RadioShack profit climbs 18% on cost cuts

Fort Worth, Texas RadioShack Corp. said Monday that its second-quarter profit rose 18% as the company reduced operating expenses and the prior-year period was dragged down by a one-time charge.

The retailer earned $48.8 million, compared with $41.4 million a year earlier. The year-ago period included a $4.3 million one-time charge related to an amendment to its corporate headquarters lease.

Total operating expenses dropped to $357.1 million from $398.1 million.

Sales for the period ended June 30 slipped 3% to $965.7 million from $994.9 million. The results missed Wall Street's estimate of $977.9 million.

Same-store sales for company-run stores and kiosks fell 4%. RadioShack said the sales decline at its kiosks was mostly due to fewer Sprint and Sam's Club kiosks operating compared with a year ago. Its results were also hurt by fewer sales of wireless accessories, digital-to-analog converter boxes, GPS products, music players and digital cameras.