New York Times

January 9, 2007

Supervalu 3Q Profit Climbs 51 Pct 

By THE ASSOCIATED PRESS

Filed at 10:00 a.m. ET

MINNEAPOLIS (AP) -- Supervalu Inc., the nation's third-biggest

supermarket chain, said Tuesday its third-quarter earnings jumped almost

51 percent because of its purchase of grocery chain Albertson's.

Supervalu said it earned $113 million, or 54 cents per share, in the

three months ended Dec. 2, up from $75 million, or 53 cents per share,

during the same period last year.

Revenue more than doubled to $10.66 billion from $4.7 billion a year

ago.

Supervalu's results included a nickel a share in transaction costs from

the Albertson's purchase, a penny a share of expenses for stock options,

and 2 cents a share for special hybrid securities issued by Supervalu.

Analysts surveyed by Thomas Financial were expecting earnings of 57

cents per share for the quarter on revenue of $10.53 billion.

Eden Prairie-based Supervalu kept its fourth-quarter guidance unchanged

at 59 cents to 66 cents per share. It said it expects to earn $2.34 to

$2.41 for the full year after transaction costs from Albertson's and

other one-time expenses are subtracted. It expects full-year revenue of

$37 billion.

Supervalu shares fell 80 cents, or 2.2 percent, to $34.97 in morning

trading on the New York Stock Exchange. They have traded in a 52-week

range of $26.14 to $36.64.

The grocer ranks third among the nation's biggest supermarket chains

after Kroger Co. and Safeway Inc.

Sales at Supervalu stores open at least a year, including its

newly-acquired Albertson's stores, grew 0.6 percent. Sales at the

Albertson's stores grew 1.1 percent, and sales at old Supervalu stores

such as Cub and Save-A-Lot fell 1.3 percent. Supervalu's retail

operations earned $327 million, up from $104 million during the same

period last year.

Sales in its food distribution business rose 1.2 percent to $2.2

billion, while operating profits rose to $70 million, from $54 million a

year ago.

For the first nine months of the year, Supervalu earned $332 million,

or $1.75 per share, up from $200 million, or $1.41 per share, during the

same period last year. Revenue rose to $27.1 billion, up from $15.22

billion during the same period last year.