Cable group challenges rulesThree days before new cable...

BUSINESS DIGEST

May 13, 1994

Cable group challenges rules

Three days before new cable rate regulations are to take effect, the cable television industry's main trade group challenged them in federal court.

The National Cable Television Association yesterday asked the U.S. Court of Appeals for the District of Columbia to review the regulations, which are designed to cut cable rates 7 percent on ** average. The rules are to take effect on Saturday.

The association didn't lay out its arguments in the court brief, but said the Federal Communications Commission's rate rules violate the First and Fifth Amendments of the Constitution.

AlliedSignal to buy Textron unit

In a significant consolidation of the small airplane engine business, AlliedSignal Inc. said yesterday that it had agreed to buy the Lycoming Turbine Engine Division of Textron Inc. for $375 million in cash.

AlliedSignal, a diversified manufacturing company based in Morristown, N.J., has been seeking to expand its aerospace business, which is based in Torrance, Calif. Its plant in Tucson, Ariz., makes motors for regional transport planes containing 19 to 30 seats.

The acquisition of Textron's Lycoming division will make AlliedSignal the nation's largest manufacturer of small airplane engines.

Craft World files for bankruptcy

After laying off almost a third of its work force, Craft World International Inc. has filed for bankruptcy court protection.

On Friday, the New Windsor company laid off 26 people -- half of its sales representatives and 23 workers at the New Windsor plant.

The layoff leaves 55 employees at the New Windsor location and 16 at a Craft World plant in Ellsworth, Kan., said Pat Hevrdejs, president.

Craft World, which distributes craft supplies, will remain open, Ms. Hevrdejs said.

Crown cuts oil production

Crown Central Petroleum Corp. said yesterday that it cut oil production at its refinery in Pasadena, Texas, by 20 percent because of a decline in margins on its refined petroleum products.

Despite the economic upturn, gasoline prices have remained low because of an increase in imports and U.S. gasoline production, the company said. The Baltimore-based company announced a similar move in December, cutting production at the refinery by 20 percent for about two weeks.

Philip Morris stock rallies

Philip Morris Cos. shares rallied yesterday amid speculatiothat the company may be cose to announcing a split of its tobacco and food businesses, traders and analysts said.

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