Supervalu Q3 Profit Declines, But Matches View

(RTTNews) - Grocery retailer Supervalu Inc. (SVU) reported a 57 percent decline in profit for the third quarter from last year, reflecting lower revenues and one-time charges. However, adjusted earnings per share for the quarter matched analysts' expectations.

The company's net income for the third quarter declined to $34 million or $0.13 per share from $79 million or $0.30 per share in the year-ago period.

The latest quarter's results included $11 million in after-tax charges and costs related to asset impairments, the potential separation of Save-A-Lot, and employee severance.

Excluding these items, adjusted net earnings from continuing operations were $46 million or $0.16 per share for the quarter, compared to $49 million or $0.18 per share in the prior-year period.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter declined to $4.11 billion from $4.23 billion in the year-ago period. Analysts expected revenue of $4.16 billion for the quarter.

President and CEO Sam Duncan said, "Although third quarter adjusted EBITDA was in-line with our operating plan, we continue to operate in a challenging environment. Improving sales is a primary focus as we look to complete the fiscal year."