SAFEWAY LOSES $696 MIL.Byline: Nicholas Grudin Staff Writer Strike-bound Safeway Inc. lost $696 million in the fourth quarter of 2003, in part the result of four months of strangling picket lines at Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, Vons and Pavilions stores, the company reported Thursday. National union leaders said the losses are proof of the strike's cogency and Safeway leadership's ``kamikaze kamikaze (kä'məkä`zē) [Jap.,=divine wind], the typhoon that destroyed Kublai Khan's fleet, foiling his invasion of Japan in 1281. strategy.'' But Wall Street responded with indifference as shares of the Pleasanton-based grocer rose 3 percent to close at $22.49. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. financial analysts, greater losses were anticipated, and Thursday's report will strengthen the bargaining position bargaining position n to be in a strong/weak bargaining position → estar/no estar en una posición de fuerza para negociar bargaining position n of Safeway, Kroger Co. and Albertsons as mediated negotiations with the unions continue this week. ``The strike is not hurting retailers' earnings as much as we feared,'' said Mark Husson, a vice president at Merrill Lynch in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . ``Investors understand that the position (Safeway) has taken is for the long-term benefit of the company and the shareholders,'' said Aubie Goldenberg, a partner in the Ernst & Young retail group. ``The company is in a pretty good position to continue and not give in.'' However, national leaders from United Food and Commercial Workers The United Food and Commercial Workers International Union is a labor union representing approximately 1.4 million workers in the United States and Canada in many industries, including agriculture, health care, meatpacking, poultry and food processing, manufacturing, textile and and AFL-CIO AFL-CIO: see American Federation of Labor and Congress of Industrial Organizations. AFL-CIO in full American Federation of Labor-Congress of Industrial Organizations U.S. - who predicted that Thursday's report would be a turning point in the strike - maintained that Safeway's endurance of big losses is ``destroying the company.'' ``These dismal results reinforce investor concerns that ... Steve Burd's confrontational labor strategy is leading the company deeper into turmoil,'' said Bill Patterson, director of the AFL-CIO office of investment. A total of $103 million in losses were directly attributed to the strike, according to Safeway Chief Executive Steve Burd, who spoke with investors on a conference call Thursday morning. The rest of the losses were attributed to two floundering Safeway-owned chains in Texas and Illinois. The overall losses reflect a decline of $1.57 per share for the 17 weeks that ended Jan. 3. During the same period last year, the company lost $1.05 billion, which equates to $2.37 per share. But Burd remained steadfast in his resolve to withstand UFCW UFCW United Food and Commercial Workers picketing and optimistic about the report, citing improved business outside of Southern California. ``Overall, we are pleased,'' Burd said. ``During the year we steadily improved overall same-store sales in nonstrike-affected areas.'' Burd added that the company's losses from the strike have been declining since it began Oct. 11, starting at $2.4 million a day and now falling below $2 million. Union leaders contend that the daily losses have leveled. ``There has been no significant increase in the number of consumers and no significant defections from the picket lines,'' said UFCW International spokesman Greg Denier de·ni·er 1 n. One that denies: a denier of harsh realities. denier Noun . ``They're looking at $2 million a day indefinitely.'' The earnings report was released as UFCW leaders and supermarket executives continued the latest session of federally mediated negotiations at a secret location. The two sides have been meeting since Wednesday for the first time in nearly two months, though union leaders were skeptical that the talks would be fruitful. Nicholas Grudin, (661) 257-5255 nicholas.grudin(at)dailynews.com |
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