The State from Columbia, South Carolina • 56

The A State COLUMBIA SOUTH CAROLINA BUSINESS C9 DAILY REPORT C9 NYSE C10 NASDAQ C11 www.thestate.com PAGE C8 THURSDAY, MAY 25, 2000 FOR THE RECORD Dow A 1.08% CLOSE 10.535.35 Nasdaq A 3.35% CLOSE 3,270.61 500 A 1.83% CLOSE 1,399.05 South Carolina WITH BUSINESS NOTES FROM AROUND THE REGION WLTX-TV breaks ground on facilities expansion 1 WLTX-TV broke ground Wednesday on an expansion of its facilities at 6027 Garners Ferry Road. The expansion will house WLTXTV's newsroom and support areas, a new studio control room, an edit suite and offices. WLTX-TV's existing facility will be renovated after the addition is built. The entire project is scheduled for completion in spring 2001. Four firms choose Mynd Mynd Corp.

said four financial services 1 institutions have chosen the company to convert their business operations to electronic systems. Mynd, formerly Policy Management Systems said it has become an e-business partner with Ceres Group, Fidelity Security Life Insurance Universal American Insurance Corp. and another undisclosed client. Mynd's shares closed at $10 Wednesday, up 38 cents. THE UPSTATE Seneca company sued a GREENVILLE Sixty-seven people have sued a Seneca company accused of swindling investors of $53 million in a pyramid scheme.

Plaintiffs say they invested more than $5.3 million in Chemical Trust, which promised buyers a 25 percent return on investments in U.S. government securities and real estate. Instead of investing the money, the three defendants allegedly used it to pay sales commissions and interest to earlier investors. Prosecutors say more than 1,200 investors lost money in the scheme. Plant's operation extended Duke Energy Corp.

has won approval to operate its Oconee nuclear power plant for an additional 20 years. The Nuclear Regulatory Commission extended the licenses for the three reactors at the Oconee plant near Seneca. The reactors can generate enough electricity to light more than 2.5 million homes. The original licenses were for 40 years and were due to expire in 2013 and 2014. THE BOTTOM LINE Kemet stock falls again SIMPSONVILLE Electronic parts maker Kemet Corp.

said it was not aware of any company development responsible for a 22 percent drop in its stock Wednesday afternoon. Kemet's stock fell $3 to close at $61.38, but had fallen as low as $50.38 earlier in the day. The company's shares fell 16.3 percent Tuesday as investors unloaded technology stocks. In a statement, Kemet said that the drop in price is market-related and that several of its competitors also have seen their stock prices fall. DATEBOOK Association chapter to meet The Palmetto Chapter of the International Association of Administrative Professionals meets at 5:45 p.m.

today at the Palmetto Club, 1231 Sumter for the chapter's 52nd birthday celebration. Call Phil Lail, (803) 798-6207, Ext. 406. How to reach us Grant Jackson, executive business editor (803) 771-8376 Fax number (803) 771-8480 Commanding the skies United Airlines has offered to buy US Airways for $4.3 billion, plus $7.3 billion in assumed debt and leases, making the largest airline even larger. The companies at a glance UNITED US AIRWAYS Headquarters Chicago Arlington, Va.

CEO James Goodwin Rakesh Gangwal Employees 96,000 45,000 Revenue, 1999 $18.3 billion $8.6 billion Flights daily 2,400 4,500 Jet fleet 570 403 Destinations 139 destinations in U.S. 38 states and 12 other and 26 other countries; countries; mostly East mostly mid-West, West, Coast, Canada, Mexico, Pacific, Latin America Caribbean, Europe Passengers carried 87 million 56 million Major hubs Chicago, Los Angeles, Pittsburgh, Charlotte, Denver, Washington, D.C.. Philadelphia Pittsburgh Philadelphia Chicago San Denver Francisco DC Charlotte Los Angeles The effect on consumers The companies say consumers will have these benefits: No increase in fares for two years, United to add 64 daily nonstop except those due to inflation, fuel hikes domestic flights, 29 overseas Consolidated frequent flyer plans SOURCES: COMPANY REPORTS; THE ASSOCIATED PRESS US Airways in Columbia US Airways operations in Columbia include US Airways Express carriers NE Average daily flights: 16 round trips 9 Average flights per month: 463 (based on first four months of 2000) I Percentage of total flights: 24.3 percent (based on first four months of 2000) Percentage of total passengers: 30.5 percent for 1.999 1 Destination cities: Pittsburgh, Charlotte, Washington, New York United Airlines in Columbia United Airlines' only presence in Columbia is the flights operated by Atlantic Coast Airlines as United Express. Four daily round-trip flights to Dulles Airport in Washington, D.C. Three daily round-trip flights to 0'Hare International Airport in Chicago beginning July 1.

Profits falling short at Polymer Group North Charleston company says secondquarter earnings won't meet expectations By SAM GRESOCK Staff Writer For the second consecutive quarter, Polymer Group Inc. expects quarterly profits will fall short of Wall Street's expectations, the North Charleston company said. Polymer Group, which makes nonwoven fabrics for consumer and industrial products, said a decline in orders for some high-margin products Airlines' proposal good for Charlotte Key question is whether United Airlines will be allowed to acquire US Airways By TED REED and AUDREY Y. WILLIAMS Knight Ridder Newspapers CHARLOTTE United Airlines said its proposed $11.6 billion takeover of US Airways would hasten Charlotte's emergence as the key "competitive alternative" to Atlanta's airline hub. But it's not at all clear the deal will ever happen.

United said Wednesday it expected government approval of the deal early in 2001 and would move quickly afterward to add flights at International, boosting the number of nonstop destinations from 102 to 107. The impact of the proposed merger on Columbia Metropolitan Airport was uncertain Wednesday. Airport officials were out of town and unavailable for comment. The sale faces major barriers, including questions over whether the U.S. Justice Department will approve it and whether United rival American Airlines will try to prevent it.

"It's going to have a hard time going through the Justice Department," said Albert Foer, president of the American Antitrust Institute in Washington. In addition, United would have to negotiate a new contract with US Airways flight attendants and possibly with other unions after a deal closed. The two airlines are so committed to the merger that to secure Justice Department approval, they agreed to a near-freeze on airline fares for two years. "We are going to get it done," US Airways chairman Stephen Wolf said Wednesday at a New York news con- Union Securities in Richmond, said some customers might have ordered too much from Polymer Group, leading to a temporary decline i in orders. He said Polymer Group should begin to report earnings growth in the fourth quarter of this year if customers reduce their inventories and raw material prices decrease.

Polymer Group's shares fell 27 percent March 14 after the company said first- quarter earnings would fall below analysts' estimates because of price increases and order delays. Polymer Group went on to report first-quarter earnings of $2.1 million, or 7 cents a share, on sales of $232 million. A year earlier, the company earned $5.8 million, or 18 cents a share, on sales of $210.1 million. The company's stock remains well below its 52-week high of $20.50 a share, set Nov. 2.

Sam Gresock covers economic development and the state's publie companies. He can be reached at (803) 771-8396 or by e-mail at U.S. Trucking revenues rise sharply U.S. Trucking Inc. said Wednesday that recent acquisitions both helped and hurt its first-quarter financial results.

Charleston-based U.S. Trucking said it earned $37,432, less than 1 cent per share, on revenues of $18.1 million for the quarter ended March 31. A year ago, the trucking company earned $119,946, or 1 cent per share, on revenues of $7.7 million. U.S. Trucking attributed the revenue increase to the strong performance of recent acquisitions, including Checkmate Truck Brokerage Inc.

of Homestead, and Maverick Truck Brokerage Inc. of Fort Myers, Fla. U.S. Trucking said the decline in earnings was because of higher transportation costs and other expenses related to the acquisitions. Shares in U.S.

Trucking closed at $2.13 in over-the-counter trading Wednesday, down 13 cents. U.S. Trucking also reported its AIRLINES DD 000.0 0 08 James Goodwin, left, chairman and Wolf, chairman of US Airways Group, ference where he and United chairman James Goodwin unveiled their merger plans. Besides a fare freeze, the airlines agreed to guarantee that US Airways' 42,275 employees, including 8,000 in Charlotte, would receive permanent "no layoff" guarantees. They would also spin off most of US Airways' assets at Reagan National Airport in Washington, D.C., into DC Air, which would be owned by minority entrepreneur Robert Johnson.

United lobbyists began talking with Senate members Wednesday, seeking their support. The takeover would merge the largest U.S. airline with the sixthlargest, creating a giant with sales of more than $26 billion, more than 140,000 employees and more than 1,000 airplanes. It would combine one airline with a strong east-west and international presence with another that has the largest market share in the heavily populated East. Wolf called it "a milestone in commercial aviation." United would pay $60 per share, or $4.3 billion, for US Airways stock and THE ASSOCIATED PRESS CEO of UAL i and Stephen speak about the deal.

would assume $7.3 billion in debt and lease costs. Investors christened the deal by sending US Airways shares up 1 86 percent to $49 in trading Wednes-3 day. Investors showed their concerns for United as its shares fell nearly 12 percent to $53.19. Wolf said he understood that ac-1 cepting United's offer puts US Airways in play for bids by other airlines. "We are committed to one another," he said, "but if somebody else comes along, we will respond." American Airlines, which like United considered a bid for US Airway in 1995, declined to comment Wednesday.

Delta, the nation's No. 33 airline, said it would "monitor" the situation. Analyst Ray Neidl of the investment firm ING Barings Furman Selz, said American has to respond. "They can either testify strongly against the deal or come in with a counteroffer," he said. "I don't think they want this to go through." The Justice Department said SEE AIRLINES PAGE C12 would reduce second-quarter earnings.

The company also said rising raw material prices, increased interest rates and foreign exchange rates will hurt profits and that those factors might continue into the third quarter. Polymer Group said its profits would fall between zero and 4 cents a share. The company was expected to earn 12 cents a share, based on the average estimate of analysts surveyed by Zacks Investment Research as of Tuesday. Shares in Polymer Group fell $1.63 Wednesday to close at $8.44 on the New York Stock Exchange. The company announced its second-quarter projections Tuesday evening.

Bryan Hunt, an analyst with First Earnings report Name of company: Headquarters: Type of business: Quarter ending: Net revenues: Operating expenses: Net income: Net income per share: U.S. Trucking Inc. Charleston Trucking company March 31, 2000 $18,062 $18,048 $37,432 Figures are in thousands, except for net income per share was less than 1 Other highlights: U.S. Trucking recently Inc. of Homestead, and Maverick fourth-quarter and year-end 1999 financial results Wednesday.

The company delayed filing its annual report because of difficulties gathering information for the report, according to documents filed with the U.S. Securities and Exchange Commission. For the fourth quarter, U.S. Trucking said it lost $576,968, or 7 cents a share, on revenues of $14.9 million. A year earlier, the company lost $88,193, or 1 cent per share, on rev- Brainpower services easy to deliver online By Knight MARTIN Ridder J.

Newspapers MOYLAN Future of e-commerce A series on the move toward They're selling ideas, opinions, business-to-business knowledge not grain, auto parts or computers. Coming up: But businesses that trade in cere- FRIDAY: B2B commerce has bral goods and services might be bet- potential to alter global comter positioned to engage in e-com- merce. merce than many of the retailers and SATURDAY: How good are the manufacturers who have gained so numbers on e-business? much attention for their electronic efforts. After all, thoughts can be easily digitized and delivered via the Net. Just try that with toys, auto parts or a shipload of grain.

Lawyers, consultants, advertising commerce professionals, public relations types and others in brainpower occupations are embracing e-business models that enable them to do business more efficiently, shave costs and boost 2000 KRT SEE E-COMMERCE PAGE C12 By SAM GRESOCK Staff Writer U.S. judge wants revision in Microsoft breakup plan March 31, 1999 $7,661 $7,582 $119,946 1 cent income and net income per share. cent. acquired Checkmate Truck Brokerage Truck Brokerage Inc. of Fort Myers, Fla.

enues of $6.2 million. For all of 1999, U.S. Trucking earned $106,758, or 1 cent a share, on revenues of $44.7 million, compared with 1998 earnings of $121.767, or 1 cent a share, on revenues of $22 million. Also Wednesday, U.S. Trucking said it obtained a $6 million line of credit from JE Matthew, a Chicagoarea private investment firm.

U.S. Trucking will use the money for working capital. By MICHAEL J. MARTINEZ The Associated Press WASHINGTON The federal judge in the Microsoft antitrust case on Wednesday gave the Justice Department two days to revise its plan to break up the software giant, possibly into three parts instead of two, and rejected the company's pleas for more time to respond. U.S.

District Judge Thomas Penfield Jackson ordered that revisions be based on issues raised in Wednesday's hearing, including the possibility of splitting Microsoft into three new companies for operating systems, Microsoft Office and other software, and a new one for the Internet Explorer Web browser. Under the current Justice plan, one company would sell operating systems and the second would develop and market Microsoft's popular Office software and Internet properties. Justice officials had no immediate comment on whether their revised plan would include a third company. Jackson dismissed a request from Microsoft that he hear evidence in the matter. "I contemplate no further process," he said.

"This case has been pending for two years now," Jackson snapped when company lawyers pleaded for more time. Microsoft apparently will have until Tuesday to respond to the government's updated plan. Microsoft, in a last-minute filing, had hoped to call a series of new witnesses, including Bill Gates, the company chairman, and Steve Ballmer, the chief executive officer. Jackson said he would decide what punishment to impose after reviewing the plan and Microsoft's response without additional testimony..