Albertson's first-quarter profit nosedives
Albertson’s Inc reported $56 million in first-quarter 2004 earnings from continuing operations, compared with $173 million in the same period a year earlier.
The Boise ID-based grocery chain said costs related to the recent Southern California grocery workers’ strike reduced first-quarter profit by 27 cents a share, but the firm persisted with its forecast for full-year profit.
Net income dropped to $36 million in the fiscal first-quarter ended April 29. Albertson’s earned $172 million a year ago.
The company reported total sales of $8.7 billion for the quarter versus 2003’s first-quarter sales of $8.9 billion. Albertson’s estimates that the Southern California labor dispute negatively impacted total sales by about $386 million in the first quarter.
Larry Johnston, chairman, chief executive officer, and president, said, “Our sales recovery is ahead of plan driven by the launch of dual branding and aggressive merchandising. In addition, since the end of the quarter we closed the acquisition of Shaw’s (supermarket chain), and the integration process is on schedule.”
