Yields on two-year Treasury notes rose in Tuesday's auction to the highest level in more than three years. The high yield was 6.88 percent, up from 6.55 percent at the last auction on Sept. 27. The notes will carry a coupon interest rate of 6 7/8 percent. A total of $17.3-billion in notes was sold out of bids totaling $41.6-billion.
profit, loses CEO
Continental Airlines Inc. said Tuesday it earned money in the third quarter vs. a loss a year ago. It also announced that Robert Ferguson III resigned as chief executive and vice chairman.
For the quarter, Continental's profit from operations was $7.2-million, or 22 cents a share, compared with a loss from operations of $49.6-million, or $2.37 cents per share, a year ago, according to Bloomberg Business News.
Ferguson, who led the carrier through its second bankruptcy reorganization, said he believed the time was right "to explore other career challenges."
RAYMOND JAMES FINANCIAL INC. The St. Petersburg-based financial services company reported Tuesday a decline in profits and the first drop in quarterly revenues in 10 years. Net income for the fiscal fourth quarter was $9-million, or 43 cents per share, compared with $14.6-million, or 67 cents per share. Revenues fell from $132-million to $124.9-million. Higher interest rates curtailed investment banking activity and trading profits, chairman Thomas A. James said. For the fiscal year ended Sept. 30, the company had net income of $42.1-million, or $1.97 per share, down from $49.3-million, or $2.28 per share. Revenues for the year rose from $451.7-million to a record $507.1-million.
EASTMAN KODAK CO. The photographic products company said Tuesday it earned $193-million, or 57 cents a share, on revenue of $3.53-billion in the third quarter. A year ago, largely because of $353-million in restructuring costs, it lost $68-million, or 23 cents a share, on revenue of $3.18-billion. Without one-time charges, earnings sank nearly 31 percent.
PRECISION SYSTEMS INC. The St. Petersburg developer of telephone call processing equipment said Tuesday its net loss for the fourth quarter ended Aug. 31 was $7.95-million, or 85 cents per share, compared with a net loss of $3.56-million, or 40 cents per share, in the fiscal 1993 fourth quarter. For the year, the company reported a net loss of $18.6-million, or $2.09 per share, compared with a net loss of $6.23-million, or 71 cents per share, in fiscal 1993.
TAMPA BANK REBOUNDS. First Commercial Bank of Tampa reported third-quarter earnings before taxes of $87,000, in sharp contrast to a loss of $178,000 in the same period of 1993. The community bank, founded in 1989, has assets of $34-million.
RJR NABISCO HOLDINGS CORP. The food and tobacco conglomerate said Tuesday it earned $216-million, or 11 cents a share, in the third quarter ended Sept. 30, compared with $76-million, or 4 cents a share, in the same period last year.
GREYHOUND LINES INC. The bus company posted a third-quarter loss of $10.6-million, or 72 cents a share, compared with $13.4-million, or 90 cents a share, a year ago.
FTC CHECKS MAIL-ORDER TAXES. The Federal Trade Commission said Tuesday it is evaluating congressional complaints that mail-order and catalog companies engage in deceptive advertising by implying that no sales taxes apply to goods shipped across state lines. But 46 states and the District of Columbia require that a so-called "use tax" on the purchase be paid to the state where the customer lives. Few people know about this law and few states enforce it.
SECOND EXTENSION FOR KASH N' KARRY. Kash n' Karry Food Stores Inc. bondholders will get two more weeks to cast ballots on a proposed financial restructuring of the Tampa-based grocer's unwieldy debt. A Tuesday deadline for voting was extended to Nov. 7.
Mobil Corp. announced plans Monday to make "significant reductions" in its 15,000 staff support jobs worldwide. A Washington Post item in the Business briefs Tuesday gave an incorrect number for the job cuts.
DOW DOLLAR YIELD
30 INDUSTRIALS VS. JAPANESE YEN 30-YEAR U.S. BOND
3850.59 96.83 8.04
-4.71 -0.30 Unchanged