Here is a look at more of Tuesday's top business stories:
Engelhard posts lower results
ISELIN, N.J., Feb. 4 (UPI) -- Engelhard Corp., a metals and chemicals firm, said its fourth-quarter net income fell on lower sales volumes and lower prices for its precious metals.
It said net income fell to $56.1 million, or 44 cents per share, from $60.5 million, or 46 cents per share a year earlier.
Analysts on Wall Street had expected the company to post a net income of 44 cents per share, according to Thomson First Call.
Revenue rose to $911 million from $871 million a year earlier.
Barry W. Perry, chairman and chief executive officer, said: "We are pleased that our strategy began to generate results in new applications that expanded our served market base and delivered sustainable productivity improvements across the enterprise.
"We are disappointed that much of those advances were neutralized by the prolonged economic weakness in most of our served markets throughout 2002. In spite of that, we achieved results within the range of estimates established by analysts at the beginning of the year, and we were able to fund ongoing growth programs while strengthening our balance sheet."
The company said operating earnings at its Environmental Technologies unit declined 23 percent to $21 million. Sales rose 23 percent to $187 million on increased revenue from automotive and both original equipment manufacturing and retrofit diesel markets.
One-third of the increase in sales resulted from the higher pass-through cost of substrates. Strong results from solidly increased sales and earnings from mobile environmental market applications were more than offset by the costs associated with additional rework for power-generation applications and weak demand in stationary and surface coating markets.
Operating earnings at its Process Technologies rose 3 percent to $32 million and sales rose 5 percent to $161 million as increased demand for new technologies for the polyolefin, gas-to-liquid and refining-additive markets was partly offset by ongoing weakness in other core chemical-process markets.
Charming Shoppes issues earnings warning
BENSALEM, Pa., Feb. 4 (UPI) -- Charming Shoppes Inc., a retailer of plus-sized women's clothing, said it expects to post fiscal 2004 earnings in the range of 33 cents to 35 cents per share.
The outlook is below most analysts' expectations.
The retailer said it expects to post net income of $39 million to $42 million for the fiscal year ending Jan. 31, 2004, with total sales of about $2.4 billion.
Analysts on Wall Street were expecting 2004 earnings of 42 cents per share, according to Thomson First Call.
The operator of the Lane Bryant and Fashion Bug chains said it expects 2004 same-store sales to show a percentage increase in the low single digits, with same-store sales in the first half of the year flat to down in the single digits.
The retailer said its real estate strategy will be focused on supporting growth in the plus-size businesses. Plans include the opening of 50 to 55 new stores in fiscal year 2004. The majority of store openings will be strip center formats.
Charming Shoppes operates 2,248 stores in 48 states.
Perry Ellis buys Salant Corp.
MIAMI, Feb. 4 (UPI) -- Perry Ellis International Inc. said it has entered into a definitive agreement to acquire Salant Corp., a designer, marketer and distributor of menswear, in a cash and stock deal valued at $91 million.
Salant shareholders will receive approximately $9.37 per share in cash plus newly issued Perry Ellis common stock.
The board of directors of both Perry Ellis and Salant have unanimously approved the agreement.
Salant licenses the categories of Perry Ellis men's sportswear, dress shirts, dress bottoms and accessories and derived about $170 million, or 70 percent, of its estimated 2002 revenues from the sale of Perry Ellis products. Salant is the largest licensee of Perry Ellis branded apparel.
George Feldenkreis, Perry Ellis chairman and chief executive officer, said: "I am very pleased to announce that with this acquisition we will have successfully consolidated control over the Perry Ellis brand.
"This transaction and its precursor, our April 1999 acquisition of the Perry Ellis trademarks, have immensely strengthened our company and provided us with many opportunities for growth and diversification. Not only do we believe that this transaction will be highly beneficial for our shareholders from a financial perspective, but it should also take our company to the next level with respect to infrastructure and capacity for future growth.
"We are particularly excited with the depth and quality of the management at Salant and are looking forward to the value they will bring to our organization."
The deal requires approval by the stockholders of both Salant and Perry Ellis International, and is subject to SEC approval and certain other customary closing conditions.
The transaction is expected to close before the end of Perry Ellis' second quarter.
Americans eating more imported shrimp
WASHINGTON, Feb. 4 (UPI) -- A new study commissioned by the American Seafood Distributors Association showed the business of importing shrimp in the United States has become a significant economic engine for the economy, generating total economic activity of more than $9.8 billion and related employment of 100,000 jobs.
ASDA represents seafood importers, distributors, wholesalers, and trade associations. Its members import, process, market, and distribute 80 percent of the nation's seafood supply.
The study by former Gulf & South Atlantic Fisheries Development Foundation director, Thomas J. Murray, principal of Thomas J. Murray Associates, showed total U.S. consumption of shrimp in 2001 was 1.4 billion pounds.
Because of resource constraints on the domestic industry, domestic shrimpers supplied just 12 percent of the shrimp consumed in the United States, the study showed.
Last year, shrimp became the top-selling seafood in the United States, said ASDA President Wally Stevens, with shrimp surpassing tuna -- which had occupied the number one spot for years.
In 2001, annual shrimp consumption was 3.4 pounds per capita, compared with 2.9 pounds per capita for tuna.
To meet the growing consumer demand for shrimp, U.S. companies imported $3.6 billion worth of shrimp-fresh, frozen, and prepared-in 2001 alone, the study showed.
A White Paper issued by ASDA, based on the Murray study, shows that demand for shrimp is directly related to its affordability by the average consumer.
Because domestic shrimp supplies are not nearly adequate to satisfy growing demand, the U.S. market has come to rely on imported shrimp from various countries, the report showed.
Most of these countries raise shrimp through aquaculture, which has undergone a technological revolution in the past several years, resulting in "enormous competitive advantages, such as lower production costs, the ability to make on-time deliveries, and control of future availability," Murray said.
U.S. shrimp aquaculture production supplies less than 2 percent of the total U.S. demand.
"There is a huge consumer demand for shrimp that domestic sources cannot adequately meet on their own," said Stevens.
"Every local and national supermarket chain sells several varieties of shrimp at its seafood counter, food retailers advertise shrimp to help draw customers into their stores, and large restaurant chains frequently feature and promote shrimp."
