Lowe's reports 55 percent rise in fourth-quarter profit

WILKESBORO, N.C. - Lowe&#39;s Companies Inc., the nation&#39;s second-largest home improvement retailer, said Monday that its fourth-quarter profit rose 55 percent, fueled largely by the eagerness of American consumers to invest more money in their homes.<br> <br> The results beat Wall Street expectations, and its shares rose more than 3 percent in early trading Monday.<br> <br> Net earnings totaled $218.4 million, or 28 cents a share, for the quarter that ended Feb. 1, up from $140.8 million, or 18 cents a share, a year earlier.<br> <br> Lowe&#39;s said its fourth-quarter sales increased 15.6 percent to $5.3 billion from $4.54 billion a year ago.<br> <br> Analysts surveyed by Thomson Financial/First Call were expecting Lowe&#39;s would report earnings of 25 cents a share for the quarter.<br> <br> In morning trading on the New York Stock Exchange, Lowe&#39;s shares were up $1.49 to $47.54.<br> <br> Speaking to analysts on a conference call, chairman and chief executive Robert L. Tillman said Lowe&#39;s benefited from having stores in key markets that catered to the needs of consumers.<br> <br> &#34;Americans continue to invest in their most important asset - their homes,&#34; he said. &#34;Americans value sense of balance in their lives, and home is a retreat from everyday pressures.&#34;<br> <br> Lowe&#39;s, based in Wilkesboro and second only to Home Depot in home improvement, also benefited from the continued strength of the housing market. Mortgage rates remained below 7 percent in the quarter, which encouraged more would-be buyers to enter the market.<br> <br> Also, some homeowners refinanced their mortgages and freed up cash for home improvement projects, said Tillman.<br> <br> For the fiscal year, it earned $1.02 billion, or $1.30 a share, up from $809.9 million, or $1.05 a share, a year earlier. Annual sales rose to $22.1 billion from $18.8 billion in 2000.<br> <br> Lowe&#39;s opened 115 new stores during the year, including 14 relocations. Seven older, smaller stores were closed. As of Feb. 1, Lowe&#39;s operated 744 stores in 42 states.<br> <br> Looking ahead, Tillman said the company expects to open about 45 stores in the first quarter of 2002 and post earnings per share of 35 to 36 cents.<br> <br> Analysts surveyed by Thomson Financial/First Call were expecting earnings of 34 cents a share for the first quarter. <br>

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