US retailer Supervalu today (7 January) posted a third-quarter net loss of US$2.94bn, or $13.95 per share, after profits were hit by a pre-tax impairment charge of $3.3bn related to the company’s slumping stock price.
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Over the past seven months, shares in Supervalu have lost 60% of their value.
Excluding impairment charges, the Minneapolis-based grocer’s quarterly earnings totalled $132m, or $0.62 per diluted share. A year ago, Supervalu posted third-quarter net earnings of $141m.
Third-quarter sales in the current fiscal year, meanwhile, slipped 0.4% to $10.17bn from $10.21bn posted during the comparable period of last year.
The company’s food-and-drug retail business posted a 9.6% decline in earnings during the quarter, excluding the write-downs, on flat sales. Earnings in the supply-chain services segment were flat despite a 4.1% drop in revenue, the company revealed.
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By GlobalDataFor the year-to-date period, Supervalu posted a net loss of $2.65bn, against net income of $437m a year earlier.
Despite the significant loss, Supervalu chairman and CEO Jeff Noddle said that he was “pleased” with the company’s performance.
“Our fiscal 2009 projected cash flows are strong, funding $1.2bn in capital spending, $0.4bn in debt reductions and $0.1bn in dividends,” he emphasised.
“We continue to position the company for long-term success, taking into consideration the current economic environment.”
However, Supervalu lowered its full-year earnings target to $2.80-$2.90 per share and predicted a 1% drop in same-store sales.
