New Sears posts loss for quarter

The inaugural quarterly results from newly merged Sears Holdings Corp. didn’t impress investors, who sent its stock tumbling Tuesday after the nation’s No. 3 retailer posted a small first quarter loss amid still-sluggish sales at Kmart and Sears stores.

Sears Holdings, created through Kmart Holding Corp.’s March 24 acquisition of Sears, Roebuck and Co., reported a $9 million loss, or 7 cents a share, for the February-April period.

The results include a $90 million charge related to a change in how Sears accounts for certain inventory costs. Without the charge, the company reported a profit of $81 million, or 65 cents per share.

Sears shares closed at $141.50, down $13.41, or 8.7 percent, Tuesday on the Nasdaq Stock Market, still near the high end of a 52-week range of $51.80 to $158.90.

The company has a distribution center in Lawrence.

Airlines

United bags Denver baggage system

United Airlines is abandoning the automated baggage-handling system at Denver International Airport that became notorious for losing or tearing apart luggage.

After more than a decade of trouble with the equipment, the airline said Tuesday it would switch to a cheaper, more conventional manual system by the end of the year.

The airline, which is trying to emerge from bankruptcy protection, expects to save about $1 million a month in operating costs.

Utilities

Aquila disputes KCC staff report

Aquila Inc. reaffirmed its disagreement with a report this week suggesting that the utility would best serve its customers and shareholders by selling most of its holdings in Kansas.

A staff report to the Kansas Corporation Commission said the Kansas City, Mo.-based utility is in grave financial condition and could still go bankrupt. The report also said Aquila would not be able to get its debt up to investment grade by February 2006, as required by Kansas regulators.

In a written response, Aquila said that the commission should not rely on the report because it is “rife with errors, flawed assumptions and illogical conclusions” and did not take into account a current restructuring plan that includes the recent sale of some of its utilities.

In March, an Aquila senior vice president criticized portions of the same report as “not true” and “so far off” that it was “unbelievable.”