HANDLEMAN WITH CARE

Prerecorded music distributor Handleman Co. said Tuesday its quarterly earnings rose 15 percent as the benefits of a two-year restructuring exceeded expectations.

Earnings for the fiscal fourth quarter, ended April 29, increased to $9.8 million from the previous year's $8.5 million, which excludes special charges. Earnings per share rose 30 percent, to 35 cents from 27 cents.

Last year's earnings excluded pre-tax restructuring-related charges of $3.5 million, and an adjustment of about $6 million for a tax benefit.

"A major factor driving the continuing improvement in operating results has been the successful execution of the company's repositioning program, which has exceeded our most optimistic expectations," Stephen Strome, Handleman President and CEO, said in a statement.

Net sales increased 9 percent, to $279.1 million from $256.3 million last year.

For the full fiscal year, net income rose to $38.6 million, or $1.30 a diluted share, from $25.3 million, or 80 cents a share, in the previous year. Net sales were $1.14 billion, a gain of 13 percent from $1.01 billion in fiscal 1999.