www.austin360.com By FABIOLA SANCHEZ Associated Press Writer

CARACAS, Venezuela (AP)--Schools, restaurants and malls may reopen amid fears that a 57-day-old strike called to force President Hugo Chavez from office could backfire, business leaders said, as the government extended a freeze on foreign currency sales for another week to protect its battered currency.

Business representatives expressed concern Monday that discontent with food and fuel shortages caused by the strike could undermine its objective of removing Chavez from office.

Julio Brazon, president of the Consecomercio business chamber, which represents about 450,000 stores and retailers, said businesses need ``to recover earnings and avoid labor problems.'' He said shopping malls and franchises may be permitted to open part-time next week.

Carlos Avila, executive president of Subway de Venezuela, said fast food franchises were considering opening four days a week. Each of Subway's 76 branches in Venezuela have lost an average of $30,000 during the strike.

The National Association of Private Education, which represents 911 private schools, convoked assemblies this week to decide whether schools should open Feb. 3.

Strike organizers, who accuse Chavez of dragging this South American country into political and economic chaos, warned that easing the work stoppage would be counterproductive.

``If some sectors of the opposition, business sectors or political sectors, think they can save themselves from this regime by easing the strike, they are totally mistaken,'' labor boss Carlos Ortega said.

Strike leaders said the work stoppage in the oil industry, which provides half of government revenue, would continue.

``The protest by oil workers will continue because this is the path we are taking to find a solution to the crisis,'' dissident oil executive Juan Fernandez said at a press conference.

Crude output reached 966,000 barrels a day on Monday, according to striking executives at state oil monopoly Petroleos de Venezuela S.A., or PDVSA. Chavez claimed Sunday that daily production had surpassed 1 million barrels.

Oil production dropped as low as 150,000 barrels per day in December compared to pre-strike levels of 3.2 million barrels per day.

A waning strike could give Chavez the upper hand in negotiations with the opposition. Negotiations, mediated by the Organization of American States, have focused on whether to hold early presidential elections.

Meanwhile Tuesday, the Finance Ministry extended a freeze on foreign currency sales, first imposed last Wednesday, until Feb. 5. The suspension is designed to give the government more time to implement a new policy of foreign exchange controls, which will limit the amount of dollars and other foreign currencies Venezuelan can buy.

Exchange controls would stem the slide of Venezuela's bolivar currency, which has lost a quarter of its value this year. But they could hurt businesses that depend on dollars to buy imported goods.

The strike has cost Venezuela at least $4 billion so far. The economy could shrink by as much as 40 percent in the first quarter of 2003, the Santander Central Hispano investment bank has warned.

Chavez, a firebrand former paratrooper, was elected in 1998 and re-elected two years later. His term in office ends in 2007.

Government adversaries are now pinning hopes on amending the constitution to allow early elections. They must gather signatures from at least 15 percent of Venezuela's 12 million registered voters to call a referendum to cut the presidential term to four years.

Another option is waiting until August, when the constitution allows for a legally binding referendum on the president's rule.

Opposition parties are organizing a massive signature collection campaign on Feb. 2, the same day a nonbinding referendum on Chavez's presidency was supposed to be held. Citing a technicality, Venezuela's Supreme Court ruled last week balloting must be postponed indefinitely.

asia.reuters.com Tue January 28, 2003 10:20 AM ET

WILMINGTON, Del. (Reuters) - DuPont Co. DD.N , the No. 2 U.S. chemical company, on Tuesday said fourth-quarter profit, excluding a huge one-time gain a year earlier for selling its drug business, nearly tripled with stronger sales of everything from nylon and spandex to automotive paint.

Including the gain, its net earnings fell sharply.

DuPont, whose chemicals are used to make products ranging from Stainmaster carpets to Teflon coatings, has been cutting jobs and closing plants for the past two years to cope with soaring energy prices and lower spending by manufacturers. It has already announced plans to eliminate at least 5,500 jobs.

Now the company -- a component of the Dow Jones industrial average -- says it is starting to see "modest growth" in many of its businesses and its revenue for the quarter rose about 8.6 percent to $5.68 billion.

DuPont is not entirely in the clear, however. Chemical prices are still relatively depressed, pension expenses are up and energy costs have been climbing steadily higher as the United States has made preparations for a possible war with Iraq.

Unless business or world events change dramatically, the company said its earnings in the first-quarter would be similar to what they were a year ago, which would be below most current analysts' estimates.

But after a recent warning that its fourth-quarter earnings would fall short of expectations, the company actually reported profit that surpassed many forecasts.

Net income fell to $350 million, or 35 cents a share from $3.92 billion, or $3.82 per share a year ago, when its results were heavily influenced by a huge gain from the sale of its pharmaceuticals business.

Stripping out one-time items, profit rose to $345 million, or 34 cents a share, from $124 million, or 12 cents a share, a year ago. Its fourth-quarter earnings were 2 cents a share above the Thomson First Call consensus forecast.

Shares of DuPont were up 31 cents at $38.77. During the fourth quarter, they rose more than 17 percent, outperforming the Dow Jones, which increased nearly 10 percent during the same period.

EQUITY WRITEDOWN

DuPont, whose total sales are slightly below Dow Chemical Co.'s DOW.N , is not the only chemical company trying to dig out of a long downturn in the chemical market. Smaller rivals PPG Industries PPG.N and Rohm and Haas Co. ROH.N lowered fourth-quarter profit expectations before this month's earnings season, blaming continued weak demand.

Although DuPont showed signs that sales were rising from the depressed levels of a year ago, the entire industry still must deal with high energy costs. Crude oil and natural gas are key components of raw materials used in the industry, and energy prices over recent weeks have been bolstered by concerns about the possibility of U.S. military action in Iraq and a workers strike in Venezuela.

The other threat to DuPont's earnings is increased pension and other postretirement benefit costs. Largely to reflect a decline in the market value of its pension assets, DuPont said it will reduce stockholders' equity by about $2.5 billion after-tax. It also said the combined impact of pension and other postretirement expenses will lower 2003 earnings by 34 cents to 39 cents a share, compared to the prior year.

At the moment, the company expects 2003 first-quarter earnings per share to be roughly similar to prior-year earnings, before special items, when it earned 55 cents a share. Current estimates range from 53 cents to 70 cents a share, with an average of 64 cents.

sg.biz.yahoo.com Tuesday January 28, 10:06 PM

CARACAS (Dow Jones)--Venezuela's automobile industry expects vehicle sales to plunge about 61% to roughly 50,000 units in 2003, from 128,623 in 2002, Ricardo Tinoco, the spokesman for Ford Motor Co.'s (F) local unit said Tuesday.

"Sales in January are almost nonexistent. February probably won't be much better. In fact, the whole first quarter will be absolutely off," Tinoco said, referring to the effects of an ongoing 58-day-old general strike which has severely affected the economy.

"If anything starts to happen, it will be in the second or third quarter," he added.

Select from the most reliable agencies  The automobile industry blames the predicted drop in sales on Venezuela's severe economic crisis combined with anticipated foreign exchange controls.

Gross domestic product is estimated by analysts to have contracted more than 8% last year, when vehicle sales were down about 41% from 216,977 units in 2001. Auto industry officials had predicted about a 50% drop for last year.

Given the strike virtually shut Venezuela's vital oil industry for more than a month, along with many other sectors, GDP is seen shrinking as much as 40% this quarter and up to 25% for the year.

Tinoco added the bolivar's ($1=VEB1853) steep devaluation has already had an affect on sales and will likely continue because imported vehicles and some 70% of parts for those assembled here have become more expensive.

After devaluing 46% in 2002, the bolivar lost about 25% against the dollar this year before the government halted sales of foreign exchange last week. The halt is to continue until the government implements measures expected sometime next month that could include a fixed rate for the bolivar and other restrictions.

Venezuela/Auto Sales -3: Ford Ops Still Shut On Strike

Because several of its local parts manufacturers are still on strike, Ford's production is still shut down, Tinoco said.

"We don't have an exact idea of when" production will resume, he said.

Although many businesses have reopened recently, strike leaders have said they won't officially call off the action until President Hugo Chavez agrees to early elections.

Chavez has said his detractors must avail themselves of constitutionally approved measures, such as an amendment shortening his term or a possible recall referendum in August, the midpoint of his term.

Chavez's critics blame his left-leaning policies for the country's deepening economic crisis, as the economy likely contracted about 8% last year amid unemployment of 17% and inflation of 31%.

Chavez, first elected in 1998 on promises to eradicate corruption and inequality, has blamed the recession on an "economic coup" by his opponents.

In 2002, General Motors Corp. (GM) led local vehicle sales with 38,044 units, followed by Toyota Motor Corp. (TM) and Ford with 20,934 and 17,971 vehicles, respectively.

-By Jehan Senaratna, Dow Jones Newswires; 58212 564 1339; jehan.senaratna@dowjones.com

www.wpri.com By Eyewitness News Jan 28, 2003, 9:22am

PROVIDENCE, R.I. (AP) - Home-heating oil prices have risen again, causing cash-strapped residents to look to the government for help in keeping warm.

With the mercury dropping, the demand for heating oil has been great. But for some residents, the spike in the price of heating oil has made it difficult to afford heat.

Last week, the average price of home-heating oil was $1.539 a gallon, the highest in two years. On Monday, the average retail price was even higher, at $1.609 a gallon, according the Energy Office.

For these and other reasons, phones were ringing off the hook at the Energy Office, as residents called for assistance.

The office was arranging either cash grants through Rhode Island’s Low-Income Home Energy Assistance Program or for emergency fuel deliveries, The Providence Journal reported.

On Friday, President Bush ordered the release of $200 million to a federal home heating aid program to help millions of low-income people across the nation pay their heating bills.

Rhode Island received $2 million to distribute to residents who qualify.

“We’re getting calls on every line,” said Janice M.

McClanaghan, state chief of energy and community services. McClanaghan said so far this season, about 22,000 households have received grants under the program averaging about $370 per household. With the extra $2 million, the agency should be able to provide grants for about 3,000 more households, she said.

The additional federal funds mean the state will have received a total of about $13.5 million under the program for the year that ends in September.

The price of home-heating oil continues to rise, generally tracking increases in the price of crude oil, partly because of the extreme cold, McClanaghan said. But also the uncertainty about the fate of oil-rich nations such as Venezuela, and the possibility of war against Iraq, affect prices.

news.bbc.co.uk Tuesday, 28 January, 2003, 14:13 GMT

Venezuela's 58-day-old strike by right-wing business groups and unions to remove the country's democratically elected president appears to be waning.

Oil production has increased, the stock exchange reopened and the opposition infighting over how to continue their actions against President Hugo Chavez has become public.

If some sectors of the opposition, business sectors or political sectors, think they can save themselves from this regime by easing the strike, they are totally mistaken

Carlos Ortega Strike leader

Striking oil workers now concede that production has recovered to 966,000 barrels per day, about a third of pre-strike levels, from the lows of 150,000 in December.

The government of the world's fifth largest oil exporter says output is currently at 1.32 million barrels a day.

The Caracas stock exchange gained over 10% when it resumed operations on Monday after its last session on 29 November.

"You can't close indefinitely," said exchange president Nelson Ortiz.

"The government didn't pressure us at all into reopening," he said adding it would trade for limited hours every day.

Strikers infighting

Faced with the possibility of bankruptcy, many private businesses, restaurants and stores have already broken the strike and private banks continue to open everyday, but for limited hours.

A strike leader has condemned the return to work by business.

Shortages are causing discontent with the strikers

"If some sectors of the opposition, business sectors or political sectors, think they can save themselves from this regime by easing the strike, they are totally mistaken," said union leader Carlos Ortega.

Several business leaders have said that schools, restaurants and shopping malls should be allowed to reopen.

"Some people plan to reopen some commerce, industry and work activity," opposition leader Julio Borges told reporters.

"We must respect that as the strike is voluntary."

Mixed messages

But strike leaders said the walkout at the state oil monopoly, Petroleos de Venezuela (PDVSA), which provides half of government revenues, would continue.

The government, however, claims most of PDVSA's 40,000 employees have returned to work after 3,000 managers were sacked.

Last week some oil tanker pilots agreed to return to work.

But the true state of affairs within the oil refineries and aboard platforms is not known.

The strike at the oil work is having the most dramatic effect on the economy.

Business strike breakers

To prop up the economy, Venezuela on Monday extended a suspension of foreign exchange trade until 5 February to offset the damage caused by the strike and maintain its foreign reserves.

Business join banks in breaking the strike

"If we hadn't suspended trading, there would have been continual withdrawals, creating a banking crisis," Finance Minister Tobias Nobrega told local television.

"We are losing international reserves dramatically ... about $60m a day," he said.

The government plans to introduce a fixed exchange rate, after the bolivar lost a quarter of its value this year, but no level has been given.

International intervention

Representatives from six nations - led by the US and Brazil - are due in Caracas on Thursday to try to broker an end to the crisis.

Former US President Jimmy Carter has tabled constitutional reforms to shorten the president's term or hold a binding referendum on Mr Chavez's rule in August.

He was elected in 1998, re-elected two years later, and his term ends in 2007.

Business leaders fear popular discontent with food and fuel shortages caused by the strike could undermine their attempt to remove Mr Chavez from office.

The strike is estimated to have cost Venezuela at least $4bn.

As a result, the economy could shrink by up to 40% in the first quarter of 2003.