Thursday, September 16, 1999
TRISTATE BUSINESS SUMMARY
P&G to pay all ad agencies on sales basis
Procter and Gamble said Wednesday that its less than 3-month-old experiment with paying ad agencies based on sales of P&G brands rather than with commissions on media spending will become official company policy July 1.
The Cincinnati consumer-products giant first announced the change in November and began implementing the new compensation structure this past July with ad agencies handling seven of its brands.
The new sales-based compensation model will now be used to pay all of the ad agencies that P&G uses.
GE gets European OK for engine partnership
The European Commission has approved an alliance of rivals GE Aircraft Engines (GEAE), based in Evendale, and Pratt & Whitney to develop new aircraft jet engines, GEAE said Wednesday.
The companies formed the alliance in 1996 in order to share the multimillion-dollar research and development costs for producing new engines. The alliance is designing a new line of engines to power future, four-engine passenger aircraft made by Airbus Industrie, based in France, and Boeing Co., based in Seattle.
The European Commission's approval clears the way for the alliance to offer its GP7000 engine for Airbus Industrie's proposed A3XX aircraft, officials of the alliance said. U.S. regulators cleared the alliance's operation in 1996.
Cintech reports record income, profits
Cintech Tele-Management, the Norwood developer of small-office call-management software, recorded the best year in its 12-year history in fiscal 1999.
For the year ended June 30, Cintech reported record net income of $4.05 million, or 32 cents a share, vs. $1.25 million, or 10 cents a share, a year ago.
Revenues were also a record $12.4 million, up 26 percent from $9.8 million a year ago.
Diane Kamionka, Cintech's founder and president, said unit shipments increased 74 percent compared with last year.
Federated launches online bridal registry
Federated Department Stores Inc. and WeddingChannel.com, an online wedding planning resource, are launching a collaborative online and offline bridal registry, announced in May.
A spokeswoman for WeddingChannel.com said the bridal registries of clients with Macy's can now be accessed through WeddingChannel.com.
The arrangement with WeddingChannel.com will let Federated customers register and order at any of its store divisions through the Web site. Federated's recent acquisition of Fingerhut Cos. Inc. catalog and Internet business provides the resources to fill such orders.
Kroger plans bond offering of $750M
Kroger Co. is planning to sell $750 million of bonds in three parts, as demand for corporate bonds improves, Bloomberg News reported Wednesday.
The sale comes a week after Safeway Inc., Kroger's rival, sold $1.5 billion of bonds. Kroger's debt is rated “Baa3” by Moody'sInvestors Service and “BBB-” by Standard & Poor's.
Kroger last month filed with the Securities and Exchange Commission to sell as much as $2 billion of securities. The Cincinnati grocery chain will use the proceeds to pay debt and for regular business.
Ford expanding transmission plant
Biotech biz needs shot in arm
How Cincinnati stacks up on the biotech front
Cinergy: N.Y. lawsuit just a pay-up tactic
River Front Classic not just a game
Hotel occupancy nearly tripled in summer
Economists see local, national slowdown
Low inflation not fazing Fed
INDUSTRY NOTES: REAL ESTATE
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