PORTLAND, Oregon - Supervalu Inc. reported a loss for its third quarter on Tuesday, dragged down by the decrease in revenue and asset, tighter margins values and the cost of the closure of some stores.
The grocer cutting exercise based on poor performance prospects and its shares have plunged into trade.
The company, which operates Alberstons, Jewel-Osco and other supermarket chains, has declared a loss of $ 202 million, or 95 cents per share for the quarter. Compared to a net income of 109 million, or 51 cents per share, in the same quarter last year.
SUPERVALU has recorded a heavy 252 million in expenses for the quarter, primarily to reflect the narrowing of the brand value and other intangible assets. The charges also resumed store costs, leaving the employee and other items of closing. With the exception of charges, the company received 24 cents per share.
The results missed average analysts forecasts for earnings of 32 cents per share on $ 8.67 billion according to the card. Analysts generally exclude non-recurring items.
Income declined by 6% to $ 8.67 billion.
SUPERVALU CEO Craig Herkert said the results "are not indicative of earning capacity that you have to wait for our society" and society strives to change its trajectory.
SUPERVALU initiated a recovery plan there is more than a year - reorganization of its management, reduce costs, debt reduction and the closure of some stores. In recent months it has announced the sale of its chain of Bristol farms and its logistics and supply chain companies. He also noted lower prices and its Save-A-Lot stores to draw today price-sensitive buyers.
But have yet to see the benefit of these efforts. Shoppers keep spending below recession levels, and competition has intensified in the difficult economy. The company reported that some of the measures needed to improve promotions and prices were ineffective and reduce its tight margins.
SUPERVALU now expects a loss of $7.09 $7.19 per share for the year. To the exclusion of non-recurring items, it expects to earn $ 1.25 to $ 1.35 per share. Previously, he predicts a loss of $ 5.74 to $ 5.94 per share and adjusted earnings of $ 1.40 to $ 1.60 per share.
Analysts expected earnings of $1.43 per share for the year adjusted.
Business leaders committed to change, that they are keeping better followed by promotions and strict cost controls. But investors were not influenced.
SUPERVALU stock, which was one of the worst performers in the Standard & Poor 500 in 2010, plunged to about 12 percent by noon. Shares declined $ 1.07 to $7.52.
___
AP retail writer Michelle Chapman has contributed to this report from New York.
No comments:
Post a Comment