Company news
Published Oct 1 2001
Mesaba Holdings Inc., parent company of Mesaba Aviation
Inc., Minneapolis, which operates as Northwest Jet Airlink and
Northwest Airlink in the Northwest Airlines system, said its
cost-saving measures will result in a work-force reduction of
about 400 employees systemwide. The measures will be
equivalent to a payroll reduction of about 650 full-time
employees. Initial staff cuts began with a 30 percent reduction
in officer and director level positions. A 16 percent reduction
with the combined layoffs of salaried and administrative
personnel was completed Friday. Mesaba still is furloughing
employees.
Plato Learning Inc., Bloomington, said its board of directors
has approved a 4-for-3 split of the company's common stock
in the form of a dividend payable Oct. 26 to stockholders of
record Oct. 12. Plato shareholders will receive one-third of a
share for each share owned and will receive the value of any
such fractional shares in cash. Plato has about 12.5 million
common shares outstanding, including Treasury shares, which
will increase to about 16.3 million after the split.
CyberOptics Corp., Golden Valley, has implemented a
work-force reduction of about 10 percent of its worldwide
employment. The company also reduced its financial guidance
for the third quarter of 2001 ended Sept. 30. Revenue,
previously forecasted at about $8 million, is now anticipated at
about $6 million. Because of positive tax effects, the company's
quarterly net loss is expected to remain consistent with the
previous forecast of 22 to 28 cents per diluted share.
Medtox Scientific Inc., St. Paul, said its board of directors has
approved an increase in its authorized common shares from 7.4
million to 14.4 million .
Heller Financial Inc., a provider of commercial finance
products and services, has entered a strategic agreement with
Minneapolis-based Commercial Law Affiliates for its legal
service needs in the United States and Canada. Heller will
designate Commercial Law Affiliates' member firms as
preferred providers of local counsel services to supplement and
work in concert with Heller's primary partnering law firms.
The Shaw Group Inc., Baton Rouge, La., and NRG Energy
Inc., Minneapolis, have signed an agreement for construction
of two gas-fired power plants in the south-central United
States. Shaw has been given limited notice to proceed on the
plants, which together will total 1,520 megawatts of generating
capacity. Shaw will execute the engineering, procurement and
construction services for the projects.
Sheldahl Inc., Northfield, said it would temporarily lay off
employees from its International Flex Technologies division in
Longmont, Colo. The reduction reflects delays in expected new
business orders. The layoffs follow the company's
announcement to reduce the size of its Endicott, N.Y.,
operation.
Tower Automotive Inc., Minneapolis, is revising its estimates
of sales volume for the third and fourth quarters. Because of
production cuts, primarily at Ford, the company estimates sales
for the third and fourth quarters to be about $545 million and
$650 million, respectively. This is a decline of 6 percent from
previous guidance. The impact of the third-quarter sales
decline on earnings per share is expected to result in a
break-even performance.
Lifecore Biomedical Inc., Chaska, said Korean officials have
granted marketing approval for the company's Stage-1 dental
implant system.
The St. Paul Companies Inc. said its wholly owned
subsidiary, St. Paul Fire and Marine Insurance Co., has
completed the sale of Fidelity and Guaranty Life Insurance Co.,
a life, annuity and structured settlements company based in
Baltimore, to Old Mutual, a London-based international
financial services company. Old Mutual bought F&G Life for
Old Mutual stock valued at $300 million to $335 million in
cash.
Tower Automotive Inc., Minneapolis, said it has completed a
$126 million lease financing for Tower's new Dodge Ram frame
assembly line at its Milwaukee facility. The financing is
structured as a tax lease and is a fixed-rate-financing vehicle
for Tower Automotive for a base term of eight years. It will be
reported as an off-balance sheet obligation.
Stonebridge Capital Partners, St. Paul, said Nelson's, a
division of Thompson Financial that analyzes money-manager
performance, said its tax-exempt bond composite ranks second
out of 52 competitors over the three years ended June 30; its
large-cap growth-stock composite ranked seven out of 197
over the past year and its taxable bond composite ranked 20th
out of 248.
Allete, Duluth, said Laura Holquist has been named president
of its Allete Properties Inc. unit. Allete Properties, based in Fort
Myers, Fla., owns or controls companies that market land
throughout Florida. Holquist previously was senior vice
president and treasurer of Allete Properties and president of
Cape Coral Holdings and Lehigh Corp.
HomeServices.com Inc., Edina, has formed a partnership
with The Family Handyman magazine, a division of Reader's
Digest, to help customers find do-it-yourself home repair
information. The magazine will provide online
home-improvement content to all HomeServices.com
companies.
Printware Inc., Mendota Heights, has executed a definitive
purchase agreement to sell substantially all of its operating
assets to Printware Acquisition, an investment unit of
Renaissance Equity Partners. The transaction is valued at about
$2.8 million, subject to adjustment for certain closing items, and
includes inventory, accounts receivable, fixed assets and
intellectual property, but does not include Printware's cash,
investments and other non-operating assets. Consideration for
the transaction consists of $1 million in cash at closing, a
five-year $750,000 promissory note, the purchaser's assumption
of accounts payable of about $500,000 and a 10 percent
retained equity stake in the business by Printware.
The Toro Co., Bloomington, said its board of directors has
authorized the purchase of up to 1 million common shares. The
company has about 12.6 million common shares outstanding as
of Sept. 28. The stock will be used to meet the company's
various employee benefit plans.
Zebra Technologies Corp., Vernon Hills, Ill., said Zebra is
extending until 4 p.m. Oct. 12 its tender offer for all outstanding
shares of common stock in Fargo Electronics Inc., Eden
Prairie, including associated rights to buy preferred stock, for
$7.25 per share in cash.
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