The Tampa Tribune from Tampa, Florida • 31

Thursday, January 4, 2001 Send comments and tips through e-mail to: businessfinancetampatrib.Gom ROBERT STEYER, Assistant Business Editor, (813) 259-7641 MICHAEL KERSMARKI, Assistant Business Editor, (813) 259-7853 STEVEN KAYIOR, Senior EditorBusiness, (813) 259-7836 Business fax, (813) 258-8504 IE The Tampa Tribune Interest rate cut drives toclc rally Zj The Nasdaq Composite Index soared out of its slump Wednesday, and set a record gain. The Dow Jones Industrial Average skyrocketed Wednesday, after the Federal Reserve cut a key interest rate one-half point. 2,600 2,500 I Closed rflj I 2616.69 2450 Sees 3243 2,400 1:13 pm 2,300 2,250 Fed 'L. reduces Closed rates at 10945.75 1:13 pmj up 299.6 10,700 NEW YORK The Nasdaq sets a record for points gained and' percentage gained in one day; the Dow climbs 2.8 percent. A Tribune wire report Stocks surged Wednesday after the Federal Reserve cut interest rates.

The half-percentage-point rate cut was larger than anticipated, coming four weeks before the Fed's scheduled meeting on Jan. 30. "The markets needed this, but this was totally unexpected," said Barry Hyman, chief investment strategist for Weatherly Securities. "The swiftness and the size clearly indicates the Fed is concerned about the economy. It is a catalyst and it is a catalyst that is going to stick." After the Fed's announcement about 1:13 p.m., the Dow, which had been modestly lower, soared nearly 380 points in about 15 minutes.

The blue chips maintained most of that gain, advancing 299.60, or 2.8 percent to close at 10,945.75. The Nasdaq, which lost 7 percent of its value on Tuesday, jumped 324.83, or 14.2 percent to end at 2,616.69. The surge gave the Nasdaq its biggest one-day 2:30 1 3:30 12:30 1:30 9:30 10:30 11:30 12:30 1:30 2:30 3:30 ESSEX JAMESTrlbune graphics Sources: Bloomberg News point and percentage gains ever. The Standard Poor's 500-stock index climbed 64.29, or 5 percent, to 1,347.56. The Fed's cut immediately reversed the mood on Wall Street, which had begun 2001 continuing the selling momentum that made 2000 the worst year for the Nasdaq and the worst in nearly two decades for the Dow.

"The market will quickly turn from being excessively negative to optimism," Hyman said. "So much of this market has been negative with people saying, 1 don't ever want to own a tech-stock Still, analysts expect the market's new-found euphoria to ebb and that trading will remain volatile in the coming weeks. Wall Street must still grapple with poor earnings and more signs of a weaker economy. Personal computer makers rose sharply after downward movement for months amid slumping demand. Dell advanced $2.50 to close at $20, and IBM rose $9.81 to $94.63.

Intel gained $3.17 to $34.23. Among Tampa area companies, Intermedia Communications gained $3.11 to close at $11.39, Tech Data Corp. added $4.13 to finish at $29.19 and IMRGlobal advanced $1.03 to $5.97. Even Internet issues, some of the most beaten up in the tech sector, fared better. Yahoo! rose $2.75 to $30.94, and Amazon.com advanced $3.69 to $17.56.

Stock prices particularly those for high-tech and Internet issues had dropped sharply since Labor Day, when it became clear that the slowing economy was going to hurt profits first dur- See RATES, Page 2 Cold snap reminds citrus growers of 1 Ml I UCCjJ 11CCC llini 1 :1 i. is TAMPA Cold weather during i 1 surra F-r ,1 i ku- in citrus industry historian, said the move south was pioneered by a handful of growers including Jack Berry Winston Lawless, Bob Paul and the Duda family. Prompted by central Florida's chilly weather, the growers decided the flatwoods area of southwest Florida provided fer TAMPA BAY AREA Ins, outs at Paradyne Paradyne Networks Inc. on Wednesday announced the hiring of two executives, but said it will cut 20 management positions as part of an ongoing reorganization. The software company, which saw chief executive Andy May resign last month, hired John Koehler as senior vice president of North American field operations and Anita George as vice president of international marketing.

Mutiny exec gets post Tampa Bay Mutiny president and general manager William Manning has been named to the board of directors of the Tampa Bay Sports Commission. FLORIDA IMC closes plants IMC Global Inc. said Wednesday that it will indefinitely shut down phosphate fertilizer production at all of its Louisiana facilities beginning in mid-January. The move, based on soft demand and high prices for raw materials, does not affect IMC Phosphates extensive operations in Florida. IMC also said fourth-quarter earnings from continuing operations would be about 12 cents a share, down from 20 cents forecast Funeral company settles A funeral home and cemetery company agreed Wednesday to pay $500,000 to settle allegations that it used deceptive sales practices and may have cheated Florida customers while it was in financial trouble.

Prime Succession Partners also agreed to reimburse some Florida customers under the agreement with the state attorney general's office. NATION 4 Bumpy ride for Delta Delta Air Lines said it canceled more than 3,500 flights in December due to crew unavailability, including more than 1,000 flights over the New Year's holiday. Many pilots are refusing overtime during contract talks. Penney shuffles execs Four top executives of J.C. Penney Co.

Inc. retired during the weekend and two longtime managers at the troubled retailer have been promoted. Robert Cavanaugh, chief financial officer of Pennes Eckerd drugstore chain, was named executive vice president and CFO of the parent company. Stephen Raish was named executive vice president and chief information officer. Builders slow down Construction spending fell by 0.6 percent in November, the Commerce Department said.

It was the weakest performance in four months, reflecting a sharp drop in big government projects and home improvements. Suit targets Microsoft Seven current and former Microsoft Corp. employees filed a discrimination suit against the software maker Wednesday, alleging racial bias. The suit, filed in U.S. District Court in Washington, asks for at least $5 billion by far the most sought for any class-action suit One of the plaintiffs had previously sued the company for discrimination but the suit has been amended to include six more employees and to attempt class-action status that could add hundreds more.

CORRECTION lAyersSierra Insurance Associates LLP, which has been acquired by Brown Brown employed 22 people who now work for Brown Brown. Anincorrect number was published in Wednesday's paper. STOCK QUOTES AND UPDATES Get updated quotes, and track your portfolio and the market around the clock kt www.tbo.com CHANNEL 8 BUSINESS NEWS Watch News Channel 8 Today at 6 Tuesday-Friday, for The Tampa Tribune Business Finance report A Tribune staff, wire report An orange becomes a mass of Icicles after a grove was sprayed with water to protect young trees. the 1980s destroyed almost 300,000 acres of citrus trees, forcing growers to move south. By ANDREW MEADOWS of The Tampa Tribune Citrus industry veterans still remember the rows upon rows of orange trees that used to blanket the hills of central Florida, north of Orlando.

Driving along two-lane state roads in Marion and Lake counties, one could get mesmerized by the constant repetition. "It was citrus trees as far as you could see, it really was beautiful," said Tom Spreen, a citrus economist with the University of Florida. "It certainly isn't that way anymore." Florida's recent cold snap is a potent reminder of the frigid weather that forced a large chunk of the industry to migrate from central to south Florida in the 1980s, shifting hundreds of millions of dollars of production to Hendry, Collier and Lee counties. Faced with a spate of devastating freezes which destroyed almost 300,000 acres, the citrus industry had had enough. "The move really is a testament to the resilience of the citrus industry," said Tommy Duda, division vice president for A Duda Sons, one of the state's largest citrus growers.

"We survived and our yields are better now." John Attaway, an author and MAURICE CAPOBIANCOWFLA-TV photo The Busch Gardens mascots have gotten their Florida Fun Cards already and were glad to show them at the gate Wednesday. Other Florida residents can get their park passes through April 6. Horidians can again pay for day, stay the year at Busch Gardens TAMPA Park officials are expanding the rm annual pass program and making it available two months earlier. tile land for oranges and grapefruit But the move wasn't simply a matter of packing up and planting trees. Several technological innovations allowed growers to farm in the wet area, previously thought to be a poor environment for citrus.

For example, using lasers to shape land gave fanners a better way to control drainage, a key process in an area with a very high water table. See FREEZE, Page 4 I 1 yitrr I ltlr TO AOVCNTItaci 3 By GARY HABER of The Tampa Tribune The Florida Fun Card is back. Busch Gardens Tampa Bay announced Wednesday the return of the program that gives Florida residents a year's worth of visits to either Busch Gardens or SeaWorld Orlando for the price of a single day's admission. The price is $47.95 plus tax for adults and seniors. For children ages 3 to 9, the price is $38.95 plus tax.

Both tickets are up by $2 from last year. The promotion was such a hit upon its introduction in March, it propelled both Anheuser-Busch theme parks to sharply higher attendance numbers. Busch Gardens saw a record 5 million visitors, a 28 percent jump from 1999, according to Office Depot to cut jobs, close stores nationwide Amusement Business magazine. SeaWorld's at tendance increased 11 percent, to 5.2 million visitors, the magazine found. "It was a phenomenal success," said Tun O'Brien, parks and attractions editor for Amusement Business.

"I would bet they could raise attendance by another 1 million this year with the Fun Card and a new attraction," the Rhino Rally, Details: Good for unlimited admission to either Busch Gardens Tampa Bay or SeaWorld Orlando from now through Dec. 26. Not valid April 13-15. Limited to Florida residents only. Cost: $47.95 for adults and seniors; $38.95 for children 3 to 9 years old.

Other options: Florida residents can purchase a combination ticket good for unlimited admission to both Busch Gardens and SeaWorld. $95.90 for adults and seniors, and $77.90 for children ages 3 to 9. Also available for Florida residents is a combination ticket for unlimited admission to both Busch Gardens and Adventure Island for $73.90 for adults and seniors and $64.90 for children. Availability: Available now; must be purchased by April 6. Can be purchased at Busch Gardens, SeaWorld, participating American Automobile Association and Huntington Bank branches in Florida, by phone toll-free at 1-866-353-8622 or online at www.buscrigardens.com or www.seaworld.com For Information: Call toll-free 1-866-353-8622 or visit www.buschgardens.com or www.seaworid.com which opens in May.

DELRAY BEACH The company built too many stores too quickly, and now faces saturation. A Bloomberg News report Office Depot the biggest U.S. office-supply retailer, said it plans to close 70 stores in North America and slash 1,590 jobs. It will take a fourth-quarter pretax charge of as much as $300 million as it closes stores in 18 states and exits markets in Cleveland and Columbus, Ohio; Phoenix; and Boston. No Tampa Bay area stores are affected.

Office Depot also will invest $110 million to revamp the chain and to install inventory-tracking systems at warehouses. New Chief Executive Bruce Nelson is trying to boost profit by scaling back expansion plans, focusing on top-selling products and building smaller stores. The company and its rivals in the $12 billion office-supply industry OfficeMax Inc. and Staples Inc. raced to add more stores and eventually faced saturation in many markets, analysts said.

"The whole idea is just to cut off some of the pieces that aren't working for them and concentrate on improving the return on investment," Buckingham Research Group analyst Daniel Binder said. "It's a competitive See OFFICE DEPOT, Page 4 But the Fun Cards may have proved too popular for some visitors. Florida residents flooded Busch Gardens to purchase their cards before the deadline, causing long lines at ticket booths and sporadic closings of the main parking area. Busch Gardens officials are promising things will be smoother this year. "We learned a lot from the success of last year's Fun Card campaign," said Gerard Hoeppner, Busch Gardens' director of public relations.

See FUN CARDS, Page 4 i.