SEARS' LOSSES WILL BE AN INDUSTRY WORST

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, February 9, 1993                   TAG: 9302090080
SECTION: BUSINESS                    PAGE: A-5   EDITION: METRO 
SOURCE: Knight-Ridder/Tribune
DATELINE: CHICAGO                                LENGTH: Medium
SEARS' LOSSES WILL BE AN INDUSTRY WORST
When Sears, Roebuck and Co. reports its fourth-quarter and year-end earnings today, the numbers will show the largest loss ever in the U.S. retail industry.
Securities analysts who follow the company predict the full-year losses could reach $4 billion, or about $3.80 a share.
The report will reflect huge setbacks suffered by the company's Allstate Insurance Co. subsidiary because of Florida insurance claims from Hurricane Andrew, as well as the heavy costs of the recently announced restructuring of Sears' Merchandise Group and the demise of its Big Book catalog.
"They will be big losses," said Richard Nelson Jr., retail analyst for Chicago-based Duff & Phelps.
International Business Machines Corp. reported a $5 billion loss in January and General Motors Corp. expects an even larger loss. The chief executives of those companies - Robert Stempel of GM and John Akers of IBM - both have resigned.
While pressure is being placed on Sears to reduce the power of Edward A. Brennan, the company's chairman and chief executive, he is not likely to lose his job - perhaps because stockholders already are looking more at future profits than at 1992 losses.
"The big question will be for 1993," Nelson said, noting Sears will meet Thursday with securities industry analysts in New York.
Based on a recovery by Allstate, Nelson said, he expects the company this year to earn about $4.50 a share, its best performance in more than a decade.
But Tom Tashjian, chief analyst at New York's First Manhattan Corp., said he won't make an estimate of 1993 earnings until Sears issues its final report for 1992.
"With all their moving parts, I think it's better to wait," he said.
Ralph Whitworth, president of the Washington, D.C.-based United Shareholders Association, said a loss of $4 billion would fuel its efforts to force Brennan to give up one of his titles. United Shareholders has submitted for inclusion in Sears' proxy materials a proposal to split Brennan's job. The materials will be sent to shareholders before the annual meeting in April.

by Archana Subramaniam by CNB