Honolulu Star-Bulletin Business

[ FAST FACTS HAWAII ]

HAWAII
Tax Department revamping system

The state Taxation Department warned yesterday of short-term inconveniences during the implementation of the business tax component of its new information management system.

The project caps a five-year program to replace the agency's separate income tax and business tax systems with a single system.

For two weeks starting Oct. 1, the department will take computer systems offline, and employees will not be able to update taxpayer accounts. Those who e-file their returns will not be affected.

The department said it encourages anyone who needs a business tax license or clearance to get it before the end of this month.

NATION, WORLD
Ex-Coke exec to lead Starwood

Starwood Hotels & Resorts Worldwide Inc., owner of the Sheraton and Westin hotel chains, said Steven J. Heyer will replace company founder Barry S. Sternlicht as chief executive.

Sternlicht, 43, will stay on as the company's executive chairman and chief design officer, the White Plains, N.Y.- based company said in a statement distributed by Business Wire. Heyer is the former president and chief operating officer of Coca-Cola Co.

Starwood said in July that second-quarter revenue rose 13 percent from a year earlier. Sternlicht's renovation of the Westin and Sheraton hotels helped attract more travelers. Spokeswoman K.C. Kavanagh didn't immediately return a voicemail message left at her office.

Starwood shares shed $1.13 to $44.57 in New York Stock Exchange composite trading and have climbed 24 percent this year. The news was released after the close of U.S. exchanges.

Trial starts in $280B tobacco suit

WASHINGTON >> After five years of legal wrangling, the nation's largest cigarette-makers are meeting federal lawyers in court for the trial phase of the government's record $280 billion civil racketeering suit against the tobacco industry.

The government alleges the industry conspired to deceive the public about the dangers of smoking and the addictive nature of nicotine, and illegally targeted children through marketing campaigns.

Government lawyers were to begin presenting their case in U.S. District Court today.

Industry lawyers acknowledge tobacco executives may have expressed doubts about public health concerns in the past, but say that doesn't amount to fraud.

"Fraud is, 'I have a specific intention to mislead you or take money from you by deceiving you,''' said Philip Morris USA attorney William Ohlemeyer. "Fraud is a very high bar."

William Schultz, a former Justice Department lawyer who headed the case during the Clinton administration, said the government would use as evidence internal industry documents that have surfaced in other cases and show tobacco executives knew some of their public statements about health risks related to smoking were untrue.

1 in 8 airlines carry bad water

Nearly one of every eight passenger airliners tested by the Environmental Protection Agency carried drinking water that fails agency standards because it contains coliform bacteria, the agency said yesterday.

EPA enforcement chief Tom Skinner said passengers whose immune systems are compromised may want to avoid drinking water from airplane galleys or lavatories, although he noted that test results were preliminary.

Of the planes checked, 20 tested positive for total coliform bacteria, which could signal the presence of other harmful bacteria. Two planes tested positive for E. coli bacteria, which in a severe form can cause gastrointestinal illness.

Japan, Bush to discuss lifting ban on U.S. beef

WASHINGTON >> In a break from its steadfast ban on U.S. beef because of mad cow disease, Japan is moving toward allowing a resumption of imports if American officials can guarantee it comes from cattle no older than 20 months at slaughter.

American beef industry officials expect President Bush and Japanese Prime Minister Junichiro Koizumi to discuss the Japanese ban today when both leaders will be in New York for the U.N. General Assembly's annual meeting.

A Japanese food safety panel opened the way for a shift in government policy earlier this month. It said mad cow tests on animals younger than 20 months could be eliminated without raising the risk of giving people a related rare but fatal disease, variant Creutz-feldt-Jakob disease.

U.S. agriculture officials refused to predict where the change in Japanese policy might lead, but beef industry leaders said they consider it a step toward reopening the Japanese market to exports from the United States.

Nike beats estimates in profitable quarter

PORTLAND, Ore. >>Nike Inc. reported a better-than-expected 25 percent increase in first-quarter profits yesterday, helped by its strongest U.S. orders in more than seven years.

For the three months ending Aug. 31, the sneaker and athletic apparel manufacturer earned $1.21 per share, or $326.8 million, compared with 98 cents per share, or $261.2 million, at the same time a year ago. Analysts surveyed by Thomson First Call had predicted $1.11 a share.

Nike shares rose $1.44 yesterday to close at $78.

Sony expects sales boost from A-V equipment

Sony Corp., the world's second biggest consumer electronics maker, aims to expand its share of year-end audio-visual equipment sales, helped by demand for flat- panel displays and DVD recorders.

The Tokyo-based company targets raising its share of year-end sales in the segment to 30 percent from about 25 percent last year, said Tsugie Miyashita, head of Sony's marketing affiliate.

The company expects to take a 35 percent share of DVD recorder and flat-panel display sales during the holiday shopping season in Japan, Miyashita said.

Bank of Japan sticks with easy-money policy

Bank of Japan Governor Toshihiko Fukui said the central bank will maintain its current easy monetary policy as Japan's economic recovery continues.

The central bank "intends to firmly keep" its current monetary policy, Fukui said at an annual meeting of securities industry executives in Tokyo, according to a text of the speech posted on the central bank's Web site. "The recovery trend of Japan's economy is unchanged."

The Bank of Japan last week kept interest rates almost at zero to bolster growth.

Hong Kong jobless rate falls to 30-month low

Hong Kong's unemployment rate in August fell to the lowest level in 30 months as rising tourism caused companies such as Chow Sang Sang Holdings International Ltd. to expand.

The seasonally adjusted jobless rate was 6.8 percent, compared with 6.9 percent in July, the government said in a statement.

Bank seeks to sell Hong Kong holdings

HSBC Holdings Plc, Europe's biggest bank by market value, is offering investors 5.94 percent of its stake in Hang Lung Properties Ltd., Hong Kong's fourth-largest developer by market value, and may raise as much as $279 million.

HSBC is selling 196.15 million shares at HK$11.10 each, or about $1.43.

JAL reveals plans for new Japanese airport

Japan Airlines Corp. said it will offer 97 weekly flights when the new Central Japan International Airport opens in February 2005.

Japan Airlines will offer 77 weekly services on its own, including three flights to southern China's Guangzhou city, the Tokyo-based company said in a release.

Japan Airlines will offer 20 services in so-called code- share arrangements with airlines such as Air France SA, which allow them to sell tickets on each other's flights.

Japan Airlines will fly to Paris from central Japan's Nagoya city seven times a week.

The new international airport, located near Toyota Motor Corp.'s headquarters in central Japan, is expecting to handle 12 million passengers in the first year of operations.

— ADVERTISEMENT —

Business Briefs Reported by Star-Bulletin staff & wire [ FAST FACTS HAWAII ] BACK TO TOP \| HAWAII Tax Department revamping system The state Taxation Department warned yesterday of short-term inconveniences during the implementation of the business tax component of its new information management system. The project caps a five-year program to replace the agency's separate income tax and business tax systems with a single system. For two weeks starting Oct. 1, the department will take computer systems offline, and employees will not be able to update taxpayer accounts. Those who e-file their returns will not be affected. The department said it encourages anyone who needs a business tax license or clearance to get it before the end of this month. NATION, WORLD Ex-Coke exec to lead Starwood Starwood Hotels & Resorts Worldwide Inc., owner of the Sheraton and Westin hotel chains, said Steven J. Heyer will replace company founder Barry S. Sternlicht as chief executive. Sternlicht, 43, will stay on as the company's executive chairman and chief design officer, the White Plains, N.Y.- based company said in a statement distributed by Business Wire. Heyer is the former president and chief operating officer of Coca-Cola Co. Starwood said in July that second-quarter revenue rose 13 percent from a year earlier. Sternlicht's renovation of the Westin and Sheraton hotels helped attract more travelers. Spokeswoman K.C. Kavanagh didn't immediately return a voicemail message left at her office. Starwood shares shed $1.13 to $44.57 in New York Stock Exchange composite trading and have climbed 24 percent this year. The news was released after the close of U.S. exchanges. Trial starts in $280B tobacco suit WASHINGTON >> After five years of legal wrangling, the nation's largest cigarette-makers are meeting federal lawyers in court for the trial phase of the government's record $280 billion civil racketeering suit against the tobacco industry. The government alleges the industry conspired to deceive the public about the dangers of smoking and the addictive nature of nicotine, and illegally targeted children through marketing campaigns. Government lawyers were to begin presenting their case in U.S. District Court today. Industry lawyers acknowledge tobacco executives may have expressed doubts about public health concerns in the past, but say that doesn't amount to fraud. "Fraud is, 'I have a specific intention to mislead you or take money from you by deceiving you,''' said Philip Morris USA attorney William Ohlemeyer. "Fraud is a very high bar." William Schultz, a former Justice Department lawyer who headed the case during the Clinton administration, said the government would use as evidence internal industry documents that have surfaced in other cases and show tobacco executives knew some of their public statements about health risks related to smoking were untrue. 1 in 8 airlines carry bad water Nearly one of every eight passenger airliners tested by the Environmental Protection Agency carried drinking water that fails agency standards because it contains coliform bacteria, the agency said yesterday. EPA enforcement chief Tom Skinner said passengers whose immune systems are compromised may want to avoid drinking water from airplane galleys or lavatories, although he noted that test results were preliminary. Of the planes checked, 20 tested positive for total coliform bacteria, which could signal the presence of other harmful bacteria. Two planes tested positive for E. coli bacteria, which in a severe form can cause gastrointestinal illness. Japan, Bush to discuss lifting ban on U.S. beef WASHINGTON >> In a break from its steadfast ban on U.S. beef because of mad cow disease, Japan is moving toward allowing a resumption of imports if American officials can guarantee it comes from cattle no older than 20 months at slaughter. American beef industry officials expect President Bush and Japanese Prime Minister Junichiro Koizumi to discuss the Japanese ban today when both leaders will be in New York for the U.N. General Assembly's annual meeting. A Japanese food safety panel opened the way for a shift in government policy earlier this month. It said mad cow tests on animals younger than 20 months could be eliminated without raising the risk of giving people a related rare but fatal disease, variant Creutz-feldt-Jakob disease. U.S. agriculture officials refused to predict where the change in Japanese policy might lead, but beef industry leaders said they consider it a step toward reopening the Japanese market to exports from the United States. Nike beats estimates in profitable quarter PORTLAND, Ore. >>Nike Inc. reported a better-than-expected 25 percent increase in first-quarter profits yesterday, helped by its strongest U.S. orders in more than seven years. For the three months ending Aug. 31, the sneaker and athletic apparel manufacturer earned $1.21 per share, or $326.8 million, compared with 98 cents per share, or $261.2 million, at the same time a year ago. Analysts surveyed by Thomson First Call had predicted $1.11 a share. Nike shares rose $1.44 yesterday to close at $78. Sony expects sales boost from A-V equipment Sony Corp., the world's second biggest consumer electronics maker, aims to expand its share of year-end audio-visual equipment sales, helped by demand for flat- panel displays and DVD recorders. The Tokyo-based company targets raising its share of year-end sales in the segment to 30 percent from about 25 percent last year, said Tsugie Miyashita, head of Sony's marketing affiliate. The company expects to take a 35 percent share of DVD recorder and flat-panel display sales during the holiday shopping season in Japan, Miyashita said. Bank of Japan sticks with easy-money policy Bank of Japan Governor Toshihiko Fukui said the central bank will maintain its current easy monetary policy as Japan's economic recovery continues. The central bank "intends to firmly keep" its current monetary policy, Fukui said at an annual meeting of securities industry executives in Tokyo, according to a text of the speech posted on the central bank's Web site. "The recovery trend of Japan's economy is unchanged." The Bank of Japan last week kept interest rates almost at zero to bolster growth. Hong Kong jobless rate falls to 30-month low Hong Kong's unemployment rate in August fell to the lowest level in 30 months as rising tourism caused companies such as Chow Sang Sang Holdings International Ltd. to expand. The seasonally adjusted jobless rate was 6.8 percent, compared with 6.9 percent in July, the government said in a statement. Bank seeks to sell Hong Kong holdings HSBC Holdings Plc, Europe's biggest bank by market value, is offering investors 5.94 percent of its stake in Hang Lung Properties Ltd., Hong Kong's fourth-largest developer by market value, and may raise as much as $279 million. HSBC is selling 196.15 million shares at HK$11.10 each, or about $1.43. JAL reveals plans for new Japanese airport Japan Airlines Corp. said it will offer 97 weekly flights when the new Central Japan International Airport opens in February 2005. Japan Airlines will offer 77 weekly services on its own, including three flights to southern China's Guangzhou city, the Tokyo-based company said in a release. Japan Airlines will offer 20 services in so-called code- share arrangements with airlines such as Air France SA, which allow them to sell tickets on each other's flights. Japan Airlines will fly to Paris from central Japan's Nagoya city seven times a week. The new international airport, located near Toyota Motor Corp.'s headquarters in central Japan, is expecting to handle 12 million passengers in the first year of operations.	— ADVERTISEMENTS — — ADVERTISEMENTS —

HAWAII Tax Department revamping system

NATION, WORLD Ex-Coke exec to lead Starwood