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EARNINGS ROUNDUP

TIMES WIRE REPORTS

Starbucks Corp. said Wednesday that its fiscal second-quarter profit dropped 77% because of big restructuring charges related mainly to the closure of 123 U.S. cafes.

Seattle-based Starbucks said that, for the quarter ended March 29, its net income fell to $25 million, or 3 cents a share, from $108.7 million, or 15 cents a share a year earlier.

Excluding the charges, Starbucks earned 16 cents a share. Analysts polled by Thomson Reuters expected profit of 15 cents a share.

The 123 store closures during the quarter are part of a plan to shut underperforming stores and shave costs companywide. Since January 2008, the chain has announced a total of more than 900 store closures and said it planned to cut as many as 6,700 jobs.

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In all, 507 U.S. stores and 64 international stores have been closed so far.

The gourmet coffee retailer said quarterly revenue fell 8% to $2.33 billion. Analysts predicted revenue of $2.36 billion.

Starbucks shares fell 19 cents to $13.50 in after-hours trading after the earnings news. During regular trading Wednesday, shares rose 19 cents to close at $13.69.


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