Kmart Blames Bad Weather for Earnings Plunge

Kmart Corp. reported an 81% plunge in its first-quarter income Monday, blaming the blizzard in the Northeast and unfavorable conditions elsewhere for the downturn.

Kmart earned $23 million, or 5 cents a share, in the quarter ended April 28, down from $116 million, or 26 cents a share, in the corresponding 1992 quarter.

The earnings decline came despite a 9.2% increase in sales for the quarter, to $9.03 billion from $8.27 billion for the same 1992 period.

The decline included accounting changes totaling $17 million to pay for income taxes and retirement benefits and a $10-million, one-time charge to pay for the early retirement of debt.

Without those charges, profit would have dropped 57.1% to $50 million, or 11 cents a share.

“The profit shortfall for the period can be largely attributed to poor results in March,” when severe winter storms closed stores or kept shoppers at home, Chairman Joseph E. Antonini said.