Executive Business Briefing

Here is a look at more of Tuesday's top business stories:

July steel imports rise

WASHINGTON, Aug. 27 (UPI) -- The Commerce Department on Tuesday said U.S. imports of steel products rose 5.7 percent in July to 2.691 million metric tons from 2.546 million metric tons in June.

In dollar value, July steel imports rose 9.3 percent to $1.04 billion from $955.09 million in June.

The report compares preliminary July data with revised June data. It is not adjusted for seasonal variations.

Commerce said the rise in the volume of steel imports for the month primarily reflected increases in blooms, billets and slabs, reinforcing bars, and hot-rolled sheets. There was a decline in imports of wire rods.

The government agency also said the monthly changes in steel imports primarily reflected increases from Russia and Germany, and decreases from Turkey and Japan.

Year-to-date final statistics through June, the most recent figures available, showed steel imports of 13.53 million metric tons, an increase from 13.05 million metric tons recorded in June of last year.

Toro reports higher earnings

BLOOMINGTON, Minn., Aug. 27 (UPI) -- Toro Co., a maker of lawn maintenance equipment, said its third-quarter net income for the period ended Aug. 2 rose to $21.9 million, or $1.68 a share, from $16.9 million, or $1.30 a share during the same period last year.

Sales rose to $375.6 million from $329.8 million a year ago.

After adjusting for new accounting rules related to goodwill, Toro said net earnings for 2001's third quarter would have been $19.2 million, or $1.47 a diluted share.

The results were in line with the company's August forecast that it would earn $1.66 to $1.68 a share in its fiscal third quarter.

Ken Melrose, chairman and chief executive officer, said, "The quarter's results were most gratifying from the standpoint of growth in both revenues and earnings.

"The sales growth of 14 percent was driven primarily by newly introduced products, coupled with lower costs resulting from our 5 by Five initiatives, significantly outpacing our third quarter last year," he said.

"Moreover, it was rewarding to see sales pick up so strongly after a sluggish first half due to unfavorable weather and high beginning inventories which are becoming in line. Sales in all areas are benefiting from our focus on introducing new products that deliver meaningful innovations in their categories. In addition, we have been able to sustain our double-digit earnings per share growth of 14.3 percent in the quarter in the face of increased profit pressure," he said.

Toro said as a result of its strong third-quarter performance, it expects diluted earnings per share for the full year to reach $4.85 to $4.90 before unusual items.

Cole National posts higher results

CLEVELAND, Aug. 27 (UPI) -- Eyewear and gift retailer Cole National Corp. reported its second-quarter net income rose before items rose to $2.7 million, or 16 cents a share, from $1.5 million, or 9 cents a share during the same period last year.

The retailer, which offers optical services at Pearle Vision stores and gifts at Things Remembered stores, said its sales rose to $288.9 million from $273.3 million a year ago.

Larry Pollock, president and chief operating officer, said, "Despite the difficult retail environment and a slowdown in our business in July, Cole National's optical business turned in a solid performance in the second quarter, with comparable store sales increasing in all of our vision brands."

At Pearle Vision, comparable store sales increased 1.5 percent for company-owned stores and 0.6 percent for franchise stores.

"Our new merchandise assortment has been well received by our franchisees, whose purchases from Pearle continued to increase significantly in the second quarter as compared to last year. This trend, which began earlier this year, is leading to improved consistency in our brand positioning," Pollock said.

"We are also pleased that our franchisees provided excellent support for our national promotions. On a consolidated basis, Pearle Vision's comparable store sales increased 1.0 percent," he said.

Within Cole licensed brands, comparable store sales rose 3.9 percent for Sears Optical, 41.1 percent for Target Optical and 1.2 percent for BJ's Optical.

Jeffrey Cole, chairman and chief executive officer, said, "Cole National's solid performance in May and June contributed to the quarter's results, as did good cost control and gross margin management. Although our vision business slowed in July, each of our retail optical brands had positive comparable store sales for the quarter. In addition, statistics for the overall optical industry indicate that Cole Vision's growth continued to outpace that of the industry."

Looking ahead Cole said, "We previously announced a goal of increasing earnings per share in 2002 by 15 percent to 20 percent before the extraordinary item, after adjusting 2001's results for SFAS 142 and applying fiscal 2002's estimated 40 percent tax rate.

"We continue to believe this goal is achievable, although given the uncertain business environment, and subject to costs associated with pending litigation in California, we will likely be at the lower end of the range," Cole added.

Earnings decline slightly at Casey's

ANKENY, Iowa, Aug. 27 (UPI) -- Casey's General Stores Inc., which operates or franchises convenience stores in small towns across the Midwest, said its first-quarter net income for the period ended July 31 slipped to $12.2 million, or 25 cents a share, from $12.7 million, or 26 cents a share during the same period last year.

Revenue fell to $551.2 million from $574.7 million a year ago.

An important part of Casey's business is selling gasoline, and two of the company's annual goals are for that segment: improve gasoline gross profit by balancing growth in gallons sold and average margin per gallon and have pay at the pump at virtually all stores.

In the first quarter the company said it sold 237.9 million gallons, down 0.4 percent from the 238.9 million gallons sold in the same quarter last year.

The average margin per gallon improved to 9.9 cents from 9.5 cents, and gasoline gross profit was up to $23.5 million from $22.6 million.

Quiksilver lifts earnings outlook

HUNTINGTON BEACH, Calif., Aug. 27 (UPI) -- Surf apparel maker Quiksilver Inc. said its third-quarter earnings will beat Wall Street's expectations, boosted by its diversified product lines and cost controls.

The company said it expects earnings of 32 cents to 33 cents a share, compared with 33 cents a share a year ago.

Analysts on Wall Street are expecting the retailer to report a net income of 29 cents a share, according to Thomson First Call.

Quiksilver said revenue would range between $170 million and $173 million, compared with the First Call range of $163 million to $167.8 million.

The company said it was on track to earn at least $1.42 a share for the year, up from $1.17 in the previous year, with revenue rising to a range of $685 million to $690 million from the previous year's $615.5 million.

Robert B. McKnight, Jr., chairman and chief executive officer, said, "We are very pleased with the tone and pace of our business. Strong product, broad diversification, and careful financial controls are enabling us to perform well in a difficult retail environment here in the United States.

"We have also maintained excellent momentum in our overseas markets, both company-owned and licensed territories, and continue to demonstrate our position as the global leader in the action sports lifestyle market. We believe our current business trend will continue throughout the fall season," McKnight said.

The company will report its third-quarter results on Sept. 12.