European Stars and Stripes (Newspaper) - January 30, 1992, Darmstadt, Hesse                                Page 18 c the stars and stripes thursday january 30,1992money matters today a tip p Iii Mcdonnell Douglas corp., the nations largest defense contractor on tuesday reported fourth Quarter income of $2ll million and record full year earnings. The company a fourth Quarter net income equivalent to $5.50 per share Rose from a loss of $1 million or 1 cent per share for the same period a year ago. The quarters revenues were $4.78 billion up from $4.04 billion. For the year net earnings Rose 38 percent to $423 million or $11.03 or share on revenues of $18.45 bilion. Mcdonnell Douglas earnings in 1990 were $306 million or $7.99 per share on revenues of $15.91 billion. The results reflected aggressive Cost cutting that included reducing its work Force by 10 percent during 1991 to about 109,000. The cuts came amid sharply lower defense spending and the loss of a major military contract on the a-12 attack bomber when the project was  rates London up wednesdays rates for the . Dollar to other currencies. Figures Are expressed in dollars to the British Pound other local currencies in dollars Gold was quoted at $355.40 an ounce Sliver at $4.14. Jan. 28 Jan. 29 British pound.1.7945 1.8045 German mark.1.5950 1.5875 French tranc.5.4815 5.4123 dutch guilder.1.7995 1.7880 belgian franc.33.06 32.73 italian lira.1,209.05 1.194.25 Swiss franc.1.4255 1.4160 greek drachma .186.00 183.65 turkish lira.5,473.70 5.441.20 saudi arabian riyal.3.7501 3.7502 Spanish peseta.101.30 100.15 portuguese escudo.138.62 136.86 Canadian dollar.1.1709 1.1729 austrian schilling.11.3425 11.17300 norwegian krone.6.3140 6.2300 danish krone.6.2400 6.1560 these Are commercial rates and can be related Only to the use of foreign currency by . Forces for official business. The Only official rate concerns the Sale of German Marks to . Personnel for personal use and this will be 1.55 through thursday based on wednesdays noontime  York Exchange new York up change a the 15 most Active stocks in new York Stock Exchange composite trading on tuesday. Stock sales lest net chg. Uniss corp 4,823,000 7v. Up % Citicorp 4,470,400 15% up Compaq computer at amp to company 3,243,600 32% off 2% 2.b99.600 37% off % Texaco inc 2,753,900 62% up 1% chemical Bank 1.969,200 28% up % Chrysler corp 1,887,500 15% up % Procter amp Gambl 1,814,400 102% up 5% storage techno 1,737,500 66% up 10 Glaxo holdings 1,736,500 30% unch Rwjr Nabisco hid 1,732,600 10% unch Ford motor co 1,710,600 32% up % off Hanson pc 1,684,700 18% Walt Disney co 1,659,800 141% up 9 global Manne 1,628,700 2 unch american Exchange new York up american Stock then Slock Conti air Hodgs Enzo Bochem am medical bldg Echo Bay mines Bat industries Henley Inu inc Alzi corp Ivan corp Wang labs inc b Ich corp a the 10 most Active stocks in Lange composite trading tuesday. Sale lilt net chg. 2,309,300 1% of 727,700 5% off % 692,600 11% up 618,400 8% up 476,900 11% up % 456,700 19 off 1% 441,400 48% off 1% 410,900 38 unch 355,400 3% off % 350,500 5% off Dow Jones new York up Dow Jones dosing rang of averages tuesday High Low Dost Dingo 30 industrials 3298 30 3230 99 3272.14 up 31.53 20 transport 1374 81 1343 80 1356.32 unch 15 utilities 215.01 212 32 213.51 up 0.06 65 stocks 1179.49 115594 1168.41 up6.56 experts say Economy teetered on Brink of new downturn Washington a the Economy dipped dangerously toward a renewed downturn As 1991 ended after appearing to emerge from the first recession in a decade economists said. But most analysts believe that although the Economy slowed appreciably in the fourth Quarter it did continue growing weakly. A on a quarterly basis the Economy Hung in there but no better than that a said economist Robert g. Dederick of the Northern Trust co. In Chicago. A real Gross Domestic product should show virtually no change in the fourth Quarter a concurred Michael k. Evans of Evans economics inc., in Washington. A your latest tracking Model estimate shows a minuscule gain of 0.2  but if economists Are wrong and the Economy stumbled again during the october december period the recession that started in july 1990 would be the longest since the great depression in the 1930s. The Commerce department was scheduled to release its report on the fourth Quarter Gross Domestic product wednesday which would provide the latest indication of the country a economic health. The Gap is the nations total Domestic output of goods and services. The generally accepted definition of a recession is at least two consecutive quarters of negative economic growth. The Gap declined 3.9 percent in the octo Ber december Quarter a year ago and an additional 2.5 percent from january through March. Then it rebounded modestly up 1.4 percent from april through june and an additional 1.8 percent from july through september. But the Economy then slowed appreciably As the euphoria of the persian Gulf Victory waned and unemployment continued to grow. Lower interest rates fail to bolster Consumers spirits new York a americans turned More pessimistic about their financial and Job Security this month despite lower interest rates aimed at helping the weak Economy a Survey said tuesday. The conference boards consumer Confidence Index which had levelled off in december after Sharp declines the previous two months fell again in january largely on anxiety Over future employment and business conditions. The Index is at its lowest Levels since the 1981-82 recession. The report was considered significant by economists because it showed americans Arentt responding to some of the most affordable borrowing costs in nearly two decades. That Means they Arentt taking out Loans for new Homes cars and appliances in sufficient numbers to stimulate the Economy out of recession. On the contrary economists said the Survey shows Many Consumers Are holding Back saving their Money in Case they need it for essentials. A i think individuals Are focusing More on the further deterioration of the Job Market and their own families financial situation a said Gary Cimi Nero chief economist at investment firm Fleet no Star financial group in Providence . A Job prospects Job concerns continue to mount. That a what a driving things. It should be patently obvious that interest rate cuts Haven to  the Index is based on responses to questions sent to 5,000 hous nolds nationwide on subjects ranging from Home buying plans to Job availability. The conference Board said the january consumer Confidence Index showed a Reading of 50.4, a loss of 2.1 Points from december. The Index is calculated on a 1985 base of 100. It has Slid dramatically from its 81.1 level of last March when consumer Confidence reflected euphoria following the persian Gulf War. And even if wednesdays report shows some growth the fourth Quarter Gap is subject to revisions in february and again in March As More information becomes available. Before the latest downturn there had been eight recessions since world War ii averaging 11 months during which growth typically declined 2.6 percent. The two worst recessions were among the most recent three a 16-month recession that ended in March 1975 with a 4.3 percent growth shrinkage and a 16-month decline through november 1982 that involved a 3.4 percent decline in the Economy. According to economist Sung won  Norwest corp., an investment firm in Minneapolis there have been four double dip recessions since world War ii in which the Economy turned Down again after a Brief period of growth. The second dips occurred in 1960,1970,1974 and 1982. Japanese debate Way of doing business Tokyo apr As Japan bashing swells overseas some japanese business officials Are saying its time for their country to change the fundamental Way it competes by following the ways of the West More closely. Akio Morita chairman of Sony corp., is among executives sparking the new debate by saying japanese companies must pay their workers More raise profit margins and adopt the same rules of Competition followed in Europe and the United states. A Japan is in desperate need of a new philosophy of management a new paradigm for competitiveness a Morita said in a recent speech. In parliament on tuesday Koshiro Ichida head of the clean government party said he worries that unless Japan finds a Way of fitting in with the rest of the world Trade tension will Worsen. Morita head of one of Japan a most successful exporting companies often has urged american businesses to focus More on the longer term and on producing goods rather than profiting from financial transactions. But he said he now believes that the a crucial Burden of change lies with Japan. Japan a must reinvent itself to blend with the prevailing attitudes and practices of International business or face exclusion from overseas markets Morita argued. Japanese companies frequently Price Japan is in desperate need of a new philosophy of management a new paradigm for  Sony chairman Akio Morita new products As cheaply As possible to create a Market or gain Market share even if it Means a delay in recovering development costs. In an example of Morita a new approach a tiny Sony digital tape recorder introduced two weeks ago will sell for a hefty $800, a Price that reflects the full costs of development Sony officials said. Part of the problem Morita said is that japanese firms aggressively Cut prices and plow a larger share of their profits Back into research and development because the japanese Market is so competitive. Japanese companies have exported those priorities overseas along with their products he said. In contrast Western companies Are pressured to share a larger portion of their income with employees and share holders Morita said. Japan a companies can a compete viciously on Price because they pay their employees less for longer hours operate on Slimmer profit margins and pay smaller dividends he said. The new management style Morita said should improve the Quality of life in Japan by increasing wages vacation and environmental Protection. But not everyone agrees with his approach. Takeshi Nagano chairman of the Japan federation of employers associations attacked the executives comments at a monday news conference marking the Start of Japan a annual wage negotiations with labor unions. Nagano said japanese wages Are among the highest in the world because of the nations phenomenal growth rate which could not have been sustained had a larger share of corporate income gone to employees. Other forces besides Trade friction Are forcing companies to think More about the Quality of their workers lives. Toyota is making extensive changes in its production system to attract younger workers who increasingly Are rejecting unpleasant jobs. It also plans to reduce working time from about 2,200 or 2,300 hours a year to 2,000. A society is changing a said Tadaaki a Gawa a Toyota director. A we have to begin thinking about what an abundant life really