ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, July 9, 1996 TAG: 9607090049
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
OAK BROOK, Ill. - McDonald's Corp. is cutting spending on advertising after an accounting error left the nation's leading fast-food chain nearly $20 million over budget. The mistake was discovered recently by Chicago-based Leo Burnett, the company's advertising agency.
To make matters worse, McDonald's miscalculated May sales projections, overestimating revenue by $4.1 million, according to a report in Monday's Wall Street Journal.
Burnett's media department apparently overlooked two weeks of costs while drawing up the media budget. The Journal reported that when it came time to balance commitments with actual advertising dollars, McDonald's found itself facing a $19.7 million deficit.
McDonald's is considering making up the shortfall by asking television networks to give it refunds for ads that did not reach a promised minimum audience, the newspaper said.
Networks seldom go along with such a request, preferring instead to give a company free airtime. But McDonald's is the Big Mac of ad money, spending $490 million last year on TV.
A Burnett spokesman referred all calls to Oak Brook, Ill.-based McDonald's, where a spokeswoman said there would be no comment. |-Associated Press Attempted rally
finishes with fizzle
NEW YORK - Stocks failed Monday in a bid for another quick rebound from a sell-off propelled by a strong monthly employment report. Word Friday of robust jobs growth sent new inflation shudders through financial markets.
``It looks like all we had was a little bottom fishing that failed,'' said Richard A. Dickson, a technical analyst at Scott & Stringfellow Inc. in Richmond. ``They tried to bounce it up, but it couldn't hold the gains.''
Bonds finished almost unchanged, with the yield on the 30-year Treasury bond holding at 7.18 percent. That rate - a key determinant of corporate and consumer borrowing costs - was 6.93 percent before Friday's employment report.
The Nasdaq composite index, which tumbled 23 points Friday, fell 9.53 to 1,148.82, its lowest level since mid-April. But Intel rebounded 7/8 to 73, and Microsoft rose 115/16 to 1205/16. On the NYSE, IBM rose 1/2 to 983/8 as one of the Dow's strongest components, and Motorola jumped 17/8 to 673/4 on a brokerage recommendation. |-Associated Press Coal output drops
U.S. coal production fell 4 percent during the week ended June 29, to 17.8 million tons from 18.5 million tons the previous week, the U.S. Department of Energy said Monday. The industry produced 18.6 million tons in the same week last year.
Virginia mines produced 572,000 tons during the survey week, down from 705,000 tons a week earlier but up from 569,000 tons in the corresponding week a year ago.
Domestic coal production so far this year is 508 million tons, less than 1 percent behind last year's at this time. |-Associated Press
Company expands
Industrial Supply Corp., a Richmond distributor of industrial supplies, machinery and tools operating a branch in Roanoke, said it has acquired Henry Walke Co. of Norfolk, which also has locations in Charlotte and Greensboro, N.C.
F. Scott Williams will manage the new division, with an office in Richmond. He will oversee locations in Covington, Lynchburg, Richmond, Roanoke and Waynesboro. |-Staff report
LENGTH: Medium: 74 linesby CNB