Toyota releases dour annual report
Toyota Motor Corp., the strongest of Japan's automobile companies, may suffer its first operating loss ever this year if the Japanese yen stays at its current high level, officials said yesterday.
The company's grim prognosis, a testament to the new troubles of Japan's once nearly invincible auto companies, was made as Toyota announced financial results for its last fiscal year, which ended on June 30. Sales were flat while net income fell 25.8 percent, the third consecutive yearly decline.
Stocks of cable suppliers soar
Shares of cable television equipment suppliers surged yesterday, many to all-time highs, amid expectations that equipment orders from telephone companies will balloon in the wake of a landmark court decision Tuesday.
Scientific-Atlanta Corp., DSC Communications Corp., General Instrument Corp. and BroadBand Technologies Inc., were among bevy of stocks posting big gains in reaction to Tuesday's federal court ruling that opened the door for Baby Bells to bring video programming into their customers' homes.
Harley-Davidson plans expansion
Harley-Davidson Inc. announced plans to invest $80 million in a factory expansion that will increase annual production of its motorcycles from 81,000 to 100,000 by the end of 1996.
The $80 million will come from cash reserves and augment the $50 million Harley spends each year on capital improvements, the Milwaukee-based company said Tuesday. No new hirings are planned for 2,000-worker factory, which is located near York, Pa.
Germany expects car-output drop
German auto officials forecast yesterday that their output of cars and trucks will fall 20 percent this year.
Achim Diekmann, managing director of the German Automobile Industry Association, said German factories will turn out a little more than 4 million cars and trucks this year, down substantially from 5.2 million in 1992.
Philip Morris stock roughed up
The Marlboro man got roughed up in stock market trading after Philip Morris Cos.' board held the line on its quarterly dividend and put its 25-year record of annual payout increases at risk.
The owner of brand names including Jell-O, Oscar Mayer and Kraft, as well as Marlboro, said volatility in the domestic cigarette market made maintaining its dividend rate the "most prudent course of action."