Reported by Star-Bulletin staff & wire
Tuesday, July 20, 1999
Steak house chain selling majority stake
METAIRIE, La. -- Ruth's Chris Steak House, which originated in the New Orleans area and has grown to 68 restaurants worldwide, is selling a majority share of the company to a private investment firm.Majority control will be held by Chicago-based Madison Dearborn Partners, the two groups announced yesterday.
A price was not disclosed. The deal is expected to close in August. Madison Dearborn Partners invests primarily in management buyouts, recapitalizations and growth equity transactions.
Ruth's Chris has locations around the world, including Hawaii, Hong Kong, Canada, Mexico, Puerto Rico and Taiwan.
Twenty-seven are owned by the company and the others are franchised.
The two local Ruth's Chris outlets -- at Restaurant Row and in Lahaina -- are franchises owned by restaurateur Randy Schoch. No changes are expected locally from the sale to Madison Dearborn.
Guam tourism sees first rise since 1997
HAGATNA, Guam -- The Guam Visitors Bureau has reported an increase in visitor arrivals for the first time since September 1997. The bureau said preliminary figures show nearly 91,734 arrivals in June, a 5 percent increase over June 1998.The bureau attributed the increase to continued improvement in the Japanese market, a 114 percent increase in the Taiwan market and nearly 92 percent increase in the Korean market.
While the Japan visitor count dropped 1.1 percent in June from a year earlier, it broke the double-digit declines of previous months.
The June figures showed increases in visitors from the U.S. mainland, Hawaii, the Northern Marianas, Palau, Micronesia, the Marshall Islands, Australia, Canada, Hong Kong, Nauru and China.
GM earnings soar with truck sales
DETROIT -- General Motors Corp., the world's largest automaker, said earnings rose fivefold from last year's strike-weakened second quarter, topping forecasts on rising U.S. sales of high-profit pickup trucks. Profit from continuing operations climbed to $1.73 billion, or $2.66 a share, from $350 million, or 47 cents. GM was forecast to earn $2.56 a share, the average estimate of analysts surveyed by First Call Corp. Revenue rose 21 percent to $45.1 billion. GM built 1.54 million vehicles, its highest second-quarter output in five years and almost a third more than a year earlier. It accelerated production of high-profit pickups.
U.S. trade deficit climbs to record
WASHINGTON -- The U.S. trade deficit swelled to another record in May as oil prices surged, Americans snapped up imported autos, and demand for U.S. exports shrank, reflecting the lingering effects of a global financial crisis.The Commerce Department reported today that the trade deficit ballooned to $21.3 billion -- a 14.8 percent increase from April's $18.6 billion deficit.
Imports of goods and services climbed 2.2 percent to a record high of $98.9 billion in May.
That reflected an advance in the price of imported oil, to the highest level since late 1997, and a big jump in auto shipments. U.S. exports fell 0.8 percent to $77.6 billion as demand dropped sharply for commercial aircraft, farm products and U.S. autos.
In other news . . .
WASHINGTON -- For the second time this month, MP3.com Inc. is increasing the price it expects to receive for the shares in its initial public offering. San Diego-based MP3.com, which distributes recorded music over the Internet, said it raised the expected range to $24 to $26 a share from $16 to $18 a share. The new price puts an anticipated value on the IPO at $295.2 million to $319.8 million. MP3.com had a $357,000 net loss on revenue of $1.2 million in 1998.