Ruddick Corp. has reported a slight dip in quarterly net income after sales from its Harris Teeter supermarket business helped offset a decline at its yarn business.
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Earnings totalled US$22.9m for the first quarter ended 28 December, down from US$23.3m a year earlier, the company revealed.
Charlotte-based Ruddick is the parent of the Harris Teeter supermarkets and American & Efird Inc, a thread and specialty-yarn maker.
Harris Teeter’s sales increased 3.6% to US$928.9m in the quarter. Operating profit at increased by 0.2% to US$44.3m.
Sales at A&E fell almost 18% to US$66.1m from US$80.1m in the first quarter of fiscal 2008.
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By GlobalDataRuddick said that Harris Teeter’s management was particularly successful in identifying cost savings, which offset the incremental promotional activity designed to drive sales and respond to the changing consumer buying habits.
“We have reduced our fiscal 2009 capital expenditure plan by US$29m to US$212m and have revised our fiscal 2010 capital expenditures to approximately US$150m, 29% less than fiscal 2009,” Thomas Dickson, chairman, president and chief executive of Ruddick, revealed.
“Harris Teeter’s capital expenditure plans entail the continued expansion of its existing markets…. Due to the current economic environment, Harris Teeter has reduced or delayed the number of new store openings originally planned for the current year, as well as fiscal 2010 and beyond,” Dickson continued.
In order to support Harris Teeters expanding store base in Virginia, Maryland and Washington, DC, the company recently identified a site for a new distribution centre outside of Fredericksburg, VA. The new distribution centre is expected to open in 2012.
