Safeway reports 1st-quarter loss

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Associated Press

Posted on April 23, 2014 at 2:00 PM

Updated Wednesday, Apr 23 at 2:03 PM

PLEASANTON, Calif. (AP) — Safeway is posting a net loss for the first quarter due to higher costs and acquisition expenses.

The grocery-store chain is being acquired by an investment group in a deal worth about $7.64 billion. The deal, which combines Safeway and Albertsons, is expected to close in the fourth quarter.

The company says it lost $76.5 million, or 34 cents per share in the three months ended March 22. That compares with net income of $118.9 million, or 49 cents per share a year ago. Excluding one-time items, net profit totaled 6 cents per share. Analysts expected adjusted net income of 18 cents per share.

Revenue rose 1 percent to $8.26 billion from $8.18 billion last year. Analysts expected $8.26 billion.

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