Reno Gazette-Journal from Reno, Nevada • Page 16

I I Reno Gazette-Journal STEVE FALCONE, BUSINESS EDITOR: PHONE, 788-6322; FAX, 788-6458 THURSDAY OCTOBER 14, 1993 October 13, IW DOW(lnduslrials) NYSE Bonds The Treasury market ended narrowly mixed as most investors refrained from major purchases or sales of bonds ahead of wholesale inflation figures today. The price of the Treasury's main 30-year bond rose 3-32 point, or 94 cents per 1 ,000 in face value. Its yield, which moves in the opposite direction, fell to 5.9 1 percent from 5.92 percent late Tuesday. AMEX Holiday dispute with Ford keeps UAW pact unsigned DETROIT The United Auto Workers balked Wednesday at signing a new three-year contract with Ford Motor Co. in a dispute over the timing of new paid holidays.

The unusual post-negotiation squabble scuttled a ceremony at which UAW president Owen Bieberand Ford chairman Harold Poling were to sign the new agreement, which is expected to serve as a pattern for agreements at Chrysler and GM. Ford spokesman David Caplan said the new deal, ratified by UAVV-represented Ford workers last month, has been in effect since Oct. 4. The union wants assurances that Ford will not schedule its two-week model changeover shutdown during the Independence Day period in 1 995 or 1 996. Union bargainers won two new-paid holidays in those years, creating four-dav weekends around July 4.

NASDAQ Alpine Meadows Amfed Financial Amservlnc. BankAmerica Clorox Coeurd'Alene Comstock Bank R.R. Donnelley Echo Bay First Interstate FirstMissGold First Western Fin. FMCGold Gannett General Motors Granite Const. Harding Nevada Power Newmont Pacific Telesis J.C.

Penney Reno Air Rotech Santa Fe Pacific Sierra Pacific Sierra Tahoe Southwest Gas US Bancorp Gannett: Gannett owner of the Reno Gazette-Journal, Wednesday reported a 12 percent rise in third-quarter profits and attributed the gain to stable operating expenses. For the quarter ended Sept. 26, net earnings totaled $88.8 million, or 6 1 cents a share, against net income of $79. 1 million, or 55 cents a share in the 1 992 quarter. Revenue advanced 3 percent to $876.5 million from $848.6 million a year ago.

The Arlington-based media organization said new federal income taxes imposed last August, which were retroactive to January, reduced profits for the quarter. But operating expenses during the quarter were up less than one percent. Levi Strauss: Levi Strauss Associates Inc. announced third-quarter earnings of $127.7 million on sales of 1 .6 billion. The privately held parent company of Levi Strauss Co.

said third-quarter performance could not be compared to figures from the same period last year because of a one-time accounting charge. Ycar-to-date sales were $4.3 billion, up 7 percent from the comparable 1992 period. 24Vz 1 316 45V4 51Va 20V4 7V2 28 11V2 67 5 734 5 487a 43 21 7 25 51 53'4 46 12V2 19'2 20 7Vs 16 27 116 '8 Vz Va -Va -Va Va -Va -V2 V2 -38 -38 -Vs -Va Vs Va -Va NYSE Diary Advances: 953 Declines: 1,004 Unchanged: 671 Higher MPH: That's multi-paycheck household, not miles per hour. The Conference Board, a New York-based business research group, says husbands and wives work in an estimated 31 million American households, vs. 1 8 million in 1 970.

For stores catering to the affluent, this is good news. Fabian Linden, a Conference Board consumer expert, says the MPH trend is ushering in a new era of "formidable spending power." 143 slew lov 33 Total issues: 2,628 Composite volume: 354,896,690 1992 avg. comp. 250,1 S7.090 BELL ATLANTIC-TCI MERGER A IP 3 nformatioo-age in ecu amage RETAILING 5-and-10 chain to close stores NEW YORK (AP) Bell Atlantic Corp. said Wednesday it will buy Tele-Communications Inc.

and affiliate Liberty Media Corp. in one of the largest mergers ever, consummating "the perfect information-age marriage." Regional phone company Bell Atlantic will acquire cable providers TCI and Liberty Media in two phases, the total cost of which could exceed $30 billion. The mega-deal, arriving in the middle of a merger war over Paramount Communications has dramatic implications for the future of the communications industry. "With the combination of cable deal is peripheral to the merger with Bell Atlantic but said TCI would still back QVC Network Inc. in its $9.5 billion bid.

"It's just an investment," Malone said. One of the top figures in the cable industry, Malone will become vice chairman of the merged Bell Atlantic. Smith will remain chairman and chief executive officer. In the Paramount battle, cable shopping channel QVC and Viacom another cable operator, have made competing bids for the entertainment company. TCI is backing QVC, and some have questioned what role the merger with Bell Atlantic would have on crowded news conference.

Smith said the merged Bell Atlantic would have more than 22 million telephone and cable customers in 59 of the top 100 U.S. markets. "Financially, the synergies are terrific," TCI Chief Executive Officer John C. Malone said of the deal with Bell Atlantic. "The combination of the two enterprises will dramatically increase the cash available right now." TCI, the nation's largest cable system operator, is in the midst of a $3.3 billion stock-swap acquisition of Liberty Media, which figures in the battle over Paramount.

Malone argued the Paramount that deal. Viacom said it raised troubling questions about Ma-lone's power. The rush of dealmaking underscores the furious changes engulfing the communications business, which is struggling to develop technologies to deliver voice, video and computer data through a single connection into homes. At Wednesday's news conference, the companies showed off Bell Atlantic's prototype Stargazer interactive, multimedia television system. Through Stargazer, subscribers would be able to use their.TVs to See MERGER on page 5B Malone Smith properties and wire and wireless telephone businesses, we will immediately create one of the world's largest informaton distribution companies," Bell Atlantic Chairman Ravmond W.

Smith said at a BANKING FIB names new CEO for Nevada NEW ORLEANS CASINO Harrah's unveils new plan A 1v fs "i i 1 "0-'. I I tr 1i' V- I I I' I 'V'V. -'i r'i Not settled: A casino board member and Caesars are calling for new bids. Associated Press HOPEFUL: Wendell Gauthier, right, leader of the New Orleans casino, shows off new plans for the fa-investment group that won the right to develop a cility as Mayor Sidney Barthelemy looks on. By Susan Skorupa GAZETTE-JOURNAL Clint Amoldus was named chairman and chief executive officer of First Interstate Bank of Nevada Wednesday, Those top positions were eliminated in the Nevada operations in 1991 when then-Chairman and CEO Alan Thompson moved to FIB's regional banking committee in September 1991.

At that time, FIB Corp. reorganized operations to "cut down on duplicative overhead positions," Arnoldus said. "The focus was to get the expense base down." FIB has been successful in that attempt, he said, and now wants to put more focus on its individual state operations. Part of that move is to bring back the executive positions with "people close to the market to understand the unique qualities of the markets." Arnoldus said his focus will be to make sure all the bank's decision-making for Nevada takes place in Nevada. Larry Tuntland remains the bank's president for northern Nevada in Reno.

Andy Stud-dert, Tuntland's counterpart in southern Nevada, remains in his position in Las Vegas. Arnoldus, formerly FIB's head of corporate banking, is a 21-year banking and financial industry veteran. Arnoldus, 46, joined FIB Nevada in August 1991 as executive vice president of the corporate banking group, responsible for the bank's endeavors in gaming, corporate banking and corporate real estate. NEW YORK (AP) Wool-worth Corp. said Wednesday it would slash 13,000 jobs and close or redesign nearly 1,000 stores, a bold move that will end a century-old dimestore tradition in many communities scattered across North America.

The sweeping plan, which accelerates Woolworth's transformation from a homespun variety-store chain into an urban-centered specialty retailer, will result in a third-quarter charge of $480 million, or $3.66 a share. Analysts had been expecting the company to earn between 35 and 40 cents per share for the period. Woolworth operates two stores in Reno, one in Park Lane Mall and one downtown at Virginia and First streets. Downtown manager Leonard Mills said information he's received indicates neither Reno store will be affected by the new round of closures. The restructuring marks the second time in as many years that Woolworth has moved aggressively to close hundreds of unprofitable stores.

"'The continuation of unfavorable economic conditions in the United States and Canada, along with increased competitive pressures affecting customers' shopping habits and the generally depressed consumer-spending environment, have led us to accelerate our store closings," Woolworth chairman illiam Lavin said. The company did not say where the affected stores were located. On Wall Street, investors were mildly enthusiastic. Woolworth added 25 cents a share to close at $26. 1 2V2 on the New York Stock Exchange.

Woolworth said the moves will allow the company to "best allocate its resources to its most profitable retail formats," particularly its Foot Locker and expanded World Foot Locker athletic chain, the RX Place deep-discount drug stores and the Northern Reflections women's apparel stores. Some 250 of the 970 targeted stores will be reconfigured into these and other more profitable formats. The rest will be closed. In Canada, about 100 Wool-worth stores will be converted to the popular The Bargain Shop concept introduced in 1991. Porsche forms parts subsidiary Porsche Cars North America has formed a new subsidary, EuroSelect Quality Parts to provide replacement parts for Porsche autos built from 1974 through 1988.

EuroSelect products will be priced at least 30 percent to 35 percent lower than other genuine Porsche parts, said Bob Carlson, Porsche Cars North America public relations manager. EuroSelect parts will come with an exclusive warranty, and they'll be distributed exclusively by authorized U.S. distributors. More than 100 U.S. Porsche dealers have have applied for and been selected as EuroSelect distributors.

NEW ORLEANS (AP) Louisiana's three-partner casino monopoly announced plans Wednesday for the world's biggest casino a $650 million, building at the foot of Canal Street. The plans, including a temporary casino in the city's Municipal Auditorium, were what Mayor Sidney Barthelemy and Gov. Edwin Edwards had been pushing, and very little like the plan approved by the state casino board. "If we had stuck to what we originally proposed, we could not have gotten it accepted," said Wendell Gauthier, the leader of 1 0 New Orleans investors who joined with the Harrah's casino chain to win the casino. Gauthier, Harrah's New Orleans president Ron Lenczycki, and developer Christopher Hem-meter unveiled their plans at a news conference, rather than at the board's meeting a decision that ruffled some feathers.

"You may have difficulty believing this, but we still have the right to grant this license for a permanent or temporary casino," board Vice Chairman William A. Nungesser said during the meeting. "I don't think this board should lose sight of that, even ship's plans to renovate the River-gate in stages. "We're going to move like a rocket ship to make sure this project gets on line as quickly as possible," Barthelemy said. The board will need much more detailed information than was presented Wednesday, said Chairman Max Chastain.

Nungesser was much more vehement. "What good is getting bids if you approve one proposal and are now in a position of voting on the exact opposite of what you voted on?" he said. "I don't know how the board can do that and keep any credibility, if they've got any left." Nor is that the only potential legal problem. Caesars World, which had been Hemmeter's choice of casino operator, asked though the whole world seems to have lost sight of it." Edwards, Gauthier and others said they hoped to open the casino by Feb. 1.

However, Lenczycki acknowledged that was unlikely. A date later that month is more likely, he said. The City Council and the casino board would have to approve the new plans within two weeks to meet the Feb. 1 date, Gauthier said. There will not be any problem with the city, said Mayor Sidney Barthelemy, who built his vision of a Louisiana casino into the lease for the Rivergate convention center, the only legal casino site.

That lease, signed four months before the casino board gave the casino monopoly to Harrah's Jazz -had stymied that partner the board Monday to start the bidding all over. Since Harrah's Jazz was not able to work out an operating contract for its bid, and was, in effect submitting a completely new proposal, the board should either give the contract to Hemmeter or start everything over, it said. Calling the move "posturing," Gauthier said that since Caesars World chose to be an operator rather than an investor, it has no legal standing to challenge the decision, he said. Not all of the casino board members were upset with the latest casino plans. Joan Heisser, who was in the minority when the board voted 5-4 in August for Gauthier's original plan to renovate the Rivergate in stages, praised the plan.

Gaming Tourism California company planning country resort at El Rancho LAS VEGAS A California company plans to turn the defunct El Rancho Hotel into a country music-oriented resort. Included in the plans by Las Vegas Entertainment Network Inc. are two hotel towers that would resemble "gigantic pair of dressed-up Western-style boots 20 stories tall." The publicly traded entertainment network announced Friday a $10.5 million advance toward the purchase of the El Rancho. The closing date is set for Oct. 20, with the company planning to reopen the resort in 1 994.

Company spokesman Byron Lasky said Harry Wald, former Caesars Palace president and chief operating officer, will be directing the redevelopment of the property. Owner Ed Torres closed the El Rancho, originally built as the Thunderbird, in July 1 992 because of losses. Tax collections from first casino fatten Vicksburg bank accounts VICKSBURG, Miss. Local taxes on gambling put nearly $300,000 in Vicksburg, Warren County and public school bank accounts in September, the first full month of operations for the Isle of Capri Casino. If each month's revenue matches September's during the fiscal year which starts this month, the county will bank 1 ,094,424, twice the 500,000 supervisors anticipated when preparing their present spending plan.

That revenue level would mean $2,128,764 for Vicksburg for the period, while the Vicksburg Warren School District would receive $280,000. School board members did not include any income from casinos in their 1 993-94 plan. The casino does not release its income information, but the figures indicate $2.5 million in gross gaming revenue during August and $6.5 miU ion during September. a Number of Gamestables Years ended June 30 3 i2 I A ol 4N Source: McGhie Consulting Aztar 7Va -Va Bally Gaming 21 Va Vz Bally Mfg. 97s Va Boomtown 21 Vz -Va Caesars World 49'A Vs Casino Data Sys.

28 -1 Circus Circus 473e -Va Grand Casinos 27 1V4 Hilton Hotels 477s -58 IGT 39 Va Jackpot Ent. 15V4 Vz MGM Grand 45 Mirage 57sa Va Monarch 8V2 Primadonna 31 -V2 Promus Cos. 79V2- Rio Hotel 16V8 -2 Sahara Gaming 18 -1 Sands Regent 16 Showboat 23V4 114 Sodak 35 -Vi United Gaming 1 1 Vs Video Lottery 14'4 Vi Gazette-Journal in Tli TIrTIM.