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Safeway Inc. Reports 14% Rise in 4Q Adjusted Earnings

PLEASANTON, Calif. - Safeway Inc. today reported adjusted net income of $409.6 million ($0.81 per share) for the fourth quarter ended Dec. 29, 2001, which excludes the effect of a $25.5 million after-tax charge related to the Furr's and Homeland bankruptcies. The adjusted earnings per share increased 14 percent vs. the fourth quarter of 2000.

"In spite of the soft economy, we were able to accelerate cost reduction efforts to fuel double-digit earnings growth," said Steve Burd, chairman, president and CEO of Safeway.

Fourth quarter sales increased 7 percent to $10.7 billion from $10.0 billion in 2000, primarily because of the Genuardi's acquisition, new store openings, and the impact of a Teamster strike against Summit Logistics, a company that operates Safeway's northern California distribution center, that took place in 2000.

Fourth quarter 2001 comparable-store sales increased 2.1%, and identical-store sales (which exclude replacement stores) increased 1.3 percent. Excluding the effects of the Summit strike, comparable-store sales increased 0.8 percent for the quarter, while identical-store sales were flat.

In 2002, the company expects to spend more than $2.1 billion and open 80 to 85 new stores and complete approximately 250 remodels.

Safeway Inc. currently operates 1,773 stores in the United States and Canada.
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