USA: Grand Union Posts $17.7 Million Of EBITDA For Fiscal 2001'S Q1
For the 16-week first fiscal quarter ended July 22, 2000, The Grand Union Company (OTC.BB:GUCO) posted sales of $658.0 million, compared with $687.3 million reported for the same period a year ago. Total sales were down 4.26%, with 200 stores in operation this year and 219 last year. Same-store sales declined by 2.67%. EBITDA (earnings before interest, taxes, depreciation, amortization, unusual and extraordinary items, and non-cash pension and LIFO charges) for the period was $17.7 million this year, including a gain of approximately $6 million from the sale of the Company's Deer Park, NY, location. One year ago, EBITDA totaled $32.5 million for the first quarter. Grand Union, one of the largest food retailers in the northeastern United States, said its performance showed "some improvement" during June and July. However the results continue to reflect intensely competitive markets and the ongoing efforts to drive costs out of the Company's operations. Earlier this week, Grand Union announced the elimination of approximately 170 positions, primarily at its Wayne, NJ, corporate headquarters and its office in Clifton Park in upstate New York. The reduction in force, which is expected to yield annual savings of between $8 million and $12 million, will result in a charge against this year's fiscal second quarter results of approximately $2 million. In addition, the company announced today that it will sell two stores - in Glenbrook, CT and The Bronx, NY and has sold the Little Neck store in Queens. The total proceeds from these transactions will be approximately $9.3 million.
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