RadioShack Corporation (Fort Worth, Texas, U.S.) reported net income of U.S. $8 million or $0.06 per diluted share for the quarter ended March 31, 2006, versus net income of $55 million or $0.34 per diluted share for the quarter ended March 31, 2005. The consumer electronics retailer said write-downs in connection with its turnaround plan related to fixed assets and inventory reduced its pre-tax income by about $10 million.
"Wireless sales, in particular, were below our expectations and helped contribute to overall financials that were disappointing,” said Claire Babrowski, president and acting CEO. “While we knew first quarter would be weak, the results are worse than we anticipated. We clearly have a lot more work to do to get this company back to levels of profitability, which we all expect.
"The first quarter results do nothing to change our belief in the turnaround plan announced early this year." Babrowski added. "We have made progress in implementing the plan, and we continue to be confident we are making the right moves that will benefit RadioShack significantly over time.”
First quarter 2006 comparable store sales were down 1 percent versus the prior year. Total sales in the first quarter of 2006 were up 3 percent to $1.16 billion, compared to total sales of $1.12 billion for the previous year.
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