CAMPBELL ISSUES WARNING: Campbell Soup Co. warned that profit will fall this fiscal year because Americans are eating less soup. Earnings for the year ending in July will be 8 cents to 12 cents a share less than the $1.76 average estimate of analysts polled by First Call/Thomson Financial. Campbell earned $1.72 last year. Sales of Campbell's soups at U.S. supermarkets fell 11 of the past 12 months. Campbell also said net income fell 14 percent in the third quarter ended April 30 to $139-million, as consumer purchases of its soups fell 9 percent. Campbell's shares fell $1.19 to $29.25 on the New York Stock Exchange.
IBM OFFERS LINUX WITH
MAINFRAMES: IBM is offering Linux software and services for its mainframe computers in a bid to capture business from Internet companies that may choose rival Sun Microsystems Inc. Customers have retrieved about 2,100 copies of Linux from the Web since January, when IBM first offered a test version for its mainframes, and IBM says the number of downloads is accelerating. IBM wants to let companies create software programs for Linux that can run on different computers linked together in a network or over the Internet.
AMWAY ANNOUNCES JOB CUTS: Direct-sales giant Amway Corp. said it plans to cut nearly 11 percent of its global work force, or 1,300 jobs, as part of a restructuring expected to save $300-million annually. About 900 jobs will be cut at the company's world headquarters in Ada, Mich. Management and salaried positions will be most affected by the cuts, with the company expecting to identify most of the affected positions by Aug. 31. Amway announced in February that it was reorganizing in response to sluggish sales and the changing business environment. Amway employs about 12,000 people worldwide.
WACHOVIA EXPANDS TAMPA
PRESENCE: After opening its first bay area branch in downtown Tampa this week, Wachovia Bank plans to follow up with two more branches in the area by year-end. A Tampa office in Carrollwood is scheduled to open in the third quarter 2000. Offices also are planned in South Tampa, New Tampa and Temple Terrace. The Winston-Salem, N.C., bank is eager to make up lost time after its fellow North Carolina bankers, Bank of America Corp. and First Union Corp., grew into the top two banks operating in Florida. Last year, Wachovia moved its Florida divisional headquarters from Boca Raton to Tampa with plans to ramp up. At the time, the bank predicted it would open six branches in the Tampa Bay area by the spring of 2000.
INTEL PLANS STOCK SPLIT: Intel Corp. said it is splitting its shares 2-for-1 and boosting its quarterly dividend by a third. Intel is raising its dividend to 2 cents from 1.5 cents on a post-split basis. The split will take place on July 30 for shareholders of record as of July 2. Intel last split its stock in April 1999, when it also raised its dividend. Intel's shares, which are up 50 percent this year, have more than doubled in the past 12 months. Intel closed at $123.19, up $1.31.
CEMENT OPERATION ON THE BLOCK: Florida Crushed Stone Co. has put its Brooksville cement plant up for sale, according to cement industry experts, and may have a bidder in a local competitor. Industry analysts say Florida Rock Industries, which wants to place a new plant near its mining operations north of Brooksville, is one of several companies interested in buying the cement operation. It was not clear if the mining operation is also up for sale. Neither company would comment about a pending sale, but Roy Grancher, a cement consultant based in Marietta, Ga., said he represents a client that is bidding for the facility.
WALL STREET SNEERS AT LYCOS DEAL: Shares of Web company Lycos Inc. dropped 21 percent as analysts frowned on its planned acquisition by Spanish Internet service provider Terra Networks SA. Some said Lycos shareholders were sold short because Lycos is profitable, while Terra had not expected to be profitable until 2003. Other analysts said Terra was paying too much for Lycos. Terra will pay $12.5-billion in stock for Lycos to create the third-largest Internet portal in the world, serving the United States, Latin America and Europe. Lycos fell $15.01 to $57.61 at 4 p.m. on the Nasdaq Stock Market. U.S. shares of Terra were down 12 percent, or $6.56, at $47, also on the Nasdaq.
Uniroyal Technology Corp.
The Sarasota maker of optoelectronics, coated fabrics and specialty adhesives reported a onetime gain in its second quarter ended April 2 of $57.1-million from the February sale of its high-performance plastics business. While revenues fell 5 percent, sales for its Tampa-based optoelectronics unit increased 961 percent to $902,000 from $85,000 a year ago. The unit's quarterly income loss of $3.2-million reflects the continued start-up costs of producing high-brightness light-emitting diodes. The Tampa facility began LED shipments during the second quarter.
2ndQtr Year Ago
Revenue $16.1-mil $17-mil
Net Income $60.2-mil $1-mil
Per Share $2.08 4 cents