EX-99.1 3 c71492exv99w1.txt PRESS RELEASE Exhibit 99.1 [TRU-SERV LOGO] EARNINGS RELEASE For more information contact: Shelley Hughes TruServ Corporation (773) 695-5258 TRUSERV REPORTS JULY EARNINGS CO-OP REPORTS PROFIT FOR SEVENTH MONTH IN A ROW CHICAGO, AUG. 19, 2002 - TruServ Corporation reported today year-to-date net margin of $18.6 million versus a net loss of $13.7 million for the same period a year ago--a profit improvement of $32.3 million on year-to-date revenue of $1.3 billion versus $1.6 billion for the same period a year ago. Approximately $79.6 million of the year-to-date sales decline reflects the effect of the prior divestitures of the lumber business and the Canadian business. TruServ also reported net margin of $3.5 million for the month ended July 27, 2002 compared to a net loss of $2.3 million for the same period a year ago. The co-op reported revenue of $164.7 million for the month compared to $199.5 million for the same period a year ago. President and Chief Executive Officer Pamela Forbes Lieberman said, "Our streamlining and restructuring efforts are definitely making an impact. We have reduced our year-to-date labor and facility costs by approximately $20.5 million compared to the same time period last year." The co-op reported senior debt of $327.8 million at the end of July, down $89.0 million from the same period a year ago. "We are continuing to pay down debt at a rapid rate," said Forbes Lieberman. "In addition to our earnings, we are vigorously managing our working capital with very favorable results." TruServ, headquartered in Chicago, is one of the world's largest member-owned wholesale hardware cooperatives with sales of $2.6 billion in 2001. The TruServ cooperative includes approximately 6,800 independent retailer locations worldwide operating under the store identities of True Value, Grand Rental Station, Taylor Rental, Party Central, Home & Garden Showplace and Induserve Supply. Additional information on TruServ and its retail identities is available at www.truserv.com. This earnings release may contain forward-looking statements that involve risks and uncertainties. The following factors could cause results to differ materially from management expectations as projected in such forward-looking statements: seasonal variations, competition, risks of new business areas, the availability and cost of real estate and construction, and changes in federal or state legislation or regulations. Members are referred to the "Cautionary Note Regarding Forward-Looking Statements" in the company's most recent Form 10-K, which Note is incorporated into this news release by reference. ###