Thursday, June 18, 1998
Property insurance losses caused by storms in the central part of the nation this spring are expected to total $35 million to $40 million for American Financial Group.
The Cincinnati-based insurance holding company Wednesday described claims for the April-through-June period as "unusually large." They will reduce share earnings for the quarter by 37 to 42 cents and shave 5 points to 6 points off the quarter's combined ratio, AFG said.
The combined ratio is a key indicator of an insurer's profitability, measuring the ratio of losses incurred to premiums earned, and the ratio of commissions and expenses incurred to premiums written. AFG's shares closed up 68 3/4 cents at $44.06 1/4.
Huffy Corp. acquires hardware competitor
Huffy Corp. said Wednesday its True Temper Hardware Co. subsidiary bought a competitor, Lantz Manufacturing Corp.
Huffy, based in Dayton, Ohio, declined to say what it paid for Lantz Manufacturing, which has sales of less than $5 million annually. Lantz, based in Pettisville about 25 miles west of Toledo, becomes part of True Temper Hardware, a supplier of lawn and garden tools. The deal gives True Temper a broader line of leaf rakes and snow shovels, along with lawn-edging products and splash blocks, Huffy's management said.
Huffy's stock closed at $16.56 1/4, up 43 3/4 cents.
Metatec plans to buy CD-ROM Services
Imation Corp. has signed a letter of intent to sell the assets of its CD-ROM Services business to Metatec Corp. of Dublin, Ohio, the company said.
The sale, subject to government approvals, is expected to close in the third quarter of this year, Oakdale, Minn.-based Imation said. Terms of the transaction were not disclosed.
Imation generated revenue of $2.2 billion in 1997, including about $60 million from its CD-ROM Services business. Metatec has annual sales of about $50 million.
Updated Cintech software introduced
Norwood-based Cintech Tele-Management and partner Northern Telecom Inc., the business telephone equipment supplier, have introduced the latest versions of Cintech's automatic call-handling software for small and mid-size offices.
Cintech's Prelude and Cinphony 3.0 software, which can support offices of up to 120 lines and 80 users, includes improved information management tools that collect real-time data on call activity, the companies said.
Nortel said future releases of its Norstar Voice Mail 3.0 product will include Cintech's Minuet, entry level call-distribution software.
Christopher Thompson, an analyst with Dataquest, said both announcements should increase the market penetration for Cintech's products.
Steelworkers' panel endorses higher pay
The leadership of the 700,000-member United Steelworkers of America has endorsed a series of negotiating goals, including higher wages and pensions.
The goals endorsed by the 104-member International Wage Policy Committee in Cleveland will be sent to union conferences representing steel, can, aluminum and rubber industry workers.
The goals include higher wages rather than one-time signing bonuses, increased pensions for 300,000 union retirees, a ban on subcontracting work done by USW members, and improved job security.
