Florida Today from Cocoa, Florida • Page 21

faMW.wu.ii.ninw.in.iiu, i.ii.liinl,Mil.n mum uihmui rV m-rhi 'i iftliln Hi irllim I'll iiltitfrtnAiMi 'ViJiljitff 't-- AlRLifiE LABOR TROUBLE Labor disputes with unionized flight attendants continue to dog three of the nation's largest airline companies, 2C. WHAT TO DO WITH BONDS Investors are sitting on top of nearly $6 billion of savings bonds that no longer are earning for their owners, 3C. FRIDAY, February 23, 2001 SECTION Dave Berman, business editor, 242-3654, 9 a.m.-6 p.m. BUSINESS DIGEST DOW NASDAQ OIL BONDS i I EY hwmm oMoftiirs toiiaow back Economists downplay rise 30 YEAR COMPOSITE INDEX INDUSTRIALS On the Web Conference Board's Index of Leading Economic Indicators: www.conferenceboard.org as mere temporary bounce Leading indicators Kara in a Iboli at th of Leading taronsitc 120 WEST TEXAS CRUDE $28.82 29 cents 10,526.81 2,244.96 0.23 5.53 0.04 Associated Press NEW YORK Analysts on 1 10 1 109.4 1 fflS Thursday largely dismissed a rise in a key gauge of U.S. economic activity last month as a temporary bounce in a troubled economy.

108. omy could be headed for a recession, ending a record 10 years of uninterrupted growth. In an attempt to stave off a recession, the Fed slashed interest rates twice by a half percentage point in January. Greenspan indicated that the Fed is prepared to cut rates further if needed to jump-start growth. But the fact that the index has jumped albeit temporarily reduces the likelihood that rates will be cut before the next meeting of the Federal Open Markets Committee, Sohn said.

"Because we have higher inflation and now a rebound in the leading economic indicators, Chairman Greenspan and his colleagues will probably want to wait and see," he said. "What the markets want to hear is not the economy picking up steam, they want to hear Chairman Greenspan is lowering interest The New York-based Confer CHanm frami rate reductions. "It is just a temporary blip," said Sung Won Sohn, chief economist at Wells Fargo in Minneapolis. "January was benefiting because of the warm weather and (Federal Reserve) Chairman (Alan) Greenspan gave us a couple of quick fixes, giving us a lot of short-term euphoria." Although the rise in January was the largest increase in more than two years, it failed to offset the declines of recent months, the Conference Board said. Last month's increase followed a 0.6 percent drop in December, the largest decrease in five years.

Some analysts have expressed concerns that the econ January 0.8 December November ence Board said Thursday its Index of Leading Economic Indicators rose 0.8 percent to 109.4 in January, suggesting the economy is steering clear of a rates." In a separate report released Thursday, the number of Americans filing new claims for unemployment benefits rose by 4,000 last week after declining the week before, the Labor Department said. While the rise in the index in January shows that the economy has tiptoed around recession, it does not ease doubts about where it is heading, economist Mark Zandi said. "We're dancing with recession. It's very close," he said. Nasdaq dive, 2C.

flttt But economists said the up- 100- A A 0 tick is likely just a rebound in business activity after a slowdown in November and December prompted in part by bitterly cold weather and two interest- 2000 2001 'Seasonally adjusted Source: Conference Board FLORIDA TODAY AP Jewelers go into third generation Bridgestone Sullivans profits have been in business more fall after tire recall Associated Press than 45 years By Sharon Biscardi FLORIDA TODAY TOKYO Profits at Bridge- stone Corp. plunged 80 percent last year, dragged down by the MELBOURNE A family in the jewelry business in Melbourne for almost a half-century will enter its third generation Thursday, as Staci Sullivan and Time Warner has new plan Cable-television company Time Warner Communications is offering a service plan for seasonal customers and customers who plan to vacation for three months or longer. For a one-time fee of $15.95, the normal billing cycle will stop on the disconnect date requested and resume on the return date given by the customer. Customers of this plan are not required to pay a reconnection fee when they return, and all equipment stays in the home. Participation in this plan can be granted only one time in a 12-month period, and enrollment must be for a minimum of three months and a maximum of nine months.

To enroll in the vacationseasonal plan, call (877) TWGEASY. Polaroid will lay off 1 1 percent of workers CAMBRIDGE, Mass. Polaroid Corp. said Thursday it would lay off 950 workers, or about 11 percent of its global work force, in an effort to save $60 million annually. About half the layoffs will occur in Mas-sachusettts, with the rest "spread throughout the world," Polaroid spokesman Skip Colcordsaid.

Earlier this month, the company suspended a 15-cents-a-share dividend on its common stock for the first quarter. Last quarter, Polaroid reported a loss of $5.9 million and warned that a slowing economy would continue to hurt it at least through the first half of the year. Polaroid said it expects to record a pretax charge of $90 million in the first quarter of 2001 related to its restructuring plan. "We are taking aggressive structural and financial steps to make Polaroid more competitive and to take a quantum leap into the important digital marketplace," Chairman and Chief Executive Officer Gary T. DiCa-millo said in a statement The company makes instant cameras and films; digital imaging hardware, software and media; secure identification systems; and sunglasses.

Willamette stands fast against hostile takeover PORTLAND, Ore. The Willamette Industries board of directors is still just saying "no" to Weyerhaeuser Co. In a letter to the board of its rival in Federal Way, the Willamette board in Portland accused Weyerhaeuser of trying "to coerce our shareholders with a low-ball offer," and declared "we are firmly committed to resisting your attempt." Weyerhaeuser Chief Executive Steve Rogel, the former head of Willamette, has been trying to buy his old company since he left Portland late in 1997. After repeated efforts were rebuffed, he launched a hostile takeover last November. Weyerhaeuser is offering $7.1 billion about $48 a share and assumption of $1.7 billion in debt to create what would become the i nation's second-largest wood products company.

On Thursday, the Willamette board released the text of its latest letter in the takeover battle. Willamette's board said the Weyer cost of a massive ore recall that led to a loss of $510 million for the year at its U.S. subsidiary. The Japanese tiremaker, criticized for slow crisis management in the recall, also said Thursday it would nominate a foreigner as a member of its board of directors for the first time. It named John Lampe, who is chief executive at its U.S.

subsidiary Bridgestone Firestone, to the post, subject to shareholder approval next month. Last August, Bridgestone Firestone, based in Nashville, recalled 6.5 million tires investigated in 174 traffic deaths and more than 700 inju i 1 A 'J her fiance, Jason Walden, take over Sullivan's Jewelers at the Oaks. The store, at 1800 W. Hibiscus is owned by her mother, Isabel Sullivan, who opened it in 1987 with Staci's father, the late Doug Sullivan. The couple had spent years learning the business under Doug's father, Joseph Sullivan.

A local jeweler since 1955, he owns Sullivan's Jewelers at 209N.BabcockSt As a child, Staci Sullivan often visited her grandfather's store, and said carrying on the decades-long family tradition is important to her. "He is what inspires us," she said of Joseph Sullivan. "Seeing what he has done and being so involved with his customers he's seen a lot in his life." Although Staci always was interested in the jewelry business, the turning point came in 1998, when she and her mother attended the Basel Watch, Clock and Jewelry Show in Basel, Switzerland. "That show is the biggest and considered the most prestigious show in the world, Staci Sullivan said. "We saw unusual creations diamonds and very rare garnets in pieces that were bought by Middle Eastern royalty." She said that when she returned from that show, she had a new outlook and enthusiasm for the business.

"I always worked in the business, but after that, I looked at it as more of an art form," Staci Sullivan said. "Everything changed after that, and my sales went way up." For Isabel Sullivan, "The customers will be the area I will miss the most," she said. While operating the store was all-consuming, "we get to celebrate all of life's celebrations See SULLIVAN'S, 2C A i haeuser offer "grossly undervalues" the second-largest company in Oregon at a time when the average value of forest products industry stocks has increased about 16 percent since November. The board said a threatened proxy fight over control of Willamette shares "will not change our tesolve." However, the board added, Willamette is "willing listen to any serious, legitimate 111 ries. Most of the reported accidents involved Ford Explorer sport-utility vehicles.

The company's tires are linked to three accidents in Brevard County between October 1999 and April 2000, which resulted in four deaths. Bridgestone profits fell to 17.7 billion yen ($152 million) for the fiscal year ending in December, largely because of the recall costing the company 81 billion yen ($754 million). It earned 88.69 billion yen in 1999. Sales fell 4 percent to 2.01 trillion yen ($17 billion) from 2.09 trillion yen a year ago. The results were largel; in line with the company's revised forecast released in December.

In trading Thursday on the Tokyo Stock Exchange, Bridgestone shares fell 1.13 percent Bridgestone President Yoi-chiro Kaizaki, who has said he will step down next month to take responsibility for the recall, acknowledged his company's image was badly hurt and there was no telling when the damage would end. "I can't say with confidence when sales will return to previous levels," he told reporters. Sales of Firestone-brand tires fell 40 percent last year. Overall sales at BridgestoneFirestone, including brands other than Firestone, totaled $7.55 billion last year, about the same as the previous year. Lampe, 53, an American, replaced Masatoshi Ono, who resigned in October, and became the first non-Japanese to lead BridgestoneFirestone.

Lampe joined Firestone Tire Rubber Co. in 1973. Bridgestone bought out Firestone in 1988. Kaizaki said Lampe was named to the parent company board because others who had held his post had been board members. It was unnatural to keep him out when Japanese who work under him are on the board, Kaizaki said.

"We went beyond race," Kaizaki said. On the Web Archive coverage of the BridgestoneFirestone tire recall: www.floridatoday.comnews proposal that may benefit our shareholders. Malcolm Denemark, FLORIDA TODAY excited about the business after going to a Swiss jewelry show. "After that," she said, she looked at the work "as more of an art form." STACI SULLIVAN, right, is taking over Sullivan's Jewelers in Melbourne from her mother, Isabel. The younger jeweler said she became Penske Truck Leasing large competitor to buy TP4rTMfi Pa PpnslfP Tnirlf Tae Five Brevard restaurants hit top 200 ing Co.

said Thursday it has nearly com- i urn ri pieieu lis acquisition 01 uiiuiigiuu, uci. 'Florida Trend' restaurants Five Brevard County establishments were listed on Florida Trend magazine's top 200 UtULU iWUllW MW The $754 million deal announced last month, unites the nation's second-largest truck leasing and rental company, Penske, with the third-largest, Rollins. Ryder is the No. 1 truck leasing company Penske, based in Reading, said it has completed its tender offer, paying $13 a avnn'rp K4 9 million shares restaurants in Florida. about 95 percent of the outstanding shares of Rollins.

The company expects to com plete the deal next week. Ponds has a flwt nf more than 144.000 i -l nkruif 7W Watinna in thp ITnitpd UIIUVS at auuui I xjyj States, Canada, Mexico, South America and According to Bernard's spokeswoman Jane Vefter, "We were first named in 1969, just two years after they started their listing." The magazine cited Bernard's for more than a half-century "of success serving fresh seafood off its own boats, with an adjacent raw bar as casual as its spin-off on the docks of Port Canaveral." Cafe Margaux, 220 Brevard Ave. in Cocoa Village, features fine food and catering. Owner Alex Litras says it's the eighth year that his restaurant has been recognized by Florida Trend. The publication notes that "owners have polished this little gem to perfection serving such surprises as pan-seared pheasant breast over green-pea See RESTAURANTS, 2C By Bill Greer FLORIDA TODAY Five Brevard County restaurants have been named among Florida's Top 200 eating places by Florida Trend magazine.

The listing, done annually, considers "excellence in food, atmosphere and customer service." The 2001 listing appears in the magazine's February issue. Magazine spokeswoman Donna Lynch said the choices were made "by ballots sent in by our readers. Our staff member, Robert Tolf, then visits each restaurant secretly." These are the local restaurants honored, plus an excerpt of what the magazine said about them: Bernard's Surf, 2 S. Atlantic Ave. in Cocoa Beach, received the honor for the 32nd consecutive year.

Europe. It has annual revenues oi aooui Dixie Crossroads 1475 Garden St. Titusville Cafe" Margaux 220 Brevard Ave. Cocoa Village The Mango Tree 118 N.Atlantic Ave. Cocoa Beach Bernard's Surf 2 S.

Atlantic Ave. Cocoa Beach The Dove 1790 Highway A1 A Satellite Beach $2.7 billion. PnlUnc cprvieps more than 53.000 vehl- cles from about 270 locations the Umted States and Canada. It had $720 million in far ttiA fiscal vpar ending Sent 30. Founded in 1988, Penske Truck Leasing is a joint venture between GE Capital and Detroit-based Penske which is L6S headed by race-car legend Koger rensKe.

Briefs compiled by Jennifer Wirth and The Associated Press. S.P.Harris, FLORIDA TODAY mm.