Sysco reports fiscal 2011 second quarter results

Sysco Corporation (NYSE:SYY) has reported financial results for its 13-week fiscal second quarter ended January 1, 2011. Sales were $9.4 billion, an increase of 5.8% from $8.9 billion in the second quarter of fiscal 2010. Operating income was $437 million, a decrease of 5.5% compared with $462 million in the prior year’s fiscal second quarter.

For the first half of fiscal 2011, sales were $19.1 billion, an increase of 6.6% from $17.9 billion in the first half of fiscal 2010. Operating income was $943 million, a decrease of 1.7% versus $960 million in last year’s first half.

Bill DeLaney, Sysco’s president and chief executive officer, said, “Our financial results for the second quarter reflect the unfavorable impact of certain market conditions and operational challenges that we were unable to fully overcome in the near term. Specifically, accelerating and significant food cost inflation negatively impacted our customers’ purchasing budgets, contributed to increased gross margin pressure and meaningfully increased our selling expense. In addition, higher year-over-year pension and fuel costs also adversely impacted our ability to grow operating earnings over the prior year. Looking forward, we are highly focused on improving the execution of our business plan in the second half of our fiscal year and effectively implementing our strategic priorities over the long term.”

For more information, visit www.sysco.com.