Tandy’s Quarterly Profits Rise
FORT WORTH, Texas (AP) _ Tandy Corp. on Wednesday said its profit rose 63 percent in the third quarter despite a 14 percent drop in sales, due in part to its closing of stores that drained profits from its Radio Shack chain.
Tandy said it earned $36.4 million, or 33 cents a share, in the three months ended Sept. 30, up from $22.3 million, or 17 cents a share in the year-ago quarter.
The profits matched Wall Street expectations. Tandy stock jumped 8.4 percent in afternoon trading on the New York Stock Exchange, rising $2.93 3/4 per share to $38.
Revenues dropped to $1.23 billion from $1.44 billion, reflecting the company’s closure of less profitable Computer City stores and its Incredible Universe stores. In addition, profits rose at its 6,900 Radio Shack stores, a company spokesman said.
For the first nine months, Tandy earned $90.7 million, or 79 cents per share, on $3.67 billion in revenue. That was up from $46.1 million, or 34 cents per share, on revenue of $4.23 billion a year ago.