Honolulu Star-Bulletin from Honolulu, Hawaii • 21

Honolulu Star-Bulletin Section STARTS ON C14 CALL 524-7C27 LEGALS PUBLIC NOTICES C9 Business editor: Alan Vaughn 529-4792 avaughnstarbulletin.com TUESDAY, OCTOBER 2 6, 2 0 0 4 5 2 9 -4 7 9 2 BUSINESSSTARBULLETIN.COM dfeirts bank Merger earn 3rd-quarter net: $7.7 million Year-earlier r.rt: $83 million The parent of Central Pacific Bank posted earnings of $7.7 million, or 42 cents a share, compared with $8.3 million, or 51 cents a share, a year ago when the two financial institutions were independent companies. Central Pacific and CB Banc-shares Inc. closed the merger of the two holding companies on Sept. 15 and CB Bancshares' results are included in Central Pacific's earning as of that date. The banks are expected to merge in the second quarter.

Excluding merger-related expenses for last quarter and the year-ago period, Central Pacific's said Clint Arnoldus, chief executive officer of Central Pacific. "We believe the completion of our merger with CB Bancshares provides the company with numerous revenue and expense synergy opportunities." Operating expenses soared 54.6 percent in the quarter to $22.1 million from $14.3 million a year ago due to the merger. Salaries and employee benefits rose 48.3 percent to $11.3 million from $7.6 million and retention bonuses paid to certain Central Pacific executives totaled $2 million. Other operating ex- Please see CPF, C3 Costs related to buying City Bank prompt a 7.2 dip in net income at Central Pacific Financial By Dave Segal dsegalstarbulletin.com Central Pacific Financial beginning a new chapter as a bigger and more diversified bank, said today that net income fell 7.2 percent in the third quarter as merger and labor costs spiked in connection with the acquisition of City Bank's parent. net income would have risen 19.6 percent to $10.4 million, or 57 cents a share, from $8.7 million, or 53 cents a share.

"The company's strong third-quarter results were driven by organic (internal) loan and deposit growth, an expanding net interest margin and sound asset quality," f0 i i I I1 IN THE HEADLINES Citigroup apologizes in Japan C2 New Marsh CEO starts reforms C6 Apple's iPod riding high, for now C6 Stocks. C4 Mutual funds. C5 Hawaii mutual funds. C2 BUSINESS BRIEFS HAWAII Hawaiian Airlines adds Vegas flight Hawaiian Airlines said it will add a second dally nonstop flight between Las Vegas and Honolulu, starting next year. Hawaiian will introduce the additional service with five flights weekly beginning April 4, 2005, before increasing t.o daily service starting May 1, 2005.

The new flight will cater to Las Vegas regulars and westbound travelers coming from the U.S. East. Travel between Las Vegas and Sydney, Australia, also will be enhanced with same-day connections available in Honolulu in both directions, eliminating overnight layovers. NATION Largest cell phone company OK'd WASHINGTON The Federal Communications Commission gave its approval today to Cingular Wireless LLC's $41 billion acquisition of Wireless Services completing the federal regulatory blessing necessary for creation of the country's largest cell phone company- The move follows yesterday's announcement that Justice Department antitrust regulators approved the deal. Both agencies attached conditions to ensure there is adequate competition in different markets.

Cingular is a joint venture between BellSouth Corp. and SBC Communications Inc. The merger would give Atlanta-based Cingular about 47.6 million subscribers. That would top Verizon Wireless, the current market leader with 40.4 million customers as of midyear, while paring the number of national cell phone providers to five. Profits rise for Ala Moana owner General Growth Properties owner of Ala Moana Center and Victoria Ward Centers, said third-quarter earnings rose 4.1 percent on higher store sales and increased rents.

Net income increased to $64 million, or 29 cents a share, from $61.4 million, or 28 cents, a year earlier, the Chicago-based company said in a statement. Revenue climbed 22 percent to $397.5 million. KB Toys will close 238 stores PITTSFIELD, Mass. KB Toys the largest U.S. mall-based toy retailer, said it will close as many as 238 stores by Jan.

3 1 as part of its bankruptcy reorganization. KB said the closings probably will be the last before it emerges from bankruptcy protection early next year. The company will continue to operate about 600 other stores, it said in the statement. No Hawaii stories were listed on the company's closure list, The company, with about $1.5 billion in annual sales, filed for bankruptcy protection in U.S. Bankruptcy Court in Wilmington, in January, listing $507 million in assets and $461 million in debts, after poor holiday sales and increased competition from discounters including Wal-Mart Stores Inc.

SEC may loosen 'quiet period' rule WASHINGTON Federal regulators proposed today to loosen restrictions on executives' comments in the weeks before their company goes public in a stock sale, a move that could bring the first significant changes in 70 years to a traditional fixture known as the quiet period. At the same meeting, the Securities and Exchange Commission voted in a split decision to mandate new oversight for hedge funds largely unregulated investment pools traditionally for the wealthy that have become popular with small investors in recent years. The high-risk, potentially high-return funds have an estimated $750 billion to $1 trillion in assets and are growing. Oversight is needed to head off potential blowups that could hurt ordinary investors, SEC officials say. ASSOCIATED PRESS April Boomhower stretches to watch as the cost of filling her vehicle passes the $40 mark in Encinitas, Calif.

U.S. consumers are expected to shell out another $40 billion this year just to heat their homes and fuel their cars and trucks. There's almost no room at the inn Isle hotel occupancy in the first 9 months was the highest on record By Allison Schaefers aschaefersstarbulletin.com Pent-up demand for Hawaii, as well as a resurgence In the state's convention, Japan and Canadian visitor markets, boosted hotel occupancy to the highest nine-month level on record and pushed room revenue to $2.09 billion, the second-highest amount ever during that period. While September is traditionally the start of Hawaii's softer tourist season, increased visitor demand from all sectors has helped bridge the gaps, said Frank Haas, director of marketing for the Hawaii Tourism Authority. "Our traditional valleys have become shallower dips," said Haas, attributing the fall's strong performance to the return of the Japan market, and increased demand for Hawaii as a destination from other sectors.

Hawaii's unusually strong summer also could have contributed to September's boost, he said. "Summer was so strong that it was difficult to find space and many people booked fall as an alternative," he said. Indicators for the accommodations industry show that financial performance at Hawaii's hotels is on the upswing. A boost in visitor arrivals to the islands lifted statewide occupancy by 4.7 percentage points to 74.9 percent in September, according to the latest Hawaii Hotel Flash Report released Please see Occupancy, C3 Sept. occupancy rates TT "ST una Oil prices, demand rise across the globe Worldwide spending on oil is expected to grow this year by about $295 billion, or 27 percent, from 2003.

Consumers and businesses across the globe are paying substantially more for gasoline, heating oil, diesel and other products derived from crude as demand and prices surge. Top world oil producers (million barrels per day) 1. Saudi Arabia Top world oil consumers (million barrels per day) 1. United States 2. China 6.29 3.

Japan 5.45 33 2. Russia 3. United States SHI 4.03 4. Iran Average daily production for the first half of 2004 2004 estimate forecast 4. Germany 2 2.68 5.

Russia 2.65 6. India gj 2.35 7. Canada 2.22 8. Brazil 2-20 9. South Korea 21 7 10.

France 2.07 5. Mexico E3 3-87 6. China Q3.58 7. Norway 03.30 8. Canada Q3.15 9.

Venezuela 2 84 10. United Arab 2.80 Emirates Thirst for expensive gas is raising billions of dollars for oil-producing nations By Brad Foss Associated Press While Americans wince as they fill up their SUVs with $2-a-gaIIon gasoline, market forces are smiling on the Saudi Arabias and Exxon Mo-bils of the world. A transfer of wealth of historic proportions is taking place as worldwide spending on oil is expected to grow this year by about $295 billion, or 27 percent, compared with 2003, according to government data. Consumers and businesses are coughing up more money for gasoline, jet fuel and other products made from oil as demand and prices surge. While the corresponding windfall of profits for oil exporting nations and petroleum companies is sapping strength from the international economic recovery, it's not causing the kind of financial shock that followed the oil crises of the 1970s.

Still, experts warn that the market constraints underlying high and volatile energy prices suggest that higher oil prices could be here to stay. "There's not a consensus out ASSOCIATED PRESS SOURCE: Department of Energy; International Energy Agency tential supply disruptions in Change from July 2003 Percent of rooms occupied there, but the question is being asked more now than it has been at any time in the last 20 years," said Jim Burkhard, director of global oil at Cambridge Energy Research Associates in Cambridge, Mass. i Rising oil costs are linked as much to America's apparent drive-at-any-price car culture and China's raging industrial expansion as they are to the world's unusually thin supply cushion, a condition that has magnified anxieties about po- Oahu 78.3 5.7A Maui 73.5 9.5A Kauai 76.3 Molokai 67.6 11.7,. Big Island 65.0 14.6A Statewide 74.9 6.7A Venezuela, Russia and Nigeria. With oil futures marching to the $55 a barrel level this month up from about $30 a year ago the list of winners is topped by'Saudi Arabia, Russia, Norway, Iran, Venezuela and other leading exporting nations.

Saudi Arabia alone supplies about 12 percent of the world's daily oil fix. Please see Crude, C3 Source: Hospitality Advisors LLC STAR-BULLETIN Kids' retailer diving into Hawaii business scene 7 Star-Bulletin staff and news services HILE some companies expand to the islands by gingerly dipping a vv toe into Hawaii's eco music, said Mike Kelly, vice president and general manager. Also, Salem Media of Hawaii Inc. has applied to transfer its licenses for KHNR-AM 650 and KHCM-AM 940 to Cox Radio which owns KPHW. In a deal announced earlier this year, California-based Salem is swapping the two Honolulu AM stations for KGMZ-FM 107.9, operated by Atlanta-based Cox Radio Inc.

under a marketing agreement with its owner, Honolulu Broadcasting which is based in Florida. Prices at the pump Self-service cash price in dollars per gallon. Stations, except Lex Brodie's on Queen Street, are in the general area bordered by King, McCully and Beretania streets, and Ward Avenue. The Waikele Premium Outlets' Web site indicates that the Children's Place outlet store is now set to open by Nov. 14, 'the same day the company plans to open its Aia Moana retail store, which will be on the upper level of the former JC Penney space.

Radioactivity The newly rebranded radio station at 104.3 on Honolulu's FM dial is sporting new call letters, KPHW, to reflect its new slogan, "Power 104-point-3." The station that signed on as "Extreme Radio" KXME in 1997, won approval for its new call letters from the Federal Communications Commission last week. The station's new format, which will be hip-hop and rhythm and blues, will no longer include pop THEBUZZ Erika Engle nomic waters, the New Jersey-based retailer Children's Place is jumping in headlong. The publicly traded company earlier announced plans to open a store at Waikele Premium Outlets this coming Saturday. Now the retailer says it also will open a Children's Place store at Ala Moa'na Center and it will purchase and operate the 313 North American locations of the Disney Store, including the one at Ala Moana. "We have signed a definitive agreement to acquire the Disney Store chain from the Walt Disney Co.

We will run and operate them as Disney Stores not as Children's Place stores," said Heather Regular Midgrade Premium Unleaded Unleaded Unleaded Aloha $2.309 $2.389 $2.489 LexBrodie $2.259 $2.339 $2.419 Chevron $2.329 $2.429 $2.529 Tesoro $2.329 $2.419 $2.519 Shell $2329 $2.419 $2.539 U.S. average price for regular unleaded gasoline $2.04 Erika Engle is a reporter with the Star-Bulletin. Call 5294302, fax 5294750 or write to Erika Engle, Honolulu Star-Bulletin, 500 Ala Moana, No. 7-210, Honolulu 96813. She can also be reached at: eenglestarbulletin.com Anthony, director of investor relations for the Children's Place.

The Children's Place sells clothing and accessories for children from newborn to age 10, while the Disney Store carries stuff for kids and grown-ups who are kids at heart. 4 'Limited service provided Source: AAA-Hawaii STAR-BULLETIN.