The Charlotte Observer from Charlotte, North Carolina • 37

he eharlotte Observer USINEE MONDAY Monday June 25 1984 Section 11 Zile Charlotte Observer II US EL: ONDAY INSIDE "I'm optimistic we can survive and do a good job But we've got a lot of problems" Cone Mils Chairman Dewey Trogdon -)-1 "I'm optimistic we can survive and do a good job But we've got a lot of problems" Cone Mills Chairman Dewey Trogdon Cooperative Effort Workers band together to keep jobs companies going Page 2 Climb To The Top Management trainees at a Charlotte bank tackle some unusual hurdles on the job Page 3 Invest In Future Credit unions are joining the financial industry's move to automation Page 3 Sweet Success A customer's hairstyle tip turned into a business venture for a Kannapolis businessman Page 5 Direct Influence There's a retirement plan for people who enjoy being masters of their own destiny Page 19 ough Yt aters Cone Ready For Business Week Bankruptcies Business People Indicator Charts Carolinas Stocks Interest Rates Page 4 Page 14 Page 16 Page 17 Page 19 Page 19 1111MIIIIMIMMEIMMONEVII THIS WEEK '--------'-f-iiffi'- 's-- -i --00i t- t- i i ---i---1i- -1kV A' ---44-----i-- ----i- '7-: -A''--'41 0 1: 1 '1 )f '1 1 'ft r-1 LIP1412 't t''Is' 1 It'41 Itl'i -I'''' 1'-' 5: 11: I 'N11 3' 1 trr 2- i if 4 --is---i '-i'' ti r'-''' -1-- -1' f'-'7- -i 1 ''4 8:::1 1 11 i 11 -11P' -1 ---4-ttlp" 14 ifzi tit i I 1 '11 -1 -j44- if) 4 :1 4- a 4: A :45: :::::0::: 0' i 4 'A "'i 1 4'9 'l' -( I 1 4 By STEVE MATTHEWS Staff Writer GREENSBORO Dewey Trogdon is battening down the hatches at Cone Mills Corp preparing for the storm The chairman of Greensboro-based Cone is trying to navigate the manufacturer of denim and corduroy through a major downturn in the US economy that he says is on the horizon How the company copes he says could be key to the success of Cone's $385 million buyout by management completed in March "I think that in the next 18 months the market will be tough" with "a major recession in 1985" says Trogdon chief executive since 1980 The first signs of the downturn were evident by the company's first four months of 1984 he says in which sales of both denim and corduroy declined about 4 from the same period a year ago An aggressive cost-cutting manager 52- year-old Trogdon climbed the Cone career ladder quickly in the 1970s after he turned around a money-losing subsidiary that manufactured textile dyes in 1974 He imposed cost controls and streamlined the operation in what was "a turning point in his career" says Lewis Morris chairman at the time Now Trogdon has cut costs on a much broader scale with much more at stake Preparing for the worst the company has: Reduced middle management by 150 people who have taken early retirement since February Cone has closed or sold seven plants since 1977 reducing the need for managers Slashed capital spending for modernization Cone spent $503 million on textile plant modernization in 1983 but plans to cut back to about $25 million per year over the next five years The company's modernization program is largely complete Trogdon says and See CONE Page 5C ARGENTINA OWES WO million in interest payments on International Monetary Fund loans The debt becomes 90 days past due Saturday Many officials say Argentina is unlikely to make the payment by then which will force US banks holding Argentine notes to cut quarterly earnings by an average of 15 THE PERSONAL corny puter market will get another major contestant when- American Telephone Telegraph Co announces Tuesday it is entering the fray Industry sources say the entry will be made by Ing Olivetti Co of Italy and will claim to be faster in operations than the IBM PC Staff Photo BY DAVIE HINSHAVg Workers tend modern machinery at Cone Mills plant in Pineville Corporations See Donations As A Good Investment that time quadrupling its corporate donations in Charlotte from 1979 to 1983 says Olson "We see a need to support the quality of life where our employees live" says Olson "The longer we've been here the more visible we've become" growth of corporate profits with the recovery of the economy in 1983 more emphasis by corporate management on philanthropy and more sophisticated efforts by organizations seeking funds "I think that Charlotte is a leader in terms of philanthropy" says Larry Weber an executive vice president of Ketchum Inc a consulting firm that helps organizations raise funds Ketchum's Charlotte office is headquarters for eight Southern states in which Ketchum helps THE SECOND quarter of the calendar year ends Saturday THE TREASURY is to issue its federal budget statement for May today Foreign merchandise trade figures for May are to be released Thursday The Index of Leading Economic Indicators and sales of single-family homes for May are to be reported Friday By DEAN GERDES Staff Writer When IBM opened production facilities in Charlotte in 1979 it employed 2000 persons Since that time IBM's work force has grown to 4600 and its influence and impact on Charlotte's nonprofit organizations has grown too "We're a more significant part of the community now" says IBM spokesman Dewey Olson IBM has supported fund drives has donated computers to Discovery Place and Charlotte-Mecklenburg Schools and given $150000 to LINCC's "Campaign of Excellence" during The growth of national firms with Charlotte operations such as IBM and the growth of Charlotte-based firms like NCNB Corp is one reason officials of Charlotte firms and nonprofit organizations give for a steady increase In corporate donations here Officials give three other reasons: the See CORPORATIONS Page 9C.