Skyrocketing raw-material prices spur worries of economic woes

NEW YORK (AP) -- With prices for energy and industrial raw materials rising in March at their fastest rate in five years, manufacturing executives are worrying that the added expenses may dampen business, a private report said Monday.Despite the higher prices, the industrial economy continued to grow in March, at a slightly lower rate than in February, according to the widely watched report by National Association of Purchasing Management.

Construction spending grew for 5th straight month in February

WASHINGTON (AP) -- Construction spending grew for the fifth straight month in February with commercial projects and single-family homes posting big gains. Economists said Monday's report suggests that higher interest rates by the Federal Reserve have yet to significantly slow construction activity, which has been one of the main forces behind the economy's robust growth. Spending on construction projects around the country jumped by a bigger-than-expected 1.5 percent in February to a seasonally adjusted annual rate of $758.7 billion, a record level, the Commerce Department said. Many analysts were predicting spending would actually decline.

American automakers report a mixed bag for March earnings

DETROIT (AP) -- March was a mixed bag for major American automakers, as Ford Motor Co. saw sales jump while General Motors Corp. reported flat results and the Chrysler half of DaimlerChrysler AG reported a small gain.

From the sales automakers reported Monday, March appeared to be another in a string of good months. Industry experts said the strong economy and price competition among automakers was pulling buyers into showrooms despite higher interest rates and gas prices. Ford said its overall sales were up 10 percent, with car sales up 19 percent and truck sales up 5 percent. The boost in car sales came mostly from newer models: the redesigned Ford Taurus/Mercury Sable sedan, the Ford Focus compact cars and the Lincoln LS sedan.

Mattel selling software division of Learning Co. it bought in '99

LOS ANGELES (AP) -- Mattel Inc. is putting its money-losing Learning Co. division up for sale, hoping to get rid of the burdensome software unit that led to ballooning debt and big losses at the world's biggest toymaker.

Mattel said Monday that it retained the investment firm Credit Suisse First Boston Corp. to find a buyer for the Learning Co., which it acquired last May for $3.6 billion in an effort to tap the growing market for interactive toys.

The Learning Company was supposed to immediately add $50 million annually to Mattel's bottom line. Instead, it added losses of $206 million in 1999 and led to Jill E. Barad's resignation in February as Mattel's chairman and chief executive officer.

Sega launching an online service with multiplayer gaming options

NEW YORK (AP) -- Sega Enterprises Ltd. is making an aggressive push into the fast-growing online video-game market with the launch of a new Sega-branded Internet service provider next fall.

Sega is expected to unveil on Tuesday its plans for a new Web entertainment company that includes SegaNet, a high-speed Internet service provider with multiplayer gaming as well as chat capabilities and information about its video games.

SBC Communications wants review of bid for long-distance services

WASHINGTON (AP) -- SBC Communications is asking federal regulators to start a new review of the company's bid to offer long-distance service in Texas, seeking to bolster its much-criticized application with additional information.

Edging close to the deadline by which the Federal Communications Commission was to have decided on the original application, SBC requested that the agency look at a fresh set of facts. That would buy the company 90 more days to make its case that it should be allowed to provide long-distance to its local customers in the state.

Zuka Juice parent firm to close 4 of its 28 locations in Utah

The Jamba Juice Co. of San Francisco, which is the parent company of Zuka Juice, will close four of its Utah stores, leaving 24 stores remaining in the state.

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Company officials said the stores were closing because the market was oversaturated in the Salt Lake Valley.

The stores that will close on April 18 are: Olympus Hills at 3971 S. Wasatch Blvd.; Taylorsville at 1773 W. 4700 South; Oakwood at 5504 S. 900 East; and Cottonwood at 1775 E. Murray Holladay Road.

A total of 58 employees will be affected by the decision. Two of the four affected store managers will get severance packages; one had already decided to resign; and the other will manage a different Zuka Juice store that will remain open. The managers also will be given employment opportunities within the company.

Kirk Perron, Jamba Juice chairman and founder, said closing the stores "was the right decision but a tough one because people's lives are affected. We will do all that we can to relocate the employees to our other stores."

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