Hoffman Estates, Il, December 6, 2005--Sears Holdings said fiscal third-quarter profit slid as the costs of Kmart's combination with the Sears, Roebuck and Co., offset a sharp increase in sales.
The parent of department store Sears, Roebuck and Kmart discount outlets posted net income of $58 million, or $0.35 per share, down from $552 million, or $5.45 per share, in the year-ago quarter. Restructuring charges totaled $59 million during the period ended in October, including $53 million in severance payments, the cost of laying off 1,200 workers and a $6 million charge related to Kmart employee costs and office integration.
Kmart Holding Corp. acquired Sears, Roebuck in March to form Sears Holdings.
Revenue surged to $12.2 billion from $4.43 billion a year ago. The company attributed the increase to $8 billion in sales from Sears, offset by a $300 million, or roughly 6 percent, decline in Kmart revenue as the company closed a number of those stores.
The consensus estimate excluding items were at $0.28 per share.
