Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, January 1, 1995 TAG: 9501040007
SECTION: BUSINESS PAGE: D-1 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
The index of regional stocks - compiled for the Roanoke Times & World-News and reported every Tuesday as part of the Roanoke Regional Economic Indicators - was off 10.5 percent. That was more than some other market indicators, according to John C. Parrott II of Wheat First Butcher Singer. He tracks the index that he created for newspaper readers.
At the same time, he said, the Dow Jones industrial average was nearly flat and the Standard & Poor's index was down about 1 percent.
Of the 20 stocks on the regional list, Parrott said, only two - Roanoke Electric Steel Corp., and Smithfield Foods Inc. - were up from the end of December 1993.
Parrott said Smithfield's performance reflected a take-over attempt during the year that added value to the stock. It was up about 55 percent by the end of 1994.
He attributed the gain in Roanoke Electric Steel to its operating results with a good income reported during the year and a return on assets of 11 percent. Roanoke Electric Steel, he said, enjoyed "an extremely good year." The company reported sales of $215.8 million for the year ended Oct. 31, up 29 percent from 1993 sales, and earnings before the effect of accounting changes of $8.8 million, an 85 percent gain from 1993.
Westmoreland Coal Co.'s stock was unchanged, but, at a range of $5 a share, it does not have much impact on the regional stock index.
Of the 20 stocks on the regional list, Parrott said, 17 were down.
USAir Group, which was off 62 percent, was the poorest performer for 1994. The airline consistently lost money and is rumored to be headed for bankruptcy in the spring.
ITT Corp. was off the largest number of points - down about $12 a share - although that was not the worst performance. Nor did General Electric Co. do
well during the year.
Parrott said banks were off a total of 8 percent, utilities were down 15 percent and furniture manufacturers fell a combined 27 percent. "Furniture has really gotten killed," Parrott said. He attributed the industry's poor condition to a drop in sales caused by rising interest rates.
The stocks of companies making furniture and consumer durables "all had a weak year," Parrott said.
Few stocks in this region had a shining year in 1994 except for technology issues, he said, although that does not reflect the general economy in the Southeast. The region, he said, enjoys one of the strongest economies in the country.
He attributed the poor showing to market forces because investors sold off as interest rates went up. "You know it's been a pretty bad year when the Standard & Poor's is off," Parrott said.
The base month for the newspaper's Roanoke Valley stock index was set at 100 points based on stock prices in September 1983.
The 20 companies included on the regional index include:
Pittston Co., Westmoreland Coal Co., Norfolk Southern Corp., Bell Atlantic Corp., BellSouth Corp., First Union Corp., Dominion Resources Inc., Crestar Financial Corp., LADD Furniture Inc., Bassett Furniture Industries, Pulaski Furniture Co., Home Shopping Network Inc., Roanoke Electric Steel Corp., Tultex Corp., Smithfield Foods Inc., Signet Banking Corp., NationsBank Corp., USAir Group, ITT, and General Electric Co.
by CNB