Fourth Quarter Earnings Rise 18.8 Percent
Salisbury, NC — Delhaize America, Inc. (NYSE: DZA, DZB) reported today the Company earned $100.5 million in the fourth quarter of 1999, an increase of 18.8 percent over fourth quarter 1998 earnings of $84.5 million the same period the previous year. The Company posted annual earnings of $300.4 million, on annual sales of $10.9 billion, reflecting a 10.2 percent increase over 1998 earnings of $272.6 million.
In the fourth quarter, basic earnings per common share were $0.65, compared with $0.53 in the fourth quarter of 1998. Basic annual earnings per common share of $1.91 increased 11.7 percent, compared with $1.71 in 1998. Same store sales for the quarter increased 0.8 percent, and the Company finished the year with an annual same store sales increase of 1.8 percent.
Delhaize America is proceeding on schedule with plans announced in August 1999 to acquire Hannaford Bros., Co. for $3.6 billion, including the assumption of debt. At a special meeting earlier today, shareholders of Hannaford approved the merger agreement. Delhaize America expects to complete the deal this spring pending regulatory approval.
Delhaize America increased retail square footage by 11 percent in 1999, finishing the year with a total of 1,276 supermarkets representing 43 million square feet of retail space. As previously reported, the Company added 100 new stores during the year, including 94 Food Lion stores and six supermarkets under the Kash n’ Karry banner. The Company relocated 21 stores and closed five Food Lion and five Kash n’ Karry stores. The Company remodeled 145 supermarkets, including 137 Food Lion and eight Kash n’ Karry stores. In 2000, Delhaize America plans to open a total of 85 new stores and remodel approximately 150 existing supermarkets, increasing square footage by eight percent or 3.3 million square feet.
The Board of Directors approved a 14.5 percent increase in the quarterly cash dividend for shareholders of record as of February 28, 2000. The dividend of $0.1443 per share for outstanding Class A shares and $0.1426 per share for outstanding Class B shares will be payable on March 13, 2000.
With 1999 sales of $10.9 billion, Delhaize America is one of the nation’s largest supermarket companies, operating 1,276 supermarkets in 11 states under the Food Lion, Kash n’ Karry and Save ‘n Pack banners. Following the acquisition of Hannaford Bros., Delhaize America will have over 1,400 stores throughout the eastern United States from Maine to Florida, with total projected annual revenue for 2000 of approximately $15 billion and more than 116,000 full-time and part-time employees.
This document contains forward-looking statements that involve uncertainties. Factors that could cause results to differ materially from those in the forward-looking statements are detailed from time to time in reports filed by the Company with the SEC, including Forms 8K, 10Q and 10K.
Contact: Chris Ahearn (704) 633-8250, Ext. 2892