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HANNAFORD REPORTS INCREASED SALES AND EARNINGS FOR THE THIRD QUARTER AND NINE MONTHS

 SCARBOROUGH, Maine, Oct. 21 /PRNewswire/ -- Hannaford Bros. Co. (NYSE: HRD), Northern New England's largest food retailer, today announced increased sales and earnings for the third quarter and nine months, which ended Oct. 2, 1993. For the third quarter, Hannaford reported sales and other revenues of $530,064,000, an increase of 0.7 percent over the $526,438,000 reported for the same period last year. For the nine-month period, sales and other revenues increased by 0.8 percent from $1,525,682,000 last year, to $1,538,603,000 this year. It should be noted that 1992 results for the nine-month period include the sales from 34 Wellby Super Drug Stores which were sold to Rite Aid Corporation on May 27, 1992. Had the sales from these stores been excluded from 1992 results for the nine-month period, sales and other revenues would have increased 3.4 percent for the three quarters. In addition, the Independence Day holiday fell in the second quarter this year and in the third quarter in 1992.
 Consolidated net earnings for the quarter amounted to $16,000,000, as compared to $14,432,000 for the same quarter in 1992, an increase of 10.9 percent. Consolidated net earnings per common share for the third quarter this year were 39 cents, as compared to 35 cents last year. During the first quarter of 1993, SFAS No. 109 - Accounting for Income Taxes was adopted, as required. The cumulative effect of this adjustment of $2.1 million, or 5 cents per share, is therefore reflected in the nine-month results. Consolidated net earnings for the three quarters after the effect of the tax accounting change amounted to $42,355,000, an increase of 18.2 percent over the $35,823,000 reported last year. Consolidated net earnings per share were $1.03 for the three quarters, after the accounting change, as compared to 88 cents last year.
 Consolidated net earnings for the three quarters before the effect of the accounting change amounted to $40,255,000, an increase of 12.4 percent over the $35,823,000 reported in 1992. Consolidated net earnings per common share for the nine-month period, before the accounting change, were 98 cents as compared to 88 cents last year.
 Hugh G. Farrington, president and chief executive officer, said, "Our third quarter results were quite good despite the continuing economic recession in the Northeast. Earnings in the third quarter were positively affected by our continuing control of expenses and a reduction in our 1993 LIFO expenses. Additional income tax expense of about 1 cent per share has been charged in the quarter for the retroactivity of the new Federal corporate income tax rates. Our sales were up only modestly, reflecting both the weak economy and the entry into our markets of many warehouse clubs and other alternative format stores. Same store sales were down 3.7 percent in the quarter and 3.0 percent for the nine-month period."
 Farrington added, "Although our earnings in the third quarter were very good, it should be noted that fourth quarter comparisons will be difficult this year since our 1992 fourth quarter contained 14 weeks of operations. We anticipate that our full year results for 1993 will be in line with analysts' current estimates."
 HANNAFORD BROTHERS COMPANY
 Consolidated Operating Results (Unaudited)
 Amounts in Thousands (except per share data)
 Three Months Ended
 Percent
 10/2/93 9/26/92 Increase/(Decrease)
 Net sales & other revenues $530,064 $526,438 0.7
 Cost of sales 396,939 394,832 0.5
 Gross Margin 133,125 131,606 1.2
 Selling, general &
 administrative expenses 100,831 102,640 (1.8)
 Operating Profit 32,294 28,966 11.5
 Interest Expense, net 4,841 5,105 (5.2)
 Earnings before income taxes 27,453 23,861 15.1
 Income taxes 11,453 9,429 21.5
 Net earnings $16,000 $14,432 10.9
 Per share of common stock:
 Net earnings $ .39 $ .35 11.4
 Cash dividends $ .085 $ .075 13.3
 Weighted average number of
 com. shares
 outstanding (000's) 41,121 40,602 ---
 HANNAFORD BROTHERS COMPANY
 Consolidated Operating Results (Unaudited)
 Amounts in Thousands (except per share data)
 Nine Months Ended
 Percent
 10/2/93 9/26/92 Increase/(Decrease)
 Sales & other revenues $1,538,603 $1,525,682 0.8
 Cost of sales 1,154,482 1,145,982 0.7
 Gross Margin 384,121 379,700 1.2
 Selling, general &
 administrative expenses 301,464 305,273 (1.2)
 Operating profit 82,657 74,427 11.1
 Interest expense, net 14,674 15,318 (4.2)
 Earnings before income taxes 67,983 59,109 15.0
 Income taxes 27,728 23,286 19.1
 Earnings before cumulative
 effect of change in acctng.
 principle 40,255 35,823 12.4
 Cumulative effect to
 Jan. 3, 1993 of change in
 income tax accounting 2,100 --- ---
 Net earnings $42,355 $35,823 18.2
 Per share of common stock:
 Earnings before cumulative
 effect of change in acctng.
 principle $.98 $.88 11.4
 Cumulative effect to
 Jan. 3, 1993 of change in
 income tax accounting .05 --- ---
 Net earnings $1.03 $.88 17.0
 Cash dividends $.255 $ .225 13.3
 Weighted average number of
 com. shares outstanding
 (000's) 41,008 40,450 ---
 /CONTACT: Charles H. Crockett, assistant secretary of Hannaford Brothers, 207-883-2911/
 (HRD)


CO: Hannaford Brothers Co. ST: Maine IN: REA FOD SU: ERN

DJ-DD -- NE016 -- 5308 10/21/93 14:01 EDT
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Date:Oct 21, 1993
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