Economy slows, but inflation doesn'tThe economy cooled in...


September 02, 1994

Economy slows, but inflation doesn't

The economy cooled in August but not enough to put the freeze on inflation, a widely followed survey of industrial companies showed yesterday.

The National Association of Purchasing Management's August report showed activity at the nation's factories expanded at a much weaker pace than any time in the past eight months, suggesting that the economy is slowing down.

But the survey showed the number of firms reporting higher prices for raw materials rose to the highest level in six years, suggesting that inflation pressures still menace the economy.

Colgate to restructure, cut jobs

Colgate-Palmolive Co. is planning a restructuring that will cost at least $100 million and cut up to 3,000 jobs, or 11 percent of its work force, Bloomberg Business News reported yesterday.

The moves, which could be announced in a matter of days, likely will include the consolidation or closing of some U.S. plants, as well as operations in Colgate's lagging European businesses.

Colgate, which has undergone three restructurings in the last 10 years, had no comment.

Suit against Comsat deal dismissed

Comsat Corp. said yesterday that a Nevada state judge has dismissed a suit challenging the Bethesda-based company's acquisition in June of Radiation Systems Inc., a manufacturer of radar, microwave and satellite equipment.

The suit was brought by shareholders of Radiation Systems, which has been merged into Comsat's technology services unit to form Comsat RSI.

Kmart to sell 51% of sporting chain

Kmart Corp. said yesterday that it will sell shares representing about 51 percent of its sporting goods subsidiary, the Sports Authority, as part of efforts to pay off its debts and bolster its main discount store business.

The move comes a day after Kmart filed a statement with the Securities and Exchange Commission for a sale of 23.4 million shares of common stock in OfficeMax Inc. Kmart said last month it also intends to sell majority stakes in its Borders/Walden Group stores.

Avis to install more hand controls

Avis, the nation's second-largest automobile rental company, has agreed to install more hand controls for the disabled in its cars, the Justice Department announced yesterday.

Attorney General Janet Reno said the agreement was part of an effort to improve compliance with the Americans With Disabilities Act of 1990.

Avis, which had mainly provided the controls in its full-size, two-door rental cars, agreed in a settlement to provide them in all other models.


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