THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, January 7, 1995 TAG: 9501070264
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
LENGTH: Medium: 84 lines
Federated to cut 650 jobs in the wake of Macy takeover: Federated Department Stores Inc. said it will dismiss 650 workers in its Abraham & Straus/Jordan Marsh division as part of that operation's merger into the Macy's East unit. Federated expects to take a $35 million charge against fourth-quarter earnings to cover the cost of the dismissals and transfers. Federated acquired R.H. Macy & Co. last month. (Bloomberg Business News)
Wall Street Journal adds sports: The Wall Street Journal is going to be a sport at least once a week. The nation's largest financial daily published a sports page Friday and said it will be a regular weekly feature. It is part of the Journal's plans to make its final issue of the week more of a ``weekend read,'' according to Managing Editor Paul Steiger. The Journal hopes to include more Friday features on topics like personal finance, travel, real estate, art collecting and other avocations. (Associated Press)
ICC source says Clinton will phase out agency in fiscal 1996: The Clinton administration will ask Congress to phase out the Interstate Commerce Commission in the fiscal year beginning Oct. 1, a highly placed ICC source has told The Journal of Commerce. With House Republicans now working on legislation to strip the ICC's current fiscal-year funding, the administration's recommendation is likely to be the coup de grace for the commission. (AP)
Richmond newspaper goes on-line: WWBT-12 and the Richmond Times-Dispatch will supply news from central Virginia for a new computer on-line service scheduled to start this summer. The on-line service, Gateway Virginia, is a joint venture of Richmond Newspapers Inc., a subsidiary of Media General Inc., and Prodigy Services Co. (AP)
Food Lion's earnings up 2.6 percent: Food Lion Inc. reported unaudited sales in the quarter ending Dec. 31 of more than $2.4 billion, up 2.6 percent from the fourth quarter of 1993. For the year ending Dec. 31, the company reported sales of more than $7.9 billion, up 4.2 percent from $7.6 billion in 1993. Food Lion opened 30 new stores, closed 87 and remodeled 65 others in 1994. The company expects to remodel 120 stores and open 50 new ones this year. (AP)
Lucas Industries admits fraud: Aerospace contractor Lucas Industries PLC said Friday it will admit in court that its U.S. subsidiary falsified inspection records for parts sold to the Pentagon. Lucas said it will pay $18.5 million in fines and costs to resolve a criminal probe of Lucas Western Inc. by federal prosecutors in Los Angeles. The agreement must be approved in U.S. District Court in Los Angeles, where a hearing is scheduled for next week. The U.S. government investigated two Lucas products, Airframe Mounted Accessory Drive gearboxes for the U.S. Navy's F-18 fighter aircraft and Azimuth Drive Units for the U.S. Army's Multiple Launch Rocket System. (AP)
Time Warner may acquire another cable division: Time Warner Inc., the nation's second-biggest cable systems operator, is near agreement on buying all or part of the cable TV systems of Cablevision Industries Inc., The Wall Street Journal reported Friday. Privately-held Cablevision's systems serve about 1.3 million subscribers. The Journal said that the company in its entirety is valued at $2.5 billion to $3 billion. Cablevision said last November it was in talks with Time Warner and at least two other companies about forming an alliance that would give it access to resources needed to expand. (AP)
Disney's Eisner nets multimillion dollar bonus: Michael Eisner regained his annual bonus in 1994, as Walt Disney Co. gave the 52-year-old chairman and chief executive office an award worth about $9.9 million. The bonus, which included a $7.2 million cash payment and 60,618 shares of restricted stock, lifted Eisner's total pay package for the year ended Sept. 30 to $10.65 million. He receives a salary of $750,000 each year under an employment agreement signed in 1989, according to a proxy statement Disney filed Friday with the SEC. (Bloomberg)
UPS announces rate increases: United Parcel Service plans to increase rates for domestic service by an average of 3.9 percent next month. The increase was made necessary by higher costs, because the costs of fuel, supplies and labor, as well have taxes, all have risen in the past year, a spokesman said. (AP)
by CNB