Business memo 03/11/02

Johnson Insurance Group named Advantage Agent

The Farmers Alliance Cos. in McPherson, Kan., have announced that Johnson Insurance Group, Inc., in Cape Girardeau has been named Advantage Agent for 2002. To qualify as an Advantage Agent, an agency must exhibit superior professionalism and profitability over five consecutive years.

The Farmers Alliance Cos. are represented by independent agents, and serve 10 Midwestern states.

Missouri jury finds child seat manufacturer liable

A Missouri family last week was awarded a $10.5 million verdict for injuries their little boy suffered in an accident involving a drunk driver. The family says the child's car seat should have protected him better. A St. Louis City jury last Friday found the manufacturer of the car seat was responsible for a faulty design which, in part, led to the severe injuries.

The verdict is believed to be the first against a car seat manufacturer in 15 years; the practice in the industry is to settle cases before trial. The family rejected a $1.95 million offer to settle, and the case was tried over nine days.

Two-year-old Benjamin Uxa of St. Louis was in a Cosco high-back booster seat, model 02-441-IUB, on Sept. 27, 1999, when his mother's car was broadsided by a drunk driver. The boy's head struck the inside of the door, which caused traumatic brain injury.

The Uxa family sued Cosco, now known as Dorel Inc., claiming that the car seat was defective in that it failed to provide any protection from side impact. The St. Louis family bought the $40 seat at a local Target store.

The jury's award is the largest verdict this year in the state, according to Missouri Lawyers Weekly, which tracks large verdicts and settlements.

Warm weather spawns heavy February spending

Consumers inspired by unseasonably warm weather and new fashion trends went on a small clothes buying spree in February, raising hopes that they'll keep spending in the months ahead and accelerate the economic recovery.

However, as the nation's largest merchants reported their February sales Thursday, it was clear the overall retail business, which has shown tentative signs of recovery in recent months, remains fragmented. Discounters, particularly Wal-Mart Stores Inc., achieved impressive gains, while department stores and apparel chains still struggled, although their business appears to be improving.

Gap Inc. was again a notable disappointment, hurt by weak sales at its Gap and international divisions.

Unemployment claims dip, continue to slide

New claims for unemployment insurance dipped slightly last week, continuing an overall slide this year that indicates companies are easing layoffs as signs of economic recovery bloom.

The Labor Department reported Thursday that initial claims for jobless benefits for the work week ending March 2 fell by a seasonally adjusted 5,000 to 376,000.

The more stable four-week moving average of claims, which smoothes out week-to-week volatility, sank last week to 372,750. That was the lowest level since Aug. 11, when claims stood at 372,000.

SBC announces more job cuts in coming months

SBC Communications Inc. said Thursday it has cut 7,500 positions since October and more jobs will be eliminated in coming months.

The San Antonio-based phone company, the parent company of Southwestern Bell, meeting with industry analysts in New York, also said it would broaden its menu of long-distance data services and compete more vigorously for customers of high-speed Internet access.

The company repeated earlier forecasts that earnings per share this year would rise 5 to 7 percent, and that 2002 sales would rise 1 to 3 percent.

The job cuts are part of an overall plan to trim operating costs by $1.5 billion a year within the next four years, SBC said.

-- From staff, wire reports