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New York • Family Dollar Stores Inc., the discount retailer at the center of a three-way takeover battle, reported a 66 percent decline in net income as the company struggles with slow sales and restructuring expenses.
Fourth-quarter net income fell to $34.5 million, or 30 cents a share, from $102.2 million, or 88 cents, the Matthews, N.C.-based chain said in a statement. Excluding some items, profit was 73 cents a share in the period, which ended Aug. 30. Analysts had projected 77 cents, the average of 23 estimates compiled by Bloomberg.
Family Dollar agreed to be acquired by Dollar Tree Inc. in July, prompting Dollar General Corp. to respond with a higher offer in an attempt to maintain its perch atop the industry. Family Dollar rejected that bid and a subsequent one, saying that such a deal may not get antitrust approval despite Dollar General's plan to divest 1,500 stores. Dollar General has responded by taking its bid of $80 a share directly to investors with a tender offer.
Family Dollar shares were little changed in late trading after the results were released. The stock had climbed 20 percent to $77.75 this year through the close of regular trading Thursday, helped by the bidding war.