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Supervalu Sees Gain From Acquisition

May 23, 2006|From Reuters

Supervalu Inc., which is set to become the second-largest traditional U.S. grocery chain once it buys most of Albertsons Inc.'s stores, Monday outlined its forecast for the combined business.

The acquisition would come at a key time as grocers such as Supervalu and Albertsons have struggled to keep consumers interested in their stores.

Supervalu forecast fiscal 2007 earnings of $2.17 to $2.44 a share and total sales of about $37.4 billion to $38 billion if the deal closes, as expected, in early June. The company's fiscal 2007 began Feb. 26.

Minneapolis-based Supervalu earned $1.46 a share on net sales of $19.9 billion in fiscal 2006.

Chairman and Chief Executive Jeff Noddle, who would remain in his post after the deal closed, said during a call that Supervalu still expected the deal to immediately add to earnings on a double-digit percentage basis, excluding one-time costs.

Supervalu shares fell 20 cents to $29.71.

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