Newspaper article THE JOURNAL RECORD

Sears to Restructure to Improve Earnings

Newspaper article THE JOURNAL RECORD

Sears to Restructure to Improve Earnings

Article excerpt

CHICAGO (AP) - Sears, Roebuck and Co., struggling to improve a lackluster earnings record, announced a restucturing Monday that includes the planned sale of the Sears Tower and other assets and $425 million in after-tax fourth-quarter charges.

The nation's largest retailer also said it would buy back up to 40 million, or about 10 percent of its outstanding shares, and divest its Coldwell Bankers commercial real estate subsidiary.

Sears was expected to take some action to improve the value of its stock after it announced last week its third-quarter profits fell 16 percent, the third consecutive period that the retailer's income has declined.

It blamed the results on flat merchandise sales and intense competition from other retailers. The Sears Merchandise Group has steadily lost market share in recent years as it tried with little success to update the 102-year-old company's stuffy image

Sears stock declined 87 1/2 cents to $42.75 a share in New York Stock Exchange trading Monday after the restructuring was announced. It closed at ?????

``We are acutely aware of investors' desires for improved returns and enhanced share value,'' said Edward Brennan, chairman and chief executive officer. ``Over the past year, we have thoroughly evaluated all strategic and financial alternatives available to the company.

``These alternatives have been reviewed not only with regard to shorter-term valuation objectives, but also giving consideration to the longer-term needs of our customers and $526,000 employees, the financial strength of our company and fulfillment of Sears' long-term strategic potential.''

The company gave no asking price for the Sears Tower, its corporate headquarters and the world's tallest building. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.