DIGEST
America West is adding 56 employees, including mechanics, after a federal inspection raised questions about its maintenance procedures, federal regulators said. While some problems were found, the airline has made corrections and meets all federal requirements, a Federal Aviation Administration official said. He said the FAA acted because of changes in the way the airline was handling maintenance. America West laid off 400 mechanics in December and hired outside contractors to do the work.</br></br>The federal deficit doubled to $27.1 billion in July from year-ago levels, but was headed down for the full 1996 fiscal year, the Treasury Department said. Several unusual factors whittled the year-ago deficit, including a change in the timing of some military and other spending, and a one-time revenue boost from the sale of broadcast licenses. Analysts said the long-term trend for the deficit remained positive.</br></br>Citicorp Securities, the investment banking unit of Citicorp, was fined $25,000 and ordered to surrender $300,000 by the National Association of Securities Dealers. The firm failed to ensure that 19 brokers completed computer-based regulatory training under NASD's continuing education requirements, NASD said. The $300,000 covers what Citicorp paid the 19 brokers during periods in which they shouldn't have been allowed to work because of the infractions, the NASD said. Citicorp, which agreed to the settlement, called its infractions an "oversight."</br></br>Kmart earned $34 million in the second quarter, compared with a year-ago loss of $54 million. The year-earlier results included a $76 million charge for closing stores and discontinuing other operations; apart from that, Kmart would have earned $22 million. After 13 consecutive quarters of losses or lower earnings, the discount retailer said sales had improved and costs declined in the quarter ended July 31.</br></br>Charles E. Smith Residential Realty's executive vice president and chief financial officer, Anthony J. LoPinto, has "resigned by mutual agreement," the company said. "It has nothing to do with any financial reporting issues of the company or any financial impact on the company," said Ernest A. Gerardi, the Arlington company's president and chief operating officer. Charles R. Hagen, vice president and corporate controller, was named acting chief financial officer.