Earnings briefs

Friday, Aug. 30, 2002 | 11:10 a.m.

Earnings soar nearly 50 percent

CHARLOTTE, N.C. -- Krispy Kreme Doughnuts said Thursday its second-quarter earnings soared nearly 50 percent as the chain moved into new markets and increased sales in existing stores.

The Winston-Salem-based doughnut retailer also raised its earnings outlook for the rest of the year and said it would open 64 stores this year, or two more than its previous forecast.

Krispy Kreme posted a quarterly profit of $8.9 million, or 15 cents a share.

That compared with $5.9 million, or 10 cents a share, in the same three months of 2001.

Company revenues rose 28 percent to $115 million, up from $89.5 million last year.

The revenues include company store sales, franchise operations, and revenues from its manufacturing and distribution arm.

Systemwide sales, including sales of company and franchise stores, rose 29.5 percent to $187 million from $144.3 million in the year-ago period.

Earnings match expectations

SAN JOSE, Calif. -- Hewlett Packard Co.'s third-quarter earnings matched Wall Street expectations but sales fell just short in the first financial report since the $19 billion merger with Compaq Computer Corp.

The Palo Alto, Calif.-based company said savings expected from the integration remain on track, with two-thirds of 15,000 planned job cuts to be completed by the end of fiscal 2002.

For the three months ended July 31, the company lost $2.03 billion, or 67 cents per share, compared to what would have been a loss of $116 million, or 4 cents a share, for the companies had they been together in the same period last year.

Excluding a $2.4 billion adjustment largely related to the merger, HP earned $420 million, or 14 cents per share, compared with $320 million, or 11 cents per share, by the companies a year ago.

Revenue was $16.5 billion, down about 11 percent from $18.6 billion reported by the companies a year ago.

Analysts were expecting a profit of 14 cents per share on sales of $16.7 billion, according to a survey by Thomson First Call.

Second-quarter profit posted

LITTLE ROCK, Ark. -- Dillard's Inc. swung to a profit for its fiscal second quarter despite flat sales, as the department-store chain expanded the presence of its higher-margin private brands and reined in costs.

For the quarter ended Aug. 3, the retailer Thursday reported net income of $6.7 million, or 8 cents a share, compared with a net loss of $18.6 million, or 22 cents a share, for the 2001 second quarter.

The latest results included an extraordinary charge of $5.8 million, or 7 cents a share, on early extinguishment of debt. Excluding that loss, Dillard's said it earned $12.5 million, or 15 cents a share.

Analysts surveyed by Thomson First Call had projected earnings, excluding items, of 14 cents a share.