Reported by Star-Bulletin staff & wire
Tuesday, August 11, 1998
Occupancy, rates higher at isle luxury hotels
Hawaii's luxury hotels are doing well, despite a slowdown in tourism, according to a report released today.In June, the luxury hotels reported 74.1 percent occupancy, despite an overall statewide occupancy slip for all hotels to 67.1 percent, from 70.3 percent in June 1997, the report by the hospitality consulting division of accounting firm PricewaterhouseCoopers. The luxury hotels also increased their average room rate by 2.8 percent to $216.07 a night, from $210.27 in June of last year, the report. The consulting group said occupancy in the luxury hotels was helped by an increase in corporate meetings as well as higher honeymoon travel from Asia.
U.S. productivity falls for first time in 3 years
WASHINGTON -- The productivity of American workers -- the crucial factor in whether living standards improve -- declined during the April-June quarter for the first time in more than three years.Productivity of nonfarm, nonsupervisory workers -- output per hour of work -- fell at a 0.2 percent annual rate, the Labor Department said today.
Separately, federal court officials said more Americans filed for bankruptcy during the 12 months ended June 30 than any one-year period in history. Personal bankruptcies jumped 9.2 percent to 1.37 million.
The second-quarter productivity decrease was the first since a drop at a 0.4 percent rate during the first three months of 1995. However, it followed an increase at a 3.5 percent rate in the first quarter, the strongest in two years. Analysts are attributing the productivity decline to the fact that most employers kept their payrolls at full strength despite an abrupt slowing in economic output attributed to trade problems with Asia, the General Motors Corp. strike and the need to sell goods that had piled up in inventory.
Sports Authority rejects Gart; may ax Venator bid
FORT LAUDERDALE, Fla. -- Sports Authority Inc., the biggest U.S. sporting-goods retailer, rejected Gart Sports Co.'s $445.2 million bid to buy a majority stake and said it may shelve its buyout agreement with Venator Group Inc. as well.Sports Authority Chairman and Chief Executive Jack Smith said Gart's $20-a-share cash bid for a 70 percent stake is only worth $14 a share for all of the retailer's shares. That's an unacceptable return, he said.
Sports Authority, which sells gear from shoes to treadmills at its warehouse-sized stores, also said it isn't enamored with Venator's agreement to buy the entire company. A 43 percent tumble in Venator's stock has shrunk that offer to $10.55 a share, or $335.2 million, from the original $18.40 in May.
"Under no circumstances would we accept at today's Venator prices," Smith said.
Sports Authority is reasserting independence even as its profits are being hurt by declining U.S. demand and steep markdowns for sneakers and athletic clothing. Still, the retailer is better off riding out these temporary problems on its own than selling out now, shareholders said.
Apple's iMac computer off to a strong start
CUPERTINO, Calif. -- Apple Computer Inc. has orders for 150,000 of its ballyhooed iMac home computers, which go on sale Saturday and are expected to rack up first-day sales of more than $25 million.Apple will tout the $1,299 iMac this week in radio promotions and stations will feature giveaways, Bloomberg News reported. Apple also will run new TV, newspaper and magazine ads to coincide with the introduction of the translucent computer.
The No. 9 personal computer maker was in dire straits a little more than two years ago, when it was the object of rampant takeover speculation, cash dwindled to $592 million and customers fled. Co-founder and interim Chief Executive Steve Jobs helped turn that around, with market share ticking back up, new products getting rave reviews and three straight quarters of profits.
In other news . . .
BENTONVILLE, Ark. -- Wal-Mart Stores Inc., the world's largest retailer, said fiscal second-quarter earnings rose a better-than-expected 30 percent as profit from its international stores surged almost five-fold.Net income rose to $1.03 billion, or 46 cents a diluted share, from $795 million, or 35 cents, a year earlier.
The results beat by 3 cents the average estimate of analysts surveyed by First Call Corp. for the quarter ended July 31.
See expanded coverage in today's Honolulu Star-Bulletin.
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