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

DATE: THURSDAY, August 18, 1994                   TAG: 9408190023
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

EARNINGS

Lowe's Companies Inc., based in North Wilkesboro, N.C., reported second-quarter net income of $71.35 million, or 47 cents per share, up 59 percent from $44.96 million, or 31 cents per share, a year earlier. Sales were $1.64 billion, up 33 percent from $1.24 billion.

For the first half, net earnings were up 65 percent, to $123 million, or 79 cents per share, from $74 million, or 51 cents per share, a year earlier. Sales were up 36 percent, to $3.04 billion from $2.23 billion.

Roanoke Electric Steel Corp.

Roanoke Electric Steel Corp. reported earnings for the third quarter ended July 31 of $1.7 million, or 33 cents per share, a 50 percent increase from the $1.18 million, or 22 cents per share, earned for the same period last year.

Sales for the third quarter were $54.6 million, up 34 percent from sales of $40.9 million reported for the 1993 third quarter.

Earnings for the nine months ended July 31 were $7.3 million, or $1.38 per share, compared with earnings of $2.65 million, or 50 cents per share, reported for the same period last year. Earnings for the 1994 period were increased by a first-quarter adjustment of $3.09 million, or 58 cents per share, for the cumulative effect of a change in accounting principles for income taxes. Earnings from operations for the nine months were $4.24 million, or 80 cents per share, a 60 percent increase from the 50 cents per share earned from operations in the same period last year. Sales for the first nine months of 1994 were $151.9 million, a 29 percent increase from sales of $117.8 million reported last year.

Kmart Corp.

Troy, Mich.-based Kmart Corp. reported second-quarter net income of $94 million, or 20 cents per share, down 7.8 percent from $102 million, or 22 cents per share, a year earlier. Sales were $8.8 billion, up 4.5 percent from $8.44 billion a year earlier.

It was Kmart's sixth consecutive quarter of declining profits.

Net income for the six months totaled $112 million, or 24 cents per share, down 10.4 percent from $125 million, or 27 cents per share, a year earlier. Six-month results were affected by the cost of discontinued operations and extraordinary charges. Sales totalled $16.63 billion, up 5.4 percent from $15.79 billion a year earlier.

Kmart announced late Tuesday that it will sell majority stakes in three of its four specialty retail businesses. Analysts said initial public offerings, first in OfficeMax and later in Sports Authority and Borders/Walden Group, will likely be successful and strengthen Kmart's stock.

Virginia First Financial Corp.

Petersburg-based Virginia First Financial Corp. announced net earnings of $6.9 million, or $2.49 per share, for its fiscal year ended June 30, an increase of 32.9 percent from the $5.2 million, or $1.91 per share, for the previous fiscal year.

The net earnings in 1993 do not include the effect of the Financial Accounting Standards Board's Statement No. 109, "Accounting for Income Taxes," which was adopted in fiscal year 1993 and increased net earnings by $1.15 million, or 43 cents per share.

The net earnings for 1994 represented a 1.24 percent return on average total assets and an 18.19 percent return on average equity, while earnings for fiscal year 1993 represented a 1.00 percent return on average total assets and a 16.26 percent return on average equity.

Total assets were $583 million as of June 30.

J.C. Penney Co.

J.C. Penney Company Inc., based in Plano, Texas, reported that net income per share for the 13 weeks ended July 30 set a company record for the second quarter, increasing 21.4 percent to 51 cents, as compared with 42 cents in the same 1993 period, when there were more shares outstanding. Net income increased 17.4 percent to $132 million from $112 million in last year's period.

Retail sales for the quarter totaled $4.24 billion, up 7.1 percent from $3.963 million a year earlier.

First-half sales totaled $8.59 billion, up 8.4 percent from $7.93 billion a year earlier. Net income was $355 million, or $1.35 per share, up from $318 million, or $1.20 per share.

Wall Street rejoiced Wednesday at Kmart Corp.'s announcement that it will sell majority stakes in three of its four specialty retail businesses.

Trading was delayed at the start of Wednesday's session for 10 minutes, waiting for sellers to catch up with buyers. The Troy-based firm announced its intentions after the market closed Tuesday. Kmart's stock rose 37.5 cents to $18 on Wednesday.