Price, Alex. Brown post record gainsT. Rowe Price...

BUSINESS DIGEST

January 27, 1994

Price, Alex. Brown post record gains

T. Rowe Price Associates Inc. and Alex. Brown Inc. each reported record earnings yesterday.

With more than $54 billion in clients' funds under management, T. Rowe Price reported a 53 percent increase in fourth-quarter profits, to $14.7 million, or 48 cents a share, from $9.6 million, or 32 cents a share in the fourth quarter of 1992.

The parent of Alex. Brown & Sons Inc. saw earnings during the fourth quarter rise 85 percent, to $38.9 million, or $2.42 a share, from $21.1 million, or $1.37 a share, a year earlier.

Scott Paper to slice work force

Scott Paper Co. said yesterday that it will cut a quarter of its work force, or 8,300 employees, in a move to compete with its lower-cost rivals.

It will cost the company $381 million, resulting in a huge loss.

The nation's largest producer of napkins, paper towels, tissues and other paper products said more than half the cuts will be in its international operations.

Philip Morris' profits down

Philip Morris Cos. yesterday reported sharply lower earnings for the latest quarter, citing restructuring and severance-pay charges of nearly $1 billion.

For all of 1993, the nation's largest cigarette maker said its profits were squeezed by a cigarette price war, which it touched off by lowering the price of its premium-brand cigarettes.

In the fourth quarter, the New York-based food and tobacco company said its net plunged to $339 million, or 38 cents a share, from $1.2 billion, or $1.34 a share, a year earlier. Revenues were flat, at $15 billion.

SEC investigating Spectrum

Spectrum Information Technologies Inc. yesterday confirmed that it is being investigated by the Securities and Exchange Commission.

It said the investigation relates to statements made last May regarding the value of its license agreement with American Telephone and Telegraph Co.

The SEC probe is based on a sharp jump in Spectrum's stock last spring after a company executive said the patent-licensing agreement with AT&T would be worth "hundreds of millions of dollars" in new business. AT&T later said Spectrum was exaggerating the breadth and value of the licensing agreement, and Spectrum's stock consequently plunged.

Kodak to market discount film

Eastman Kodak Co. said yesterday that it would introduce its first discount film to compete with private-label brands that have been nibbling away at the market share of its premium brands.

Kodak said the discount film, called Funsaver, would be priced about 20 percent less than its standard Gold Plus 35-millimeter film and would be available only at certain times of the year, when demand is low.

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