Tandy Corp indicates its 4th-period net could fall 66% as concern shifts focus
Article Abstract:
Tandy Corp reports that earnings for the 4th qtr ending Jun 30, 1991 might be less than half what the company reported last year - $56.9 million, or 72 cents a share - not counting special one-time charges. When everything is counted, Tandy's net income could be down as much as two-thirds from last year's $1.04 billion. Analysts blame slow sales and overall weakness in the computer industry. The company will record the special charges - $13 million, or 12 cents a share - for closing and converting stores, moving manufacturing operations and taking various other actions, aiming to cut expenses by $50 million annually. Tandy plans to shift emphasis away from private-label products and toward name-brand products. As part of that plan, the company will close some Radio Shack Computer Center stores and convert others to regular Radio Shacks or direct-sales offices. Tandy's stock was down $1.375 on Monday, Jun 24, 1991, closing at $27.75.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Compaq posts first net loss on big charge; deficit of $70 million linked to costs of trimming payroll, restructuring
Article Abstract:
Compaq posts a $70 million net loss for third qtr of FY 1992, as a result of the vendor's $175 million restructuring and layoff plans. Compaq will lay off approximately 1,400 workers globally or 12 percent of its workforce in a measure designed to make it more competitive against vendors of small and low-priced computers such as Dell Computer Corp. The 82 cents per share net loss is a decline from the $1.38 per share or $124 million net earning posted for the same period in FY 1991. Analysts suggest that Compaq's shift of focus from a competitor such as IBM to Dell Computer is an admission that the microcomputer industry has changed with the entry of small but aggressive vendors with lower overhead costs. Experts predict that Compaq will soon return to profitability, pointing out that without the restructuring cost, the vendor's net results would have been in line with industry expectations.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Comment about this article or add new information about this topic:
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