Giant's earnings rebound from slump last year

September 01, 1993|By Michael Dresser | Michael Dresser,Staff Writer

Continuing to bounce back from last year's slump, Giant Food Inc. reported its third straight quarter of improved earnings yesterday, saying its profits climbed 22 percent from the same period last year.

The Landover-based grocery chain recorded earnings of $14.6 million, or 24 cents a share, compared with $12 million, or 20 cents a share, in the second quarter of 1992. Sales rose 2.2 percent, to $795.8 million.

The company said its pretax profit margin -- income before taxes expressed as a percentage of sales -- reached 3.3 percent, up from 2.5 percent last year.

The results were a far cry from the heady days of 1988-1991, when net income for the second quarter ranged from $20.3 million to $25.8 million. But David B. Sykes, Giant's senior vice president for finance, called this year's numbers "a good performance" in a difficult economy.

Mr. Sykes said the increase was not easy to achieve because of continued food price deflation. The company's gains were also partly offset by tax increases amounting to $1.6 million, which deducted an additional 3 cents a share from second-quarter earnings. Lower interest rates did not help Giant because it is not a significant borrower, Mr. Sykes said.

Giant Food Inc.

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

.. .. .. .. .. .. .. .. GFS/A .. .. .. .. .. 23 3/8 .. .. .. .. .. + 3/8

Period ended

Aug. 14 .. .. .. .. .. .. .. 2nd qtr. .. .. .. .. Year ago .. .. .. Chg.

Revenue .. .. .. .. .. .. .. $795,841 .. .. .. .. $778,586 .. .. .. +2.2%

Net Income .. .. .. .. .. .. $14,604 .. .. .. .. $11,959 .. .. .. .. +22.1% Primary EPS .. .. .. .. .. .. $0.24 .. .. .. .. .. $0.20 .. .. .. .. +20.0% .. .. .. .. .. .. .. .. .. 6 mos. .. .. .. .. .. Year ago .. .. .. .. Chg. Revenue .. .. .. .. .. .. $1,609,307.. .. .. .. .. $1,581,606 .. .. .. +1.7%

Net Income .. .. .. .. .. $63,060 .. .. .. .. .. $50,505 .. .. .. .. +24.6%

Primary EPS .. .. .. .. .. $0.62 .. .. .. .. .. $0.52 .. .. .. .. .. +19.0%

Figures in thousands (except per share data.)

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