Sears, Roebuck and Co. Thursday reported a 35.7 percent gain in first-quarter earnings, reflecting better performances from most of its
businesses and continued streamlining of its retailing operation.
The results included one-time gains totaling $86.6 million from the sale of minority interests in two businesses, which more than offset a $38.5 million restructuring charge in the retailing division.
Sears said it earned $321.8 million, or 89 cents a share, for the first three months of this year, up from $237.2 million, or 69 cents a share, a year earlier. Revenue rose 4.8 percent to $13.5 billion from $12.9 billion.
”The quarter reflected improved operating performance, the impact of several non-recurring transactions and the effect of ongoing cost reduction programs,” said Edward A. Brennan, Sears chairman and chief executive officer.
The Sears Merchandise Group, which runs the company`s stores and catalogs, had net income of $16.5 million, up from a loss of $14.1 million a year earlier.
That included an after-tax gain of $54.5 million from the sale of 25 percent of the company`s Sears Mexico subsidiary, which more than offset a $38.5 million after-tax restructuring charge related to severance costs for departing employees.
Sears has cut 43,150 jobs in its retailing operation since Brennan took over direct control of the unit in August 1990.
Retailing revenues rose 3.3 percent, Sears said.
