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Reno Gazette-Journal from Reno, Nevada • Page 40

Location:
Reno, Nevada
Issue Date:
Page:
40
Extracted Article Text (OCR)

STEVE FALCONE, BUSINESS EDITOR: PHONE, 788-6322; FAX, 788-6458 SATURDAY JULY 3. 1993 July 2, 1993 DOW (Industrials) NYSE 1(: '-IJii-iwAl Bonds: Treasury securities advanced broadly Friday after a weak employment report put to rest lingering market fears that the Federal Reserve would raise interest rates in the near future. Increases in long-term bond prices, however, were muted by inflation concerns during a second consecutive day of sharp gains in commodity prices. The price of the Treasury's main 30-year bond advanced 9-32 point, or $2.8 1 per 1 ,000 in face value. Its yield fell to 6.66 percent from 6.68 percent late Thursday.

Chrysler to sell rest of stake in Mitsubishi; analysts pleased DETROIT Chrysler Corp. said Friday it will sell the rest of its stake in Japan's Mitsubishi Motors ending more than two decades of ownership. The move is expected to net Chry sler about 1 50 million, money Wall Street analysts said Chrysler can put to better use. "It's a non-earning asset on their books, so they could turn the cash into an earning asset." said PaineWebber Inc. analyst Steve Girsky.

Chrysler said it decided long ago to ease out of its ownership in Mitsubishi. It has sold blocks of stock three times in the last year, whittling its stake to just over 2.7 percent. Chrysler also buys fewer Mitsubishi-built cars and trucks to sell under Chrysler nameplates than it did in the past, when cash shortages left holes in its product lineup. Many of those vehicle segments are being filled through Chrysler's five-year, 1 7.3 billion capital spending plan. The Mitsubishi stake was "viewed as kind of an inefficient investment," said S.G.

Warburg Co. analyst David Healy. "They can do all the community relations they want with Mitsubishi without having an ownership stake." Alpine Meadows Amfed Financial 21 Vt -V4 Amserv Inc. BankAmerica 44 Clorox 51 Coeurd'Alene 22Va Comstock Bank 7Va R.R. Donnelley 28 Echo Bay 13 -Vb First Interstate 62V2 FirstMissGold 7716 516 First Western Fin.

6V4 FMC Gold 7 Gannett 49V4 -Va General Motors 43 Granite Const. 17Vi -Va Harding 9 Nevada Power 25V4 Newmont 57Vs 2 Pacific Telesis 48V4 -V4 J.C. Penney 43 Reno Air 14 1 Rotech 12 Va Santa Fe Pacific 17 -Va Sierra Pacific 21 Sierra Tahoe Southwest Gas 16 -Va US Bancorp 247a -Va AMEX NASDAQ 1 NYSE Diary Advances: 826 New highs Associated Press Holiday: All U.S. financial and commodities markets will be closed Monday for the Fourth of July holiday. The markets will reopen on Tuesday.

RETURN: Bob Benard polishes a new sign for the Midwest Stock Exchange, which will be rededicated the Chicago Stock Exchange on July 8. CORPORATIONS EM workers Voting with their feet 68 Total issues: 2,548 19 Composite volume: 267,217,450 1992 ivg. comp. 250,157,090 jobs, which means $2 billion could account for more people. The 25,000 jobs originally targeted for elimination in 1993 were paid for by part of the $11.6 billion in special charges IBM took last vear.

IBM employed 302,000 at the end of 1992. Its peak employment was 406,000 at the end of 1 985. About two dozen incentive packages of various sizes and benefits were offered in the company's business units this spring to stem losses and align with the changed market for mainframe computers, for years IBM's most lucrative business. The company lost $4.9 billion Declines: 1083 Unchanged: 639 The company is considering a $2 billion charge against second-quarter earnings to pay for more layoffs and voluntary resignations, one industry source said Friday. International Business Machines Corp.

for several months has said it would shed more than 25,000 jobs this year. "It's kind of like they're voting with their feet. They're leaving in droves," said Lee Conrad, an assembly worker at IBM's Endicott, N.Y.: plant who writes a newsletter distributed to about 2,000 employees. Wednesday was the last day for IBM workers to take retirement incentives that, in some cases, in AIRPORT Higgins out; Leighton appointed to board 9 last year and $285 million in the first quarter of this year. Some analysts have said IBM must shed 70,000 to 75,000 jobs this year.

In his speech at IBM's annual meeting in April, new company chairman Louis V. Gerstner Jr. said one of his four objectives for the year was to get the job reductions done. "I want to get it behind us so we can say to the remaining IBMers, 'You're our team. Now let's Gerstner said.

One of his first actions as chairman was to set July 1 as the brea-koff for most of the choicest incentives. Reno to reconsider 2 appointments By Wayne R. Melton GAZETTE-JOURNAL The Reno City Council is scheduled to reconsider its recent appointments of two officials to the region's airport board. Shortly before the June 8 general election, the council appointed businessman Luther Mack and reappointed Betty Morris. But John Metzker, who most recently held the post that Mack would fill, complained to city officials about how the vote was held.

Since then, Mayor Pete Sferrazza said, the City Attorney's Office has ruled that the matter should be reconsidered. When the vote was held, Councilmcn Gus Nunez and Grant Sims were not allowed to cast ballots because each has had separate business dealings with Reno Cannon International Airport. Sferrazza said. And Councilwoman Bernice Mathews was allowed to vote, although she owns and operates a skycap business at the airport. played in helping arrange an $80-million runway reconstruction project.

"He's just been a very well-rounded, good person on the board," Walther said. "He always seems to find a way to make things happen without a lot of controversy. We're going to miss him he's a good man." cluded up to a year's pay and 18 months of paid medical coverage. "I don't think they're expecting to have an offer like this again," said Bob Djurdjevic, president of Annex Research, an industry consulting firm in Phoenix. "The motivation to leave will never be any better," said Sam Albert, a Scarsdale, N.Y..

industry consultant and former IBM manager. "We're seeing a whittling away of the old IBM." IBM spokesman Jim Ruderman said the company had no comment about more job reductions or a new charge against earnings, first reported as a possibility by The Wall Street Journal Friday. W. -TV said. Sacramento-based Raley's announced last month it would close the store for economic reasons.

The facility is old and Raley's officials said costs to remodel would be prohibitive. But the officials also said they were determined to see a new grocer take the space, long a convenient neighborhood favorite. "We first made contact with Raley's May 4," Studebaker said. "They responded positively and bent over backward to help us. They felt a big responsibility to the community and were very happy that the store would continue." Studebaker said the building He said it was too early to know how many employees had accepted incentives to leave IBM.

Nonetheless, a source close to the company, who spoke on condition of anonymity, told The Associated Press that the charge of around 52 billion could cover the cost of 25,000 additional employee departures. The charge is likely to be reflected in its second quarter earnings, due July 27. IBM has spent about $100,000 per departing employee in recent years. Given that record, a $2 billion charge would work out to about 20,000 workers. However, sources said, many of the departing employees are in lower-paying Craig SailorGaelleJoutnal owner has agreed to have the parking lot repaired and to make other upgrades.

He also hopes to sublet the pharmacy, but there will be few operating changes. "We don't intend to be a high-price market," Studebaker said. Studebaker also hasan agreement with IGA, a national grocery advertising group, that will allow the store cost breaks on both advertising and inventory purchase. Food stamps will be accepted in about 10 days, he said. The store opens today at 7 a.m., but will otherwise keep the same hours as Raley's, 6 a.m.

to 9 p.m. every day. 1 1 1 1 '-SI' 'h Early retirement: Twice as many employees leaving Big Blue than planned. NEW YORK (AP) IBM may lose 50,000 or more workers this year, twice as many as the company planned, because thousands more employees than expected are taking advantage of incentives to leave the computer maker. TOURISM RSCVA board seat filled Reno councilwoman: Bernice Mathews replaces Gus Nunez.

By Wayne R. Melton GAZETTE-JOURNAL Reno City Councilwoman Bernice Mathews will sit on the region's tourism board, replacing former Councilman Gus Nunez. Mayor Pete Sferrazza appointed Mathews to the Reno-Sparks Convention Visitors Authority (RSCVA) Board, and the council has approved it. A government agency primarily financed by room tax revenues, the RSCVA works to lure visitors to the region. Mathews, who operates a skycap service at Reno Cannon International Airport, couldn't be reached to comment on the appointment.

She is to fill the seat vacated by Nunez, who lost a bid for re-election to the council in the municipal election June 8. "I think Bernice will be an excellent addition to the RSCVA," Sferrazza said. "She has a lot of experience with tourists in our community." Jay Milligan, RSCVA's executive director, also praised the selection calling her an outstanding choice. "Because of her tourism-related company, she has a great understanding of the tourism business," he said. Indian gaming talks progress WASHINGTON (AP) Lawmakers trying to break an impasse between states and tribes over the growth of the Indian gaming industry said they made "significant progress" during a private, five-hour meeting Friday.

Sen. Daniel Inouye, who chairs the Senate Indian Affairs Committee, said he expected to introduce compromise legislation in the Senate before the August congressional recess. However, the lawmakers acknowledged that there are many details yet to be resolved. The mam sticking point, according to a federal official at the meeting, is the scope of gaming that states must allow. By Wayne R.

Melton GAZETTE-JOURNAL The Sparks City Council has appointed Kristine "Tina" Leighton to the region's airport board, rather than reappoint the panel's chairman. Jerry Higgins, an eight-year airport board member representing Sparks, said he's not bitter about the decision. Leighton had served several Leighton years in the mid-1980s on the eight-member Airport Authority of Washoe County Board. In voting for Leighton, several Sparks City Council members said they wanted new blood on the panel, which oversees a $25-million annual budget and sets policy for Reno Cannon International and Stead airports. Leighton, 44, is the daughter of the late Jim Lillard, who died in May 1991 while serving as a Washoe County Commission member.

That same month Leighton, a marketing executive, resigned from the airport board because she was appointed to fill her late father's commission post. She served the remainder of his term, and she no longer is a commissioner. "I'm confident that with my abilities and experience, I can make an immediate and valuable contribution," she said. "The airport is progressing, and we're looking forward to getting more carriers." Jack Walther, a current airport board member, praised Higgins for a major role he 'nv 4 "4 CLOSING SHOP: Raley's checker Ken Destefanie Deanne's son, Nicholas, 5 months. Keefer says rings up Deanne Keefer's order under the eyes of she'll miss Raley's but will check out the new store.

Goodbye old, hello new By Susan Skorupa GAZETTE-JOURNAL A local grocery store scheduled to close opens today under new ownership without missing a beat. Raley's at 1500 S. Wells closed its door last night; this morning, Wells Avenue Market opens under local ownership. "Our motive is to go in and provide service to the neighborhood and open a business we can feel proud of," said new owner Paul Studebaker. The store opens with Raley's inventory, but will begin by about Tuesday to rebuild the inventory from the ground up, Studebaker Gaming Tourism Las Vegas Convention Authority wants to buy closed Landmark LAS VLGAS The Las Vegas Convention and Visitors Authority is hoping to buy the closed Landmark Hotel, but the deal must await the sale of $55 million in municipal bonds next month.

Manny Cortez, executive director of the convention authority, says the agency was approached by representatives of the hotel's owner Lloyds Bank of London following an April 14 scaled bid sale. The authority board of directors earlier this year approved a S55 million bond sale to purchase land on Desert Inn Road for an expansion of the convention center. Cortez says part of the $55 million would be used for the Landmark purchase. But that won't be available until the first week in August. The convention authority is interested in purchasing the Landmark to use the hotel's 21 acres for a parking lot or for expansion.

New Jersey casino take climbed 1 .2 to $274 million in June ATLANTIC CITY, N.J. The city's 1 2 casinos took in $273.8 million for June, a 1. 2 percent increase from their revenue during the same month last year, the industry's trade association said Friday. Four gaming halls. Trump Taj Mahal, Caesars, Harrah's and Bally's Grand, reported decreases in revenues for June 1 993 compared to a year ago, according to the Casino Association of New Jersey.

Caesars lotcl and Casino reported the highest percentage drop in June, with revenues decreasing 1 5.9 percent from June 1992. The other eight casinos here reported increased revenues, with the Sands I lotel and Casino reporting the highest percentage increase of revenues at 10.6 percent. Association president Thomas Carver attributed the increase to more slot machines and operating hours from the previous year. Aztar 9Vb Vs Bally Gaming 13Vi Va Bally Mfg. 9 Boomtown 24'4 -112 Caesars World 43V8 -Vs Casino Data Sys.

1 1 Circus Circus 6OV4 Grand Casino 32 Hilton Hotels 45 Va IGT 38V2 -Va Jackpot Ent 24 4- y2 MGM Grand 32 -We Mirage 43 -Ve PromusCos. 487a -V Rio Hotel 14Va Sahara Casino 6Ve 4 Mi Sahara Resorts Sands Regent I6V2 Va Showboat 1 9'B -Vt Sodak 24 Va United Gaming 9Va -Ve Video Lottery 12 -Vi Slot machine wins Washoe County vs. Clark County in win per slot machine for 1992: Washoe Clark Source McGHIE Consulting Gazelle Journal.

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Pages Available:
2,578,572
Years Available:
1876-2024