COMPANIES

American Enviro Products said it will no longer claim that its Bunnies diapers are biodegradable. The company agreed to redesign the diapers, their packaging and pay $5,000 each in costs to 10 states, after nine months of negotiations between the company and a task force of attorneys general from the states.

Ames Department Stores is laying off 250 administrative employees and will close offices in Syracuse, N.Y., and West Hartford, Conn., to cut costs.

Bell Atlantic will merge its two computer software companies, Bell Atlantic Knowledge Systems and Technology Concepts. The new firm, to be based in Morgantown, W.Va., will be called Bell Atlantic Software Systems and will be headed by William E. Miller.

Delta Air Lines will spend $315 million to expand operations and nearly double its work force at Cincinnati's airport. The project will add 25 arrival and departure gates to the Delta hub.

Cray Research received an order for a supercomputer from Tohoku University. It is the first public university in Japan to place such an order. The system is valued at $20 million.

Centaur Partners, headed by Bethesda investor Melvyn Estrin and New York investment manager Abbey J. Butler, raised its stake in Pittsburgh-based National Intergroup to 17.53 percent from 16.52 percent.

CFS Financial, the Fairfax-based parent of Continental Federal Savings Bank, said it expects a loss in the quarter ended Sept. 30 because of its decision to "significantly increase" its reserve against potential loan losses.

REGULATION

Weight Watchers International said a judge has enjoined Stouffers Foods from using the phrase "Weight Watchers exchange" in reference to its Lean Cuisine frozen foods. Weight Watchers said Stouffers may refer to the Weight Watchers trademark in its advertising but must do so in a "non-confusing, non-deceptive manner."

COURTS

Eastern Air Lines foreman Michael Hennessey pleaded guilty to falsifying aircraft safety and maintenance records in a scheme that allegedly allowed unsafe aircraft to carry passengers, records from a Brooklyn court show. The records allege the scheme was directed by two top Eastern executives.

AT&T was sued for $90 million in damages by a Venezuelan computer company that claimed AT&T tried to put the firm out of business and monopolize the phone and computer industries in Venezuela.

EARNINGS

NCNB Corp. said third-quarter earnings fell 60 percent.

General Dynamics reported a 10 percent decline in third-quarter profits.

Northrop said its third-quarter profit nearly doubled, largely because of a strong turnaround in its electronics division.

Dun & Bradstreet said earnings fell 10 percent in the third quarter.

Bristol-Myers Squibb reported a 20.7 percent increase in net income for the third quarter.

Bear Stearns said earnings were down 18 percent in its first fiscal quarter.

ODD LOTS

Three consumer groups urged Americans to refuse to buy any car not equipped with air bags. They chastised most Japanese automakers for lagging behind U.S. and European counterparts in plans to install the devices.