Reported by Star-Bulletin staff & wire
Friday, December 12, 1997
Cyanotech cuts estimate of third-quarter sales
Cyanotech Corp. today cut by more than two-thirds its estimate of how much Spirulina nutritional supplement it will sell to its big distributor in China in this quarter. But the company expects an increase in the next quarter.The Kona-based producer of nutritional and pharmaceutical products from pond-grown algae said it now expects to sell $150,000 worth of Spirulina in its fiscal third quarter, ending Dec. 31.
Cyanotech had predicted sales of $500,000 and sold $1.5 million worth to the distributor in the year-earlier quarter.
The buyer is promoting heavily to its multi-level distributors and expects bigger sales in the January-March quarter, Cyanotech said. The company also cautioned that while production of its NatuRose astaxanthin is on target it has no firm orders to meet its $400,000-
plus third-quarter sales estimate for the product, a natural fish food additive that heightens the color of pond-raised salmon.
Small Business Hawaii to host top politicians
The state's top political leaders will speak on Hawaii's economy at Small Business Hawaii's 22nd annual small business conference Jan. 14 at the Ala Moana Hotel.Gov. Ben Cayetano, Honolulu Mayor Jeremy Harris and Maui Mayor Linda Lingle will join in a panel discussion on improving the economy. Another panel in the day-long conference will feature legislative leaders talking about what the 1998 session may do with the Economic Revitalization Task Force's proposals. There also will be a panel on Bishop Estate, featuring estate critics Judge Samuel P. King and University of Hawaii Law Professor Randy Roth.
The cost is $30 for SBH members and $40 for nonmembers. Call 396-1724 for information.
Drop in producer prices may hurt bottom lines
WASHINGTON -- Computers, gasoline and coffee became cheaper in November as prices paid to producers from factories to food processors declined for the eighth time this year.Prices paid by wholesalers and others for finished goods fell a seasonally adjusted 0.2 percent, the Labor Department said today. That followed three monthly increases in the Producer Price Index and, from January through July, seven consecutive declines -- a post-World War II record.
During the first 11 months of the year, prices have fallen at an annual rate of 1.2 percent, compared with a 2.8 percent increase for all of 1996.
While good news for buyers, deflation also raises economic worries. The inability of producers to increase prices -- especially with higher wages because of the low unemployment rate -- raises the prospect of a profit squeeze ahead.
At the same time, U.S. companies are faced with increased competition from Asian manufacturers, whose products have been made cheaper by sharp currency devaluations. "The struggle to maintain profits will become more difficult for businesses, no question," said economist Robert Dederick of Northern Trust Co.