Costco likes tax break.(BUSINESS Today)

Home Textiles Today, October, 2005 by Hogsett, Don

ISSAQUAH, WASH. -- Getting a big lift from a lower tax rate and a smaller tax bill, fourth quarter profits at Costco Wholesale Corp. climbed 19.5 percent, to $354.7 million from $296.8 million last year. But roughly half of the lift to the bottom line came from the break in taxes, which slashed the retailer's bill 17.3 percent, or $144.2 million, yielding a cash savings of $30.1 million.

Excluding the tax relief, earnings rose at a more moderate pace of 9.4 percent, to $324.6 million. Operating profits at the warehouse giant inched up just 1 percent, to $484.6 million from $479.6 million. Providing a big lift to the bottom line, in addition to lower taxes, were two other non-operating items, a big cut in interest costs, and a jump in interest income...

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