Safeway 3Q Net Income Falls On Severance Charges

PLEASANTON (AP) – Safeway Inc. says its third-quarter net income fell 4.7 percent, as the national grocery chain paid out severance and sales weakened slightly.

Safeway now expects earnings per share and sales excluding fuel to be at the lower end of its guidance. Shares slumped in premarket trading.

The company said Thursday it earned $122.8 million or 33 cents per share, in the three months ending Sept. 11, down from $128.8 million or 31 cents per share last year. The company paid out $12 million or 2 cents per share in severance charges.

Revenue fell less than 1 percent to $9.4 billion.

Analysts expected earnings of 31 cents per share on revenue of
$9.45 billion.

(© 2010 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

Comments

Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS San Francisco

Get The New CBS SF Bay Area Local App
Got Our Weather App?

Listen Live