1. Archive


KMART LOSSES RISE: The Troy, Mich. retailer, operating in bankruptcy since Jan. 22, said losses increased in June to $137-million as sales declined. Included in the loss was $12-million in restructuring costs. Sales for the four-week period ended June 26 were $2.3-billion. Comparable-store sales for the five-week period ended July 3 were 8.7 percent lower than the same period last year, excluding the 283 stores the company has closed. A monetary figure was not given for five-week sales. In May, Kmart reported a loss of $96-million and an 11.4 percent drop in comparable-store sales.

3COM CHANGES ITS REPORTING: 3Com Corp. said Monday it will no longer report financial results on a pro-forma basis, which excludes certain costs, following recent criticism over its accounting for the last quarter. The Santa Clara, Calif., network-equipment maker will only report results based on generally accepted accounting principles, or GAAP, beginning with the quarter ending Aug. 31, chief executive Bruce Claflin said.

MERRILL NAMES NEW CHIEF: Stan O'Neal was officially tapped to become the next chairman and chief executive of Merrill Lynch & Co., the company said Monday. O'Neal is president and chief operating officer. He will become CEO Dec. 2 and assume the title of chairman April 28. Merrill Lynch's current chairman and CEO, David Komansky, will retire April 28. The move was expected, but is slightly ahead of schedule. Komansky had said he would retire in 2004. O'Neal will be the first African American to head a major investment bank.

BOMBARDIER GETS ORDER: Bombardier Inc., the third-biggest commercial aircraft maker, won a $73.2-million order for three regional aircraft from Delta Connection carriers, Atlantic Southeast Airlines and Comair. The planemaker will deliver the planes by September 2003, Bombardier said in a statement.

TREASURY AUCTION: The U.S. Treasury sold $16-billion in three-month bills in its weekly auction at a discount rate of 1.66 percent, down from 1.68 percent the previous week. The Treasury also sold $16-billion in six-month bills at a rate of 1.675 percent, the same as the previous week.


American Express Co.

The nation's fourth-largest credit-card issuer said earnings more than tripled in the quarter ended June 30 in part due to reduced costs following the elimination of more than 14,500 jobs. The lower costs offset the earlier announced writeoff of $50-million in WorldCom Inc. debt.

2nd Qtr Year Ago

Revenue $5.7-billion $4.9-billion

Net Income $683-million $178-million

Per Share 51 cents 13 cents

3M Co.

The St. Paul, Minn. manufacturer said earnings more than doubled for the quarter ended June 30, after an increase in sales overseas and eliminating 6,500 jobs.

2nd Qtr Year Ago

Revenue $4.16-billion $4.07-billion

Net Income $466-million $202-million

Per Share $1.18 50 cents

AMC Entertainment Inc.

For the first quarter of 2003, ended June 27, the Kansas City, Mo. theater operator reported continued losses, despite a 49 percent rise in revenues. AMC, which owns 250 theaters with 3,553 screens, recently acquired General Cinema and Gulf States Theatres.

1st Qtr2003 Year Ago

Revenue $461.6-mil $309.8-mil

Net Income $10.3-mil $14.3-mil

Per Share (28 cents) (61 cents)

Checkers Drive-In Restaurants Inc.

The Tampa burger chain said earnings rose 243 percent in the quarter ended June 17, thanks to a 5.9 percent increase in gross margin and a higher ratio of company-owned stores to franchised ones. The improvement came despite a 4.3 percent drop in same-store sales. Chief Executive Dan Dorsch said recent debt paydowns will enable its Checkers and Rally's chains to resume expansion, beginning with 20 new company-owned restaurants.

2nd Qtr Year Ago

Revenue $42.7-million $37.2-million

Net Income $2.7-million $776,000

Per Share 19 cents 7 cents

Tupperware Corp.

Tupperware Corp., maker and direct seller of plastic storage containers, said second-quarter profit rose 16 percent because of asset sales and higher revenue in North America and Asia. Sales increased as the company sold more products such as $49 water-filter pitchers and $16 ice cream scoops. In Europe, the company's largest market, sales declined before adjusting for the rise in the euro. CEO Rick Goings has increased spending on incentives in Europe to motivate his workforce and recruit new representatives.

2nd Qtr Year Ago

Revenue $286.1-mil $285.4-mil

Net Income $32-mil $27.7-mil

Per Share 54 cents 47 cents

_ Compiled from Times staff, wire and Bloomberg News reports.