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Isle bankruptcies fell 18% in August

The pace of Hawaii bankruptcies slowed in August as the number of filings plunged 18.4 percent from a year ago.

State bankruptcies, which were down 15 percent at the midpoint of 2003 from a similar period last year, continue to diminish and are down 17.2 percent year to date from the first eight months of 2002.

There were 297 overall filings in August, down from 364 a year ago. For the year, there have been 2,596 filings compared with 3,134 through August of 2002.

Chapter 7 filings, which are the most common in Hawaii, dropped 24.7 percent in August to 256 from 340. For the year, there have been 2,249, down 19.9 percent from 2,809 a year ago. Chapter 7 filings involve liquidating the assets of a business or consumer.

Chapter 13 filings, however, jumped 54.2 percent in August to 37 from 24 a year ago. For the year, there have been 320, a 3.2 rise over 310 a year ago. Chapter 13 filings have debt limits and allow a wage earner to pay creditors over a three-year period.

There were four Chapter 11 filings in August, raising the year's total to 27, an 80 percent gain from 15 a year ago. Hawaiian Airlines' reorganization is the most prominent filing of that type. There were no Chapter 11 filings in August last year. Chapter 11 filings mostly cover business reorganizations.

Kona Brewing adds more tanks

Kona Brewing Co. has purchased two additional brewing tanks worth around $60,000. The tanks will allow the company to increase its annual capacity by 28 percent, or up to 7,500 barrels.

The two tanks are a 2,480-gallon fermenter and a 3,100-gallon conditioning tank. Earlier this summer, the company added a 2,700-gallon hot water tank. Plans are also under way to add a bulk-grain handling system by the end of the year which will allow more ingredients to be kept on hand.

In November, the company also plans to open a second restaurant location at the Koko Marina Center in Hawaii Kai. The company, founded in 1994, will have spent about $160,000 on upgrades and new equipment to improve production, according to Rich Tucciarone, director of brewery operations. By 2002, the company was producing 5,800 barrels of beer that are distributed throughout Hawaii and California.

GM, Asian auto sales up in August

DETROIT >> General Motors Corp. and several Asian rivals posted hefty sales in August as the industry racked up its strongest month so far this year and one of the best ever.

While Ford Motor Co. also had one of its best months of 2003, volume was down sharply from a year ago when the industry recorded another phenomenal tally.

Along those same lines, DaimlerChrysler AG's Chrysler Group had its second-best August in company history, despite a 6.3 percent decline in overall sales.

GM, the world's largest automaker, set an industry record for monthly truck sales, which rose 5 percent. On the car side, excluding the Saab nameplate, business was off 8.3 percent.

Toyota Motor Sales USA Inc., American Honda Motor Co. and Hyundai Motor America all established monthly sales records in the United States.

Cigna settles $540 million lawsuit

MIAMI >> Cigna Corp. will pay about $540 million to settle a lawsuit claiming it routinely shortchanged the nation's doctors on payments for their services.

Cigna's cash payout is a guaranteed $140 million and an expected $170 million for reimbursement on claims up to 12 years old, attorneys' fees and a new health care foundation, sources close to the talks said yesterday.

The nation's third-largest health insurer also committed to spending $400 million to change its claims processing procedures, sources said.

Pfizer cuts forecast for 2003 net income

Pfizer Inc., the world's largest drugmaker, said net income will fall more than expected to 70 cents a share as the company has additional costs for its acquisition of Pharmacia Corp.

In July the New York-based company said it expected to earn 86 cents a share this year. Last year, Pfizer earned $9.13 billion, or $1.48 a share.

Pfizer is lowering its net income estimate because it will have more costs related to reducing Pharmacia's inventory, the company said. Pfizer has told investors it expects to complete that process by the end of this quarter.

Gateway slashes jobs again to curb losses

SAN DIEGO >> Gateway Inc. said yesterday it would cut at least 450 jobs, or 5 percent of its work force, by closing a manufacturing plant in Virginia and consolidating operations.

The personal-computer maker will close a plant in Hampton, Va., by Sept. 30, eliminating 450 jobs. An undetermined number of jobs will be cut at plants in North Sioux City, S.D., where 2,500 people work, and in Sioux Falls, S.D., where 950 people work. Gateway employs about 8,500 people overall. The effort marks Gateway's latest effort to return to profits after more than two years of losses.

In other news ...

>> Microsoft Corp. reported five new security flaws in its software, including one of "critical" severity that affects nearly all programs in its Office suite of software.

>> Women's clothing chain Chico's FAS Inc. appointed Chief Operating Officer Scott Edmonds as chief executive, replacing founder Marvin J. Gralnick, who will remain chairman.