THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, January 10, 1995 TAG: 9501100355
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
LENGTH: Medium: 86 lines
U.S. apples go on sale for first time in Japan: U.S.-grown apples went on sale in Japan for the first time, ending Tokyo's decades-long ban on American apples and a contentious trade battle with the United States. Nearly 2 million pounds of Red Delicious and Golden Delicious apples arrived in Japan on Thursday from Washington state. (Associated Press)
Arab League head calls for Arab trade bloc: The head of the Arab League on Monday urged Arab nations to form a trading bloc similar to the European Union and the North American Free Trade Agreement. The proposal by Esmat Abdel-Meguid, the Egyptian secretary-general of the Arab League, appears to bring into focus a widely held belief that smaller Arab blocs such as the Gulf Cooperation Council should be extended to cover the entire Arab world. (AP)
Some income from mutual funds can be taxed: States may tax some of the income people receive from mutual funds that invest solely in U.S. government securities, the Supreme Court ruled unanimously Monday. The decision in a Nebraska case affects the tax status of income earned on U.S. government securities that mutual funds don't buy directly but through ``repurchase agreements.'' Federal law generally exempts U.S. government securities - treasury bills, bonds and the like - from state taxation. But Nebraska tax officials argued successfully that the exemption doesn't extend to repurchase agreements. Under those, a mutual fund buys government securities with the understanding that the seller will buy them back sometime in the future at a higher price. The resale price includes interest for the period the mutual fund owns the securities. The interest generally is less than that earned by the government securities, and the difference is the original seller's profit margin. (AP)
GrandMet's Pillsbury unit agrees to $2.6 billion merger with Pet: Grand Metropolitan Plc said it is offering Pet Inc. shareholders $26 a share in cash, a 29 percent premium to Pet's closing share price on Friday of 20 1/8 a share. Pet, based in St. Louis, had $1.6 billion in sales in the recent fiscal year and $223 million in operating profit. The Pet board has agreed to the merger and is recommending it to shareholders. (Bloomberg Business News)
Colgate to buy Kolynos unit: Colgate-Palmolive Cos. plan to buy American Home's Kolynos unit for $1.04 billion. The acquisition will increase Colgate's leadership in toothpaste market share from more than 40 percent to almost 50 percent globally. American Home Products Corp.'s Kolynos unit offers toothpaste, toothbrushes, mouth rinse and dental floss to many Latin American countries. It is the No.1 toothpaste in Argentina, Peru and Uruguay. (Bloomberg)
Alexandria-based Microdyne to acquire Eagle Technology: Microdyne Corp. said it has agreed to acquire the assets of Eagle Technology for $17.5 million. Eagle will become part of Alexandria-based Microdyne's networking-products division. Microdyne will pay $7.5 million dollars for business and technology rights. The balance of the purchase price is for assets. Microdyne develops, makes and markets data communications and network connectivity products. The firm also provides manufacturer support services. Eagle Technology is a unit of Tucson, Ariz.-based Artisoft Inc. (AP)
Spending on newspaper advertising up in 1994: Spending on U.S. newspaper ads increased 7.5 percent in 1994, the third straight year of growth, the Newspaper Association of America reported. The NAA estimated that newspaper advertising revenue in the United States was $34 billion in 1994. That total is equal to about 23 percent of all advertising expenses in the country last year, the largest share in the media industry, the NAA said. The association said its survey, conducted by Simmons Market Research Bureau, showed that newspapers reach more Americans than any other medium. More than 115 million people, 61 percent of the adult population, read a daily newspaper, the study found. The average Sunday readership was 132 million. Almost 60 million newspapers were sold every day in 1994. (AP)
EARNINGS
Rowe Furniture Corp. financial results for 1994: Rowe Furniture Corp., based in Arlington, said it achieved record financial results for the year ending November 27. Shipments for 1994 of $111.2 million were 25 percent ahead of the $89.0 million reported in 1993. Net income for 1994 of $6.8 million was 47 percent greater than the $4.6 million earned in 1993. Income for 1993 is prior to an accounting change for income taxes. Per share net income for 1994, adjusted for the three-for-two stock split paid December 6, increased by 38 percent to 47 cents vs. 34 cents in 1993. (Staff) by CNB