The Los Angeles Times from Los Angeles, California • 37

2 Part IVTucsday.July 27. 1982 Cob Angeles Slimes Dow Jones 30 Industrials Market Declines as Volume Sinks to 4-Month Low; Dow Ends Off 5 li, ii, III i I I All)' IMilli I 1 l. II New York Volume Tn:" 70 65 60 55 50 45 40 35 30 25 20 64 6 11 6' 18 I I 6'25 From Times Wire Services NEW YORK-Now doubts about the interest-rate outlook helped send stock prices lower Monday in the slowest trading in almost four months. The Dow Jones average of 30 industrials, which had climbed 33.58 points over the past three weeks, dropped back 5.13 to 825.44. Volume on the New York Stock Exchange totaled 37.74 million shares, down from 47.28 million Friday and the lightest total since a 37.10 million-share day on March 29.

Wilshlre Index Down The daily tally on the NYSE showed about two losers for every stock that advanced in price, and the exchange's composite index dropped 0.45 to 63.35. Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 44.17 million shares. Large-blocks of 10,000 or more shares traded on the NYSE totaled 569, compared to 801 on Friday. Standard Poor's index of 400 industrials dropped 0.88 to 123.64. and 500-stock composite index was down 0.81 at 1 10.36.

At the American Stock Exchange, the market-value index was off 1.56 at 255.26. The NASDAQ composite index for the over-the-counter market closed at 171.45, down 0,66. The Wilshire index of 5,000 equi 0.75 point to 1 point. Trading was light to moderate. A few banks across the country, including Manufacturers Hanover and Chemical of New York, lowered thir prime lending rates from 16 to But analysts said traders seemed to be questioning whether the recent downtrend in interest rates would continue.

The Federal Reserve's report late Friday of a $100-million decline in the money supply for the week ended July 14 was taken as something of a disappointment by analysts who had been hoping for a larger drop. Long-Term Bonds Fall On Wednesday the federal government is due to announce its quarterly financing plans. The brokerage firm of Smith Barney, Harris Upham Co. has estimated that the Treasury will need to raise $45 billion to $50 billion in new cash for the third quarter, and $50 billion to $55 billion in the fourth quarter. Wall Street analysts have frequently voiced concern that heavy borrowing by the government will exert strong upward pressure on interest rates.

In the credit markets Monday, prices of long-term government bonds, which move in the opposite direction from interest rates, fell as much as $20 for every $1,000 in face value. ties closed at 1,132.707, down 7.968, or 0.70. from the preceding trading day. A year ago the index stood at 1.361.331. For the 12-month period, the index high stands at and the low at 1,102.972.

In London, the Financial Times index of 30 industrial stocks closed off 4.9 at 573.3. The 1982 high of 594.0 was set June 8. The low of 518.1 was set Jan. 5. The Tokyo Stock Exchange 225-share index closed off 26.07 at The 1982 high of 7.938.83 was set Jan.

29. The low of 6,889.53 was set March 17. Bond prices plunged, with long-term government issues dropping nearly $20 for each $1,000 in face value, as most interest rates rose. In the secondary market for government issues, intermediate maturities fell 1 2532 points and long-term issues were off 1 2932 points. Short-term governments declined 1732 point, according to the investment banking firm of Salomon Bros.

Inc. The movement of a point is equivalent to a $10 change in the price of a bond with a $1,000 face value. -f Among corporate issues, both industrials and utilities were down 0.75 point in quiet activity. In tax-exempt municipal bond activity, general obligations fell 1 point and dollar bonds were down We Will Emerge Whole Chairman Vows Leaner Wickes Looks to Better Times Changes Name: Just Call It Glendale Federal By DORIS A. BYRON, Times Staff Writer In a move the firm touted as "one of the largest name changes in the history of the savings and loan industry," Glendale Federal Savings Loan Assn.

changed its name Monday. It became simply Glendale Federal. John Charnay, a spokesman for Glendale Federal (formerly Glendale Federal Savings Loan Assrh) admitted that most Southern Cali-fornians probably won't notice the change. In fact, chances are, they've known Glendale Federal Savings Loan Assn. as Glendale Federal for years.

In San Diego County, the Bay Area and Florida, however, it will be another matter, he said. Effective Monday, the 25 branches of La Jolla Federal Savings Loan Assn. and the 40 branches of West Coast Federal Savings Loan Assn. once inde Earnings Roundup Arco Net Up as Oil Firms Post Weaker Profits From Times Wire Services Atlantic Richfield the seventh-largest U.S. oil company.

Monday reported that its second -quarter profits rose 2.5. a contrast with most other oil industry giants whose earnings have been hamstrung by weak oil demand. Los Angeles-based Getty Oil ranked 14th, disclosed a 26.1 drop in its second-quarter earnings, and Union Oil Co. of California, the 15th-largest, had a 5 profit decrease from year-earlier levels. In the second quarter Los Angeles-based Arco earned $409.7 million, up from $399.6 million in the same period last year.

But revenues fell to $6.8 billion, from $6.9 billion. Arco Chairman Robert O. Anderson said increased crude oil production from Alaska's Kuparuk River field and substantially higher refining and marketing earnings bolstered the second-quarter results. On April 15, Arco eliminated its gasoline credit cards and reduced gasoline prices a move some analysts say has spurred sales. Arco said production from the Kuparuk River field, which started up in December, 1981, averaged barrels a day in the second quarter and exceeded expectations.

But Arco's chemical, metal fabricating and minerals segments continued to perform poorly because of the depressed economy and offset some of the company's earnings gain. Getty's second -quarter profits fell to $151.4 million, from $205 million. Revenues declined to $3.1 billion, from $3.2 billion. Getty Chairman Sidney R. Petersen attributed the earnings slump to higher exploration and production costs overseas, lower selling prices for crude oil, and reduced foreign currency gains.

In the second quarter, Los Angeles-based Union Oil earned $197.6 million, down from $207.9 million a year earlier. Revenues rose to $2.9 Dinion, trom $2.8 billion. Union said improved earnings from its domestic refining and marketing operation were partially offset by higher dry hole and exploration expenses and increased interest costs. McDonald's McDonald's Corp. reported record 1982 second-quarter an'd first-half earnings Monday, gains of 15 in both periods, and said that for the first time its total assets topped $3 billion.

For the second quarter, profits reached $86.6 million, topping 1981's $76.2 million. Systemwide sales were $2.03 billion, compared with $1.83 billion in 1981's second quarter. Chairman Fred L. Turner said the strong figures "reflect the company's ability to perform well in extended periods of difficult economic conditions" and added that McDonald's is "looking forward to another record year." Chicken McNuggets were introduced in 4,700 U.S. McDonald's outlets by the end of this year's second quarter, "with encouraging consumer acceptance and sales performance," the firm said.

McDonnell Douglas McDonnell Douglas Corp. said net second -quarter earnings rose 3 to $49.8 million, from $48.3 million in the same period last year. Sales in the quarter were $1.87 billion, down from $1.88 billion in 1981. The aerospace company said it received no new firm orders for commercial aircraft in this year's second quarter as economic conditions continued to have an adverse effect on demand for jetliners. Management said it expected a revival of demand for commercial aircraft, but not in the near term.

Merrill Lynch Merrill Lynch Co. the nation's largest investment house, reported Monday that profits fell 47 in the second quarter as commissions from stock trading slid. Earnings dropped to $36.1 million from $67.7 million in the same period last year. The second quarter of 1981 was the most profitable of any quarter in the company's history. Revenues rose 11 to $1.13 billion from $1.02 billion a year ago.

"The continued economic uncertainty has induced many individual investors to minimize their activities in the stock market and to look more to alternative investments." Rogert E. Birk. Merrill Lynch chairman, and William A. Schreyer. the financial services president, said in a joint statement.

They said stock market activity has proportionately the greatest effect on financial results in the investment industry and that commission revenues fell 16 from the second quarter of 1981. For detailed data and results of other companies, please see tables, Page 15. NABISCO: Sale of Unit 45 4(j it, 25 21) 7'2 79 716 7.23 7 pendent firms but now part of Glendale Federal also will be known as Glendale Federal. And on Oct. 1, the 38 branches of First Federal of Broward County, acquired last year by Glendale Federal Savings Loan will be reborn as Glendale Federal, too.

Charnay said the Glendale-based is not concerned that its name will seem parochial to distant customers. Glendale Federal Savings Loan Assn. based its choice of Glendale Federal on an extensive study. Besides, the name Glendale is a fairly common one, gracing towns across the country. Even Florida has a town named Glendale, but there's little chance of confusing it with Glendale Federal.

The Rand McNally Commercial Atlas and Marketing Guide says that Glendale, 100 residentsis so small that its mail is delivered to nearby DeFuniak Springs. Monday that Whitbread has long been interested in diversifying from its dependence on beer and the pub business in the United Kingdom. The agreement in principle is subject to a definitive agreement, board of directors approval and regulatory review. If completed, it would mark the second large U.S. spirits and wine firm takeover by a British firm in less than two years.

In 1980, Grand Metropolitan Ltd. took over Mont-vale, N.J.-based Liggett Group Inc. for $606 million. Dynamics Corp. Details of the sale were not revealed, but previously the companies said UTC would acquire the units for $100 million in cash.

UTC officials said, however, that the price had been lowered. General Dynamics Communication Co. will now be known as the United Technology Communication Co. It will be based in St. Louis and will have 51 offices and 1,300 employees in the United States.

Hughes Aircraft received a Army contract to retrofit Tow-2 missile launchers Standard Poors said it lowered its rating of Allis-Chalmers' senior debt to double-B plus from triple-B minus. Suncor said directors approved a $335-million upgrading of its refinery at Sarnia, Ontario The Agriculture Department said the number of cattle in the United States totaled 124 million head this summer, down 1 from a year ago Papercraft announced it will soon produce E.T., the Extra Terrestrial gift wrap and other products under an exclusive licensing agreement Western Air Lines directors voted to defer payment of the current quarterly dividend. This is the third preferred stock dividened to be ommitted since the stock was issued in September. 1977 Ma -sonite said its board approved a plan to sell of Masonite's timbcrland and sawmills through a limited partnership to be created among the company's shareholders. By NANCY RIVERA, Times Staff Writer Wickes Cos.

is slimmed down and upbeat about the future even though management expects "a lousy 18 months" for the U.S. economy. "It's tough out there," Sanford C. Sigoloff, chairman, president and chief executive of Wickes said in an interview Monday. Indeed, tough economic times forced Wickes to file April 24 for protection from its creditors under Chapter 11 of the federal bankruptcy law.

Under Chapter 11, the company, which has about $2 billion in debt, continues to operate with existing management while it tries to develop a plan to pay creditors. Although Wickes' chief executive declined to predict when the company will emerge from bankruptcy proceedings, "We will emerge whole," Sigoloff said. "But it depends on what your definition of 'whole' is." The diversified retailer, wholesaler and manufacturer has MOBIL: Shale Continued from First Page that abandonment of such efforts would make the United States more vulnerable to possible interruptions of oil supplies from the Middle East. Mobil Chairman Warner cited the Colony project cancellation by Exxon as evidence that even the largest firms cannot singlehandedly afford the risk and expense now posed by shale-oil development. In Warner's letter, a copy of which was obtained by The Times, he wrote to one oil company chief executive: "We would suggest that all of us give serious thought to Business in Brief Treasury bill interest rates fell at the latest weekly sale.

The average rate of six-month T-bills was 11.378, down from 11.441 at last week's auction. The Treasury Department said it was the lowest rate since 10.772 on Dec. 7. The average rate on three-month T-bills was 10.559, down from 11.14 last week and 10.404 also on Dec. 7.

The new six-month rate means that beginning today, banks and savings and loan associations may pay as much as 12.19 interest on $10,000 minimum, six-month money-market certificates, down from 12.7. Olympia said it dropped part of a merger plan. An Olympia Brewing Co. spokesman said the company terminated a tender offer that would complete its merger with Pabst Brewing Co. of Milwaukee.

Both companies said they expected the merger to still go forward, in a slightly different form. Olympiads tender offer was the second part of a merger plan with Pabst. The first, Pabst's acquisition of 49 of Olympia's stock on June 10 has been completed. Olympia said the action was taken partially because of the inability of Pabst to reach financial agreement with its banks and partially because of objections raised by a U.S. court last week in Delaware.

The companies said they are investigating alternative means of completing the in nizes. (Wickes moved its corporate headquarters from San Diego over the past month.) Sigoloff said he is "strongly optimistic" about Wickes' future, adding that the company has stabilized since he joined it in late March. The corporate "rescue artist" brought with him several managers from the period in the mid-1970s when he pulled Daylin a Los Angeles-based retailer, back from the financial brink. "We (have come) through a very, very difficult dark period," Sigoloff said of Wickes. "The company didn't have any goods on the shelf.

We were bleeding. We had lawsuit after lawsuit." The inventory problem has been solved, and trade creditors slowly are beginning to extend credit to Wickes, although much of the inventory still is being bought with cash, Chief Financial Officer Wil-helm Mallory said. Now, Sigoloff said, "We're running Wickes as a company, not fighting fires." While Sigoloff expects a loss for the quarter ended in July, He said the company could show positive results in the second half of its fiscal year because it no longer is burdened with interest payments on bank debt. While the company operates under Chapter 11, its payments to most creditors are suspended. "Just taking the interest burden off is going to give us a hike in the earnings," he said.

"I feel comfortable in saying we will do better in the second quarter. "Things were so dark before. The future may not be bright but it's at least gray," he said. Much of Sigoloffs optimism is based on a recent five-day round of meetings with Wickes' operating management. Resales of single-family houses rose slightly in June.

The median sales price nationwide of single-family housing rose to a record $69,400, according to the National Assn. of Realtors. However, the real estate group said the sales level was still low, and the June increase in median price was misleading because of "creative financing techniques." Getting the blame for lackluster sales were high interest rates, 'which make home loans more expensive. The real estate group said its monthly survey showed resales of existing single-family houses at an annual rate of 1.95 million last month, up 2.6 from the May sales pace. Venezuela raised its oil output after OPEC failed to set quotas.

Output averaged 1.87 million barrels daily in the week ended July 20, the energy ministry said, compared with a quota of only 1.5 million under an agreement among members of the Organization of Petroleum Exporting Countries that collapsed July 10. In Nicosia, Cyprus, the Middle East Economic Survey, a trade newsletter, said Venezuela's move and increased output by Libya and Iran suggest that OPEC will not emerge unscathed from the current oil glut. OPEC moderates had hoped that, despite the lack of a formal output-sharing accord, members would show restraint. The newsletter saw a risk of a price-cutting war among the cartel's 13 Los Angeles Times Sanford C. Sigoloff been reducing its size by selling divisions, closing stores and laying off 10 of 34,000 employees.

The company, now based in Santa Monica, is considering the sale of other subsidiaries and has said it will close still more stores as the company reorga- Oil Project a cooperative industry effort (with appropriate government participation) to spread the risk in financing a major shale oil project now, so that all of us can be ready for full-scale exploitation at the time we can forecast the economics that make individual ventures feasible." Warner added, "I'm sure that none of us would have any preconditions regarding the selection of technology or the specific form which government participation might take." However, he said, the cost of any such undertaking could be expected to "run into billions of dollars." Unions started major effort to invest pension money. The effort encourages trustees of the building and construction trades unions to invest up to $1 billion in the construction industry. The effort means that unions would place money in investment programs that would in turn put the money in housing and other construction, hopefully resulting in more jobs. Involved is the AFL-CIO Building and Construction Trades Department, comprising 15 building and construction trades unions. The 15 unions have 4.1 million members, of which about 1 million are unemployed, according to Al Silverman, a spokesman for the department.

The union's pension funds have more than $50 billion, which is generating an additional $5 billion a year. Natural gas prices will rise 20 by the end of June, 1983. Energy Users News, a trade journal, said in its monthly price outlook that the cost of electricity will steadily increase 15, heating oil 9, residual fuel oil 9 and steam coal 8 in the year ending June 30, 1983. "Many see the closing of the gap between oil and gas prices as a motive to switch fuels," the weekly publication said. However, the publication said some of the panelists surveyed believe the easy switch from gas to cheaper fuel oil may be hampered by the current instability the Middle East that could drive up oil prices.

Continued from First Page with the "fit" of the wine and spirits unit with its other food and beverage divisions. Whitbread produces a dozen beers and ales, a large volume of spirits and is also engaged in retailing and catering. It also holds a controlling interest in Highlands Distillers Los Angeles, whose Scoresby Rare is the largest selling Scotch in Southern California and much of the West. A liquor industry analyst said members, particularly if Saudi Arabia bows to oil-company pressure to cut its price from the current $34 a barrel for light crude. A partnership has formed to distribute nine Warner movies.

Hollywood Associates Limited Partnership, in a preliminary prospectus dated July 16, plans to offer 50,000 units at $1,000 per unit to participate in the advertising and distribution of eight films in release or slated for release this year: "Firefox." "Best Friends." "Blade Runner," "Night Shift," "The World According to Garp," "Independence Day," "Five Days in Summer," and "Love Child." In addition, the partnership would participate in a film tentatively entitled "Superman III," scheduled for release in 1983. Warner Bros. Distributing Corp. retains "substantial rights" to the pictures, including sequel rights. The limited partnership, through Thomson McKinnon Securities is the first such public offering involving the Warner company, according to Sidney Kiwitt, executive vice president of Warner Bros.

United Technologies acquired a communications company Hartford-based United Technologies Corp. completed its acquisition of General Dynamics Communications Co. and two units of Stromber-Carlson from General.