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EARNINGS : Campeau Corp. Reports Losses of $190 Million

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From Times Staff and Wire Reports

Campeau Corp., an ailing retailing and real estate empire, reported on Tuesday that its losses more than doubled in the third quarter to $190 million despite a 5% gain in revenue to $2.56 billion. In the same quarter a year earlier, Campeau lost $83 million.

The Toronto-based company, the parent of Ralphs supermarkets in Southern California, has been struggling under the burden of heavy debt stemming largely from its $6.6-billion acquisition in May, 1988, of Federated Department Stores.

In September, Campeau was rescued from the brink of bankruptcy by a $250-million loan from Olympia & York Developments, and the company is trying to raise cash by selling its prestigious Bloomingdale’s department store chain. None of the company’s nine department store chains are in Southern California.

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Campeau’s operating profit for the quarter ended Oct. 31 totaled $255 million, off 4% from $265 million a year earlier. Results from Ralphs, which has been remodeling many of its stores, contributed somewhat to that decline. The Compton-based chain, as previously reported, posted an operating profit of $38 million, down from $41 million. Analysts say Ralphs has been sheltered from Campeau’s struggles, however, because it has a separate debt structure and its own credit line.

In an effort to sound a hopeful note, Campeau noted in a news release that its department stores traditionally make 50% of their yearlong profits from holiday shopping in the fourth quarter. Company spokesmen were not available for comment.

For the first nine months of the year, Campeau has lost $390 million on revenue of $7.04 billion. That compares to a loss of $24 million on revenue of $5.4 billion a year earlier.

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Operating profit for the nine months was $680 million, up 56% from $437 million. The nine- month gains in operating profit and revenue resulted from the Federated acquisition.

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