Reno Gazette-Journal from Reno, Nevada • Page 14

Reno Gazette-Journal TUESDAY L) ryLky STEVE FALCONE, BUSINESS EDITOR: MAY 25, 1993 JJLJl. 1 i if Ps FS PHONE, 788-6322; FAX, 788-6458 May 24, 1993 DOW(Industrials) NYSE GM gets new treasurer; she foresees watershed year DETROIT Heidi Kunz will become General Motors first woman treasurer next week, a role she says she's taking on as the struggling automaker 0r SiP 500 AMEX NASDAQ changes its strategy: It's now planning its financial future instead of trying to just survive. "I think 1 993 is a watershed year for General Motors in a lot of respects, in as much as our financial condition has stahili7ed Treasury bills: Interest rates on short-term Treasury securities rose in Monday's auction to the highest level in four months. The Treasury Department sold 1 2 billion in three-month bills at an average discount rate of 3.06 percent. Another 1 2 billion was sold in six-month bills at an average discount rate of 3.

1 9 percent. The new discount rates understate the actual return to investors 3.12 percent for three-month bills, with a 10,000 bill selling for $9,922.70, and 3.29 percent for a six-month bill selling for $9,837.80. In a separate report, the Federal Reserve said that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable rate mortgages, rose to 3.4 percent last week. Bonds: A report that the Federal Reserve stands ready to raise interest rates to check inflation provoked a sharply mixed reaction in the Treasury market Monday. The price of the benchmark 30-year Treasury bond rose 'h point, or about $5.00 per 1 ,000 in face amount.

Its yield edged just below 7.00 percent. Alpine Meadows Amfed Financial 19V4 Amservlnc. 1V4 BankAmerica 44 Clorox 49 Coeurd'Alene 19Vs Comstock Bank 7Vi R.R. Donnelley 29V4 -Va Echo Bay 11 First Interstate 57 1 PirstMiss Gold 6 First Western Fin. 5 FMC Gold 6'4 Va Gannett 51 7a General Motors 39 Granite Const.

I6V2 V4 Harding 8 -Va Nevada Power 24 Va Newmont 50 -1 Pacific Telesis 46 -Va J.C. Penney 49Vb 1V4 Reno Air 14 Rotech 13V4 Santa Fe Pacific 17 Va Sierra Pacific 21 -Va Sierra Tahoe Southwest Gas 18Va V4 US Bancorp 24 Dan, Dave return: Dan and Dave are back. Decathletes Dan O'Brien and Dave Johnson, whose Olympic travails last year led to a memorable, if hastily rewritten, ad campaign for Reebok, will appear in ads for Ryder truck rental beginning next week. The pair's double downfall on the way to gold led some to speculate they were a marketing failure for Reebok. Johnson won the bronze; O'Brien didn't make it past trials.

But Ryder's research shows that 97 percent of consumers remembered Dan and Dave from last year's Reebok ads when shown their picture. Ryder says the pair is particularly likely to appeal to its target audience: 25-34-year-olds, mostly men, with slightly above-average income and education levels. The opening shots of the Ryder ad mimic the colorful labels Reebok used to introduce them. NYSE Diary Advances: 950 Dcdines: 992 Unchanged: 572 IV' and I believe it's turning," mXlir-'r she said in a telephone Kunz interview from New York after her appointment was announced Monday. "I think the treasurer's function is going to change because of it." GM's first-quarter profit of $5 1 3 million put it on target to break even in its critical North American business before interest, taxes and health care charges this year.

New highs 60 New lows 13 Total issues: 2,514 Composite volume: 244,359,550 1992 avg. comp. 250,157,090 TOURISM Tl outhwest was Fhoenix went Growing activity: Company vice president says there's a lot of opportunity ahead for the Reno-Sparks market. falling airplane prices. "We're in thmiddle," he said.

"We're in a position to grow domestically and provide more service." Southwest's growth, Ricks said, will concentrate on providing more flights in the cities it already serves. "We tend to open only two new cities a year," he said, "and we try to serve them well. Reno service is growing steadily, and we expect that to continue." who was in Reno on Monday. "The non-stop to Phoenix is doing very well. There's a lot of opportunity down the road in Reno." Southwest serves Reno-Cannon International Airport with 14 flights a day to Oakland, Las Vegas and Phoenix.

The Dallas-based airline, one of the strongest in the nation, according to industry experts, plans to continue its steady, controlled growth, Ricks said. "You won't see us go out and buy a lot of new planes just be cause things are going well," he said. "We won't do more than we can pay for, absorb and handle." That philosophy is beneficial for Reno-Sparks and Southwest's other markets, Ricks said, because it means the airline will build business steadily, giving passengers low fares and a good selection of flights. In the coming years, Ricks said, the industry will see the largest airlines concentrating more on global markets and new carriers entering the market to take advantage of ny official says the route is evidence of growing airline activity in the Truckee Meadows. "Something is going on here," said Ron Ricks, Southwest governmental affairs vice president, By Susan Skorupa GAZETTE-JOURNAL Southwest Airlines has added a new non-stop flight connecting Reno with Phoenix, and a compa THE ECONOMY Frontier fact-finding ahead BRIEFING Groups join forces on high-tech TV WASHINGTON Wrangling among industry groups over the best technology for high-definition television ended Monday with an agreement by competing companies to work together.

Now, they'll build a system using the best of each technology to be tested as soon as possible and presented sometime next year to the Federal Communications Commission, said Richard Wiley, chairman of the FCC's advisory committee on advanced television. Wiley said their merger will lead to a new digital broadcast standard that will "emulate the motion picture experience" and lead the world in television technology. VW-GMtiffheatsup; Lopez files libel suit The shouting match between Volkswagen AG and General Motors Corp. grew louder Monday, with J. Ignacio Lopez de Arriortua claiming his former employers at GM want to destroy his reputation to cover their own troubles.

"Here's the problem: GM-Europe's market share is dropping, and ours is increasing," said Lopez, who resigned abruptly as GM's worldwide purchasing czar March 1 5 to take a similar job at VW. Lopez reportedly filed a libel lawsuit Monday against GM in Braunschweig, Germany. On Friday GM had said it had asked German authorities to investigate the possible theft of secret GM documents by Lopez and seven of his lieutenants who followed him toVW. Report: California recovery iffy, Nevada plugs along i in i' 1 fi .3 Vw. jr.

1 mwmm-' 0 3 By Susan Skorupa GAZETTE-JOURNAL After three years of deterioration, California's economic troubles might be bottoming out, says a study by the Federal Reserve Bank of San Francisco. That's a big however, and the Fed's economic experts said the Golden State won't begin seeing any real economic recovery for at least a year. Nevada, meanwhile, is plugging along in a fairly persistent recovery with only a few fluctuations, the Fed study said. "Between May 1990 and December 1 992, the state's (California) economy showed almost constant deterioration," the study said. "In recent months, however, many of these economic measures appear to have stopped declining." While payroll figures and construction activity are increasing, California's commercial real estate remains troubled and state and local fiscal problems are serious.

In addition, further military layoffs and closures are likely. Given these negatives, the Fed said, "Economic activity is likely to remain essentially flat at least through early 1994." Nevada's overall economy expanded early this year with March employment 3.8 percent ahead of the year-earlier level. "With this first-quarter strength, Nevada continues its rebound from the slow growth period during the Gulf War and the national recession," Fed economists noted. The important trade and services sectors were strong during the first quarter, the report said, as were state and local government and financial sectors. Construction activity was volatile for the year ending Jan.

31, the Fed says, but it's expected to return to its 1990 peak with new projects in southern Nevada. Overall, the Fed's nine-state Western district is showing signs of economic improvement, but Washington's economy is at its weakest point in more than 10 years. Financial industries, manufacturers like Boeing and the federal government all have shed jobs, the report said. International trade and a solid service sector, however, should keep Washington from significant job losses, the Fed said. ssooi3t6d Press TOUGH TALK: Gov.

Bob Miller, center, meets Elardi, left, and Culinary Workers Union chief Jim Ar-Monday with Frontier Hotel-Casino President Tom nold at the governor's office in Carson City. Governor pressured me, casino boss says Techies have a long way to go By Brendan Riley ASSOCIATED PRESS CARSON CITY Frontier hotel-casino chief Tom Elardi agreed Monday under duress by his account to fact-finding in efforts to end a 20-month-old strike at his club on the Las Vegas Strip. But what Elardi characterized as heavy-handed pressure from Gov. Bob Miller was described by the governor as insistence that some movement occur in what's now the longest strike in Nevada history. Culinary union chief Jim Arnold seemed pleased as he emerged from the closed-door meeting that lasted nearly three hours.

Arnold said fact-finding will help and "the union will cooperate 100 percent." "We fully support whatever the governor wants to get to the bottom of this," Arnold said. But Elardi complained about pressure, saying Miller was hinting at some action against the Frontier's casino license unless the club cooperated in the effort to end the strike. Elardi said he questioned the governor's methods, and Miller told him he wanted "full leverage in not only sorting out the facts but in getting to some type of mediation." "This was under total duress, but we did agree to cooperate and participate in the fact-finding," Elardi said. "I was not happy the way the meeting was put to us," he added. Miller confirmed that he made demands nearly shouting at one point during the session, which had to be interrupted by two private meetings for Elardi and several aides who accompanied him.

Asked whether he threatened Elardi's gaming license, Miller added, "I have not threatened anybody." But he insisted that Elardi stop trying to restrict the fact-finding process being conducted by professional mediator Sam Kagel be limited. "In advance of the whole (factfinding) process, they wanted to limit what the governor could or would do, and I said I was absolutely unwilling to do that," Miller said. "The fact that they're coming to the table, even if one side is more reluctant than the other, gives us some degree of hope," Miller added. "It certainly is more hope than yesterday or the day before." The governor also said he hasn't decided what to do once he gets a report from Kagel, who will hold his first meeting June 7 with the casino and union leaders. Miller said he hopes a quick resolution will make a report unnecessary.

ATLANTA (AP) As thousands of high-tech high rollers gathered for their spring convention, IBM's top personal computer executive warned Monday that a huge gap must be bridged to make computing more productive and fun. "Millions of people out there do not warm up to keyboards and mice," said James Canna-vino, senior vice president of IBM's personal systems division. "They want to interact with computers on their terms." Computers are now used by only about 25 percent of the population while televisions and telephones are used by nearly ev eryone, he said at the Comdex-Windows World trade show. Organizers expect between 80,000 and 90,000 people to attend the show, which lasts through Thursday. About 1,000 companies are exhibiting products but some of the industry's biggest companies, notably Compaq Computer Corp.

and Tandy stayed home. Nonetheless, several major products are being announced at the show, including the Windows NT program to run desktop and workstation computers from Microsoft Corp. and a PC built on a powerful new chip from Digital Equipment Corp. General Mills plans to close 31 restaurants GOLDEN VALLEY, Minn. General Mills Inc.

said Monday it will close 3 1 of its 1 ,075 restaurants, including 27 Red Lobster outlets, as part of a restructuring program. The move should help offset higher costs expected when new federal tax and health care policies take effect Bruce Atwater, General Mills chairman, said. About half of the restaurants to be closed are in economically depressed areas in Canada, the company said. The U.S. closings are primarily located in areas with more than one General Mills restaurant.

General Mills also owns the Olive Garden and China Coast chains. Local Red Lobster manager Linda Bradley said the Reno restaurant, opened several years ago at 3601 S. Virginia won't be affected by the closings. Ointon panel to study struggling U.S. airlines WASHINGTON President Clinton on Monday launched a new commission to study the struggling airline industry, saying finding solutions to the carriers' problems is "critical to our economic future." "It is critical to building a high-wage future for America, not just in the states that are obviously affected, like Washington state, but throughout the United States," Clinton said at the first meeting of the National Commission to Ensure a Strong Competitive Airline Industry.

"There's not a state, not a community in this country, that won't be better off if we have a strong and vibrant aerospace economy." Staff and wire reports Gaming Tourism ViststoReno Number of previous visits to Reno in 1992 by tourists: 25 23 Another Las Vegas hotel announces expansion plans LAS VEGAS Another Las Vegas resort has announced expansion plans that include a new attraction for area residents and tourists. The Rio Hotel, already in the midst of adding a new tower, is planning a $25 million expansion to add casino space and a first of its kind interactive theater. The hotel's plans come as three new Las Vegas Strip resorts edge closer to opening, with some 1 1 ,000 new hotel rooms and two theme parks being added to the tourism market. Anthony Marnell II, chairman of the publicly traded company, told a weekend shareholder meeting that the expansion will boost business at the off Strip hotel-casino. "With the suite tower project on time and on budget and the high levels of existing business, we see the need to provide additional entertainment, eating and gaming areas," Marnell said.

GA chapter says calls increasing since Arizona casino reopened PHOENIX The central Arizona chapter of Gamblers Anonymous says calls seeking help have doubled since January and the rise is being attributed to the reopening of a tribal casino. The Fort McDowell Mohave-Apache Indian Community casino was shut down by the FBI in May 1 992 over the tribe's lack of a gaming compact with the state. A compact was signed on Nov. 25 and the gaming center reopened Jan. 15.

"Fort McDowell is creating havoc for us, with men and now the women," said chapter coordinator Ralph who spoke on condition he, not be fully identified in keeping with the group's confidentiality policy. "Where we used to manage 40 to 45 callers in a three-week period, now we're up to about 80 calls. About half of them are people who say they've been going out to Fort McDowell." Aztar 7V2 Bally Gaming 12 -Va Bally Mfg. 7V2 Boomtown 28V2 1 Caesars World 48 -Vz Casino Data Sys. 14 -V2 Circus Circus 55 2V2 Grand Casino 42 -34 Hilton Hotels 47Va IGT 36V2 Vs Jackpot Ent.

21V4 Va MGM Grand 34 Mirage 42V2 -2 PromusCos. 48 1Vs Rio Hotel 14'4 Va Sahara Casino 5Va -3s Sahara Resorts 22 Sands Regent 21 V2 Showboat 21 -Va United Gaming 9716 116 Video Lottery 17 First 1 to 3 4 to 9 time Source: 1992 visit Profile Gazette-Journal.