Northwest Herald from Woodstock, Illinois • Page 16

Business Northwest Herald Pagf. 2 Tuesoay, esruary 26, 2002 Mattel hD)pes Barfaae mediate bots Ibesnimess Chamber News Transportation tops CL chamber meeting Henry County transportation issues will be the topic of discussion ai a chamber luncheon and panel discussion. I he meeting, which is open to the public, begins at 11:30 a.m. March 21 at Bull alley Golf Club in Woodstock. Panel participants will include representatives from the 4 CL -J Illinois Pepartment-ol transportation, Li ienry County Hoard, Mcl lenry Counts t.conomic Development and Illinois Road Builders.

I he cost is $20 per person. Tor reservations and further information, call the chamber office at (81.5) 459-1300. The chamber's recent networking "Scramble" was a major success, with 112 chamber members and guests par- ii i Bob Blazier By ABIGAIL GOLDMAN Los Angeles Times EL SF.GUNDO, Calif. -Mattel almost midway through a three-year financial realignment plan, is getting good marks from Wall Street. Traders are pleased with the renewed fiscal discipline, speedier product cycles and tighter inventory controls.

Profits have rebounded. But as the 18-month-old management team works on the business problems left from previous leaders, a more enduring challenge is rearing her head. Barbie, the doll that accounts for nearly one-third of the toymaker's $4.8 billion revenue, is showing signs of age as she turns 43 this year. Sales of Barbie slumped last year, continuing a decline since 1997 that stems in part from shifting tastes of young girls. Although Mattel is developing other products aimed at young girls, a revival of Barbies growth is seen as critical for the' company, given the doll's high profile and high profit margins.

For the coming year, Mattel's plans include a return of Barbie to the small screen via a new video and possible TV special in "Barbie as Rapunzel," building on last year's S150 million "Barbie in the Nutcracker." The new movie features Barbie in an updated version of the fairy tale classic. In addition to an array of new Barbie dolls, including a soft-body doll with glow-in-the-dark hair and pajamas for girls to bring to bed, Mattel will launch a dramatic marketing and product licensingcampaign aimed at establishing Barbie as a ubiquitous "lifestyle brand," with a product for a girl's every fashion need. At the same time, the company continues to expand its other products within the girls division. Those new products ucipaung in me i nuisuay event. Participants each left with 27 new business leads.

We appreciate he work of Kent Welch and his committee. 1 he chamber's annual trade expo is approaching. lite two-day event. "I.xpo 2002: Crystal Lake in View," will be trom 10 a.m. to 5 p.m.

March 23 and noon to 4 p.m. March 21 at South High School. "1 he Miss stal I ake Pageant also takes place in junction with the expo. It begins at 5:30 p.m. Saturday at the the high-school.

I he expo also will feature entertainment, the appearance ot a Chicago Bears player from 2 to 4 p.m. Saturday and prizes. Several ufier-hours business mixers are coming up this month. i'hey will be March 5 at Life 1 ime fitness Inc. on Randall Road in Algonquin; March 12 at Heavenly I lam, 5180 Route 11; March 19 at Hooters of Crystal Lake.

48 12 Route 14, and Match 2b at. Pioneer Center, 4500 Dayton Mcl lenry, a joint mixei ith the Mcl lenry Area Chamber of Commerce. l.ach mixer will be trom 5 to 7 p.m. There will be refresh--ineuts and networking opportunities. 1 he chamber board will host a board retreat Thursday night and iiday.

"Jiamber members representing various committees and community organizations -will join board members as they de clop a three-year plan. a result, the chamber office will be closed Friday. lht' (iiai nber's (x-()iioiiiic Developnient Committee re-, centlv met with Metra commuter railroad representatives and received mlormation about the new station to be built on ingree Road and plans for the present station in downtown Crystal-Luke. Plans are available for review at the chamber offices. Business Briefs New York Revlon losses narrow in fourth Cosmetics maker Revlon losses narrowed during the fourth quarter amid cost-cutting efforts.

The company reported Monday it lost $28.3 million, or 51 cents per share, during the three-month period that ended in December. That Was less than the $51.3 million, or 98 cents per share, Revlon lost during the same period one year earlier. Without a one-time charge, Revlon lost $24.7 million, or 47 cents per share, during the mostf recent quarter. Sales rose .6 percent to $332.5 million. Rochester, N.Y.

Eastman Kodak pictures profits Photography giant Eastman Kodak Co. will meet first-quarter and annual earnings targets. Officials said Monday the company is on track to earn 5 cents per share to 1 5 cents per share during the three-month period that ends in March and $2 per share to $2.00 per share for the full year. Chief Executive Officer Daniel Carp has said cost cuts and sales from a joint venture with Japan's Sanyo Electric Co. Ltd.

to produce fiat-screen displays will help kodak in the second half. Carp is eliminating as many as 4.000 jobs, or 9 percent of Kodak's work force, closing plants and reducing inventories to cope with a decline in sales. Kodak also is spending more to make digital products, including cameras and processing, OKI. A. Yillisms may dial up bankruptcy 'telephone and data network company Williams Communications Group Inc.

may seek bankruptcy protection because it not bringing in enough cash to make interest payments. Officials said -Monday in a statement they are talking with bank lenders, but also tire considering a Chapter 1 1 filing as a way to lower debt. Williams sells space on its network to other carriers. i he company racked up $5.2 billion in debt to build a fiber optic before demand slumped. Bloomberg News 1 V-ka "ft J.

tr. v-'- Bloomberg file photo videotape as her daughter, Barbie "Nutcracker" doll at a ecutive Officer Jill Barad hoped to revive Barbie and other products in part by moving them into online interactive properties. Since taking the chief executive spot at Mattel in 2000 after the dismissal of Barad, Robert Eckert has shifted the company's focus to traditional toy making. He reversed Mattel's earnings decline, slimmed down the company and bolstered thin management ranks. For the last 10 years, a thriving collectors market helped fill in Barbie sales with higher-priced, higher-quality dolls.

But when the economy -tattered last year, that collectors market began to fade. "I don't think people are lining up to pay these kinds of dol lars for things to look at and put in their closet given what's going on in the economy," Eckert told 'analysts and investors last month. Instead, he said, the goal is to revive the Barbie franchise by making fewer, better-quality dolls that can command higher prices and still be in demand. "We're talking about going from the last -rung on the ladder to somewhere near the top in terms of functionality and that's going to be quite an experience for travelers," said Kevin Mitchell, chairman of the Business Travel Coalition, a lobbying group for major buyers of business travel services. Northwest Chief Executive Officer Richard Anderson said the terminal signaled a new day for Northwest and its "Passenger acceptance is only going up from here," he said.

year including an esti- government subsi Nitrogen 75 percent costs planting. A Marie Delqado gets ready to Katherine, 6, gets a grip on a Toys Us store in New York. helped boost the $2.2 billion sales in the girls division, offsetting Barbie problems. Last year, U.S. Barbie sales dropped 12 percent when compared with the same time a year ago.

Worldwide, Barbie sales in 2001 fell 3 percent, to $1.5 billion, he company said, well off a 1997 Barbie peak of $1.8 billion. "We're not anticipating Barbie revisiting a double-digit growth trajectory any time soon," said Jill Krutiek, an analyst with Salomon Smith Barney in New York. Still, double-digit international Barbie sales and strong sales in the other girls products pushed the division to an overall sales gain of 3 percent. "I think this year is a great illustration of what we've done as a division," said Adrienne I'onta-nella, president of Mattel's girls division. "To come out 3 percent ahead on a worldwide basis really speaks to the portfolio of brands that we're managing." When sales of Barbie and other traditional toys began to shrink, former Mattel Chief Ex eroded over the years as Northwest outgrew its Davey Terminal, built 36 years ago.

Northwest accounts for nearly 80 percent of the passenger traffic at the. Detroit airport. It leases and occupies most of the new terminal. Northwest has improved its on-time performance in Detroit and has been credited with keeping fares down in the market. But it has been hurt by the Davey terminal's cramped, inconvenient layout fallout from a 1999 snowstorm that left passengers stuck on planes tolas long as eight hours.

New Northwest terminal flies le-thainbers new directory has arrived, embers will receive in the mail. If you do not re-one, stop-the by the chamber would like to welcome sev eral new members, Seamless 1 lome 'hnzios 1 lair Salons, Cottee Croup CKO America 1 lesertDi vWaterproolmg Contractors. Digital Inimanuel Lutheran School, Kids Furniture rv. Prudential First Realty (Carpenter). Crystal Fake.

Rotary Club, Ryco Landscaping. SLW International and SM Associates, Inc. By JIM IRWIN The Associated Press ROMULUS, Mich. Northwest Airlines new Detroit terminal has taken off. The carrier, which has dozens of flights from OTIare International and Midway airports to Detroit Metropolitan Airport, now is using the new-terminal.

The Edward H. McNamara -Terminal at Northwest World -Gateway is the Eagan, investment in its Detroit hub. It also is an investment in recouping customer goodwill More corn, ccive col top; 1 )gl I aci( N'ooi Traili Iiul.i Bhizier i prcs (yDHimfive. nit (if the House Continued from page 1 In- January, the average rate on a 30-year fixed-rate Hii irlgage was 7 percent, clown Loin 7.07 percent in December and lower than 7.03 peucnt in Januaiy a year auo. Although existing home Nates rapped 1 percent vtJes set a record ot million lor all ot 2001, prompting economists to in, at the industry's even as the national econ.omv was mired in recession.

for Americans who opted to bnv houses last year, the iwitetit of low mortgage rates -other negative including a. weak labor market. By legion, sales of existing houses surged 23.3 percent in the West a rate of 1.01 mil-linn', in the Northeast, sales Changes in less money in store for farmers? Collins said the projected increase in supplies would help drive farm income Crystal Lake Chamber of jumped 16.4 percent to a rate of 710.000 and in the South, the rose 10.1 percent to a rate of 2.38 million. In the Midwest, sales were up 8.3 percent to a rate of 1.31 million. The rise in existing home stiles lilted house prices.

1 he median stiles prices -'meaning-'half sold for more and half for less was S15L100 in a 10.2 percent increase from the same month a year ago. i he federal Reserve slashed short-term interest rates 11 times last years in an effort to revive the economy. The Fed, citing signs of a recovery, opted last month to keep interest rates 1 Many economists believe the Fed's aggressive credit easing will pave the way for a rebound in the second half of this year. Most economists are. expecting mortgage rates to hover in the 7 percent range lor most of this year: Taxes capital gains down 5.2 percent this Net tarm income mated S16.2 billion in fertilizer costs have tumbled since last spring, when high prompted some farmers to reduce corn crop of 9.9 billion bushels would be 4.1 percent larger than last year's harvest of 9.5 Collins also forecast a small increase in soybean plantings that will lead to a harvest of "near 3 billion bushels." That would compare wi th a record 2.9 billion bushel in 2001, Soybean exports are expected to reach a record 28 million tons, or 1.03 billion bushels, in the current fiscal year, the department said.

By JOE CARROLL Bloomberg News Farmers probably will sow more corn this spring because falling fertilizer prices are cutting planting costs, the government Farmers are forecast to boost corn plantings by 3.6 percent from last spring to 78.5 million acres, which could result in a 9.9 billion-bushel crop, Agriculture Department Chief Economist Keith Collins said during the department's recent annual outlook forum in Arlington, Va. But the bigger corn crop will not mean more money in farmers' pockets. dies, probably will fall to $50.4 billion from a record $59.5 billion last year, Collins predicted, Expanded corn production means "continued depressed prices," said Richard I'eltes, vice president of commodity research at Chicago-based Refco Inc. Corn and soybeans are the nation's top two row crops, valued last year at S19.2 billion and $12.4 billion. 2002 may benefit some filers Wednesday, Feb.

27th March 6th at Holiday Inn, Crystal Lake given by Phil 7:00 p.m. The seminars are offered at no cost or obligation; however, reservations are required. Call 338-2530 today! i -A 'A-. Phil Miller Se-iQj Mice i 'resident AGEdimrds Ina i.srmtETssisais7 Member SIPC GS-222-0502-EWS Serving Mellcnry County Since 1957 120 E. Calhoun St.

Woodstock 815-338-2550 800-323-7048 8 am to 5 pm Sat. 9 am to noon out actually selling and repurchasing them. It is called a "deemed -sale" election and is irrevocable. "What it means is, I can take something I bought in 1993 and treat it as if I had bought it in 200 1 said Jackie Perlman, senior tax research analyst at tax preparer Block Inc. There is a catch.

The 18 percent tax on the gains so far would have to be paid in this year. So, taxpayers ho make the deemed-, sale election would owe taxes on the difference between their basis in the asset and its value on Jan. 1,2001. While gains are reportable, losses are not allowed on a deemed sale. Future gains also would be taxed at 1 8 percent if the asset is not sold before 2006.

less than $27,000 can qualify for the 8 percent rate. More taxpayers probably will be affected by a new 18 percent capital gains rate on investments made in 2001 or later and kept for at least five years. Anyone, regardless of their ther income, will be able to take advantage of it. Most gains on assets kept longer than one ear are taxed at a 20 percent rate. A higher income taxpayer would have to wait until 2006 at the earliest to sell an asset purchased in 2001 to qualify for the 18 percent rate.

It gets more confusing. WTien Congress approved the law authorizing these new lower rates in 1997, it decided to give taxpayers a way to make their pre-2001 investments potentially qualify for the lower 1 8 percent rate with By CUIfLANDlRsON Tne -Associated Press UNCI ON laxp.iv ers with iela-tively modest incomes could take advantage it lis year of a new 8 percent capital gains tax rate. eis will Lave to wait until at least 200 to lake advantage ot another lower rate. Resinning in January 2001, taxpayers 1 win ki' apii il fains tax i ate is 10 percent saw it drop to a percent for assets they have kept lor at least live years. But that tax break is expected to apply to relatively few investors on their 2001 tax returns because income of more than $27,000 for a single taxpayer is taxed at a 1 5 percent rate.

Only those taxpay ers whose income from sources other than the capital gains is Find it here. Pisct it Eikti day. (lousmtils of ntuliTS are Uxkiii riqitf icnp (o buy. sell ruuljincl OiinuimKlx ql di It-mil Ihtnys. CuU Classified S151455-4E00.