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SEARS REPORTS QUARTERLY EARNINGS

 SEARS REPORTS QUARTERLY EARNINGS
 CHICAGO, Oct. 22 /PRNewswire/ -- Sears, Roebuck and Co. (NYSE: S)


today reported a third-quarter consolidated net loss of $833.7 million, or $2.25 per common share. The loss was primarily due to a previously reported after-tax charge of $1.25 billion relating to insurance claims from Hurricanes
Andrew and Iniki. Consolidated net income for the third quarter of 1991 was $229.2 million, or 67 cents per common share.
 For the nine months of 1992, the consolidated net loss was $166.1 million, or 51 cents per common share, compared with net income of $765.8 million, or $2.23 per common share, in 1991.
 Sears Chairman and Chief Executive Officer Edward A. Brennan said record catastrophic insurance losses overshadowed exceptionally strong operating performances at Allstate Insurance Group and Dean Witter Financial Services Group. Additionally, Sears said it took an after tax charge of $20.5 million in the third-quarter to write off an investment in Phar-Mor Inc.
 Common shares outstanding reflect a mandatorily exchangeable preferred stock offering in February 1992. Average common shares outstanding in the third quarter totaled 373.8 million, compared with 344.0 million a year ago.
 Consolidated revenues for the third quarter rose 1.3 percent to $14.49 billion from $14.30 billion in the same period last year. Revenues for the nine months rose 2.4 percent to $42.27 billion from $41.27 billion.
 Sears Merchandise Group reported a third-quarter loss of $36.4 million, compared with income of $54.4 million for the same period last year. Brennan said that the decline in the Merchandise Group's profitability was largely attributable to the effects of the automotive situation which surfaced in June. Third-quarter results reflected a decrease of approximately $80 million in automotive revenues and a $27 million after-tax charge for settlement and associated costs related to automotive matters, including a provision for coupon redemption. An additional factor was lower margins due to strong promotional efforts in an intensely competitive environment as well as above-average clearance markdowns.
 Brennan said, "Recent sales trends have been encouraging and appliances, furniture and apparel have posted strong gains." Revenues rose 0.7 percent to $7.71 billion from $7.66 billion a year ago.
 Merchandise Group income for the nine months was $58.6 million, down from the $197.2 million reported a year ago. Included in nine month results were two first-quarter transactions -- a $38.5 million after-tax restructuring charge and a $54.5 million gain from the sale of a minority interest in Sears Mexico. Revenues were $22.13 billion, compared with $21.94 billion reported a year ago.
 Allstate's third-quarter loss was $840.2 million, compared with income of $158.2 million a year earlier. The decrease in income was due primarily to record catastrophe losses, including $1.25 billion after-tax resulting from Hurricanes Andrew and Iniki. Revenues grew 2.1 percent to $5.07 billion from $4.96 billion last year.
 For the nine months, Allstate's loss was $343.8 million, compared with income of $511.6 million in 1991. Strong improvements in property liability results due to favorable trends in claim frequencies and severities, and improvements in expense ratios were more than offset by catastrophe losses from Hurricanes Andrew and Iniki. Income from life operations also decreased due to increased losses on the commercial mortgage portfolio, partially offset by gains on other investments. Allstate's revenues increased 3.7 percent to $15.09 billion from $14.55 billion in 1991.
 Allstate said it continues to record positive net cash inflows from its property-liability operations and maintains a sizable, highly liquid short-term investment position to comfortably accommodate the claims settlement obligations arising from Hurricane Andrew. Allstate does not anticipate selling long-term securities to meet these claim settlements.
 Dean Witter Financial Services Group income rose 24.1 percent in the third quarter to $114.3 million, compared with $92.1 million in 1991. Credit services contributed income of $69.2 million, compared with the $48.9 million reported in 1991. Securities income was $45.1 million, compared with $43.2 million a year ago. Group revenues were up 3.6 percent to $1.30 billion from $1.25 billion last year.
 For the nine months, Dean Witter reported income of $355.7 million, 36.4 percent above the $260.8 million in 1991. Credit services income was $205.3 million, up sharply from the $141.6 million reported last year. Included in credit services was a $32.1 million gain from the sale of a minority interest in SPS Transaction Services, Inc. in the first quarter. Income from the securities business was $150.4 million, a 26.2 percent increase over the $119.2 million reported last year. Group revenues were $3.89 billion, compared with $3.66 billion last year.
 Coldwell Banker Real Estate Group reported third-quarter income of $20.2 million, compared with $5.5 million last year, primarily reflecting the timing of property sales at Homart Development Co. Group revenues were up 1.8 percent to $455.8 million, compared with $447.9 million a year ago.
 For the nine months, Coldwell Banker reported income of $17.1 million, compared with income of $43.4 million a year earlier. Year-to-year comparisons reflect significantly improved operating results in the mortgage banking operations, which were more than offset by reduced property sales in 1992. Gains from the sale of property were $15.9 million after-tax in 1992, compared with $69.4 million a year ago. Group revenues totaled $1.30 billion, compared with $1.21 billion a year earlier.
 The previously announced transactions affecting the Dean Witter Financial Services Group, Allstate Insurance Group and the Coldwell Banker Residential Services businesses had no impact on reported results for the nine months ended Sept. 30, 1992. These proposed transactions include the primary initial public offering of up to 20 percent of Dean Witter and the subsequent spin-off of the remaining interest in Dean Witter to Sears shareholders, the primary initial public offering of up to 20 percent of Allstate and the sale of the Coldwell Banker Residential Services businesses.
 -0- 10/22/92
 /CONTACT: Jerry Bulak, Sears national manager, external communications, 312-875-8371/
 (S) CO: Sears, Roebuck and Co. ST: Illinois IN: REA SU: ERN


MA -- NY041 -- 3391 10/22/92 09:57 EDT
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Date:Oct 22, 1992
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