EARNINGS : Record Profit Lifts Sears From Its Worst Year

Sears, Roebuck & Co. announced Tuesday that it vaulted from its worst year ever in 1992 to a record profit of $2.37 billion in 1993, a year in which the resurging retailer dropped its famous catalogue, closed stores and cut jobs.

The results, equal to $6.13 per share, contrast with a loss of $3.93 billion, or $10.72 per share, in 1992.

In 1993, Sears eliminated its unprofitable “Big Book” catalogue, closed 113 stores, cut 50,000 jobs, completed the divestiture of the Dean Witter brokerage and Coldwell Banker real estate businesses and revived its retail operation.

In the fourth quarter, Sears had net income of $544.6 million, or $1.39 per share, contrasted with a net loss of $1.8 billion, or $4.84 per share, in the fourth quarter of 1992.

The fourth-quarter 1992 results included a $1.7-billion restructuring charge, a $1.9-billion charge related to a change in accounting for retiree benefits and a $206.7-million charge to write down the value of commercial real estate holdings.

Revenue for the fourth quarter rose 8.1% to $14.7 billion, from $13.6 billion, Chicago-based Sears said. Revenue for the full year, excluding the discontinued retailing businesses, rose 6.5% to $50.8 billion, from $47.7 billion, it said.

The 1993 earnings include a gain of $635.1 million in the second quarter from the initial public offering of 19.9% of the Allstate Corp. insurance company and a $76.1-million favorable income tax adjustment recorded in the third quarter.

Excluding these items, 1993 income from continuing operations was $1.7 billion, or $4.36 per share.