K mart Corp.'s fourth-quarter profit plunged 95% from a year earlier, as the nation's second-largest retailer absorbed the cost of discontinued ventures, the company said Thursday.
Dayton Hudson Corp., ranked fourth, posted a 3.1% gain in fourth-quarter profit.
K mart, based in Troy, Mich., reported net income of $10.5 million in the 13 weeks ended Jan. 29, compared to $204.3 million in the 14 weeks ended Jan. 30, 1985.
Revenue for the quarter totaled $6.75 billion, down 1.8% from $6.88 billion in the year-ago quarter.
The company's decision to rid itself of a Mexican joint venture, Monterrey-based Gentor S.A.-Astra S.A., and a wholly owned subsidiary, Dallas-based K mart Insurance Services Inc., shaved $237.8 million from its fourth-quarter earnings.
Income from continuing retail operations totaled $248.3 million in the fourth quarter, up 23.4% from $201.2 million a year earlier, K mart said.
For the fiscal year, K mart had net income of $221.2 million, down 55.7% from $499.1 million a year earlier.
Sales totaled $22.42 billion, up 6.3% from $21.1 billion in the previous year.
Income from continuing retail operations totaled $471.2 million, down 5.5% from $498.7 million.
In the past two years, K mart has made acquisitions totaling about $900 million, Chairman Bernard M. Fauber said.
"As had been anticipated, during the first two years, interest and other acquisition expenses will exceed the profits produced by these newly acquired companies. After that, however, the companies' contribution to earnings should grow rapidly," Fauber said.
Dayton Hudson, based in Minneapolis, said its fourth-quarter net income came to $153.3 million, compared to $148.7 million a year ago.
Revenue rose 7.3% to $2.94 billion from $2.74 billion.
For the year, net income was $283.6 million, up 9% from $259.3 million.
Revenue for the year increased 10% to $8.8 billion from $8 billion reported for 1984.