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RadioShack Posts Higher Profits, Reduced Sales

RadioShack reported respectable fourth quarter and annual profits, despite sales that declined for both periods.

Len Roberts, RadioShack chairman and CEO, announced last week that the company enjoyed a fourth quarter profit of $109.1 million on sales of $1.5 billion, for the period that ended Dec. 31, 2002. This was a marked improvement over the $35.2 million posted during the same period last year.

However, sales for 2002 were down $18.1 million.

For the year, the national CE chain had a net income of $263.4 million on sales of $4.6 billion, up dramatically from the $166.7 million earned in 2001. Sales for 2002 were down $198.5 million from 2001.

Comparable store sales for the fourth quarter were up 2 percent, but fell 1 percent for the year.

“RadioShack’s fourth quarter earnings are the result of respectable same store sales in a challenging retail environment,” Roberts said.

The company also generated $375 million of free cash flow for the year, exceeding its guidance.

Looking ahead to 2003, Roberts said he is comfortable with the 2 percent to 3 percent sales growth now anticipated for the year and he estimated that first quarter earnings per diluted share will be in the $0.33 range.