US supermarket operator Kroger has posted a sharp drop in quarterly earnings, as it was hit by labour disputes in southern California and the West Virginia area.
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The company reported net earnings of US$110.2m, or 15 cents a share, for the third quarter to 8 November, compared with $254.6m, or 33 cents a share, in the year-ago period.
Kroger said it estimated that the labour disputes affecting stores in southern California and the West Virginia area had reduced earnings by 12 cents a share.
Total sales for the third quarter rose 3.8% to $12.1bn, including stores affected by the strikes. Identical-store sales, excluding fuel, fell 0.6% on this basis, but edged up 0.4% when excluding strike-hit stores.
“We are pleased with our sales performance in the third quarter, especially in light of the current operating environment,” said David B. Dillon, Kroger chief executive officer.
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By GlobalDataRegarding the labour disputes, which centre on health care costs, Dillon said it was not possible to say when the disputes would be resolved.
