RadioShack Announces Strong Earnings
For the second consecutive quarter, RadioShack announced surprisingly strong earnings, claiming net income of $42.5 million for the first quarter, compared with $8.4 million the previous year in the first quarter.
RadioShack’s profits have largely increased due to cost-cutting claimed through store closings and employee cuts. The strong quarter was also attributed by the company to the recapture of a federal telecommunications excise tax, as well as the absence of an $8.9 million charge last year that did not occur in 2007.
In February, RadioShack announced that profits had risen 65 percent in the fourth quarter of 2006, numbers largely attributed at the time to significant cost-cutting.