Business memo 07/15/02

Missouri's PMI climbs for seventh month

Missouri's Purchasing Managers' Index (PMI) climbed for the seventh consecutive month in June, rising to 64.6, up one point from last month. This is the highest Missouri's score has been since April 2000.

Missouri's PMI score has been above the critical 50 mark for five straight months, which is considered to be one sign of an expanding economy. A score below 50 forecasts a sluggish economy for the next three to six months.

Economists consider the index, which measures such factors as new orders, production, supplier delivery times, backlogs, inventories, prices, employment, import orders and exports, a key economic indicator.

Missouri's strong June score was due to high readings in production (74.5), new orders (73.1), inventories (57.7) and employment (50.9).

Bristol-Myers under SEC investigation

NEW YORK -- The Securities and Exchange Commission is investigating Bristol-Myers Squibb Co. to see whether the drug giant improperly inflated its revenues last year by up to $1 billion through sales incentives to wholesalers, a company official said last week. Its shares fell 4.5 percent.

Bristol-Myers spokesman Bonnie Jacobs said the company is cooperating with the investigation first reported in the Financial Times.

The probe has been going on since April, when Bristol-Myers announced the inventory glut caused by incentives would slash this years earnings up to 50 percent. Bristol-Myers said the SEC hasn't told it that it acted improperly in addressing the inventory situation. The SEC didn't return calls for comment.

Dow Jones reports 25 percent earnings jump

NEW YORK -- Dow Jones & Co., owner of The Wall Street Journal and other financial publications, reported a 25 percent jump in second-quarter earnings Thursday due to an asset sale.

But without the one-time gain, results continued to slump because of a dismal advertising climate, and the company warned that its results in the third quarter would be well below Wall Street's current forecasts.

Dow Jones reported net income of $54 million in the three-month period ending June 30, compared with $43.2 million in the same period a year ago. Per-share results were 64 cents versus 50 cents a share.

Wal-Mart has strong summer sales figures

BENTONVILLE, Ark. -- Wal-Mart Stores Inc. nudged its earnings forecast higher, citing strong summer sales.

The world's largest retailer said last week it expects to earn between 44 cents a share and 45 cents a share for the period ending July 31. That is up from its earlier forecast of earnings per share of 43 cents and 44 cents.

Wal-Mart said it expects its per-share earnings for the fiscal year ending Jan. 31 will be between $1.76 and $1.78, up from its earlier forecast of $1.74 to $1.76 per share.

Analysts surveyed by Thomson Financial/First Call had been looking for Wal-Mart to earn 44 cents a share for the quarter and $1.78 a share for the year.

-- From staff, wire reports