Giant reports lower earnings in 1st quarter

June 08, 1994|By a Sun Staff Writer

Supermarket operator Giant Food Inc. blamed a slower economy and higher expenses for a decline in earnings for the quarter that ended May 21.

Profit was $20.41 million, down from $22.67 million, not counting a one-time accounting change, in the same quarter last year.

Approximately $1.2 million of Giant's profit for the quarter came from the sale of its interest in its automated teller machine operation, the company said yesterday.

Revenue increased 2 percent, to $829.70 million. But sales in stores open for at least a year fell 0.4 percent. Those same-store sales were hurt in part, Giant said, by competition from its own new stores.

Without such "cannibalization," Giant said, same-store sales would have increased by 0.3 percent.

Besides soft sales, cost increases for payroll and union health and welfare benefits also hurt profits, Giant said. Giant is the dominant supermarket chain in Baltimore and Washington. It is starting an ambitious expansion in Delaware and possibly the Philadelphia area.

Giant Food Inc. .. .. .. ..Ticker. .. .. .. ..Yesterday's

.. .. .. .. .. .. .. .. ..Symbol. .. .. ..Cls. .. ..Chg.

.. .. .. .. .. .. .. .. ..GFS/A.. .. .. ..21 1/2 . .. .. .- 1/2

Period ended May 21.. ..1st qtr... ..Year ago.. .. Chg.

Revenue.. .. .. .. .. .$829,697 .. ..$813,466.. .. +2.0%

Net Income.. .. .. .. ..$20,414 .. ..$26,608*.. .. -23.3%

Primary EPS. .. .. .. .. .$0.34 .. .. .$0.45*.. .. -24.4%

* Includes a one-time gain of $3.93 million, or 7 cents per share, because of an accounting change for deferred taxes.

Figures in thousands (except per-share data)

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