Family Dollar profit falls by a third

Discount retailer Family Dollar's quarterly profit fell by a third as the company resorted to discounts to clear inventory and competition intensified.

The company, which is under pressure from activist investor Carl Icahn to put itself up for sale, said net income fell to $81.1 million, or 71 cents per share, from $120.9 million, or $1.05 per share, a year earlier.

Net sales rose 3.3 percent to $2.66 billion in the third quarter ended May 31, from $2.57 billion a year earlier.

Same-store sales fell 1.8 percent, the third straight quarterly decline.

--By Reuters