The Charlotte Observer from Charlotte, North Carolina • 31

0 or- ZIShr Crhartallt Obstnier INSIDE Rough Road Ahead NC trucking profits skidded last year and more treacherous curves loom ahead Page 2 Courting The Nonshopper Two Charlotte companies tailor their services to attract fashion-conscious big-spenders who hate to shop Page 3 A Textile Bargain Hunter When other firms are selling off equipment Bob Phillips is there searching for bargains he turns into profits Page 6 BRIEFING SOUTH CAROLINA BUCKED the nav tional trend in business starts in the first quarter of 1982 James Rutter president of Dun Bradstreet Credit Services told a conference on small business sponsored by the SC Chamber of Commerce in Columbia last week Despite the recession which has contributed to a sharp increase in business failures in SC and across the nation business starts were on the increase in South Carolina Rutter said 122 firms opened for business in the state in the first three months of 1982 a 109 gain over the same period in 1981 while business starts nationally declined 29 The number of jobs provided by the new SC businesses however was down 269 EARNINGS PROJECTIONS for two of NC's leading textile and apparel firms have been revised downward by Dean Witter Reynolds Operating profits at Blue Bell Inc the Greensboro-based maker of Wrangler jeans were 97 cents a share in the March quarter down from $108 a year ago Jeffrey Edelman textile analyst for the New York brokerage said the trend should continue for another quarter or two He expects 1982 annual earnings to equal about $325 per share down from an earlier projection of $425 For Greensboro-based Burlington Industries the nation's largest textile concern whose most recent quarterly profits were down 64 Edelman's 1982 earnings estimate is down to $270 per share from $290 LEADING ECONOMIC INDICATORS for the US economy in April are due Friday from the Bureau of Economic Analysis The leading indicators designed to anticipate the direction of the economy have declined for 11 consecutive months and some economists believe they're due to tick up OUTLOOK Si lil Intense And Inscrutable He's A Mystery Even To His Friends Behind Bruton's Poker Face Observer iilLIStraliOrt By Section I bousINEss MONDAY Crhartatit Observer (' ILI 0 24 1982 Section I )64 INSIDE moroR 'if PEEDNAA Intense And Inscrutable it OM I i A MP Rough Road Ahead tW Air trA He's A Mystery Even To His Friends I NC trucking profits skidded last Ipp-Ari ivy year and more treacherous Ilitliam Al Behind curves loom ahead Page 2 I -2--- Courting The Nonshopper Two Charlotte companies tailor i 40e--- -10-41 their services to attract fashion- I oe ---1 conscious big-spenders who hate ruton to shop Page 3 10 iii I rk Jr A Textile Bargai Hunter I I' "kik' 4 N17 sli 0 4 When other firms are selling off ---4 i lry- Ai Poker equipment Bob Phillips is there itik searching for bargains he A turns into profits Page 6 1 1 4 ---7--------- 041 ace i BRIEFING 2' 1 ilish: i 1" 11111111111111 it SOUTH CAROLINA BUCKED the na- 0 di PP --111111111111r4Wir 114 tional trend in business starts in the first 4 quarter of 1982 James Rutter president of 4 A 4 1 1 I Dun Bradstreet Credit Services told a con- ference on small business sponsored by the SC 00i 11111mmumum 1 Chamber of Commerce in Columbia last week 11111 Ilasomm Despite the recession which has contributed to ----111 111111 1111111--- 111111111111111111111 ----xisoom- 0 ---0011 a sharp increase in business failures in SC and 0 4111111111111 Vrragril-lie mis across the nation business starts were on the 001111111 l000ll" 011111111111 1 increase in South Carolina Rutter said 122 lt -1 0111141 1100111k WI Moab: A 1 nationally firms opened for business in the state in the first three months of 1982 a 109 gain over limos 0:171 (WINO the same period in 1981 while business starts ro101111100 "111111J00 declined 29 The number of jobs -osio IP---0000- 1' Wiroil allummosillysaVaa I provided by the new SC businesses however 0000 10" oftwatts illitimu was down 269 I 0010 lig 11 I II 1 I 1111 0 5 1 I II 11 I 4 111 111111 le 1' 010010 101101 0-11 i EARNINGS PROJECTIONS for two of 0 11 IIII 11 iril 1111 II illogitig 'I NC's leading textile and apparel firms Y7 have been revised downward by Dean Witter 1 '111 -v Reynolds Operating profits at Blue Bell Inc lw-- -7 the Greensboro-based maker of Wrangler Jeans were 97 cents a share in the March ver illinnirr quarter down from $108 a year ago Jeffrey Edelman textile analyst for the New York bro- kerage said the trend should continue for an- other quarter or two He expects 1982 annual -9 earnings to equal about $325 per share down i from an earlier projection of $425 For Greens- boro-based Burlington Industries the nation's I A i 0 largest textile concern whose most recent if? quarterly profits were down 64 Edelman's Ili 7e 1982 earnings estimate is down to $270 per i 1 1 I share from $290 -kK-1 --r-'- LEADING ECONOMIC INDICATORS for the US economy in April are due Friday from the Bureau of Economic Analysis The 4 4- 1 leading indicators designed to anticipate the direction of the economy have declined for 11 consecutive months and some economists be- ti lieve they're due to tick up 'V- ilikrii: ita OUTLOOK E-Z-- i I 0 1 i i l'Ih Observer Illustralion By By DICK MUM( Observer Staff Writer Almost permanently the smile splits the round face toning down but not eliminating the intimidation of broad-shouldered thick-necked physical power Take the man put him on a tree limb in an Alice-in-Wonderlatiu garden of over-grown plants and you have the model for the Cheshire cat In demeanor too Behind that grin beneath that weight-lifter physique the mind the ambition the planning the imagination work endlessly Always the Cheshire knew more than it told giving only a teasing hint at what was next Even the man's name by itself sounds hard unbending Bruton Smith But he could not have gotten where he is today solely with strength of a football middle A guard and the inscrutability of a world-class poker player Starting with a lifetime love affair with auto racing rooted in the red clay dirt tracks of Piedmont Carolinas Smith made millions in a string of auto dealerships around the country He has parlayed that into a string of holdings he will only hint at: insurance companies financial institutions controlling ownership in the Charlotte Motor Speedway a charter jet service stock in a variety of companies And now at age 52 amid the hoopla surrounding his annual showcase event next Sunday's World 600 at the speedway again an object of discussion and speculation because of still another big-bucks venture: He and a European partner have bought 85 of the stock in the Matthews-based portrait photography firm PCA International Inc What his next move will be bid for control of PCA or a quick turnaround profit is the focus of much guessing in Charlotte's business community What kind of person is Bruton Smith and what makes him run? People who have worked for and with him use DICK STILLE Obse rver Staff Writer Ail Almost permanently the smle i splits the round face toning down I but not eliminating the in- timidation of broad-shouldered A thick-necked physical power Take the man put him on a tree limb in an Alice-in-Wonderlatzu garden of over-grown plants and you have the model for the Ches hire cat In demeanor too Behind that grin beneath that 1 I weight-lifter physique the mind the ambition the planning the imagination work endlessly Always the Cheshire knew more than it told giving only a teasing hint at what was next Even the man's name by itself sounds hard unbending Bruton Smith But he could not have gotten where he is today solely with if strength of a football middle A guard and the inscrutability of a world-class poker player Starting with a lifetime love at- fair with auto racing rooted in the red clay dirt tracks of Pied- 1111' mont Carolinas Smith made ks millions in a string of auto deal- erships around the country He has parlayed that into a string of holdings he will only hint at: insurance companies fi- nancial institutions controlling ownership in the Charlotte Motor Speedway a charter jet service stock in a variety of companies And now at age 52 amid the hoopla surrounding his annual showcase event next Sunday's World 600 at the speedway again tan object of discussion and vnnntnn hn-nees nf et11 on- remarkably similar words: tough demanding shrewd dependable daring egotistical relentless They say he works like a demon They call him a visionary They say he has an uncanny ability for bringing good people into his organization and demanding perfection from them Those who measure up are said to be rewarded handsomely Those who don't are said to be replaced "He's a very strong businessman very astute" said John Slough district sales manager for Ford Motor Co in Charlotte where Smith has one of his two Ford dealerships "He's an innovator and a dreamer He's always thinking of new things and new ways of doing things You sit down and visit with him and suddenly he's coming up with some idea something different" Smith himself admits to being driven "by a sense See BEHIND Page 4D Col 1 inager for Ford has one of his anovator and a new things and down and visit up with some ven "by a sense A Reclining Company Tries to Right Itself elf Good news about declining inflation is being virtually washed away in the tides of bad economic news In a Louis Harris survey con ducted in April for I 9 Business Week maga- nflation zine 70 of respond- Down ents believed prices over the past six Is Anybody months had risen as fast or faster than they had Listening9 in the past few years The reality however is that inflation measured by the Consumer Price Index registered smaller monthly increases between November and February and the index actually declined in March The April index rose a scant 02 "The Reagan administration constantly trumpets its success in bringing down inflation" Argus Research Corp New York said last week in a staff report titled "Reality 1 Perceptions "It appears however that a recession-scarred public has not been listening" Cool reception to March's decline in the CPI raised concerns at the US Chamber of Commerce which said "the development ranks as perhaps the most underrated news event of the year and thus its advantageous effects on the national psychology may not be as great as otherwise" The impact of declining inflation even if it Is perceived is subject to interpretation One view holds that consumers who recognize long-awaited price relief will loosen their grip on the household purse strings By another view however moderating inflation takes away the urgency to buy now and avoid price increases latex Finally the recently reduced rate has hardly diminished inflation's 12-year cost In a report to be released today that includes tax increases as well as inflation The Conference Board a New York business organization notes a family of four that earned $10000 in 1970 about average would need $23425 to have the same purchasing power this year Ken Friedlein Good news about declining inflation is being virtually washed away in the tides of bad eco- nomic news In a Louis Harris survey con- ducted in April for Inflation's Business Week ma a- 'mot 4 JIM SCANCARELLI IM SCANCARELLI JIM SCANCAREW ogi 7 0-7 r-- ---1 barn in 1936 After Wayne Burris finished his mas- 00444ta ge 1 6 4 ter's degree at Harvard Business School he joined i A 4r4 ter's degree at Harvard Business School he joined 'inished his maschool he joined L4 1 -I-- the company in the '60s The younger Burris be 1 4w7 came president when the company went public in Wrr ir4 1973 inger Burris be- went public in 461t kiiwg sr" H1 7fr rI kl 11 3 4:::: 1: 03 i 7r01 i i 11 i :144: 4-sk'' ::::4 -Ir Burris Dick Hollomon By KEN FRIEDLEIN Observer Staff Writer LINCOLNTON The second floor at Burris Industries Inc's headquarters is a wasteland strewn with fabric samples a I4000-squarefoot carpeted and cork-paneled mausoleum with a row of dark offices whose only occupants are a few chairs lamps and a jumble of other accessories that couldn't be sold It's a stuffy place no longer heated or air conditioned Wayne Burris who once worked on the second floor moves quickly from door to door flipping light switches as he goes remembering the stylishly appointed offices of high-flying days past "Here we were living in all this splendor and the company was just going down Burris Industries which makes upholstered reclining chairs and contemporary furniture lost a staggering $44 million in-1980 a year that saw a somber-faced Burris walk from office to office one May morning gathering second-floor resignations Three key executives were forced out and Burris resorted to a desperate cut-shave-and-sell program "I was chief executive but I'd really been on the sidelines watching all this happen" Burris said of the company's troubled '70s "We couldn't keep going the way we'd been going" One chapter in the Burris Industries' story tells of a once-profitable and innovative family enterprise that was nearly brought down by an overly ambitious expansion In the latest chapter the company reawakens perhaps in time to shed assets and generate enough cash to stay on its feet The problems began after 1973 when Burris reported $14 million in profits on sales of nearly $25 million It was the company's last good year A public stock offering in January of 1973 raised $6 million which Burris used to help finance an ex-See RECLINING Page 7D Col 1 ally been on the Burris said of couldn't keep tries' story tells Live family ent down by an latest chapter in time to shed stay on its feet 3 when Burris sales of nearly ast good year A 1973 raised $6 finance an ex 7D Col 1 to save the company from failure A year later Burris and his new president Wayne Dick kicked themselves downstairs and closed off the second floor partly as a symbol that the company needed to get back to earth partly to save 830000 in fuel and electricity costs "That's the loneliest I've ever felt in my life" Burris 45 said of the 1980 shake-up His father Alonzo Burris who died in 1977 started the company as a furniture-repair business in a Lincolnton CAROLINAS INDICATORS Passenger Boardings Al DOUQ185 MUMCIPat AirPOrt In thousandsfr 225 200 175 150 125 80 '81 '80 81 80 81 81 82 '81 '82 '81 '82 OCT NOV DEC JAN FEB MAR Source Doug leS Municioal Airport Home Sales In Mecklenburg Courth on unns) 450 400 350 300 250 '80 '81 80 81 81 82 81 82 '81 82 81 82 NOV DEC JAN FEB MAR APR sotrce CrAtootte Board 01 Paaoors (In tosann) 142 140 mi'198182 138 136 198081 01 1 011111 OWN MB WI don 134 Residential Telephones Ir Fenburg County OCT NOV DEC JAN FEB MAR Se re Sowlen Be': leIPPe Co 650 600 Retail Sales In Me i e'tg Caon ad JOi (In of 198182 ai-- dt Ina 111 500 450 550 19808 SEP OCT NoV nEc CAROLINAS INDICATORS Passenger Boardings Home Sales Residential Telephones Retail Sales Al DOUQ185 MUMCIPat A IrPOrt In Mecklenburg Count' in Mekrerburg County In Me entrg Caon ad courneS I in thousandsfr (In urns) (In nsosan() (In mIlos of dolars) 225 '74 8 450 1: 142 650 ltlpotc-98ot 600 200 I 400 o''' 175 1 350 140 82 138 1 7 550 198081 bi 150 171 -17 300 136 os 1111 500 111104 8111111 MI Sel INN don 0:::::" 125 1111 PI IIII III I 250 1-11111 134 450 I E- Gri Ili ra 1111 I IPII11 Ell I -I 80 '81 '80 '81 '80 '81 Si '82 '81 '82 '81 '82 '80 81 80 81 81 82 '81 '82 '81 '82 '81 82 Oa NOV DEC JAN FEB MAR sEP ()CT NoV DEC OCT NOV DEC JAN FEB N1AR NOV DEC JAN FEB N1AR APR i set-re sot-er Be IP PEPPP CC NC 0''PPI Source Douglas Municioat Arport Source CrArpotte Board of PeVo's a--- 4: s' I I I 4 JAN FEB RevenA? 17k 1 Rene 1 JAN FEB RevenJe 1.