MOORESVILLE, N.C., 2016-Nov-18 — /EPR Retail News/ — Lowe’s Companies, Inc. (NYSE: LOW) today (November 16, 2016) reported net earnings of $379 million and diluted earnings per share of $0.43 for the quarter ended October 28, 2016, which includes certain non-cash pre-tax charges of $462 million further described below. Excluding the impact of these charges, adjusted net earnings1 for the third quarter were $775 million, a 5.3 percent increase over net earnings from the same period a year ago, and adjusted diluted earnings per share1 increased 10.0 percent to $0.88 from diluted earnings per share of $0.80 in the third quarter of 2015.
For the nine months ended October 28, 2016, net earnings were $2.4 billionand diluted earnings per share were $2.73. Excluding the impact of the non-cash charges, as well as the net gain in the first half of the year on the settlement of a foreign currency hedge entered into in advance of the company’s acquisition of RONA, inc. (RONA), adjusted net earnings1 were $2.8 billion, an increase of 9.7 percent over net earnings from the same period a year ago, and adjusted diluted earnings per share1 increased 15.6 percent to $3.12 from diluted earnings per share of $2.70 in the same period a year ago.
The non-cash pre-tax charges referenced above consisted of the following:
- $290 million resulting from the wind down of Hydrox, a joint venture in which Lowe’s holds a one-third ownership interest. Woolworths, the other joint venture partner, claimed a unilateral termination of the joint venture agreement and initiated the wind down of Hydrox in August, 2016. Hydrox operates Masters Home Improvement stores and Home Timber and Hardware Group’s retail stores in Australia. Lowe’s will treat its claim for additional value under the joint venture agreement, above and beyond any amounts expected to be received through the wind down process, as a contingent asset and will recognize these amounts as they are realized. This matter is currently in arbitration;
- $96 million related to a write-off for projects that were canceled as part of the company’s ongoing review of strategic initiatives in an effort to focus on the critical projects that will drive desired outcomes; and
- $76 million related to goodwill and long-lived asset impairments associated with the company’s Orchard Supply Hardware operations as part of a strategic reassessment of this business during the third quarter.
SOURCE: Lowe’s Companies, Inc.