AT&T, International Paper And Kodak Booted From Dow industrials

NEW YORK (AP) _ Three longtime components of the Dow Jones industrial average _ AT&T Corp., International Paper and Eastman Kodak _ will be removed from the index of the top 30 industrial stocks, Dow Jones & Co. announced Thursday.

They will be replaced by financial services company American International Group Inc., Baby Bell Verizon Communications and pharmaceuticals maker Pfizer Inc. The change will take place at the start of trading April 8.

'None of these changes was triggered by an event such as an imminent merger, which was the case in the past three instances of changes dating back to the early 1990s,' Paul E. Steiger, managing editor of The Wall Street Journal, said in a statement. 'Rather, they recognize trends within the U.S. stock market, including the continued growth of the financial and health care sectors and the diminishing relative weight of basic materials stocks.'

The Journal's top editors evaluate and select the components of the Dow.

Verizon joins another Baby Bell, SBC Communications Inc., which was added to the index in 1999. It also replaces its former parent, AT&T, which had been a consistent Dow component since 1939. International Paper had been included in the index since 1956, while Kodak had been part of the Dow since 1930.

Kodak spokesman Gerard Meuchner downplayed the company's removal from the Dow, even though the struggling film and imaging company has been one of the index's worst-performing stocks.

'Membership in any index has no bearing on our ability to manage the company for profitable growth,' Meuchner said.

AT&T and International Paper did not immediately return calls seeking comment.

The stocks leaving the index fell in early trading on Wall Street. Kodak lost $1.04 to $25.13, AT&T slipped 39 cents to $19.18 and International Paper fell 70 cents to $41.56.

Those slated to join the Dow fared far better. Pfizer was up 63 cents at $35.68, Verizon gained 86 cents to $37.40 and AIG jumped $1.15 to $72.50.

The 30-stock index last changed on Nov. 1, 1999, when four of the 30 stocks were replaced. At that time, two Nasdaq-traded stocks, Microsoft Corp. and Intel Corp., became the first Dow components not listed with the New York Stock Exchange.

The Dow Jones industrial average was created by Charles H. Dow as a 12-stock index in 1896 and has become the primary barometer of the U.S. stock markets.

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AP Business Writer Ben Dobbin in Rochester, N.Y., contributed to this report.

Copyright © 2004 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.

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