The Vancouver Sun from Vancouver, British Columbia, Canada • 44

BUSINESS D2 The Vancouver Sun, Tuesday, May 26, 1992 RETAILING Mr. Jax looking to jeans in its nip tuck pursuit of a profitable '92 Tliere 's been a tremendous resurgence in denim wear and we're investigating new products. MARSHALL CRAMER But, he said, "I believe the worst is behind us." The company reported a net loss of $5.8 million on sales of $60.3 million in 1990 and a net loss of $2.4 million on sales of $48.5 million in 1991. The last quarter results to Feb. 29 showed a $79,000 loss on sales of $12.2 million, compared to a $224,000 loss on sales of $11.8 million in 1991.

Cramer was installed as president in October 1991, replacing Segal who served as interim president after Louis Eisman Morley Koffman, Ronald Longstaffe, William McQuaid and Daniel Pekarsky, was passed over the objections of a single shareholder. The options allow each director to purchase 10,000 common shares at a price of $2.70 per share. In the 30-day period before the board granted the options last Nov. 18, Mr. Jax's share price ranged from $2 to $3.05 per share in Toronto.

Segal, a major shareholder and promoter of the stock option motion, said the incentive would help the company to attract top quality directors. Directors at Mr. Jax are paid an annual fee of $6,000 plus $500 for each board or committee meeting attended. In fiscal 1991, the total fees paid directors was $53,500. another Mr.

Jax subsidiary based in Winnipeg. Cramer said he plans further major changes, including introducing a label denim product at the company's other Winnipeg subsidiary, Olympic Pant and Sportwear Co. which specializes in denim and men's outerwear. "There's been a tremendous resurgence in denim wear and we're investigating new products. We're looking at major changes in '92," Cramer said, expressing confidence that Mr.

Jax has potential for worldwide growth in the future. "There's no such thing as a messiah in this business. It's discipline and hard work and organization and structure," he said. In other business, a motion to grant stock options to four outside company directors, DAVID SMITH Sun Business Reporter After losing more than $8 million in the past two fiscal years, Vancouver women's clothing manufacturer Mr. Jax Fashions Inc.

is poised to become profitable, an upbeat company president said Monday. "Ninety-two will be a dramatic reversal of last year, but whether we'll finish in the black will be nip and tuck," president and chief executive Marshall Cramer said after the annual meeting. Chairman Joe Segal told the gathering that Mr. Jax was squeezed in 1991 by the GST, eroded consumer confidence and the threat of credit losses that grew as the recession continued. LUMBER 99 He told shareholders that in recent months he has changed the director of Mr.

Jax's MJF Imports Inc. subsidiary in New York, hired a new design team for its Jax-sport sportswear products and installed a new president at Canadian Sportwear Co. resigned in March 1991. Cramer, a 25-year veteran of the fashion industry, worked at Ellen Tracey and Jones New York in senior positions and is a former U.S. president for Christian Dior.

ROAD WARRIOR Ore you there? I 1 1 1 I I I. 1 I 1 I 1 I Quebec trucker i III; I 1 i i I til 1 I 2 7 W. Sales to U.S. drop while horse-trading goes on takes 2nd place with takeover ofKingsway BEN PARFITT ALLAN SWIFT 1 Ll i Ami 'Ar feiP ill it -hSL If life TO sm fdipl fi I Ifcr ll pa 1 1. ci- r- i Jppni Has- 4 TTWj I Buyers looking for prices to fall after softwood duty reduced ing off buying," Barber said.

As a result, Slocan's sales volumes declined 30 per cent last week following a short period of intense buying in the days before the U.S. ruling May 15, Barber said. West Fraser Timber Co. Ltd. and Pope Talbot Ltd.

also reported large sales declines. Both companies, however, Stressed the duty ruling wasn't the sole reason. The commerce department's monthly report last week predicting Sun Forestry Reporter Lumber sales to the U.S. have fallen by almost a third since the U.S. commerce department's decision to reduce a duty on imports of Canadian softwood, say B.C.

lumber producers. Ike Barber, president of Slocan Forest Products says the ruling lowering the duty to 6.51 per cent from 14.48 touched off a round of "horse trading" that has yet to sort out Buyers want B.C. lumber producers to slash their prices to reflect the lower duty, Barber said Monday. But industry says the price now commanded about $238 US per thou- sand board feet of two-by-fours keeps mills profitable. "We're saying 'no we don't want to I and can't afford So they're hold- the number of housing starts this year in the U.S.

also had an impact on buyers, said Joe Heath, West Fraser's general manager of North American sales. The April report estimated housing starts will total 1.115 million units this year, a 17-per-cent decline over the estimate the month before of 1.344 million units, Heath said. The revised figure represents "one of the biggest declines in eight years," Heath said, and almost certainly had a big "psychological impact" on some buyers. However, Heath said the lower number is probably more in keeping with what will happen this year a very modest increase in housing starts over 199 l's 1.1 million units. Heath said last week's sales decline isn't unusual and he expects many lumber buyers will soon place new orders.

"The pipeline Is dry," he said. "We could see some action soon." Abe Friesen, president of Pope Talbot said prices have declined by $5 US per thousand to $10 US per thousand in the last week amid soft demand. But he doubts this is the beginning of any protracted decline in prices or volumes. "We still think we're pulling out of the recession slowly and we'll see a good demand for lumber this year," Friesen said. TRANSPORTATION CHALLENGE WANTED Successful and results-oriented Mechanical EnglneerMBA with 30 years manufacturing and general man i i ll III I'lll'l I i HI agement experience seeks challenge tuii-time, part-time or on contract basis.

Excellent references. 931-1SXS RALPH BOWER HAMMERED but not crushed by a border hassle, Bruce Coatta of Earl's Industries Ltd. In Vancouver finally got into Canada the hydraulic hammer he needed to attach to an ore crusher that will go back to a copper mine in Utah. Canadian Press MONTREAL Quebec-based trucking leader Cabano is taking over Kingsway Transports a major player in Ontario, to become the second-largest trucking company in Canada. After the takeover, announced Monday, Cabano-Kingsway will have combined revenue of some $200 million, 1,200 trucks, 3,400 trailers and 63 warehouses and distribution points in Canada and the United States.

r-, The deal also gives Cabano a foothold in the U.S., where Kingsway Transports of America Inc. serves 19 northeastern states. The current owner ofKingsway is Winnipeg-based holding Federal Industries which announced a year ago it was putting Kingsway and its other transportation companies up for sale. "Never did I have an idea that when I entered into this business 25 years ago that I would acquire Kingsway," said Cabano president Arthur Servant, with awe in his voice. The terms of the acquisition include an agreement with Motorways, also owned by Federal, whereby the two will not compete in each others' territory, i Motorways covers Western Canada and Cabano-Kingsway covers everything east the Manitoba-Ontario border.

Servant told a news conference the Cabano Transportation Group is paying between $6 million and $10 million for Kingsway. The acquired assets are mainly composed of 500 tractors and body trucks and 900 trailers. Kingsway terminals will be leased instead of bought Between 800 and 1,000 Kingsway employees will be added to the 2,100 Cabano employees. Servant, who brought his company back from the brink of bankruptcy four years ago and went on to make several acquisitions, said Cabano bought Kingsway "at a discount." The acquisition will vault Cabano past Reimer Express of Winnipeg and TNT Canada Inc. of Toronto to become second-largest in Canada after CP Express.

Cabano Group had revenues of $145 million in the year ended April 27, 1991, and a net profit of $4 million. INVESTORS ONLY! CONCRETE HI-RISE (Maple Ridge) 2 Bedrooms $108,500 1 Bedroom 68,500 30 sold in the 1st Week! only 65 suites Age 4 years Large Balconies All Appliances Secured Parking Insuite Laundry Large Square Footage Panoramic Views All sales dose June 25, 1992 ACT QUICK! 683-2191 (24 hrs.) RFB "Always Your Best Value" WATERFRONT Liquidation Sale Cape Cod Cottage attractive, rumished ocean Front treed, with view 1 29,000 34 acre recreation lots serviced beach access view docks nearby $59,900 Spectacular setting. Swimming, boating, fishing. 20 min. from Horseshoe Bay.

925-9008 (8 a.m.- 8 p.m.) Waterfront Resorts Concord puts 374 under cover To advertise on the Financial Career Pages call General Advertising 732-2668 732-2602 732-2574 Closing: Noon two working days in advance ALAN DANIELS Sun Tourism Reporter Now that Engine 374 has finally come in from the cold, its friends are pushing to get it under glass. On Saturday, the 105th anniversary of the arrival of the first transcontinental passenger into Vancouver pulled by Engine 374 it made another important journey, this time just a few metres. Watched by a crowd of more than 100 rail buffs, 374 was moved from outside to inside the Roundhouse. Protected at last from the elements, it will become the centrepiece of Concord Pacific's Pacific Place development being built on the former Expo site. "It was a wonderful, joyous occasion," Friends of 374 president Evelyn Atkinson said Monday.

"We know it's going to be five years at least before the Roundhouse is converted into a community centre and they will need that space. "By that time we hope to have Engine 374 in its own glassed-in annex where it will be the flagship of Pacific Place and get the attention and respect it deserves." Concord Pacific got some atten tion of its own last week at the Pacific Coast Builders Conference in San Francisco. It was awarded the grand prize in the 29th annual international building design and planning competition. The judging panel described it as "setting new standards for urban living a unique waterfront development opportunity that is environmentally sensitive and pedestrian oriented." Concord Pacific senior vice-president Stanley Kwok said Saturday that Engine 374 "will become a welcome addition to the Roundhouse neighborhood development. "The completion of a railway line to Vancouver confirmed the destiny of this city," he said.

"Engine 374 is an important part of our history." To advertise on these pages phone General Advertising Department 732-2668 732-2574 732-2602 Closing: Noon two working days in advance CLEARANCE SALE OF FINE OFFICE FURNISHINGS 'ue to our recent renovation we have an outstanding selection of Labor calm, no line closures keep BC Rail a money-maker desks, credenzas and chairs from Sligh, NienkamperDrexel Heritage, Hancock Moore, Biltrite and more. Home office desks included. DISCOUNTS FROM 25 TO 60 JORDANS FURNISHING CONFIDENCE SINCE 1929 4th Floor Office Furnishings 1470 West Broadway 733-1174 BC Rail made a $53.8 million profit last year, up 67 per cent over the previous year, the railway reported Monday. Revenue increased eight per cent to $320 million, largely due to an absence of labor disputes and major line closures. "The year's performance is evidence that the leaner, more focused railway is working," BC Rail president Paul McElligott said in his annual report.

"Initiatives taken to improve customer service, increase market share and operate more efficiently are beginning to bear fruit." The railway hauled 17.4 million tonnes of freight, the best year since 1987. Carloadings totalled 218,353, compared to 199,744 the previous year. McElligott noted the railway's goal "to drive the company's transition from being an operations-oriented business, largely dependent on two natural resource commodities, to becoming a more diversified, customer-focused and market-driven enterprise." I A special touch for perfect labekv AFRIHi'LHYEtrVIROOIT 1 FOR A HE.UIHY FRANCHISE The P-touch electronic labeling system makes adhesive labels in 5 sizes, 5 styles and lots of colours. It's fast, easy to use and very perfect for all your labeling needs. Canada's leading retail bicycie specialty franchise is in great shape! Concerns about physical fitness, the state of the economy and the environment have steered many to cycling at an unprecedented pace.

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Vancouver, B.C Bumaby, B.C 253-2685 Vancouver, B.C 327-1181 420-9644 Torque Office Equipment 114-32868 Ventura Ave. Abbotsford, B.C. 850-1407 For more information on The Cyclepath, all: 1 -800-387-8335 arwnteto: finl Choice Franchise Srrvkti, 6465 MUkrtek Drive, Suite 205, Msfetaup, Ontario, UN 5R3 3NTV I 681-9666 AS SEEN (Industrial accounts only).