The Akron Beacon Journal du lieu suivant : Akron, Ohio • Page 5

Page C8, Friday, May 19, 1995 The Beacon Journal hikes dividend dime a share Increase doesn't satisfy Kerkorian, but it may make some unhappy shareholders feel a bit better stocks. Chrysler shares finished yesterday at 423, down 1. Kerkorian has said he wants to maximize the value of his 36 million Chrysler shares by buying the 90 percent of the company he doesn't already own. In December, he successfully pushed Chrysler to raise its dividend and announce a program to buy back $1 billion in stock on the open market, measures aimed at boosting the stock price. His $55-a-share buyout proposal called for borrowing up to $13 billion and tapping $5.5 billion from Chrysler's cash reserve, which is about $7.3 billion.

Chrysler said the company isn't for sale, and Kerkorian has been unable to assemble financing. "That kind of buyout, even if it is doable and we don't think it is would have saddled the company with an enormous debt burden," Eaton told shareholders at yesterday's meeting. If there were any Tracinda representatives among the .675 people there, they did not make their presence known. At a news conference later yesterday, Eaton said Kerkorian "has been a very disruptive force in the company," but he expected the Las Vegas investor to continue as a shareholder. He also said he was "very disappointed" that former Chrysler Chairman Lee Iacocca was working with Kerkorian on the buyout attempt.

On other topics, Eaton said the softer U.S. market for cars and trucks and costs of launching Chrysler's new generation of mini- vans would probably mean that second- and third-quarter profits will be lower than last year's. But he said he believes this year's sales fall-off is "a temporary lull" and that the auto industry has yet to reach the peak of its current cycle. Shareholders at yesterday's meeting said they support the company's course in dealing with Kerkorian. "Kerkorian is a heckuva businessman, but I don't know if him improving his position will improve mine," said William H.

Dulin of St. Louis, a retired Chrysler maintenance supervisor. "I believe that Eaton and the rest of the staff will look out for the company," said Richard E. Smith, a worker at Chrysler's transmission plant in Kokomo, Ind. ers," Alex Yemenidjian, an executive at Kerkorian's Tracinda said in a statement.

Chrysler Chairman Robert J. Eaton focused on that issue value for shareholders at the company's annual meeting yesterday in St. Louis. He said Chrysler leads the auto industry in stock performance this decade and has a higher profit margin and dividend yield than General Motors and Ford. But he said the stock price, which has languished despite a year of record profits, has been a disappointment.

"Everything seems backward and upside down," he said, describing Wall Street's logic in setting a value on auto company Dow takes a dip The rise in the Dow Jones industrial average since Nov. 1 I 1 By Mike McKesson Associated Press St. LOUIS: Chrysler Corp. raised its stock dividend 25 percent yesterday, taking another step to satisfy shareholders who might be restive because of billionaire Kirk Kerkorian's proposal to buy the automaker. But the increase, which takes the quarterly payment up 10 cents to 50 cents a share, didn't carry much weight with Kerkorian, Chrysler's largest stockholder.

"A quarterly dividend of a dime is a very small step in the right direction, but it does not even begin to address the fundamental issue of substantially increasing value for all Chrysler sharehold Plan shifts phone costs Ameritech endorses proposal to raise prices in expensive service areas By David Adams Beacon Journal business writer The cost of local telephone service in rural areas could go up under a cost-based system endorsed yesterday by Ameritech Ohio President and Chief Executive Officer Jacqueline F. Woods. At a news conference before her appearance at the Akron Roundta-ble, Woods said Ameritech generally supports a system of local telephone service in which costs charged customers reflect the actual cost of providing that service. Currently, some revenue-rich telephone systems subsidize service in areas where it is more expensive. For example, stringing telephone wires in rural areas is more expensive per customer than it is in urban areas.

Yet customers in both areas are charged the same. Also under a cost-based system, the cost for basic services could go down, while the cost of options, such as call-waiting and paging, could go up, she said. Woods also endorsed a bill that would break down barriers to competition in the telecommunications industry. The bill, passed out of a U.S. House subcommittee on Wednesday, would allow local telephone companies, such as Ameritech, to compete for long-distance business within 18 months after the bill's passage.

"We're very pleased to see movement on the bill," she said about the bill sponsored by U.S. Rep. Jack Fields, R-Texas. "We think it's time." The full House Telecommunications Committee is to begin considering the bill next week. Meanwhile, a similar bill could move to the Senate floor for a vote in the next few weeks.

40UU 4400 Nov. 1-30 Dec. 1-29 Jan. 3 -31 1994 1995 tomorrow's expiration of options, contracts based on stock indexes, or bundles of stocks, which often adds to volatility. Traders said computerized program trading, which usually increases in the days leading up to these expirations, was prominent throughout the day.

Some market participants voiced little surprise at the downturn, say Gephardt, accused the Japanese of trying to flood the U.S. market with cars in advance of the sanctions. "Japan is taking advantage of our market and our workers," he said. While many experts believe the auto dispute will be resolved short of an all-out trade war, Kantor said there are no plans to reopen negotiations next week when he and Japanese Trade Minister Ryutaro Hashimoto will be in Paris for an economic conference. America's trade deficit with Mexico surged 36 percent in March to a record $1.71 billion as economic turmoil continued to wipe out what had been one of the few consistent U.S.

trade surpluses. I Refinance 3600 t- 3500 Wall Street Takeover rumor spurs BFG to two-year high Shares of B.F. Goodrich hit a two-year high yesterday at 507s, up 234, in heavy trading on the New York Stock Exchange before closing at 4934, up l5s. Dan Dorfman, CNBC stock market commentator, attributed the price pop to rumors that an outside company, possibly a defense contractor, was interested in acquiring the Bath-based specialty chemicals and aerospace company. Dorfman said Goodrich shares could fetch in a bidding war.

Goodrich, as is its custom, declined comment However, Chairman John Ong in the past has made it known he wants Goodrich to remain independent. Chrysler '95 minivan owners offered new latches Chrysler will offer free replacement of the rear door latch on its 1995 minivans, a move that puts the company's campaign to replace latches on earlier models on indefinite hold. The company had planned to use the sturdier metal found in the 1995 latch to replace the locks on 3 million Dodge Caravan, Plymouth Voyager and Chrysler Town and Country minivans sold from 1984 to 1994 with dashboard rear-gate release buttons. Chrysler defended its 1995 lock, but said it agreed to the change because the National Highway Traffic Safety Administration also found problems with the new lock and because it was concerned that negative publicity was worrying customers. Promotions Cleveland supplier makes changes at top Preformed Line Products of Cleveland has promoted Robert G.

Ruhlman to president and chief operating officer. Jon R. Ruhlman, who had been president for 33 years, becomes chairman and chief executive officer. Preformed Line supplies high-quality cable anchoring and control hardware and systems that serve utility and telecommunication companies across the country. Paint Grow Group thwarts suitor's delaying tactic Grow Group Inc.

said a New York Supreme Court judge rejected Sherwin-Williams attempt to delay bidding for Grow, which has received competing tender offers. Grow yesterday set a noon Sunday deadline for final bids from Imperial Chemical Industries Pic and Sherwin-Williams. Sherwin-Williams sued seeking a delay. Derivatives Painesville sues accountants over loss Painesville yesterday sued accountants Deloitte Touche for negligence in connection with losses the city suffered by investing in derivatives. Painesville lost $5 million of an $8 million investment in interest-only securities, which lost value as interest rates rose.

It bought the investments from three firms, two of which Hart Securities and Murchison Investment Bankersare out of business. Painesville hasn't retrieved any of its money so far and has had to defer plans to build an electricity substation and to replace police vehicles. Entertainment Disney buying 25 pet. of California Angels Walt Disney seeking to broaden its reach in the entertainment industry, said yesterday it agreed to buy 25 percent of the California Angels baseball team from the family of country-singing star Gene Autry. Disney would have the option of buying the rest of the team at a later date.

Terms were not disclosed. Tidbits Loral and are near $600 million deal Loral Corp. has tentatively agreed to provide Corp. with its next generation of Telstar satellites in a contract valued at more than $600 million. The ESOP Association yesterday named Darrell Tackett of Cuyahoga Falls' Reuther Mold and Manufacturing as the Employee-Owner of the Year Developers Diversified Realty Corp.

has acquired a shopping center in Palm Harbor, Fla. Newly profitable IBM is cutting the salaries of 120 executive secretaries up to 36 percent, while granting millions of dollars in bonuses to top executives. Feb. 1-28 Maf.1-31 Apr. 3 -28 May 1-18 ing the market was long overdue for a pullback.

The Dow Jones industrial average has gained more than 700 points since Thanksgiving. "It's about time," said Jon Grov-eman, president and head of equity trading at Ladenburg, Thalmann Co. "I mean, my goodness, they're just letting a little air out of the balloon." For the year so far, the U.S. deficit in goods and services is running at an annual rate of $120.86 billion, far above last year's deficit of $106.57 billion. But some economists detected at least some hopeful signs that the worst may be over for the deficit.

Howard Lewis, vice president for trade at the National Association of Manufacturers, noted that the February and March deficits were substantially lower than the record $11.95 billion deficit in goods and services set in January. "The lower dollar, coupled with slower growth in domestic demand, means that the trade improvement this year is likely to be greater than generalfy realized," Lewis said. Your Home gIiW4jdETi. ml Loan for Only a Penny and not One Cent More! Stocks Lower profits seen in second quarter Continued from Page C7 Solloway, director of research for Argus Research in New York. Long-term rates, especially in the market for U.S.

Treasury issues, have been falling for months. Low rates make corporate borrowing cheaper and can boost profits, which enhances stock values. Solloway said the outlook is now for stable rates in the short term. In addition, economic growth is slowing, causing forecasts for second-quarter profit growth to be lower than the sharp rises in the first quarter, he said. The sell-off was intensified by Trade Japanese accused of flooding U.S.

markets Continued from Page C7 United States rose by 21 percent, with one-fourth of the increase coming from Japanese autos and parts. For the first three months of the year, Japan shipped $10.4 billion in autos and parts to the United States, while the United States sold just $1 billion in auto exports to Japan. The overall U.S. deficit with Japan hit a record $66 billion last year, with nearly 60 percent of that in autos. To narrow this gap, the Clinton administration has been demanding that Japan boost its purchases of U.S.-made autos and parts, and on Tuesday it targeted 13 of Japan's: most popular luxury autos for puni-1 tive tariffs of 100 percent if no market-opening agreement is reached in the next month.

U.S. Trade Representative Mickey Kantor called the big jump in Japan's March deficit curious given the fact that the dollar has weakened in value by nearly 20 percent against the yen this year. That weakness should make Japanese goods more expensive and thus less attractive to U.S. buyers. "Japan continues to ship products to our market at a lower cost than they are being sold in the Japanese market in order to maintain market share," Kantor told reporters.

That remark raised the specter that in addition to the punitive tariffs, the administration could bring "dumping" charges accusing Japan of selling its cars below market prices. House Minority Leader Dick BEACONLine For the latest prices of your stocks or funds call: 996-3999 HOW TO USE BEACONLINE BEFORE YOU CALL, find out the ticker symbol for your stocks or funds. The ticker is not the abbreviation in the Beacon Journal's stock pages. CONVERT the ticker symbol to a BeaconLine numerical code: A21 H42 0 63 V83 B22 1-43 W91 C23 J51 Q01 X92 D31 K52 R72 Y93 E32 L53 S73 Z03 F33 M61 T8i til G41 N62 U82 -12 13 EXAMPLE: GT 41 81, press CALL 996-3999. Once connected press 1999 and, when prompted, enter the appropriate stock code followed by FOR MORE historical information on stocks press f.then To inquire about another stock or mutual fund, press at any time and start again.

NOTE: Stock Information Is delayed by no more than 15 minutes: fund information is updated at 6 p.m. Quotes received through BeaconLine are not Intended for the purposes of buying or selling securities but for Information only. Sponsored by: The Beacon Journal Akron's Roundtable yesterday added a few seats. For the first time in its 19-year history, the Akron Roundtable is on the Internet. The text of speeches made at the Roundtable's civic forum can be read on Kent State University's World Wide Web site.

And those with special audio computer connections can hear the speeches live. (In the past, they had to settle for the radio.) To access the Roundtable, use a browser such as Mosaic or Netscape, go to KSU's site at http:www.wksu.kent.edu. Click on the Akron Roundtable icon. Permission to enter the competitive long-distance market is what Ameritech has sought in return for agreeing to open its local telephone fiefdoms throughout the Midwest to competition. In Ohio, Ameritech, the state's largest local telephone company, is preparing to go head-to-head for telephone business against such rivals as the long-distance company, MCI, and the cable TV giant, Time Warner.

The competition began last year, when state regulators, armed with Ameritech's consent, officially opened the door. While endorsing state and national efforts to open competition in the telecommunications industry, Woods warned that it is necessary that the rules of the competition be clear to all involved. This month, local telephone company Cincinnati Bell filed legal action to stop Time Warner from offering service in its territory until state regulators finish drafting the rules that will govern that battle. The Public Utilities Commission of Ohio has been holding meetings for months to reach agreement on those rules. The PUCO is expected to finish this summer.

Woods said it will be necessary to resolve such issues as which companies will provide service to unprofitable areas and which' companies will provide 911 emergency service. Ameritech Ohio is part of the Chicago-based Ameritech, a Baby Bell created in the divestiture of a decade ago. Ameritech also provides local telephone service to Illinois, Michigan, Indiana and Wisconsin. before an extraordinary gain rose 116 percent to $23.1 million, or $1.74 per share, compared with $10.7 million, or 81 cents per share, a year earlier. Revenue for the year was $403 million, an increase of 53 percent from the year before.

CasTech makes aluminum and nonmetallic wiring products. Cas-Tech's stock closed at 14, up V4. Telxon Corp. The Fairlawn company said its fourth-quarter net income was $3.7 million, or 23 cents per share, up 314 percent from $885,000, or 6 cents per share, a year earlier. Revenue for the quarter was $102 million, up from $99.4 million a year earlier.

For the fiscal year that ended March 31, Telxon reported net in come of $9 million, or 57 cents per share, compared with a net loss of $2.8 million, or 18 cents per share, a year earlier. Revenue was $379.5 million, up from $296 million in fis cal 1994, an increase of 28 percent. Telxon makes wireless and portable teletransaction systems. Telxon's stock closed at 15 yesterday, up V. Earnings Fabri-Centers of America shows a quarterly gain Earnings, sales up for company based in Hudson.

Cloth World stores contribute $49.3 million to sales No other Closing Costs, Points, Appraisal, Application, Private Mortgage Insurance (PMI) Fees or other hidden costs ETTtytytvT I 1 i 1 1 i ni i UOIMJIM) Beacon Journal staff report Fabri-Centers of America said its first-quarter earnings were $278,000, or 3 cents per share, compared with a net loss of $1.26 million, or 13 cents per share, for the same period a year ago. Net sales for the quarter rose 38 percent to $183.3 million, up from $132.7 million a year earlier. The Cloth World stores acquired last October contributed $49.3 million in sales during the quarter, the company said. Comparable store sales increased 1.2 percent over the same period a year ago. Fabri-Centers of America, based in Hudson, operates 950 stores, primarily under the names of Jo-Ann Fabrics and Crafts and Cloth World.

Its stock closed at unchanged. CasTech Aluminum Group CasTech said fourth-quarter net income was $6 million, more than double the income of $2.4 million for the same quarter a year ago. Revenue increased 70 percent to $112.1 million from $65.8 million a year earlier. For the fiscal year that ended March 31v CasTech said net income Contract Rate and Annual Percentage Rate (APR) based on a $50,000 loan for 120 months with interest and principal payments of $606.37 per month. Property insurance required.

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