China considers same tax rate for domestic, overseas firms (AFP)
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Lowe's posts higher-than-expected profit (Reuters)
2008.08.1825 minutes ago
ATLANTA (Reuters) - Retailer Lowe's Cos (LOW.N) reported a higher-than-expected second-quarter profit on Monday as consumers used their tax-rebate checks to take on spring projects.
Lowe's, the second-largest home-improvement chain behind Home Depot Inc (HD.N), forecast earnings for the third quarter below current Wall Street estimates but raised its full-year outlook slightly.
Net earnings for the quarter fell to $938 million, or 64 cents a share, from $1.02 billion, or 67 cents a share, a year earlier. Analysts on average forecast earnings of 56 cents a share, according to Reuters Estimates.
Total sales rose 2.4 percent to $14.5 billion, higher than the $14.1 billion analysts expected.
But sales at stores open at least a year, an important retail measure, fell 5.3 percent, hurt by weakness in big-ticket projects such as kitchen renovations.
Home-improvement retailers have posted weak results as the slumping U.S. housing market, tightening credit market and rising gasoline and food costs pressure consumers. The second quarter marked the fourth-straight quarterly profit decline for Lowe's.
Home Depot is due to report quarterly results on Tuesday.
Lowe's cited market share gains and benefits from U.S. tax rebate checks but said it felt a cautious sales forecast for the rest of the year was prudent.
Lowe's, based in Mooresville, North Carolina, said it now expects a full-year profit of $1.48 to $1.56 a share, compared with the $1.45 to $1.55 a share it forecast in May.
For the third quarter, Lowe's expects profit of 27 cents to 31 cents a share.
Analysts expected profit of 33 cents a share for the third quarter and $1.50 a share for the year, according to Reuters Estimates.
(Reporting by Karen Jacobs; Editing by Steve Orlofsky)
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