USA: Federated’s First Quarter Produces Increased Sales, Earnings

Federated Department Stores, Inc. today reported net income of $89 million for the first quarter of 2000, up 2.0 percent from net income of $87 million for the first 13 weeks of last year. Diluted earnings per share were 41 cents for the first quarter of 2000, compared to 40 cents for the first quarter of 1999. James M. Zimmerman, Federated's chairman and chief executive officer, said the company is pleased with its first quarter performance, which exceeded expectations. "We were especially happy with the 13 percent increase we experienced in operating income, which was driven by a strong performance in our department stores," Zimmerman said. Addressing the direct-to-customer segment, Zimmerman noted that this year's results reflect Fingerhut's inclusion in the full quarter compared to just one month following its March acquisition by Federated last year, as well as increased e-commerce spending.