AUSTRALIA'S WOOLWORTHS LOOKS TO IMPROVED PROFITS

  Woolworths Ltd &lt;WLWA.S> said policy,
  management and financial changes initiated during the 1986/87
  business year should cause profits to reach more acceptable
  levels in 1987/88 end-February 1.
      Net profit reported earlier fell 85.3 pct in the year ended
  February 1.
      Results for the first month of the new year were
  encouraging after a period of uncertain consumer confidence and
  difficult trading conditions, it said in a statement.
      The Big W discount store division and New South Wales
  supermarkets produced very disappointing results, it added.
      Woolworths earlier reported a fall in net profit to 9.27
  mln from 63.20 mln on sales of 5.47 billion against 4.83
  billion. Capital spending for the year was 119 mln dlrs against
  105 mln for the previous year with 50 new stores opened, but
  total sales were below target, Woolworths said.
      The company provided 20 mln dlrs against operating profit
  for the year to cover mark-downs on stock.
      Extraordinary items included a 53 mln dlr profit on the
  sale of properties and investments less a 28 mln provision for
  reorganising the Big W chain.
      Woolworths is unrelated to the U.S. Group F.W. Woolworth
  &lt;Z.N>. It has been the subject of takeover speculation since
  &lt;Industrial Equity Ltd> acquired a 20 pct stake last year.
      New Zealand's diversified investment group &lt;Rainbow Corp
  Ltd> bought Safeway Stores Inc's &lt;SA> 20 pct holding in
  Woolworths for 190 mln dlrs late last year.
      Safeway put its stake up for tender just in time to take
  advantage of changes in U.S. Tax laws effective from the end of
  December, informed sources said.
      Woolworths shares closed on Australian stock exchanges
  today at 3.50 dlrs, down five cents from Friday.
  

