30-year mortgages still over 6%

UNION-TRIBUNE

October 28, 2005

Rates on 30-year mortgages stayed above 6 percent for the third straight week, rising to the highest level in 15 months.

Freddie Mac reported 30-year, fixed-rate mortgages rose to 6.15 percent from 6.10 percent last week and the highest level since 6.21 percent in late July 2004.

Rates on 15-year, fixed-rate mortgages averaged 5.69 percent, up from 5.65 percent. One-year adjustable rate mortgages rose to 4.91 percent from 4.89 percent. Rates on five-year hybrid adjustable rate mortgages rose to 5.63 percent from 5.59 percent.

The nationwide averages for mortgage rates do not include add-on fees known as points. The 30-year and 15-year mortgages both carried a nationwide average fee of 0.5 point while the five-year ARM had an average fee of 0.6 point and the one-year ARM had an average fee of 0.7 point.

Associated Press

DJ Orthopedics earnings up

DJ Orthopedics, a Vista-based company that makes rehabilitation products for the non-operative orthopedic market, reported third-quarter earnings of $7.5 million, or 33 cents a share, increase over the $4.7 million, or 20 cents a share, a year earlier.

Earnings included a $400,000 charge to write off previously deferred expenses related to possible acquisitions that the company stopped pursing. Revenue rose to $72.1 million from $62.5 million.

Iomega narrows quarterly loss

Iomega, a San Diego maker of personal data storage products, lost $12.3 million in its third quarter, compared with a loss of $15.8 million for the same quarter last year. On a per share basis, the company lost 24 cents, down from a 31 cent loss the prior year.

The company sales fell to $55.8 million from $77.2 million. Iomega continues to suffer from declines in its core Zip drive products, which posted sales of $14.9 million, down $17 million for the same period last year. Iomega has introduced a host of other data storage products that have been slow to take hold.

Pan Pacific's net income drops

Pan Pacific Retail Properties, an owner of grocery-anchored shopping centers, reported net income of $24.8 million, or 61 cents a share, for its third quarter. The Vista-based real estate investment trust's income was down from $31 million a year earlier.

Funds from operations, a key gauge of a REIT's performance, increased 7.9 percent to $39.5 million, or 96 cents a share, from the prior year.

Revenue was nearly $61 million, compared with $56.1 million the prior year.

Overland Storage records loss

Overland Storage reported a first-quarter net loss of $2.9 million, or 21 cents a share, vs. net income of $1.9 million, or 13 cents a share, for the same quarter last year.

The San Diego maker of tape libraries and other data storage products posted sales for the quarter of $58.5 million, compared with $59.5 million for the same period last year.

The company attributed the loss to costs associated with outsourcing its manufacturing to a third party and the company's $9 million acquisition of Zetta Systems, a storage software company.

Nuvasive shows loss in quarter

Nuvasive, a San Diego-based company developing products for minimally invasive spine surgery, reported a loss of $18.5 million, or 74 cents a share for the quarter ended Sept. 30. The company, which had its initial public offering in May 2004, reported third quarter revenue of $15.1 million, a 48.6 percent increase over the $10.2 million for the third quarter of 2004. The company reported cash and cash equivalents of $25 million on Sept. 30.

Verizon says earnings climb

Verizon Communications Inc.'s earnings edged higher in the third quarter as record growth in wireless and broadband subscribers offset the ongoing declines in traditional phone lines at the big telecommunications company that is buying MCI Inc. Verizon said it earned $1.87 billion, or 67 cents per share, in the July-September period, up from $1.80 billion, or 64 cents a share, a year ago.

The latest results included a net gain of $37 million from the sale of a New York City office building as well as tax benefits of $115 million that included a repatriation of foreign earnings. Those gains were roughly offset by a $125 million expense relating to Verizon's investment in aircraft leases impacted by recent airline bankruptcies.