Sysco 1Q Net Jumps 18% On Gains; Sales Down 8.1%
DOW JONES NEWSWIRES
Sysco Corp.'s (SYY) fiscal first-quarter profit rose 18% on tax-related and
other gains as sales declined 8.1% amid reduced consumer spending.
But Chief Executive Bill DeLaney said North America's largest marketer and
distributor of food-service products is "encouraged by the stabilization of our
volume trends in recent weeks."
In September, DeLaney said the company saw some signs of optimism in the
economy, although deflation in milk prices still remained a short-term concern.
Sysco has cut costs and raised prices as restaurant chains have shuttered
locations because consumers are eating in to save money.
In August, Sysco reached a $952 million settlement with the Internal Revenue
Service, clearing up a large tax overhang and giving the company the flexibility
to pursue acquisitions.
For the quarter ended Sept. 26, Sysco reported earnings of $326 million, or 55
cents a share, up from $276.8 million, or 46 cents, a year earlier. The latest
results included gains of 11 cents related to items such as the company's IRS
settlement and impact from the change in the value of corporate-owned life
insurance. Revenue fell to $9.1 billion.
Analysts polled by Thomson Reuters had most recently forecast earnings of 45
cents on $9.16 billion in sales.
Gross margin rose to 19.2% from 19.1%.
Shares closed at $26.45 Friday and were inactive premarket Monday.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@
dowjones.com;
(END) Dow Jones Newswires
11-02-090843ET
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