Business Briefs

Reported by Star-Bulletin staff & wire

Thursday, July 17, 1997

Dole Food reports
11% earnings jump

Dole Food Co. today reported an 11 percent increase in its second-quarter profit to $70.4 million, or $1.17 a share, for the three months ended June 30 compared with $63.6 million, or $1.05 a share, in last year's second quarter.

Revenues in the latest quarter were $1.11 billion, up 6.7 percent from $1.04 billion in the year-earlier period.

The company, founded last century in Hawaii and now an international food giant based in Westlake Village, Calif., said the earnings increased despite the adverse impact of the stronger dollar against currencies in several countries where Dole does business. In Hawaii, Dole has major land holdings and pineapple and diversified agriculture operations.

Thirty-year mortgages
unchanged at 7.47%

WASHINGTON -- Thirty-year home mortgage rates held steady this week, a sign the housing markets will remain healthy in the coming months, according to Federal Home Loan Mortgage Corp.

Freddie Mac said today that its weekly nationwide survey found that the average rate on a 30-year, fixed-rate mortgage was unchanged at 7.47 percent from last week. A year ago, the rate was 8.23 percent.

The survey also found the average one-year adjustable mortgage rate edged up to 5.55 percent from 5.53 percent last week. Fifteen-year mortgage rates averaged 7.01 percent, unchanged from last week.

U.S. housing starts
rise 4.8% in June

WASHINGTON -- Housing starts rose 4.8 percent in June, the second advance in three months and the fourth this year. All regions except for the Northeast posted gains.

The Commerce Department said today construction of new homes and apartments totaled 1.45 million at a seasonally adjusted annual rate, up from a revised 1.39 million in May.

The 6.6 percent decline in May was even sharper than the initial 4.8 percent drop. But the April figure was revised to a 0.3 percent advance from a 0.7 percent dip reported earlier. Many analysts were expecting a 1.43 million rate in June, citing favorable mortgage rates and strong consumer confidence.

Still, most expect new construction to level off this year after reaching an eight-year high of 1.48 million in 1996.

For the year so far, starts totaled 3.2 percent less than they did during the first six months of 1996.