Salisbury, NC Delhaize America Inc. (NYSE:DZA, DZB) earned $65.5 million or 42 cents per share in its first quarter, which ended March 25, 2000. Earnings were up 11.7 percent from the same period a year ago. First quarter sales rose 3.0 percent to $2.5 billion.
The Company’s FIFO earnings before depreciation, interest expense and taxes of $198.6 million, or 8.0 percent of sales, compared favorably to 7.4 percent of sales earned in the prior year. Comparable store sales for the first quarter of 2000 were down 1.8 percent.
“We are pleased with our earnings performance in the first quarter and our continued market share leadership in all of our core markets,” indicated Bill McCanless, Delhaize America’s chief executive officer. “In spite of a challenging sales environment during the first quarter, the Company’s strong cost control programs coupled with an improved product mix produced increased profits over the same quarter last year. While continuing to offer our customers the quality shopping experience they have come to expect from Food Lion, we will be enhancing the communication of our price leadership in all of our markets.”
The Company continued its strong organic growth program during the quarter by opening nine Food Lion stores and one Kash n’ Karry store, and renovating 15 Food Lion stores and two Kash n’ Karry stores. Delhaize America is on track to open 75 Food Lion stores and 10 Kash n’ Karry stores this year, with 150 store renovations planned.
Delhaize America is proceeding with regulatory filings in conjunction with its agreement announced on August 18, 1999 to acquire Hannaford Bros. Co., which operates 154 supermarkets primarily in the Northeast, with 1999 sales of $3.5 billion. The Company expects to finalize the acquisition in the second quarter.
With 1999 sales of $10.9 billion, Delhaize America is one of the nation's largest supermarket companies. The Company and its more than 95,000 employees serve more than 10 million customers a week at 1,144 Food Lion, 123 Kash n' Karry and 18 Save 'n Pack supermarkets. With the addition 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 of approximately $15 billion in the first year of the acquisition 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 8-K, 10-Q and 10-K.
Contact: Tawn Earnest (704) 633-8250, Ext. 2185