Ruddick Corporation Reports Second Quarter Earnings.

Business Editors

CHARLOTTE, N.C.--(BUSINESS WIRE)--April 25, 2000

Ruddick Corporation (NYSE:RDK) today reported higher consolidated sales and earnings for the second fiscal quarter ended April 2, 2000.

In the second fiscal quarter, sales increased by 3% to $662.3 million from $645.6 million in the comparable quarter of fiscal 1999. Total sales for the six months to date grew by 2%, to $1.33 billion in fiscal 2000 as compared to $1.30 billion for the same period in 1999. Consolidated net income for the second quarter rose by 5% to $13.4 million, or $.29 per share, as compared to $12.7 million, or $.27 per share in fiscal 1999. For the six-month period in fiscal 2000, consolidated net income also increased by 5% to $26.7 million, or $.58 per share, from $25.4 million or $.54 per share for the previous year's six-month period. Higher sales and profitability were recorded at both American & Efird (A&E), the industrial thread subsidiary, and the Company's supermarket subsidiary, Harris Teeter.

The Company reported that Harris Teeter's sales increased by 1.7% to $573.8 million in the current second quarter, and by 2.4% to $1.16 billion year to date. Comparable store sales, after adjusting for the impact of Easter, remained essentially flat for both the quarter and year to date. The Company reported that sales at Harris Teeter were impacted by the continuation of the highly competitive supermarket environment in the Southeast. Higher sales early in the quarter due to the threat of bad weather were offset by the impact of somewhat lower customer demand later in the quarter. In addition, total sales for the eight new stores acquired last year from Kroger in the Greensboro/Winston-Salem, North Carolina market, were less than total sales for the 11 stores in western Virginia that were sold in 1999. The Company reiterated its view that the store trades with Kroger were strategically important and have the potential for higher sales in future periods due to superior market demographics. Thomas W. Dickson, President of Ruddick Corporation, stated that "Senior management at Harris Teeter is continuing to deploy targeted promotional activities to drive customer traffic while refocusing sales efforts throughout the remainder of the fiscal year."

Operating profit of $15.8 million in the second quarter of fiscal 2000 increased by 4% over the previous year's second quarter and for the first six months increased to $31.5 million, or 6% over the comparable period in the prior year. Operating margin on sales improved to 2.75% in the second quarter of 2000 as compared to 2.70% in fiscal 1999 and improved to 2.73% for the year to date in fiscal 2000 from 2.62% in fiscal 1999. "Even with the very competitive sales environment," stated Dickson, "we have shown steady improvement in operating profit margin."

During the quarter, Harris Teeter opened two new stores in its Atlanta, Georgia market for a total of 151 stores in operation at the end of the second quarter. Since quarter end, Harris Teeter has opened two more stores, another in Atlanta and one in Norfolk, Virginia, and expects to open four more stores in the second half of the year.

At American & Efird, Ruddick's thread manufacturing subsidiary, sales of $88.6 million in the 2000 fiscal second quarter were 9% above the $81.3 million reported in the comparable period in fiscal 1999. This increase was partially due to the timing of the customer holiday shut-downs which occurred in their entirety in the first quarter this year versus being spread over the first and second quarters last year. General business conditions worldwide also improved during the second quarter, with the exception of Europe, where the shifting of apparel sourcing and weakness in the denim market are continuing to have a negative impact. A&E's total sales of $170.7 million for the first six months of fiscal 2000 increased 2% from the prior-year period when sales were $167.5 million. A&E's foreign sales increased by 23% in the quarter and by 12% for the six months in comparison to the prior year periods. Sales outside the U.S. accounted for 32% of A&E's second quarter and total year-to-date sales. A&E continued to support its growth in Mexico with the addition of two more distribution centers there, bringing the total to eight facilities in Mexico. Following the second quarter, A&E announced that it had made an equity investment in its licensee in Sri Lanka, expanding its presence in the strategically important Indian subcontinent.

Despite the highly competitive environment worldwide, A&E was able to improve operating profitability due to a better mix of products sold, better running schedules in its manufacturing facilities which improved efficiencies and the 1999 consolidation of certain finishing and distribution operations. A&E's operating profit increased by 12% to $12.1 million for the quarter and by 7% to $23.7 million year to date over the comparable periods last year. In addition, the operating margin on sales improved for the second quarter, from 13.3% in fiscal 1999 to 13.6% in fiscal 2000, and for the six-month period, from 13.2% in the previous year to 13.9% in the current year. While management remains optimistic about the current sales environment, it continues to experience margin pressure caused by rising raw material costs and competitive pricing.

This news release may contain forward-looking statements that involve uncertainties. A discussion of various important factors that could cause results to differ materially from those expressed in such forward-looking statements is included in reports filed by the Company with the Securities and Exchange Commission.

Ruddick Corporation is a holding company which operates two subsidiaries: Harris Teeter, Inc., a regional chain of supermarkets in six southeastern states and American & Efird, Inc., a leading manufacturer and distributor of industrial sewing thread.

For more information on Ruddick Corporation, visit our web site at: http://www.ruddickcorp.com .

                   RUDDICK CORPORATION

              SUMMARY OF SALES AND EARNINGS
                       (Unaudited)
                     (In thousands)

                                Quarter Ended       Six Months Ended
                             April 2,   March 28,  April 2,    March 28,
                              2000       1999        2000         1999


Net Sales
  American & Efird         $88,559    $81,303    $170,746     $167,450
  Harris Teeter            573,760    564,336   1,157,030    1,130,334
    Total                  662,319    645,639   1,327,776    1,297,784
                           -------    -------   ---------    ---------
Gross Profit
  American & Efird          26,627     24,030     51,568        49,281
  Harris Teeter            161,482    151,102    324,847       304,062
                           -------    -------   ---------    ---------
    Total                  188,109    175,132    376,415       353,343
                           -------    -------   ---------    ---------
Operating Profit
  American & Efird          12,073     10,816     23,743        22,158
  Harris Teeter             15,781     15,213     31,535        29,651
                           -------     ------     ------        ------
    Total                   27,854     26,029     55,278        51,809
                           -------     ------     ------       -------

Other Costs and Deductions
  Interest expense, net      3,750      3,679      7,586         7,416
  Other administrative
   expense, net              1,812      1,867      3,269         3,559
  Minority interest            194         84        335           193
                             -----      -----      -----         -----
    Total                    5,756      5,630     11,190        11,168
                             -----      -----     ------        ------
Income before taxes         22,098     20,399     44,088        40,641
Taxes                        8,737      7,669     17,370        15,270
                            ------     ------     ------        ------
Net income                 $13,361    $12,730    $26,718       $25,371
                            ======    =======    =======       =======

Earnings Per Share - Basic    $.29       $.27       $.58          $.54
Weighted Average Number
 of Basic Shares
 Outstanding                46,283     46,560     46,337        46,576
Earnings Per Share -
 Diluted                      $.29       $.27       $.58          $.54
Weighted Average Number of
 Diluted Shares
 Outstanding                46,344     46,801     46,453        46,832


                          RUDDICK CORPORATION
                      CONSOLIDATED BALANCE SHEETS
                              (Unaudited)
                            (In thousands)

                                              April 2,       March 28,
                                                2000           1999
                                            --------------  ------------

ASSETS
Current assets
  Cash and temporary cash
   investments                               $15,876       $14,348
  Accounts receivable, net                    84,679        78,312
  Inventories                                239,305       223,438
  Other                                       33,900        38,768
                                           --------------  ------------
      Total current assets                   373,760       354,866
Property, net of accumulated
 depreciation                                549,742       519,541
Investments and other assets                  73,839        78,386
                                           --------------  ------------
      Total Assets                          $997,341      $952,793
                                           ==============  ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Notes payable                                  $14        $1,775
  Current portion of long-term debt            2,905           387
  Accounts payable and accrued expenses      212,450       208,615
  Income taxes payable                        11,877         8,469
                                           --------------  ------------
      Total current liabilities              227,246       219,246
Long-term debt                               220,755       219,767
Deferred income taxes and liabilities         86,557        82,243
Minority interest                              4,900         4,425
Shareholders' equity                         457,883       427,112
                                           --------------  ------------
      Total Liabilities and Equity          $997,341      $952,793
                                           ==============  ============

2nd Quarter Operating Statistics/a
April 2, 2000
(Dollars in millions)         CURRENT QUARTER         YEAR TO DATE
                           American &  Harris     American &    Harris
                             Efird     Teeter      Efird        Teeter
                           --------    -------    --------     -------

Earnings before interest,
 taxes, depreciation and
 amortization (EBITDA)       $16.7      $29.6      $32.7        $59.0
Depreciation and
 amortization                  4.8       13.9        9.3         27.6
Capital expenditures           4.8       21.5        8.4         42.7
Working capital
 increase (decrease)           3.6       (6.3)      (0.2)        23.5
Total assets                 293.0      640.8      239.0        640.8
Capital employed/b           214.7      424.9      214.7        424.9
Stores in operation           n/a         151       n/a           151

/a: Due to the activities of Ruddick's corporate headquarters, the operating statistics by subsidiary are not additive.

/b: Long-term debt including current portion, capital leases, minority interests and shareholders' equity.