Indicators pointing up for economy in 2003

The number of Americans filing new claims for unemployment benefits rose by 18,000 last week, but a key forecasting gauge of future economic activity was more promising, rising for a third consecutive month.

The Conference Board reported that its Index of Leading Economic Indicators rose by 0.1 percent in December, lending support to the view that the economy will perform better in 2003. While the increase was small, it was the third straight gain and followed stronger advances of 0.5 percent in November and 0.2 percent in October.

Aviation

Cessna expects slowdown

Cessna Aircraft Co. ended 2002 with the highest revenues in its 75-year history, with sales totaling $3.2 billion and deliveries of 946 planes, the company announced Thursday.

But the good news was tempered with an announcement to analysts in a conference call that the company planned to deliver just 220 Citation jets this year, said Cessna spokeswoman Jessica Myers.

Last year, Cessna built 307 Citations at its Wichita plant. When Cessna announced its latest round of 1,500 job layoffs last year, it said at the time it expected to build 250 Citations this year. No additional layoffs are expected at the Wichita plant as a result of the lowered forecast, company officials said.

Wall Street

AT&T profits to fall short

Struggling phone giant AT&T Corp. said Thursday it earned $516 million in the fourth quarter, largely because of selling its cable division, but warned the current quarter’s results could be below analysts’ expectations. Its stock fell sharply.

In a conference call with analysts, AT&T Chairman and Chief Executive David Dorman said earnings per share in the current first quarter would be between 50 cents and 55 cents. Wall Street’s consensus estimate is 69 cents.

For all of 2002, AT&T lost $13.1 billion, $17.08 per share, on revenue of $37.8 billion. Those results, however, included the broadband business and other discontinued operations, and the company said its ongoing operations had a profit of $963 million, or $1.26 per share.

AT&T’s stock closed down $4.83 at $20.49 per share on the New York Stock Exchange.

Wichita

Firm to leave for Texas

Tweco Products, founded in Wichita more than 66 years ago, will close its Wichita plant and relocate its operations to Denton, Texas.

Tweco, owned by St. Louis-based Thermadyne Holdings Inc., employs about 160 people in Wichita. The shutdown will take place during the next 12 months, the company said.

Tweco Products manufactures arc welding accessories such as ground clamps and electrode holders and several types of welding torches.

Utility

ONEOK declares dividend

Tulsa, Okla.-based ONEOK Inc. announced a quarterly dividend of 17 cents per share, an increase of 1.5 cents from its previous quarterly dividend.

The utility said the dividend would be payable Feb. 17 to shareholders who own stock in the company as of Feb. 3.