The Palm Beach Post from West Palm Beach, Florida • Page 29

SATURDAY, JANUARY 28, 1995 The Palm Beach Post PAGE 5B Codes for 24hour stock quotes PAGE 6B Mortgage rates PAGE 12B POSTLINES DO INE Bus Economic growth! highest in decade TTHEDE3 Actually, Hydron shareholders are getting a 212-cent dividend, the "first in the firm's 23-year history. DANIELLE HERUBIN Palm Beach Post Staff Writer BOCA RATON For 92 painful quarters, Hydron Technologies Inc. kept investors hanging on with what seemed to be empty promises while it lost almost $10 million. Then, with a new product selling on cable TV's QVC, sales suddenly jumped from almost nothing to $800,000 in one hour in April. By the end of the -year, earnings reached $3.64 million on sales of "more than $8 million.

Most small companies that have been cash poor 1984-94 The GDP measures all the goods 1 and services produced bv workers in the United States, 1994 saw the strongest growth in a decade. Percent change from previous year I 4 1994 7 6 nil Hydron Technologies 1-year performance -1 for almost a quarter of a century might have just put the money in the bank and stared at it. Not Hydron. In a fit of gratitude it immediately passed out about $500,000 to its roughly 10,000 investors. On Friday, Hydron declared its first dividend 2Vi cents per share.

"I said to the Ugh jTrfjLow S2.00 1 i '94' ob 17 '1984 '86 '88 '90 '92 Yearly at annual rate The New York Times WASHINGTON The economy accelerated to a 4.5 percent growth rate in the final three months of 1994, the government reported Friday, but ended the strongest year in a decade with clear signs that the slowdown long sought by the Federal Reserve may be at hand. In financial markets, bond prices surged, driving interest rates lower, as analysts concluded that a slowdown could mean the Federal Reserve was close to the end of a credit-tightening process it began a year ago to keep inflation in check and the business expansion from overheating. The broad stock market was steady, but blue-chip stocks fell. The Wall Street response was prompted by the Commerce Department's latest quarterly report on the nation's output of goods and services, which showed that the strong growth at the end of 1994 failed to cause inflation to budge. The report also disclosed that inventories of unsold goods climbed more than expected, suggesting that factory orders could taper off early this year as stores scaled back their demands for new supplies.

That caused a scramble among private analysts to trim their forecasts of economic growth for the first half of 1995. While most economists still expect the Fed to raise short-term interest rates at its policy meeting next week probably by half a percentage point it now appears much more likely that any increase would be either the central bank's final move for a while, or at least that any subsequent action would be minimal. "The slowdown in this economy is here," predicted James E. Annable, chief economist at the First National Bank of Chicago. "That big inventory number is the 400-pound gorilla that is jumping 1028 120 513 85 218 Source: U.S.

Dept. of Commerce all over first-quarter growth." It was not clear exactly what caused the large buildup in unsold goods, but analysts tended to inr terpret it as a tailing-off of consumer buying at the end of the year rather than as an intentional restocking of store shelves. Nothing in the report pointed to an impending recession. Still, the inventory buildup and other economic signals suggest that the overall 1994 growth rate of 4 percent could turn out to be the last big advance in the continuing expansion that began in spring 1991. Last year's inflation-adjusted gain of 4 percent was up from 3.1 percent in 1993 and was the best since a 6.2 percent burst In 1984, when the economy boomed after pulling out of a recession that ended in 1982.

all these years and they believed me, that when the day comes we when we could start to earn profits, I would immediately start sharing it them," said Harvey Tauman, Hydron's president. "If ever a company was owned by public shareholders, it's this one they've believed in us Tor all of these years." On Friday, the company also announced a joint venture between one of its subsidiaries, a subsidiary of QVC Inc. and DTR Associates called Hydromercial Partners, to create a 30-minute infomercial. Peter Castellanos, an analyst with Santa Barbara-based Cruttenden has been positive about the company's stock, saying its relationship with the electronic shopping network can give it opportunity it can't get through traditional retail Hydron makes skin care products that feature a -moisture-attracting polymer. 1994 FILE PHOTOAOREN HOSACK Harvey Tauman, president of Hydron Technologies, said Friday: 'If ever a company was owned by public shareholders, it's this one they've believed in us for all of these State treasurer moves to limit investment in risky derivatives Feltner challenges transfer of WTVX Paxson Feltner CMOs, Nelson said.

The new 10 percent cap should reduce that amount to $300 million "well within four years," Yecco said. The money managers won't be asked to sell their excess holdings immediately, but will do so market conditions become favorable, Nelson said. The managers will switch their investments to mortgage-backed securities and corporate and Treasury bonds, Yecco said. Nelson, a former Democratic congressman who took office this month, is reversing an investment policy begun by predecessor Tom Gallagher, a Republican. Gallagher began his aggressive investment practices when interest rates were falling and bond prices were climbing.

The $3 billion invested by managers during Gallagher's term incurred a 5.1 percent loss of $269 million last year, Yecco said. the commissioner wanted to make sure that what happened in Orange County, could never happen in Florida," said Janice Yecco, the treasurer's financial administrator. Orange County filed for bankruptcy last month after its investment pool lost about $1.7 billion because of high-risk investments made with $13 billion of borrowed money. Florida hasn't previously capped its investments in collateralized mortgage obligations, or CMOs, which are subject to wide price swings when interest rates change, Yecco said. The treasurer has collected $8 billion from taxes and fees, of which $5 billion is invested in short-term, liquid securities by the department's staff.

Of the $3 billion invested by money managers, about $500 million has been placed in risky Bloomberg Business News TALLAHASSEE Florida's treasurer instituted a more conservative investment policy Friday aimed at reducing the state's risky derivative holdings by 40 percent to $300 million in the next few years. Sobered by paper losses of $269 million last year, Florida Treasurer Bill Nelson issued guidelines that put a 10 percent cap on the amount of state funds that outside money managers can invest in volatile securities. The state hires 23 outside money managers to invest $3 billion, or 38 percent of its total tax and fee revenue. Nelson, who also is the insurance commissioner, also reduced to 10 percent from 25 percent the amount of state funds that money managers can borrow against to invest in other securities. "In an abundance of caution, that prohibit duopoly, ownership of more than one television station in a specific market," his attorney, Philip Schwartz, said Friday from Miami.

Schwartz said Feltner, who maintains a home on Singer Island, was not available for comment Friday. FCC officials said they will rule within the next several weeks. In his FCC challenge, filed Dec. 30, Feltner claims "Paxson will 'call the shots' and thereby control two stations in the same market. This is a transparent attempt to evade the duopoly rules." If the FCC rejects the transfer, "it is my intention to regain control of the station," Feltner wrote.

In precedent-setting cases, the FCC has allowed deals by one station to bankroll the purchase of another "as long as the licensee retains ultimate control of the station's financial, personnel and pro- By ELIOT KLEINBERG Palm Beach Post Staff Writer Broadcast entrepreneur Elvin Feltner has made good on a threat to try to block the transfer of Fort Pierce's WTVX-34, one of two stations he lost in bankruptcy coijrt last fall. Channel 34 and a Jacksonville station owned by Feltner's Krypton Broadcasting were auctioned inlankruptcy court in October for a total of more than $27 million, despite a desperate effort by Feltner to find new financing. "I never throw in the towel," Feltner said at the hearing. "The FCC is my best avenue." Channel 34 was sold to Eddie Whitehead of Hollywood, who got his financing from broadcast magnate Lowell "Bud" Paxson. Pax-son bought West Palm Beach station WPBF-25 in January 1994.

"Mr. Feltner is objecting on the basis of the new FCC rulings gramming decisions," according to FCC documents. Paxson, reached at his Clearwater office Friday, called the challenge "without merit" and predicted it would delay the transfer by only a few weeks. "This guy's just grasping at straws," Paxson said. He said the deal "is as pure as the driven snow." Paxson said he has financed two minority-run stations in Chicago as well as in Washington.

"The procedures of financing minority broadcasters through the FCC's processes are very clear," Paxson said. "There's no way for us to control it (Channel 34). It would be against the law. The license will be controlled by Whitehead Media." In Brief PALM BEACH POST STAFF AND WIRE REPORTS ihz 8 20 1 1 1 1 1 1 i 10-31 11-14 1-9 1-23 11-28 12-12 12-26 Breaks indicate market holidays. In Trading: 7.73 6.75 5.89 YIELDS: 30-Year: 1-Year: 6 Month: Auction Dates Offers open Wed.

Offers open Monday Monday 3-Month: x.xx Barnett completes acquisition JACKSONVILLE Barnett Banks Inc. said it completed the acquisition of the consumer company EquiCredit Corp. for $332 million, or $32 a share. Jacksonville-based Barnett Banks is the nation's 22nd-largest bank, with $41 billion in assets and 615 offices in Florida and Georgia. EquiCredit, also of Jacksonville, operates 89 offices in 29 states.

The company originated $602 million in loans in 1993 and had the right to service $1.5 billion in loans. Miami man suing General Nutrition MIAMI A Miami man is suing General Nutrition Corp. and one of its suppliers, accusing them of selling a nutritional supplement that caused him to suffer a stroke and become permanently disabled. The class-action lawsuit was filed Thursday in the U.S. District Court for the Southern District of Florida.

It says GNC and Ultimate Sports Nutrition developed and sold a product without adequate testing. The suit, filed by Charles Nanny, seeks compensatory a recall of the product and money for safety David Sullivan, an attorney for GNC, said he had not seen the suit and would not comment. Correction Because of a reporting error, the Post Friday incorrectly reported the first name of the former president of FiberCorp International Inc. of Defray Beach. Richard Williams resigned as acting president Dec.

15. Lockheed fined $24 million ATLANTA Lockheed Corp. was fined $24.8 million after admitting it conspired to bribe an Egyptian legislator to promote the sale of three planes. The aerospace contractor was fined by U.S. District Judge Marvin H.

Shoob twice the amount of profit it made from selling the C-130 Hercules planes to Egypt. Lockheed was accused of paying $1 million to Leila I. Takla to help sell aircraft to the Egyptian government. Finances add to USAir problems WASHINGTON The bad news continues to pile up for USAir, with a $322 million loss in the fourth quarter of 1994, a year that saw two deadly USAir crashes and continuing labor disputes. USAir blamed much of the shortfall on the accidents leading to a "dramatic dropoff' in ridership.

USAir said the drop in passengers was strongest in October and November, cutting airline revenues by an estimated $110 million. SEC action against Kidder likely NEW YORK In the first regulatory fallout from the Kidder, Peabody Co. bond-trading scandal, federal authorities are expected to recommend charges of civil securities-law violations against the brokerage, its former star trader and other ex-Kidder executives. The likely action by the Securities and Exchange Commission caps a nine-month probe into allegations that ex-trader Joseph Jett fabricated $350 million in profits at the now-defunct firm. NationsBank settles suit for $6.2 million MIAMI NationsBank Corp.

said it agreed to pay $6.2 million to settle a class-action lawsuit on behalf of 55,000 borrowers who claimed they were improperly billed for loan insurance on cars, boats and trucks. NationsBank, the nation's third-largest banking company, said it expects the settlement to be approved Feb. 16 by U.S. District Judge William Hoevcler in Miami. Charlotte, N.C.-based NationsBank admitted no wrongdoing.

Under the settlement, NationBank borrowers in Florida, North Carolina, Maryland and five other states, as well as the District of Columbia, will receive an average of $91 each, said company spokeswoman Mary Alice Rogers. Plaintiff attorneys will get $1.2 million, she said. The suit, filed in 1993, is one of at least nine class-action complaints that have been brought against lending institutions on similar allegations in recent years. The three Florida plaintiffs, who took out car and boat loans, said that NationsBank unilaterally billed them for certain kinds of collateral-protection insurance they didn't need. The suit said that when borrowers let their required coverage lapse, NationsBank went beyond the contract and obtained repossession and mechanic's lien insurance aimed at protecting the bank rather than the vehicle.

Walt Disney rose $3 to $50.25: The entertainment giant said earnings for the first fiscal quarter ending Dec. 31 were 91 cents per share, up from 68 cents a year ago. Kmart rose 63 cents to $14: The Wall Street Journal reported that Kmart executives "increasingly worry" the company could be a takeover target for rival retailer Dayton Hudson Corp. McDonald's Corp. rose $1.50 to $32.25: The Tast-food chain reported a 1 7 percent increase in fourth-quarter net income, to 43 cents a share from 36 cents a year ago, and announced an ambitious expansion plan.

Revenue rose 8 percent. Union Carbide fell $1.38 to Dow Chemical fell $1.75 to DuPont fell to $54.50: Chemical stocks were extending Thursday's losses amid concerns that prices and industry margins may soften this year..