Business digest 03/15/05

Aquila looking to sell utilities in five states

KANSAS CITY, Mo. -- Electric and natural gas utility Aquila Inc. said Monday it may sell some of its utilities in five states in an effort to reduce its debt. The Kansas City-based company said it was considering the sale of natural gas operations in Missouri, Michigan and Minnesota; electric operations in Colorado and Kansas; and St. Joseph Power & Light in St. Joseph, Mo. The company estimated those assets to be worth $875 million and serving more than 632,000 customers. Aquila also said it plans to sell three seasonal power plants and Everest Connections, which provides digital cable, telephone and high-speed Internet services in the Kansas City area. Those sales would leave the company with electric operations in Missouri and natural gas operations in Iowa, Nebraska, Kansas and Colorado, serving nearly 730,000 customers.

Saudis ask OPEC to increase output

ISFAHAN, Iran -- Saudi Arabia's advocacy of a 2 percent increase to OPEC's output target failed to calm oil markets Monday, though it appeared to reflect growing concern within the cartel about the effect high prices could have on the global economy. Even if the Organization of Petroleum Exporting Countries raised its daily production ceiling by 500,000 barrels, the impact on actual supplies would be muted because member nations -- eager to maximize profits with crude futures trading near $55 a barrel -- are already overshooting the existing quota by about 700,000 barrels. Analysts said the proposal was not merely symbolic, however, and it signaled Saudi willingness to supply the market with additional barrels, if necessary, to help bring down prices.

OfficeMax earnings drop 90 percent

CHICAGO -- OfficeMax Inc. reported a 90 percent drop in fourth-quarter earnings to $700,000 Monday, but its chairman dismissed the need to consider splitting up the beleaguered office products retailer, as a shareholder group has proposed. George Harad, who also became interim CEO last month, said this would be "a particularly inopportune time" for the company to change direction since other strategic steps already are being taken. Those actions, he said, include reshaping top management, integrating contract and retail operations, being more selective with promotions, reducing debt and committing $775 million to $815 million toward a planned share repurchase.