By DANIEL YEE
Associated Press Writer
ATLANTA
The Home Depot Inc. reported a 26.8 percent drop in third-quarter profits Tuesday as the deteriorating housing market put a crimp on home renovations.
The nation´s largest home improvement store chain predicted a decline of as much as 11 percent in earnings per share from continuing operations compared with last year because of the persistent "softness in the housing market."
Home Depot said it earned $1.09 billion, or 60 cents a share, for the three months ending Oct. 28, compared with a profit of $1.49 billion, or 73 cents a share, for the same period a year ago.
Frank Blake, the Atlanta-based company´s chairman and CEO, said the company is trying to weather the housing market slump and looking for future opportunities.
"We are facing a tough environment as housing indicators continue to deteriorat! e. Our financial performance in the third quarter reflects these tough conditions," Blake said in a statement. "But we are making significant improvements in our business and we will continue to invest thoughtfully for the long-term health of the company."
The results matched Wall Street expectations, as analysts surveyed by Thomson Financial were expecting earnings of 60 cents a share.
Revenue in the quarter dropped 3.5 percent to $18.96 billion, compared with $19.65 billion the same period a year ago, and fell short of analyst expectations of $19.39 billion.
For the first nine months of the year, Home Depot said it earned $3.72 billion, or $1.94 a share, compared with a profit of $4.84 billion, or $2.32 a share, a 23 percent drop. Nine-month revenue fell 3.1 percent to $59.7 billion, compared with $61.62 billion recorded in the same period a year ago.
The fiscal 2007 earnings per share outlook reflects 52 weeks and does not inclu! de the impact of the 53rd week. Home Depot will have 53 weeks ! of opera ting results in fiscal 2007 and the final week will add about five cents to its earnings per share outlook for fiscal 2007.
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