Electronics retailer RadioShack Corp. cut its earnings forecast for the second time in a month, citing slowing cell phone sales and a weaker-than-expected battery business.
The retailer, which had cut its profit outlook in February 2005, said it expects first-quarter earnings of U.S. $0.30 to $0.34 a share, down from its previous forecast of $0.39 to $0.41.
RadioShack also said it was not likely to meet the lowered 2005 earnings forecast it gave in February. It plans to update that guidance in its first quarter earnings release, scheduled for April 19, 2005.
On Feb. 17, RadioShack cut its full-year 2005 earnings to $2.34 to $2.40 a share, about $0.07 less than its previous forecast for a jump of as much as 21 percent over 2004. At the time, the company said adverse weather hurt shopping in key markets.
The company had also said that it was taking longer to reap benefits from investments in areas such as staff training. (Reuters)
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