Safeway 3Q income up 13%

PLEASANTON, Calif. Safeway today reported net income of $194.6 million, or 44 cents per diluted share, for the third quarter ended Sept. 8, and increase of 13% over net income of $173.5 million, or 39 cents per diluted share, last year.

The company reported that total sales and other revenue increased 3.9% to $9.8 billion in the third quarter of 2007 compared to $9.4 billion in the third quarter of 2006. Excluding the effect of fuel sales, comparable-store sales increased 3.2% and identical-store sales increased 3%.

"Our Lifestyle store rollout, along with innovation in both perishable and non-perishable offerings, continues to generate sales growth in our stores," said Steve Burd, chairman, president and ceo. "This coupled with cost reduction efforts continue to drive strong performance."

Safeway confirmed 2007 guidance for earnings per diluted share of $1.95 to $2.00, non-fuel identical-store sales growth of 3.6% to 3.8% and free cash flow of $400 million to $600 million.