Reynolds to lay off 1,000The next casualties in a...

R. J.

September 15, 1993

R. J. Reynolds to lay off 1,000

The next casualties in a cigarette price war: nearly 1,000 white-collar workers at R. J. Reynolds Tobacco Co.

The No. 2 tobacco company said yesterday that it plans to cut the jobs through the middle of next year as it reduces costs, partially as the result of the price war with rival Philip Morris USA. Reynolds, a division of RJR Nabisco Holdings Inc, employs about 11,000 worldwide, about 7,000 in the Winston-Salem, N.C., area.

Weak sales for automakers

Automakers reported scant sales gains in early September, as the weak economy and the Labor Day holiday kept buyers away from dealer showrooms.

Sales of U.S.-built cars and trucks in the Sept. 1-10 period were up 2.1 percent from a year ago to reach 236,473 vehicles. Among Detroit's Big Three automakers, General Motors Corp. alone saw its sales decline in early September, falling 15 percent as its sales of light trucks were off 16 percent.

Japanese GNP fell in 2nd quarter

Japan's economic output shrank in the second quarter, --ing any lingering hopes for a quick recovery and confirming fears that the world's second-largest economy is heading back into recession.

Gross national product in the April-June quarter fell five-tenths of a percent from the previous quarter, or at an annualized rate of 2 percent, the Economic Planning Agency said yesterday.

Home Depot shares drop 10.6%

Home Depot Inc. shares fell 10.6 percent in heavy trading yesterday after Goldman, Sachs & Co. removed the stock from its recommended-for-purchase list.

David Bolotsky, Goldman Sachs' retail analyst, said sales increases at Home Depot stores open at least a year probably will diminish. Shares of Home Depot closed down $4, at $36.25, on the New York Stock Exchange.

Biotech industry losses grew

Losses in the U.S. biotechnology industry widened in the first half of the year as financing became more scarce, according to a report released by Ernst & Young.

The study, based on a survey of 450 chief executive officers, said the industry's losses widened to $3.6 billion from $3.4 billion in the first half of 1992. Total revenue grew 20 percent to $10 billion, while product sales rose 17 percent to $7 billion. Market capitalization reached a record $45 billion.


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