Thursday, April 23, 1998
The Cincinnati area will become home to two AutoNation USA used-car superstores as a result of Republic Industries Inc.'s deal Wednesday to buy rival Driver's Mart Worldwide Inc. for $40 million.
Cincinnati auto dealer Keith McCluskey, a founder of the 14-dealer Driver's Mart chain, said his franchise that opened in February in Warren County will be renamed AutoNation USA. It will operate along with AutoNation's outlet in Forest Park, which opened in October.
"Once you get past the emotionalism of giving up the Driver's Mart name, this is the right thing for our customers and our franchisees," Mr. McCluskey said.
Republic, which owns 26 AutoNation stores, expects the company to franchise an additional 19 stores with Driver's Mart retailers in the next 2 1/2 years to speed its expansion into smaller cities. Republic expects to have 90 to 100 AutoNation stores by the end of 2000.
Mr. McCluskey, chief executive of McCluskey Chevrolet-Geo, retains the franchise rights for Louisville, Lexington, Ky., and Columbus, but those outlets will now be under the AutoNation name.
Ohio Casualty 2Q profits to drop 23 cents a share
Hamilton-based Ohio Casualty Corp. expects its second-quarter earnings to be reduced by $12 million, or 23 cents a share, because of storm damage claims in the South.
The property and casualty insurer said damage to houses, cars and other property in Kentucky and Tennessee will cut into profits. The company doesn't expect the losses to hurt its first-quarter profits, which are expected to be released Wednesday.
In the second quarter of 1997, Ohio Casualty reported net income of $75.8 million, or $1.33 a share.
Its shares closed at $50.12 1/2, unchanged.
Council gives approval to lease for Shillito
Cincinnati City Council Wednesday approved a plan to lease the Shillito building to Towne Properties, advancing a proposal to put at least 98 apartments in the downtown landmark on West Seventh Street.
The council also approved a $2 million grant to clean up the city-owned property for the $10.5 million redevelopment. Rehabilitation could begin in late summer, pending Cincinnati School Board approval of a tax increment package.
The city and Towne hope to eventually develop the entire 814,000-square-foot building for residential, office and retail uses.
First Franklin plans 3-for-2 stock split
First Franklin Corp. will split its common shares 3-for-2 and intends to raise its annual cash dividend 12.5 percent, the Cincinnati thrift holding company said Wednesday.
The parent of Franklin Savings and Loan said stockholders will get one additional share for every two shares they own. The split will be paid May 10 to stockholders of record May 2.
Its stock closed up $1.12 1/2 a share at $29.25.
The thrift also expects to boost its dividend to 30 cents a share from 26.66 cents a share on a post-split basis but has not formally declared a change.
Timken plans to build $110M steel tube mill
Timken Co. is planning a $110 million steel tube mill to expand production, but the location has not been determined.
Timken expects its headquarters community, Canton, to be among the sites considered, Timken spokeswoman Elaine Russell Reolfi said. The company will consider proposals from elsewhere in Ohio and other states, she said.
