Dollar General reports better fourth-quarter earnings

GOODLETTSVILLE, Tenn. - Discount retail chain Dollar General Corp. said its fourth-quarter earnings were better than the same period a year ago thanks in part to reduced transportation and distribution costs, as well as higher sales.<br> <br> The discount retailer posted earnings of $97.4 million, or 29 cents a share for the fourth quarter, which ended Feb. 1, compared with a loss of $32.2 million, or 10 cents a share, the same time a year ago.<br> <br> Analysts polled by Thomson Financial/First Call had predicted earnings of 23 cents a share.<br> <br> Earlier this year, Dollar General reduced its earnings from 1998 to 2000 by a higher-than-expected 30 cents a share after it incorrectly accounted for some leases and tax liabilities.<br> <br> Sales rose 10 percent to nearly $1.6 billion and 2001 sales were $5.3 billion, up from $4.5 billion for 2000, a 17-percent increase. Sales increased on the strength of 540 new stores and a same-store sales increase of 7.3 percent. Dollar General opened 602 new stores, relocated or remodeled 78 stores and closed 62 stores.<br> <br> Excluding restatement-related expenses of $28.4 million in 2001 and a litigation settlement expense of $162 million that was recognized in 2000, net income increased to $104 million from a profit of $66.8 million last year.<br> <br> Sales totaled $5.3 billion for 2001 compared with $4.5 billion for 2000, an increase of 17 percent.<br> <br> Dollar General, based in the Nashville suburb of Goodlettsville, operates 5,540 stores in 27 states.<br> <br> Shares of Dollar General fell 5 cents to close at $15.37 in trading on the New York Stock Exchange on Monday, but gained 95 cents in extended trading. <br> <br>