Lowe’s shares tumble

Lowe’s Cos. Inc., the world’s second-largest home improvement retailer behind Home Depot, reported a 28 percent rise in fourth-quarter profits but saw shares tumble Monday as its forecast for this quarter and this year disappointed Wall Street.

Lowe’s said it earned $407 million, or 51 cents a share, for the three months ended Jan. 30, up from $319 million, or 40 cents a share, a year ago.

Analyst Michael Baker at Deutsche Bank said a 7.3 percent improvement in Lowe’s stores open at least a year — a key retailing indicator — in the latest quarter may not have lived up to the hopes of some investors even though it outpaced the 4 percent rise a year earlier.

Lowe’s shares tumbled $1.71 per share, or 2.9 percent, to close at $56.67 on the New York Stock Exchange.

Economy

Real estate has boosted finances of consumers

The balance sheets of American households are generally in “good shape” as extra cash from a huge wave of home mortgage refinancing and decades-low interest rates helped consumers better manage their debt, Federal Reserve Chairman Alan Greenspan said Monday

Greenspan, in a speech to a credit union conference meeting in Washington, pointed out that U.S. households own more than $14 trillion in real estate assets — almost twice the amount they own in mutual funds and directly hold in stocks.

“Over the past two years, significant increases in the value of real estate assets have, for some households, mitigated stock market losses and supported consumption,” Greenspan said in his prepared remarks.

International

Citigroup targets South Korean bank

U.S. financial services giant Citigroup has agreed to buy KorAm Bank, South Korea’s sixth-largest lender, for up to $2.73 billion in what would be the first such takeover in South Korea by a foreign banking company.

The deal announced Monday also marked the largest foreign investment in South Korea’s fragile financial sector. It still must gain regulatory approval.

Analysts said the deal would enable Citigroup to expand its consumer banking business in South Korea. It also could boost KorAm’s image as Citigroup has a good reputation in South Korea with a local branch posting strong returns in the past several years.

Wall Street

Oneok earnings soar

Tulsa-based Oneok Inc. announced 2003 earnings of $2.13 per share, up from $1.30 per share in 2002.

The utility company, which has natural gas operations in Kansas, also reported fourth-quarter earnings of 65 cents per share, up from 30 cents per share.