Sysco profit drops first time since '98

Houston TX-based Sysco Corp reported that its fiscal 2006 first quarter earnings dropped 7.7%, making this the first time the foodservice distributor didn't show a gain in profit since the second quarter of 1998.

For the fiscal first quarter that ended Oct 1, 2005, Sysco's earnings totaled $208.5 million, versus earnings of $225.9 million a year ago. Sales increased to $8 billion from $7.5 billion in the comparable period a year earlier.

The company attributed the loss of income to soaring fuel costs, higher pensions costs, and disruptions from Hurricanes Katrina and Rita.

Net earnings before the effect of an accounting change were $199.2 million compared with $225.9 million in the fiscal first quarter of 2005. After the accounting change's effect, net earnings totaled $208.5 million for the first quarter of fiscal 2006.