Pepsico moves will cut earningsPepsico Inc. said yesterday...

BUSINESS DIGEST

December 01, 1992

Pepsico moves will cut earnings

Pepsico Inc. said yesterday that restructuring its domestic beverage business and several international businesses will reduce its fourth-quarter earnings by about $125 million after taxes. Pepsico also said that, like many other companies, it is adopting two mandated accounting changes on retiree health benefits and income taxes that will reduce its full-year earnings by as much as $907 million after taxes.

American Airlines trims at top

American Airlines trimmed 576 management employees from its payroll yesterday, a 6 percent cut that will yield a 10 percent annual savings in compensation, company officials said. The airline laid off 286 people and 290 resigned with severance incentives. In October, American said that up to 1,000 employees could be affected by the reduction, which will cut $40 million of $400 million in 1993 management payroll costs.

Sky Chefs to announce layoffs

Sky Chefs Inc., a caterer to American Airlines, is preparing to announce a corporate reorganization that will include laying off "a significant number" of the 200 people who work at the company's Arlington, Texas, headquarters. A Sky Chefs spokesman said the final number of employees who will lose their jobs as a result of the headquarters restructuring is not yet known.

Sharon Steel files for Chapter 11

Cash-strapped Sharon Steel Corp., which laid off almost all of its 2,700 workers this year, yesterday filed for Chapter 11 protection from creditors in U.S. Bankruptcy Court. The filing marked the second time Sharon Steel has asked for bankruptcy protection. It previously filed for Chapter 11 in 1987 and was sold to Castle Harlan Inc., an investment banking firm, in 1990.

Russia misses loan deadline

The Agriculture Department said yesterday that it was notified that Russia again failed to meet a deadline to repay U.S. food loans, less than a week after Russia was suspended briefly from the credit program for late payments.

A banking source said his bank yesterday afternoon filed a notice of non-payment with the Department of Agriculture for Russia's failure to make a required payment of $4.5 million for food credit loans by the close of the business day.

Russia was late on a total of $10.9 million in payments to four banks last week, prompting the Agriculture Department to suspend it for 1 1/2 days from the credit program until it made the payments.

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