US supermarket group Publix has posted an 8% drop in full-year earnings, with falling profitability accelerating in the fourth quarter as recession in the US deepens.
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Net profit for 2008 fell to US$1.1bn, down from US$1.2bn in 2007. Fourth-quarter profits dropped 20%, down from $311m in the comparable period of last year to $249m.
However, the Lakeland-based company was able to report an increase in full-year sales from $23.2bn in 2007 to $24.1bn in 2008. Same-store sales were up 1.3%, the company added in its results release, filed yesterday (2 March).
From 1 March, Publix’s stock price decreased from $17.90 per share to $16.10 per share. Publix stock is not publicly traded and is made available for sale only to current Publix associates and members of its board of directors.
“Like most companies, our results and stock price were negatively affected by the continued downturn in the economy,” chief executive Ed Crenshaw said. “During these difficult times, we remain focused on providing excellent customer service.”
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By GlobalDataPublix has 1,001 supermarkets in the southern US and plans to open 40 more outlets this year.
