Safeway earnings, sales up in Q4

PLEASANTON, Calif. —Safeway Inc. reported net earnings from continuing operations of $1.06 per diluted share for the fourth quarter which ended Dec. 29, 2012. This includes a $0.12 per diluted share benefit from legal settlements. When you exclude this benefit, earnings per diluted share is 94 cents. This represents a 58% improvement in earnings per diluted share over last year when the settlements are included and a 40% improvement when the settlements are excluded.

"We are pleased with our results for the quarter," said Steve Burd, Safeway's chairman and CEO. "While the calendar shift of New Year's Eve and the shift to generic drugs had a significant drag on reported ID sales, our just for U and fuel loyalty programs are driving market share gains and profits."

Sales and other revenue increased 1.2% to $13.8 billion in the fourth quarter of 2012. This increase was largely due to higher gift and prepaid card sales and a 0.8% increase in identical-store sales, excluding fuel, partly offset by the disposition of the Genuardi's stores.