Minneapolis -- SuperValu reported net income of $60 million for its fiscal second quarter, compared with a year-ago loss of $1.47 billion that was the result of one-time charges. Although the company’s results beat analysts' estimates, it cut the high end of its fiscal 2012 earnings.
Revenue dropped 3% to $8.43 billion from $8.66 billion, but still beat Wall Street's estimate of $8.36 billion.
Retail food sales slipped to $6.6 billion from $6.7 billion as SuperValu exited certain markets and same-store sales fell 1.8%. Independent business sales declined to $1.8 billion from $2 billion primarily due to Target Corp.'s shift to self-distribution and the sale of Total Logistic Control.
In fiscal 2012, capital spending is projected to be approximately $700 to $725 million, which will include 80 to 90 store remodels. Save-A-Lot will increase its store count by approximately 80 to 90 stores.