Blue chip stocks rebounded Monday in light trading driven. The Dow Jones industrial average, which fell 64 points last week, rose 37.83 points to close at 3,174.41.
NO TREASURY, TORONTO REPORTS. Because of the Columbus Day holiday, the Treasury bill auctions usually held on Mondays will be held today. Also, the Toronto Stock Exchange was closed on Monday for Canadian Thanksgiving.
third insurance firm
Ocean Casualty Insurance Co. was ordered liquidated Monday because of losses resulting from Hurricane Andrew.
Circuit Judge Ralph Smith of Tallahassee named the state Insurance Department as receiver of the Miami-based company that primarily covered automobiles.
The company has about 21,000 policyholders and their claims will be paid by the Florida Insurance Guaranty Association, said Insurance Commissioner Tom Gallagher. The association was created by the Legislature to pay claims against insolvent companies.
It is the third company to go under because of Andrew, the previous ones being Florida Fire & Casualty of Fort Lauderdale and Great Republic of Miami.
Ocean Casualty customers will have 30 days of continued protection, beginning Monday, through the guaranty association to give them time to find new insurers.
For more information, call a toll-free help line, 1-800-882-3054.
GEICO REPORTS LOSS. GEICO Corp. on Monday raised its estimates of gross losses from Hurricane Andrew to $135-million or more, and said third-quarter earnings will fall as a result. The Washington-based insurer said its new estimate on losses from the hurricane that devastated South Florida was based on a review of all auto and property losses reported through Oct. 8. On Sept. 23, the company put its losses at about $80-million.
PETSMART TO EXPAND. Petsmart Inc., a fast-growing Phoenix-based pet supply superstore chain, Monday unveiled plans to more than double its current total of 50 stores by the end of 1993. By February four more stores will open on Florida's west coast, including one at University Plaza in Tampa and another at the Lighthouse Crossing Shopping Center in St. Petersburg.
UTILITY DIVIDEND GROWTH TO SLOW. Steady dividend increases in the electric utility industry are set to slow in response to limits by federal and state regulators on allowed rates of return, Florida Progress Corp.'s chief financial officer said Monday. Speaking in Scottsdale, Ariz., at a conference sponsored by the Edison Electric Institute, David R. Kuzma said dividend payouts in the industry are already high. He said the dividend increase this year at St. Petersburg-based Florida Progress, the parent of Florida Power Corp., would likely be between 2 and 3 percent. The dividend increase set in November 1991 was 3.6 percent.
E-SYSTEMS INC. E-Systems Inc. reported net income for the third quarter of $31.3-million, or 95 cents a share, on sales of $556.5-million. In the same quarter last year, the Dallas-based defense electronics company earned nearly $28.2-million, or 85 cents, on sales of $496.7-million. The company reported sales and earnings met management's expectations. E-Systems employs 1,750 people in St. Petersburg.
MOLEX INC. Molex Inc. reported net income for the first quarter was $18.4-million, or 37 cents per share, on sales of $215.2-million. In the year-ago quarter, the company earned $14.9-million, or 30 cents per share, on sales of $187-million. Molex, a Lisle, Ill.-based company which has two facilities in Pinellas County, designs and manufactures a broad line of electronic connectors, flat cables, switches and associated application tooling.
BANK EARNINGS. More banks, including Alabama's SouthTrust Corp., report quarterly earnings. See story, 6E.
DOW DOLLAR YIELD
30 industrials vs. Japanese yen 30-year U.S. bond
3174.41 120.85 7.51
+37.83 -0.95 +0.07