Reno Gazette-Journal from Reno, Nevada • Page 14

Reno Gazette-Journal ESS TUESDAY OCTOBER 26. 1993 STEVE FALCONE, BUSINESS EDITOR: PHONE, 788-6322; FAX, 788-6458 October 25, 1993 DOW(lndusiriiils) NYSE SIP 500 AMEX MldCap NASDAQ 1 9 IBM expected to report loss for third quarter NEW YORK International Business Machines Corp. is expected to report a loss of 1 50 million to $200 million today when it posts third-quarter results. The world's biggest computer company suffered its worst loss ever in the second quarter, $8 billion, due to charges for paying 85,000 workers to leave by the end of next year. Its operating loss for the period was considerably less, $40 million.

The weak economies of Europe and Japan continue to take a toll on IBM, which derives more than two-thirds of its revenue overseas. Analysts will be paying close attention to IBM's revenue, which has declined virtually every quarter since 1 990. The company cannot become profitable again without higher revenue, said analyst Michael Geran of Pershing Co. in Jersev City, N.J. "You can't cost-cut yourself to profitability," he said.

Alpine Meadows 5 Amfed Financial 23 V2 Amservlnc. BankAmerica 43Ve -Ife- Clorox 52V4 -2 Coeurd'Alene 19 Comstock Bank 7 R.R. Donnelley 29V8 Echo Bay 12V2 Vti" First interstate 6OV4 14- FirstMiss Gold 6 -V 7 First Western Fin. 8V2 -V FMC Gold 5V2 Wr Gannett 51 Va. General Motors 44 -1 Granite Const.

18 Harding 8V4 Nevada Power 25 -I Newmont 51 Pacific Telesis 54 V2 3C J.C. Penney 49V4 1 RenoAir 11 Rotech 13 Santa Fe Pacific 18 Sierra Pacific 20 Sierra Tahoe 714 -14 Southwest Gas 18Vs US Bancorp 25 T-bills: Interest rates on short-term Treasury securities rose in Monday's auction to the highest level since August. The Treasury Department sold 1 3 billion in three-month bills at an average discount rate of 3.08 percent, up from 3.06 percent last week. Another $13.1 billion was sold in six-month bills at an average discount rateof 3.19 percent, up from 3. 14 percent last week.

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 3.40 percent last week. Bonds. Treasury bond prices fell for a third straight session as investors reacted to fresh signs of economic strength, including the strongest automobile sales in more than three years. The price of the Treasury's main 30-year bond fell 5-16 point, or $3. 1 3 per $1,000 in face value.

NYSE Diary i I MMiTHIIIitt, -ill in ii i-ftfi-1 1 IT- 1 Advances: 929 New highs 63 Declines: 1,085 Unchanged: 633' Total issues: 2,647 23 Associated Press NEW WORLD: Joel L. Gross installs the new United Parcel Service logo on a delivery truck in Forest Park, Ga. Marking UPS' first change in vehicle graphics in 32 years, the side panels of the brown trucks will feature a two-toned globe and the tagline "Worldwide Delivery Service." Composite volume: 313,212,900 1992 avg. com p. 250,157,090 AIRLINES Fares hit turbulence in siairioe9s sides Discounts, increases: Major carriers get caught up in advanced-purchase skirmishing, depending upon the market.

by Friday and used by Jan. 15. More unfortunate, the sale can't be applied to flights on the Sunday after Thanksgiving (Nov. 28), Dec. 23 or Jan.

2. Tickets also are non-refundable, must be purchased at least 1 4 days in advance and require a Saturday night stay. And beginning this weekend, most major airlines except Northwest have announced an increase on selected round-trip fares of about $20. The increase applies to trips of more than 1 ,000 miles and won't take effect on 14-day advance purchase tickets until this er may have to take a roundabout rate to reach a specific destination at a bargain, depending on which routes have discounts. A lot more of the market will be involved in the fare increase than in the decrease, said Tim Heydon of Sunrise Travel.

"I think we'll see more of that where some carriers are trying to sneak in $10 here or $20 there," Heydon said. "It doesn't sound like much, but when you multiply it by a 200-seat airplane and by the number of flights in a day, it's big bucks." The impact of the increase will depend on when a traveler purchases his ticket, Heydon noted. A non-discounted round-trip from Reno to Chicago with 1 4-day advance purchase runs $293 on one major airline. Seven-day advance purchase is $428 and no-advance straight coach is 1 1 96. Adding $20 to the straight coach fare is a much smaller percentage increase than adding it to the 14-day advance fare, Heydon said.

Despite the deals, because of the short purchase time and the holiday and route restrictions, "the fare increases will impact more people," Heydon said. weekend. The fare war means a 1 4-day advance round-trip ticket between Reno and Minneapolis now costs $258. Two weeks ago, it was about $50 higher. Reno to New York City is $209.

compared to $368 to $428 two weeks ago. "All the markets are different," said Rick Joswick of Reno's De-Luxe Travel. "All the airlines will follow because if one of the big airlines announces a discount, they all have to or they lose money." But there are only a few days for travelers to take advantage of the sale and travel agents say a travel By Susan Skorupa GAZETTE-JOURNAL Airlines are bouncing air fares all over the charts this week with both fare cuts and increases announced by major airlines. Northwest Airlines started the discounting over the weekend. On Sunday.

American Airlines said it would match the discounts of up to 40 percent and other airlines moved to match the prices on Monday. Unfortunately for travelers, discounted tickets must be purchased Auction in Sparks today ill I til-! 1 I 4 11 11 I Mi i 1h F-NA hi I 3V f) r) I Tr 0 li 1 'm If .8 i' 'T iW wm MANAGEMENT Sierra Pacific gets new bossl from Louisville? By Susan Skorupa GAZETTE-JOURNAL Sierra Pacific Resources an nounced the heir-apparent to the company's current chairman and-chief executive on Monday. Walter M. Higgins II, president and chief operating officer of Louisville (Ky.) Gas Electric will join Sierra Pacific, the parent company of Sierra Pacific Power, on Monday, holding the same job titles. Austin Stedham, the holding company's current chairman and chief executive officer, said board of directors wants to make Higgins chief executive next year when Stedham retires at age 65.

Louisville Gas Electric is the principal subsidiary of Energy, a Louisville-based utility holding company. The company serves about 340,000 electric and 250,000 natural gas customers in; Louisville and 17 surrounding; counties. I Higgins, 49, joined the Louis-! ville utility in 1991 after nearly 14 years with Portland (Ore.) General Electric where he reached the position of senior vice president. Raised in Medford, Hig- gins graduated from the U.S. Na-1 val Academy in Annapolis, in 1966 and served as a commis--sioned naval officer in submarines and later as a nuclear engineer.

After his Navy service, he was project manager and assistant to a director at the U.S. Nuclear Regulatory Commission. Higgins attended the Public Utility Executive Course at the University of Idaho, studied for a master's degree in business ad-, ministration at George Washington University and graduated from Stanford University's business executive program. Higgins is married and has three children. THE ECONOMY Low rates push home sales during September WASHINGTON (AP) Sales of existing homes shot up to the second highest level in 1 4 years last month as buyers took advantage of the lowest mortgage rates in more than two decades.

I "I think interest rates have finally kicked in and brought housing demand to a higher level," said Daryl Delano of Cahners Economics in Newton, Mass. The National Association of Realtors reported Monday that sales of existing single-family homes totaled 3.91 million at a seasonally adjusted annual rate, up 2.6 percent from August's 3-8 1 million. Sales rose in every region ex-, cept for the Northeast, where they were unchanged at the highest level of the year. Nationally, it was the second highest since May 1979 when the annual rate was 4.09 million homes. Sales last December totaled 4.04 million.

So far this year, sales are 7 percent above the first nine months of 992. "We're seeing increased buying activity throughout the housing market, but most impressive is the turnout in the first-time buyer sector," said William S. Chee, the Realtors' president. "And that spells good news for those who want to trade up to bigger, more expensive homes, because they now have Jakers for their current homes." It also would be good news Tor builders who were betting Jhat falling rates would stimulate sales. Despite a decline in sales of both new and previously owned homes in August, they boosted construction in September to the highest level since February 4990.

Thirty-year, fixed-rate mortgages averaged 6.91 percent in September, down from 7.11 a month earlier, according to surveys by the Federal Home Loan Mortgage Corp. They slid to 6.74 percent last week, the 1 1th decline in 12 weeks and a 25-year low. Delano said he also expects Increased activity when the government reports on new home sales on Nov. 2. "I expect to see new home sales up by about the same amount," he said.

"We'll get a 2-to-3 percent gain next week." Realtors economist John A. Tuccillo called Monday's report good news for the economy. "Strong housing markets have always had a positive impact on the whole economic picture," he said. Tim DunnGazette Journal EQUIPMENT CHECK: Marcie Depaoli of Seaberry-Depaoli Con- auctioned today beginning at 9 a.m. Ross Auctions Ltd.

of Portland, struction of Sparks previews construction machinery and other is conducting the sale of 320 units at 1555 E.Lincoln Way, be- equipment from several Nevada and California firms which will be hind the Sparks Factory Outlet Mall. Employees, families give Treasure Island trial run before opening LAS VEGAS (AP) Employ- ing, was packed over the weekend with, but we felt things went fairly Luxor resort, ees brought their families for over- as workers used their families for a smoothly," said Mirage Resorts A formal opening party is sched-night stays and some gambled trial run of the new resort. spokesman Alan Feldman. uled for VIPs and media tonight. night stays and some gambled uled for VIPs and media tonight, with play money as workers put where guests will get the first peek Some 700 guests stayed in the Mirage Resorts is opening the hotel Sunday night, and bet play money at the casino tables while their children played in the arcade.

"Obviously there are hundreds of details that have to be dealt at the $32-million pirate battle that will occur hourly in front of the resort. Feldman said the hotel has not set a fixed opening time other than early Wednesday. latest resort adjacent to the Mirage hotel-casino, which started the building boom on the Las Vegas Strip when it opened in 1989. It follows the opening earlier this month of the pyramid-shaped finishing touches on the $430 million Treasure Island resort, the second major Las Vegas Strip hotel-casino to open this month. The resort, which will open to the public early Wednesday morn Gaming Tourism Gamers' income Median household income of casino gamers vs.

U.S. population: Gamers mrtftmzmmtitiieitimffiKiii -V -2 -7e -1 -1 -1 -1 -1 -V2 -1 -2Vs -Vz First Louisiana casino ready, waiting for Coast Guard approval NEW ORLEANS The 39 gaming tables have dealers and croupiers ready to roll, 760 slot machines are prepared to eat anything up to 100 a pull and Louisiana's first casino is expecting overflow crowds. However, in the world of riverboat gambling, the Coast Guard will decide when the dice start rolling. The Star Casino, which had its formal opening party Sunday night, will have its first cruise on south Louisiana's Lake Pontchartrain today if it gets the needed Coast Guard permits. "We're hoping to hear from them later today," Claire Amiss, a Star Casino spokeswoman said on Monday.

However, casino manager Nick Gullo, although hopeful the games would start today, said a more-realistic expectation would be later in the week. Workers were still putting finishing touches on the boat, he said. Conrad Hotels plans Cairo casino BEVERLY HILLS, Calif. Conrad Hotels, the international subsidiary of Hilton Hotels Monday announced it has entered into an agreement to develop and operate a luxury hotel-casino in Cairo, Egypt. In addition to Conrad, the partners involved in the 1 50 million project include the Arab International Bank, World Trade Centre Banque Misr, Misr International Bank, Tourism Holding Co.

of Egypt and Misr Hotels Co. Opening is scheduled for early 1 997. Members to buy Vegas hotel WINTER PARK, Fla. Members Service Corp. announced Monday that it has paid to Bank of America $400,000 as the balance of its deposit on its purchase of the Chaparral Hotel and Casino in Las Vegas.

The Chaparral Hotel is a 3 1 0-room facility with" 63,000 square feet of casino floor space. 7 21 9 17 46V8 30V4 37 25'A 47 37 16's 40 52 8V2 27 74 16 18V4 14 20V4 34V2 10 17 Aztar Bally Gaming Bally Mfg. Boomtown Caesars World Casino Data Sys. Circus Circus Grand Casinos Hilton Hotels IGT Jackpot Ent. MGM Grand Mirage Monarch Primadonna PromusCos.

Rio Hotel Sahara Gaming Sands Regent Showboat Sodak United Gaming Video Lottery U.S. population 14 Gazette-Journal.