Tandy, Facing Profit Drop, to Cut Costs by $50 Million

FT. WORTH —  Computer maker and retailer Tandy Corp., forecasting a sharp drop in earnings, said Monday that it will cut $50 million in annual costs and convert 200 Radio Shack Computer Centers into other retail stores.

Tandy, like others in the personal computer industry, has been hurt by the recent downturn in sales caused by the recession.

It will take a $13-million charge against earnings to pay for the cost-cutting measures and said profit in its fourth quarter, which ends June 31, could be “less than half” the level of the year-ago period.

The Ft. Worth-based company earned $56.9 million on revenue of $1.04 billion in last year’s fourth quarter. It earned $290.4 million on sales of $4.5 billion in all of 1990.

A spokesman said the 200 Radio Shack Computer Centers, which sold Tandy computers, peripherals and software, will be converted into Radio Shack electronics stores or sales offices that will focus on the small-business and educational computer markets.