STRICTLY BUSINESS: SPARTECH CORP. EXPANDS, WILL ADD PAWNEE INDUSTRIES

Spartech Corp., which reported record sales and earnings for the first nine months of fiscal 1994, is expanding.

The St. Louis-based company, which has two large operations in Cape Girardeau -- Spartech Plastics, 2500 Spartech Drive, and Spartech Compounding on Nash Road -- announced this week that it has signed a letter of intent to acquire assets of Pawnee Industries Inc.'s extrusion and color divisions.

"We are enthusiastic about the prospect of adding Pawnee's extrusion and color divisions to the Spartech family of companies," said Bradley B. Buechler, president and chief executive officer of Spartech.

The acquisition will give Spartech more than the additional capacity the company was looking for when it recently announced its intent to open a new midwestern Spartech Plastics facility by early 1995.

Pawnee, a manufacturer of rigid-plastic-sheet and color concentrates headquartered in Wichita, Kan., has two sheet plants in Wichita and Pawnee, Ohio, and a color concentrate house at Goddard, Kan.

"The addition of Pawnee will be of strategic importance in strengthening our current eight-plant rigid-sheet and rollstock segment," said Buechler. "It also enhances the capabilities within our Spartech compounding group."

Buechler announced in June that strong growth in the plastics units was a prime factor in the company's decision to expand production capacity. A search was initiated at that time for a new rigid-sheet and rollstock facility in the Midwest.

David B. Mueller, Spartech's vice president of finance and chief financial officer, announced a timetable for the Pawnee purchase. Plans call for a definitive asset purchase agreement within the next two weeks, with closing of the transaction, subject to Federal Trade Commission approval, by Oct. 28. Terms of the acquisition will be disclosed when the transaction is completed.

Spartech will add manufacturing equipment and capital into the Pawnee facilities over the next 12 to 18 months.

When plans are completed, Spartech Plastics will have more than 50 extrusion lines and an annual production capacity of about 400 million pounds. Spartech currently has an annual production capacity of 275 million pounds.

Spartech's rigid-sheet division operates eight plants nationwide -- including the facility at Cape Girardeau -- under the name of Spartech Plastics. It is the largest custom extruder producer of rigid plastic in the U.S. The local facility has nine extrusion lines and employs about 150 people.

Rigid plastic sheets are used in vehicle interiors, spas, showers, signs, packaging products and boats.

Two facilities -- Spartech Compounding of Cape Girardeau and Spartech-Franklin Plastics of Kearny, N.J. -- make up the Spartech Compounding Division.

The two merchant compounding facilities combine for an annual production capacity of 100 million pounds of PVC and engineered thermoplastic compounds, said Buechler. The local plant has a production capacity of about 250,000 pounds of PVC and thermoplastic compounds and employs 100 people.

Spartech has expanded rapidly over the past decade. In 1985 shares in the company sold for as little as 50 cents a share. The stock has been up and down, and was trading at just over $5 last week.

Third-quarter net earnings were $3.1 million, up 70 percent from the $1.8 million of the same quarter a year ago. Sales were $69.8 million during the quarter, up 39 percent from the $50.2 million a year ago.

Net earnings for the first nine months of fiscal 1994 were $8 million, or 70 cents primary and 34 cents fully diluted earnings per share. That compares with $4.8 million net earnings for the first nine months of 1993, or 39 cents primary and 22 cents fully diluted earnings per share. Sales for the first nine months were $183.3 million, compared to $135 million for the same period in 1993.

Fourth-quarter hiring projections for Southeast Missouri are lower than the previous two quarters, but better than the fourth quarter of 1993, says an employment outlook survey.

The local branch of Manpower Inc., a temporary-help firm headquartered in Milwaukee, says its quarterly telephone survey of area businesses showed 26 percent plan to hire more workers during the October-December period. Twenty-one percent say work-force cutbacks are planned and 55 percent expect no change. These totals are up from the final quarter of a year ago when only 20 percent predicted increased hiring.

Employers anticipate holiday staffing needs, said Barbara Larkins of Manpower Inc. here. She said, however, that fall job prospects appear best in durable goods manufacturing and education. Retail merchants report mixed intentions, and some cutbacks are expected in construction.

Nationally, a better-than-average fourth quarter is expected.

Manpower, which conducts interviews with more than 15,000 public and private employers in 468 U.S. cities, says its latest report indicated that 26 percent plan to hire more workers, with 10 percent planning job cuts and 61 percent no changes. Three percent are uncertain.

Nationally, 36 percent of wholesale and retail companies cited intentions of adding to fourth-quarter employment.

Cape Girardeans have a chance to invest in their city with the issue of municipal bonds for capital improvements.

The bonds offer tax-free investment yields of 5.55-to-5.8 percent, depending on maturity dates, which range from 2004 to 2007.

George K. Baum company of Kansas City is broker for the bonds, which have been made available at Edward D. Jones and Co. offices in Cape Girardeau.

Proceeds from the bonds will be used for improvements to Cape Girardeau's waterworks and sewage systems and for expenses associated with the closing of a waste-disposal site in the city.

The bonds are rated AAA by Moody's and Standard and Poor's. This is the highest rating assigned by both rating agencies.

Who's hiring?

A Bureau of Labor Statistics and College Placement Council survey says the number of jobs in computer science-systems analysis is projected to increase by 79 percent over the next decade.

College students who major in computer science have the best chance at earning top dollars -- about $34,0000 a year upon graduation.

Money Magazine in its annual "Money Guide" lists the top five careers for college graduates, with current starting salaries and projected increases in positions by 2005:

(1) Computer scientists-systems analysis, 79 percent increase in jobs, starting salary, $33,957.

(2) Physical therapist, 76 percent increase, $31,432.

(3) Psychologist, 64 percent increase, $20,270.

(4) Marketing, advertising and public relations manager, 47 percent, $25,193.

(5) Preschool teacher, 41 percent, $17,393.

Rounding out the top 10 list are: securities and financial services sales representative, 40 percent, $25,193; lawyer, 35 percent, $25,350; accountant-auditor, 34 percent, $28,581; social workers, 34 percent, $22,871; and engineer, mathematician or technical research manager, 34 percent, $32,494.

Bureau of Labor statistics estimates that job openings will grow by 26.4 million, or 22 percent, over the next decade.

A Sonic Drive-In opened at 2126 Broadway last week.

Steve Brown is manager of the restaurant, which features curbside services.

The restaurant is the ninth opened by D&G Properties of West Plains. Included on the list is a Sonic Drive-In at 530 S. Hope in Jackson.

Hours for the Cape Girardeau restaurant are 10 a.m. to 11 p.m. Sunday through Thursday and 10 a.m. to midnight Friday and Saturday.

Ervin's Clean Up and Repair, 1604 Madison, has added wood floor-cleaning, finishing and installation to its list of chores.

Ervin D. Smith, owner of the company that was founded in January, recently completed the National Wood Flooring Association's training school at St. Louis.

Ervin's offers carpet cleaning, janitorial services and various repair jobs.

Pagliai's Pizza and Pasta, 1129 Broadway, has added a new yogurt dessert to its product line. Mark Watson of Pagliai's announced that an agreement had been reached with Steve DeWitt, owner of TCBY, 1907 Broadway, to serve TCBY yogurt at Pagliai's.