Sodexho Marriott posts net income loss Merger-related costs figured in earnings for 22-week period

October 09, 1998|By Shanon D. Murray | Shanon D. Murray,SUN STAFF

Sodexho Marriott Services Inc., which formed in March, reported a net income loss of $16.9 million for the 22 weeks that ended Aug. 28.

Excluding $22 million in merger-related costs, Sodexho Marriott posted an operating profit of $5.1 million, or 8 cents per diluted share, for the period.

For the same period last year, the enterprises that now make up Sodexho Marriott posted a net loss of $2.2 million, or 4 cents per diluted share.

Bethesda-based Sodexho Marriott was formed seven months ago when Marriott International Inc. completed the spinoff of its lodging, senior living and distribution businesses to its stockholders.

The remaining food and facilities management services business merged with the North American operations of Sodexho Alliance S.A.

Sodexho Marriott then changed its fiscal year from a calendar year end to an August year end, resulting in an earnings period of 22 weeks.

For the 13 weeks that ended Aug. 28, the company reported a net income loss of $7.7 million, or 12 cents per diluted share.

For the same period last year, the enterprises that now comprise Sodexho Marriott posted a net loss of $7.2 million, or 12 cents per diluted share.

Mitchell Speiser, an analyst with Lehman Brothers in New York, said the company is poised "to do very solid profit growth in fiscal '99.

"The company has only been around for half the year, and all said, it has demonstrated a very solid performance," he said.

Sodexho Marriott is the nation's largest contract services firm with more than $4 billion in annual sales.

It provides housekeeping, landscaping, food, facilities management and other services to the corporate, education and health care markets.

Sodexho Marriott's shares closed yesterday at $28, down $2.125.

Pub Date: 10/09/98

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