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Petroleum industry

US and Global Business News Roundup

Strategic Insights

— 2 min read

The White House was urged to intervene in the West Coast salmon fishing dispute between the US and Canada, as Washington state officials and business leaders warned that continued Canadian interception of fish bound for Puget Sound could hamper any recovery effort. Meanwhile, the Automotive industry saw several major announcements, including a recall of 20,306 Subaru Legacy cars and station wagons due to oil filter issues, and Chrysler's record-breaking third-quarter earnings. Enron's profits plummeted 81% due to higher production costs and lower oil prices. The Aerospace industry saw merger talks between British Aerospace and Daimler-Benz Aerospace, and IBM unveiled its new ThinkPad i Series notebook computer line, targeting the expanding low-priced market.

Key Takeaways:

  • The White House has been urged to intervene in the West Coast salmon fishing dispute between the US and Canada, with Washington state officials and business leaders warning that continued Canadian interception of fish bound for Puget Sound could hamper any recovery effort.
  • Subaru is recalling 20,306 Legacy cars and station wagons due to oil filter issues, which could cause an engine fire. Eight fires have been reported, but no accidents or injuries have resulted.
  • Chrysler has set a third-quarter earnings record, with earnings totaling $682 million, a 55% increase from the same period last year. The company credited strong sales of profitable new models, cost-cutting, and the smooth launch of the redesigned '99 Jeep Grand Cherokee for its success.
  • Enron's profits have plummeted 81% due to higher production costs and lower oil prices. The company's unit, Enron Oil & Gas, produces about 4% of Enron Corp.'s revenue.
  • British Aerospace is in merger talks with Daimler-Benz Aerospace of Germany and other European airplane makers, aiming to create a formidable competitor to US defense contractors Boeing Co. and Lockheed Martin Co.
  • IBM unveiled its new ThinkPad i Series notebook computer line, targeting the expanding low-priced market. The notebooks start at $1,499 and feature wider screens and more memory than other name-brand products at that price.

Statistics:

  • 80% of Washington salmon catches occur in Canadian waters in some years.
  • 4% of Enron Corp.'s revenue comes from Enron Oil & Gas.
  • Enron Oil & Gas's net income fell 81% from $31.2 million to $5.9 million in the third quarter.
  • Worldwide revenue from notebook computers priced under $2,500 is expected to reach $9 billion in 1998.
  • The US sales of notebook computers priced under $2,500 are expected to increase 19.7% in 1998.
  • Chrysler's third-quarter earnings totaled $682 million, a 55% increase from the same period last year.

Sources:

  • "Feds' help sought in salmon dispute" by [Unknown], Vancouver, British Columbia (no date)
  • "Subaru recalls 20,306 Legacies" by [Unknown], Detroit (no date)
  • "Chrysler sets earnings record" by [Unknown], Auburn Hills, Mich. (no date)
  • "Enron profits plunge 81 percent" by [Unknown], Houston (no date)
  • "Aerospace firms talk merger" by [Unknown], London (no date)
  • "IBM unveils new notebook PCs" by [Unknown], Armonk, N.Y. (no date)

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