Thursday, Aug. 7, 2003 | 11:11 a.m.
Litigation hurts earnings
SANTA BARBARA, Calif. -- Tenet Healthcare Corp., the focus of multiple U.S. investigations, had a second-quarter loss as it wrote down the value of some of its hospitals and spent more to cut jobs and fight litigation.
The net loss of $195 million, or 42 cents a share, compares with net income of $242 million, or 48 cents, a year earlier, the company said in a filing. Revenue fell 1.5 percent to $3.38 billion.
Tenet had expenses of $322 million, or about 69 cents a share, for settling a government investigation and defending lawsuits, writing down the value of hospitals that have lost revenue, cutting jobs as part of a reorganization and for a tax dispute with the Internal Revenue Service.
Biggest gain in 13 months reported
U.S. retailers including Wal-Mart Stores Inc., Target Corp. and Gap Inc. said July sales rose more than forecast as shoppers snapped up clothing and discounted summer merchandise amid signs the economy may be improving.
The sales gains led to better-than-expected quarterly profit at chains including New York-based AnnTaylor Stores Corp. and Wal- Mart Co. Gap, the biggest U.S. clothing retailer, said profit in the second-quarter ended Aug. 2 rose to as much as 22 cents a share after July same-store sales jumped 9 percent.
Sales at stores open at least a year rose a better-than- forecast 4.3 percent, the biggest gain in 13 months, according to Bank of Tokyo-Mitsubishi Ltd. Wal-Mart said consumers who cashed federal child-credit checks at its stores spent about 15 percent of the amount during their shopping trips. Retailers cleared out seasonal goods by lowering prices on items such as swimwear.
Parent triples debt estimate
RENO -- Amerco Inc., whose stock has doubled since its June bankruptcy on speculation that it would be able to repay its debt, reported in a court filing that it has liabilities almost three times larger than previously disclosed.
Amerco, parent of the truck rental company U-Haul, listed $1.78 billion in assets and $2.35 billion in debts in court papers filed this week. When it filed to reorganize under Chapter 11 on June 20, it listed $1.04 billion in assets and $884 million of debts with the U.S. bankruptcy court, an indication that creditors might be fully paid.
The additional debt makes it less likely that there will be money left over for shareholders after creditors are paid, lawyers said. Owners of common stock of bankrupt companies usually get little or nothing after court-supervised reorganizations because, under bankruptcy laws, all debts must be paid before shareholders receive anything.
Summerlin requires EPA standards
The Howard Hughes Corp., developer of Summerlin, said all homes built in Summerlin will now have to meet standards set by the U.S. Environmental Protection Agency under its Energy Star program, which aims to improve energy efficiency while protecting the environment.
Larry Brocato, executive vice president, said the new requirement means more than 30,000 new Summerlin homes will be built to Energy Star specifications.
Common features of the homes include improved insulation, high-performance windows, tightly-sealed ducts and more efficient heating and cooling equipment.
Fire suppression to be offered
TRAVERSE CITY, Mich. -- Ford Motor Co. said Wednesday it will begin offering fire-suppression technology on its Crown Victoria police cars, which have been linked to numerous deaths in rear-end collisions that caused gas-tank explosions.
Ford spokeswoman Carolyn Brown confirmed the new equipment would be used but said details were being withheld until a news conference Thursday in New York.
At an automotive seminar Wednesday in this resort city, Ford president and chief operating officer Nick Scheele declined to discuss the new technology.
About the Crown Victoria, Scheele told reporters, "It's a very safe vehicle, but it's got some very difficult usage conditions." Police unions and some political leaders have complained about the safety record of the Crown Victoria Police Interceptor, which is used by about 85 percent of all police departments.
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