Business failures up in Md.Maryland was one of only five...

BUSINESS DIGEST

August 03, 1994

Business failures up in Md.

Maryland was one of only five states where the number of business failures rose during the first half of the year, said a survey released yesterday, as economic growth in major industries pushed failures down 20 percent nationwide.

A total of 36,790 U.S. businesses failed during the period, compared with 45,906 during the first half of 1993, Dun & Bradstreet reported.

The only states with a rise in failures were Arkansas, 45 percent; Montana, 30 percent; Oregon, 25 percent; Maryland, 8 percent; and Washington state, 3 percent.

LTV wins price increase

LTV Corp. has won a 10 percent price increase for steel sold to Chrysler Corp., setting the stage for similar increases from General Motors Corp. and Ford Motor Co., analysts said yesterday.

News of the LTV-Chrysler agreement came one day after expectations about Chrysler's supply contracts drove the six stocks measured by the Standard & Poor's Steel Index to a 34-year high of 95.90. The agreement was seen as signaling stronger results for the Cleveland-based steelmaker and its competitors, which are expected to win hefty price increases from Chrysler in their negotiations. The index rose 1, to 96.90, yesterday.

OTS ends Md. thrift supervision

First Citizens Financial Corp. in Silver Spring said yesterday that the federal Office of Thrift Supervision has terminated a supervisory agreement with the company that dates to December 1991, because of continued improvement in the company's asset quality. First Citizens, which has $532 million in assets, is the parent of Citizens Savings Bank F.S.B., which has 14 branches in Montgomery and Frederick counties.

Survival Technology to sell unit

Survival Technology Inc. said yesterday that it agreed to sell its medical device division to Brunswick Biomedical Corp for $2 million and a percentage of future revenues. The Rockville company's division designs and produces electronic heart monitoring devices known as CardioBeeper ECG transmitters. Brunswick, a Boston-based biomedical company, bought Survival Technology's emergency care products division in 1990.

In addition to $2 million, Survival Technology said it would receive payments equal to 8 percent of the division's net sales over the next five years, up to $1 million. The company expects to report an after-tax gain on the sale of about $1 million in its fourth quarter, which ended July 31.

Clarification

Hess's Department Stores Inc., the Pennsylvania retail chain that announced Monday that it will sell its 30 stores and go out of business, is not affiliated with Hess Shoes. Hess Shoes, a Baltimore-based company that emerged from bankruptcy proceedings last year, is proceeding with expansion plans.

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