Star Tribune from Minneapolis, Minnesota on April 20, 1990 · Page 38
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Star Tribune from Minneapolis, Minnesota · Page 38

Minneapolis, Minnesota
Issue Date:
Friday, April 20, 1990
Page 38
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2D. Earnings Best Buy Co. sees net income for year more than double Best Buy Co. Thursday reported improved results for its most recent fiscal year because of several factors, including improved profit margins and inventory management. The Bloomington-based retailer of consumer electronics and major appliances reported income of $5.7 million for the 1 1-month period ended March 3, compared with $2.1 million in the fiscal year ended March 31, 1989. The company changed its fiscal year to end on the Saturday closest to the last day in February. Sales were up 1.2 percent to $312.9 million. Other factors cited for the improved results include a reduction in inventory shrinkage, overall expense control that offset higher new store pre-opening costs, store-operating profits contributed by eight new stores, and a decision in fiscal 1989 to close video rental departments that had losses that reduced fiscal 1989 net income by about $1.7 million. Best Buy said its comparable store sales sales of stores open a year or longer were even with last year's for the comparable 11 -month periods, but it said comparable store sales increases averaged S percent for the last six months of fiscal 1990, compared with decreases averaging 6 percent for the first five months. Best Buy said its fiscal 1991 expansion plans include opening nine stores: six in the Dallas-Fort Worth market and three in nonmetro markets. 4th Qtr. 33 1990 Revenue $89,100,000 Percent Change -15.8 Net (Loss) $89,000 Net(Loss)Shr $.01 33189 $105,762,000 ($258,000) ($.28) Year End Revenue $512,850,000 $506,674,000 Percent Change 1.2 Net $5,683,000 $2,060,000 Percent Change 175.9 NetShr $.69 $.25 3MCo. 1st Qtr. 331 1990 Revenue $3,164,000,000 Percent Change 4.9 Net $335,000,000 Percent Change 5 J NetShr $131 1989 $3,017,000,000 $318,000,000 $1.43 3M Co., Maplewood, said K posted new highs in quarterly sales and earnings led by continued strong growth in International markets. The company said Its international unit volume rose 12 percent from the same quarter last year. International markets accounted for 49 percent of 3M tales during the quarter, M said. Domestically, 3M's unit volume increased about 1 percent, "reflecting the slowing of the U.S. economy." 3M said the slowdown was most evident in its industrial and electronic sectors, which serve automotive, housing, general industrial and other markets. The stronger U.S. dollar and a lower effective tax rate had slight, nearly offsetting effects on first-quarter earnings. Nash Finch Co. 1st Qtr. 324 1990 Revenue $510,739,152 Percent Change 4.9 Net $1,905,584 Percent Change 5.7 NetShr $.18 1989 $486,844,950 $1,802,653 $.17 Nash Finch, St. Louis Park-based food wholesaler, said sales and earnings figures include partial Brewery Continued from Randy Hull, a Heileman official, declined to comment last night on the status of the negotiations. Heileman met with bidders this week and has given them until noon today to amend their proposals. The bidders include directors and officers of Old Home Foods Inc. of St. Paul; Twin Cities businessmen John McClung and Walter Wells, former owners and partners of GNB Inc., a battery manufacturer; a group of local beer distributors headed by Sohan Sahota, owner of North Country Beer Wholesalers of Oakdale, and a group called Employees Proprietary Hills warns Japan Associated Press Puerto Vallarta, Mexico U.S. Trade Representative Carla Hills told the Japanese foreign minister Thursday that Japan must lower trade barriers on U.S. timber products or face possible sanctions. Javelin Corporation's The Seven Elements of Creative Thinking1 a business seminar Over 100 unique strategies for becoming more creative. "Climb out of the canyona of commonplace thinking. Take your brain out and play with it!" Class size limited to 25, register early (612) 924-3511 credit orders accepted Price $175, Completely May 3, 9:00-4:30 Hampton Inn, 494 & Lyndale South I May 10,9:00-4:30 Radisson Hotel, Downtown StPaul FridayApril 201 990 Star Tribune first quarter results tor Timberlake Grocery Co. of Macon, Ga.. acquired ki January. Nash Finch Chairman Harold Finch attributed tha earnings increase to profit Improvement in tts retail operations. Sales growth was slowed by the late Easter holiday this year. Graco Inc. 1st Qtr. 331 1990 1989 Revenue $68,147,000 $66,681,000 Percent Change 2.2 Net $2313,000 $2457,000 Percent Change 6.6 NetShr $J5 $J3 Graco, MinneapoUs-based supplier of technology for the management of fluids for Industrial and commercial applications, said an improved gross profit margin resulting from a more favorable mix of products permitted M to achieve Increased awnings despite only modest sales growth. It said M had strong sales growth In Europe, while U.S. sales volume was flat. Sales in the Far East were hurt by unfavorable Japanese exchange rates and reduced sales of engineered systems to South Korea. BMC Industries Inc. 1st Qtr. 331 1990 1989 Revenue $43,629,000 $42,174,000 Percent Change 3.4 Net $814,000 $452,000 Percent Change 80.1 NetShr $.15 $.08 BMC Industries, Bloomington, makes precision-etched products and optical products. Network Systems Corp. 1st Qtr. 331 1990 Revenue $35,699,000 Percent Change 18.1 Net $3,905,000 Percent Change 130 X NetShr $.13 1989 $30,235,000 $1,692,000 $.06 Network Systems, a Brooklyn Park maker of high-performance data communications systems, said its gross margins on product sales increased to 67 percent from 65 percent last year. The company said sales of Hyper-channel-DX, channel extension products and inter-networking products were chiefly responsible for the better sales and profits. Ballistic Recovery Systems Inc. 2nd Qtr. 331 1990 Revenue $1,091,439 Percent Change 203.0 Net (Loss) $44,818 Net(Loss)Shr $.01 1989 $360,269 ($86,095) ($.02) 6 Months Revenue $1,665390 Percent Change 202.4 Net (Loss) ($74,442) Net(Loss)Shr ($.02) $550,723 ($169,952) ($.05) 'Second quarter results have been restated to conform with the restatement of the purchase of Psranelics Included In the company's results for fiscal year 1989. Ballistic Recovery Systems, South St. Paul manufacturer of aviation safety and defense systems, said the results track certain trends set during the first quarter, including the containment of expenses and Improved margins. Ballistic said its financial posture la still unstable and that management must remain cautiously disciplined. North Atlantic Technologies Inc. 1st Qtr. 331 1990 1989 Revenue $791,548 $1,295,320 Percent Change -38.9 Net (Loss) ($135,011) $7241 Net(Loss)Shr ($.08) $.04 North Atlantic Technologies, a Mlnnetonka-based manufacturer of heat recovery systems, attributed the loss to delays in the placement of some contracts and increased investments in marketing to add sales personnel, including a field office in Houston, to batter serve the petrochemicals market. It said Its first-quarter bookings were the highest on record for the period. page ID Acquisition Consortium Inc. (EPAC), made up of unnamed Twin Cities investors. Representatives of three groups said last night that they were unsure whether they could or would improve their bids. Sahota could not be reached for comment. Heileman announced in February that it planned to sell the Schmidt plant and concentrate on selling Heileman's major brands of beer. Company officials have indicated that they will probably decide on a buyer by mid-May. on timber trade She and Japan's Taro Nakayama are attending a three-day conference of nations and organizations that belong to the General Agreement on Tariffs and Trade. "There's still a lot to be done between now and April 30," the date Hills could call for retaliatory measures, officials said Hills told Nakayama. refundable if not satisfied I SpotlightRetailing Field's Continued from page According to the prospectus, Field's flagship store in Chicago's Loop dominated in terms of sales, generating about $200 million in revenues last year. The document reported that Field's 24 units earned net profits of $88 million on sales of $1.09 billion in 1989, and that the chain was projecting earnings of $139 million on sales of $1.58 billion by 1994. Field's expects growth to come both in the Chicajo area and surrounding states, according to the document. A store it opened last year in Columbus, Ohio, did so well that the company had studied the possibility of opening another. A Field's spokesman said yesterday that those plans were put on hold after the chain was put up for sale. Field's said in the documents that it had not fared as well with efforts to expand to Texas, where it opened its first store in 1979 and now has four. The retail industry in Texas has suffered because of the depressed oil market, but Dayton Hudson officials said they plan to keep the Texas stores. Dayton Hudson said it also will continue to operate all the Field's stores under the Marshall Field Eastern Continued from Eastern's unsecured creditors, who are owed $980 million, argued that present management was unable to bring the company out of its financial tailspin. Eastern officials said yesterday they will not appeal the appointment and lauded Lifland's indications that the airline can be reorganized rather than liquidated. Lorenzo also pledged his help for Shugrue. "We're going to help in all reasonable ways that we can." Eastern spokesman Bob Hunter said the court's decision to release $80 million from Eastern's escrow account will keep the carrier in operation through mid-1990. But problems remain. Eastern lost $852.3 million last year, and creditors say the company has not regained the confidence of consumers and travel agents since the strike. Several top Eastern executives told the bankruptcy court that appointment of a trustee could hurt business further and cause employee departures. Furthermore, the company still must reach long-term contract agreements with its unions. Nevertheless, Shugrue issued a statement projecting optimism about Eastern's future. "I want to reassure the community of travel agents and the flying public that Eastern is flying, that it is flying safely and reliably, and with an unparalleled level of service and enthusiasm," he said. The Machinists are seeking talks as soon as possible, but returning members to the hangars and runways could take some time, said union leaders. "Our main goal now is getting back to work," said Frank Ortis, president of the Machinists' Miami local. "But we will remain on strike until an agreement is reached. We've worked too hard to make any moves now that we'd regret later." Eastern's Machinists, pilots and flight attendants unions went on strike March 4, 1989, after lengthy, bitter contract talks. The strike forced the company to seek bank Dividends H.B. Fuller Co., St. Paul 15C, increase from 14'2t, quarterly, payable 5-10-90 to shareholders of record 4-30-90. ft s 8 l c ft W v I or lease I '547.34 ,r:i GV (j PLUS TAX tj.-.', 'v: y: - Z-- ID name, which analysts regard as well-known and well-regarded among consumers. The name dates back to 1865, when the Chicago retailer operated a single store not far from where its flagship store on State St now stands. The State St store was opened in 1868, burned down in 1871 and rebuilt in 1873. Like the Dayton's store on the Nicollet Mall, the State St. store is a landmark that is undcrjoing a major facelift. The Field's store is in the middle of a four-year renovation estimated to cost $110 million to $120 million. The 12-story building holds 850,000 square feet of selling space and features such amenities as a mosaic Tiffany ceiling high over the main-floor cosmetics department. A new nine-story atrium featuring a glass elevator is under construction as well. Dayton's downtown Minneapolis store finished interior remodeling several years ago. It recently announced plans to restore its exterior. Staff writer Dan Wascoe Jr. and librarian Sylvia Frisch contributed to this story. page ID ruptcy court protection from creditors five days later. Of the 9,000 Machinists who walked off the job, about 7,500 have indicated a desire to return to Eastern, said Ortis. About 2,500 workers could be brought back right after a strike settlement, he said. Flight attendants and pilots ended their strikes in November, but few have returned to Eastern because of limited openings. The company has shrunk its operations since the strike and hired replacement workers to fill many positions. Bryan declined to make direct comments concerning Shugrue, but said Shugrue's experience in aviation was encouraging. Shugrue, a pilot, worked as a Pan Am Corp. executive before becoming president of Houston-based Continental. Shugrue left Continental under pressure from Lorenzo a month before the Eastern strike. Shugrue was a consultant to former major league baseball commissioner Peter Ueberroth in a union-supported effort to acquire Eastern last year. He also advised Al Checchi on the purchase of Northwest Airlines. Shugrue not only provided advice on the airline industry in general but his knowledge of Pan Am became valuable when Pan Am entered the bidding for Northwest. Staff Writer David Phelps contributed to this story. Oil prices Continued settle at $18.06. On Wednesday the contract traded as low as $16.60 a barrel, its worst level since December 1988. "The market has decided to take it very bullishly," Nick Antill, analyst at the London-based investment firm of County NatWest, said of OPEC's announcement. The crude had been trading in the range of $20 to $21 a barrel early in April. It plummeted nearly 90 cents in the two previous sessions, finishing at its lowest since December 1988. Prices have been pummeled on reports that OPEC was exceeding its H.B. Fuller's Andersen apologizes for earnings By Susan E. Peterson Staff Writer Tony Andersen, president of H.B. Fuller Co., told shareholders Thursday at the St Paul-based firm's annual meeting that he takes full responsibility for the past two years of disappointing earnings. "We've spent two years going in the wrong darn direction," he said, noting with chagrin that 1989 was the first year lual Fuller did not make profit-sharing distributions to its employees. Although some of the company's problems were caused by long-term investment decisions that hurt short-term earnings or by events beyond its control, he said, "I've simply failed to deliver." The company reported a 26 percent drop in 1989 earnings, to $15.7 million, after a smaller earnings decline the year before. Andersen listed several factors that contributed to the profit declines: acquisitions made in 1988 and 1989 that have produced smaller returns than expected; costs of building new plants and closing old ones, lack of growth in some markets, increased interest expense and operating costs, higher tax rates and costs of currency devaluations, especially in Latin America. Company news Pentair, Niagara union reach pact Pentair Inc., a Roseville manufacturer of industrial products and paper, said its Niagara of Wisconsin Paper Corp. reached agreement on a labor contract with about 450 members of the United Paperworkers International Union at the mill in Niagara, Wis. Pentair said production difficulties during the 10-week negotiation period were resolved in early April when production returned to normal. Production at Niagara's new pressurized groundwood pulp mill has exceeded expectations since its Feb. 15 startup, improving the quality and quantity of the pulp used in Niagara products. Baxter will use Surgidyne system Surgidyne Inc., Inver Grove Heights, said it has a letter of intent with Baxter Healthcare Corp., McGaw Park, 111., regarding a license for a postoperative orthopedic autotrans-fusion system it is developing. Terms call for Baxter, through its V. Mueller division, to acquire rights to the system and to pay a 20 percent royalty on sales of the disposable products until total royalties to Surgidyne equal $2 million. After that Baxter will pay Surgidyne a royalty of 5 percent until five years from the date of first sale. Finally, Baxter will provide up to $150,000 to Surgidyne from page ID output limits at a time of seasonal declines in demand by oil consuming nations. The average price of seven crudes used as the cartel's reference plummeted to $15.38 a barrel last week, compared with $17.12 a barrel in the first week of April and well below OPECs target price of $ 1 8 a barrel. Boussena, who is Algeria's mines minister, said all 13 OPEC members would attend the special session, although it technically was a meeting of the cartel's eight-member price R.R. Donnelley & Sons is pleased to announce that Mary E. Wyffels has joined our company at our Minneapolis office 701 Building Suite 1310 701 Fourth Avenue South Minneapolis, MN 55415 (612)342-9500 R.R Donnelley International F II ICtl iVlCtl Printing Services He said, however, that the company is dealing aggressively with the prob- ,i lems and that the benefits from re- building its asset base will start to show in the next two years. And I although the company took a $1.4 A million first-quarter charge for loot- i ing losses in Panama after the U.S. invasion, Fuller is positioned to take advantage of a possible turnaround in Latin America, he said. M 1 is.. "I can't say 1990 will be the yean,'.' I clear all ot the hurdles betore us, he. said, but by 1991, he said, he expects ;; most of the problems to be behind , i the firm. Andersen predicted that , this year's earnings will be higher than last year's. Analysts have esti- mated earnings of $1.65 to $2 aj 1 share, compared with $1.64 in 1989.;; Although stockholders at the meeting generally were low-key and support- ive, some tough questions were stib mined by investors before the meetr ing and answered by Andersen jnf writing. Topics included the Panama losses, the company's presence in, China and dissatisfaction with the'' level of executive pay. Andersen, ;.- wno took a y percent pay cut to $404,629 in 1989, said that some officers' pay was down and that com I pensation was in line with industry - sianaaras. i , for completion of the design, devel- ; opment ana tooling required tor pro- j : r.i i . f . ' uuvuuii ui uic pi uuuui. ,n In brief XX American Bank's earnings for the first three months of 1990 totaled t $1.7 million, a 6.2 percent increase , over the same period last year. It attributed the results to an increase in net interest income, the difference between interest earned on a bank's loan and investment portfolios and interest paid on its deposits and borrowings. B 0 T - T . .1 . . - ' it - joii investors inc., miania, saia a - federal mdee in MinneaDous af firmed J&Ts right to pursue several ot its counterclaims against Thomas Scallen, president of International & Broadcasting Corp., Minneapolis, and its directors. In a news release, J&T said the court denied Interna tional's motion to dismiss claims re- i lattng to International s refusal to adequately consider J&Ts June 1989 n $16 oner to negotiate a merger and the 'poison pill' rights plan," among other things. A group of companies controlled by Mario Gabelli said it has raised its; stake in Communications Systems Inc., Hector, Minn., to 13.85 percent from 12.26 percent of the common shares outstanding. In a filing with the Securities and Exchange Commission, the group said it holds 602,484 Communications Systems common shares, up from 531,884 shares. Compiled by Barbara Pokela t:ii. en.,1 monitonng committee. OPECs mid-year conference, previ-. ously scheduled for May 25, has been postponed until June 25 to give time for the market to move to a "better balance between supply and demand," he said. 'Z so- Analysts estimated the cartel was pumping more than 24 million barrels of crude a day, well over its ; ceiling of 22.1 million barrels a day for the first half of the year.

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