Fort Worth Star-Telegram from Fort Worth, Texas • 37

I USINESS DIGEST 2C MARKETS 5-11C MUTUAL FUNDS 10-11C AMEX 5C FRIDAY JANUARY 291999 Star-Telegram wwwstar-telegramcom Highlights Social Security plan falls short Greenspan says Higher taxes or benefit cuts needed Federal Reserve chairman warns a) ave 1 kr ow- 4- r1 A By MARTIN CRUISINGER The Associated Press WASHINGTON Federal Reserve Chairman Alan Greenspan while praising President Clinton's plan to use budget surpluses to shore up Social Security said yesterday that any permanent solution will almost certainly require either benefit cuts or higher taxes Republicans meanwhile were even more pointed in their criticism of the plan Clinton unveiled in last week's State of the Union address They contended that on closer examination the administration is relying on funny bookkeeping to dodge the tough choices needed to provide retirement benefits for 75 million baby boomers Senate Budget Committee Chairman Pete Domenici called Clinton's program an "elaborate shell game" to make the Social Security and Medicare programs appear to be in better shape than they are White House officials were quick to defend their accounting methods But the rising volume of GOP criticism underscored the hurdles Clinton faces in trying to win congressional approval Under Clinton's plan $27 trillion of $44 trillion in projected government surpluses over the next 15 years would be devoted to bolstering the Social Security system Clinton would use another $700 billion of the surpluses to put more resources into Medicare the health system for the elderly (More on GREENSPAN on Page 4C) The Associated Press Chief Executives Victor Rice left of LucasVarity and Joseph Gorman of TRW The Associated PressSIMAN SAVOR Clinton's plan is not a total solution for Social Security Alan Greenspan said yesterday TRW BID TRW has an agreement to acquire LucasVarity a highly coveted British maker of automotive brakes for $7 billion in cash and executives of the two companies are said to be looking for acquisitions with Tenneco Co among their top targets But the bidding for LucasVarity may not be over 4C MMEM Safe buying Ford Motor Co is acquiring the passenger car division of Sweden's Volvo AB for $645 billion A look at the two companies: 3 Lockheed files suit against aytheon him 93'Yo 93 96 96 93 93 93 90 93'Yo 93 90'Yo 90'Yo No 2 automaker manufactures cars and trucks around the world either in its wholly owned plants or in joint ventures with foreign companies It produces cars under the Ford Lincoln Mercury Jaguar and Aston Martin nameplates 61' Uokig 'Ew'i" i': 1 0 A 't i '''''1 1 1-- -2--- 7 ---11 let --m 'a A -sv''' 4 0 1' --------1 a ai 4 r-- ik i IV 4-- --s1 3-r-- i It it- 1 's 1 li i 1 1 1 A IttUIUo' 0 1 1 '1711' itietaltatiNNIOVJ I ie' 1998 sales: $1444 billion 1998 earnings: $22 billion Employees: 364000 Headquarters: Dearborn Mich loo EARNINGS REPORTS Lockheed Martin Corp owner of the aircraft manufacturing operations in Fort Worth and amilitary missile design operation in Grand Prairie reported a decline in fourth-quarter earnings yesterday from $363 million in 1997 to $308 million last year Also Irving-based GTE Corp's profits rose 22 percent in the fourth quarter meeting Wall Street expectations on growing revenue from local and long-distance calling as well as wireless and data services Contractor says its rival dropped joint venture NOLVO 5C One of the worlds smallest automakers but the United States is its biggest market buying more than a quarter of the 400000 cars it turns out annually It has manufacturing facilities in Sweden Belgium and the Netherlands By DAN PILLER Star-Telegram Stall Writer Lockheed Martin Corp is suing rival defense contractor Raytheon Corp in US District Court in Fort Worth accusing Raytheon of abandoning a joint venture with Lockheed Martin to pursue new anti-tank missile contracts on its own Raytheon Lockheed Martin's suit says will take advantage of missile-aiming expertise from workers being transferred this year to Tucson Ariz from Raytheon's plant in Lewisville Raytheon bought the Arizona plant 13 months ago from Hughes Missile Systems The suit says that the aiming expertise called "fire and forget" technology belongs to a Raytheon-Lockheed joint venture It has been used in the Javelin missile produced by the joint venture Colleen Niccum a Raytheon spokeswoman in Tucson declined to comment saying that com- pany lawyers have not had a chance to review the (More on RAYTHEON on Page 2C) in tele 1997 sales: $232 billion 1997 earnings: $13 billion Employees: 80000 Headquarters: Goteborg Sweden Volvo has not yet released 1998 results SOURCE AP research The Associated PressRico SCHULTZ Autos made by Volvo which is being acquired by Ford Motor Co are parked in a lot at Port Newark NJ The merger will boost Ford's European market share Star-TelegramAP red om age to ty's 0 0 0 INTEL STOCK SPLIT In a move widely anticipated by financial analysts Intel Corp has announced a 2-for-I stock split that will make shares more affordable to investors Intel the world's largest computer chip maker with $262 billion in sales last year said yesterday that the split takes effect April 11 2C Ugliti nEI Oil-patch senators introduce bill to help the industry Ford adds Volvo to stable as pace of industry consolidation quickens '''''t ir ''F' tA j' 4 1 1 '4sli '-t 1t I 1t i ieioso :5 11 Itecomea's c''6111 TO OUR READERS The American Stock Exchange listings for Wednesday's trading were inadvertently omitted from the Business section yesterday The closing prices from yesterday's trading are on Page 5C From Wire Reports DEARBORN Mich Motor Co is buying the far smaller Volvo car division in a $645 billion deal that accelerates the consolidation of the global car industry gives Ford a brand beloved by safety-conscious baby boomers and increases the company's European market share The announcement heightened industry speculation that more megadeals are forthcoming Daimler-Benz and Chrysler recently merged Japan's troubled Nissan Italy's Fiat Germany's BMW and Volkswagen and France's Citroen and Renault are all touted as potential takeover targets even though most of themsay they're not interested Nissan is cited as the most willing target because it's desperate for a partner with deep pockets "Nissan put itself on the block awhile ago" said analyst James Kelleher of Argus Research in New York Ford's acquisition of Volvo announced yesterday is similar to last year's merger of Chrysler and Daimler-Benz of Germany In each case the two companies involved do not make lines of cars that directly compete with one another Volvo will retain its commercial truck and engine business and is in (More on FORD on Page 4C) By MICHELLE MITTELSTADI The Associated Press WASHINGTON A bipartisan coalition of oil patch senators led by Kay Bailey Hutchison RTexas introduced legislation yesterday that would provide tax credits and other relief for a domestic oil and natural gas industry described as "flat on its back" Producers state officials and industry analysts sketched the moribund state of the industry at a Senate Energy and Natural Resources Committee hearing where lawmakers pledged to prod Congress and the Clinton administration to action "Clearly the domestic industry is in serious trouble" said the committee's chairman Rep Frank Murkowski R-Ala "If we do nothing things are going to get worse (More on BILL on Page 4C) The Associated PressCRAIG PORTER Announcing the merger with Volvo William Clay Ford Jr talks during a teleconference from Ford headquarters in Dearborn Mich Volvo cars represent the essence of Swedishness 4C ele-ter-en-porn ele-len-xtra a a )nh the ear ally erm 'e a ig a ate a ick THE MARKETS Stock indexes climbed yesterday as strong earnings stock splits and another high-profile Internet merger pulled technology shares out of the previous day's funk THE Stocl terday a stock sp profile I technok previou! 1 DOW JONES 928133 8110 -Oa Hicks adds Mesquite Rodeo to sports broadcast package Yahoo! to buy Internet competitor Geo Cities 6 A it OIL FUTURES I 245 I 3 cents Contract for March 31L43 13 cents Contract for March ME 5" 4 9" Pl" I 3" re" 18" 17 126' i 4 I 16" I 3'" ry I 4" POSTED PRICE North Texas Crude Oil $975 25 cents GAS FUTURES $186 34 cents Contract for March owlguRTm 11TTN 4 NJaJmk BY MITCHELL SCHNURMAN Star-Telegram Stall Writer Tom Hicks owner of the Rangers and the Stars said he has agreed to buy the Mesquite Rodeo for about $8 million adding another piece to his sports portfolio and another programming option for his planned broadcasting venture The sale is expected to close within 15 to 20 days said Hicks and Neal Gay the cowboy legend who founded the rodeo in 1957 Hicks said the rodeo held Friday and Saturday nights from April to October would complement his plans for the Rangers and Stars because it appeals to a similar audience That will enable his company to market the three sports to corporate sponsors and advertisers as a package "Most importantly rodeo does very well in the cable television ratings" Hicks said yesterday "The rodeo will be part of a broader offering on our regional sports network" (More on HICKS on Page 5C) 4 Tom Hicks says he will seek broadcast rights to the Stock Show rodeo in Fort Worth BY DAVID KALISH AND NOELLE KNOX The Associated Press NEW YORK Yahoo! one of the top sites on the Internet is buying rival Geo Cities for $502 billion a deal that will broaden Yahoors array of Web services to allow customers to set up home pages or chat with others on a vast array of topics The purchase is the latest in a spree of deals that are helping -4 transform the Internet from a chaotic collection of disparate sites into a more organized place to shop do research and exchange information Such deals are also creating a more effective medium for advertisers and retailers "From a consumer perspective these companies will come together so the consumer experience becomes richer" said Sajai Krishnan a principal with the (More on YAHOO! on Page 5C) I fr BY MITCHELL SCHNURMAN StTl transform the Internet from a BY DAVID klISII Star-Telegram Stall Writer Saturday nights from April to October AND NOELLE KNOX chaotic collection of disparate ttst would complement his plans for the angers and Rangers and Stars because it appeals to The Associated Press sites into a more organized place Tom Hicks owner of the a' POSTED PRICE the Stars said he has agreed to buy the a similar audience That will enable his NEW YORK Yahoo! one of to shop do research and exchange i North Texas Mesquite Rodeo for about $8 million Tom Hicks says company to market the three sports to the top sites on the Internet is information Such deals are also ill seek fi Crude Oil adding another piece to his sports portfo- corporate sponsors and advertisers as a he buying rival GeoCities for $502 creating a more effective medium 7" 25 9 S975 lio and another programming option for package broadcast rights billion a deal that will broaden for advertisers and retailers to the Stock 1 cents his planned broadcasting venture "Most importantly rodeo does very Show rodeo in 0- Yahoors array of Web services to "From a consumer perspective GAS FUTURES The sale is expected to close within 15 well in the cable television ratings" Fo Worth allow customers to set up home these companies will come P11rt 13" $186 to 20 days said Hicks and Neal Gay the Hicks said yesterday "The rodeo will be pages or chat with others on a together so the consumer experi 7" 34 cents re" 18" cowboy legend who founded the rodeo part of a broader offering on our regional vast array of topics ence becomes richer" said Sajai 1 1 ribs 12" 14" Contract for March in 1957 The purchase is the latest in a Krishnan a principal with the 11- Hicks said the rodeo held Fri sports network" day and (More on HICKS on Page 5C) spree of deals that are helping (More on YAHOO! on Page 5C) 17" 16" 13- i i I 4 i A 1 r- a rt -0vm -4 mr00- Prwrvaprnve tr vr ws grT 14".