THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, October 15, 1996 TAG: 9610150241
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
LENGTH: 121 lines
First Union Corp. reported a 6 percent decline in third-quarter net income due to an $86 million assessment for replenishing the deposit insurance fund for savings and loan associations. Without the assessment, the Charlotte-based banking company would have reported a 16 percent increase in income for the recent quarter. First Union said it earned $357 million for the July-through-September period, down from $381 million in the year-earlier quarter. Per-share earnings were $1.29, compared with $1.36. (Staff) Intel shows 41% gain in third-quarter profit
Intel Corp., spurred by record sales, on Monday reported a 41 percent gain in third-quarter profit, surpassing analysts' most optimistic expectations. The world's largest computer-chip maker earned $1.31 billion, or $1.48 a share, during the three months ended Sept. 28. Intel earned $931 million, or $1.05 a share, for the third quarter of last year. Revenue surged 23 percent to $5.14 billion from $4.17 billion, the first time the company's quarterly sales exceeded $5 billion. A strong report from Intel had been expected. (AP) USAir considers buying up to 20 new jetliners
USAir Group Inc. is considering ordering up to 120 new jetliners worth about $5 billion to help the airline reduce costs and battle low-cost competitors, The Wall Street Journal reported Monday. All three of the world's major jet makers are vying for the order, which could be the largest by a U.S. airline or leasing company this year, the newspaper reported, citing sources close to the talks. Boeing Co. appears to have surpassed Airbus Industrie as the lead contender, the newspaper said. McDonnell Douglas Corp. also is pitching hard for the order. (AP) Rite Aid agrees to buy Thrifty PayLess Inc.
Rite Aid Corp., the nation's largest drugstore chain, has agreed to acquire West Coast competitor Thrifty PayLess Inc. for about $1.4 billion in stock. The purchase, announced Monday, would create a chain of more than 3,500 drugstores in 26 states and the District of Columbia with annual revenue of about $10 billion. The news pushed Thrifty's stock up 20 percent in early trading Monday. Rite Aid's purchase comes six months after it abandoned a $1.8 billion deal to buy No. 2 Revco D.S. Inc. amid opposition from the Federal Trade Commission. (AP) TRW to slash 2,300 jobs, take $233 million charge
TRW Inc. said it will cut 2,300 jobs and close several plants in an effort by the nation's largest maker of air bags to meet automakers' demands that suppliers lower their costs. TRW said it took a charge of $233.4 million, or $3.58 a share, against third-quarter earnings to account for the moves. Before the charge, Cleveland-based TRW had profit from continuing operations of $86.2 million, or $1.32 a share, up 10 percent from $78.2 million, or $1.17, a year ago. ``Automakers are expecting their suppliers to cut prices about 4 percent to 5 percent a year,'' said Jeff Sprague, an analyst with Cowen & Co. (Bloomberg Business News) Infected hemophiliacs settle with manufacturers
Thousands of hemophiliacs who were infected with the AIDS virus by tainted blood clotting products have accepted a settlement offer from manufacturers that would give each $100,000 in compensation. There are three toll-free phone numbers for information: 800-488-2688; 800-568-5868; 800-836-9376. The settlement offer was made by Bayer AG on behalf of its Cutter and Miles laboratories divisions; Baxter International Inc., and its Travenol and Hyland divisions; Rhone-Poulenc Rorer Inc., and its Armour Pharmaceutical division; and Alpha Therapeutic Corp., a U.S. division of Green Cross of Japan. (AP) Chrysler profits nearly double in third quarter
Chrysler Corp. said Monday its third-quarter profit nearly doubled, soundly beating Wall Street's expectations, on continued strong car and truck sales. The No. 3 domestic automaker reported net earnings for July through September of $680 million, or 93 cents a share, compared with $354 million, or 45 cents a share, in last year's third quarter. Sales for the quarter rose 20 percent to $14.4 billion from $12 billion a year ago. (AP) Sprint, Viacom agree to sell Internet products
Viacom Inc. and Sprint Corp. agreed Monday to jointly develop and sell products that will provide access to Viacom's entertainment offerings on the Internet. Sprint, the global communications company, will work with Viacom's business units, including Blockbuster Entertainment Group, Simon & Schuster and Macmillan Publishing USA, the companies said. Viacom, based in New York, is one of the world's largest entertainment and publishing concerns. Sprint is based in Kansas City, Mo.
(Dow Jones News) Ford transmission plants will create 550 jobs
Ford Motor Co. said Monday it plans to create 550 jobs when it begins producing a new front-wheel-drive automatic transmission at its plants in Van Dyke, Mich., and Sharonville, Ohio.
Ford, the nation's No. 2 automaker, said the new transmission will be installed in the next generation of small cars built in Ford plants around the world. Production is expected to begin near the end of the decade.
This is the second major Ford investment in the Sharonville plant in the past year. A $180 million flexible automatic transmission line is being installed at the plant for the production of rear-wheel-drive transmissions. (Dow Jones News) CNN/SI sports network set for Dec. 12 launch
CNN/SI, the 24-hour sports news network jointly run by Cable News Network and Sports Illustrated magazine, announced Monday it will take to the air on Dec. 12.
The news follows on the heels of Time Warner Inc.'s purchase of Turner Broadcasting System Inc., which was completed Thursday. Turner was the parent company of CNN and Time Warner the owner of Sports Illustrated. Plans for CNN/SI were first announced in February.
CNN/SI will utilize the resources of both CNN and Sports Illustrated to produce its sports news stories, with Sports Illustrated writers playing a role in the network's reporting and commentary. (AP) In other news...
Japanese automaker Nissan Motor Co. on Monday said it will introduce an electric vehicle in California in early 1998, though retail sales won't begin until after 2000. The Nissan EV will be a four-passenger compact-van built on a platform designed to accommodate either a gasoline engine or an electric motor. . . . . Enova Corp. agreed to buy Pacific Enterprises for $4.3 billion in stock and assumed debt, giving Pacific shareholders 52 percent of a utility company with the most customers in the country. Enova will pay $2.8 billion in shares and take on $1.5 billion of debt under an accord billed by the companies as a ``merger of equals''. . . . Gannett Co. Inc. reported on Monday that earnings rose 331 percent in the third quarter, largely because of the sale of the media firm's billboard advertising division. . . . by CNB