KMART IMPROVES PROFITABILITY

TROY, Mich. -- Kmart Holding Corp. here said last week better controls enabled the company to report a net profit for the fourth quarter ended Jan. 28 -- its first profit since emerging from Chapter 11 last May 6.k year, Kmart reported net income of $248 million, compared with a loss of $1.8 billion for the prior year. Sales fell 23% to $17.1 billion, and same-store sales fell 9.5%.Kmart said its

TROY, Mich. -- Kmart Holding Corp. here said last week better controls enabled the company to report a net profit for the fourth quarter ended Jan. 28 -- its first profit since emerging from Chapter 11 last May 6.

k year, Kmart reported net income of $248 million, compared with a loss of $1.8 billion for the prior year. Sales fell 23% to $17.1 billion, and same-store sales fell 9.5%.

Kmart said its fiscal year covered only 39 weeks and excluded financial data from the predecessor company for the periods ended before May 1, 2003, in accordance with Fresh-Start accounting provisions.

"By giving careful thought to the processes of sourcing, logistics, pricing, inventory management and in-store presentation, we have significantly improved the profitability of our market basket," said Julian C. Day, president and chief executive officer.

Day also noted that Kmart reduced inventory levels by more than 25% to less than $3.3 billion.