Circuit City posts profit for second quarter

Tuesday, September 20th 2005, 9:10 am

By: News On 6

RICHMOND, Va. (AP) _ Circuit City Stores Inc., the nation's second biggest consumer electronics chain, unexpectedly posted a profit in the second quarter on strong television sales.

The retailer said Tuesday it earned $1.4 million, or 1 cent a share, in the quarter ended Aug. 31, compared to a loss of $11.9 million, or 6 cents per share, in the year-earlier period.

Analysts surveyed by Thomson Financial had expected the company to lose 3 cents a share in the quarter.

Sales rose almost 8 percent to $2.56 billion in the quarter from $2.38 billion in the year-earlier period.

W. Alan McCollough, Circuit City's chief executive officer, said the retailer posted strong sales in many categories, including portable digital audio and its online business. In its critical TV category, he said, the company ``continued to drive market share increases in both plasma and LCD televisions.''

Circuit City trails only Best Buy Co. among the nation's consumer electronics chains.

For the first six months of its fiscal year, Circuit City lost $11.8 million, or 6 cents a share. That compared to a loss of $17.9 million, or 9 cents a share, a year earlier. Sales in the first half rose about 7 percent to $4.79 billion from $4.47 billion.