Delta proposes cost cutsDelta Air Lines, awash in red ink...

BUSINESS DIGEST

December 18, 1992

Delta proposes cost cuts

Delta Air Lines, awash in red ink, announced a raft of cost-cutting steps yesterday intended to restore profitability.

The company said management recommended to the board that its quarterly dividend be reduced to 5 cents a share from 30 cents and that salaries for workers be cut by 5 percent. Delta also said it planned to defer capital expenditures for aircraft deliveries by at least an additional $400 million. Spending plans for facilities and ground equipment through 1995 have also been cut by $600 million, the company said.

Report backs banking rules

Federal banking authorities said yesterday that it cost banks $17.5 billion each year to comply with increasingly stringent and complex regulations, but they cautioned against relaxing the rules as a way of stimulating the flow of credit to encourage economic growth.

The conclusions were made in the annual report to Congress by the Federal Financial Institutions Examination Council, a committee of banking regulatory agencies.

GM to build Isuzu trucks

General Motors Corp. and Isuzu Motors Ltd. have reached a preliminary agreement for GM workers in Wisconsin to build trucks for the Japanese automaker beginning in early 1994, the companies said yesterday.

The truck line, which will initially be sold only in California, is expected to add 6,000 to 12,000 units of production a year to GM's Janesville, Wis., plant.

Savings institutions set record

The nation's savings institutions earned $4.05 billion in the first nine months of this year, surpassing the previous full-year record set in 1978, the government said yesterday.

Profits in the July-September quarter totaled $1.27 billion, up slightly from $1.23 billion in the second quarter, the Office of Thrift Supervision said.

Mid Atlantic Telecom gets offer

Rochester Telephone Corp., based in Rochester, N.Y., said yesterday that it signed a letter of intent to purchase Mid Atlantic Telecom Inc., a Washington-based long-distance company that has about half of its customers in Maryland. Terms of the sale were not disclosed.

The company, which buys bulk amounts of time on long-distance networks and resells them to businesses, has 42 full-time employees and has sales offices in Washington and Baltimore. The purchase was expected to be completed by the end of March.

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