Department store stalwarts J.C. Penney Co., Nordstrom Inc. and Kohl's Inc. all reported steep drops in first-quarter profits as Americans snub apparel to focus on basic necessities at discounters in a challenging economy. The three chains predicted the softening sales environment would continue this year as consumers grapple with soaring food and fuel costs.

For J.C. Penney, net earnings fell to $120 million, or 54 cents per share, from $238 million, or $1.04 per share, a year ago. Sales fell 5 percent to $4.13 billion. Luxury retailer Nordstrom said net earnings fell to $119 million, or 54 cents per share, from $157 million, or 60 cents per share in the same three months last year. Revenue slipped 4 percent to $1.88 billion. Kohl's said it earned $153 million, or 49 cents per share, versus $209 million, or 64 cents per share, during the same period a year ago. Sales rose 1.5 percent to $3.6 billion.

J.C. Penney shares fell 2 cents to $46.30 in after-hours trading. During the regular session the shares rose $2.07. Kohl's shares fell 49 cents to $50 in after-hours trading. During the regular session, they rose 90 cents. Nordstrom shares fell 4 cents to $37.25 in after-hours trading. During regular trading they rose $1.15.

Associated Press

Marine Corps expands contract with Cubic

San Diego's Cubic Corp. said the Marine Corps has renewed and expanded a training and support contract with the company's Cubic Applications subsidiary. The potential value of the five-year training systems support contract is $166 million. The value of Cubic's current contract, which ends this month, was $97 million. Through the contract, Cubic provides computer-based simulation training and technology training for Marine Corps commanders and battle staffs at bases in California, Virginia, North Carolina, Arizona, Hawaii, Japan and Germany.

Etc.

Genoptix, a Carlsbad-based company providing specialized laboratory services to oncologists, reported a first-quarter profit of $5 million, or 29 cents per share, compared with income of $1.3 million a year earlier. The company, which had its initial public offering in November, held $84.7 million in cash and cash equivalents at the end of March.