is to report to Symington, will continue to oversee the Arizona Business Connection after a manager is found to handle day-to-day operations. The advocate position was created in this year's legislative session. All too often, Symington said, "small-business owners and operators feel that no one is really looking out for their interests." "It's my intention to have the small-business advocate represent these entrepreneurs at the state level on regulatory issues," he said. Symington appointed a task force last August to explore the needs of small businesses and define an advocate's role.

Town-hall-style meetings were held in Phoenix, Tucson and Flagstaff. Dean was See SMAU-BUS1NESS, page E8 ber, unpaid executive council to oversee the advocate's functions. Symington called Dean "perfectly suited to the task." For four years, Dean has overseen the state Commerce Department's one-stop office for start-up firms. Last year, the office fielded 21,000 calls about starting a business, Dean said, and more than 30,000 calls are expected this year. By William H.

Carlile The Arizona Republic Gov. Fife Symington on Wednesday appointed Joe Dean to be the first small-business advocate in state government. Dean currently serves as director of the Arizona Business Connection in the state Department of Commerce. The governor also named a 15-mem- Joe Dean As small-business advocate, he will report to Gov." Fife Symington. COMING UP FRIDAY Southwest Airlines is no longer part of two major computer-reservation systems.

How will that affect the airline's customers and rivals? 62 acres acquired for 'power center' in Scottsdale BUSINESS DATABANK Wednesday1! prices in New York trading at of 4 p.m EDT ONE U.S. DOLLAR EQUALS: C3 Gtrmin ma rlii 1.6533 I'pfrom 1.6370. Jipanast yin 101.85 Up from 101.00. Canadian dollar 1.3875 l'p from IJ87J. fi With plans to develop a "power center" retail plaza, Opus Southwest Corp.

of Phoenix has acquired 62 acres at the southeastern corner of Pima Road and Shea Boulevard in Scottsdale. Collin Equities a subsidiary of Wells Fargo Real Estate Group of Los Angeles, was the seller in the $16 million cash transaction. That deal also included the sale of an existing building leased to Smith's Food A Drug. Tom Roberts, president of Opus, said the company expects to complete construction of the $50 million project in the first quarter of 1995. The project, to be called Scottsdale Fiesta, has commitments from Kmart, Office Max and Advisors of Purchase, N.

paid $4,651 million for the 310-unit Pebble Creek apartments at 1717, W. Glcndale Ave. The seller in the cash transaction was the federal Resolution Trust Corp. as conservator of Franklin Federal Savings Association of Ottawa, Kan. A group of Phoenix-area investors paid just over $2 million for the 187-unit Sans Souci apartments at 3030 N.

35th Ave. Maricopa County records show-that the buyers are Roy Shlgemurji, P. Avignone, and Eddie and Lois Klugman. Bok Song and Sun Song of IJ Torrance, were the sellers, jj Tarry McDonnell Is a ral-sttt reporter for 77j Arizona Republic. His column on commercial properties appears on Thursday In the Builnels section and his column on residenttnl COLD $376.60 SILVER $5,175 a troy ounce, park at 2501 W.

Wickenburg Way in Wickenburg. The Viola F. Wellik Family Trust of Wickenburg was the seller. Albert Stevens and Geff Gunsalus of SI A Investments of Scottsdale, and Mark Patterson and John Harrison of Mark Patterson Si Associates of Phoenix, brokered the sale. Apartment projects bought Three Valley apartment properties have been sold in sales totaling $13.6 million.

A partnership formed by Vecwest Holdings Inc. of Vancouver, British Columbia, paid $6,925 million for the 164-unit Tatum Place apartments at 16801 N. 49th St. The seller in the cash deal was a limited partnership formed by Lincoln Property Co. of Phoenix.

A limited partnership represented by Apollo Real Estate formed by Denver investor Bob Spade, paid $6.6 million for a retail center along the eastern side of Hayden Road at McCormick Ranch Parkway in Scottsdale. Northwestern Mutual Life Insurance Co. of Milwaukee was the seller. The transaction was negotiated by Dennis Desmond, Scott Rehorn and Llx Paquette of CBS Investment Realty of Phoenix and Patrick Sheehan of Daum Commercial Brokerage in Phoenix. ABCO, Walgreen'i and McDonald's are tenants in the plaza, reported to be 95 percent leased.

Mobile-home park sold A partnership formed by Pacific Mutual IJfe Insurance Co. and Gayton Williams A Sherwood, both of Newport Beach, paid $3,725 million cash to purchase the 212-space West Park mobile-home I a troy ounce, l'p from $.173 60. Down from $5,237. OIL $16.83 TERRY McDOXN'ELL The Arizona Republic the supermarket occupies. Bill Gosnell of Phoenix-based Lee A.

Associates Arizona and Marty DcRito of DcRito Partners in Phoenix negotiated the sale. DcRito also has the marketing assignment for the center. Shopping plaza sold Pasco Village Partners Limited, a barrel of light, iwed crude I I' ll June delivery. Down from $16 89. CompUSA, according to the developer.

FEDERAL FUNDS MKT. RATE: 3.75 Opus has assumed Smith lease properties appears every other 3 Th Artec pputttc Saturday in AZ Home. on the building 3.