Asbury Park Press from Asbury Park, New Jersey • Page 9

A10 Asbury Park Press Saturday, April 27, 1996 I. 0 L. ni 0.59 Close 653.46.'. 2.72 Close 1,186.89 1.08 Close 5,56799 Stock prices higher NEW YORK: Technology and smaller-company issues rose modestly yesterday but still outperformed blue-chip stocks as the surging Nasdaq market finished the week more than 4 percent higher. The Dow Jones industrial average rose 1.08 to 5,567.99, ending the week with a gain of 32.51.

The Nasdaq composite index which rose 2.72 to 1,186.89 and gained 48.19 on the A Tl A ii I ymmm ii 2 Jf A group of investors led by Alfred F. Fasola Jr. (above) and William F. Taggart took over Herman's in 1993. Herman 's seeks Chapter 11 protection again week has surged more than 8 percent in about two weeks as a series of encouraging earnings reports in the technology sector dis pelled fears of a computer industry slowdown.

Standard Poor's 500-stock index rose 0.59 to 653.46, a gain of 8.39 on the week. Advancing issues outnumbered decliners by about 13 to 9 on the New York Stock Ex change, where volume totaled 391.05 million shares as of 4 p.m., down from Thursday Pace. Bank lobbies merge CRANFORD: To save money and lobby more effectively, the New Jersey Savings League and the New Jersey Community and Savings Bankers voted yesterday to merge. The new organization will be in the League's present office at 411 North Avenue East here. For now, it will use the New Jersey Savings League name, but it's looking for a new one.

Originally, the organization wanted to use the name "Community Bankers of New Jersey," but found itself in a legal tangle last year with another banking organization that already uses a similar name. Last May, the Community Bankers Associ ation of New Jersey challenged the organization's use of its name in Bergen County Superior Court and won. Death threat reported PEORIA, A woman suing Mitsubishi for sexual harassment has gotten ominous telephone calls and a written death threat warning "You'll be sorry!" her attorney said yesterday. Attorney Patricia Benassi said a note reading "Die, bitch! You'll be sorry!" was placed in the locker of Terry Paz. Paz has received two threatening phone calls, including one Monday night after a pro- Mitsubishi rally in Chicago, Benassi said.

The next morning, sne round tne note in ner locker at work. Compaq top seller NEW YORK: Compaq Computer Corp. led the personal computer industry in U.S. sales during the first quarter, unseating Packard Bell Electronics according to a preliminary estimate released yesterday by International Data Corp. The research firm said U.S.

PC market growth was 14 percent in the first three months of the year, below year-ago growth levels but not indicative of the major slowdown many observers feared had seized the industry. During the first quarter, IDC estimates Compaq shipped 740,000 units, up from 530,000 a year ago. Packard Bell shipped from 620,000, up from 591,000 in the first quarter of 1995. The biggest growth was achieved by Hewlett-Packard jumping from eighth-place last year to third. IDC estimates the company shipped 401,000 units, compared to 173,000 a year ago.

Next came Apple Computer Inc. with 370,000 units, down from 472,000 a year ago. Flagstar losses down SPARTANBURG, S.C.: Flagstar Cos. Inc. SPARTANBURG, S.C.: Flagstar Cos.

Inc said yesterday its losses narrowed in the first quarter. The company lost $27.3 million, or 73 cents per share in the January-March period, compared with a loss of $31 million, or 82 cents per share, in the same period a year ago. However, the company said it lost $27 million, or 73 cents per share, from continuing operations, compared with a loss of $22 million, or 61 cents per share, a year ago. Revenues fell 12 percent to $550 million from $636 million. Strong sales by Denny's and El Polio Loco restaurants were offset by declines at Hardee's and Quincy's, which were hurt by bad weather in the Southeast.

Stocks: RUSS OE SANTISStaH Photographer emerged from Chapter 11 in September 1994, it had closed 130 stores and was down to 103. Chapter 11 status makes it easier and less expensive for a company to break leases. "They had some terrible breaks," said Bob Carr, editor of SGB's Inside Sports Business, a newsletter. The NHL hockey lockout last year and the baseball strike in 1994 and part of 1995 hurt all sports retailers, and the harsh weather this winter also hurt, Carr said. Sports retailing also is now crowded with many competitors and there are new competitors for Herman's in the Northeast, including the Sports Authority and Sneaker Stadium chains, Carr said.

In recent months, Herman's has not been able to compete with the volume of advertising for the Modell's chain, he said. "You can't turn on a radio or open a newspaper without hearing Modell's (advertising)," Carr said. "It's a shame, they (Herman's) will probably end up closing a load of stores," Carr said. store in lower Manhattan in May that it plans to keep open for three months, Gross said. The company had good results with air conditioners last summer, and they accounted for $50 million in sales last year, of which 90 percent was in the summer, Gross said.

As many other retailers have done, Tops blamed its disappointing results in the first quarter on the harsh winter snow and weather. Net sales and service revenues for the quarter were $68.7 million, compared to $91.3 million during the same period last year. Sluggish appliance sales also contributed to the decline, Gross said. William Conroy In terms of wireless communications or the use of cellular phones, the new company has a potential to reach 54 million customers, including the Carolinas to the Southwest. He said growth will come from selling packages of services under the brand name Bell Atlantic.

At an earlier news conference, Smith said, "We're going to price and package and bundle in ways that we're going to get a terrific bounce." Among the first issues that need to be addressed internally, while the company goes rf If 1- f- Listings begin on page All Hospitals viewed as not done merging By DENNIS P. CARMODY BUSINESS WRITER WEST LONG BRANCH Hospital mergers are driven by basic economics, which is why more are bound to come, according to an industry consultant speaking at a luncheon on the future of health care yesterday. "Mergers have little to do with Bill and Hillary Clinton, they have little to do with any pending legislation," said Gerald McManis, a Washington-based consultant who has worked with hospitals and other health care businesses across the nation. "They have to do with market forces, pure, and simple market forces." His topic was fitting, because the luncheon, held at the Squire's Pub here, was sponsored by Jersey Shore Medical Center. The Neptune hospital announced just last month it plans to merge with Riverview Medical Center, Red Bank, and the Medical Center of Ocean County, which has hospitals in Point Pleasant and Brick Township.

That merger came on the heels of the merger of Community Medical Dover Township, and Kimball Medical Center, Lakewood, last year. Several months later, the Community-Kimball system joined Monmouth Medical Center, Long Branch, and five other hospitals to form the St. Barnabas Health Care System, based in Livingston Township. The Federal Trade Commission approved the St. Barnabas merger Tuesday.

John K. Lloyd, president of Jersey Shore, said he hopes to complete his merger by the end of June, with federal approval coming soon after that. There were 623 hospital mergers nationwide in 1995, and McManis predicted another 800 this year. The mergers would not be made without sound economic reason, he said. The evidence proves there is, he argued.

One survey McManis cited showed 72 percent of employers looking for a health care system for their workers consider accessibility very important. Sixty-seven percent consider price very important, and 60 percent consider quality of care very important. That suggests employers are saying, "We want access and we want price, and we'll assume the quality is generally the same for all hospitals," McManis concluded. That is why managed care insurers, who keep hospital stays short and thus lower prices, have become so popular with employ-, ers, McManis said. Twenty-eight percent insured New Jerseyans were part of managed care networks in 1992; 41 percent in 1995, he said.

Managed care insurers have driven down costs, McManis said. In 1988, the average an-1 nual medical insurance cost for employers rose 18 percent, he said. By 1994, it declined 1.1 percent, he said. While preliminary num-. bers indicate costs are rising again, the rise is still far below the heights reached a few years ago, he said.

In order to keep costs down and stay attractive to managed care insurers, hospitals have to merge and share their costs, McManis said. "They eliminate overlap and duplication and gain economics of scale," he said. In the same way, hospitals are developing their own insurance systems and groups of doctors connected to the hospitals. "Free-! standing hospitals and solo practitioners will, not be viable in the McManis said. r.

Merged non-profit hospitals usually save to 7 percent of their costs, but they will have to drive costs further down to continue to compete, McManis said. over 5 years through the regulatory process at the state' and federal level, is integrating all of the company's computer services under one urn-! brella and merging administrative positions:" The merger is the second-largest in U.S.' history behind the $25 billion purchase of RJR Nabisco by the takeover firm Kohlberg Kravis Roberts Co. in 1 989. The combined company will be headquartered in New York and employ 133,000 workers. It is expected to have combined revenue of $27.8 billion, based on 1995 figures.

It will, however, be somewhat smaller than the separate companies, li By WILLIAM CONROY BUSINESS WRITER CARTERET Herman's Sporting Goods Inc. filed for Chapter 11 bankruptcy protection from its creditors yes-' terday, the second time in three years the chain has taken such action. The last time the company sought shelter, in March 1993, it was part of a plan by new owners to escape a lot of store leases and pare the company down to what the new owners saw as Herman's core market, the Northeast. The company which emerged from that Chapter 11 reorganization in September 1994 did not way why in its prepared statement yesterday it was filing for protection again, and a company spokesman had no comment. Herman's filed a voluntary petition under Chapter 11 of the Federal Bankruptcy Code in U.S.

Bankruptcy Court in Trenton, listing liabilities of $160.5 million and assets of $127.8 million. The statement said all of Herman's 117 stores will remain open for business, but The sporting goods company, which emerged from Chapter 11 in September 1994, did not say why: it was seeking shelter for the second time. it said they will be doing "aggressive merchandise promotions and possibly conducting 'going out of business' sales." Herman's has 22 stores in New Jersey, including ones in Dover Township, the Freehold Raceway Mall in Freehold Township, Monmouth Mall in Eatontown, Hazlet Township, East Brunswick Township, Edison Township, Sayreville, Wood-bridge Township and South Plainfield. A group of investors led by Alfred F. Fasola Jr.

and William F. Taggart took over Herman's in March 1993 and took the chain into Chapter 11 three days after acquiring it. Fasola, a turnaround specialist, became chief executive officer, a position he continues to hold. By the time the chain inet sales, which will begin in the store sometime in May. If the experiment works, Tops will add such Kemper kitchen cabinets in its other seven stores, Gross said.

In addition to Edison, the company has stores in Lakewood, Secaucus, East Hanover Township and Union and three stores in New York. The company sees kitchen cabinets as a complement to its appliance departments, Gross said, one that should help boost their sales. To take more advantage of warm weather demand, Tops also plans to open a room air conditioner outlet TODS ApPIlCC QtV SCtS diailS M. JL STAFF REPORT EDISON TOWNSHIP Tops Appliance City which had a loss in the first quarter of $3.46 million, will try some new strategies in May to improve its results. The loss of $3.46 million, or 48 cents per share, for the quarter ended March 26 compared to a loss of $2.05 million, or 28 cents per share, for the same quarter last year.

Tops has made a deal with the Kemper Di vision of Frigidaire Corp. to lease space in its Edison Township store where Kemper em ployees will sell kitchen cabinets, said Rob Gross, vice chairman and chief executive offi cer. Tops receives a percentage of the cab Bell Atlantic THE ASSOCIATED PRESS WILMINGTON, Del. The new Bell Atlantic expects long-term revenue growth of at least 10 percent over the next five years, Chairman Raymond W. Smith said yesterday.

"We are not just sustaining our record growth. We are accelerating it," he said during the Baby Bell's annual shareholders' meeting. The meeting followed Monday's announcement that Bell Atlantic and Nynex have agreed to a $23 billion merger, linking a net predicts at least 10 growth Z31 NEW YORK Money rates for yesterday as reported by Dow Jones Telerate: Telerate interest rate index 5.290 Prime Rate 8.25 Discount Rate 5.00 FEDERAL FUNDS MARKET RATE High Low Last 5.25 5.1875 5.25 T-BILL RATES 3-month as of April 22 4.97 6-month as of April 22 5.02 T-BOND RATES 30-year 6.78 MERRILL LYNCH READY ASSETS 30-day average yield A .78 MiinaiMMil mmmmmmimmmmnrrainfjm work connecting 37 million phone lines from Maine to Virginia and creating the nation's second-largest phone company behind Corp. "This is the week a new Bell Atlantic was born," Smith said. "It will be a leading player in the global industry.

It has tremendous growth potential." Smith cited the new company's location on the East Coast, which he said covers about one-fourth of the nation's domestic telecommunications market and where about 35 percent of all U-S. internationarcalls originate..