SYSCO REPORTS SECOND QUARTER AND FIRST HALF FISCAL 1992 RESULTS
HOUSTON, Jan. 22 /PRNewswire/ -- Sysco Corporation (NYSE: SYY) today reported results for the second quarter and first half of fiscal year 1992 which ended Dec. 28, 1991.
Sales gained 8 percent during the quarter, rising to $2.18 billion from the $2.01 billion recorded a year earlier. Net earnings grew to $43.8 million, or $0.47 per share, which was 8 percent more than the $40.5 million, or $0.44 per share achieved during the second quarter of 1991.
During the first half of the fiscal year, sales increased to $4.36 billion, 8 percent greater than the $4.04 billion of the first six months of last year. Net earnings reached $85.8 million, or $0.92 per share, reflecting a 10 percent improvement over the $78.0 million, or $0.85 per share earned during the comparable period of the previous fiscal year.
John F. Woodhouse, chairman and chief executive officer of the corporation, commented, "Sales gains for the quarter were modest but encouraging as the dining-away-from-home industry is presently experiencing little or no growth. Real sales in Sysco's primary business -- traditional foodservice -- grew by nearly 9 percent in the second quarter after adjusting for the effects of acquisitions and about 1.5 percent food cost deflation. For the first six months of our fiscal year, real growth approximated 8.2 percent and food deflation measured 1.4 percent.
"Earnings were less than originally planned, reflecting the continuing impact of both declining food prices and increased competitive pressures arising from the stagnant U.S. economy. Accordingly, operating expenses are being monitored closely throughout Sysco and we anticipate that improvements in cost controls should be realized during the remainder of the year. Nevertheless, we will continue to invest aggressively in hiring and training sales professionals so as to ensure sustained growth in our country's $110 billion foodservice distribution market."
Woodhouse reaffirmed that approximately $135 million will be expended on various capital investment projects during the current fiscal year. Work is progressing on schedule and warehouse expansion projects in Cincinnati, Houston, Memphis and Miami should be completed during the next few months, while construction on a new facility in Vancouver, British Columbia is expected to begin in the near future.
In conclusion, Woodhouse said, "We look forward to the balance of the year with optimism. Specifically, we expect favorable sales and earnings results in the third quarter compared to the prior year, when our business was negatively impacted by war in the Middle East. Although current economic and deflationary trends remain a source of concern, we are confident that Sysco's historical commitment to developing superior sales and marketing personnel, while continually improving productivity, has firmly positioned the company for accelerated growth as general business conditions improve."
The comparative financial data for the second quarter of fiscal years 1992 and 1991 are summarized below.
13 weeks ended; 12/28/91 12/29/90
Sales $2,180,691 $2,013,115
Cost of sales 1,789,619 1,649,105
Operating expenses 310,347 286,727
Interest expense 11,546 12,934
Other income, net (2,255) (1,663)
Total costs and expenses 2,109,257 1,947,103
Earnings before inc. taxes 71,434 66,012
Income taxes 27,645 25,546
Net earnings $ 43,789 $ 40,466
Earnings per share(A) $ 0.47 $ 0.44
(A) Based on 92,970,132 average shares outstanding for the period ended Dec. 28, 1991 and 92,173,584 for the period ended Dec. 29, 1990.
The comparative financial data for the first 26 weeks of fiscal years 1992 and 1991 are summarized below:
26 weeks ended: 12/28/91 12/29/90
Sales $4,358,044 $4,039,145
Cost of sales 3,579,412 3,317,833
Operating expenses 620,678 571,694
Interest expense 22,328 25,208
Other income, net (4,303) (2,888)
Total costs and expenses 4,218,115 3,911,847
Earnings before income taxes 139,929 127,298
Income taxes 54,153 49,264
Net earnings $ 85,776 $ 78,034
Earnings per share(B) $ 0.92 $ 0.85
(B) Based on 92,840,152 average shares outstanding for the period ended Dec. 28, 1991 and 92,018,820 for the period ended Dec. 29, 1990.
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 230,000 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.
/CONTACT: E. James Lowrey, executive vice president-finance and administration of Sysco, 713-584-1390/
(SYY) CO: Sysco Corporation ST: Texas IN: FOD SU: ERN FC-SH -- NY022 -- 2197 01/22/92 10:44 EST