Giant's operating earnings rise 19% MARKETS

June 09, 1993|By Ted Shelsby | Ted Shelsby,Staff Writer

*TC Giant Food Inc. continued to show signs of recovery yesterday as it registered a 19 percent gain in operating earnings over last year's lackluster first-quarter results.

The Landover-based grocery chain said its earnings from continuing operations rose to $22.7 million in the 12 weeks that ended May 22, from $19.1 million during last year's comparable period.

The company's net income jumped to $26.6 million, from $19.1 million during last year's first quarter, on sales of $813.5 million, up 1.3 percent. Earnings per share were 45 cents in the most recent period, up from 32 cents.

The boost in net profits was helped along by an accounting change reflecting deferred taxes that added $3.9 million, or 7 cents a share, to first-quarter results.

Giant broke a streak of six consecutive periods of earnings declines in March when it reported a 49 percent gain in fourth-quarter profits.

"A 1.3 percent gain in sales with only one new store is a solid achievement," said Jeff Metzger, publisher of the Columbia-based trade journal Food World. "It's an indication that they are back on track and that they are doing a good job of protecting their market share in an increasingly competitive environment."

The grocery chain's income as a percentage of sales was 2.8 percent for the period just ending, up from 2.4 percent in the like part of last year, but down from 3.3 percent in the fourth-quarter of fiscal 1993.

Giant Food Inc.

Ticker .. .. ... ... .Yesterday's Symbol .. .. .. .. ..Cls... ... .Chg.

GFS/A .. .. .. .. . .26 1/2 .. .- 3/4

Period ended

May 22 .. .. ...12 weeks ... ... ...Year ago .. .... ..Chg.

Revenue .. .. ..$813,466 ... ... ...$803,020 .. ... ..+1.3%

Net Income . .. $26,608 .. ... ... .$19,102 .. ... ..+39.3%

Primary EPS .. .$0.45 .. ... ... ...$0.32 .. ... ... +40.6%

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