The Montgomery Advertiser from Montgomery, Alabama • 16

fllonttjoracnj ftducrttscr Mary Irby-Jones StateBusiness editor Wednesday May 29, 2002 Phone (334) 240-0120 Fax (334) 261-1521 200 Washington Ave. Montgomery AL 36104 Bottomline tAbb plant mm 'Ford to buDd engine a v. Shift at its Sharonville, Ohio, transmission plant outside Cincinnati. The new powertrain will produce 325 horsepower at 3,300 revolutions per minute and 550 foot-pounds of torque at 2,000 rpm for increased load and towing capacity. Selling diesel to the North American market will be a challenge because there are negative precon- middle of the 2003 model year for the F-Series Super Duty pickup and Excursion sport utility vehicle.

The engine, to be built by the International Engine Group of Navistar International, will offer up to 10 percent better fuel economy and 20 percent lower emissions than current diesel engines, said Dave Szczu-pak, vice president of powertrain operations. pulls in T- jr peondln ceptions about the fuel, and gasoline is still relatively cheap, Szczupak said. "When drivers in North America think of diesel, they still think of loud trucks belching black smoke, but today's diesels are leaner, cleaner and quieter," he said. Ford also is looking to increase quality through its flexible powertrain manufacturing system. CONSUMER CONFIDENCE Here is a look at the Consumer Confidence Index from a survey of 5,000 U.S.

households. Seasonally adjusted, 1985100 140- Current 109.8 One month ago 108.5 130-One year ago 116.1 JASONDJF MAM 2001 2002 Source: The Conference Board 120- 1 80 eDiGjjes nap The Associated Press DEARBORN, Mich. Ford Motor Co. unveiled a new diesel powertrain Tuesday and detailed a new flexible engine manufacturing system it says is helping cut costs while improving efficiency and quality. The 6.0-liter Power Stroke V-8 diesel engine will be introduced in the Jubilee By Kelli M.

Dugan Montgomery Advertiser Thomas Craig's wallet slid into his back pocket a little easier Monday morning after he dropped more than $150 at Jubilee City-Fest over Memorial Day weekend. But the husband and father of three said the family-oriented three-day festival was worth every penny. "With three kids, it's hard to find something everybody wants to do at the same time. Jubilee is the perfect family weekend," Craig said. Safety and quality entertainment were Craig's primary concerns for the weekend, and he said organizers made certain families like his felt neither threatened nor bored.

"This was our third Jubilee, and there wasn't a single minute even after dark when we felt like it was inappropriate for our kids to be there. Even with the ticket prices going up this year, it was worth the money," he said. With three days of constant spending by both local residents and out-of-town visitors, Jubilee CityFest Executive Director Marianne McLeod said estimating the economic impact of the festival is tricky. "For one thing, the (participation) numbers aren't limited to just Jubilee because they include the runs, the symphony and the NCAA tournament as weE," she said. The most recent analysis of festival spending is based on figures from 1997, when attendance was estimated at 150,000 and the economic impact totaled about $3.5 million.

Based on that report, McLeod said Jubilee CityFest overnight guests spent $96.23 a day, while those who visited family or friends spent $58.20 a day. Local residents shelled out an average of only $21.14 per day that year, she said. Ticket prices aside, Montgomery resident Jennifer Kirsch said she fell right in the average spending bracket, dropping $20 on snacks and drinks, but Craig said he took into account gas money from Prattville and two family dinners out Colonial Dow JonesAP WASHINGTON Bank holding company Colonial Bancgroup Inc. said Tuesday it would buy Palm Beach National Holding Co. for about $105.5 million in stock.

Colonial Bancgroup, based in Montgomery, owns also will be built will build a new five-speed automatic transmission that will be part of the diesel engine's powertrain. The transmission, called TorqShift, will be standard on vehicles equipped with the Power Stroke engine, Szczupak said. Ford will build the Torq dollars i- Mickey Welsh Advertiser check out what the offer. billing as a Southeastern attraction, drawing revelers from as far away as New York this year. "Jubilee is definitely a regional tourism event, but our numbers are increasing from outside the Southeast as well," she said.

Sales and lodging tax figures for the weekend were not available, but McLeod said the information would be analyzed as rapidly as it is obtained. shares in the transaction and intends to buy back up to 2 million shares in the open market. Colonial Bancgroup said it expects the acquisition will result in annual cost savings of between $3.5 million and $4.5 million, when fully implemented by the second quarter of 2003. Reports show consumer confidence also increases in April By Hope Yen The Associated Press NEW YORK Consumer confidence edged higher in May, following gains in spending and income the previous month, according to reports released Tuesday. But consumers' outlook for the rest of the year worsened, which will likely temper the economic recovery, analysts said.

The Conference Board said Tuesday that its consumer confidence index rose to 109.8 this month from a revised 108.5 in April. While the number of consumers rating the present economy as good increased, their outlook on business conditions and jobs for the next six months soured slightly, according to the New York-based group. "The numbers don't point to any risk that the recovery is going to peter out. They do point to a rate of growth in the economy that has slowed," said Mark Vitner, an economist at Wachovia Securities. But the weaker-than-ex-pected numbers sent stocks tumbling Tuesday as investors grew concerned that the economic recovery was slowing.

Light trading, the result of many investors extending their Memorial Day vacations, also made the mar- ft Ov ,1 i MARKETS Dow Jones New York Stock Exchange Gainers 1,391 Losers 1,774 Nasdaq Gainers 1,578 9,981.58 Nasdaq 1,652.17 500 Losers 1,896 (Complete market report 7-8B 1,074.55 montgomeryadvertiser.com Search stock listings for a Quick Quote BRIEFLY Alfa Corp. approves 2-for-1 stock split Alfa Corp. announced recently that its board has increased the quarterly cash dividend to $0.15 per share, payable on May 31 to shareholders of record on May 15, representing an increase of 3.4 percent from the previous rate and marking the 28th consecutive year in which cash dividends have increased. Alfa also announced that its board of directors has approved a two-for-one stock split to be effected as a 100 percent stock dividend. The new shares will be distributed on June 17 to stockholders of record on June 3.

Alfa Corp. has roughly 39.5 million common shares outstanding. "It is gratifying that the company's continued growth and its strong capital position have enabled the board to declare this split and increase the cash dividend rate again," said Jerry A. Newby, Alfa's chairman, president and chief executive officer. "We are confident that the additional shares outstanding will benefit shareholders by increasing the trading activity, visibility and liquidity of our shares." Kmart restructuring cautiously, CEO says TROY, Mich.

Kmart president and chief operating officer took a cautious stance Tuesday, saying he is hopeful the troubled retailer can use bankruptcy protection to rebuild same-store sales, but that its restructuring plan remains uncertain. Julian Day, who joined Kmart in March, said officials want to be thoughtful about plotting the ailing retailer's future, despite pressure to reveal a restructuring plan. "Until you gain a really good, solid understanding of how good you can be in what you have right now, it's very difficult and potentially dangerous to reach conclusions about what you ought to do different," Day said Tuesday. Kmart filed for Chapter 11 bankruptcy protection Jan. 22.

DATEBOOK Today The Council of Small Business Enterprises Marketing and Communications Track will offer "Marketing Your Business on the Internet" from 8:30 a.m. to 11:30 a.m. today at the Montgomery Area Chamber of Commerce Small Business Incubator, 600 S. Court St. For information, call 832-4790.

Thursday Business After Hours, hosted by Alltel Communications, will be 5 p.m. to 7 p.m. Thursday at 6925 Halcyon Park Drive. Coming Up The Montgomery Minority Business Development Center is accepting applications until today for its free Youth Entrepreneur Summer Enrichment program. The program, offered on the Trenholm campus Monday through July 25, will accept 18 students between the ages of 15 and 19.

For information, call 420-4239. The Council of Small Business Enterprises Marketing and Communications Track will offer "When a Small Business Should Advertise" from 8:30 a.m. to 1 1 :30 a.m. June 12 at the Small Business Incubator, 600 S. Court St.

For information, call 832-4790. montgomeryadvertiser.com Datebook archives online Staff and wire reports Page edited and designed by Faye Davis The new diesel engine in Indianapolis The engine, to be built at Navistar plants in Hunts-ville and Indianapolis, will be "substantially quieter," Szczupak said during a briefing with reporters at the automaker's Advanced Engineering Center in Dearborn. Ford also announced it tourist she said, noting preliminary head counts could be available by Monday. With an estimated 160,000 revelers on record for Jubilee CityFest 2001, McLeod said this year's figures might be stronger but are not expected to exceed the record-setting 200,000 participants of 2000. While local residents remain the festival's focal point, McLeod said Jubilee is rapidly outgrowing its over-the-counter Bulletin Board.

Shares of Colonial Bancgroup closed Tuesday at $15.25 on the New York Stock Exchange, down 24 cents, or 1.6 percent. In a regulatory filing, Colonial Bancgroup said it expects to issue between 5 million and 6 million of its their own legs off to get out of the market. Classic capitulation is high-volume panic selling, such as the 1987 stock market crash. But investors also can be worn down by day after day of losses. "The market could grind away slowly on the downside, like water torture," says Bradlee Perry, former chairman at David L.

Babson Co. "At some point someone screams and says, But how do you distinguish capitulation from run-of-the-mill selling? One measure is investor sentiment, which often turns most negative at market bottoms. Sentiment mea AP ket susceptible to extreme losses or gains. Still, consumer spending remains strong, the report states. The Commerce De--partment reported Tuesday.

that Americans increased their spending by 0.5 per- cent in April, on top of a 0.3 percent gain the month be--fore. Those gains came as incomes wages, interest and govern-1 ment benefits rose 0.3 percent in April. In a third report, sales of v. existing homes shot up to a seasonally adjusted annual rate of 5.79 million in April, a 7 percent increase over March's level, according to the National Association of Realtors. People attending Jubilee CityFest this past weekend Montgomery Visitors Center in Union Station has to DYNEGY SHAKE-UP Board accepts chairmanCEO's resignation away from the festivities when calculating his total.

"I still don't think it's a bad deal," he said. And as the Capital City's 14th annual music festival concluded, McLeod said the turnout appeared to exceed figures for 2001. "It's just too early to tell exactly how many people turned out, but the numbers look good, and we're likely ahead of last year," to buy Palm Beach bank down as much as 88 percent in a year, Watson stepped down as both chief executive officer and chairman of. the board. He will be re-j placed on an interim basis by two board members, according to the which tried to portray the move as unrelated to the company's troubles.

"This is not about scan-; dal," said Steve Bergstrom, Dynegy president and operating officer. "This is about two guys that are going to come in and help me focus on what I enjoy and do best: make this oper- ation hum." Watson was the second, CEO of an energy trading' company to resign in less than a week. The Associated Press Colonial Bank, which operates more than 263 branches in six states. Palm Beach National is based in Palm Beach, and has eight offices in the area. Colonial Bancgroup is offering $50 in stock for each share of Palm Beach National, which trades on the HOUSTON Its stock spiraling amid questions about possible sham trades, Dynegy Inc.

announced the resignation of its chief executive Tuesday in yet another top-level shake-up of an energy trading company. Chuck Watson, a co-founder of Dynegy, became the latest casualty of turmoil that Watson has spread through the industry since the Enron Corp. scandal broke last fall. He led an abortive attempt to buy Enron as it was collapsing. With his company's stock yanked $463 million from tech funds in March and $687 million in February, says Lipper.

Most importantly, many of the tech stars of the bull market, such as JDS Uniphase, Worldcom and Lucent, are selling for less than $5 a share. And some are gone entirely. "Most of the radioactive stuff has largely been obliterated," says Paul Wick, manager of Seligman Science Communications fund. If you're thinking of wading in to technology now, there's no big rush. Even if technology has reached rock bottom, the rebound could be slow and scary.

Tech stocks' rebound not expected to be smooth 'Ml HMPVI.Mli. Munition I iin i "Some big issues con- -fronting technology are for real," Wick says. "The PC markets are mature, and S3 telecom is going to be a mess for a good bit longer. 3 Until we see a new killer application, the industry is not going to be as exciting as it was." It could be a long time before tech returns to the Emerald City. "Most of these stocks are never going back to their former highs," Lar- ry Babin, managing director of the Victory funds, says.

John Waggoner is a columnist with USA TODAY. E-mail him at www. usa today. com or waggoner' u- satoday.com. fter more than two years of pummeling, the question isn whether technology stocks are merely dead: It's whether they are most sincerely dead.

Oddly enough, that would be a sign that technology stocks have finally returned to sensible Kansas from Oz. New rallies often begin after capitulation, the point when all hope for future gains are crushed under a houseful of pessimism. No one indicator writes "capitulation" in the sky, and trying to pinpoint the market's exact bottom is a fool's game. But the steady exit of individual investors, mutu- surements can be nonscien-tific a way of reading psychological tea leaves. Some analysts take a more scientific approach and survey money managers about the market as a whole and they show no signs of capitulation.

And unfortunately, there's no such survey just for tech stocks. One good indication is how much money is flowing in or out of technology funds. In February 2000, the peak of tech giddiness, investors flooded technology funds with $12.7 billion. Now investors feel the same way about tech funds that wicked witches feel about water parks. Investors John Waggoner ON INVESTING al fund managers, and hedge fund managers from technology could signal that the final washout phase in technology is at hand.

Capitulation is a war term, meaning "I give up." When investors capitulate, they're willing to gnaw.