Reported by Star-Bulletin staff & wire
Tuesday, January 27, 1998
Hawaii income growth lags national average
Hawaii's personal income growth ranked in 43rd place among the 50 states and the District of Columbia in the July-September quarter.Incomes in Hawaii grew 0.8 percent in the period, which is less than half the 1.8 percent rate in Utah, the nation's leader, or the 1.7 percent income increase in Washington state, No. 2 in the nation for income growth. The Commerce Department, which released the information today, said the national average was a 1.1 percent increase in incomes. The lowest income-growth state was Arkansas at 0.1 percent but no state showed a decline in personal income.
J.C. Penney to close 75 stores, lay off 4,900
DALLAS -- J.C. Penney Co. said today it will close 75 of its stores and lay off 4,900 people in a move to cut costs and make the retailer more competitive.Penney, one of the nation's largest department-store chains, will close stores that don't meet the company's performance standards. That will result in 3,200 job cuts, and it will slash an additional 1,700 management jobs.
No Hawaii closings have been announced, said Theda Page Whitehead, a spokeswoman at corporate headquarters in Plano, Texas. J.C. Penney has five stores in Hawaii: Ala Moana Center, Windward Mall and Pearlridge Center, one in Hilo and one on Maui. In all, the company operates 1,200 J.C. Penney stores and 2,800 Eckerd drug stores.
GTE's profit falls 10% on tech investments
STAMFORD, Conn. -- GTE Corp.'s fourth-quarter profit fell 10 percent after spending $149 million to develop new products and services.GTE, parent of GTE Hawaiian Tel, said that net income was $702 million, or 73 cents a share on a diluted basis, compared with $784 million, or 81 cents a share, in the same period a year ago.
Excluding the money put into the new technologies, net income would have increased 9 percent in the quarter to $851 million. Quarterly revenues increased 10 percent to $6.35 billion, up from $5.75 billion a year ago.
GTE Chairman Charles R. Lee said the investments provide for enhanced services and should lead to more long-distance, video and digital-wireless customers.
For the full year 1997, net income dipped slightly to $2.794 billion, or $2.92 a share basis, compared with $2.798 billion, or $2.89 a share, in 1996.