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SUPERVALU REPORTS RECORD FIRST QUARTER RESULTS; ANNOUNCES DIVIDEND INCREASE

 MINNEAPOLIS, June 29 /PRNewswire/ -- SUPERVALU INC. (NYSE: SVU) today at its annual meeting reported record sales and earnings for its first quarter ended June 19, 1993. Sales for the 16-week quarter were $4.9 billion compared with $3.3 billion for the year ago period, up 48 percent. Net earnings increased 12 percent to $51.1 million from $45.6 million and earnings per share were $.71 compared with $.64.
 Michael Wright, SUPERVALU chairman, president and CEO, told stockholders at the company's annual meeting that he was "very pleased with the quarter's results despite a significant decline in the earnings contribution from ShopKo, which was reflective of the weak retail environment experienced around the nation." Wright added that "the integration of Wetterau is progressing well and added to the quarter's results."
 During the quarter the company sold virtually all of its stake in Independent Holdings Limited (IHL) pursuant to an offer from the largest wholesaler in Australia. The transaction generated a pre-tax gain of $10.8 million. "The sale of our IHL holdings resulted from an above- market offer for our position and the conclusion we reached that we could not effect a consolidation of the wholesaling industry in Australia through our IHL holdings," said Wright. "This in no way diminishes our desire to increase our international investment activities." Also during the quarter, the company incurred write-offs of $11.1 million related to the previous acquisitions of retail stores from wholesale customers.
 Sales in the company's food distribution segment increased 47 percent to $4.4 billion. However, sales would have been even with the prior year without the Wetterau acquisition. The company noted that the January 1993 sale of its Salem division reduced by 2 percent its year-to-year sales comparisons. Operating profit contribution for the period increased 40 percent due primarily to the Wetterau acquisition.
 Sales in the company's retail food segment were 63 percent higher than last year increasing to $1.1 billion. The increase was due entirely to the Wetterau acquisition and new stores opened during the last four quarters; same-store sales declined 2 percent during the quarter. Operating earnings for the quarter increased 24 percent due to the Wetterau acquisition. These results reflect a reduced contribution from Cub Foods arising from three new stores that opened during the final quarter of last year and one which opened during this year's first quarter; and a decline in Twin Valu performance. At quarter end, the company had 247 corporately operated stores, principally under the Cub Foods, Shop 'n Save, Laneco, Save-A-Lot and Scott's Foods names. Max Club, the company's new warehouse club format, is expected to open its first unit this summer in Yuma, Ariz., and a second unit also in Arizona is expected to open later this fiscal year.
 The board of directors approved a 13 percent increase in the company's annual dividend to $.88 per share, the 22nd consecutive annual increase. The new dividend will be payable on Sept. 15, 1993, to stockholders of record on Sept. 1, 1993.
 In other business conducted at the company's annual meeting, four directors were elected: Edwin C. Gage, chairman and CEO of GAGE Marketing Group, LLC; Garnett L. Keith, Jr., vice chairman and chief investment officer of The Prudential Insurance Company of America; Carole St. Mark, president of Pitney Bowes Logistics Systems and Business Services, a division of Pitney Bowes; and Ted C. Wetterau, vice chairman of the board of the company since 1992, and chairman and CEO of Wetterau Incorporated.
 SUPERVALU INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF EARNINGS
 (In thousands, except per share data)
 Year-to-Date (16 weeks) Ended
 6/19/93 6/20/92
 Net sales $4,875,784 $3,284,254
 Costs and expenses:
 Cost of sales 4,457,422 3,025,638
 Selling and administrative expenses 307,143 178,953
 Amortization of goodwill 3,620 302
 Interest
 Interest expense 38,371 19,976
 Interest income 9,074 7,577
 Interest expense, net 29,297 12,399
 Total costs and expenses 4,797,482 3,217,292
 Earnings before equity in earnings of
 ShopKo and income taxes 78,302 66,962
 Equity in earnings of ShopKo 2,633 5,036
 Earnings before income taxes 80,935 71,998
 Provision for income taxes 29,851 26,367
 Net earnings $51,084 $45,631
 Net earnings per common share $.71 $.64
 Weighted average number of common
 shares outstanding 71,583 71,575
 Dividends declared per common share $0.195 $0.180
 Supplemental information:
 After-tax LIFO income $2,734 $2,753
 SUPERVALU INC. AND SUBSIDIARIES
 COMPOSITION OF NET SALES AND EARNINGS
 (In thousands, except percent data)
 (The following table sets forth the composition of the company's net
 sales and earnings.)
 First Quarter (16 weeks) Ended
 6/19/93 6/20/93
 Net sales
 Food distribution $4,442,827 $3,019,096
 percent 91.1 92.0
 Retail food $1,057,943 $648,548
 percent 21.7 19.7
 Sales eliminations $(624,986) $(383,390)
 percent (12.8) (11.7)
 Total net sales $4,875,784 $3,284,254
 percent 100.0 100.0
 Earnings
 Food distribution $108,284 $77,091
 percent 92.7 91.8
 Retail food $8,522 $6,888
 percent 7.3 8.2
 Total operating earnings $116,806 $83,979
 percent 100.0 100.0
 Interest income $9,074 $7,577
 Interest expense (38,371) (19,976)
 General corporate expenses (9,207) (4,618)
 Earnings before equity in earnings
 of ShopKo and income taxes 78,302 66,962
 Equity in earnings of ShopKo 2,633 5,036
 Provision for income taxes (29,851) (26,367)
 Net earnings $51,084 $45,631
 Pretax LIFO income $4,467 $4,498
 -0- 6/29/93
 /CONTACT: Jeff Girard, 612-828-4028, or Rita Simmer, 612-828-4429, both of SUPERVALU/
 (SVU)


CO: SUPERVALU INC. ST: Minnesota IN: REA SU: ERN

KH -- MN002 -- 6651 06/29/93 11:16 EDT
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Date:Jun 29, 1993
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