Federated Income Falls 38%
Including extraordinary item and restructuring charges, Federated's actual net income for its fiscal third quarter, which was the 13 weeks that ended Nov. 3, was $3 million. During the same period last year, the company lost $668 million in actual income with such charges included.
The charges in third-quarter 2000 resulted from the company's restructuring of its Fingerhut catalog division. This year's charges resulted from the closure of Federated's Stern's department stores and its acquisition of Liberty House Inc.
Federated's performance in the third quarter was affected by a sluggish economy and weak retail sales. James Zimmerman, president/CEO of Federated, Cincinnati, said he is hopeful sales will improve as the nation recovers from the Sept. 11 attacks.
The company restated its fourth-quarter projection of a 7 percent to 10 percent decline in sales. Federated first issued the projection when it revised its fourth-quarter outlook after Sept. 11.
Federated shares were up $2.19 to $37.02, a 6.29 percent increase, in trading on the New York Stock Exchange yesterday afternoon.