The Tampa Tribune from Tampa, Florida • 42

8 MONEYSENSE THURSDAY, AUGUST 7. 2003 THE TAMPA TRIBUNE TBO.Com ioroorafe Profits Stacks More Evidence Against MCI in Momentum, Gd the Defense Department, Army and Navy. alleged improper routing was occurring weekly, and sometimes daily. MCI insisted it has not placed sensitive government calls at risk. "The truth is secure government traffic travels over MCI's bankruptcy court's approval of its record $750 million settlement with federal regulators.

Judge Arthur Gonzalez's decision Wednesday was the last of two required court approvals for the settlement. In its latest filing, told Gonzalez the calls diverted by MCI included some placed by network via a dedicated connection and encryption," MCI spokesman Peter Lucht said. "National security has not been compromised." Telecommunications analysts have said simply diverting calls to Canada would not necessarily have made them more vulnerable to eavesdropping. 'If UDTimiSI Proposed Street Closing Runs Into A Roadblock caution. The reduced size of charges and asset write-offs in the latest period had a significant impact.

VeriSign an Internet-services company, last year took more than $4.7 billion in charges and write-offs mostly related to intangible assets obtained through acquisitions. That made this year's $143 million net loss look puny in comparison. Tyco International Ltd. reported net income of $566 million in the latest quarter, a sharp swing from last year's $2.6 billion loss, which included nearly $1 billion in charges related to restructuring and a write-off of goodwill, in addition to losses from the conglomerate's former CIT finance unit. Sectors' Gains Vary Moreover, the second-quarter earnings turnaround is not yet broad-based.

Many important sectors, such as pharmaceuticals, restaurants and autos, reported net income declines from a year $70 million project to widen 40th Street from Fowler Avenue to Hillsborough Avenue. During construction, Busch Gardens has said, it plans to build tunnels under McKinley Drive so park visitors and trams never have to cross the busy street. The tunnels are part of Busch Gardens' plans to upgrade its parking lot and park entrance. Mark Rose, an engineer with Busch Gardens, has said all of the plans have been designed without the road closure at Linebaugh Avenue. Rose has said the theme park has not assumed it will get the road closure.

A staff report It is much more difficult today to put in something that breaks through, where you are going to get huge attendance. It's a much more mature industry. QHow is Busch Gardens Tampa Bay different from other Busch Entertainment operations? A Every park is different. At Williamsburg, for example, there were fewer international visitors and much more of a drive market. Here we are open year-round and have one of the greatest ani Hospitals contend that could leave them liable if the doctor doesn't come up with the money and could increase hospitals' malpractice insurance.

Doctors contend that to obtain a letter of credit or put money in an escrow account, they may have to pledge assets, such as their homes, that normally would be protected if they lose a lawsuit. Alden Cockburn, a Tampa physician who helped organize the protest, said he has not had a patient complain about the protest, though patients have said they thought a cap of $250,000 was too low. "But people support doctors," Cockburn said. "Most people think doctors are out for their best interests." Yet the protest has left some The Associated Press NEW YORK Intensifying its claim that MCI has compromised national security, Corp. said Wednesday it had new evidence the carrier im-.

properly routed calls placed by the U.S. military through Canada. Meanwhile, MCI hailed a BUSCH GARDENS Continued From Page 1 But it's no secret that the industry is more competitive than ever, and Brown's tenure comes during a time of significant change when parks must take steps to overcome the inevitable aging of infrastructure and visitor familiarity that accompanies decades of business. Brown, 48, whose experience includes heading Busch's Tampa water park, Adventure Island, as well as a stint as general manager of Busch Gardens Williamsburg discussed his return to Busch Gardens in an interview with The Tampa Tribune. Responses have been edited for brevity.

QHave you stayed in touch with Busch Gardens through the years? A I visited periodically, but coming for a day or two in meetings, you don't get into the day-to-day details of what's driving the business and culture. QHow are you reacquaint-ing yourself? A I got back to basics. I spend time in departments, just kind of shadowing managers, watching how they make deci- sions when attendance is up or down to get an understanding of the culture of each department. It might take me six months to a year before I have a full understanding of the operation. DOCTORS' PROTEST Continued From Page 1 three weeks in advance.

"It was an inconvenience," Conklin said, "but I understood why." He sees lawyers' commercials on television and agrees that too many lawsuits are filed against doctors. But he has mixed feelings about a cap of $250,000 for "pain and suffering," or non-economic damages, in malpractice awards. "It depends on whether I'm the one with the pain and suffering," Conklin said. CHANNEL DISTRICT Continued From Page 1 "We're very excited to provide space for the arts community there," Stoltenberg said. Stoltenberg formerly worked for the developer of 55 West, a 30-story condominium building in downtown Orlando.

The condominiums are being built on The Esplanade. The Channel District project could include a seven-story building, which is taller than the 60-foot zoning limit in the area. The property backs up to the Kennedy Boulevard viaduct, slated for removal by the Tampa-Hillsborough County Expressway Authority as part of the Meridian Street Gateway project. Bill Lang, whose industrial property at 1 2 1 1 E. Madison St.

is included in the parcel, operated Lang Motors there before retiring. He leases his building to Marine Metalworks and Anchor Sandblasting. "It was perfect for our trucks and trailers," Lang said. "But times change. People want to live here now." EARNINGS REPORTS POINTTO RECOVERY By ION E.

HILSENRATH The Wall Street Journal It's been a long time coming, but the growth in corporate profits appears to be picking up momentum. Net income rose 63 percent in the second quarter among companies tracked by Dow Jones Co. that had reported earnings as of Friday. At present levels, net income is approaching historic highs and falls just short of the $122.9 billion recorded when the economy was still booming during the second quarter of 2000. The profit improvement, if sustained in coming months, could contribute to the stronger economic recovery many economists are predicting.

Still, some executives, in talking about their earnings progress, remained cautious in conference calls with investors in recent weeks. "I don't need to remind investors that second-half economic recoveries were expected back in 2001 and again in 2002," John Joyce, IBM's chief financial officer, said in mid-July after the company beat analysts' expectations with its earnings report. "While some may argue that it's more likely this year, we're going to take a very pragmatic view." Dow Jones, which publishes The Wall Street Journal, tracks more than 1,500 companies in its US Total Market Index. Of these, 1,251 companies had reported earnings for the second quarter as of Friday. Combined net income for those companies was $112.5 billion, up from $69.2 billion a year earlier.

The figures are those actually reported by listed companies under generally accepted accounting principles, without the many special adjustments that Wall Street analysts often make to the numbers. Helping to make comparisons to a year ago more favorable, the latest results included fewer charges and asset write-offs than last year, when many companies were cleaning their books due in part to new accounting rules and a wave of bookkeeping scandals. Nevertheless, analysts said the second-quarter increase in profits was real. "We've had several quarters of positive profit momentum and it's been accelerating," said James Paulsen, chief investment strategist with Well Capital Management. Paulsen was skeptical when he first saw signs of improving earnings last year because sales growth was still tepid and most of the profit gains were coming from corporate cost-cutting.

But he now says "sales are recovering," leading him to conclude that profit growth is reflecting real demand. Looking For An Upward Trend Economists say an earnings turnaround is critical to a full-fledged economic recovery. They reason that executives will start hiring and investing again only when they are confident their profits are on a sustainable upward trend. Recent economic reports have shown signs that business investment is indeed turning up, although companies continue to cut payrolls, according to the latest Labor Department statistics. Companies are also increasing their dividends in the wake of legislation signed by President Bush this spring that lowered the dividend tax rate.

Among the companies tracked by Dow Jones, 231 raised their dividends between May 28 and July 28, and 43 companies declared dividends for the first time. In the same period last year, 140 companies increased dividends, and 20 declared dividends for the first time. Yet there are reasons for mal representations. This park stands on its own with the product offering. Along with SeaWorld, our two Florida parks make up a major portion of our company's business.

QWho is your primary visitor in Tampa? A We target families, not necessarily teenagers, not necessarily adults. We want something for everyone. QDo you try to anticipate trends as part of your planning for marketing and facilities? A We live off a five-year plan that we constantly update. We have multiple attractions, multiple shows in the works. We have multiple rides on the drawing board.

We cannot let ourselves be surprised by market trends. QHow does Busch corpo- headquarters show its interest in Busch Gardens? A August Busch III visits our park regularly. He's very hands-on. He's taught a lot of us attention to detail and attention to quality of presentation. Busch Gardens is in a busy and industrial part of town because it began on the former Busch brewery site.

How can you enhance the, experience of visitors before they get to the park? A We have a project for a new gateway to the park on 40th Street. We will have tunnels so parking trams do not have to stop in crossing the street. We will continue to direct tourists off Interstate 275 to Fowler Avenue. Eventually, there will be a corridor to Interstate 4. Reporter Ted Jackovics can be reached at (813) 259-7817.

patients questioning that. "It's been extremely frustrating," said the man who asked not to be identified. "I had scheduled a lot of things around this, and now I don't know when I will do the procedure." He was furious when told the surgery had been canceled, he said, and irked that the office manager instead of the doctor called him. "A lot of this would have been assuage if the doctor had made the call personally," said the man, who now plans to have the surgery done by another doctor. "We talk about the impersonal nature of health care today," he said.

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Please call lor details. Hrwd Runner ctvuxter rtamn, and all related Ulrica are trademarks of Warner Bros C2003. i hy bright hous TAMPA Busch Gardens is having trouble with its proposal to have the city close a 300-foot section of Linebaugh Avenue so the theme park can use trams between Busch Gardens and Adventure Island without driving on a public street. Neighborhood opposition prompted the Tampa City Council on July 31 to postpone a public hearing on the Busch request to permanently close access to McKinley Drive from Linebaugh. The council has asked that officials at Busch Gardens meet with the neighbors this month before the council considers the road-closing proposal.

The city plans to rebuild McKinley, Drive as part of a QHas anything surprised you? A Just the volume of attendance, walking the park and seeing it busy for the most part. I think it's been higher than what it was in the past. QWhaf different about the theme park business today from when you got started? A In the 1970s, there was so much growth in the industry. You could do anything you wanted, and people beat your doors down. The cap is a cornerstone of Gov.

Jeb Bush's proposal to lower malpractice rates. For some doctors, the protest is aimed more at hospital policy than the Legislature's inability to shape a bill that could lower insurance rates. The protest's genesis was hospitals' requiring doctors who self-insure to obtain a letter of credit or put $250,000 in an escrow account. Some doctors want the option, allowed under state law, of agreeing to pay $250,000 within 60 days of losing a malpractice case. Richard Goldberger, an orthopedist, said the doctors are asking the hospitals merely to follow the letter of law.

"I can afford my insurance now," he said. "But there are some doctors who can't." Debi Steele, office manager at Anchor, said the area is perfect for urban living. "People just don't realize you can see downtown from our front door," she said. Reporter JanisD. Froelich can be reached at (813) 259-71 43.

ATTENTION! Are Your Current Investments Too Low? FIXED RETURN Returns Predetermined Non Stock Product Total Fixed Returns No Stock Market Volatility Plans From 1 to 6 Years May Be Eligible for IRA 401 K's Recession Proof Don Know Call Now For Complete And Detailed Information OXFORD Call Toll Free 1-800-882-4215 TOTAlT' earlier. The biggest gainers this time around were energy companies, helped by stubbornly high oil and natural gas prices, and finance companies, which got a boost from historically low interest rates. ChevronTexaco for instance, reported a 293 percent jump in net income to $1.6 billion in the second quarter. Exxon Mobil Corp. had a net of $4.2 billion, up 58 percent.

In the financial arena, J.P. Morgan Chase Co. saw profits rise 78 percent to $1.8 billion, and Merrill Lynch Co. recorded a 61 percent increase in net income to $1 billion. The technology sector showed signs that it has stabilized following the 2001 meltdown.

According to the Dow Jones survey, Internet companies had combined net income of $35 million in the latest quarter after posting a net loss of $22 million last year and more than $1 billion in the second quarter of 2001. Some blue-chip companies also strengthened. Motorola after recording a $2.3 billion loss last year, reported $119 million in profits. IBM saw profits rise to $1.7 billion from $56 million last year. The 2nd Half Still, a host of factors could derail the outlook for the second half.

Rising interest rates have put a brake on the record pace of mortgage refinancing that was taking place just two months ago. As the boom slows, consumers might find that an important source of household cash flow is shut off, and may slow their spending. Continued retrenchment in the job market could make consumers more cautious. On the business side, the much anticipated rebound in business investment, which has been showing signs of starting, might falter. "Yes, the numbers in aggregate look OK," said Chuck Hill, director of research at Thomson Financial.

"But part of the problem is that there is not enough revenue growth when you back out the dollar and energy prices." There are other reasons to be cautious. Many companies, including General Motors Corp. and AMR American Airlines, face a mountain of pension liabilities. Companies also are under pressure to begin counting as expenses the options they pay as compensation to employees, which would hurt reported profits. In July, Microsoft Corp.

said it would begin doing that. Still, some economists are taking an optimistic view. The ISI Group, a Wall Street research firm, estimates that across the economy, profits were "amazingly strong" and were up 13 percent from a year ago. 'How much more proof do you need that profits are improving," said Nancy Lazar, an ISI economist. "They are improving, and it's good for the economy." In the business world, it pays to have good connections.

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