Reno Gazette-Journal from Reno, Nevada • Page 28

Reno Gazette-Journal MB BUSINESS FRIDAY MAY 24, 1991 BUSINESS EDITOR: STEVE FALCONE, 788-6322 I Stocks May 23, 1991 Dow Jones Ind Close: 2900.04 Volume: 173.1 million -Va Va V2 -Va Va -Va i -Va Bally Manufacturing 4 Caesars World 21 Circus Circus 68 Hilton Hotels 475s Int'l Game Technology 43 Jackpot Enterprises 7'2 Promus Companies 1712 Sands Regent 14V4 United Gaming 2Va Winner: Pamela Sue Birts, a senior chief petty officer and control tower chief at the Fallon Naval Air Station, was named "Young Woman" by the Nevada Federation of Business and Professional I 3050 3000 A mf 2950 z-44-4-'2900 2850 j4j 2800 U-4 2750 Jj 2700 t-U 2650 i Institute said Thursday. The seven-day average yield on money market mutual funds in the week ended Tuesday was 5.58 percent, unchanged from the previous week. Money supply: The two broadest measures of the nation's money supply rose in the week ended May 1 3, the Federal Reserve Board reported Thursday. The Fed said the measure known as M2 rose to a seasonally adjusted $3,397.6 billion from $3,392.2 billion the previous week. An even broader measure.

M3. rose to a seasonally adjusted $4.1 78.6 billion from S4, 1 73.5 billion. Bonds mixed: strong auto sales report, an upbeat auction of five-year notes and technical trading before the holiday weekend left the government bond market mixed on Thursday. The Treasury's bellwether 30-vear bond was down point, or $2.50 per 1 .000 in face amount, at closing. Its yield was 8.29 percent Birts IGT Offering: Reno-based International Game Technology announced that its registration statement relating to the offering 1 00 million principal amount of 5': percent convertible subordinated notes due June 1, 2001.

priced at 80.055 percent, was declared effective by the Securities and Exchange Commission. Interest on the Notes is payable June 1 and Dec. 1 commencing Dec. 1. Agreement: Games of Nevada, the Las Vegas-based manufacturer of electronic gaming devices, has entered into an agreement with Konami Inc.

of Japan to market its Lucky NumbersSIottery machine in Japan and the Far East. Money funds: Assets of the nation's 553 money market mutual funds rose S4. 1 billion in the latest week, the Investment Company FMTWT Apr. 26th Stocks, pages 8-9B 1 116 3'2 -Vs 45 5a 778 4 V4 638 -Va 4158 -Va 2Va -Va 1134 -Va 20 1 Alta Gold Amserv Inc. R.R.

Donnelley Echo Bay Mines Elect. Data Tech. FirstMissGold FMC Gold Gannett Sierra Pacific Southwest Gas Valley Capital Corp. Women at its recent convention in Boulder City. She's a member of the Fallon BPW'and will be first vice president this year.

Moving: Dionicio (Don) Flores. assistant to the president of Gannett's West Regional Newspaper Group, headquartered in Reno, has been named president and publisher of the Iowa Citv Press-Citizen. Benchmark crude $21.02 $0.19 $355.20 Silver (N.Y.) $4,039 $.007 THE ECONOMY Durable Goods Recession fadin Bush says New orders Billions ol dollars, seasonally adjusted 132 128 Improvement: Orders for durable goods rose in April and new claims for jobless benefits fell in the first full week of May. 12T Tnr TiF more pieces of the puzzle that seem to point to recovery, or at least to a bottoming out." said Michael I'ener. economist for the Bank of in San Francisco.

"We won't know for sure until several months from now when exactly we hit bottom." I'enzer said. "But it now seems sale to say that it will occur in this quarter, and that we will learn the recession bottomed in April. May or June." Allen Sinai, economist for The Boston a New York investment firm agreed. "There is no question that the pace of layoffs has lessened substantially, hut as vet there is very little evidence of new hiriim." Sinai said. claims for unemployment insurance fell slightly nationwide during the week ending May 1 1.

The drop of 5.000 claims was small, but it marked the third week in a row that this indicator has improved. The new statistics came as a survey of 5H business economists showed that 71 percent of those surveyed believe that the recession will end in the April-June quarter and that 1 I percent believe that the recov ery already has begun. The survey by the National Association of Business Economists tended to support Bush's optimism. Still, about 93 percent of those surveyed forecast that the recovery will he relatively anemic. "What we have todav are some 108 0 By Oswald Johnston I OS I I 11X11 WASHINGTON President Bush, bolstered by fresh economic statistics, said Thursday he believed that the recession may be Hearing an end.

and asserted that "there's an awful lot of economic forecasters that would agree with what I just said." Bush told a retailers' group that he believed the downturn was "bottoming out" and that the economy would begin to recover soon. But he stopped short of predicting that any upturn would be vigorous. The Department of Commerce reported Thursday that after four months of steady declines, factory orders for durable goods rose 2.9 percent in April, suggesting that the economy may have hit bottom, as Bush said, during the current quarter. Separately, the Department of Labor also reported that new A SO 1 1990 1SS1 Apr. '90 Mar.

'91 Apr. '91 125.6 112.2 1 115.5 Souttx: S. DapL ol Commwo AIRLINES i i i yf- ft i 't itbit i T. lis! I r- Clerks busy, but are seats filling? A'" BRIEFING Dow drifts down on mixed reports NEW YORK The stock market pulled back a bit Thursday, continuing its recent meandering course as traders looked for signs of life in the economy. The Dow Jones average of 30 industrials dropped 10.29 to 2.900.04.

Declining issues slightly outnumbered advances in nationwide trading of New York Stock Exchange-listed stocks, with 737 up. 790 down and 533 unchanged. Many worried bulls in the financial world have been hoping for signs of economic improvement to support the "enthusiasm that carried the stock market sharply higher in the early stages of the year. L.Vs Golden Nugget to be Mirage Resorts LAS VEGAS Shareholders agreed Thursday to transform Golden Nugget Inc. into Mirage Resorts a name change designed to reflect the prominence of the company's flagship I.

as Vegas hotel-casino. The new company name will go under the symbol MIR when it debuts next month on the New York Stock Exchange, company chairman Steve Wynn told shareholders at Golden Nugget's annual meeting. "We all thought it was appropriate that the parent company carry the name of its largest and most famous asset." Wynn said. "It's been a little awkward to explain to everyone that Golden Nugget is the company that operates the Mirage and is also a dow ntow hotel." Cash reporting rules strengthened by IRS WASHINGTON I he Internal Revenue Service announced Thursday tentative regulations designed to prevent money launderers and tax cheats from juggling financial paper to avoid the reporting requirement for cash purchases totaling SI 0.000 or more. Underthenew rules, businesses would hav to report any mix of cash, traveler's checks, cashier's checks, bank drafts and the like if the combination exceeds the 1 0.000 1 RS disclosure trigger.

Drug tratiickers and other tax cheats are thought to use the technique to launder illicit money through the purchase of luxury items such as fancy cars, antiques, furs, jewelry, and artwork. Businesses currently have to alert the government by filing what is called a Form 8300 when they receive cash in amounts of SI 0.000 or more in a single transaction or two or more related transactions. IBM changes voluntary job-reduction program NEW YORK International Business Machines Corp. has modified its voluntary job-reduction program to allow its managers to encourage less-qualified employees to leav while try ing to keep more capable workers. The computer giant announced in March it hopes to eliminate 14.CK.iO employees this year through oluntary means to cut costs.

That would bring its worldwide work force to under 360.000. Underthenew program, which IBM announced internally Wednesday, managers ill be able to ask U.S. employees from any job classification whether they would consider leav ing. IBM spokesman John Boudreau said Thursday. Wire service reports "'r I Marilyn Newton Ga, FINAL TESTS: Koji Kawasoe, machinery section engineer for Kyo- shown at left.

The machine is produced for his company at Sierra Ma-kuto Kaihatsu Co. of Japan checks out the work done by the machine chinery in Sparks. Sierra Machinery Inc. to supply Japanese industry By Evan Ramstad SMX I VI I I) DALLAS Cut-rate summer fares are keeping reservations clerks busier this week, but travel agents don't vet know if the bargain rates will help the airline industry emerge from its recession-induced woes. Special deals offering as much as 20 percent off adult fares and half off children's fares are too restrictive to make up for the revenues lost to the Gulf War and recession, some agents say "'They've got to get a bigger load on those airplanes in the summertime to make up for the smaller loads in other parts of this year." said Bill Boyd, president of Sunbelt Motivation and Travel in Irving.

Texas. "This is make or break time for some of the airlines." The airlines lost nearly S4 billion last year and continued to hemorrhage in the first quarter due to the economy and the war that ended in early March. Initiated by Northwest Airlines and copied by other carriers, the current fare promotion is the second this spring aimed at luring more passengers, raising revenues and returning the airlines to profitability The reduced fares are directed toward families who are trying to decide between Hying and driving, or even taking a vacation at all. Fare restrictions require a Saturday night stay, and tickets must be bought by the end of the month. "The people who are planning their vacations 30 days in advance can do better with regular fares." said Lisa Cole of Horizon Travel in Denver.

"It's more the spur-of-the-moment people that are beinc helped by this." Travel agents said many seats are available for the re'-duced ticket prices. However. American Airlines spokesman Tim Smith said calls Wednesday to American's reservations centers increased more than 70 percent above a typical weekday for this time of the year, continuing a trend from Tuesday, the first full day of the promotion chine before shipping. Corbin said. Kawasoe was accompanied by Koji Yanai of Mitsubishi Shoji Machine Tool Sales, who served as translator.

Mitsubishi was the company that first noted that Sierra Machinery's products would make good export items to Japan. Corbin said. "They felt our company was qualified and had a high-tech product and that there was a need for this product in Japan. "We now have six machines operating in Japan." she said, "and we're building another for Shinn Meiwa Industrv Co. That ma By Susan Skorupa 111: joi rn i Japanese industrialists were in Sparks Thursday for the final testing of a piece of Nevada-made machinery that soon will go to work in Japan.

The machine, which shaves and polishes the interiors of metal pipes or cy linders used on hy draulic equipment, is one of about a half-dozen sold by Sierra Machinery Inc. to Japanese companies in the past three years. "We're very happy about that." said krcstine Corhin. company chine will be ready in about two months." Sierra Machinery also has exported machinery to Korea. Brazil, the United Kingdom and Germany.

Corbin said the company usually has several machines under construction at one time, but it takes two to three months to complete each one. Once the machine arrives in Japan, within about one month. Sierra employee Kenny Sims will visit the Kyokuto plant to assist with installation and training. Corbin said-. president.

"We're glad to be exporting so much machinery." Kyokuto Kaihatsu Co. purchased the latest machine produced at Sierra Machinery's plant at 1651 GlendaleAve. Corbinwas received by Inejiro Yoncda. the company president, when she visited their plant in Japan. The Japanese company has seven plants that manufacture special purpose vehicles such as garbage trucks, backhoes.

dump trucks and concrete mixer trucks. Company engineer Koji Kawa-soe visited the plant for the final testing and acceptance of the ma More acquisitions in BankAmerica's future, shareholders told that BankAmerica's strategy of acquisition will help the company maintain stability. The bank last year bought a string of insolvent thrifts on payment premiums of less than the corporat ion's retained earnings over the last two quarters. BankAmerica. however, lost its largest expansion bid.

an offer to buy the failed Bank of New En-eland. of 1.1 percent from 1989 earnings of SI. 103 billion. The earnings were attributed to fundamental operating strengths. Rosenberg also reported a rate of return on assets above 1 percent and noted that the ratio of common stockholders" equity to total assets of 5.4 percent was among the highest reported by the 10 largest U.S.

banking companies. Despite a weakening economy. Rosenbers assured shareholders SN FRANCISCO CAP) With room to breathe following the second-straight year of billion-dollar earnings, shareholders were told Thursday that BankAmerica Corp. will continue to strengthen its position through acquisitions. The nation's second-largest banking holding company reached record earnings for the third consecutive year and hit the billion-dollar mark in earnings for the second vear straiiiht.

"This is not just a first for Bank-America but a first for the industry as well." chairman and chief executive officer Richard M. Rosenberg said at the annual shareholders meeting. "No other U.S. banking company has ever reported back-to-back annual earnings of one billion dollars." BankAmerica. parent of Bank of America, reported earnings for 1 990 of 1 1 1 5 billion, an increase.