Cincinnati, OH-
The Kroger Company has recently reported net earnings of $0.60 per diluted share for the third quarter, ending on November 3, 2012. This includes a $0.14 per diluted share benefit from a settlement with Visa and MasterCard and from a reduction in the company's obligation to fund the UFCW consolidated pension fund created in January.
Excluding the benefit of these two items, Kroger's adjusted earnings per diluted share was $0.46 for the quarter. The company believes the adjusted earnings figure present a more accurate year-over-year comparison of its financial results because the two items were not the result of our normal operations.
Identical supermarket sales growth, without fuel, was 3.2% in the third quarter. Other highlights of the quarter include:
- Achieved 36th consecutive quarter of positive identical supermarket sales
- Increased adjusted FIFO operating profit $29 million for the third quarter, including fuel, compared to last year and GAAP FIFO operating profit increased $144 million
- Improved tonnage – highest increase in unit movement since the second quarter of 2010
- Raised adjusted earnings per diluted share guidance for the fiscal year
“Kroger achieved our growth objectives for the quarter, including positive identical supermarket sales, operating profit growth and outstanding tonnage growth," stated David B. Dillon, Kroger's chairman and chief executive officer. "This quarter illustrates that the strength of our core business positions Kroger to accelerate our earnings per share growth."
Total sales, including fuel, increased 5.9% to $21.8 billion in the third quarter compared with $20.6 billion for the same period last year. Total sales, excluding fuel, increased 3.7% in the third quarter over the same period last year.
Net earnings for the third quarter totaled $316.5 million, or $0.60 per diluted share. Excluding the $0.14 per share benefit of the two items described above, Kroger's adjusted net earnings for the third quarter totaled $242.4 million, or $0.46 per diluted share. The lower LIFO charge described below benefited this year's third quarter by $0.02 per diluted share. Net earnings in the same period last year were $195.9 million, or $0.33 per diluted share.
Kroger
