Business memo 6/17/02

AAL branch honored for community service

Aid Association for Lutherans/Lutheran Brotherhood is recognizing the branch in Gordonville, Mo., for its effectiveness in bringing the company's charitable resources straight to its members own community.

The 7275 branch in Gordonville recently received a Gold Star rating, the highest given by the fraternal organization, for its community service efforts.

Heinz making changes to StarKist, 9Lives

Food giant H.J. Heinz plans to spin off sluggish brands including StarKist tuna and 9Lives cat food and merge them with a reorganized Del Monte in which Heinz shareholders will own a 75 percent stake.

The companies said last week that the businesses being spun off generate sales of about $1.8 billion, or 20 percent of Heinz's annual sales, and that the boards of both companies have approved the plan.

Under terms of the deal, Heinz will create a new subsidiary that will be spun off to Heinz shareholders and immediately merged into a unit of Del Monte.

Cold weather chilled shopping in May

Unusually cool weather chilled shoppers' appetites to go out and spend in May, driving down retailers' sales by the largest amount in six months. The pullback came even as wholesale prices fell for a second straight month.

With shoppers exhibiting less vigor and inflation under control, Federal Reserve chairman Alan Greenspan and his colleagues are likely to keep short-term interest rates at 40-year lows to help along the economic recovery, analysts said.

In latest batch of economic data released last week, retail sales fell 0.9 percent in May, after a strong 1.2 percent advance the month before, the Commerce Department reported. Consumers trimmed spending on cars, clothes, and building and garden supplies. Lower gasoline prices also contributed to the decline.

Tyco stock rebounds after announcement

Shares of Tyco International Ltd. rebounded strongly Thursday after the company received approval to shed its lending unit and announced plans to streamline operations.

Tyco said it is selling its operational headquarters building and moving employees to a nearby site as part of an effort to save $125 million a year. About 115 corporate staff positions will be eliminated, chief financial officer Mark Swartz said Thursday. The company is also getting rid of all of its aircraft.

-- From staff, wire reports