Dow Jones: 10,284.46 ជ +39.97 S&P 500 1,128.55 ជ +5.05 Nasdaq: 1,910.09 ជ +6.01

t MARKETS 11, 12 THE BLADE, TOLEDO, y SATURDAY, SEPTEMBER 18, 2004 SECTION B, PAGE 10

IN BRIEF AREA MANUFACTURER TO SCRAP 65 JOBS FROM BLADE STAFF AND WIRE REPORTS

Malls ring up rise in sales per visit Reichert Stamping to shut by Nov. HACKENSACK, N.J. — The By HOMER BRICKEY 34. nation’s shoppers made fewer BLADE SENIOR BUSINESS WRITER trips to the mall in 2003 than in “We’re up against it right Reichert Stamping Co., a 2002 but spent more time and now,” said Mr. Baumhower. Toledo-area manufacturer for money while there, according to “Now we’re looking at 220 to 230 80 years, has told workers it will a report by International Coun- out of work.” shut down by early November, cil of Shopping Centers. The company was founded in United Auto Workers offi cials The average amount of 1924 as Reichert Float and Man- said yesterday. money spent in a mall visit rose ufacturing by Paul Reichert to The closing will displace nearly 16 percent in 2003 to make copper toilet-tank fl oats, more than 50 hourly and 15 $83.30, up from $71.90 in 2002. but by the 1940s the fi rm was salaried workers and will leave Average time spent per visit in- doing mostly automotive work. a 225,000-square-foot plant creased from 75 to 82 minutes. In recent years, its custom- vacant at Central Avenue and The fi ndings, drawn from in- ers included automakers such Centennial Road in Sylvania terviews with more than 23,000 as Mitsubishi and automotive Township. shoppers at 79 malls, reverse suppliers such as Visteon and The company, which was a downturn recorded by the Delphi. owned by the Reichert family for ICSC in 2002. That year, average “I think it’s a shame,” said three generations until about spending per visit dropped 4.3 Robert Reichert, the previous fi ve months ago, struggled in percent from the previous year. owner, when told of the closing. recent years, particularly when “I had hoped they would make it Sky Financial Group steel prices shot up, union lead- and be a success.” ers said. Mr. Reichert said he owns the will buy back stock In late April, American Metals THE BLADE/HERRAL LONG building, opened in 1979, and BOWLING GREEN — Sky Industries of Paris, Ky., acquired Reichert Stamping in Sylvania Twp. employs more than 50 hourly and 15 salaried workers. hopes to fi nd a new tenant. “It’s Financial Group Inc. yesterday the plant’s assets and liabilities a good facility,” he said. announced it plans to repur- from Robert Reichert. ing plants in northwest Ohio,” about 250 and had revenue of closings taking place in com- Reichert Stamping President chase up to two million shares “It’s sad,” said Greg Myers, Mr. Myers said. $30 million annually, according ing weeks, including plans by Pete Peterson declined to com- of its common stock. chairman of the Reichert unit The UAW has more than 100 to published records. Alcoa Inc. to shut by year-end ment yesterday and referred The stock buyback program, of UAW Local 12 and a 31-year members at Reichert, but many Bruce Baumhower, president its 9-year-old Northwood plant questions to UAW offi cials. over a twelve-month period, is tool-and-die worker and mill- of them were laid off, he said. of Local 12, said the union will employing 140, and the closing Contact Homer Brickey at: to raise money to be used “for wright for the company. Wages ranged from $13 to $18.50 try to fi nd other jobs for the dis- by November of 74-year-old [email protected] general corporate purposes.” “This was probably one of the an hour, averaging about $15. At placed workers, but that task is Gerity-Schultz Inc., a maker of or at 419-724-6129. last major family-owned stamp- Consumer sentiment its peak, the plant employed tougher because of other plant carburetor bodies that employs stagnates, index shows NEW YORK — U.S. consumer sentiment stagnated in early UPBEAT OVER THE UPTICK A HOT SPOT September as doubts about the economy and the job market persisted, a report indicated yesterday. FBI finds fraud The University of Michigan’s index of consumer confi dence moved lower to a preliminary reading of 95.8 from 95.9 in Au- gust, according to sources who is widespread in saw the report. Analysts had looked for a rise to 96.5. U.S. economic growth weak- ened in the second quarter and forecasters are now trying to mortgage field determine whether that softness was transitory or marked the start of a longer-term trend. The answer to that ques- Suspected-offense reports triple

tion will determine the pace at ASSOCIATED PRESS which the Federal Reserve is One common mortgage fraud WASHINGTON — Fraud is likely to raise interest rates, with scheme is “property fl ipping,” running rampant in the nation’s widespread implications for in which property is purchased, mortgage industry, with nearly consumers and businesses. appraised fraudulently at a three times as many reports of much higher price, and then IBM in talks to settle suspicious activity so far this quickly sold. year as in 2001, a top FBI offi cial The mortgage holder is then pension-plan lawsuit said yesterday. left with property that is in re- NEW YORK — IBM said “It has the potential to be an ality worth much less than the yesterday it is in talks to settle epidemic,” said Chris Swecker, a mammoth lawsuit alleging a who is the assistant director for The FBI’s agents pension plan adopted by the criminal investigations for the fi rm in the 1990s discriminated Federal Bureau of Investiga- are pursuing 533 against 140,000 older workers. tions. IBM agreed this week to Through the fi rst nine months investigations into settle a small part of the lawsuit, of 2004, mortgage companies mortgage fraud, up involving just a few thousand and banking institutions have workers, in a case closely reported more than 12,100 in- from 102 just three watched by large companies stances of suspicious activity with similar pension plans. The compared with 4,220 reported years ago class-action suit challenges its in 2001. loan it issued. cash balance pension plan. The FBI has 533 pending mortgage-fraud investigations, Other schemes involve fake ‘Fresher, friendlier’ logo compared with 102 in 2001. identities and credit histories, Law enforcement offi cials use of “straw buyers” to con- is adopted by Sears say the lending and refi nancing ceal the true buyer’s name, and HOFFMAN ESTATES, Ill. boom that accompanied record- forged loan documents. — Sears, Roebuck and Co. has low interest rates in the past few Mortgage fraud is one of sev- adopted a new logo, only the years is a key reason for the in- eral fi nancial crimes that the FBI fourth in its 118-year history, REUTERS creased fraud. The FBI has iden- has been targeting for extra at- to give it what it describes as a tifi ed several “hot spots” around tention in recent months. Dennis McGowan, left, and Richard Rose watch the early trading numbers on the This effort, which involves 47 “fresher, friendlier” look. fl oor of the New York Stock Exchange yesterday. The market surged despite rising oil the country where this type of The company says it began FBI fi eld offi ces, has resulted in prices — now above $45 a gallon — with the Dow climbing nearly 40 points for the fraud is especially prevalent. switching to the revised logo Among the states are Florida, more than 151 charges since Au- day. Further good news was provided by Ford Motor Co., which raised its earnings this week in newspaper ads and California, Nevada, Michigan, gust in cases with potential loss- by erecting new signs at a store forecasts, and Texas Instruments Inc. rose 49 cents to $22.08 after the semiconduct- Missouri, and Illinois. es to banks and other businesses in Vernon Hills, Ill., 15 miles east or and electronics manufacturer authorized a $1 billion stock repurchase plan. “You can fi nd this anywhere in of an estimated $3 billion. of its headquarters. the country,” Mr. Swecker said. The logo is brighter blue than its predecessor, with “Sears” no longer in all capital letters. A red arc underlines the word. Use of just-in-time staffing Jobless rates drop in area Ford raises outlook Jobless rates in all but one northwest Ohio counties dropped for 3rd-quarter earnings in August, even as the state rate rose to 6 percent, according DETROIT — Ford Motor Co. holds down U.S. job gains to fi gures released yesterday by state Department of Job and Family Services. raised its third-quarter and full-year earnings guidance for BLOOMBERG The Toledo rate remained high, at 9.1 percent, while Han- U.S. production labor force is Policy Institute in Washington. cock County had the area’s lowest rate at 4.3 percent. Paulding 2004 yesterday on the back of WAYNESBORO, Va. — Vir- made up of temporary work- He likens the trend to the inven- County was the only local county to increase from July, up to continued strong performance ginia Panel Corp. is boosting ers; retailers Best Buy Co. and tory management procedures 7.1 percent. at its fi nancial services arm, overtime and hiring temporary Sears, Roebuck & Co. are trans- companies began using in the even as its car business in the and part-time workers to avoid ferring hundreds of workers 1980s, by ordering parts and County Labor Total Unemployment rates key U.S. market remains well adding full-time employees. from their payrolls to outside supplies only as they’re needed. force jobless 8/04 7/04 8/03 behind year-ago results. Two years ago, the company contractors. The rise in just-in-time staff- Allen 53,000 3,200 6.1 7.6 6.4 Ford raised third-quarter considered these stopgap mea- The shifts in hiring strategy ing has been propelled by pres- earnings guidance by 10 cents sures until the economy im- contributed to weakness in the sure from stockholders to turn Defi ance 21,200 1,400 6.5 7.5 6.3 per share to a range of 10 to 15 proved, Chief Financial Offi cer labor market since the 2001 profi ts even when demand falls Erie 47,200 2,300 4.8 5.9 4.7 cents from continuing opera- Trigg Copenhaver said. Now recession, said Mr. Cappelli, off and, second, by rising costs Fulton 23,000 1,400 6.3 9.5 5.4 tions, excluding special items, they’re permanent. director of Wharton’s Center of hiring full-time employees, Hancock 43,900 1,900 4.3 4.8 4.2 compared with zero to 5 cents. “Global competition is forc- for Human Resources. There particularly in benefi ts such as Henry 17,600 900 5.1 8.3 4.7 United Airlines seeks ing everybody to do whatever are 24.2 million part-timers in medical insurance, said Sylvia Huron 28,900 2,300 8.0 8.5 7.3 they can to hold costs down today’s work force of 131.5 mil- Allegretto, another EPI econo- Lucas 228,000 17,700 7.8 8.6 7.4 $500M more in cost cuts indefi nitely, and with this, not lion people, up from 23 million mist. only is it cheaper, but you can Toledo 159,500 14,500 9.1 10.0 8.6 CHICAGO — United Airlines when the expansion began in “Chief fi nancial offi cers have expand and contract your work Ottawa 23,700 1,300 5.7 6.3 5.7 said yesterday it will need about November, 2001; the number of an aversion to adding Social Se- force as you need to,” said Mr. Paulding 9,900 700 7.1 6.3 7.2 $500 million in annual cost cuts temporary workers rose 309,000 curity numbers to the payroll,” Copenhaver, whose Waynes- above the $655 million now in to 2.6 million. said James Gelly, chief fi nancial Putnam 21,400 1,200 5.8 6.5 4.9 boro, Va.-based fi rm makes the works and got court ap- “Nobody wants to be faced offi cer of Milwaukee-based Sandusky 32,300 2,300 7.1 8.5 7.0 electronics-connection panels. proval for more time to develop with the fi xed cost of maintain- Rockwell Automation Inc., the Seneca 29,400 2,100 7.2 10.1 6.7 Staffi ng practices that were a reorganization plan without ing a large full-time work force largest maker of factory-auto- Van Wert 15,500 700 4.8 7.1 5.2 considered temporary fi xes in interference from creditors. if business suddenly falls off mation equipment. “They’ve the early 1990s now are woven Williams 19,500 1,400 7.0 7.8 7.1 The amount of added annual — it’s easier to hire and fi re this become more conservative as into how businesses operate, Wood 66,500 3,500 5.3 6.8 4.9 cost cuts is an early assessment, way,” he said. their costs have risen.” said Peter Cappelli, a professor State of Ohio 5.9 mil 370,000 6.3 6.0 6.1 Jake Brace, United’s executive “I call them ‘just-in-time’ em- Profi ts of U.S. corporations at the Wharton School of Busi- 148 mil 8 mil 5.4 5.5 6.1 vice president and chief fi nan- ployment practices,” said Jared soared by a third to $1.02 tril- ness in Philadelphia. About a cial offi cer, told reporters after a Bernstein, senior economist lion in 2003 from $767.3 billion Source: Ohio Department of Job and Family Services tenth of Toyota Motor Corp.’s at the labor-backed Economic court hearing in Chicago. See LABOR, Page 13

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