Florida Today from Cocoa, Florida • Page 38

ff DIVIDEND DECLARED General Dynamics declares a quarterly dividend of 2 cents a share with common stock. BIGGER BOXTER Porsche will boost the size of the engine of its Boxter sports car from 2.5 to 2.7 liters. BUSINESS THURSDAY, August 5, 1999 SECTION Dave Berman, business editor, 242-3654, 9 a.m.-6 p.m. BUSINESS DIGEST WDM 0M to Ill TuMp DOW OIL BONDS I 3 National debt The government is exploring buying back a portion of the national debt held by the public, something that has not been done since 1972. Here is a look at the debt and the portion of it held by the public including individuals, banks and insurance companies.

1999 $5.7 trillion ing about 49,000 Dow Chemical said the cuts would come through reduced hiring and attrition, but Dow Chemical President and Chief Executive William S. Stavropou-los declined to be more specific about where the cuts might be made. The two companies said they expect the combination to save $500 million a year. The merger would unite two companies that have faced crises. prices resulting from a drop in demand in struggling overseas economies.

The merged company which will operate under the Dow Chemical name will have $24 billion in annual revenue, putting it ahead of the current No. 2, Germany's BASF AG, according to the most recent rankings by Chemical Week, a magazine covering the industry. About 2,000 jobs will be cut as a result of the merger, leav Associated Press DETROIT The Dow Chemical the maker of Styrofoam, is buying Union Carbide the leader in producing the chemicals used in making polyester and antifreeze. The $9.3 billion deal announced Wednesday would create the world's second-largest chemical business behind DuPont strengthening Dow's perch in a sluggish chemical market beset by depressed A 1984 leak at Union Carbide's pesticide plant in Bhopal, India, killed 4,000 people and injured 50,000 in the world's worst recorded industrial accident. A court in Bhopal later ruled that exposure to the gas claimed thousands of additional lives over the years since the leak.

Union Carbide paid a $470 million settlement in India's Supreme Court in 1989. See MERGE, 11C In trillions $6.0 Government Held by public pi 5.0 4.0 3.0 2.0 1.0 1972 $435.9 billion Beachside Winn-Dixie opens today i' i Htiiinmifmtniifii 1970 '80 '90 I III IHI I '1 1 1 I I ILil I III Nil I I 111 I i 4 VK-r, i sv Ml ii.lt- 30 INDUSTRIALS W. TEXAS CRUDE 30 YEAR 10,674.77 $20.44 6.09 14 cents Inflation fears impair markets FLORIDA TODAY Staff and Wire Reports Blue-chip stocks collapsed in the final half-hour of trading Wednesday, deflating a rally fueled by a $9.3 billion merger of Dow Chemical and Union Carbide. The broader market, plagued by fears of inflation, declined much more steeply. The Dow Jones industrial average fell 2.54 points to close at 10,674.77.

Other market indicators fared worse. The Standard Poor's 500 fell 16.85 to 1,305.33, and the Nasdaq composite index fell 48.07 to 2,539.92. The NYSE composite index fell 8.06 to 614.34, and the American Stock Exchange composite index fell 3.87 to 776.60. The Russell 2000 index of smaller companies fell 6.59 to 429.69. Stock listings, 8-1 1C.

Chase mortgage makes buy NEW YORK Chase Manhattan mortgage subsidiary has agreed to purchase the residential mortgage business of Mellon Chase was the nation's third-largest residential mortgage originator last year, writing $85 billion in new loans, while Mellon originated $8 billion. Chase moved to first place in the first two quarters of this year, passing Countrywide and Norwest Mortgage. With the acquisition, Chase would rise to first place from third in servicing residential loans, surpassing Bank of America and Norwest, said Steve Kim, research director at Inside Mortgage Finance, an industry newsletter. Chase Manhattan Mortgage, based in Edison, N.J., serviced a portfolio of $327 billion in residential loans last year. Terms of the deal were not disclosed.

Mellon has $55 billion servicing portfolio and 630 customers. Kellogg to serve up calcium Kellogg Co. was to introduce Wednesday its Special Plus, a multigrain, fruited cereal that, without milk, provides 600 milligrams of calcium with every one-cup serving. That's 60 percent of the daily calcium recommended by the federal government and many public health groups. Said Kellogg spokeswoman Meghan Park-hurst.

"With milk, the calcium goes up to 75 percent" or 750 milligrams. Jacquelynn O'Palka, a clinical professor at the Indiana University School of Allied Health Sciences, said it's difficult for the body to absorb calcium in large doses and that she prefers milk and other dairy products as sources for calcium. Ford might face showdown DETROIT Ford Motor Co. faces a possible showdown in national contract talks with the United Auto Workers over the potential spinoff of the No. 2 automaker's Visteon Automotive Systems parts unit.

The union has scheduled an Aug. 17 strike-authorization vote at Ford plants nationwide. Though such votes are routine every three years before the UAW contracts with Detroit's automakers expire in September, holding one at all of a single company's locals on the same day is unusual. Analysts say the vote is meant to send a strong message to the No. 2 automaker, which has enjoyed relatively smooth relations with the UAW for more than 20 years but is feeling heat this year over Visteon.

The union opposes a spinoff, fearing it could bode poorly for its 28,500 members at Visteon. Michael R. Brown, FLORIDA TODAY CHARLENE SPEDDEN, general merchandise manager at Winn-Dixie at Eau Gallie Boulevard and SR A1 checks merchandise Wednesday. Store has 59,000 square feet Source: U.S. Treasury Department mm FLORIDA T0DAY-AP Treasury proposes U.S.

debt buyback Associated Press WASHINGTON Talk about a head-spinning turnaround. The United States, which for most of the century has struggled to borrow money for the burgeoning national debt, now is faced with an altogether different dilemma. For the first time since 1972, the government is figuring out ways to buy back debt now held by the public. The country has owed money since 1835, when Andrew Jackson was president. The Treasury Department on Wednesday issued proposed rules for the debt buyback operation and plans to finalize details by Jan.

1. Also, President Clinton said his plans for the budget surplus were smart and sound compared with the Republicans' $792 billion tax cut. The president has promised to veto the package after it clears Congress this week. Clinton wants to use two-thirds of the projected surpluses during the next 15 years to eliminate the $3.7 trillion in debt held by the public. He said that approach would help the economy by lowering the government's borrowing demands and reducing interest rates paid by consumers and businesses.

He likened the buyback plan to a family's decision to refinance a home mortgage at lower, more favorable interest rates in hopes of eventually paying off the entire mortgage and eliminating all interest payments. "Let's refinance our nation's mortgage and then wipe the ledger clean," Clinton said. Officials said any government purchases of debt would be voluntary and conducted through a type of reverse auction. The government would announce the type of securities it was interested in buying and accept the most competitive bids from holders of those securities. If bondholders wanted too much money to sell their securities back to the government, Treasury could decline to purchase that option.

The Treasury has not bought back securities since 1972, when a few existing bonds and notes held by the public were swapped Indian Harbour Beach ecem Winn DixieV A Brstany' fc m-SJi I Wal-Mart Mafl1' Melbourne The nation's fifth-largest grocery retailer, Winn-Dixie has more than 1,180 supermarkets, including 112 in Florida. Annual revenues were $13.6 billion for fiscal 1998. Also in the works for South Brevard shoppers: The planned opening of the new Publix Super Market in the Melbourne Shopping Center at Babcock Street and Hibiscus Boulevard. The store will replace a 40-year-old store that's just a few doors north. The target date for opening is the week of Dec.

13, Publix spokesman Lee Brunson said. The store will include a pharmacy, photo department, bakery and deli. A new look and a new name for Food Lions in Melbourne at Apollo Boulevard and Sarno Road; in Palm Bay at Palm Bay Road and Babcock Street; and in Satellite Beach at 1071 S. Patrick Drive. They will become Kash 'n Karry stores.

With an eye to the start of school next week, the store also is well stocked with supplies from glue and scissors to pencils and notebook paper. It would be no surprise to any shopper to hear from marketing manager Larry Beck that "one of the grocery industry's current trends is to provide consumers with bigger stores that offer a variety of services." The store was set up to be a showcase of that trend, Beck said. As the new Winn-Dixie opened, another Winn-Dixie, a few miles south at 1220 N. SR A1A in Indialantic, closed. "Employees will go to the new store," co-manager Troy Alexander said.

"No jobs will be lost." About 200 workers are staffing the location and the store is looking for more. The new store isn't Winn-Dixie's first foray into the Indian Harbour Beach area. The chain had a store about a mile west on the same road, but closed it several years ago. By Victoria Reid FLORIDA TODAY MELBOURNE Beachside shoppers have a new place to go to fill up the cupboard finally. A new Winn-Dixie opens today at State Road A1A and Eau Gallie Boulevard, just south of Indian Harbour Beach.

Although it's late the store originally was set to open in May it's a welcome addition to an area that's lost several grocery stores during the past few years. "We used to have a Winn-Dixie, an Albertson's, a Gooding's and Publix," said Ethel Straub, who lives nearby. Since last year, there's just Publix close by and, several miles north, a Food Lion, she said. "It's good to have a choice again," Straub said. "I'm definitely very happy." The Winn-Dixie Marketplace and Food Pa- J.

Joslin, FLORIDA TODAY vilion joins Wal-Mart as plaza anchors. The store, which is in the beachside section of Melbourne, takes over space vacated by Albertson's Supermarket. That store closed in 1998. Remodeled from wall to wall, the new Winn-Dixie includes, beyond groceries, a one-hour photo lab, a pharmacy, a flower shop, a salad and fruit bar and a specialty meat department. American's frequent-flier restrictions relaxed MVP goes online tor new debt issues.

Huge budget deficits in the 1980s and early 1990s caused the How much will you need? Delta Air Lines Melbourne's dominant carrier had dropped most of its expiration requirements three years ago. United Airlines remains the only major carrier that has expiration dates. Frequent-flier programs have been a powerful tool for creating customer loyalty for the airlines. The miles are used as a virtual currency with the airlines redeemable for such things as plane tickets, travel packages and hotel stays. During the past several years, program participants have been able to earn miles on the ground in almost endless ways.

Phone companies, grocers, car-rental agencies and credit cards offer miles. The way mileage is accrued is partially why airlines are dropping their expiration dates. Associated Press FORT WORTH, Texas Frequent-flier miles with American Airlines will last indefinitely as long as passengers use their accounts every three years, the air carrier announced Wednesday. That means the 35 million people enrolled in American's AAdvantage program might not ever see mileage expire as long as they continue to accrue or use points. "All you really have to do is have some activity within 36 months," said Henry Joyner, vice president of marketing for AMR the parent company of American.

Previously, frequent-flier miles had a shelf life of about three years, depending on the program. American's decision follows Northwest Airlines similar announcement in January. Presents 'j'iMMI AP nauuiiai ueoi 10 cnniD irom less than $1 trillion, before Ronald Reagan became president, to $5.7 trillion now. Of that amount, $3.6 trillion is in public hands; the rest is held by government trust funds, the largest of which is Social Security. The government last year had its first budget surplus since 1969, a record $69.2 billion.

Those surpluses are projected to total $2.9 trillion during the next decade, providing the money the administration proposes to use to reduce the national debt. Retirees generally need 70 percent to 80 percent of their working income, but some require only 40 percent to 50 percent. After you figure your retirement health expenses, travel, you can determine how much to save in your working years, says the JOHN ELWAY, retired Denver Broncos quarterback, playfully throws a pass Wednesday to JWGenesis President Marshall Leeds at a news conference in New York. Chief Operating Officer Joel Marks looks on. Elway, a two-time Super Bowl champ, is the co-chairman of mvp.com, a Web site that offers information and advice focusing on health, fitness and financial planning.

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