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EARNINGS

Sears' Profit Down Slightly in Quarter as Revenue Rises

February 05, 1987

Sears, Roebuck & Co. has reported a fourth-quarter profit of $543 million, down slightly from a year ago, despite higher revenue.

The company attributed the smaller profit to the elimination of investment tax credits, the costs of dismantling the domestic operations of the world trade unit, increased provision for uncollectible accounts and accounting changes.

For the final period, earnings totaled $543 million, down about 1.7% from the $552.3 million, earned during the fourth quarter of 1985. Revenue increased 7.5% to $12.97 billion from $12.07 billion.

For the full 12 months, Sears' earnings increased to $1.35 billion, a 3.8% rise from the $1.30 billion earned in 1985. Revenue increased 8.7% to $44.28 billion.

The company's merchandise group suffered from declining profits, with net income during the final period of $357.7 million, down nearly 7% from $384.5 million a year earlier.

However, the Allstate insurance group had a better quarter, earning $187.5 million, up 4.7% from $179.1 million during the final three months of 1985.

Revenue was $3.32 billion compared to $2.78 billion a year ago, an increase of 19%.

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