Printer Friendly

SEARS REPORTS QUARTERLY EARNINGS

 SEARS REPORTS QUARTERLY EARNINGS
 CHICAGO, Feb. 4 /PRNewswire/ -- Sears, Roebuck and Co. today


reported fourth-quarter net income of $513.1 million, or $1.48 per common share, a 35.5 percent increase over the $378.8 million, or $1.10 per common share, reported a year ago. Net income for the year ended Dec. 31 was $1.28 billion, or $3.71 per common share, 41.8 percent above the $902.2 million, or $2.63 per common share, reported in 1990.
 Earnings for the year reflect a new accounting standard which the Financial Accounting Standards Board has reported will be publicly released next week and will be adopted by Sears retroactive to Jan. 1, 1991, at that time. The principal effect of the accounting change will be the elimination of the deferred tax charges taken by Sears throughout 1991. These charges amounted to $185.5 million during the first three quarters and were reduced by a credit of $35.5 million in the fourth quarter for a full-year effect of $150 million.
 Prior to the accounting change, fourth-quarter net income was $552.6 million, or $1.60 per common share, and net income for the year was $1.14 billion, or $3.32 per common share.
 Operating income for the fourth-quarter was $655.1 million, a $506.5 million increase from $148.6 million in 1990. Operating income for the year was $1.33 billion, an increase of 151.4 percent over $529.4 million in the prior year. Operating income in 1990 was reduced by a pre-tax restructuring charge of $264.4 million recorded in the fourth quarter.
 Fourth-quarter revenues rose 2.6 percent to $15.97 billion, compared with $15.56 billion in 1990. For the full year, revenues rose 2.3 percent to $57.24 billion from $55.97 billion in 1990.
 Edward A. Brennan, Sears chairman and chief executive officer, noted that, despite the prolonged recession, all Sears business groups had improved performances over the prior year.
 SEARS MERCHANDISE GROUP
 Fourth-quarter income of Sears Merchandise Group was $289.1 million, compared with $95.6 million in 1990, which included an after-tax restructuring charge of $155.2 million. Revenues totaled $9.5 billion for the fourth quarter, compared with $9.44 billion in 1990.
 For the year ended Dec. 31, Merchandise Group income was $486.3 million, compared with $257.4 million in 1990 which included the restructuring charge. Revenues for the full year declined 1.7 percent to $31.43 billion from $31.99 billion in 1990.
 Brennan said the low level of consumer confidence hampered sales of durables and big-ticket merchandise throughout the year. He noted, however, that in spite of the recessionary environment, the company has experienced improving sales trends in recent months. He said, "The Merchandise Group will continue to focus on revenue enhancement and cost reduction programs. We enter 1992 in a much stronger position than we entered 1991. A major factor was the achievement of this year's $600 million cost reduction goal. We have made substantial progress, but there is much more to be done, and we will move further and faster."
 Brennan said that the credit operations and Sears Mexico continued to perform well, but Sears Canada's results lagged due to a depressed economic environment and domestic catalog revenues remained sluggish throughout the year.
 ALLSTATE INSURANCE GROUP
 Allstate Insurance Group's fourth-quarter income increased to $210.9 million from $118.2 million before a $139 million one-time tax benefit reported in the 1990 quarter. Income in 1991 reflects the new tax accounting standard which eliminates the $35.5 million deferred tax credit. Including the one-time tax benefit, 1990 fourth-quarter income was $257.2 million. Fourth-quarter revenues were up 4.0 percent to $4.8 billion, compared with $4.61 billion in 1990.
 For the year, Allstate's income increased 30.9 percent to $722.5 million, compared with 1990 income from continuing operations of $551.8 million before the one-time tax benefit. Allstate's income for 1991 reflects the elimination of the $150-million deferred tax charge under the new income tax accounting. Income for 1990 after the one-time tax benefit and including income from discontinued operations of $10.5 million was $701.3 million. Improvements in underwriting results and investment income more than offset a decrease in realized capital gains for both the year and fourth-quarter, despite the highest level of catastrophic losses in Allstate's history. Group revenues rose 6.3 percent to $19.35 billion for 1991 compared with revenues of $18.2 billion in 1990.
 DEAN WITTER FINANCIAL SERVICES GROUP
 Dean Witter reported fourth-quarter income of $83.8 million, compared with $56.8 million in 1990. Securities business income rose 91.9 percent to $51.8 million from $27.0 million in 1990. Earnings from credit services, including Discover Card, were $32.0 million, compared with $29.8 million posted in 1990. Group revenues for the quarter rose 6.4 percent to $1.28 billion, compared with $1.21 billion in 1990.
 For the year, the Dean Witter Group reported $344.6 million in income, up 48.0 percent from the $232.9 million reported in 1990. Securities business produced income of $171.0 million, 56.9 percent higher than the $109.0 million posted in 1990. Credit services, including Discover Card, recorded income of $173.6 million, up 40.1 percent from $123.9 million in 1990. Group revenues rose 7.3 percent to $4.94 billion from $4.61 billion a year ago.
 Outstanding Discover Cards grew to 41.2 million at year end from 37.8 million, while merchant outlets rose 15.2 percent to 1.43 million from 1.24 million. Discover Card's gross receivables balance grew to $14.7 billion from $11.6 billion.
 COLDWELL BANKER REAL ESTATE GROUP
 Coldwell Banker Real Estate Group reported fourth-quarter income of $17.2 million, compared with $49.9 million in 1990. After-tax gains from the sale of properties were $31.9 million in 1991, compared with $72.6 million a year ago. Revenues totaled $406.4 million, compared with $343.9 million in 1990.
 For the year, Coldwell Banker income totaled $60.6 million, compared with $25.5 million in 1990, reflecting a significant improvement in income from operations. After-tax gains from the sale of properties were $101.3 million in 1991, compared with $117.9 million a year ago. Group revenues totaled $1.61 billion, compared with $1.38 billion in 1990.
 SEARS ANNOUNCES SEC FILING AND SFAS NO. 106 IMPACT
 Sears intends to announce separately today a filing with the Securities and Exchange Commission for a preferred stock offering of about $1 billion in the form of mandatorily exchangeable preferred shares, also known as PERCS.
 In the registration statement, Sears also disclosed the impact of Statement of Financial Accounting Standards No. 106 relating to accounting for post-retirement benefits other than pensions, which must be adopted by Jan. 1, 1993. Sears said the standard will require it to accrue retiree health care and life benefits. Sears currently expenses retiree insurance benefits as they are incurred.
 Sears said that if t recognizes the non-cash transition obligation as a one-time charge, net income and shareholders' equity would be reduced in the year of adoption by an estimated $1.75 billion to $2.5 billion and net income would be decreased annually by an estimated $50 million to $150 million. If, on the other hand, Sears elects to amortize the transition obligation, annual net income would be further decreased by the amortization of the transition obligation over 20 years.
 Sears said the financial impact of the accounting change can fluctuate significantly depending upon a number of factors, but it will have no impact on cash flow.
 -0- 2/4/92
 /CONTACT: Gerald Buldak of Sears, 312-875-8371/
 (S) CO: Sears, Roebuck & Co. ST: Illinois IN: REA SU: ERN


KD -- NY028 -- 6564 02/04/92 09:57 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 4, 1992
Words:1316
Previous Article:KROGER FOURTH QUARTER PER SHARE BEFORE EXTRAORDINARY ITEMS: 46 CENTS VS. 78 CENTS
Next Article:BACHMAN PRODUCTS NOW AVAILABLE ON GSA SCHEDULE
Topics:


Related Articles
SEARS DECLARES REGULAR QUARTERLY DIVIDEND
SEARS REPORTS QUARTERLY EARNINGS
SEARS REPORTS QUARTERLY EARNINGS
SEARS REPORTS QUARTERLY EARNINGS
SEARS DECLARES DIVIDENDS
Sears Declares Dividend
Sears Reports Second Quarter 2003 Results.
Sears Announces Regular Quarterly Dividend.
Sears to Webcast Fourth Quarter Earnings Conference Call.
Sears to Webcast First Quarter Earnings Conference Call.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters