SEARS REPORTS QUARTERLY EARNINGS
SEARS REPORTS QUARTERLY EARNINGS CHICAGO, April 16 /PRNewswire/ -- Sears, Roebuck and Co.
(NYSE: S) today reported first quarter consolidated net income of $321.8 million, resulting in a 35.7 percent increase over last year's net income of $237.2 million and the second-largest first-quarter performance in Sears 105-year history.
Net income per common share for the quarter was 89 cents, a 29 percent increase over the 69 cents reported in 1991, and reflects the dilutive effect of a mandatorily exchangeable preferred stock offering in February. Sears Chairman and Chief Executive Officer Edward A. Brennan said the quarter reflected improved operating performance, the impact of several non-recurring transactions and the effect of ongoing cost reduction programs. Consolidated operating income rose 72.3 percent to $193 million from $112 million a year ago. Non-recurring transactions included $86.6-million in after-tax gains from the sale of minority interests in Sears Mexico and SPS Transaction Services, Inc. These gains more than offset a $38.5-million after-tax restructuring charge in Sears Merchandise Group. The 1991 first-quarter included a $68.1- million net gain from property sales by Coldwell Banker Real Estate Group. No similar gain was recorded this year. Brennan said prior to the restructuring charge in Sears Merchandise Group, all business groups recorded improved operating income in the quarter. Consolidated revenues rose 4.8 percent to $13.51 billion from $12.88 billion in 1991. Merchandise Group income was $16.5 million, compared with a $14.1- million loss for the first quarter a year ago. Increased revenues and a $54.5-million after-tax gain from the sale of a minority interest in Sears Mexico more than offset the $38.5-million restructuring charge. The charge related to severance costs due to the recently announced cost reduction programs for commission sales and headquarters staff. Group revenues rose 3.3 percent to $6.85 billion from $6.63 billion in 1991, reflecting an increase in domestic store revenues, which was partially offset by a decline at Sears Canada and a planned revenue decrease in the catalog business. Allstate's first-quarter income was $261.1 million, up 22.2 percent over the $213.6 million reported last year. Property-liability results rose $70.4 million due to improvements in underwriting performance, investment income and capital gains. Income from life operations decreased $22.9 million, primarily because of write-downs on the commercial mortgage portfolio to reflect real estate market conditions. Revenues for Allstate grew 4.6 percent to $5 billion from $4.78 billion in 1991. Dean Witter reported first-quarter income of $143.5 million, compared with $78.1 million last year, reflecting improved operating performance and a $32.1-million gain from the SPS transaction. Dean Witter's securities business reported income of $56.6 million, up 68.5 percent from $33.6 million a year ago. Credit services income including the SPS gain was $86.9 million, compared with $44.5 million in 1991. Group revenues rose 10.7 percent to $1.32 billion from $1.19 billion in the first quarter of 1991. Coldwell Banker reported a first-quarter loss of $13.4 million, compared with income of $41 million in the first quarter of last year. After-tax gains from the sales of properties totaled $68.1 million in 1991. Operating results increased by $17.8 million before tax over the prior year, due to significantly improved performance within its residential brokerage and mortgage lending businesses. Revenues rose 19.6 percent to $384.2 million from $321.3 million in 1991. -0- 4/16/92 R /NOTE TO EDITORS: Net income in the first-quarter of 1988 increased from $164.9 million to $709.1 million after the cumulative effect of an income tax accounting change./ /CONTACT: Gerald E. Buldak of Sears, Roebuck, 312-875-8371/ (S) CO: Sears, Roebuck and Co. ST: Illinois IN: REA SU: ERN
CK -- NY042 -- 9220 04/16/92 11:08 EDT
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|Date:||Apr 16, 1992|
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