United Airlines may seek bankruptcy protection

United Airlines’ stock plummeted 20 percent Friday on a new round of published speculation about the chances that its protracted financial struggles might ultimately send it into bankruptcy.

The catalyst for the latest selloff was a report in Business Week magazine that said United is in dire need of a government rescue in order to avoid bankruptcy. It also said the nation’s No. 2 airline had retained bankruptcy lawyers.

Shares in United parent company UAL Corp. fell $1.07 to close at $4.15 on the New York Stock Exchange, down 88 percent from a year ago. United spokesman Joe Hopkins confirmed that bankruptcy attorneys had been hired, although he said it occurred shortly after last year’s terrorist attacks not earlier this year, as the report said. He declined to discuss the prospects of bankruptcy.

Utility

Westar posts profit

Westar Energy posted second-quarter earnings of $12.8 million, or 18 cents a share, compared to a loss of $30.2 million, or 43 cents a share, in the year-ago period, the company announced Friday.

Revenues from the Topeka-based company’s utility operations increased to $418 million in the quarter, up from $412 million in the same period last year.

On Friday, Westar’s subsidiary, Protection One, also announced its quarterly earnings had improved from a year ago. The home security company posted a loss of 4 cents per share for the quarter compared to a loss of 32 cents per share during the same period a year ago.

Agriculture

Farm land values rise

Despite low commodity prices and drought, the value of farm real estate rose nearly all across the United States with both Kansas cropland and farmland showing only a modest increase, the U.S. Department of Agriculture reported Friday.

In its annual agricultural land values report, the agency said the value of farm real estate in the United States averaged $1,210 per acre, up 5.2 percent from the previous year.

The $60-per-acre increase in farm real estate value continues a climb that began in 1987, the USDA said.

In Kansas, the average value of farmland in 2002 was $620 an acre, up 1.6 percent from last year’s $610-per-acre value. In 1998, an acre of farmland in the state averaged $577.

Kansas crop land was worth an average $691 per acre in 2002, up 1.6 percent from a year ago. Pasture values remained unchanged from a year ago at $400 per acre.

Beef

Plant remains closed

Slaughtering remained suspended Friday at Future Beef Operations, and the plant along with its 800 jobs appeared headed for liquidation unless emergency funding can be found to keep the company operating.

Carl Eklund, an attorney for Future Beef, said the Arkansas City-based company has until Aug. 14 to consent to or challenge a court motion for liquidation under Chapter 7 of the U.S. Bankruptcy Code.

Even if Future Beef goes under, city officials said they were optimistic the plant would eventually return to operation.