ENRON TRIAL OPENS: A jury of nine women and seven men was picked Tuesday to decide the outcome of the first criminal trial involving former Enron Corp. executives and a handful of their Wall Street bankers. Prosecutors said in opening statements that Enron sold three electricity-producing barges moored off the coast of Nigeria at the end of 1999 in a sham deal designed to help the energy company appear to have met earnings targets. Two former Enron officials and four former executives with Merrill Lynch & Co. face charges.
STARWOOD GETS NEW CEO: Starwood Hotels & Resorts Worldwide Inc., operator of the Sheraton, Westin and W Hotels brands, has named former Coca-Cola Co. president and chief operating officer Steven J. Heyer as CEO to succeed company founder Barry S. Sternlicht, effective Oct. 1. Sternlicht will also assume the role of chief design officer for Starwood. Shares of Starwood rose $1.37, or 3 percent, to $45.94 in morning trading on the New York Stock Exchange.
DISNEY CRUISE LINE NAMES PRESIDENT: A 9-year veteran of Disney Cruise Line has been named its new president, company officials said Tuesday. Tom McAlphin, formerly the cruise line's senior vice president of operations, replaces Karl Holz, who was named president and chief operating officer of Euro Disney. McAlphin was hired by the cruise line, which operates the Disney Magic and Disney Wonder ships, nine years ago as vice president of finance and chief financial officer. He helped create the cruise line's business plan, develop its terminal at Port Canaveral and arrange the purchase of Disney's private island, Castaway Cay. Next May, Disney will dock one of its ships in California as part of a larger strategy to test the waters for a possible expansion of the cruise line.
General Mills Inc.
Higher ingredient prices and restructuring costs pushed General Mills Inc.'s first-quarter earnings down 19 percent, the cereal giant reported Tuesday. The Golden Valley, Minn., maker of Cheerios, Betty Crocker baking mixes and frozen pastries said first-quarter earnings would have been 55 cents per share excluding the cost of closing five manufacturing facilities and other reorganizations. On that basis, the results were a nickel short of the 60 cents per share forecast by analysts polled by Thomson First Call. The quarter ended Aug. 29.
1st Qtr Year Ago
Revenue $2.59-bil $2.52-bil
Net Income $183-mil $227-mil
Per Share 47 cents 59 cents