Kmart Posts Modest 3rd-Quarter Profit

Kmart Corp. posted improved results for the second consecutive quarter, the first time that has happened in years and another positive sign for the struggling discounter. The nation’s second-largest retailer said it earned $9 million, or 2 cents a share, in the third quarter, a modest profit but better than the break-even results Wall Street had expected. The gain contrasts with a loss of $69 million, or 15 cents, during the year-ago period, when results were helped by a gain from the sale of Sports Authority. It was the second consecutive year-to-year improvement after 13 straight quarters of losses or lower-than-expected earnings. The Troy, Mich.-based company has been struggling to improve its performance for years, closing hundreds of stores, laying off thousands of workers and selling all but one of its U.S. subsidiaries. It shares dropped 75 cents to close at $10.50 on the New York Stock Exchange.