Newspaper article THE JOURNAL RECORD

IBP Stock Falls on Prospects for Higher Hog Prices

Newspaper article THE JOURNAL RECORD

IBP Stock Falls on Prospects for Higher Hog Prices

Article excerpt

NEW YORK _ Stock in meat processor IBP Inc. dropped 13.6 percent Friday after a government report suggested IBP may have to pay higher prices for hogs.

The Quarterly Hogs and Pigs Report from the U.S. Department of Agriculture said the swine breeding herd in the current quarter was down 3 percent from a year ago and 6 percent smaller than the previous quarter.

Analysts said that may mean IBP and other meat processors who don't own their own hogs may have to pay more to buy pork. The higher price ultimately could hurt profits. Goldman Sachs Co. and NatWest Securities downgraded their investment ratings on Dakota City, Neb.-based IBP because of the news. IBP stock fell $4.75 to close at $30.25 a share on the New York Stock Exchange. Network Systems to Cut Staff by 10 Percent

MINNEAPOLIS _ Network Systems Corp. said Friday it will cut its workforce by about 10 percent as part of an $8 million cost-cutting plan.

The restructuring is a response to disappointing third-quarter results and an expected earnings and revenue shortfall in the fourth quarter, the company said. The Minneapolis-based computer networking company said the cost-cutting measures will reduce its current fourth-quarter results.

Despite the news, Storage Technology Corp. said Friday it still plans to merge with Network Systems. Storage Technology, a Louisville, Colo.-based maker of information storage and retrieval systems for computers, said it sees the cost-cutting actions as an "aggressive response to the issues of the marketplace." Freeport-McMoRan Sells Power Plants for $100 Million

CHARLOTTE, N.C. _ Freeport-McMoRan Copper Gold Inc. said Friday its Indonesian unit has sold power plants for $100 million to a venture that will sell the power to Freeport's mining operations.

The sale is the first of a three-part transaction to sell the P.T. Freeport Indonesia unit's existing and future power plants to an Indonesian venture, P.T. Puncakjaya Power.

Affiliates of Duke Power Co. of Charlotte, N.C. and Northstar Energy Corp. of Canada each own 30 percent of the venture, as does Freeport. An Indonesian investor owns the remaining 10 percent.

Freeport also will sell $115 million worth of existing and planned power plants by the end of next year. Freeport-McMoran, of Reno, Nev., said it will use the proceeds to reduce debt. Occidental Petroleum Buys Placid Oil

LOS ANGELES _ Occidental Petroleum Corp. said Friday it has completed its acquisition of Placid Oil Co. for about $250 million in preferred and common stock.

Reserves held by Dallas-based Placid include about 17 million barrels of oil and 270 billion cubic feet of natural gas. Daily production this year averaged about 6,000 barrels of oil and 100 million cubic feet of natural gas. Privately held Placid also has a 39 percent interest in a pipeline in the Dutch sector of the North Sea.

About half of Placid's reserves are in the Netherlands, with the other half in North America. Most of its North American holdings are in Louisiana and Texas, where Los Angeles-based Occidental already has significant oil and gas operations. Clark Hopes To Extend Deadline To Buy Refinery

NEW YORK _ Clark USA said Friday it hopes to extend the deadline for its proposed $134 million purchase of a Chevron Corp. oil refinery in Port Arthur, Texas. Clark's purchase of the 185,000-barrels-a-day refinery was scheduled to be completed by Friday.

Chevron agreed earlier this year to sell the plant and its inventory to the unit of Toronto-based refiner Horsham Corp. But the cancellation of Clark's plans to sell stock and bonds to the public earlier this month made it more difficult for Clark to fund the purchase. Clark said talks are still ongoing. Figgie Sells Three Insurance Businesses

WILLOUGHBY, Ohio _ Figgie International Inc. …

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