Federated Posts Loss

Federated Department Stores Inc. (Cincinnati) reported a $3 million loss for its third quarter ended Oct. 28, 2006.

Even excluding the costs and inventory valuation adjustments associated with the integration of its new acquisitions via May Department Stores Co. (St. Louis), the company said its third quarter earnings were well below those of a year ago and trailing analysts’ estimates.

“The May stores are proving to be a little more difficult to turn around than originally anticipated,” one analyst, Arun Daniel of ING Investment Management, told Reuters News Service. “I think the market was clearly anticipating a much faster pace than the current pace that is happening.”