Business memo 12/24/01

Heartland Realty merges with Ashland Realty

Heartland in Jackson, Mo., is merging with Century 21 Ashland Realty.

"This will improve our services in the Jackson area," said Gerald W. McElrath, broker and owner of Heartland. "We hope to provide greater home and business selections and faster times in selling properties."

Century 21 Ashland will remain at the Heartland location in Jackson, 2142 E. Jackson Blvd.

Heartland has been in business at the location 17 years. Century 21 Ashland Realty has been in business in the Cape Girardeau County area 30 years.

Century 21 Ashland Realty Co., 2441 Myra Drive in Cape Girardeau, is owned by Herb and Thelma Annis.

Caterpillar Inc. to cut 900 jobs by June 30

Caterpillar Inc. said Friday it will eliminate more than 900 jobs by closing an overseas plant and offering early retirement to some domestic workers.

The heavy-equipment manufacturer plans to cut 520 jobs through the previously-announced closure of its Perkins Engines manufacturing plant in Shrewsbury, United Kingdom. The company plans to shift production from that plant to other engine-making facilities.

In the United States, Caterpillar plans to cut about 420 jobs by June 30 by offering early retirement in some of its divisions. Officials said layoffs are possible if enough employees do not choose early retirement.

Peoria, Ill.-based Caterpillar designs and makes mining, construction and agricultural machinery as well as engines for earth-moving and construction machines. It is the world's No. 1 maker of earth-moving machinery.

The company operates manufacturing plants throughout the world, including factories at Dyersburg, Tenn., and West Plains, Mo.

Low rates, mild weather help home starts

Home builders last month broke ground on the largest number of projects since July. Low mortgage rates and mild weather helped the housing market remain a bright spot in the gloomy economy.

The Commerce Department reported Tuesday that housing construction rose to a seasonally adjusted annual rate of 1.65 million housing units in November, an 8.2 percent increase over the prior month.

A number of new home permits -- nine -- were obtained in Cape Girardeau in November, to go along with three early this month.

The national 8.2 percent increase marked the biggest one-month gain since January and pushed housing starts to the highest level since July, when they grew to a rate of 1.66 million units.

Best Buy earnings up in third quarter

Best Buy Inc., the nation's leading consumer electronics retailer, said its earnings surged 40 percent in the third quarter while rival Circuit City Group returned to profitability after a loss a year ago, benefiting from a new marketing campaign and a finely tuned selection of consumer electronics.

Both companies' results, announced Tuesday, beat Wall Street expectations.

Best Buy is planning a business at Cape Girardeau. Construction is under way at 3025 William St. Circuit City operates a store here, at 164 Siemers.

-- From staff, wire reports