DOW FALLS. The stock market lost ground Tuesday after struggling to hold onto spotty gains for most of the session. The Dow Jones average of 30 industrial stocks fell 22.03 points to close at 2,494.06. Persistent haggling over the federal budget continued to weigh on the market.Nation
Growth in income
slows to a crawl
U.S. personal income growth slowed during the second quarter, and incomes actually declined in Iowa and Nebraska, the Commerce Department reported Tuesday.
A study by the department's Bureau of Economic Analysis showed national income grew by only 1.3 percent from April through June, down from 2.1 percent in the first quarter.
Alaska led all states with 2.4 percent job growth; Florida was sixth at 1.8 percent.
The report was a reflection of the sluggish growth of the economy, which dipped from 1.7 percent in the January-March quarter to 0.4 percent in the next.
JAPANESE TO BACK DISNEY. Walt Disney Co. said Tuesday it has formed a film production financing partnership worth at least $600-million, backed largely by Japanese investors. Once its last partnership with U.S. investors expires next year, the new partnership, Touchwood Pacific Partners I, will become the main source of finance for all live-action films at Disney's three studios, Disney, Touchstone and Hollywood Pictures. Touchwood Pacific's financing will be based on $180 million raised from Japanese investors and $420-million from a consortium of U.S. and Japanese banks.
7-ELEVEN PLAN APPROVED. The debt-laden parent of the 7-Eleven convenience store chain edged toward bankruptcy Tuesday as bondholders approved an unusual reorganization plan. Although no official results were announced, Southland Corp. bondholders apparently endorsed a so-called "prepackaged" bankruptcy plan under which Japan's Ito-Yokado Co. would pay $430-million for 70 percent of the Dallas-based company. Bondholders would get 25 percent of the company, while the founding Thompson family of Dallas would end up with just 5 percent.
KODAK UNVEILS DESKTOP SYSTEM. Eastman Kodak Co. said Tuesday it plans to bring its recently unveiled photographic compact disc system to computer desktop publishing for those who want to produce full color pictures as part of their computer-generated documents.
WARNER BUYS MGM RIGHTS. Time Warner's Warner Bros. unit will pay $125-million for video rights to many MGM-UA films, with the money helping to fund Pathe Communications Corp.'s $1.3-billion buyout of MGM-UA Communications Co., the companies said.
GM IDLES TRUCK PLANTS. General Motors Corp. is planning to shut down its Truck & Bus Group pickup assembly plants in Pontiac, Mich., and Fort Wayne, Ind., for two weeks next month due to slow sales, an official said Tuesday.
GDC PLAN REJECTED. A federal judge on Tuesday rejected a second proposed plea agreement in the criminal case of General Development Corp. and its two top former officials, again citing inadequate restitution for victims. A 16-count federal indictment charges the troubled Miami-based home builder and the two executives with fraud and conspiracy in a 7-year scheme to sell overvalued homes in GDC's nine Florida communities. The plea proposal placed a $160-million cap on restitution paid by the company to lot-buyers who could prove they were defrauded. U.S. District Judge Lenore Nesbitt also rejected an earlier agreement in July that would have capped restitution at $100-million.
MAYORS PLEDGE UNITY. Mayors Sandy Freedman of Tampa, Rita Garvey of Clearwater and Robert L. Ulrich of St. Petersburg pledged regional cooperation Tuesday during the eighth annual Tampa Bay Business 100 event at the Tampa Omni Hotel. Pinellas-based Eva-Tone Inc. received the 1990 Corporate Citizen of the Year award for its contributions to Abilities Inc. of Florida, a non-profit organization that provides training and job placement for disabled adults.
GOOD LOSES HOME. Kenneth Good, former developer of the Tampa Palms community near the University of South Florida, has lost his Tampa Palms golf course home to the lender in a foreclosure auction. Barnett Bank of Tampa bid $422,000 Monday at the auction at Hillsborough County Courthouse to take back the house. Barnett held a judgment of $452,964 against Good for repayment of the mortgage loan plus interest.
SOUTHEAST BONDS LOWERED. Bond ratings for Miami-based Southeast Banking Corp. were lowered Tuesday by Duff & Phelps, a bond rating agency. Senior debt fell from triple-B-minus to double-B-plus. Subordinated debt fell from double-B-plus to double-B. Preferred stock fell from double-B to single-B-plus. The rating for commercial paper has been withdrawn.
SECURITY TAG. Security Tag Systems Inc. said its profits for its second quarter ended Sept. 30 rose 48 percent to $533,418, or 4 cents a share, largely as a result of the sale of its half interest in Securitag International Ltd. in Britain. In the year-ago quarter, the St. Petersburg-based manufacturer of anti-theft devices had net income of $278,367, or 2 cents a share. Revenues were $4.9-million, up from $3.5-million.
McDONNELL DOUGLAS. McDonnell Douglas Corp. reported a third-quarter profit of $248-million, or $6.46 a share, on Tuesday, compared to $38-million, or 98 cents a share, a year earlier. Revenues for the quarter totaled $4.17-billion, up 12 percent from $3.7-billion.