In the Region Allfirst earned $23.8 million in 2nd...

BUSINESS DIGEST

August 16, 2002

In the Region

Allfirst earned $23.8 million in 2nd quarter

Allfirst Financial Inc. reported yesterday that it earned $23.8 million in the second quarter, which ended June 30, compared with a $23 million loss in the quarter a year ago.

For the first six months of this year, the Baltimore-based banking company, a subsidiary of Allied Irish Banks PLC in Dublin, Ireland, posted a profit of $61.6 million. Allfirst lost $4.3 million in the first two quarters last year,.

Total loans in the second quarter were $10.6 billion, about the same as the year before. Noninterest income reached $97.6 million in the quarter, compared with a loss of $17.8 million the year before because of foreign exchange losses.

In February, Allfirst said it lost $691.2 million in a trading scandal that the bank blamed on a rogue trader. During the first half of the year, Allfirst took a $13.7 million pretax charge to cover the cost of the special investigation into the trading scandal.

USAir to continue serving 203 cities, drops Saginaw

US Airways' bankruptcy reorganization plans don't include eliminating service to any of the 204 cities in its network, with the exception of Saginaw, Mich., company officials said yesterday.

Air Midwest, a US Airways affiliate, made an "independent business decision" to end service between Pittsburgh and Saginaw beginning Sept. 7 because of low bookings, said the airline.

US Airways Group Inc. filed for Chapter 11 bankruptcy protection Sunday, saying it would eliminate certain planes and trim staff as part of a restructuring plan. The airline is expected to reduce the frequency of flights to some cities and begin serving others with smaller regional jets. The carrier also plans to use hundreds of regional jets to feed more passengers to its main hubs in Pittsburgh, Philadelphia and Charlotte, N.C.

Corporate Office trust buys 2 Va. office buildings

Corporate Office Properties Trust said yesterday that it has purchased two office buildings in Chantilly, Va., for $48 million, continuing to add to its portfolio and expand its reach into Northern Virginia.

The buildings have a total of 290,245 square feet. They are in the Route 28 corridor within the Westfields Corporate Center, south of Dulles International Airport. They are 98 percent leased.

The Columbia trust also has the right to purchase a 6-acre development parcel nearby. The company now has 760,000 square feet of office space in Northern Virginia.

Marriott to pay $115,000 over Arab-American claim

Marriott International Inc. has agreed to pay $115,000 and apologize to an Arab-American group for refusing to honor its reservations at an Iowa hotel after the attacks of Sept. 11.

The Midwest Federation of American Syrian-Lebanese Clubs claimed that on the afternoon of Sept. 11, the Marriott hotel in Des Moines revoked its offer to be host of the group's annual convention this year. The Justice Department investigated the group's complaint and negotiated a settlement with Marriott, the world's biggest lodging company.

Marriott agreed to pay $100,000 to endow a scholarship fund overseen by the federation, pay $15,000 to be a corporate sponsor of this year's convention and issue a formal apology, Justice Department officials said.

Elsewhere

Boeing contract for Air Force planes worth $9.7 billion

Boeing Co. won a $9.7 billion contract to build 60 transport planes for the Air Force, the Pentagon announced yesterday. The contract calls for the Chicago-based company to deliver the new C-17 Globemaster planes by 2008.

Boeing has been eager to land the contract as shrinking orders from the ailing airline industry have hurt its commercial airline business. The company has cut production in half since Sept. 11 and issued layoff notices to about 30,000 workers.

Congress also has approved Defense Department plans to lease 100 Boeing 767s as military refueling tankers and four 737s to carry administration officials and lawmakers.

Tyco extends its audit as far back as 1999

Tyco International Ltd. has expanded an internal investigation into its finances to include accounting practices dating back to 1999.

Company spokesman Gary Holmes said yesterday that Tyco does not envision making "material adjustments" to its past financial results. He also said Tyco cannot predict the results or duration of a review of the company's accounting by the Securities and Exchange Commission.

In a filing with the SEC, Tyco said the SEC has required the company to reclassify some items. The filing said the SEC also is looking at accounting issues including the adequacy of some disclosures and the company's accounting treatment of security-monitoring contracts, and how Tyco integrated companies it acquired.

Genuity says it might seek bankruptcy protection

Genuity Inc., a seller of high-speed Internet access, has "substantial doubt" about whether it can keep operating and may seek bankruptcy protection, it said in a Securities and Exchange Commission filing.

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