HAWAII

City Bank parent boosts dividend

CB Bancshares Inc., which last month posted a 15.3 percent increase in second-quarter earnings over a year ago, said today it was boosting its quarterly dividend 10 percent.

The parent of City Bank said its board of directors approved a cash payout of 11 cents a share for the third quarter, payable on Sept. 27 to stockholders of record on Sept. 16. In the second quarter, CB Bancshares paid a cash dividend of 10 cents a share as well as distributing a 10 percent stock dividend.

CB Bancshares' stock, which rose 68 cents today to $39.68, is up 23.8 percent this year. It made the announcement shortly before the market closed. The company's stock yields 1.11 percent.

MAINLAND

S&P may cut Tesoro debt ratings

SAN ANTONIO >> Tesoro Petroleum Corp.'s credit ratings may be cut by Standard & Poor's because of concern over diminished cash flow at the U.S. refiner, which is selling assets to reduce debt.

Bloomberg News reported that S&P placed under review Tesoro's "BB" rating, which is two levels below junk. The refiner has about $2 billion in total debt following the purchase in May of a northern California refinery and 70 gasoline stations from Valero Energy Corp.

Tesoro on Monday said its six refineries, including its Hawaii location, will run at 15 percent below capacity as high crude-oil costs have crimped fuel- making profit margins. That means it may not generate enough cash to meet its $500 million debt-reduction goal by the end of 2003, S&P said.

"The viability of the company's debt reduction plan is in question," S&P credit analyst John Thieroff said.

US Airways mechanics reject concessions

ARLINGTON, Va. >> US Airways' largest union split on wage and benefit concessions today, with mechanics rejecting the cuts and fleet workers accepting them.

The carrier, which has filed for Chapter 11, had sought $219 million in annual savings as part of a $1.2 billion cost-cutting plan. The divided vote amounts to a savings of $65 million, according to a union estimate.

The International Association of Machinists, which represents about 12,000 workers, voted separately on the concessions. Fleet workers, who load luggage and freight, approved the concessions by a 62 percent margin; mechanics and related workers rejected the proposal by a 57 percent margin.

Boeing refuses to resume contract talks

SEATTLE >> Boeing refused to resume negotiations with its largest union today, setting the stage for a possible strike next week.

"There is nothing left to negotiate," the company said in a statement.

Earlier in the day, the Machinists union had agreed to report to Federal Mediation and Conciliation Service headquarters in Washington, D.C., next Wednesday to discuss a contract to cover 25,000 members.

A letter from mediation service director Peter Hurtgen said the agency stepped in because "any job action threatens to cause a substantial disruption of commerce."

Boeing said it refused further talks because talks had already been going on for months.

WORLD

Starbucks moves into coffee country

SAN JUAN, Puerto Rico >> Starbucks Coffee Co. is opening its first chain of stores here next month, spearheading a push into Latin America, where coffee-growing is a matter of pride and a 50-cent "cafe con leche" is part of the culture.

The stores will be run by Starbucks' local franshisee, Cafe Hawaii Partners.