SEARS' LOSS IS JUST SHY OF $4 BILLION

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

DATE: WEDNESDAY, February 10, 1993                   TAG: 9302100052
SECTION: BUSINESS                    PAGE: B5   EDITION: METRO 
SOURCE: Associated Press
DATELINE: CHICAGO                                LENGTH: Medium
SEARS' LOSS IS JUST SHY OF $4 BILLION
Sears, Roebuck and Co. reported a $3.93 billion loss last year, the worst performance in its history. Its retail sales barely improved and Hurricane Andrew walloped its insurance business.
The loss reported Tuesday was the fourth-largest in U.S. corporate history, though at least two other publicly held companies are expected to show worse 1992 results because of changes in how they must account for retiree benefits. Sears' loss reflected a $1.9 billion provision for that rules change.
The company also had a $1.7 billion charge to cover the costs of its latest retail restructuring, including the closing of 113 stores and its big catalog operation. Sears estimates it will cut 50,000 jobs and save about $300 million a year. Roanoke's telecatalog center will be among the casualties.
The 1992 losses also reflected lackluster operating results in retailing - sales edged up 1.7 percent last year - and in the Allstate insurance business, hit by a staggering $1.65 billion in claims from the hurricane that slammed into Florida in August.
Investors had anticipated the bad news, so Sears stock was little changed, closing at $49.37 1/2, down 12 1/2 cents a share on the New York Stock Exchange.
Chairman Edward Brennan called 1992 Sears' toughest year but said the company had turned the corner with its restructuring, announced last month.
Retail industry analysts were encouraged by the latest cuts, but said the company must further reduce costs and increase merchandise sales. Joseph Ronning of Brown Brothers Harriman Inc. said Sears must announce additional cuts Thursday, when Brennan and other executives meet analysts in New York.
Sears already has eliminated more than 48,000 positions in the merchandise division since 1990. The company is trying to regain market share lost to discounters and specialty merchants.
But analysts were encouraged by the decision to scrap the Sears catalog. "What you're seeing is a firm commitment on the part of the company to revitalize what has been a laggard retailer," Ronning said.
The company's 1992 loss totaled $3.93 billion, exceeded only by IBM's 1992 loss of $4.97 billion, General Motors' 1991 loss of $4.45 billion and Texaco's 1987 loss of $4.41 billion. However, as they make required accounting changes, GM is expected to announce a loss of more than $23 billion and Ford of more than $7 billion for 1992.
Sears also increased by $300 million its estimate of claims paid by its Allstate Insurance Group to Hurricane Andrew victims. Allstate lost $825.2 million, compared with a 1991 profit of $722.5 million.
Annual results were helped by first-quarter gains totaling $86.6 million from the sale of minority interests in SPS Transaction Services Inc. and Sears Mexico.

by Archana Subramaniam by CNB