Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, October 21, 1994 TAG: 9410220063
SECTION: BUSINESS PAGE: A11 EDITION: METRO
SOURCE: ASSOCIATED PRESS
DATELINE: LENGTH: Medium
Economists said the data show an economic gusto that soon could compel businesses to hire more workers to satisfy increased demand.
``Anybody looking for a job should breathe a sigh of relief,'' said Hugh Johnson, chief investment officer at First Albany Corp., a securities brokerage in Albany, N.Y.
In manufacturing, the automotive industry continued to ride the wave of rising consumer spending.
The nation's biggest automaker, General Motors, posted a $552 million profit for the third quarter, a big turnaround from the prior year's loss of $113 million.
In communications, AT&T's quarterly profit improved 14 percent, if the costly acquisition of McCaw Cellular Communications is excluded. International Business Machines earned $710 million in the third quarter, compared with a $48 million loss for the period a year earlier.
The good news extended into consumer products. Coca-Cola Co. made 20 percent more this quarter than the same period last year, surpassing its own expectations. Even airlines, which have lost millions in recent years, showed remarkable strength. Northwest Airlines Corp., veering toward bankruptcy last year, reported a 54 percent improvement in quarterly earnings.
The improvements show that the plant closings, layoffs and other cost-cutting measures associated with corporate restructurings in recent years have paid off - at least as far as bottom lines go. Some businesses now may start rehiring.
Prosperity can bode well for consumers and workers because it means more jobs and income, but ill for investors worried that the strength won't last.
by CNB