RadioShack to Shut 35 Stores in Restructuring
RadioShack Corp. will close 35 unprofitable stores, sell its headquarters and quit selling car stereos and security systems to focus on higher-profit goods to boost earnings by at least 13% annually.
The No.3 U.S. electronics chain also said it will exit its money-losing commercial installation business and focus instead on installing electronics for residential customers.
RadioShack shares, which have lost 30% of their value this year, rose 47 cents to close at $30.36 on the NYSE.
The cost of the restructuring will reduce fourth-quarter net income by 50 cents a share.
Excluding the restructuring expenses, equal to about $124 million pretax, the company said it expects to earn 66 cents a share in its fourth quarter, matching estimates.
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