The Daily Times from Mamaroneck, New York • 23

'JaT I csa Gannett Suburban NewspapersFriday, December 20, 1991 Jobless claims surge by 79,000 as economy lags Jobless claims Number of people filing new claims for unemployment benefits 600 550 500 450 400 350 The Associated Prats WASHINGTON Nearly half a million laid ofT workers filed new jobless claims three weeks before Christmas, the government said yesterday, suggesting at best a stagnant economy and at worst a renewed decline. But in a rare bright spot In an otherwise gloomy picture, the Commerce Department said record exports shrank the nations merchandise trade deficit by 2.9 Ent to a seasonally adjusted 6.73 bil-i October. For the week ended Dec. 7, Americans filed a seasonally adjusted 493,000 new claims for unemployment Insurance, 79,000 more than the week before, the Labor Department said. "It's consistent with this evidence that the economy is just sort of hanging In there somewhere between stagnation and slight slippage," said economist Robert Dederick of Northern Trust Co.

in Chica-ga "The expansion has stalled and the risks are all on the down sida" An even more pessimistic Bruce Steinberg of Merrill Lynch said, "I think the economy is declining right now. I don't think we're just stalled out" Economists were cheered by the bet-ter-tban-expected trade report but warned that economic sluggishness abroad will restrain U.S. export sales through much of next year. Despite the overall trade improvement, the deficit with Japan Jumped 11 percent to 94.64 billion, the biggest imbalance since February 1989. The number of new unemployment claims during the first week of December matched the 493,000 filed during the first week of November and approached the levels last seen during the depths of the recession earlier this year.

It brought the total number of people' drawing benefits to 3.48 million. The initial-claims level hit an eight-year high in March of 540,000. 300 1 I I I I I I I 1 1 I 1 7 2S It 30 Sept Oct Nov. Dec. SOURCE: Buraau of Utaor Saturn Knight-Riddvr Tnbuno Nm USAir moves to operate the Trump Shuttle Airline also weighs purchase By Martha M.

Hamilton The Washington Post USAir reached an agreement in principle yesterday to run, and possibly buy, the Trump Shuttle, increasing the chances USAir will survive in the rapidly shrinking airline industry. Although Arlington-based USAir described the deal with developer Donald J. Trump's bankers as an agreement in principle" with hurdles to clear, a source close to the negotiations said there was "a very high probability" the deal would be consummated. USAir officials said they could begin to operate what will be called The USAir Shuttle as early as February. Trump; asked in a telephone interview with The Associated Press whether he considered the removal of his name from the shuttle to be a personal blow, said he did not "Its been a success in many respecta, but were in a depression" said Trump, who has put his name on so many other things such as skyscrapers and Atlantic City casinos.

"I don't have any regrets. We come out whole and have no regrets." The Trump Shuttle is the former Eastern Shuttle, which Trump acquired for 9360 million in 1989 a price that some airline industry observers said even then was too high. Earlier this year. Delta Air Lines acquired the rival Pan Am tie for 9113 million. USAir executives said they plan to step up competition in the shuttle market if the deal goes through.

"You betcha, were going to compete, i Please see VMIgM Tambrands cuts work force, takes hit of $23 million BUSINESS BEAT Pepsi pop over to Portugal The overseas snacks unit or PepsiCo Inc. is planning to invest 9150 million in Portugal over the next 10 years to revamp its manufacturing and distribution network in the Iberian Peninsula. Under the agreement signed yesterday in Lisbon, PepsiCo Foods International will receive the equivalent of $20 million in grants and incentives toward construction, staffing and training at the plant, located In the suburb of Carregado. The company estimates it will add 430 new jobs in agriculture and, service industries in the next four years. The plant will also serve the European market, increasing Por-.

tugals exports by an estimated $100 million annually. PFI is based in Dallas. Band posts profit or 9 1 Boosted by a $2 million contract settlement, Band Corp. yesterday said it earned 91.285 million, or 19 cents a share, in the three months ended Oct. 31, compared with a loss of 93.474 million in the year-earlier period.

For fiscal 1991, the Elmsford supplier of communications switching systems said it earned 91-253 million, or 19 cents a share, compared with a loss of 95.718 million, or 87 cents a share, in fiscal 1990. Sales for the quarter totaled 97.614 million, up 66 percent; for the year, sales were 924.155 mil? lion, up 30 percent. Band said it received 92 million, or 17 cents a share, from Mercury Dealing Systems. For fiscal 1991, Bands operating loss, before interest income, taxes and the Mercury settlement, was approximately 91-6 million, down 83 percent from fiscal 1990's operating loss of 99.4 million. Band cited strong growth of its enhanced 911 emergency dialing product and introduction and growth of its new ViAX DN digital product The two accounted for more than 41 percent of 1991 sales.

The company said it reduced operating expenses 29 percent in 1991. Vottronlcs gats Navy deal Universal Voltronics Corp. of Mount Kisco yesterday said it had received a 92.1 million contract 1 award from the U.S. Navy for ground-based high-voltage systems to operate microwave sources for shipboard radar. The contract is a continuation of work the company has been involved with for the past 10 years.

KQF completes Capri deal Kraft General Foods yesterday completed an agreement to pur-, chase Capri Sun a San Mateo, Calif, manufacturer of all-natural fruit drinks. Terms of the all-stock deal were not disclosed. It carries marketing rights for Capri Sun products in the United States, Canada, Mexico and Puerto Rica Capri Sun was one of the countrys first purveyors of single-serve fruit drinks in foil pouches. It had annual sales of more than 9100 million last year. The company will become part of General Foods USA in White Plains, whose stable of beverages already includes Kool-Aid, Crystal Light, Country Time and Tang.

Christopher P. Mottem, Capri Sun's president and chief executive, will report to Irene B. Rosen-fold, GF USA executive vice president and general manager of the beverage division. Capri Sun has 220 employees and production facilities in Fresno, Calif, and Granite City, 111. There are no plans for layofft or shutting down any plants, said GF USA spokeswoman Nancy Daigler.

KGF is the food division of Philip Morris Cos. which has operations throughout Westchester County. White House yesterday. Galvin and Stempel will travel with Bush during his 10-day trip to Asia Big Three drive against Japan Major automakers band together in effort to slice deficit Ford Motor Co. Chairman Harold A.

"Red" Poling, outlined it for; President Bush1 and Commerce Secretary Robert A. Mosbacher in meetings yesterday at the White House. -ry- vf Earlier this pitched it to three Michigan congressmen who will' unveil legislation today that mirrors the automakers thinking and, in addition, poses the threat of unprecedented limits on the number of autos the Japanese can sell in the United States. The Big Three have found new urgency to reconcile their differences in the wake of slumping auto sales, huge financial losses, layoffa and planrdosings. On Wednesday, Stempel said GM would dose 25 plants and cut 74,000 Join by 1995.

GM operates an assembly plant in North Tarrytown. Bush met with the auto chiefo and 16 other U.S. executives who will be joining him next month on a trip to Australia, Singapore, South Korea and Japan. By Bryan Gruley Qannott Nows Sorvfeo WASHINGTON Detroit's automakers are moving for the first time toward a united, get-tough strategy to sharply reduce the United States' 940 billion trade deficit with Japan and create tens of thousands of American jobs. The Big Three, who have long disagreed over how to address the Japanese trade dilemma, are close to agreement on demanding that Japan erase the deficit within five years without specifying how that would be accomplished, according to industry and government officials.

General Motors Corp. Chairman Robert C. Stempel, Chrysler Corp. Chairman Lee A. Iacocca and the strategy's chief advocate.

Chrysler Chairman Lee Iacocca talks to reporters at the White House yesterday. Iacocca said weve got to pull together In this country. GM opts for lean look to regain stature Stall Writer Tambrands Inc. yesterday said it plans to cut an unspecified number of jobs and manufacturing operations in a restructuring that will result in a 923 million charge against its fourth-quarter earnings. The maker of feminine hygiene products said, the after-tax charge would reflect costs associated with work force reductions and consolidation of facilities.

It also said it will abandon the sanitary pad and disposable diaper business in Brazil Tambrands said the move was a result of a thorough analysis of its worldwide production requirements. But company officials provided few details of the cutbacks or closings because they said those decisions were not yet final. In trading yesterday on the New York Stock Exchange, Tambrands shares closed at 959.75, down 37 V4 cents. Analysts said the company would likely consolidate its manufacturing plants in the United States and its distribution network in Europe. It could potentially impact about 20 percent of their pro Plana sm TAMBRANDS, B4 By Keith Naughton "Theres a new generation of managers coming to the fore who have been quite good at laying off in large numbers, says Michael Useem, management and sociology professor at the Wharton School of the University of Pennsylvania.

"This new battle-toughened management may set the tenor for some Please sm QM, B4 Analysts: GM needs upturn, B5 UAW locals face new scuffles, B5 grim determination. Its all part of becoming "lean," corporate Americas new mantra that essentially means getting more with less. More profits, fewer people. More products, fewer plants. Gannatl Nows Service Set aside those notions of cooperation and team spirit introduced by Japanese management As General Motors sweeping retrenchment shows, todays corporate titan is heralded for wielding a mighty cost-cutting sword and slashing jobs with BUSINESS PEOPLE .7 I.

7 PepsiCo claims its weathering turmoil breaking up the USSR Stocks The Dow rose 6.27 points yesterday to 2,914.36. i-i Markets Dow Jones Industrials uct sold there in 1974 has helped it survive. CM prices New York Merc U.S.crudefell26cents yesterday Close: 2914.36 Vbl. at 4 p.m.: 199.8 million Vbl. ext.

session: 27,200 JAMES M. FELIX of Scars-dale, and DAVIDS. POPPICKof Chappaqua have been named partners in the law firm of Fink Weinberger of New York City. They are part ofthe litigation practice. PETER W.

RQTHBERQof New Rochelle also has been named partner in the firm's corporate practice. MARYANN T.CAV1NO of Rye has been promoted to assistant vice president at the Bank of New York. Cavino is a personnel representative, responsible for supporting ap- proximately 700 employees in the WestchesterPutnam division. mm Interact rates The price of the Treasury's 30-year bond rose 91 0.94 per 91 .000 as its yieldfellto7.65percentfrom. 7.

75 percent; By Karon Bonsara Stall Writer The sweeping changes in fastdissolving Soviet Union have created havoc for many foreign businesses. But not for PepsiCo Inc. The Purchase soft drink, snacks and restaurant giant, began developing stronger contacts within the individual Russian republics more than a year ago, Michael H. Jordan, chairman of PepsiCo Foods International, said in an interview yesterday. "Thats really paid off for us this year, he said, noting that Pepsi-Coia bottlers in the region have joined together to barter such commodities as sugar and bottles amid a collapsing economy.

"Were sort of substituting for the old Soviet trading system. Jordan said PepsiCo's longstanding relationship with the Soviet Union Pepsi became the first Western prod Last August, it played a key role in the failed coup against Mikhail Gorbachev, by delivering pizza and soil drinks to pro-Gorbachev forces who barricaded themselves inside government buildings. "We're all proud of the fact that Pepsi and Pizza Hut helped sustain members of the Russian Parliament," Jordan quipped. The next hurdle: Finding enough supplies to keep Pepsi products flowing through the winter which many are predicting will see vast food shortages. Were learning how to scrounge," Jordan said.

ThedoUar Fell to 128.15 yen in New Yorkfrom 12835. Nov. 22nd FNTNT Gold-Fell 91 .80 an ounce In New York to 9357.2a Business Beat and Business People are compiled by Gwen Hall and Joe Walsh. Send items to Gannett Suburban newspapers, 1 Gannett Drive, White Plains, N.Y. 10804.

Index 'JT Dn: 0-53 to 210.91 6 500 -TyL Dn. 0.96 to 382.52 NASDAQ Dn. 5.31 to 534.53 AMEX index -C3 Dn, 2.12 to 366.60 Mors on the markets, B2 OMORROWSTHIRKQUARTER GROSS DOMESTICRRODUCTI.