Caterpillar faces strike tonightTalks broke down between...

BUSINESS DIGEST

June 21, 1994

Caterpillar faces strike tonight

Talks broke down between Caterpillar Inc. and the United Auto Workers yesterday, and union officials said 14,000 workers would strike tonight.

"We tried, we honestly tried to avert the strike deadline," UAW secretary-treasurer Bill Casstevens said. The union last week set a deadline of 11 o'clock tonight for a walkout by workers at factories in Illinois, Memphis, Denver and York, Pa.

Caterpillar Vice President Wayne Zimmerman contended the union showed no interest in negotiating a new contract. Federal mediators shuttled between the two sides for part of the day yesterday, but to no avail.

Price rise slows for finished goods

Mid-Atlantic manufacturers expect prices of their finished goods to rise at a subdued 1 percent yearly rate from May through November, the Federal Reserve Bank of Richmond, Va., said yesterday.

That is down from the 1.6 percent yearly inflation pace that producers expected in the survey last month, and represents a reduction from the pace of inflation in 1993.

While the prices of finished goods are expected to rise only modestly, manufacturers said prices of raw materials they buy are rising at a 1.7 percent clip, meaning that the manufacturers' profits may be squeezed.

Honeywell leases Hagerstown site

In a deal made possible by state assistance, Honeywell Environmental Air Control Inc. announced yesterday that it is leasing a 90,000-square-foot building in Washington County that will allow it to double its production capacity of home and commercial air filtering devices.

The Maryland Economic Development Corp., a quasi-public state development agency, bought the $4.3 million building outside Hagerstown, where the Honeywell Inc. subsidiary is now located.

Moorer leaves Allied Research

Andrew Moorer has resigned as chief financial officer of Allied Research Corp. to take a position with an investment banking company in Phoenix, the Landover-based technology company announced yesterday.

Also, Allied said it has retained the accounting company of Friedman & Fuller to perform the external audit of the company's financial statements. Dennis H. O'Brien, who succeeds Mr. Moorer, said the hiring of Friedman is a cost-saving move and unrelated to Mr. Moorer's departure.

Macy-Federated talks expected

The directors of R. H. Macy & Co. have agreed to listen to Federated Department Stores' pitch to combine the two department store operators, according to people familiar with details of the board's meeting yesterday.

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