Printer Friendly


 HOUSTON, Oct. 20 /PRNewswire/ -- SYSCO Corporation (NYSE: SYY) today reported results for the first quarter of fiscal year 1994 which ended Oct. 2, 1993.
 Sales for the quarter rose 12 percent to $2.7 billion, compared to $2.4 billion in the first quarter of 1993. Net income was $48.1 million, or $0.26 per share, 7 percent greater than the $44.9 million, or $0.24 per share, earned last year. Net earnings were reduced by $4.9 million, or almost $0.03 per share, as a result of recently enacted tax legislation which was retroactive to prior reporting periods. Excluding this charge, the effective tax rate for fiscal 1994 is expected to approximate 40 percent.
 Commenting on the company's performance John F. Woodhouse, chairman and chief executive officer of SYSCO, said, "It is gratifying to note the strong operating earnings momentum created in the first half of the calendar year was sustained through the recently completed quarter. Pretax earnings increased 19.4 percent over the prior year's first fiscal quarter -- reflecting SYSCO's ability to leverage its sales growth effectively. Real sales, after adjusting for acquisitions and modest food products inflation of 1.4 percent, grew by 7.6 percent."
 During the quarter, the company's board of directors approved construction of a 157,000 square-foot warehouse distribution center in Rocky Hill (Hartford), Conn. This venture will market and distribute a full line of foodservice products to customers located in the southern New England area. Many of these are currently served from the Hallsmith-Sysco Food Services operation located in eastern Massachusetts. The new facility, which is anticipated to be fully operational in approximately one year, will enable SYSCO to provide more efficient and timely service to current and future customers in this major food service market.
 Mr. Woodhouse concluded, "We are encouraged by the company's ongoing ability to provide our customers with products and services of sufficient value to allow SYSCO to grow profitably at a rate significantly greater than that of the overall industry. While the impact of the new tax legislation and proposed healthcare reform on our industry is of concern, overall we remain optimistic about SYSCO's prospects for the balance of fiscal 1994."
 The comparative financial data for the first quarter of fiscal years 1994 and 1993 are summarized below.
 Financial Highlights
 (in 000s except per share amounts)
 Periods 13 Weeks
 ended Oct. 2, 1993 Sept. 26, 1992
 Sales $2,709,874 $2,415,827
 Cost of sales 2,224,155 1,987,820
 Operating expenses 389,249 345,632
 Interest expense 9,602 9,608
 Other income, net (959) (773)
 Total costs and
 expenses 2,622,047 2,342,287
 Earnings before
 income taxes 87,827 73,540
 Income taxes 39,767 28,681
 Net earnings $48,060 $44,859
 Earnings per share (a) $0.26 $0.24
 (a) Based on 184,921,789 average shares outstanding for the period ended Oct. 2, 1993 and 185,866,774 for the period ended Sept. 26, 1992.
 SYSCO, listed on the New York Stock Exchange, is the nation's largest foodservice marketing and distribution organization. The company provides its products and services to approximately 245,000 customers located across the United States and western Canada. The SYSCO distribution network currently covers virtually the entire continental United States, including all of its 150 largest cities.
 -0- 10/20/93
 /CONTACT: E. James Lowrey, executive vice president-finance and administration of SYSCO, 713-584-1390/

CO: SYSCO Corporation ST: Texas IN: FOD SU: ERN

WB-LG -- NY040 -- 4502 10/20/93 10:50 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 20, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters