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TEXON ENERGY <TXON> IN TALKS ON ACQUISITION

Texon Energy Corp said it has entered into a preliminary agreement to purchase an 80 pct interest in a privately-held specialty plastics manufacturing company it did not name. Texon said completion of the acquisition is subject to the consent of banks and third parties and the acquisition would be made for promissory notes and common stock. Reuter 

TWA FEBRFUARY LOAD FACTOR RISES TO 56.5 PCT FROM 53.1 PCT YEAR AGO

ALLIED <ALD> AFFILIATE RESTATES LOSS LARGER

Allied-Signal Inc's 49.7 pct owned <Union Texas Petroleum Co> affiliate said it has restated its fourth quarter and full-year losses and revenues to increase the provision for the proposed settlement of a price dispute involving Indonesian liquefied natural gas. It said the restated increases the provision against 1986 fourth quarter earnings to 23.5 mln dlrs from 15.5 mln dlrs estimated earlier. Union Texas said its fourth quarter loss was increased to 29.5 mln dlrs from 21.5 mln dlrs reported previously and revenues reduiced to 214 mln dlrs from 228 mln dlrs. Union Texas said for the full year it restated its loss to 57.5 mln dlrs from 49.5 mln dlrs and revenues to 1.26 billion dlrs from 1.27 billion dlrs. the restatement results from a tentative agreement reached in February with Pertamina, the Indonesian state-owned petroleum enterprise, and Japanese purchasers of LNG. Kohlberg Kravis Roberts and Co also owns 49.7 pct of Union Texas and the remainder is owned by management. Reuter 

AMREP CORP <AXR> 3RD QTR JAN 31 NET

Shr 12 cts vs 34 cts Net 787,000 vs 2,250,000 Revs 23.6 mln vs 23.6 mln Nine mths Shr 70 cts vs 1.06 dlrs Net 4,598,000 vs 6,974,000 Revs 73.1 mln vs 73.6 mln NOTE: Share adjusted for three-for-two stock split in December 1986. Reuter 

U.S. TREASURY OFFICIAL PROMISES VACCINE AID PLAN

The Reagan administration soon will propose a program of no-fault compensation for people injured by childhood vaccines, a senior Treasury Department counsel told the House select revenue measures subcommittee. "Within the next few weeks, we expect to propose a program that will provide equitable, no-fault compensation to injured persons, and predictable (and hence insurable) liabilities for vaccine manufacturers," Dennis Ross, tax legislative counsel for treasury, said in prepared testimony. The Vaccine Act was signed into law last year but did not include a funding mechanism for its compensation program. Ross noted 50 to 75 children a year suffer serious long-term or injuries from adverse reactions to vaccine for diptheria, tetanus and whooping cough alone. But he said lawsuits were causing drug companies like Wyeth Laboratories and Parke, Davis and Co to stop producing childhood vaccines. The administration would not favor funding compensation through an excise tax levied on the vaccine producers because it would add to collection and auditing burdens, Ross said. He did not suggest a favored funding mechanism but said a lump-sum trust fund for compensation might be preferable. Reuter 

<THE MUSIC SHOP> SIGNS STOCK OPTION AGREEMENT

The Music Shop said it signed a stock option agreement with the <Saxon Co> calling for it to receive 100,000 dlrs in return for 210 mln shares and an option for Saxon to buy additional common stock for up to 400,000 dlrs. The company also said it will hold a special shareholders' meeting April 15 to vote on a proposed one-for-100 share reverse split. Saxon is a venture capital firm from Dallas, the company said. Reuter 

ICI <ICI> SEES GROWTH IN PHARMACEUTICALS

Imperial Chemical Industries PLC expects earnings from its pharmaceuticals operations to grow to about 35 pct of world profits within the next five years compared with a current 30 pct, chairman elect Denys Henderson told financial analysts. "Over the next five years we expect to launch one major new product each year," Henderson said. He also said research and development spending in this business segment will be increased to 14 pct of total sales income in 1987 from 13 pct, or 130 mln sterling, in 1986. ICI, the world's fifth largest chemicals firm in terms of sales, recently reported 1986 profits of about 888 mln dlrs on 15 billion dlrs in sales, compared with income of 817 mln dlrs on 15.87 billion dlrs in sales a year earlier. Sales in the United States totaled about three billion dlrs, ICI executives said. In addition, Henderson said overall corporate growth will come from ICI's research and development activities, but the company intends to continue to grow through an acquisition program. ICI spent just under one billion dlrs for acquisitions during 1986, the largest of which was the 580 mln dlr purchase of Cleveland, Ohio-based Glidden Inc, a paints, resins and coatings company, from <Hanson Trust PLC>. ICI financial director Alan Clements said the company's borrowing limits are at a level of about 6.3 billion sterling, 1.5 billion of which have already been used. While the company has no current plans for a major acquisition, "we are ready to move quickly in the acquisition field if the need arises," Clements said. Reuter 

SAFECARD SERVICES <SFCD> SETS SPLIT, UPS PAYOUT

SafeCard Services Inc said its board declared a three-for-two stock split and is maintaining the quarterly dividend on post-split shares at the same six cts it now pays for an effective 50 pct increase. Both the split and the dividend are payable April 30 to holders of record March 31. Reuter 

WILTON ENTERPRISES INC <WLTN> 2ND QTR JAN 31 NET

Oper shr profit two cts vs loss 31 cts Oper net 72,000 vs loss 1,130,000 Sales 7,896,000 vs 9,333,000 1st half Oper shr profit 32 cts vs profit eight cts Oper net profit 1,187,000 vs profit 299,000 Sales 21.3 mln vs 26.0 mln NOTE: Current year net excludes tax credits of 54,000 dlrs in quarter and 945,000 dlrs in year. Reuter 

ROTTERDAM PORT SUBSIDY TO END JULY 1 - MINISTER

Dutch Social Affairs Minister Louw de Graaf announced he is withdrawing the annual 10 mln guilder labour subsidy for Rotterdam's strike-hit general cargo sector as from July 1. Late last month de Graaf said that if the dispute was not settled by Monday this week he would withdraw the subsidy. The chairman of the port employers' organization, SVZ, Jacques Schoufour, said he was unhappy with the decision and added there was now no alternative to proceeding with redundancy plans. The series of strikes in the sector started on January 19 in protest at employers' plans to make 800 redundancies from the 4,000-strong workforce by 1990 starting with 350 this year. Meanwhile, the port and transport union, FNV, attacked loss figures given for the port for this year. The figures, issued by accountants on behalf of the SVZ, put total losses for last year at 34 mln guilders and in 1985 at 37 mln. Earlier, the employers had put the figure at around 30 mln. The FNV said the actual losses were nearer 17 to 20 mln and said the employers had inflated the figures as part of their plan to restructure completely the port's general cargo sector. Reuter 

TWA <TWA> FEBRUARY LOAD FACTOR RISES

Trans World Airlines Inc said February load factor rose to 56.5 pct from 53.1 pct a year before. The company said revenue passenger miles rose to 1.95 billion from 1.66 billion a year before and available seat miles rose to 3.45 billion from 3.14 billion. For the year to date, the company said load factor rose to 56.4 pct from 52.8 pct a year before, as revenue passenger miles rose to 4.10 billion from 3.66 billion and available seat miles rose to 7.26 billion from 6.92 billion. The 1986 figures exclude recently-acquired Ozark Air Lines Inc. Reuter 

S.A.Y.<SAYI> TO TAKE 3RD QTR LOSS FROM SALE

S.A.Y. Industries Inc said it expects a loss of about two mln dlrs in its third quarter ended February 28 from the proposed sale of its Omnilab Inc health care unit. S.A.Y said its board of directors approved the unit's sale because Omnilab was losing about 140,000 dlrs a quarter. "We no longer see a near-term prospect for a reasonable return on our investment," Romilly Humphries, S.A.Y. president and chief executive officer said. S.A.Y. said proceeds from the sale would be used to increase the company's market share in automotive products packaging and diversify its packaging capabilities. Reuter 

DELTA AIR LINES FEBRUARY LOAD FACTOR FALLS TO 54.1 PCT FROM 59.9 PCT

NYSE EXAMINES HECK'S <HEX> LISTING STATUS

The New York Stock Exchange said it is reviewing the eligibility for continued listing of Heck's Inc's commonn stock after the company announced that it has filed a voluntary petition under Chapter 11 bankruptcy proceedings. Reuter 

PHELPS DODGE <PD> FILES FOR OFFERING

Phelps Dodge Corp said it filed a registration statement with the Securities and Exchange Commission for an offering of four mln depositary shares. Each depositary share represents one quarter share of a convertible exchange preference share. The liquidation preference of each depositary share is 50 dlrs. Quarterly dividends on the preference shares are cumulative and are payable beginning July 1, 1987. Proceeds will be used to redeem outstanding five dlr convertible exchangeable preference shares, to repay bank debt and for general corporate purposes. Reuter 

SONESTA INTERNATIONAL HOTELS CORP <SNST> 4TH QTR

Shr profit 26 cts vs loss 86 cts Oper net profit 780,000 vs loss 2,609,000 Revs 12.2 mln vs 17.1 mln Year Oper shr profit 5.28 dlrs vs loss 1.11 dlrs Oper net profit 16.1 mln vs loss 3,311,000 Revs 64.9 mln vs 69.8 mln NOTE: 1986 year net excludes 598,000 dlr tax credit. 1986 net includes pretax gains on sale of property of 2,330,000 dlrs in quarter and 24.5 mln dlrs in year. Reuter 

PARADYNE <PDN> FACING CRIMINAL CHARGES

Paradyne Corp said a hearing is scheduled in the Federal District Court in Tampa today for criminal charges against it and eight of its present and former employees. The charges pertain to the 1981 and 1982 Social Security Administration Equipment and Software Development Contracts. Paradyne said it will issue announcements with respect to the 1985 indictments and other proceedings after today's hearings. Miriam Frazer, a spokeswoman for Paradyne, said the major charge was for conspiracy to defraud the Social Security Administration in the procurement of a contract award to upgrade their computer network operation. The contract is valued at about 80 mln dlrs and the equipment is currently installed and operating at the agency, Frazer said. If found guilty, the sentence would likely be a fine for the company, and fines or imprisonment for the individuals, Frazer said. Reuter 

ORIENT-EXPRESS <OEH> TO SELL FIVE PROPERTIES

Orient-Express Hotels Inc said it reached agreement in principle to sell four hotels and the SeaCo Business Park near Houston for a total consideration of 54 mln dlrs, payable 51.8 mln dlrs in cash. The company said it is expected the sales will be concluded within 90 days. The purchasers have asked not to be identified until the completion of the sales, it added. Orient-Express said its board has decided not to raise new equity capital at this time, explaining the proceeds from the planned sales will be sufficient to pay all the company's immediate obligations and leave resources for investment. Orient-Express said the Turnberry Hotel and Golf Courses in Scotland will be sold but the company will retain a 20 year managment contract. It said the Lodge at Vail, Colo., will be sold and leased back for 10 years with tghe option to extend the lease. The company said the Royal York hotel in York, England, and the Lochalsh Hotel at the Kyle of Lochalsh in Scotland will be sold to a British hotels group and Orient-Express will have no further involvement in these properties. The company said it expects to make improvements to its Italian hotels soon and is considering Italian acquisitions. Reuter 

DELTA AIR <DAL> FEBRUARY LOAD FACTOR FALLS

Delta Air Lines Inc said February load factor fell to 54.1 pct from 59.9 pct a year before. The company said revenue passenger miles rose 4.1 pct to 2.48 billion from 2.39 billion a year before and available seat miles rose 15.3 pct to 4.60 billion from 3.99 billion. For the first two months of calendar 1986, Delta said load factor fell to 52.1 pct from 56.7 pct a year before, as revenue passenger miles rose 4.7 pct to 4.97 billion from 4.75 billion and available seat miles rose 14.0 pct to 9.55 billion from 8.37 billion. Reuter 

<DOMCO INDUSTRIES LTD> 1ST QTR JAN 31 NET

Shr four cts vs 12 cts Net 248,000 vs 647,000 Revs 23.7 mln vs 21.9 mln Reuter 

UAL INC <UAL>'S UNITED AIRLINES ADDS FLIGHTS

UAL Inc's United Airlines said it is adding flights into Los Angeles International Airport between now and June. United said it will be adding flights between Los Angeles and Phoenix, Ariz., Oakland, Calif., Sacramento, Calif., Chicago and Salt Lake City. Reuter 

UNICORP AMERICAN <UAC> ACQUISITION ADVANCES

Unicorp American Corp said it has signed a definitive agreement for the previously-announced acquisition of Lincoln Savings Bank. The company said the transaction is still subject to regulatory approvals. Reuter 

FIRST EASTERN CORP <FEBC> COMPLETES ACQUISITION

First Eastern Corp said it has completed the acquisition of Peoples Bank of Nanticoke, Pa., in an exchange of 11 First Eastern shares for each Peoples share. Peoples has assets of about 24 mln dlrs. Reuter 

AFRICAN DEVELOPMENT BANK OPENS MOROCCO OFFICE

The African Development Bank (ADB) opened a regional office in Rabat which will cover Morocco, Algeria, Tunisia, Egypt, Sudan and Somalia. Babacar N'Diaye, president of the Abidjan-based bank, said the regional office, headed by Tunisia's Hedi Meliane, will try to consolidate and diversify Arab-African relations, the Moroccan news agency MAP reported. N'Diaye said the ADB intends to increase its capital by 200 per cent by next June. This will allow it to invest about eight billion dollars in the next five years, he said.. Reuter 

BISHOP GRAPHICS <BGPH> COMPLETES STORE SALE

Bishop Graphics Inc said it completed the sale of its Newport Beach Art Supply Center to Standard Brands Paint Co's <SBP> Art Store unit. Terms were not disclosed. Bishop also said it has opened a new sales and service office in Irvine, Calif. Reuter 

STRIKING BRAZILIAN SEAMEN HOLD PAY TALKS

Striking Brazilian seamen, who say they have made idle 158 ships and halted Brazilian exports, today held pay talks in Rio de Janeiro with Labour Minister Almir Pazzianotto, union officials said. Jorge Luis Leao Franco, a senior official of the National Merchant Marine Union, told Reuters he was optimistic the talks would lead to an end of the stoppage, which began last Friday. Brazil's 40,000 seamen are seeking a pay rise of 275 pct. The union official said the strike had halted a total of 158 vessels, including 50 in Brazil's main port, Santos, and about 50 more in Rio de Janeiro. Abroad, six ships lay idle, in the Netherlands, Spain, Venezuela, France and South Africa, he said. Economic analysts said the strike was of serious concern to the government, which has already had to suspend interest payments on part of Brazil's foreign debt following a drastic deterioration in the country's trade balance. The head of the National Merchant Marine Authority, Murilo Rubens Habbema, was quoted in today's Gazeta Mercantil newspaper as saying that if the strike continued foreign ships could be authorized to transport Brazilian exports. "Brazil is living through a crisis at the moment, and it is not conceivable that exports be hit," he said. "But even using foreign ships we must not forget that we are going to lose foreign exchange paying freight charges abroad, and all this through the fault of the seamen," Rubens Habbema said. A spokesman for the port of Santos, which has been the scene of labour unrest and congestion in recent months, said movement of ships out of the port was running at about half its normal level of 12 ships a day. He said a total of 76 ships were either waiting at anchor on moored in the harbour. Reuter 

FED'S JOHNSON SAYS DOLLAR IS VERY CLOSE TO APPROPRIATE EXCHANGE RATE LEVEL

FED'S JOHNSON WARNS U.S. BANKS AGAINST EXCESS RIGIDITY IN LDC DEBT TALKS

MERIDIAN DIAGNOSTICS <KITS> HAS TYPHUS TEST

Meridian Diagnostics Inc said it has developed a rapid diagnostic test for endemic or murine typhus infections caused by Rickettsii typhi and transmitted by flea bites. It said the product will be sold to hospitals, physicians, commerical laboratories and veterinarians by <Integrated Diagnostics Inc>. Reuter 

FED'S JOHNSON SEES RISKS BUT NO IMMEDIATE DANGER IN CORPORATE DEBT LOAD

MEDIQ <MED> TO SPIN OFF FINANCIAL SERVICES UNIT

MEDIQ Inc said it has filed a statement with the Securities and Exchange Commission to set up its Copelco Financial Services Group Inc unit as a publicly traded leasing company. MEDIQ said it could gain 6.2 mln dlrs on the move. MEDIQ said as part of the move it will offer MEDIQ common and preferred shareholders the right to purchase one share of the 1.2 mln Copelco shares for each 20 shares of Mediq owned as of March 20, 1987, for five dlrs a share. MEDIQ said the shareholders may not exercise the rights for fewer than 100 Copelco common shares and the rights will expire 30 days after issuance. MEDIQ added that the rights and shares will trade on the over-the-counter market under the symbols <CFSGR> and <CFSGW>, respectively. Later, it said, they will trade on the NASDAQ system under the symbol <CFSG>. Reuter 

BROWN GROUP INC <BG> VOTES REGULAR DIVIDEND

Qtly div 37-1/2 cts vs 37-1/2 cts prior qtr Pay 1 April Record 16 March Reuter 

BLOCKER ENERGY CORP <BLK> YEAR NET

Oper shr profit 11 cts vs loss 2.45 dlrs Oper net profit 3,594,000 vs loss 81.9 mln Revs 38.5 mln vs 48.2 mln NOTE: 1986 net excludes 68.5 mln dlr gain from debt extinguishment. 1985 net includes 72.0 mln dlr writedown of drilling rigs. Reuter 

HITK <HITK> ADDS NIPON, MURDOCH TO CLIENTS

HITK Corp said its Worldwide 800 SErvices telemarketing unit has added Nipon Electric Co and Murdoch Publishing to its list of clients. Terms were not disclosed. HITK said Nipon will use the service for promotion and sales to hotels and individuals. Murdoch will use the service to sell subscriptions. Reuter 

LTX CORP <LTXX> 2ND QTR JAN 31 LOSS

Shr loss 28 cts vs loss 32 cts Net loss 2,585,000 vs loss 2,885,000 Sales 27.6 mln vs 23.5 mln Avg shrs 9,352,000 vs 9,049,000 1st half Shr loss 63 cts vs loss 94 cts Net loss 5,867,000 vs loss 8,405,000 Sales 51.9 mln vs 43.7 mln Avg shrs 9,349,000 vs 8,966,000 NOTE: Prior year net includes tax credits of 1,827,000 dlrs in quarter and 5,347,000 dlrs in half. Reuter 

YEUTTER SAYS U.S. BUDGET DEFICIT REDUCTION KEY TO TRADE DEFICIT SOLUTION

CALPROP CORP <CPP> 4TH QTR NET

Shr 40 cts vs 25 cts Net 1,369,602 vs 628,193 Revs 12.5 mln vs 4,909,369 Avg shrs 3,460,217 vs 2,610,913 Year Shr 97 cts vs 54 cts Net 2,952,830 vs 1,414,369 Revs 37.0 mln vs 13.5 mln Avg shr 3,031,494 vs 2,609,313 Note: Prior qtr and year per share figures restated for 10 pct stock dividend of December 1986. Reuter 

SIS CORP <SISB> YEAR NET

Shr one ct vs nil Net 9,949,000 vs 3,799,000 Revs 15.5 mln vs 13.5 mln Reuter 

AMOSKEAG CO <AMOS> SETS QUARTERLY

Qtly div 30 cts vs 30 cts prior Pay March 31 Record March Five Reuter 

MEDTRONIC INC <MDT> SETS QUARTERLY

Qtly div 22 cts vs 22 cts prior Pay April 30 Record April 10 Reuter 

CANADA 91-DAY T-BILLS AVERAGE 7.29 PCT, MAKING BANK RATE 7.54 PCT

SCITEX CORP <SCIXF> 4TH QTR LOSS

Shr loss 46 cts vs loss 1.17 dlrs Net loss 4,990,000 vs loss 12.8 mln Revs 47.0 mln vs 42.3 mln Year Shr loss 3.08 dlrs vs loss 1.28 dlrs Net loss 33.7 mln vs loss 13.3 mln Revs 132.8 mln vs 132.5 mln Avg shrs 10.9 mln vs 10.4 mln NOTE: Includes losses of 501,000 vs 83,000 in qtr and 2.2 mln vs 83,000 in year from equity of 50 pct-owned companies. Reuter 

ENERGY OPTICS TO DEVELOP RANGE-FINDER FOR ROBOT

<Energy Optics Inc> said it has been selected by the U.S. Navy to develop a low cost, optical triangulation system. Energy Optics said the Navy awareded a Phase I contract to investigate various analog and digital design alternatives and select the best for development and demonstration of a prototype. The company's statement gave no value for this contract, but said this task is expected to take six months. Reuter 

STANLEY WORKS <SWK> MAKES ACQUISITIONS

Stanley Works said it has acquired Acme Holding corp, a maker of sliding and folding door hardware, and the designs, patents and other righs of Plan-A-Flex Designer Co, which provides kits for home design and remodeling projects. It said Acme had 1986 sales of over 50 mln dlrs. Terms were not disclosed. Reuter 

NYSE SELLS 17 NYFE SEATS

The New York Stock Exchange said it sold 17 seats on the New York Futures Exchange, three for 200 dlrs, unchanged from the previous sale on February 25, and 14 for 100 dlrs, down 100 dlrs. The Exchange said the current bid is 100 dlrs and the current offer is 300 dlrs. Reuter 

ANITEC IMAGE TECHNOLOGY CORP <ANTC> SETS PAYOUT

Qtly div 7-1/2 cts vs 7-1/2 cts prior Pay April 10 Record March 27 Reuter 

GREEN MOUNTAIN POWER CORP <GMP> SETS QUARTERLY

Qtly div 45 cts vs 45 cts prior Pay March 31 Record March 20 Reuter 

DUAL-LITE INC <MDT> SETS QUARTERLY

Qtly div eight cts vs eight cts prior Pay May 11 Record April 24 Reuter 

FED'S JOHNSON WARNS U.S. BANKS ON LDC RIGIDITY

Federal Reserve Board Vice Chairman Manuel Johnson said that some U.S. banks have been too rigid in talks with lesser developed countries on debt refinancings and warned that a breakdown of the renegotiation process could be harmful. "There have been some difficulties in those negotiations ... banks have sometimes been too rigid," Johnson said in response to a question during an address before the Eastern Economic Association, an academic group. "I think there have been potential breakdowns in that process," he said, adding that an actual breakdown "would be very unfortunate." He declined to comment on the situation of specific nations and said it was not the Fed's role to become involved in such talks. However, he said it was "always a little bit risky" for a heavily indebted nation to seek refinancing without first negotiating with the International Monetary Fund on economic reforms. He added that he remains optimistic that current talks would be resolved successfully. Reuter 

SCIENCE MANAGEMENT CORP <SMG> 4TH QTR OPER NET

Oper shr profit 14 cts vs loss 31 cts Oper net profit 374,000 vs loss 707,000 Revs 19.1 mln vs 15.5 mln Avg shrs 2,610,000 vs 2,560,000 Year Oper shr profit 20 cts vs loss 69 cts Oper net profit 530,000 vs loss 1,376,000 Revs 69.1 mln vs 64.3 mln Avg shrs 2,603,000 vs 2,565,000 NOTE: Excludes gain of 309,000 dlrs vs loss 72,000 dlrs in qtr and gains of 458,000 dlrs vs 23,000 dlrs in year from tax loss carryforwards. Includes gains of 76,000 dlrs and 378,000 dlrs in 1985 qtr and year, respectively. Reuter 

FED'S JOHNSON SEES RISKS IN DEBT LOAD GROWTH

Federal Reserve Board Vice Chairman Manuel Johnson said the rapid recent growth in corporate and household debt burdens posed risks to the economy but should be kept in perspective. The heavy debt load "is one of our major concerns ... the risks are significant," he said in response to questions from the Eastern Economic Association, an academic group. However, he added, the recent bull market on Wall Street had also made corporate equity levels soar, keeping corporate debt to equity ratios about constant. Similarly, he said household net worth has increased at a faster pace than household debt "so that household debt-to-asset ratios have once again gone down." Nonetheless, "I think that it's something to watch carefully, and obviously it's something we do," he said. Reuter 

YEUTTER SAYS BUDGET CUT KEY TO BETTER U.S. TRADE

A reduction of the U.S. federal budget deficit will be needed to help eliminate the nation's huge trade deficit, U.S. trade representative Clayton Yeutter said. Speaking to the New York Chamber of Commerce and Industry, Yeutter said "Capital and trade flows are clearly inter-releated now. "Unless we get the budget deficit down, we will not get the trade deficit down." He did not elaborate on his views of the linkages between the two deficits. Private analysts have said that the financing of large U.S. budget deficits requires heavy capital inflows from overseas investors through purchases of U.S. Treasury and, to a lesser extent, other U.S. securities as well. "We'll make some progress in reducing the 170 billion dlr trade deficit in 1987, but there's still a long way to go," Yeutter said. He said the problem must be approached on many fronts and focus most strongly on U.S. and overseas fiscal and monetary policies to foster economic growth, U.S. competitiveness and the establishment of a "level playing field" for trade. The U.S. trade representative said the Federal Reserve under Chairman Paul Volcker has done its part to improve the trade situation by getting interest rates down. On the fiscal side, Yeutter said "the budget deficit is still our biggest problem" and there has not been enough progress toward reducing that deficit. In the international area, he said that "our major trading partners could still do more to stimulate domestic growth." Commenting on Japan, which is running around a 80 billion dlr trade surplus with the United States, Yeutter said "Japan is just not doing the job on the import side." Yeutter declined to comment on statements relating to the dollar made earlier today by Commerce Dept undersecretary of Economic Affairs Robert Ortner. In a Washington address to an Export-Import Bank sponsored meeting, Ortner said he believed the dollar at current levels was fairly priced against most European currencies, but that the yen is 10 or 15 pct undervalued. "The market will determine the dollar's proper value in the end," Yeutter said. However, he added that, if the U.S. and other nations do not take the necessary steps to cut the U.S. trade deficit, "the dollar will be the equalizer." Yeutter said there is no quick fix to the trade problem and any resort to such tactics as protectionist trade legislation or trade restrictions poses real dangers. He said "there's relatively little that Congress can do to legislate a solution to the trade problem." Protectionist legislation will only provoke retaliation by U.S. trading partners, Yeutter said. "There is no doubt in my mind about the willingness of our trading partners to retaliate against unfair trade legislation," Yeutter said, adding that policy flexibility is essential in solving international trade problems. Reuter 

CARMEL CONTAINER SYSTEMS LTD<KML> YEAR OPER NET

Oper shr 1.18 dlrs vs 58 cts Oper net 2,266,000 vs 1,037,000 Revs 45.8 mln vs 41.4 mln Avg shrs 1,924,000 vs 1,800,000 NOTE: Excludes gain of 73,000 dlrs vs 290,000 dlrs from benefit of tax loss carryforward. Results for Tel Aviv, Israel-based company translated at rate of one dlr to 1.485 new Israeli shekels. Reuter 

NEW CURRENCY PROBLEM SEEN AMONG U.S, EUROPE, JAPAN

The highly visible drama involving the yen's sharp rise against the U.S. Dollar is obscuring the fact that the Japanese currency has hardly budged against major European currencies, thus creating a new set of exchange rate distortions, Japanese and European research officials said. The officials, looking beneath the rhetoric of statements by the Group of Five (G-5) industrial nations, told Reuters the currency movements of the past two years are also creating a fundamentally new world trade picture, which is throwing up new trade tensions and imbalances. Trade figures show that the new currency alignments are already changing the Japan-U.S. Trade axis into a Japan- European Community (EC) axis, to the discomfort of Europe. In many ways, not least in terms of rare international cooperation, the September, 1985 New York Plaza pact between the U.S., Japan, West Germany, Britain and France to cut down the value of the dollar was a historic one. But it is the underlying peaks and troughs of the major currency movements which lay bare the real picture, in which the Plaza pact appears as an event of prime importance, but not necessarily central significance, the officials said. The officials said that when the Plaza agreement took place, the dollar was already on its way down. The agreement simply helped it on its way. Senior EC financial expert in Tokyo Tomas de Hora has watched the movements closely. "You have to look at the dollar's peak compared with now, and that was well before Plaza," he said. On February 25, 1985, the dollar peaked against the yen at 263.15 yen. On September 20, the Friday before Plaza, it was 242. Since then, despite massive Bank of Japan intervention and periodic market frights about further G-5 concerted action, the dollar trend has been down, down, down. Yet the ECU is now around 173.4 yen. The historical cross rates for sterling and the mark tell much the same story. The European currencies are moving back up against the yen. The close relationship between exchange rates and trade flows makes it difficult to see which is driving which, but undoubtedly the trade equation between the big three is changing. In 1986, Japanese imports and exports with the EC both grew by around 50 pct in dollar terms, five pct in yen. This gave Japan a 16 billion dlr trade surplus. Last January, Japanese exports to the EC totalled half of of sales to the U.S, against about a third in recent years. Trade with the U.S in 1986 rose 23 pct for exports and 12 pct for imports in dollar terms, but fell 13 pct for exports and 21 pct for imports in yen terms. "The basic meaning for Europe is that Japanese firms have a tremendous interest in exporting to Europe, where every unit sold maximises profits in yen terms, which is what is important to them. Suddenly, instead of the U.S., It is Europe that is laying the golden egg," said de Hora. The EC is worried. EC business also had a remarkable year in Japanese sales, but this can be explained partly due to its start from a small base, compared with total Japan-U.S. Trade. The Japanese think EC firms are now more competitive than U.S. Firms, a factor which is aggravating the exchange rate imbalance, and which will cause problems. "This currency alignment between Japan and the EC is reflecting the excellent performance of the EC countries. But therefore, Japanese goods may keep their price competitive edge," said Azusa Hayashi, Director of the First International Economic Affairs Division of the Foreign Ministry. "If you want my objective view, I don't expect a drastic improvement in our trade imbalance. Last year, we asked for moderation in exports, and this year we may have to do so again," he said. REUTER... 

WORLD BANK HEAD SAYS BRAZIL MORATORIUM TEMPORARY

World Bank president Barber Conable said he believed that Brazil would come up with a medium term economic plan and that the current debt moritorium would be temporary. Speaking briefly to reporters following an address before the Export-Import Bank, Conable said that the bank had been urging the Brazilian government to come up with a specific plan designed to work the country out of its present economic difficulty. "Brazil would like to come up with such a plan," he said, adding: "the moritorium is likely to be a temporary affair." During his formal remarks, Conable made it clear that he believed Brazil must take some specific internal action. He said "they have everyone's attention but it must be followed by a construtive plan." He said that he expected Brazilian Finance Minister Dilson Funaro, who he met with last week to discuss the Brazilian debt suspension action, to return for further discussion but did not currently have a specific meeting arranged. Conable also told the gathering of mostly commericial bankers that in order for the Baker debt initiative to work all parties to the program must be on board. Reuter 

AMERICAN HOME <AHP> UNIT TO GET RIGHTS TO DRUG

Polydex Pharmaceuticals Ltd <POLYXF> said the Canadian unit of American Home Products Corp's Ayerst Labs subsidiary will probably receive marketing and distribution rights to its cholesterol lowering drug Dexide, now in clinical trials in Canada. George Usher, president of Dextran Products Limited, the Canadian subsidiary of Polydex, said that the company will file in August to both U.S. and Canadian regulatory authorities to receive marketing approval for the drug. He also said that American Home Products would quite possibly get distribution rights to the drug in the U.S. Reuter 

TANDEM COMPUTERS <TNDM> SEES HIGHER NET

Tandem Computers Inc said it expects higher earnings and revenues in its second fiscal quarter ending March 31 against a year ago. "We feel we will continue to see higher growth in the quarter," James Treybig, president and and chief executive officer, told a meeting of securities analysts. In the second fiscal quarter last year, Tandem earned 9,950,000 dlrs or 29 cts per share on revenues of 176.3 mln dlrs. Treybig declined to offer specific projections for the quarter but he said the results might be lower than those for the first quarter of fiscal 1987, when Tandem earned 27.1 mln dlrs or 58 cts a share. He said Tandem's second quarter is traditionally slower than the first. L.F. Rothschild Unterberg Towbin analyst Frederic Cohen estimated Tandem's second quarter net at 40 to 45 cts per share. For the full year, he said he expects the computer maker to earn about 2.40 dlrs a share. In fiscal 1986, Tandem earned 1.44 dlrs a share. Treybig, who founded the Cupertino, Calif.-based company, said he has seen a rebound in computer orders in the United States. "The U.S. economy is picking up, and buying decisions are being made. We didn't see that a year ago," he said. The executive said Tandem will increase its research and development spending to about 100 mln dlrs this year from 87 mln dlrs in fiscal 1986. He said the company plans to introduce several products, including two low-end systems and a data base that uses the SQL programming language, an industry standard. Tandem also won a major order from the <Bank of Tokyo>. Reuter 

FED'S JOHNSON SAYS HE DOES NOT SEE INCREASING PRESSURE ON INTEREST RATES

AUSTRALIA ATTACKS U.S. GATT FARM RULES EXEMPTION

Australia accused the U.S. of increasing protectionism on agricultural products and called for an end to Washington's special 32-year exemption from certain GATT rules on agricultural trade. Robert Arnott, Australia's delegate to the General Agreement on Tariffs and Trade (GATT), made the appeal at a special annual meeting which reviews the 1955 U.S. waiver. "Australia today said the United States' goals of reducing U.S. barriers to agricultural trade were being contradicted by actions which in fact increased protection in trade in agriculture," the Australian delegation said in a statement. "The United States section 22 waiver is one of the basic flaws in the GATT coverage of agriculture," Arnott told the meeting. Arnott said the waiver had continually been used as a justification for "dubious protective measures" by the U.S. He listed a recent Dairy Export Incentive Program and steps to close the U.S. sugar market to imports. He also told Reuters the waiver allowed Washington to impose quotas on imports of farm products where it had domestic support programs. This covered imports of dairy products, peanuts, cotton and sugar. Asked to comment, Michael Samuels, U.S. ambassador to the GATT, told Reuters: "These charges have been made since the very beginning. The waiver is part of domestic U.S. agricultural policy, part of our law when we joined the GATT". "We have agreed to put the waiver on the table during the Uruguay Round and invite other countries to do the same with their programs. We can negotiate them all," Samuels added. Ninety-two nations are taking part in the four-year Uruguay round of talks launched in Punta del Este last September. Bargaining in agricultural goods and services (banking, tourism, insurance) is included for the first time as well as manufactured goods. Reuter 

<FREYMILLER TRUCKING INC> SETS INITIAL OFFER

Freymiller Trucking inc said it has filed for an initial public offering of one mln common shares, including 250,000 to be sold by its principal shareholder. Lead underwriters are Alex. Brown and Sons Inc <ABSB> and Bateman Eichler, Hill Richards Inc. Freymiller is a long-haul truckload carrier specializing in temperature-controlled and time-sensitive deliveries. It said proceeds will be used to reduce debt and buy equipment. Reuter 

MANOR CARE <MNR> NAMES NEW CHAIRMAN

Manor Care Inc said vice chairman Stewart Bainum Jr., 40, has been named chairman and chief executive officer, succeeding his father Stewart Bainum Sr., 67, who becomes vice chairman and chairman of the finance committee. Reuter 

VW EXPECTS FURTHER FALL IN U.S. SALES IN 1987

Volkswagen AG <VOWG.F> expects currency factors to cause a further drop in its U.S. Sales in 1987 following a 5.2 pct sales decline in the United States in 1986, board member Karl-Heinz Briam said. Briam, who described the current situation of the U.S. Market as critical, also said VW was uncertain whether it would be able in 1987 to fully match its record 1986 European sales. In 1986 the VW group, which includes Audi AG <NSUG.F>, delivered a record 981,000 vehicles to European markets outside of West Germany, a rise of 5.1 pct against 1985, Briam told a regular quarterly meeting of the Wolfsburg plant's workforce. Briam said sales conditions in Europe had generally become more difficult in 1987 because of weaker growth rates and fiercer competition in the region. Briam gave no forecast for VW domestic sales. But he said car sales in West Germany for all manufacturers combined would probably fall by a slight three to four pct from 1986's record 2.73 mln because car sales in West Germany had likely passed their peak for this business cycle. Summing up his predictions, Briam said limits to growth were becoming apparent on the VW group's most important markets but there were no grounds for great worries. The automobile industry, as far as VW was concerned, had entered its fourth consecutive good year, with VW's incoming orders and sales remaining favourable overall, he said. Briam, who is VW's director of labour relations, also said VW currently had no plans for further increases in its workforce. He told the plant's workforce that an internationally-active company like VW must be able to adjust to changed economic conditions and manage situations in which unfavourable currency relations restrict its room for financial maneuver. Briam said VW needed to hold and expand market share in order to overcome its cost disadvantages compared with some of its foreign competitors, particularly those in the Far East. This could only be done if capital-intensive plants were used as fully as possible, if the workers' qualifications were raised through comprehensive training and if working hours were arranged so that expensive production plants operated as efficiently and soundly as possible. The metalworkers union IG Metall has said it plans to push for a 35-hour working week in its sector of West Germany industry this year. Walter Hiller, the chairman of VW's works council, told the same Wolfsburg meeting that a cut in the working week to 35 hours was necessary to help reduce unemployment. He said the works council was prepared to negotiate on making working hours more flexible to suit the needs of both the company and the workforce. A seven-week strike by IG Metall in the summer of 1984 for a 35-hour week in the West German metal industry ended in a compromise that cut hours to 38.5 hours but also allowed each company in the industry to decide, in consultation with the workforce, how the reductions should be made. REUTER 

FREEPORT-MCMORAN GOLD <FAU> IN JOINT VENTURE

Freeport-McMoran Gold Co (FMG), a unit of Freeport-McMoran Inc <FTX>, said it will explore and develop gold properties in Canada in a joint venture with <Aber Resources Ltd> and <Highwood Resources Ltd>, both Canadian companies. FMG said the area is located on the Bugow property on the northeast arm of Great Slave Lake, about 75 miles from Yellowknife, Northwest Territories, Canada. FMG said that under the agreement it will either spend 7.4 mln dlrs over the next four years, or bring the property into the feasibility stage over that time. FMG said during that time it will pay Aber and Highwood 775,000 dlrs in cash that, together with the 7.4 mln dlrs, will earn FMG a 51 pct interest in all leases and claims. FMG said all expenditures and payments are in Canadian dollars. Reuter 

HAUGHEY TO SEEK EC ADVICE ON IRISH DEBT

Charles Haughey, leader of the Irish party Fianna Fail, said if he becomes prime minister following last month's Irish general election, he will seek the advice of the EC Commission on management of the country's 24 billion punt foreign debt. Haughey told a news conference he is confident of being asked to form a government when the Irish parliament meets next Tuesday. Fianna Fail won 81 of the 166 seats in the February 17 poll. Haughey said an offer of Commission help on debt management was made to him today by Commission president Jacques Delors. Haughey said:" Delors assured me we could have full recourse to the Commission for advice, guidance and expert skills in dealing with our overall financial problems, particularily in the matter of debt management." Noting current debt servicing charges are about two billion punts a year, he added :"If we could achieve any significant improvement in the management and reduction in the cost of servicing, it could have significant budgetary benefits." He added that he would seek advice, not a Community loan. However, Haughey said Ireland had in the past used its position within the EMS to make borrowings in Europe at favorable interest rates, notably for onlending to its farming sector. "It is a mechanism which we have availed ourselves of before and we would look at it again," he said. Haughey said he regarded as "almost paramount" the maintenance of the punt's current position within the European Monetary System. He criticized the attitude of the outgoing Irish government in recent EMS realignments -- the punt was devalued by eight pct last August. "Until 1983, the policy of the Irish government was to was to adopt a neutral stance in any realignments within the EMS. I believe that policy was right," Haughey said. Reuter 

FIRST UNION <FUNC> TO BUY FLORIDA BANK

First Union Corp said it has agreed to acquire First State Bancshares Inc of Pensacola, Fla., and its First State Bank of Pensacola subsidiary for about 457,000 common shares. First State has assets of about 110 mln dlrs. The acquisition, expected to be treated as a pooling of interests, is expected to be completed in the third quarter of 1987 subject to approval by regulatory agencies and First State shareholders. Reuter 

OPPENHEIMER RAISES NWA <NWA> EARNINGS ESTIMATE

Oppenheimer and Co analyst Robert McAdoo raised his 1987 earnings estimate for NWA Inc, parent of Northwest Airlines, following a strong quarterly report by the company yesterday, according to Oppenheimer market strategist Michael Metz. NWA shares rose 1-5/8 to 74-3/8 in active trading. McAdoo raised his 1987 estimate to 7.50 dlrs a share from five dlrs and maintained a buy recommendation on the stock, Metz said. McAdoo was traveling and could not be reached for comment. Yesterday, Minneapolis-based NWA reported fourth quarter net of about 9.8 mln dlrs or 45 cts a share against a loss of two mln dlrs or nine cts in the 1985 quarter. For the year, earnings rose to 76.9 mln dlrs or 3.26 dlrs from 73.1 mln or 3.18 dlrs. The 1986 results include Republic Airlines since NWA acquired it Aug 12, 1986. Reuter 

HOUSE 0/92 FARM PROPOSAL SEEN SPARKING DEBATE

A House Agriculture Committee meeting later today to draft a disaster aid bill is expected to spark a debate between lawmakers who want to expand the 0/92, or "de-coupling," provision to cover feedgrains, and those who oppose 0/92 or want it severely limited, Congressional sources said. The disaster aid bill as it now stands calls for a one-year 0/92 pilot program for 1987 crop wheat and the 1988 winter wheat crop. The bill would allow farmers to forego planting and still receive 92 pct of deficiency payments. The administration has strongly urged that the bill be expanded to feedgrains and to more than one year. It is difficult to tell in what form the 0/92 provision will emerge from the committee, the sources said. Proponents of an expansion of 0/92 maintain there are large estimated cost savings of such a bill -- ranging from estimates by the administration of 200 to 500 mln dlrs. Opposition to a reopening of the 1985 farm bill at this time is the major reason cited by those against an expansion of the bill, committee staffers said. The 0/92 plan is scheduled to be discussed at 1530 EST. A conflicting floor vote delayed the start of the meeting, and staffers said it may have to be delayed even until next week. Such a delay would not bode well for proponents of an expanded 0/92 program, since spring planting in many areas of the country will be underway in the next few weeks and signup for the 1987 wheat and feedgrains program ends March 30. Farmers are now making their planting decisions, so something has to be done quickly if a 0/92 program is to be implemented, an Agriculture Department source said. An expansion of 0/92 to feedgrains was opposed in last week's subcommittee hearing on the bill, with subcommittee chairman Dan Glickman, D-Kan., saying that more study of the consequences of decoupling on feedgrains plantings was necessary. Major commodity groups, including the National Corn Growers, the American Farm Bureau and the National Cattlemen's Association, have voiced strong opposition to 0/92. But proponents of an expanded 0/92 argue that the bill currently is not equitable for all grains producers, so it should be extended to other crops. There will be difficulty in limiting 0/92 to wheat, said Gene Moos, aide to house majority leader Tom Foley, D-Wash. Projected cost savings, in the current atmosphere of try to decrease farm expenditures, would also be hard to ignore in the debate to expand the 0/92 application, Moos said. Rep. Charles Stenholm, D-Tex., may be planning to introduce a bill to restrict 0/92 to only 1987 crop wheat, with the argument that now is not the time to vote in favor of any major changes in the farm bill. "Stenholm's bill is not a rejection of 0/92, only of the timing," a congressional staff member said. Rep. Arland Stangeland (R-Minn.) is reported to have an amendment to expand the 0/92 provision to 1987 and 1988 feedgrains. Reuter 

PENNEY <JCP> TO SELL TELEMARKETING SERVICES

J.C. Penney Co said it will sell telemarketing services to other companies through a newly established wholly-owned subsidiary, Telemarketing Network Inc. The New York-based subsidiary will use a network of 14 telemarketing centers Penney has already established. The centers are part of its catalog marketing operation. A large domestic motel chain already uses the network for its reservations services, Penney said. Frank Engels, director of telemarketing, was named chairman of the new subsidiary. Reuter 

ZEHNTEL <ZNTL> FILES FOR DEBT OFFERING

Zehntel Inc said it filed a registration statement with the Securities and Exchange Commission covering a proposed public offering of 13.5 mln dlrs principal amount of convertible subordinated debentures. The offering will be managed by Sutro and Co Inc, Zehntel said. It said proceeds from the proposed sale will be used to repay bank debt, fund a deposit of the first three interest payments on the debenture, repurchase 350,000 common shares at 4.46 dlrs per share from former parent company Plantronics Inc <PLX> and to fund future product development and marketing. Reuter 

YELLOW FREIGHT <YELL> SEES LOWER 1ST QTR NET

Yellow Freight System Inc said its expects 1987 first quarter profits to be substantially below the 14.2 mln dlrs or 50 cts a share earned in the same period a year ago. Revenues have been depressed by recent price discounting, added costs from expansion programs, lower shipping volumes and increased costs associated with severe weather conditions on the East coast, company officials told analysts here. An industry-wide rate hike of 2.9 pct, set for April one, will cover Yellow Freight's upcoming labor and other costs but will not make a contribution to operating margins, it said. Reuter 

NOVA SUBSIDIARY RAISES U.S. POLYETHYLENE PRICES

Novacor Inc, a unit of <Nova, an Alberta Corp>, said it would raise prices for U.S. customers by five cts a pound on linear low-density and low-density polyethylene, effective April 1. The company did not immediately disclose the actual new prices. A Novacor official later said in reply to an inquiry that the new prices, effective April 1, would range from 31 U.S. cts a pound to about 38 cts. The official said the increase reflected improved market conditions, although he noted the new prices would still be lower than those of three years ago. Reuter 

GM <GM> CLOSING TWO PLANTS TEMPORARILY

General Motors Corp said it is closing two plants for brief periods in March, placing 5,500 on temporary layoff for up to two weeks. The company said its Hamtramck Buick-Oldsmobile-Cadillac assembly plant in Detroit will be down from March 9 to March 16 due to excess inventory of several models, placing 2,000 workers on temporary layoff. Its Chevrolet-Pontiac-GM of Canada assembly facility in Norwood, Ohio, will be closed two weeks from March 9 to 23 due to material shortages, affecting 3,500. There is no change in the 37,000 hourly workers out of work indefinitely. Reuter 

BANKERS TRUST <BT> SELLS EQUITY CONTRACT NOTES

Bankers Trust Co is raising 200 mln dlrs through an offering of subordinated equity contract notes due 1997 with an eight pct coupon and par pricing, said lead manager Shearson Lehman Brothers Inc. That is 87 basis points more than the yield of comparable Treasury securities. Non-callable to maturity, the issue is rated Aa-3 by Moody's Investors Service Inc and AA by Standard and Poor's Corp. Salomon Brothers Inc co-managed the deal. Reuter 

MOULINEX STAKE SOLD TO SOME 50 INSTITUTIONS

The 20 pct stake in Moulinex SA <MOUP.PA> sold by <Scovill Inc> of the U.S. Was spread among at least 50 institutional investors worldwide, a spokesman for brokers James Capel said. Capel handled the deal. The buyers were based in centers ranging from Europe to North America and Japan, he added. Moulinex's capital is split among Jean Mantelet, president of the company, with 42 pct, along with private investors holding 38 pct and the 20 pct which has just been sold, company sources said earlier in Paris. REUTER 

TALKING POINT/PIEDMONT <PIE>

Carl Icahn's bold takeover bid for USAir Group <U> has clouded the fate of Piedmont Aviation Inc, which was being courted by USAir. Yesterday, Icahn's Transworld Airlines Inc <TWA> made a 1.4 billion dlr offer for USAir Group. The move complicated a USAir takeover offer for Piedmont, which was believed to be close to accepting the bid. Today, USAir rejected Icahn's 52 dlr per share offer and said the bid was a last-minute effort to interfere in its takeover of Piedmont. Icahn was unavailable for comment. Piedmont fell one to 68-5/8 on volume of 963,000. TWA was off 3/8 to 31-1/2. USAir fell 1-3/8 to 47-3/4 as doubt spread it would be taken over. Analysts and market sources view the TWA bid as an attempt to either trigger a counter offer from USAir or to attract a suitor who might want both airlines once they merged. "The next move is either Icahn starts a tender offer or Piedmont and USAir announce a deal," speculated one arbitrager. Some arbitragers said there is now some risk in the current price of Piedmont since it is not clear that USAir's bid will succeed. Piedmont's largest shareholder and other suitor, Norfolk Southern Corp <NSC> has offered 65 dlrs per share for the company. USAir offered 71 dlrs cash per share for half of Piedmont stock, and 73 dlrs per share in stock for the balance. Some arbitragers, however, believe the depressed price of Piedmont offers a buying opportunity since the airline is destined to be acquired by someone. USAir, they said, is the least likely to be bought. Icahn, who has long talked about further consolidation in the airline industry, also offered USAir the alternative of a three-way airline combination, including TWA and Piedmont. But Wall Street has given little credibility to Icahn's offer, which lacked financing and was riddled with contingencies. Still, he has succeeded in holding up a merger of two airlines - both of which analysts said would fit well with TWA. "You can't discount him," said one arbitrager. Analysts, however, said Icahn would have to prove he is serious by following through with his threats or making a new offer. In making the offer for USAir, Icahn threatened to go directly to shareholders for 51 pct of the stock at a lower price if USAir rejected his offer. "It's clear Icahn wants to sell and he's bluffing," said one arbitrager. Analysts said the 52 dlr per share offer was underpriced by about six dlrs per share. Some analysts believe Icahn's proposed three-way airline combination might face insurmountable regulatory hurdles, but others believe it could be cleared if the companies are acquired separately. "TWA would have to be the surviving company for the deal to work," said one analyst. Analysts said such a merger would be costly and complicated. TWA has the best cost structure, since Icahn succeeded in winning concessions from its unions. In order for the other carriers to come down to TWA's wage scale in a merger, TWA would have to be the surviving entity, analysts said. Such a move does not necessarily free Icahn of TWA, they said. They said he showed skill in reducing Ozark Airlines' costs when he merged it into TWA last year, and he might be a necessary ingredient for a merger to work. However, other analysts speculated the managements of Piedmont and USAir would not tolerate Icahn as head of a new company. They said a USAir acquisition of TWA might be a way for him to exit the company if USAir's airline is then merged into TWA. Reuter 

BAKER INT'L <BKO> HOPES TO COMPLETE MERGER

Baker International Corp treasurer Eric Mattson said the company hoped to iron out snags in a proposed merger with Hughes Tool Co <HT> but declined to say if or what compromises might be acceptable to it. The proposed merger that would create a 1.2 billion dlr oilfield services company was thrown into limbo yesterday when Hughes management, balking at the terms of a government consent decree, offered a counter-proposal to Baker. Earlier today, Hughes adjourned a shareholders meeting called to vote on the proposed merger until March 11 and said it hoped to resume negotitations with Baker. Hughes chairman W.A. Kistler told reporters that Hughes did not want to sign the Department of Justice consent decree until after Baker's submersible pump and drilling bit operations were sold. Mattson told Reuters that Baker still believed a merger was possible between the two giant oilfield service companies. "The company's position is we would like to see the merger be completed, which is in the best interests of our shareholders and their shareholders," Mattson said. "Our goal is for a merger to occur. Because of the litigation, I can't go any further than that," he said. Baker filed a lawsuit in Texas state court late yesterday to force Hughes to abide by terms of the proposed consent decree. Mattson also declined to comment on whether the directors of Baker and Hughes have scheduled any meetings to discuss the merger. Reuter 

LUCKY STORES INC REINSTATES QUARTERLY DIVIDEND AT 12.5 CTS PER SHARE

EASTERN AIRLINES <EAL> FEBRUARY LOAD FACTOR UP

Eastern Airlines Inc said its February load factor rose 6.73 percentage points to 64.91 pct from 58.18 pct a year ago. The company said February revenue passenger miles rose 21.8 pct to 3.02 billion from 2.48 billion a year ago. Available seat miles in the month of February rose 9.2 pct to 4.66 billion from 4.27 billion a year ago. For the year-to-date period, load factor was up 4.64 percentage points to 61.96 pct from 57.32 pct a year ago, the company said. Revenue passenger miles rose 14.5 pct to 6.01 billion, and available seat miles rose 5.9 pct to 9.70 billion. Reuter 

HOMESTEAD FINANCIAL <HFL> UPS CASH DIVIDEND

Homestead Financial Corp said it has increased the dividend on its Class A common shares to 6-1/4 cts a share, from five cts prior, while declaring an initial dividend on its Class B common stock of 3-3/4 cts a share. Homestead said the two classes of stock emerged as part of its recapitalization plan which also doubled the number of authorized common, comprising both classes, to 11 mln shares. Homestead said the dividends are payable on April 6, to shareholders of record March 20. Homestead also said that class b shareholders who want to increase their dividends may exchange their shares for an equal number of class A shares on or before March 20. Reuter 

ELECTRO-SENSORS INC <ELSE> YEAR OPER NET

Oper shr 52 cts vs 51 cts Oper net 626,013 vs 613,127 Sales 4,544,929 vs 4,402,572 NOTE: Earnings exclude extraordinary securities loss of 29,532 dlrs, or two cts a share vs a gain of 81,358 dlrs, or seven cts a share Reuter 

TRW <TRW> PROMISES TO CORRECT CONTRACT PRACTICES

The chairman of TRW, inc said his company had overcharged the government on defense contracts but promised to prevent the improper conduct from recurring. "There were a number of instances of mischarging and other irregularities in TRW's defense contracting business," TRW chairman Ruben Mettler said in testimony to the House Oversight subcommittee. "As the person ultimately responsible for the management of TRW, I am determined to do everything in my power to prevent any recurrence," Mettler said. TRW holds over 3 billion dlrs in defense contracts. Subcommittee chairman John Dingell, a Michigan Democrat, said TRW was being sued by the Justice Department and was being investigated by federal grand juries in Colorado and Cleveland. Mettler said the overcharges had been uncovered by TRW's internal procedures and all were reported to the government. "In every case we advised the government of our findings and committed to make restitution. We immediately put a stop to the practices in question and disciplined those who were culpable," he said. Mettler said TRW had hired a new chief financial officer, a vice president of internal audit and a corporate controller. He said the internal audit department was being strengthened and a corporate review board had been established to monitor compliance activities. He said a business ethics and conduct council had also been created and over 15,000 managers and employees would be given training programs on contract compliance. Reuter 

CHINA ADDS, CANCELS WHEAT COMMITMENTS - USDA

China has added 90,000 tonnes of U.S. wheat to its purchases for delivery in the 1987/88 season and cancelled 30,000 tonnes of wheat purchases for delivery in the 1986/87 season, the U.S. Agriculture Department said. According to the department's Export Sales Report covering transactions in the week ended February 26, China has outstanding wheat commitments for the 1986/87 season of 30,000 tonnes and 420,000 tonnes for delivery in the 1987/88 season. The wheat season begins June 1. China has total corn commitments for 1986/87 of 1,011,200 tonnes and soybeans commitments of 157,500 tonnes. The season for corn and soybeans began September 1. Reuter 

OPEC PRESIDENT SAYS OUTPUT WELL BELOW CEILING

Opec Conference President Rilwanu Lukman said the group was producing well below the 15.8 mln bpd ceiling it set in December, partly because liftings had been delayed or postponed by customers unwilling to pay fixed Opec prices. Lukman, during a brief visit to London on his way home from Jamaica, told Reuters in a telephone interview that in February, Opec had underproduced partly because members were strictly abiding by production quotas and partly because they were resisting the temptation to sell at discounts to official prices of around 18 dlrs a barrel. "We are determined to stand firm by the (December) accord," he said. "I have spoken to every other Opec minister and they are committed to making the accord work," he said. Lukman gave no specific figures for February output. He said the Opec secretariat in Vienna was finalizing these figures. Told of a Reuters survey published today which estimated that Opec output so far this week was below 15 mln bpd, he said; "That could well be correct." Opec"s news agency Opecna today issued a statement saying group output was "well below" its ceiling in February. But it gave no figures. But one source close to Opec indicated that February output may have been between 15.3 and 15.5 mln bpd. The Reuter survey estimated Opec February output at around 16 mln bpd. Opec agreed in December to cut output by 7.25 pct to 15.8 mln bpd and to return to fixed prices starting February 1. Lukman said Qatar, Nigeria, Saudi Arabia and Iran had all produced in February below their Opec quotas. Iraq, which said it would not honour its 1.466 mln bpd quota under the December pact, had produced less than had been anticipated, he said. Lukman said that some industry reports "may be correct" that in February, Nigeria propuced 75-100,000 bpd below its 1.238 mln bpd quota, Saudi Arabia 500,000 bpd less than its 4.133 mln allocation and Qatar 20 to 30 pct under its 285,000 bpd quota. He said that sweet crudes such as those produced by his country were coming under price pressure because they were currently officially priced above sweet North Sea grades and the United States" West Texas Intermediate (WTI) crude. However, he said Opec in December had anticipated that demand would be slack at this time of year for seasonal reasons and expected the market to firm in two to three weeks. "We have to be patient for two or three weeks. The market is now firming on actual fundamentals," he said, adding that he expected it to go "up and up" even beyond official prices after early April. This is when, traditionally, there is more demand for gasoline-rich crudes such as Nigeria"s. The Opec President said producers such as Kuwait, Venezuela and Indonesia were having less problems with output than producers like his own country because they exported oil products. Also, some of Venezuela"s heavy grades were outside the Opec pricing system, he said. Lukman said that if refiner-buyers, now refusing to lift some Opec oil at official prices, instead used their own stocks and ran them down to "dangerous levels," they would eventually have to buy Opec oil. "When they realise it is not a free-for-all (in the market) they will realise they should buy now instead of paying more later on," he said. Lukman, asked about industry reports that Nigeria was being pressured by equity producers for better terms, said it was important to know that terms with them were negotiable, flexible and under constant review, not only when the market seemed weak. He said that so far, no meeting of the seven-nation ministerial differentials committee had been scheduled and that such a meeting, now twice-postponed, was not a high priority for Opec at the moment. "At this time, we have to get our priorities right," he said. "The most important thing now is ensuring that the accord is working, not dealing with a differential of cents between grades." But if any Opec member raised concerns or objections over the differential system, a meeting would be called, he said. Reuter 

FED'S JOHNSON SEES INTEREST RATES STABLE

Federal Reserve Board Vice Chairman Manuel Johnson said he does not see increasing pressure on interest rates but said the Fed would watch out for developments that could push them higher. Johnson said that it was too early to tell if recent indicators on the economy contradicted Fed expectations of continued modest growth. "We are not anticipating any problems or see increased interest rate pressures," Johnson told reporters after a speech to the Eastern Economic Association. However, Johnson said the Fed would be alert to an excessive depreciation in the dollar, a rise in bond yields, increases in commodity prices, or other variables. "We would have to pay attention," he said. Recent indicators on retail sales and factory orders that indicated weakness in the economy could be presenting an inaccurate picture, Johnson said. The more recent data are too caught up in statistical adjustment problems having to do with the end of the year and the beginning of the year, he said. Asked if the Fed was continuing to be generous with reserves, Johnson said, "We have accommodated reasonable, non-inflationary real growth." He said the Fed was able to do that because of the decline in inflation expectations and monetary velocity. "I don't think we can be accused of being too generous," he added. Reuter 

LUCKY STORES INC <LKS> REINSTATES QUARTERLY DIV

Qtly div 12.5 cts vs nil Pay April 3 Record March 16 Note: in quarters preceeding 4th qtr, dividend was 29 cts. Reuter 

CARMEL CONTAINER SYSTEMS LTD<KML> YEAR OPER NET

Oper shr 1.18 dlrs vs 58 cts Oper net 2,266,000 vs 1,037,000 Revs 45.8 mln vs 41.4 mln Avg shrs 1,924,000 vs 1,800,000 NOTE: Excludes gain of 73,000 dlrs vs 290,000 dlrs from benefit of tax loss carryforward. Results for Tel Aviv, Israel-based company translated at rate of one dlr to 1.485 new Israeli shekels. Reuter 

U.S HOUSE LEADER URGES FARM CREDIT RECUE CAUTION

House Majority leader Thomas Foley (D-Wash.) has urged Congress to give the farm credit system a few more months to reorganize itself before rushing into a federal rescue of the system, a senior aide to Foley said. Gene Moos, agricultural aide to the Majority leader, told Reuters that while Foley believes action will be necessary later this year to rescue the system, a bail-out package is not necessarily needed immediately. Foley's view appears to differ with the Senate leadership who have said they hope to have farm credit legislation under consideration before Congress breaks for Easter April 9. Sen. David Boren (D-Okla.) chairman of the Senate Agriculture subcommittee responsible for the farm credit issue, last week pledged to consider a bill before Easter. Boren said his subcommittee would proceed even if neither the system's regulator, the Farm Credit Administration (FCA) nor the system itself ask for aid. Chairman of the FCA Frank Naylor, like Foley, has expressed caution about rushing to a bail-out, prefering to wait a few months and keep pressure on the system to reform itself, farm credit sources said. Reuter 

BILL PROPOSED ON INTERNATIONAL DEBT FACILITY

Rep. John LaFalce, D-N.Y., has introduced a bill to create an international debt adjustment facility to deal with third world debt. He said in a statement the facility would purchase debt of a debtor nation at a discount and then sell the loans to private investors. LaFalce said the facility could use funds of the World Bank and International Monetary Fund as collateral to for the necessary financial banking to issue debt instruments. LaFalce, a member of the House Banking Committee, said the facility was needed because most American banks were refusing to fund more foreign debt and debtor countries were having trouble paying the loans on schedule. Reuter 

CUBAN CATTLE THREATENED BY DROUGHT

Over 750,000 head of cattle are suffering the effects of a severe shortage of feed as a result of a prolonged drought in the normally rich sugar and cattle producing province of Camaguey, the newspaper Granma reported. The province produces 23 pct of Cuba's beef and is the island's number two province in milk production. Granma said 20,000 head of cattle are now in imminent danger. The newspaper said a "cattle emergency" had been decreed and the cattle are being rounded up. Some 110,000 head have been transferred to the sugar cane conditioning centers where newly harvested cane is cleaned before being sent to the mills. The cattle are being fed the residue left after cleaning the cane stalks. 32,000 head have been sent to nearby provinces of Las Tunas and Ciego de Avila. Despite Cuba's ambitous cattle development plans, beef rationing has been in effect over the past 25 years. In Havana, each Cuban receives approximately 3/4 lb of rationed beef every 18 days. In a major area hit by drought, San Miguel, practically no rain has fallen in the past 14 months. Grazing lands are parched and the region was unable to produce 117,000 tonnes of silage projected in its annual plan. Granma said rainfall over the past year has been less than 50 pct of normal precipitation. Reuter 

U.S. TO SET ORANGE JUICE DUTIES MONDAY

The Commerce Department on Monday will set final dumping duties on frozen orange juice from Brazil, department officials said. A preliminary duty of 8.54 pct was set last Oct 17 on the imports, which run at about 700 mln dlrs a year. Commerce's ruling on Monday will reset the duties on the basis of more detailed cost information, industry officials said. The duties now are being assessed on a temporary basis, pending a final ruling by the U.S. International Trade Commission (ITC) on whether the imports are injuring the domestic orange industry. The ITC ruled provisionally last June 18 that the domestic industry was being injured by Brazilian orange juice imports. A complaint that the Brazilian imports were being dumped at below costs on the U.S. market was filed on behalf of U.S. growers by the Florida Citrus Mutual, a Lakeland, Fla., group, Alcoma Packing Co, Inc, and Barry Citrus Products. U.S. officials say about half of the orange juice consumed in the United States comes from Brazil. reuter 

LONGVIEW FIBRE CO <LFBR> QUARTERLY DIVIDEND

Qtly div 40 cts vs 40 cts Pay April 10 Record March 25 Reuter 

CALNY <CLNY> DIRECTOR RESIGNS OVER LAWSUIT

Calny Inc director and former president and chief executive officer said he is resigning from Calny's board because of the company's recently announced lawsuit against Pepsico Inc <PEP> and its La Petite Boulangerie. In a statement, Larvive said the suit is a "lose-lose" situation for Calny, which is the only franchisee for La Petite Boulangerie and is the largest francisee of PepsiCo's Taco Bell Corp. Reuter 

BEI HOLDINGS LTD <BEIH> 1ST QTR JAN 31 NET

Shr 13 cts vs eight cts Net 1,364,712 vs 881,082 Rev 11.6 mln vs 11.5 mln NOTE: Qtr includes extraordinary gain of 586,826 dlrs, or six cts a share, versus 183,850 dlrs or two cts a share in fiscal 1986's first qtr. Reuter 

ENDEVCO <EI> AGREES TO BUY MISSISSIPPI PIPELINE

Endevco Inc said it has agreed to acquire a 17.5-mile, 16-inch pipeline in Marion and Pearl River Counties, Mississippi, for undisclosed terms. The company said the pipeline was recently constructed from the Poplarville gas field in Pearl River County to a proposed interconnect with a pipeline operated by Occidental Petroleum Corp's <OXY> United Gas Pipe Line Co subsidiary in Marion County but has nmot been placed in service. Endevco said it plans to extend its existing Mississippi Fuel Co System in southern Mississippi 18 miles to the new pipeline. Reuter 

NORFOLK SOUTHERN <NSC> COMPLETES COAL PURCHASE

Norfolk Southern Corp said it completed the purchase of 112 mln tons of recoverable coal reserves in Pike County, Ky., from Rouge Steel, a unit of Ford Motor Co <F>. Norfolk Southern said the deal involves about 30,000 acres of coal bearing properties that will be administered by the company's Pocahontas Land Corp unit. Reuter 

ATLANTIC CITY ELECTRIC CO <ATE> SETS PAYOUT

Qtly div 65-1/2 cts vs 65-1/2 cts prior Pay April 15 Record March 19 Reuter 

KEMPER CORP <KEMC> REGULAR PAYOUT SET

Qtly div 15 cts vs 15 cts previously Pay May 29 Record May Eight Reuter 

FFB <FFCT> SETS INITIAL QUARTERLY DIVIDEND

FFB Corp, parent of the First Federal Bank of Connecticut FSB, said it declared an initial quarterly dividend of five cts per share. The company said the dividend is payable March 31 to holders of record March 17. Reuter 

GM <GM> TO OFFER AIRBAGS, WANTS RULES RELAXED

General Motors Corp said it plans to offer driver-side airbags as standard equipment on 500,000 cars in the 1990 model year and up to three mln by 1992 if a federal safety rule is relaxed for domestic automakers. A GM spokesman said the statement comes in advance of a congressional hearing tomorrow in Washington on a proposed extension of a federal deadline for installation of "automatic occupant protection systems" on all cars beyond the current September, 1989, target. GM previously said it would offer airbags as optional equipment on its 1988-model Oldsmobile Delta 88 models. Reuter 

RADTECH <RADT> BOARD REMOVES CHAIRMAN

Radtech Inc said its board has removed Ronald G. Williams as chairman and chief executive officer and has elected President Samuel A. Francis chief exeuctive officer. Williams is the majority owner of <Forum Cos Inc>. On December 12, Radtech exchanged 10 mln of its shares for 20,000 Forum shares. Of the 10 mln, 7.5 mln went to Williams and 2.5 mln to Forum's other owner, <Audley Inc>. In addition to the 10 mln shares involved in this transaction, Radtech has 9.9 mln shares outstanding. On January 27, Radtech said, it announced an agreement to rescind the Forum transaction. Radtech said six mln of its shares held by Williams and the 20,000 Forum shares were turned over to Radtech's attorney's. Subsequent to the rescission agreement, however, Williams and Audley have refused to recognize Radtech's position that a recission has occurred, it said. On March 3, the company said, its attorneys filed an action in the U.S. District Court for the District of New Mexico giving control of both blocks of stock to the court and asking it to rule on the recission. Radtech said it intends to defend its position in the legal proceeding, which names the company, Williams and Audley, that the rescission has occurred, that all 10 mln shares it issued should be returned, and that the 600,000 dlrs of Radtech funds used by Forum should be returned. The company also said a dispute exists whether Williams continues to serve on its board. Reuter