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HANNAFORD BROS. REPORTS INCREASED SALES AND EARNINGS FOR THE SECOND QUARTER AND FIRST HALF OF 1993

 SCARBOROUGH, Maine, July 22 /PRNewswire/ -- Hannaford Bros. Co. (NYSE: HRD), Northern New England's largest food retailer, reported today that its second quarter sales and other revenues of $517,974,000, had increased 1.1 percent over the $512,475,000 reported for the same quarter a year ago.
 During the first half of 1993, net sales and other revenues increased by 0.9 percent, from $999,244,000 last year to $1,008,539,000 this year. It should be noted that 1992 results include the sales from 34 Wellby Super Drug stores which were sold on May 27, 1992. Had the sales from these stores been excluded from 1992 results for the quarter and half-year, sales and other revenues would have increased 4.2 percent and 4.8 percent, respectively. Sales in both the quarter and half-year were also affected by holiday reporting changes. The Independence Day holiday fell in the second quarter this year and the third quarter last year, while the 1993 New Year's Day holiday fell in the fourth quarter of fiscal 1992 but was reflected in the first quarter last year.
 Consolidated net earnings for the second quarter were $14,486,000, which represents an increase of 15.2 percent over the $12,578,000 earned in the same quarter last year. Consolidated net earnings per common share were $.35 this year as compared to $.31 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 $.05 per share, is therefore reflected in the first half results. Consolidated net earnings for the half-year after the effect of the tax accounting change amounted to $26,355,000, an increase of 23.2 percent over the $21,390,000 reported last year. Consolidated net earnings per share were $.64 for the half, after the accounting change, as compared to $.53 last year.
 Consolidated net earnings for the half-year before the effect of the accounting change amounted to $24,255,000, an increase of 13.4 percent over the $21,390,000 reported last year. Consolidated net earnings per share for the half, before the accounting change, were $.59 as compared to $.53 last year.
 Hugh G. Farrington, president and chief executive officer, said, "We are very pleased with our earnings results in the continuing recessionary environment in the Northeast. Gross margins have remained strong, and our 1992 restructuring and other programs to reduce costs are yielding tangible results. A change in the Canadian exchange rate in mid-1992 continues to affect our border stores through lower sales. Our same store sales were down 1.7 percent in the second quarter and 2.0 percent for the half-year, affected not only by the difficult economy, but also by the effects of the lower sales from Canadian border stores." Farrington added, "Our expansion plans continue to be aggressive. Our net retail square footage will increase over 7 percent this year, and construction has commenced on a number of 1994 projects. We expect over 10 percent will be added to square footage in 1994."
 HANNAFORD BROS. CO.
 Consolidated Operating Results (Unaudited)
 In Thousands (except per share data)
 Three Months Ended
 July 3 June 27 Percent
 1993 1992 Increase/Decrease
 Sales and other revenues $517,974 $512,475 1.1
 Cost of sales 388,512 385,662 0.7
 Gross margin 129,462 126,813 2.1
 Selling, general and
 administrative expenses 100,520 101,172 (0.7)
 Operating profit 28,942 25,641 12.9
 Interest expense, net 4,849 5,046 (3.9)
 Earnings before income taxes 24,093 20,595 17.0
 Income taxes 9,607 8,017 19.8
 Net earnings 14,486 12,578 15.2
 Per share of common stock:
 Net earnings $.35 $.31 12.9
 Cash dividends $.085 $.075 13.3
 Weighted average number of
 common shares outstanding 41,044 40,473 ---
 Six Months Ended
 July 3 June 27 Percent
 1993 1992 Increase/Decrease
 Sales and other revenues $1,008,539 $999,244 0.9
 Cost of sales 757,543 751,150 0.9
 Gross margin 250,996 248,094 1.2
 Selling, general and
 administrative expenses 200,633 202,633 (1.0)
 Operating profit 50,363 45,461 10.8
 Interest expense, net 9,833 10,213 (3.7)
 Earnings before income taxes 40,530 35,248 15.0
 Income taxes 16,275 13,858 17.4
 Earnings before cumulative
 effect of change in
 accounting principle 24,255 21,390 13.4
 Cumulative effect to
 Jan. 3, 1993, of change
 in income tax accounting 2,100 --- ---
 Net earnings 26,355 21,390 23.2
 Per share of common stock:
 Earnings before cumulative
 effect of change in
 accounting principle $.59 $.53 11.3
 Cumulative effect to
 Jan. 3, 1993, of change
 in income tax accounting $.05 --- ---
 Net earnings $.64 $.53 20.8
 Cash dividends $.17 $.15 13.3
 Weighted average number of
 common shares outstanding 40,951 40,374 ---
 -0- 7/22/93
 /CONTACT: Charles H. Crockett, assistant secretary of Hannaford Bros., 207-883-2911/
 (HRD)


CO: Hannaford Bros. ST: Maine IN: REA SU: ERN

MP-LJ -- PH005 -- 4476 07/22/93 11:08 EDT
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Date:Jul 22, 1993
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